President Barack Obama Needs of Implication of Theory of Common Denotation On Oil Economy
Dr Surendra Bhakta Pradhanang
January 22, 2009
George W.Bush legacy is over. America is at war and the U.S. economy is in crisis. There are big challenges and opportunities to President – elect Obama.The true character of U.S. is exhibited not during times of comfort and ease, but by the right we feel the moment is very hard and critical.Obama´s inauguration of leadership has started seeing high expectations and enthusiasm of public on changing America. A sea of Americans standing in arctic cold in front of Abraham Lincoln´s memorial are watching Obama for a radical change - new and innovative environment – in the history of America. To set up the new history, a new and innovative thought is needed. The young and enthusiastic president has definitely to bring a revolutionary and reformative change in America.
For changes in America the Theory of Common Factor Denotation in the oil economy has to be timely implicated by America to meet for reforming and enhancing economy of U.S.A. and global economy as a whole. To cope with recession, inflation and downturn of economy of U.S.A. and world, it is an urgently need of implication of fixing oil price at a reasonable point in terms of controlling and monitoring mechanism for a long term as a basic foundation to the economy. In the wake of being collapsed oil prices and tumbling inflation, the immediate economic measures have to be taken into operation. In between knowledge and wisdom of thought for oil economy, OPEC may be the role model for sustainability of global economy if America seriously thinks over.
A wave of corporate collapses seems in 2009. Nobody can predict the first hand idea whether 2009 will see economic recovery – return to 1930´s. Forcasting is a mug´s game in the current economic recession. If Obama clicks, it is good for all- America and world – in the context of global economy. It must not be an irritating wait in action plans.
War is a danger for all. In war everyone dies including civilians and fighters and innocent and villains. In fact, death is ugly and the symbol of stress for mind and body into the transformation to the high blood pressure to mankind.
Obama asks, "Help rebuild America one neighborhood at a time". The U.S Force has to be returned from Iraq as soon as possible and many more social reform packages have to be introduced and implicated in America.
Unemployment is the big social and political issue of 2009. More than a million jobs in the U.S. in the final months of 2008 following financial market or economy lost and meltdown.
Looking to attract foreign funding in the wake of the banking crisis, it is necessary to raise interest rates and clean up the financial system for recovery of U.S.economy.Obama and the concerned policy makers must think over. Pretty much, the Fed and other central banks globally have done the opposite to it.Coditionally, the foreign investors are being asked to finance in the U.S. Until recently, the U.S. offered a bargain to China and other Asia creditors. But the question arises for foreign investors whether they are ready to keep purchasing U.S. government debt at what price. The risks of a crisis in the bond market and a collapse in the U.S.dollar are serious concerns to investors.
Unfortunately, today the United States of America is being seriously faced by inflation, credit crisis, recession and above all – a curse stagflation – as it is likely back to the position of 1970s.
Undesirably, the prices of gasoline dramatically fluctuated from $ 150 per barrel to $ 39 per barrel, which is not good for American economy as well as global economy. The price of the gasoline has to be fixed from the standpoint of long term economy as well as sustainability for the global economy. The OPEC lying in the crisis is compelled to cut down the petroleum products due to downturn in price and demand.
The U.SA. imports oil from different countries like Canada (20%), Mexico and Latin America (20%) and Middle East (15%).
The American population at a record is 300 million. The people of America worry about increasing trend of price level on gasoline while oil exporting countries equally worry at decrease on oil price, which is badly affected to the global economy. Similarly, the high expenditure cost on Iraq war estimated $10 billion per month is dissatisfaction of the American people.
For over a decade, America imported price deflation primarily from China and India in the form of cheap labour, goods and services. Today that very same pool of cheap labor has earning power and new money to spend out. There are 2.4 billion people combined from China and India together, which is eight times the U.S.population.
Since May 2007 world market price undesirably increased. In accordance with the Time Magazine, market price went up dramatically as Oil-up 89%, Dairy –up 24% and Meat – 12%, Cereals – up 89%, Oils and Fats – 77% and Sugar – up 40%.
The recent Consumer Price Index report of 2008 April shows that inflation was running at 3.94 % down from 3.98% in March in the U.S.A. It is certainly high and higher than the Fed´s target rate of 2.2 % estimated.
The Energy Information Administration stated that the U.S.oil demand during the first half of 2008 fell down by an average 800,000 barrels per day compared with the same period a year ago - probably the biggest drop in 26 years.
Until recently, the American economy remains recession but no worse condition, nor non-recovery. It can be as strong as the previous position if America leaves war. The main thing is that the general people are being suffered more in terms U.S.economy.of income and employment and inflation on the one side and budget cutting in public welfare administration and care on the other.
Now is the time to think and rethink to build America better after better until to set a sustainable system and practice on oil or fuel economy in the nation and world. The new thought for oil economy for stability in oil prices and its impact to the American economy as well as global economy is as challenges and opportunities to cure – a chronic economic pain to the U.S. economy. In other words, it is indeed crisis in the U.S.economy as well as world economy as a whole.
In order to solve this problem in the US economy and global economy, Dr Pradhanang who is the eminent economist and Father of Village Tourism of Nepal propounded the new thought - ´The Theory of Common Factor Denotation´
The economist of Nepal, Dr Pradhanang opines, "When the common factor turning into economic factor on goods and services holds the new weight in cost, the price of each commodity tends to increase and harms in the stability of price level – lead to inflation or inflationary pressure. In such circumstances, fixing oil prices at any rate in an agreed stagnation for a periodical duration of time can be a positive check or a principle for growth of oil economy to the U.S.economy as well as global economy which gets a chance to go back to the normal position as a remedial process to the economy as a whole. Then the chain economy instantly in terms of opportunity cost can be worked in progress by multiplying cells as a relief in the national economy."
"Most elaborately, the common factor denoting goods and services - oil price level should not be increased for the period of a specific time e.g. 10 years. Resultantly, the inflationary pressure will come down and the rescue operation will be taken place. Then the opportunities entering or creating into the several microeconomics based activities will be run and gradually expanded if other factors are remaining same or favorable."
There will be a relief in economy showing a sustainable exercise which would cut down inflationary pressure or assist for downturn in inflation by 40 % - 50 % to the causes of inflation in the economy.
To achieve this principle or theory, the following minimum conditions have to be considered as basic ground for normalization of economy:
1. Gasoline as international goods and services acceptable to all nations of the world for common welfare.
2. Need of international common agreement or treaty on the ground of globalization - expansion of global trade and industry and the search of global welfare economy of each nation – developed or developing.
3. The oil exporting countries – especially OPEC Nations should voluntarily agree for fixation of oil prices for the specific duration of time at least 10 years interval as their best contribution to the world population.
4. In lieu of consideration of fixation of price for the specific period of time, the International Community must agree to honor oil exporting countries - OPEC Nations as ´Good Nations for Good World Creation Economy´.
5. A special recognition and honor to the oil exporting countries should be marked at the top of the world economics index. Those nations which are specifically noted as ´Positive Economic Contributor For World Economy´ are provisionally graded to best for world.
6. The common principle sets as one world as brotherhood with loves one to other for uprising from micro and macro economy to global economy.
7. Oil enriched nations gifted by the nature must be obliged and oil as international property should be protected and guaranteed by the world community for their safety, respect and significance.
This is thought for national interest and international benefit. The people and government of the United States of America urge to pay attention to eliminate the economic pain through this proposed idea. This is on one hand a difficult task for implication and a simple way or suggestive measure for upgrading the U.S. economy and global economy on the other. Presently, the leadership changed from Bush to Obama in the United States of America with enthusiasm and zeal.
Rightly, this job can be timely done under the leadership of the President Obama. Every nation should assist to the U.S.in this goal and for common benefits to all.
For changes in America the Theory of Common Factor Denotation in the oil economy has to be timely implicated by America to meet for reforming and enhancing economy of U.S.A. and global economy as a whole. To cope with recession, inflation and downturn of economy of U.S.A. and world, it is an urgently need of implication of fixing oil price at a reasonable point in terms of controlling and monitoring mechanism for a long term as a basic foundation to the economy. In the wake of being collapsed oil prices and tumbling inflation, the immediate economic measures have to be taken into operation. In between knowledge and wisdom of thought for oil economy, OPEC may be the role model for sustainability of global economy if America seriously thinks over.
A wave of corporate collapses seems in 2009. Nobody can predict the first hand idea whether 2009 will see economic recovery – return to 1930´s. Forcasting is a mug´s game in the current economic recession. If Obama clicks, it is good for all- America and world – in the context of global economy. It must not be an irritating wait in action plans.
War is a danger for all. In war everyone dies including civilians and fighters and innocent and villains. In fact, death is ugly and the symbol of stress for mind and body into the transformation to the high blood pressure to mankind.
Obama asks, "Help rebuild America one neighborhood at a time". The U.S Force has to be returned from Iraq as soon as possible and many more social reform packages have to be introduced and implicated in America.
Unemployment is the big social and political issue of 2009. More than a million jobs in the U.S. in the final months of 2008 following financial market or economy lost and meltdown.
Looking to attract foreign funding in the wake of the banking crisis, it is necessary to raise interest rates and clean up the financial system for recovery of U.S.economy.Obama and the concerned policy makers must think over. Pretty much, the Fed and other central banks globally have done the opposite to it.Coditionally, the foreign investors are being asked to finance in the U.S. Until recently, the U.S. offered a bargain to China and other Asia creditors. But the question arises for foreign investors whether they are ready to keep purchasing U.S. government debt at what price. The risks of a crisis in the bond market and a collapse in the U.S.dollar are serious concerns to investors.
Unfortunately, today the United States of America is being seriously faced by inflation, credit crisis, recession and above all – a curse stagflation – as it is likely back to the position of 1970s.
Undesirably, the prices of gasoline dramatically fluctuated from $ 150 per barrel to $ 39 per barrel, which is not good for American economy as well as global economy. The price of the gasoline has to be fixed from the standpoint of long term economy as well as sustainability for the global economy. The OPEC lying in the crisis is compelled to cut down the petroleum products due to downturn in price and demand.
The U.SA. imports oil from different countries like Canada (20%), Mexico and Latin America (20%) and Middle East (15%).
The American population at a record is 300 million. The people of America worry about increasing trend of price level on gasoline while oil exporting countries equally worry at decrease on oil price, which is badly affected to the global economy. Similarly, the high expenditure cost on Iraq war estimated $10 billion per month is dissatisfaction of the American people.
For over a decade, America imported price deflation primarily from China and India in the form of cheap labour, goods and services. Today that very same pool of cheap labor has earning power and new money to spend out. There are 2.4 billion people combined from China and India together, which is eight times the U.S.population.
Since May 2007 world market price undesirably increased. In accordance with the Time Magazine, market price went up dramatically as Oil-up 89%, Dairy –up 24% and Meat – 12%, Cereals – up 89%, Oils and Fats – 77% and Sugar – up 40%.
The recent Consumer Price Index report of 2008 April shows that inflation was running at 3.94 % down from 3.98% in March in the U.S.A. It is certainly high and higher than the Fed´s target rate of 2.2 % estimated.
The Energy Information Administration stated that the U.S.oil demand during the first half of 2008 fell down by an average 800,000 barrels per day compared with the same period a year ago - probably the biggest drop in 26 years.
Until recently, the American economy remains recession but no worse condition, nor non-recovery. It can be as strong as the previous position if America leaves war. The main thing is that the general people are being suffered more in terms U.S.economy.of income and employment and inflation on the one side and budget cutting in public welfare administration and care on the other.
Now is the time to think and rethink to build America better after better until to set a sustainable system and practice on oil or fuel economy in the nation and world. The new thought for oil economy for stability in oil prices and its impact to the American economy as well as global economy is as challenges and opportunities to cure – a chronic economic pain to the U.S. economy. In other words, it is indeed crisis in the U.S.economy as well as world economy as a whole.
In order to solve this problem in the US economy and global economy, Dr Pradhanang who is the eminent economist and Father of Village Tourism of Nepal propounded the new thought - ´The Theory of Common Factor Denotation´
The economist of Nepal, Dr Pradhanang opines, "When the common factor turning into economic factor on goods and services holds the new weight in cost, the price of each commodity tends to increase and harms in the stability of price level – lead to inflation or inflationary pressure. In such circumstances, fixing oil prices at any rate in an agreed stagnation for a periodical duration of time can be a positive check or a principle for growth of oil economy to the U.S.economy as well as global economy which gets a chance to go back to the normal position as a remedial process to the economy as a whole. Then the chain economy instantly in terms of opportunity cost can be worked in progress by multiplying cells as a relief in the national economy."
"Most elaborately, the common factor denoting goods and services - oil price level should not be increased for the period of a specific time e.g. 10 years. Resultantly, the inflationary pressure will come down and the rescue operation will be taken place. Then the opportunities entering or creating into the several microeconomics based activities will be run and gradually expanded if other factors are remaining same or favorable."
There will be a relief in economy showing a sustainable exercise which would cut down inflationary pressure or assist for downturn in inflation by 40 % - 50 % to the causes of inflation in the economy.
To achieve this principle or theory, the following minimum conditions have to be considered as basic ground for normalization of economy:
1. Gasoline as international goods and services acceptable to all nations of the world for common welfare.
2. Need of international common agreement or treaty on the ground of globalization - expansion of global trade and industry and the search of global welfare economy of each nation – developed or developing.
3. The oil exporting countries – especially OPEC Nations should voluntarily agree for fixation of oil prices for the specific duration of time at least 10 years interval as their best contribution to the world population.
4. In lieu of consideration of fixation of price for the specific period of time, the International Community must agree to honor oil exporting countries - OPEC Nations as ´Good Nations for Good World Creation Economy´.
5. A special recognition and honor to the oil exporting countries should be marked at the top of the world economics index. Those nations which are specifically noted as ´Positive Economic Contributor For World Economy´ are provisionally graded to best for world.
6. The common principle sets as one world as brotherhood with loves one to other for uprising from micro and macro economy to global economy.
7. Oil enriched nations gifted by the nature must be obliged and oil as international property should be protected and guaranteed by the world community for their safety, respect and significance.
This is thought for national interest and international benefit. The people and government of the United States of America urge to pay attention to eliminate the economic pain through this proposed idea. This is on one hand a difficult task for implication and a simple way or suggestive measure for upgrading the U.S. economy and global economy on the other. Presently, the leadership changed from Bush to Obama in the United States of America with enthusiasm and zeal.
Rightly, this job can be timely done under the leadership of the President Obama. Every nation should assist to the U.S.in this goal and for common benefits to all.
Print
Email
