Rogue Economics

We all know "Rogue Economics" exist. The illegitimate sort of businesses that provide towards the economy. But I did not realise - it simply did not occur to me - that Globalization was much to blame; atleast that's the argument put forward by Loretta Napoleoni, that Globalization helped "black markets and criminal markets but also gray areas that aren't regulated" flourish!

Now, I'm a big advocate of Globalization - I call it "a vision" without boundaries - and I must admit that it's a little hard to digest that perhaps what the author of "Rogue Economics: Capitalism's New Reality" is saying might just be right.

In the search for a "smaller world" we have created a world with limitless exploitative opportunities that bring about new challenges but along the way provide few solutions. We're getting closer through technology but still remain far apart when it comes to regulation.

"Seventy percent of the fish we eat is black market, fished in violation of international laws. Our ignorance makes us unwilling partners in crime. Rogue economics is turning the global market into our worst nightmare... ...One example is the sex trade. After the collapse of communism, women from the former Soviet bloc were desperate. Unemployment went from virtually zero to 80 percent after the wall fell. So the women became prostitutes or sex slaves in the West. Also, the supply of labor in the West doubled as people came from the East. That led to a deflationary situation around the world in which interest rates fell and banks became more aggressive, looking for more and higher returns. Investment banks were hardly regulated; nearly everything was allowed." - Lorretta Napoleoni Newsweek

But how I see it, Globalization has made the world just alittle easier to access. With it has come big challenges, however, regulation will always lag, not just because the world is changing at breakneck speed, but also because with everybody getting big on "Power" it will be hard to negotiate solutions that are not perceived as being on equal footing.

Thus in this new world order, unfortunately, idealism has no place and Rogue Economics will continue to thrive whether we like it or not - just like the big Environment issue - it's there, it's in your face, So? ... Fact of the matter is, these things take years and years or even decades to reach any agreement. Also, I believe it'll be rather difficult to rally for regulation in certain practices without encountering some sort of backlash.

I wish we didnt have the rogue economics, but it's part and parcel of Globalization (capitalism at it's Peak)... there is no escape!

Sky High

Lately my friends and I have been toyin with the idea of buyin land and goin into Agriculture! I mean... you can never go wrong with food can you?

"Wheat?" "Corn?" "Soyabeans?"

Can you blame us? We're havin a Food crisis, for god's sake! Prices of basic staples is goin through the roof... and unfortunately how I see it... HIGH prices are here to stay.

Why? Wasnt technology supposed to help us grow food more efficiently and globalization help it get distributed more effectively? What happened?

China, India, Middle East, and the US happened...

We have millions of people in Asia, demanding better quality of life, they are producing and consuming big time and do not seem to slow down... so for that you need ENERGY... not just the energy you put into your mouths... but also the energy you put into your machines...

And I would blame the energy that we put into machines for the current crisis we are seein in the energy that we consume in the form of food...

Crude oil at 115? Werent we predicting a global meltdown when Goldman Sachs came up with a report predicting oil to be at 80 two years ago? Developed nations just underestimated the power engines of the East... just coz the West is used to the good ol days when oil was at 25 per barrel, does not mean that Asia would slow down when it is above 100... China and India do not know better :) they are not used to the luxuries the West has taken for granted all these decades...

AND Middle Eastern people are quite happy with that notion! Iran's importing Chinese TVs, Refrigerators, Washing Machines... Dubai is building and building and building... Saudis are becoming even bigger financial players... so who wants this party to end? Certainly not the Arabs... or for that matter, some of the South Americans... with Chavaz screwing the Americans and unilaterally announcing that oil should be at 200!! WOAH! They are not just partyin, they are Raving big time!!!

So where does that put the Americans? Towards the farms in Brazil! So that they dont play hostage to the Arabs or their more hostile southern neighbours.

"Using more alternative fuels not only will be good for the environment, Bush said, but also will reduce the nation's dependence on oil from unfriendly nations and insulate the U.S. economy from the shocks caused by sudden increases in oil prices. Bush wants the country to be using 35 billion gallons of renewable fuels annually by 2017, and he would like to raise mileage standards for automobiles -- efforts that he said would allow the nation to meet his goal for gasoline consumption." - Washington Post

So you think anybody would care about the riots in Haiti? Or the hoarding in Thailand and Vietnam (also contributing to the price pressures)? Or people crying foul in Mexico?

I think in this capitalized and very globalized world, where billionaires are made literally overnight... you think anybody cares for the poor who are most affected by this surge in food prices? It's the Fords, the Toyotas, the man-made Islands, the terrorrism, the Made-in-China label, the financial traders, consumerism... that we need to keep in business (fortunately or UNfortunately).

So welcome to the world of strife... hungry?