AboutDr.VSR.Subramaniam Expertise Basically a B.Sc (Physics) from the University of Madras, India. Started the career in production engineering under German and Italian experts. MBA in Management from IIM, Ahmedabad (India). Ph.D (Management) from the University of Bomaby (the first ever awarded in this subject). Headed the computer centres of Multi nationals; "Data Processing expert" of the Commonwealth, London (To implement World Bank and UNDP Computer softwares); "Consultant Adviser" to the Caribbean Development Bank (CDB), Barbados. Associated with Nobel Laureate in Economic Science-1979, Arthur Lewis (Past President of CDB) & 4 more on his introduction. Visiting professor to many universities. A Trained ISO 9001:2000 Quality Auditor. Over 40 years of combined experience in Accounts, Computer Software, Economics, Engineering, Management, Science, Technology, Research & Development and Qulaity systems. Author of over 60 Application Research papers. Currently a free-lance consultant in ISO Quality Systems, Socio-Economic development acceleration, Innovative software designs. Can answer any question in Theoritical/Applied-economics with an in-depth and innovative dimension. I DO NOT ANSWER : 1. STATISTICAL data & analysis. 2. PRIVATE questions, as they do not appear for PUBLIC view & search 3. Examination & Project report oriented questions. Website http://www.drvsrs.com
Experience Experience in the area Over 40 years in Industrial, Service and Economic development sectors. Socio-economic development oriented expertise (1982-86). With Commonwealth Fund for Technical Cooperation, London as a "Data Processing Expert". With Caribbean Development Bank, Barbados (UNDP,World bank set up) as a "Cnsultant Adviser". See "http://www.drvsrs.com/drvsrs.htm" and "http://www.drvsrs.com/publication.htm". National & International awards. R & D Author at http://ideas.repec.org/e/psu50.html and http://www.ssrn.com/author=360079
Question What is the peculiarity of the US economy and why the dollar is posing a bad look in the national and inter national market, to the extent that US hotels and restaurants prefer to get their bills paid in Euro than dollar ? How to reverse this situation.
Answer A) BACKGROUND.
In fact your question is appropriate and a guider to USA, the “economic controller” of many developing/under developed nations in the world.
An imperative need has arisen to provide a Constructive push to the Honourable President George Bush. This to consider that Tangible wealth and Intangible feelings together go to format the fraternity of Freedom. American population, Corporate units, Expatriates and all nations with their currency related to US $, are not happy in the current Dollar dipping situation. Is the development trend of USA is going down ? No, as guided by the trend of Gross Domestic Product (GDP), and Yes as guided by the Net of Exports and imports. The net is an import situation, because of low value for US exports and high value for US imports, due to the gain of Euro over Dollar. On the other hand, the currencies of poor nations (developing / under-developed), are galloping upward in Dollar parity, just only because they are linked to Euro, without any domestic productive contribution or economic growth activities). The answer to this situation is reflected in the US Socio-economic scenario. This is in the USA’s approach and uncontrollable administrative attachment and an appetite to control other nations in the world, through an unilateral Army power.
B) WAR MONGERS.
US is the prime motivator of the UN (A Peace keeper through Force and Army power) to offer sanctions and threats to developing and undeveloped nations. US is Prompting the poor nations to tie up their domestic products towards USA, and Pumping their wealth into poor nations, leading the current and future generations in US to an unrecoverable outside debt situation. These are a few acts which has led US into trouble, resulting in the current Dollar dip. Simulating a “Notional” Balance sheet of USA, with imaginary figures, compels a need to post a Loss to the Assets in the Debit side, to balance the Liabilities in the Credit side. This off-setting entry has to come from a miscellaneous loss expense entry, from the Profit making US Income Statement. The source for this loss is from the Army to fight, and infrastructure to maintain the captive outside nation, under US care. As per the announcements of President George Bush “USA as a Prime Developed Nation alone can perform the role of annihilating tyranny, terror and threat to the world, as well as steadily lead the poor nations towards a free and democratic society”. Bush is correct. But only the methodology and approach of the President and the Federal government, are against the achievement of the value behind this statement.
I was an invitee to watch a day’s proceedings of the 99th congress of the US, on 15th October 1986 (Wednesday) held in the Capitol hill, Washington DC. It was just after the historic meeting in 1985, between the then US President Ronald Regan (Republican) and the then President of the USSR, Mikhil Gorbachev (Communist), the then two super powers in the world. The background was the progress of the 2nd Cold war (1979 - 1989), the test ground provider to deploy many new inventions in the history of the artillery science The elected representatives on the floor were logically and vehemently arguing that the “wars” supported by US at different world location, should not be stopped, but escalated, to maintain the employment of 1000s of American soldiers, as well as their kith and kins. If the president and the elected representatives of US consider war as a “feeding-tool” for the domestic population, then it is natural and logical that the nation has chosen the path for “perils”.
C) ECONOMIC MODELS.
1) An Algebraic Model building and solution by me infers that the measure for Productivity and Progress should be with reference to the internal Socio-Economic development target units, as major. Keep the quantum benefits (including the benefits / gains to US by controlling the external nations), as a peripheral and minor guideline. Do not pump the US money into the defense of the assisted nations and promote a war situation, at the cost of US peace and prosperity. Strengthen the Intangible moral and values of the domestic population, hand in hand with the Wealth formation.
2) A Geometric Bi-circular Model building and solution by me leads to the direction that an Endogenous methodology is to introduce the latest productive technology (Moderated to suit the local conditions) for domestic Techno-Commercial upgrade. The technology upgrade in US is directed towards war gadgets than domestic gadgets of utility for lowering costs (That is why Japanese cars, TV, Mobile, Washing machines, Blenders etc.. dominate the US / World market, than made in USA products).
The domestic technology should be manned by the domestic population. But US considers the expatriates are the source for cheaper man power in the productive areas. Then the domestic population has no other alternative than to fight wars on other’s soil for survival and progress.
An Exogenous tool is to encourage Domestic savings and pump the same towards Domestic investment. This will motivate the nation towards Self-confidence and self-reliance. Frugal expatriates save and forward their savings to their respective home locations. The war fighting as well as the productively employed luxurious domestic population are not left with much surplus to save. The economic development activity of the US government is concentrating to capture the wealth of the external world, and keep them under their control. This is “Jackpot approach”. External dependence for domestic prosperity is geometrically not a methodology for prosperity.
D) CONCLUSION.
US is the key nation to direct the world towards prosperity and techno-commercial advancements (Unlike UK, France etc.. who keep other world nations as their colonies for self prosperity). Changing the US attitude towards the other nations should be a positive partnership for progress, than a war and administrative control approach. Then the sky is the limit for US economy, their Dollar and their political image in the world.
