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EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

January 15, 2016

EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

 

Erle Frayne D. Argonza

 

Magandang gabi! Good evening!

 

It’s dusk time as I write, and this dusk at a time of intensifying monsoon rains seems to bode images of a grim future for the West at large. The European Union or EU members and the USA, the gigantic pillars of the global economy, are particularly in dire straits as they have entered the zone of flat growth and perpetual recession.

 

As already tackled by me in diverse articles, the East is surging forward bringing life to the global economy as a whole. In contrast, the West is spiraling downwards, and the strategies their stakeholders are putting into place to arrest the downslide are at best palliative. As the East continues to surge upward, the West continues to stagnate and decay.

 

After World War II, both Europe and America embarked on massive infrastructures and heated industrialization that saw both economies dominating the global economy’s wealth production. The result of that was an OECD producing 60% of Gross World Product or GWP for some decades (today that’s down to 40% of GWP and will still go down).

 

That was the situation back then. By the 1990s, the situation had been badly reversed as a result of liberal economic policies instituted in the previous decade (80s). The rise of a ‘virtual economy’ dominated by predatory finance was instrumental in the West’s massive de-industrialization, decay of relatively unattended infrastructures, decline in science & technology research, and neglect of the transport sector (only Japan & Germany were actively pursuing maglev railways).

 

By the early 1990s yet, certain experts among economists and sociologists in America began echoing alarming notes about the possible downslide of the USA into a 3rd world country should the economic decay, such as that of relatively unattended infrastructures, be allowed to continue till past 2010s.

 

In the late 1990s, my own circle of political economists in Manila (Sunday Kapihan/Independent Review) saw such a possibility ourselves as we consolidated the data made available to us thanks to the internet. By 1998 all fellows of our circle were convinced of the catastrophic direction that the USA and Europe were plunging themselves into, which could begin with a depression past 2005 and a thirdworldization by 2010s (both have been hit by recession this decade as a matter of fact).

 

When Katrina struck the USA and when those floods struck Europe just a few years back, and the same free market policies stubbornly remained in place, I knew the downslide would turn out to be irreversible. The fate of New Orleans, with its residents lining up for food akin to a depressed city, revealed an appallingly decayed 3rd world city inside the USA which, to my mind, is but a fractional tip of a gigantic iceberg that are America’s decaying cities on the way to 3rd world infamy.

 

If, for instance, just about 55% of the top 700 cities of the USA will be so badly decayed by 2015 and be declared as 3rd world or ‘developing cities’, then we know more or less that America had catastrophically seen its worst state. With 97% of U.S. population living in cities (urban), likewise will the whole of the USA be declared as a ‘developing economy’ as early as 2015.

 

That is, again, if the destructive ‘virtual economy’ policies will not be taken down and reversed sweepingly. As I’ve declared in previous articles before (when Obama was still campaigning for the presidency), America must quickly return to a New Deal-type policy regime: interventionist, with great stress on revivifying infrastructures, revitalizing transport R&D (railways, shipping, etc), upscaling science & technology investments (including rockets), returning heavy industries (revive steel and many dead manufactures), and ensuring agricultural productivity.

 

Europe is not far behind such near-catastrophic downslide of the USA, just to remind our friends in Europe and the globe. Decisively institute interventionist policies in the continent, regulate the financial-banking sectors (criminalize predatory finance), and revivify social policy that were hallmarks of a once strong and mighty European economy.

 

And there’s no better time to act then now. Failure to act soon, by stubbornly instituting the palliatives (e.g. bailing out failing big banks, semi-regulating stock exchange), will be the best sure-fire formula to see a rapid thirdworldization of the West.

 

Before long, some messianic mad leaders in both continents would be drum-beating their being “stubbed behind the back” and generate new Hitlers and Bonapartes in their backyards. Act now, Western peoples, to avoid this eventuality from ever taking place at all.

 

[Philippines, 21 July 2010]

 

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EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

January 15, 2016

EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

 

Erle Frayne D. Argonza

 

Magandang gabi! Good evening!

 

It’s dusk time as I write, and this dusk at a time of intensifying monsoon rains seems to bode images of a grim future for the West at large. The European Union or EU members and the USA, the gigantic pillars of the global economy, are particularly in dire straits as they have entered the zone of flat growth and perpetual recession.

 

As already tackled by me in diverse articles, the East is surging forward bringing life to the global economy as a whole. In contrast, the West is spiraling downwards, and the strategies their stakeholders are putting into place to arrest the downslide are at best palliative. As the East continues to surge upward, the West continues to stagnate and decay.

 

After World War II, both Europe and America embarked on massive infrastructures and heated industrialization that saw both economies dominating the global economy’s wealth production. The result of that was an OECD producing 60% of Gross World Product or GWP for some decades (today that’s down to 40% of GWP and will still go down).

 

That was the situation back then. By the 1990s, the situation had been badly reversed as a result of liberal economic policies instituted in the previous decade (80s). The rise of a ‘virtual economy’ dominated by predatory finance was instrumental in the West’s massive de-industrialization, decay of relatively unattended infrastructures, decline in science & technology research, and neglect of the transport sector (only Japan & Germany were actively pursuing maglev railways).

 

By the early 1990s yet, certain experts among economists and sociologists in America began echoing alarming notes about the possible downslide of the USA into a 3rd world country should the economic decay, such as that of relatively unattended infrastructures, be allowed to continue till past 2010s.

 

In the late 1990s, my own circle of political economists in Manila (Sunday Kapihan/Independent Review) saw such a possibility ourselves as we consolidated the data made available to us thanks to the internet. By 1998 all fellows of our circle were convinced of the catastrophic direction that the USA and Europe were plunging themselves into, which could begin with a depression past 2005 and a thirdworldization by 2010s (both have been hit by recession this decade as a matter of fact).

 

When Katrina struck the USA and when those floods struck Europe just a few years back, and the same free market policies stubbornly remained in place, I knew the downslide would turn out to be irreversible. The fate of New Orleans, with its residents lining up for food akin to a depressed city, revealed an appallingly decayed 3rd world city inside the USA which, to my mind, is but a fractional tip of a gigantic iceberg that are America’s decaying cities on the way to 3rd world infamy.

 

If, for instance, just about 55% of the top 700 cities of the USA will be so badly decayed by 2015 and be declared as 3rd world or ‘developing cities’, then we know more or less that America had catastrophically seen its worst state. With 97% of U.S. population living in cities (urban), likewise will the whole of the USA be declared as a ‘developing economy’ as early as 2015.

 

That is, again, if the destructive ‘virtual economy’ policies will not be taken down and reversed sweepingly. As I’ve declared in previous articles before (when Obama was still campaigning for the presidency), America must quickly return to a New Deal-type policy regime: interventionist, with great stress on revivifying infrastructures, revitalizing transport R&D (railways, shipping, etc), upscaling science & technology investments (including rockets), returning heavy industries (revive steel and many dead manufactures), and ensuring agricultural productivity.

 

Europe is not far behind such near-catastrophic downslide of the USA, just to remind our friends in Europe and the globe. Decisively institute interventionist policies in the continent, regulate the financial-banking sectors (criminalize predatory finance), and revivify social policy that were hallmarks of a once strong and mighty European economy.

 

And there’s no better time to act then now. Failure to act soon, by stubbornly instituting the palliatives (e.g. bailing out failing big banks, semi-regulating stock exchange), will be the best sure-fire formula to see a rapid thirdworldization of the West.

 

Before long, some messianic mad leaders in both continents would be drum-beating their being “stubbed behind the back” and generate new Hitlers and Bonapartes in their backyards. Act now, Western peoples, to avoid this eventuality from ever taking place at all.

 

[Philippines, 21 July 2010]

 

EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

January 15, 2016

EUROPE & AMERICA ON DOWNWARD SLIDE TO 3RD WORLD ECONOMIES

 

Erle Frayne D. Argonza

 

Magandang gabi! Good evening!

 

It’s dusk time as I write, and this dusk at a time of intensifying monsoon rains seems to bode images of a grim future for the West at large. The European Union or EU members and the USA, the gigantic pillars of the global economy, are particularly in dire straits as they have entered the zone of flat growth and perpetual recession.

 

As already tackled by me in diverse articles, the East is surging forward bringing life to the global economy as a whole. In contrast, the West is spiraling downwards, and the strategies their stakeholders are putting into place to arrest the downslide are at best palliative. As the East continues to surge upward, the West continues to stagnate and decay.

 

After World War II, both Europe and America embarked on massive infrastructures and heated industrialization that saw both economies dominating the global economy’s wealth production. The result of that was an OECD producing 60% of Gross World Product or GWP for some decades (today that’s down to 40% of GWP and will still go down).

 

That was the situation back then. By the 1990s, the situation had been badly reversed as a result of liberal economic policies instituted in the previous decade (80s). The rise of a ‘virtual economy’ dominated by predatory finance was instrumental in the West’s massive de-industrialization, decay of relatively unattended infrastructures, decline in science & technology research, and neglect of the transport sector (only Japan & Germany were actively pursuing maglev railways).

 

By the early 1990s yet, certain experts among economists and sociologists in America began echoing alarming notes about the possible downslide of the USA into a 3rd world country should the economic decay, such as that of relatively unattended infrastructures, be allowed to continue till past 2010s.

 

In the late 1990s, my own circle of political economists in Manila (Sunday Kapihan/Independent Review) saw such a possibility ourselves as we consolidated the data made available to us thanks to the internet. By 1998 all fellows of our circle were convinced of the catastrophic direction that the USA and Europe were plunging themselves into, which could begin with a depression past 2005 and a thirdworldization by 2010s (both have been hit by recession this decade as a matter of fact).

 

When Katrina struck the USA and when those floods struck Europe just a few years back, and the same free market policies stubbornly remained in place, I knew the downslide would turn out to be irreversible. The fate of New Orleans, with its residents lining up for food akin to a depressed city, revealed an appallingly decayed 3rd world city inside the USA which, to my mind, is but a fractional tip of a gigantic iceberg that are America’s decaying cities on the way to 3rd world infamy.

 

If, for instance, just about 55% of the top 700 cities of the USA will be so badly decayed by 2015 and be declared as 3rd world or ‘developing cities’, then we know more or less that America had catastrophically seen its worst state. With 97% of U.S. population living in cities (urban), likewise will the whole of the USA be declared as a ‘developing economy’ as early as 2015.

 

That is, again, if the destructive ‘virtual economy’ policies will not be taken down and reversed sweepingly. As I’ve declared in previous articles before (when Obama was still campaigning for the presidency), America must quickly return to a New Deal-type policy regime: interventionist, with great stress on revivifying infrastructures, revitalizing transport R&D (railways, shipping, etc), upscaling science & technology investments (including rockets), returning heavy industries (revive steel and many dead manufactures), and ensuring agricultural productivity.

 

Europe is not far behind such near-catastrophic downslide of the USA, just to remind our friends in Europe and the globe. Decisively institute interventionist policies in the continent, regulate the financial-banking sectors (criminalize predatory finance), and revivify social policy that were hallmarks of a once strong and mighty European economy.

 

And there’s no better time to act then now. Failure to act soon, by stubbornly instituting the palliatives (e.g. bailing out failing big banks, semi-regulating stock exchange), will be the best sure-fire formula to see a rapid thirdworldization of the West.

 

Before long, some messianic mad leaders in both continents would be drum-beating their being “stubbed behind the back” and generate new Hitlers and Bonapartes in their backyards. Act now, Western peoples, to avoid this eventuality from ever taking place at all.

 

[Philippines, 21 July 2010]

 

APPLAUSE TO UNIVERSITY OF SANTO TOMAS ON ITS QUADRICENTENNIAL

February 16, 2011

Erle Frayne D. Argonza

This writer hereby extends Big Kudos to the Dominican-run University of Santo Tomas on its 400th Anniversary!

The University of Santo Tomas or UST, established 400 years ago in the Intramuros district of (old) Manila, has finally grown, matured, and reached international acclaim as an institution of higher learning. It had added milestones to its earlier feat as the oldest university in the Philippines, which renders it worthy of the accolades on its quadricentennial.

I still recall as a young school boy in the 1960s, that my teachers as well as history & geography textbook authors cited the UST as the nest of brilliant youth who later became great minds. Our national hero, Dr. Jose Rizal, obtained his first level of university education from the UST (he took up advanced studies in Europe after the UST stint).

More patriots followed after the footsteps of Dr. Rizal later. The late Manuel L. Quezon, president of the country during the USA’s colonial occupation, was among them. A visionary whose thoughts were to linger long after he was gone, Quezon is among the great patriots of the motherland. He underwent collegiate education in the noble UST.

The UST did not only churn out great men in past eras. In this current context, we have the likes of Bienvenido Lumbera, one of the literary giants of the ASEAN and a National Artist, among UST’s alumni. And so is Brilliante Mendoza, CANNES Film Festival awardee as Best Director, among the long list of upcoming luminaries of the Philippines and the ASEAN.

If there is any coterie of minds that I would give due credit for re-inventing UST that enabled it to be among Asia-Pacific’s top 200 universities, it is the Filipino Dominicans and the Filipino professors who resonated with the innovative designs of their priestly sponsors. The new breed of Dominicans dared to transform the university’s teaching force from one of purely teaching tasks to one of scholarly research faculty broke the long tradition and moved the UST out of stasis.

Without meaning to denigrate the White Dominicans from Europe who dominated UST’s echelon for too long a time, I would have to state candidly that it was during their stewardship that UST stagnated. Thus, it was known for its oldness bereft of the qualitative substance of being a progenitor of new philosophies, arts movements, and scientific R & D.

UST’s faculty was merely tasked to teach, and was assigned huge teaching loads (e.g. teaching 24 units), hence disabling them from engaging in productive research and/or artistic productions. It was during the stagnation phase that the much younger universities—University of the Philippines, Ateneo De Manila University, De La Salle University—became international universities, breaching the UST’s records by several notches.

I asked some pals of mine in the 80s and early 90s—who were teaching in UST—to share their own opinion regarding the relative stagnation of the UST. Without batting eyelashes, they blamed the over-bearing and subtly racist predominance of White Dominicans for the long stasis. Accordingly, the latter were of the mindset that they came to PH to civilize the Filipinos, a condescending if not arrogant attitude.

I was appraised of the situation within the campus and of the arduous efforts of Filipino Dominicans to make their dent in a context where Jurassic colonial tradition was still strong. By the 1990s the innovative Filipino Dominicans and UST professors were finally making headway. As a result, the UST made it to the top 200 universities in the Asia-Pacific in the late 1990s.

Research institutions have since been evolving within the present campus in the Sampaloc district. Some professorial pals of mine, who were products of the U.P. and DSLU and who took up doctorates in top universities abroad, have decided to base themselves in UST. They are now taking up the cudgels of re-engineering their respective departments, thanks to the new policy environment crafted by Filipino Dominicans.

Finally, as UST’s professorial pool has been up-scaling their research & development capabilities, building research institutions and generating research & publications products, the university is on the way to move UST to the next level, which is that of ‘world university’ status. I am highly supportive of the re-engineering, even as I’m confident the university will get there in the foreseeable future.

[Philippines, 15 February 2011]

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Come Visit E. Argonza’s blogs anytime!

Social Blogs:

IKONOKLAST: http://erleargonza.blogspot.com

UNLADTAU: https://unladtau.wordpress.com

Wisdom/Spiritual Blogs:

COSMICBUHAY: http://cosmicbuhay.blogspot.com

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com

Poetry & Art Blogs:

ARTBLOG: http://erleargonza.wordpress.com

ARGONZAPOEM: http://argonzapoem.blogspot.com

Mixed Blends Blogs:

@FRIENDSTER: http://erleargonza.blog.friendster.com

@SOULCAST: http://www.soulcast.com/efdargon

Website & Mixed Blogs:

MULTIPLY: http://efdargon.multiply.com

PHILIPPINE ECONOMY 46th LARGEST WORLDWIDE, CAN GO UP SOME MORE

February 16, 2011

Erle Frayne D. Argonza

Let me continue to tackle the matter of glad tidings for my beloved Philippines. I feel the exuberance and optimism of fellow East Asians who wish to share the joy of the growing economies we have here with the rest of the world.

For this note, I will focus on the Philippine’s national income, an update particularly of the Gross Domestic Product or GDP and the Gross National Product or GNP. The Philippines is one of ten (10) members of the Association of Southeast Asian Nations or ASEAN, a grouping of cooperating nations that will integrate economically in 2015. PH’s growth pattern contributes in no small measures to ASEAN’s growing economic might.

In 2009 PH ended the year with a GDP of around PH P7.67 Trillions. Nominally, that translated to around U.S. $186 Billions. At that time, Net Factor Income from Abroad or NFIA, derived largely from overseas remittances and offshore operations, was around$17 Billions. GNP, which adds up the GDP and NFIA, totaled $203 Billions more or less for that year.

2009 was quite a bad year, as the Great Recession of the Northern economies affected PH by a lowering of the merchandise exports. GDP grew so minimally at a mere 1.5% that analysts thought it couldn’t rebound soon enough. The forecast for 2010 was around 5-6% growth range, already considered a very optimistic forecast.

2010 proved to be a relatively bountiful year for PH, as it grew 7.5% during the first three (3) quarters alone. Election spending pumped up the growth rate to a certain extent, while exports and imports grew up at fat sums as the Northern economies were able to re-absorb higher volumes of merchandise imports. The yearend growth could be at 7% more or less.

A figure of $13 Billion is therefore expectedly added to the old 2009 GDP, to yield a 2010 GDP figure of U.S.$199 Billions. NFIA, based on overseas remittances, ends up at $18 Billions, so the GNP for 2010 stands at a least figure of $ $217 Billions of nominal income.

Manufacturing and services are proving to be the most consistent growth drivers of PH economy on the production side. Agriculture turns out to have a weak performance carried over yet from the 2009 incidence of the strong typhoons Ondoy and Pepeng.

With infrastructures and energy gearing up for larger projects, the growth will be sustained at a very positive level, ranging in the area of 6-7% for 2011. Exports will be sustained at upscale rate, and so will be imports. So we expect excitement in PH growth for 2011. We just hope that agriculture will be able to catch up and breach the 5% growth target at least, then sustain it at that level for the long term.

Consumption-wise, domestic consumption has gone up at an appreciable trend for 2010. Overseas remittances continued to sustain driving up domestic consumption. Private consumption was at all-time high, which contributed to heated retail sales of past 10% and housing & realty continuing its dynamic trend. Government consumption is the one that needs catching up here, a sluggish pattern that is a carry over of past years’ trends yet.

Accordingly, PH garnered the 46th largest economy out of the 200+ nations worldwide in terms of nominal income. At that position, it is clear that PH is among the middle income countries, or that it is way out of the old ‘poor country’ status it had till the years 2002-‘03 when the middle income status was attained.

As the Northern economies are going through stagnation, it is best that PH should target higher growth rates and attain them decisively to be able to move up the ladder of prosperity. In a decade’s time, PH can facilely surpass the performance of European countries one after the other, till it can reach the level of Italy’s or France’s economy as early as 2025.

I am optimistic that in the long run, PH can breach the No. 30 largest economy worldwide. The momentum of growth and prosperity is already there, and a large labor force is proving great as harbinger of wealth production. A large population, with a rising middle class, is also contributing immensely to sustaining consumption in the long run.

As early as 2030, PH can be on the Top 25 economies and maybe even better. PH economy should better double every seven (7) years or so for a straight twenty-one (21) years to be able to make it to the top. When it does so, ASEAN’s aggregate income will surpass Japan’s and possibly the USA’s and EU’s. Let’s all look forward to seeing that day come in the future.

[Philippines, 12 February 2011]

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Come Visit E. Argonza’s blogs anytime!

Social Blogs:

IKONOKLAST: http://erleargonza.blogspot.com

UNLADTAU: https://unladtau.wordpress.com

Wisdom/Spiritual Blogs:

COSMICBUHAY: http://cosmicbuhay.blogspot.com

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com

Poetry & Art Blogs:

ARTBLOG: http://erleargonza.wordpress.com

ARGONZAPOEM: http://argonzapoem.blogspot.com

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@FRIENDSTER: http://erleargonza.blog.friendster.com

@SOULCAST: http://www.soulcast.com/efdargon

Website & Mixed Blogs:

MULTIPLY: http://efdargon.multiply.com

RE-ECHOING CLEAN ENERGY

February 12, 2011

Erle Frayne D. Argonza

 

In the province of Ilocos Norte, in northern Philippines, is a pilot project for wind energy… Hydraulics application has already seen the rise of dams that generate at least couples of thousands of megawatts of power… Geothermal energy will be breaching the 3,000 megawatt level soon, making PH the world’s top geothermal power producer.

 

There are more such narratives of nascent and maturing power producers that tap alternative energy sources, or energy other than fossil fuel. We have vast reserves of natural gas in the country, which is fossil-related though clean energy in classification.

 

Solar power is a sunrise industry, and the good news is that our engineers here have exceeded the capability level of those in California and elsewhere in producing state-of-the-art solar panels. Ocean power research & development is proceeding at rapid pace, with installations projected in pilot areas in the short run.

 

Wind power potentials of the Philippines itself is projected at past the 70,000 megawatt level, which is a whopping figure that is over five (5) times the current electricity needs. Already, over 3,000 megawatts of wind power projects are in the pipeline, either as on-going or soon-to-start-installation projects.

 

In Manila, shuttle vehicles powered by electricity ferry shoppers at the Araneta Center and the Mall of Asia or MOA. Jeepneys in Makati using electricity are also shuttling shoppers as well as employees around the classy Ayala Central Business District, the country’s financial center. Tricycles powered by electricity are also rising, while motorbikes powered by electricity are now in use in Palawan.

 

The news about the usage of alternative energy is increasing by the day in the Philippines. Hopefully, the industrialized Northern countries will move ahead in shifting towards clean energy despite the economic downturns they are now experiencing. Emerging markets are surging ahead in this very dynamic field, and this phenomenon is causing me a sense of fulfillment and happiness being a habitué of the ASEAN.

 

In previous articles, I already shared the information about China’s perfection of the nuclear fusion technology. The news first reached my attention in 2007, and at that time it was projected that the first commercial prototypes for fusion breeder plants will be out in 10 years time. That means that as early as 2016 China will launch nuclear plants powered by fusion technology.

 

So dynamic is the field of alternative energy R & D that the sources of ideas for it are like oceans of thought. There simply are too many options for deriving alternative energy, so that in the not-so-distant future the starships for traversing space will be fueled by clean-recyclable-inexhaustible energy.

 

Let’s take the planet itself and its constant motion. As the planet moves around its axis, torque is generated. Torque is a potential source of energy, and for as long as the Earth revolves around its axis, torque will be inexhaustible. This is one area that I wish to be involved in the R&D phase itself.

 

Airplanes, airships, rockets and satellites can be fuelled in the future by torque among many options. By airships I mean maritime ships of today that can be retrofitted and re-engineered to be able to fly in the air, though at low altitudes, thus turning into a more efficient passenger vehicle more than today’s airplanes.

 

Another planetary source of energy for tomorrow is albedo. Around 1/3 of the heat that gets to the Earth from the Sun and other celestial sources escape as albedo. My thesis is that the escaping albedo can be tapped as an inexhaustible source of energy.

 

Necessarily, the policy environment and institutions that will propel clean energy and make it the sole energy source in the future should be prepared and strengthened early enough. Incidentally, the Philippines is among the countries with an exemplary policy environment for clean energy, and so industrialized and emerging markets can emulate the experience of my country in this line of endeavor.

 

The long-term goal, of course, is to rid the planet of fossil fuel. At some point in the future, extraction of oil & gas should be put to a stop. Prolonged extraction is causing imbalances in the geological structures of the planet, imbalances that can be irreparable in the long run. It would be best to carve out a global policy architecture to cease all fossil fuel extractions in the future, and enforce this strictly.

 

I would be celebrating the day when fossil fuel will cease to be the source of electricity and vehicular power in the foreseeable future. As far as electricity generation is concerned, the Philippines is almost there. But I shall wait a bit till electricity will be totally clean and using non-fossil energy sources.

 

[Philippines, 09 February 2011]

 

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Come Visit E. Argonza’s blogs anytime!

 

Social Blogs:

IKONOKLAST: http://erleargonza.blogspot.com

UNLADTAU: https://unladtau.wordpress.com

 

Wisdom/Spiritual Blogs:

COSMICBUHAY: http://cosmicbuhay.blogspot.com

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com

 

Poetry & Art Blogs:

ARTBLOG: http://erleargonza.wordpress.com

ARGONZAPOEM: http://argonzapoem.blogspot.com

 

Mixed Blends Blogs:

@FRIENDSTER: http://erleargonza.blog.friendster.com

@SOULCAST: http://www.soulcast.com/efdargon

 

Website & Mixed Blogs:

MULTIPLY: http://efdargon.multiply.com

 

RUSSIAN STATE’S KINDNESS TO THE MAFIA OLIGARCHS

February 8, 2011

Erle Frayne D. Argonza

Russia’s federal state had exhibited kindness so far to the mafia oligarchs, one of whom is in jail (the top honcho in the energy industry). This is a clear departure from the Soviet days when organized crime leaders and subordinates were jailed by the thousands in ‘gulag archipelago’ conditions.

The Soviet days are long over in Russia, yet democracy is struggling to take root and governance institutions are strengthening from the fragmentation induced by the anarchic policies of Yeltsin who was, in reality, an agent of the British MI6. It will take some more time for democracy to show strength and resiliency, but clearly the urgency of clipping the powers of the mafia oligarchs is a matter of national security in FSB (KGB) country.

To replay recent history, the former Soviet Union fragmented in ’89 during Gorbachev’s leadership. The Russian Federation was then led by Yeltsin, puppet agent of the Anglo-European oligarchs, and got the largest shares of the pie of Soviet wealth, resources, and military assets (nuke missiles included).

Independent Russia, like the other states, was immediately confronted with the problem of shifting to a market economy. Enterprises were state-owned, and so a sacrosanct policy of the Western puppet Yeltsin was to privatize the firms upon the behest of the International Monetary Fund.

The question thereafter was: who in Russia possesses the money to buy state firms, such as those in heavy industries, oil & coal? Legitimate persons just couldn’t afford those firms no matter if the company prices are dirt cheap, so the option of buyers was the Russian mafia (organized crime groups) of which around forty-five (45) ‘families’ were the largest and most awash with money.

Such mafia groups were far more powerful, wealthy and dreadful than the Sicilian mafia from which the term ‘mafia’ originated. Without further ado, upon the go-signal from Yeltsin’s regime, mafia families gobbled up whatever firm they could lay their hands on. As a result, during the last years of Yeltsin, 80% of Russia’s corporate assets and incomes were in the hands of the mafia.

The dreadful scenario of the mafia taking hold of the nuclear and military assets of Russia soon confronted the patriots of the country. It seems that in the last instance, the FSB (former KGB) was the only institution that can mount a challenge to and clip the gargantuan influence and economic power of the mafia that was rapidly producing the new oligarchy of Yeltsin-era Russia.

And so the FSB, acting as a patriotic fraternal order of sorts, deposed Yeltsin in a silent coup of sorts. Putin, former KGB operative, became the favored leader by the chekka that decidedly took down Yeltsin. With Putin in power, returning Russia to a state of civility was now a huge task laid upon his shoulders.

Returning civility and re-asserting state sovereignty means taking back to Russia its economic powers. It was time to let the new mafia oligarchs taste justice and stop them from further fragmenting the federation. Russia was already on the verge of total fragmentation, and could have been balkanized into mini-states with Russian oligarchs taking over their own respective mini-state to govern, plunder and loot.

Thus was the British oligarchy and its MI6 dirty operators stopped from further destroying Russia and looting whatever they can from its fragile economy by buying dirt-cheap enterprises and joint venturing with Russian mafia families. Putin’s strong arm tactics, with aid from FSB, were necessary in order to restore Russia to its civility and sovereignty, without which the federation could have fragmented at the turn of the new century.

Observably, the FSB is the only solid institution that can face up to the dreaded mafia families and the Anglo-European oligarchs. In China, the equivalent group is the Communist Party that wields draconian powers to direct the compass of growth there. In Turkey, the Army is the one that performs the equivalent of a solid patriotic core that continues to modernize the country and prevent a restoration of the Caliphate.

Each country has its own set of gargantuan national security concerns to look up to, so one better understand Russia from within the context of its colossal dilemmas with the Frankenstein of mafia power. An oligarch in Russia is synonymous to a mafia godfather; oligarchic wealth, derived from criminal operations.

Hard tactics are best to clip the powers of mafia Frankensteins. However, such tactics can no longer recline on Stalinist repression or elimination as Russia is facing a new history of democratic governance. The ‘rule of law’ must be advanced to the max in a global context of strengthening democracies.

[Philippines, 04 February 2011]

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