Cause of Crisis & Proutistic Solution

Date: 08 Jun 2012 21:02:37 -0000
From: "Indrajit Deva"
To: am-global@earthlink.net
Subject: Cause of Crisis & Proutistic Solution

Baba

== CAUSE OF CRISIS & PROUTISTIC SOLUTION ==

Namaskar,
The financial crisis in Europe is becoming more severe; the EU is on the cusp of a total collapse. We should understand the problem and present the solution.

THE KEY PROBLEM IN EUROPE

The crux of the matter is that when countries, or regions, that are not equally economically developed, engage in free-trade then more industrially developed countries get the most benefit. They use their might and clout to exploit the situation. And that is exactly what has happened in Europe.

Initially, it may look like all will be winners, indeed that is why such trade agreements are made in the first place; but, it does not work out that way. As noted, a clear case in point is the European Union. They opened the borders for trade and the more economically developed nations (Germany, France etc) prospered while the less financially strong nations (Greece, Portugal etc) crumbled.

Here is more about how this works.

HOW INDUSTRIALLY DEVELOPED COUNTRIES EXPLOIT

For example, Germany is a highly industrially developed country that produces high-quality products. They buy the raw materials from poor countries for a meagre price and use those resources to manufacture high-end, top-notch merchandise. Then they turn around and sell those products back to those poor countries for a comparatively high price, 100 or 1,000 times what they paid for those raw materials from those same countries. So they make a huge profit. In result, industries of those poor countries fail. They cannot compete with the economic prowess and efficiency of those companies from the industrially developed countries; so they file for bankruptcy. Workers in those countries then become jobless - unemployed.

WHAT HAPPENS TO LESS INDUSTRIALLY DEVELOPED COUNTRIES

In this situation, those poor countries fail to produce anything. Their income is wholly dependent upon the service industry: Restaurants, hotels, tourism etc. Either they are appealing to their own native people or outside visitors to drive their service economy. But this is not the way to build a stable economy. They must produce and manufacture goods. But this they do not do because they cannot compete with industries from the wealthier countries. This causes their trade deficit to mushroom; they import far more than they export.

Why is it those poor countries cannot compete. Well it is just like if you are running your own business with just a few resources and with limited means. In comparison, if another company is fully established and has huge resources at their disposal, then how can your small company compete. You cannot. That company will either go under or be purchased by that economically powerful competitor. That is why big companies keep getting bigger and bigger.

Or think of it this way: If smaller, weaker athletes compete in the same events as stronger athletes, then surely the weak will fall. That is why competition is broken down according to gender, weight, and often times age as well. Because in order to have fair competition, both parties must have similar means otherwise the weaker parties will be beaten up mercilessly. That is the universal law.

And this same theorem applies to the current European economic crisis where companies in less economically developed countries get smashed into the ground by bigger, stronger enterprises from industrially developed countries. So those smaller companies go out of business, leading to higher unemployment in those countries.

The next step of the problem - after all the layoffs - is that the people in poorer countries of the European Union do not have the requisite purchasing power to buy the products they need for their day to day life. Because those goods are manufactured in wealthier European countries and are expensive. So they cannot afford those products; nor can they produce anything. So in order to fulfill their daily needs they borrow money to purchase goods manufactured in other countries like Germany, France, the US and China; and, there is no way to pay back those loans.

THINK OF IT THIS WAY

For a month or two, a person or country can borrow at a high interest rate, but how long can this continue - it is unsustainable. One's debt will grow - and it will be impossible to pay back that loan. After all, their daily needs will not dissipate and since they are not producing anything they will have to continue to borrow at that high interest rate in which case their debt will balloon. It is a recipe for disaster.

That is the painful situation and they will never be able to compete economically because of being industrially underdeveloped.

SOLUTIONS

According to our Proutistic model, there is a way out of this mess.

When underdeveloped countries like Greece are unable to compete with industrially developed countries like Germany then what is their fate? How can such countries manage and grow? On this very issue, Prout gives the solution.

Firstly, Greece and Portugal among others must stop competing with more highly developed countries. Greece, Portugal and others, must first strengthen their own economies independently and then trade only with countries of a similar economic standard; failing that, they are bound to continue their negative spiral downward.

The first work then for those countries is to get out of the European Union and block all imports - both from within and outside the European Union. They should manufacture and produce their own products and consume those items. They should create their own local economy.

Although this suggestion may sound archaic in this era of globalization, but creating a local economy is the only solution. Sooner or later all will have to realize this fact. Only by this way can the problem be solved.

The idea is that things should be produced and consumed locally. That is the solution.

This is an entirely new philosophy. If you are interested in knowing more read these articles:

Socio-Economic Groupifications
Developmental Planning
Some Aspects of Socio-Economic Planning
Some Specialities of Prout's Economic System
Socio-Economic Movements
Decentralized Economy
Block Level Planning
Economic Dynamics

Sooner or later this path of a local economy must be adopted. There is no other recourse.

Namaskar,
Indrajit

PRABHAT SAMGIITA

"A'j toma'y pelum notun sa'je mor manoma'jhe..." (P.S. 886)

Purport:

Baba, by Your causeless grace, today I have gotten You in a more loving way in my mind. Baba, You have come in a new form in my dhya'na. It is Your grace. Earlier my mind was busy and involved in a variety of works - both positive and negative. But now there are no such distractions. My mind is one-pointed and only ensconced in Your love.

Baba, the path that I was moving on was a zig-zag path. There was no hope or relief. My life was covered in darkness, day and night. Baba, by the attraction of Your divine love I looked towards You. O' my dearmost, my most loving One, by Your grace the wheel of my chariot has just turned. In my dead river, a flood of sparkling fresh water has come. Baba, now my life has become effulgent.

Baba, in the past there was black darkness and after that it was even more black. The whole atmosphere was totally bleak; my whole life was shrouded in darkness. Baba, You are so gracious, You have come with Your
divine effulgence. You have come with more and more divine effulgence. O' my Baba, now in whichever direction I look it feels very blissful and loving. I feel Your divine presence in my heart and all around me. Baba, You have stolen my mind and made my heart full. Baba, my heart has become full with Your love.

Baba, today You have blessed me by coming to me in a more intimate and loving way. Baba, You are so gracious. Baba, I love You...