Thursday, October 10, 2019

You should be loyal if you have chosen to live there.

President Donald Trump's policies are pushing the United States to become like Argentina, wrote Prof K Basu. Last year former Deputy Governor of the Reserve Bank of India (RBI) Viral Acharya compared India with Argentina. If both the US and India become like Argentina then the US will become India which means there will be nowhere to escape for educated Indians. In recent years Argentina has been lurching from one financial crisis to another, the recent one being caused by the defeat of the current President Mauricio Macri in the first round of elections. So why is the US becoming like Argentina? Because, in 1930, Lieutenant General Jose Felix Uriburu came to power in a coup and stopped immigration into Argentina and put up tariff barriers. Apparently, Trump seems to "have little interest in kindness, civility, and empathy, and little concern for the marginalized". Trump wants to build a wall along the border with Mexico to stop illegal migrants and people trafficking. A 6 year old girl from India died of thirst on the Arizona desert while illegally entering the US with her mother. Legal immigration and the H1B visa system continues without restriction.  Basu does not think Barack Obama lacks kindness and empathy for having deported over 3 million illegal migrants, more than Bill Clinton or George Bush did. Trump wants to extend the wall along the border with Mexico to keep out illegal immigrants. He did not start the wall, 654 miles (just over 1,000 km) of barrier already existed when he took office. If the wall reduces smuggling of guns, there maybe a reduction in violence in Mexico where a total of 67,295 firearms recovered "between January 1, 2013, and December 31 2018, were determined to have been either manufactured in the US or legally imported into the US, an average of 11,216 per year". Is Trump wrong about tariffs? The World Trade Organization (WTO) has just recently allowed the US to impose tariffs on $7.5 billion of imports from the EU for providing subsidies to Airbus. China has been violating trade agreements blatantly for decades by stealing intellectual property, forcing technology transfer and by subsidising its companies. It protects its home market "from American imports with high tariffs, tricky non-tariff barriers, and costly, constantly changing regulations". Trump is not the first to ask for lower interest rate. Switzerland, Denmark, Sweden, Japan and the 19 countries of the euro area have negative interest rates which would boost their exports by weakening their currencies. Rear Admiral Lou Yuan of China suggested sinking a couple of US aircraft carriers in the South China Sea. China is a danger to the world and especially to India. Prof Basu has migrated from India to the US. He may not agree with Trump's methods but he should be loyal to the US. Refrain from writing one-sided articles. Irresponsible.

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