alks with policy makers who direct the economy in America and Germany gave indications about where America and Europe stands.

Talks with policy makers who direct the economy in America and Germany gave indications about where America and Europe stands. It seems things are improving except in places where they are not. The bailouts are successful except where these are failing. Things will improve slowly if they do not steadily get worse. We should soon come to know all this unless we fail to be acquainted with. It is litter wonder that business houses do not want to engage this type of “unusual uncertainty” as Ben Bernanke had worded it.

One reason for this feeling of being unusual is that the country is not putting in the effort to get out of the morass of the financial crisis that had been started off by the insane type of mortgage lending. The country is facing three big structural problems that did not happen overnight but was built up through many decades; now it has reached a critical peak. All this is happening simultaneously.

Mohammed El-Erian of PIMCO has been reiterating repeatedly, “Structural problems need structural solutions”. There is no quick and fast cure. To get back to the tracks of sustained growth structural changes will have to be effected in Europe and America. It will need plenty of political goodwill and this is one thing that has been badly lacking on both sides of the Atlantic. For over a decade America has seen a growth that has been fueled by debts. Money was borrowed from China to allow America the luxury of tax cuts but nothing was done to check this spending or investment for long term growth. Today the government is in debt as never before. Ahead are more obligations to be fulfilled like health care, war in Afghanistan and payments to meet social security promises.

To pay for all this real growth is hardly visible. To give a push to employment some stimulus will be required in America but it must be carefully chalked out so that it brings back returns and not just adds to the debts.; this means focusing on setting up of businesses and promoting exports. Another point to note is that advanced technology like hand held ipads plus iphones are destroying older jobs that were less skilled along these new innovative lines. Previously wages were decent at a quicker pace but today the new skilled posts the wages are good but it requires more training cum education than previously.

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