Gamesmith94134: Good and Bad Deficits 2-20-2012



Seriously, I think the austerity program is harmful to the health of one’s’ economy if it have affected the basis of the maintenance and development to grow. In term of the recession or under-achievement time, it would deteriorate less availability of revenues from the cut of programs. Some may cause negativity of the social imbalance like unemployment or social unrest. It is understandable in pursuit of the fiscal balance or debt deficits are significant to its future balance of budget; but most the austerity programs are hemorrhagic because of the layoffs to the shrinkage of the economy.



I often find those deficit hawks wore more ear-marks than local, and the project have been altered its own limits to accommodate the desires to control. Then, commission or operatives adhered to the operation that expanded its linkages to ear-marks. Eventually, the sovereignty projects were exploited through family of linkages and ear-marks on the opposition. Consequently, the cost plus control after environment and financial adjustment, price went into folds to the original planning or disposition of the project that put them to work, nurture their skills, and equip the country with assets.



Or does these boondoggle turn into tit- for-tat can ease on the tension family of linkages and settle on the ear-marks among the developers after they rally politics on its social issues like employment and education? Many believe these are unfazed by the corruption and waste that turns into the ‘Irrational Exuberance’ as shown in the past, like the toll turn out to be the contribution to remodeling of the mayor’s luxurious office.



However, the governments often choose to the build-up or maintenance on the infrastructure projects over social programs like education; but the rationale on the material and human resources over cost and revenue, I favor lower cost in hiring people to work with revenue returned over the larger infrastructures with higher cost. I made jokes on the eight workers watering the pots of plants at the center of the road during the exhibit in China, but what if the water truck costs over half a million and a $50/hr drive to operate. Strategically, the low cost of eight workers over years and timely disposal of the plant sounds more efficient than the fancy water truck and its great driver.

Based on What Adam Smith wrote in The Wealth of The Nation, it gave a clear distinction of the sovereignty debts and duties; that the profit could never repay the expense to any individual, or small number of individuals; and which it, therefore, cannot be expected that any individual, or small number of individuals, should erect or maintain. .” And my vision of the financing sovereignty must put localization to innovate in the processing of the projects, after the decentralized of the public institutions through the political process.



The government should establish a National Infrastructure Bank to provide the finance by borrowing directly, attracting private-sector funds, or a mixture of the two. Then, the supervision and monitory can be developed its oversights in bi-level environment and balance itself through the private and public levels. Perhaps, I am talking of the Sovereignty bonds should be trade through the State Banking system or National Infrastructure Bank to the central banks or World Bank, then, the transfers to the Development Bank. Then, the equitable can be purchased through Insurance companies or equitable entity to ensure supervision and monitory system function properly; and the public institutions are yield to the scrutiny of the public monitories. Eventually, I am certain that the insurance companies can do a better inspection of the progress over time and ensure the necessity of alternation and adjustments. Perhaps, such process can avoid further interruptions and succeed in completion of the projects with proper appropriation and timely financing. In due time, the process of the transitory and monitory system can establish certain trust, then, the private investment can participate its secondary after the proposals; if only the system allows the genuine bi-level supervision and monitory are put in effects.



At least, education can be greater deposit to the assets of the national wealth and social complacency; and employment can generate tax form revenues and students can have a better position in seek a better future. I am sure there are good and bad deficit, if there is an applicable and reliable system to service in the sovereignty level.



May the Buddha bless you?

