MELT DOWNS, MAYHEMS AND TOMATOES

13th October 2008.

On this 13th day of October 2008, the price of tomatoes in a local market in Chennai is Rs.33 per Kg. - an all time high, both during the existence of this Blogger for five decades plus and the existence of this tomato specie in this planet.

What is the reason ? Economic Melt down mayhem ? As jucy debates deepen across the world to identify the reasons and remedies to arrest the on going economic melt down radiation, credit crunch is kicking in unabatedly in many of the citadels of capatilistic structures. Yesterday's neo-liberal market marauders have become today's mendicants. Strong-looking and himalayan sized fortresses of capital kingdoms raze to ground like pack of cards. Bursting of bubbles burdened by the weight of toxic debt traps, forced write-offs of bad debts, haunting memories of menaingless entry into untreaded areas of business (which super- dooper invented that in the unhindered and regulatorless market regime, even mortgage of houses could be converted into saleable proudcts in the show-rooms of bourses. I think ,he/she looses the Noble prize by a whisker) have shrunk these avaricious organizations into today's non-entities begging for alms.

Honey-coated allurements thrown at common man that even a pauper on the street could be made a prince of palace (which can not commonly happen in the dictatorial and hegemonized capitalistic economic landscape), if he/she signs a few housing-mortgage-repayment-sort of agreements, the recital and reading of which quite often tires the mortgagor - all these and others, spew endless and uncontrollable mass of failed capitalistic excreta. The speed with which the radiation of such failed capatilastic economic models travels,entraps in its trail, untreaded areas of human living in this economic scenario and therefore tumbling of prices of tomatoes can not be an exception. Lehman brothers, had they conducted their business keeping in fore the concept of brotherhood as their underlying business philosophy, they would not have built their empire on the soul less ground of capital terra firma, denying millions of housing customers their due happiness and they would not be requiring bail-out from all quarters.


People in the garb of governance rush in unprecedented speed in America to secure a semblence of bail-outs to such failed captalistic corporations. Is it because, corporates, by their very nature and by legal fiction, are like human beings, and have the tendency to commit crimes, either by doing things they ought not to do or by not doing things they ought to do. But the moral question here is, whose money you'are bartering away to bail out such corporations ?Federal Reserve fund of America is tax-payaers' money and no one individual's father's property. There is an opinion taking rounds in America that money bartered away for the bail-outs should have the consent of of its people, atleast by a sort of refrendum. Governments are trustees of the people and their property and therefore they can not be parties to acts bordering on crime of negligence. For paying Peter, you'are robbing Pauls.

The human tragedy behind the failure of these greedy corporations is realy unfathomable. In America, yesterday's house owners have become today's street squatters. Unable to bear the burden of house-mortgage debts, millions of house-owners are bound to abandon their houses in favor of investments bankers. Housing market has been receiving death blows in America and elsewhere.

Beyond these unfortunate human tragedies, the slide down in the economy will add to the large inventory of unsold houses, thereby depressing the prices further. Many mortgages are and will be greater than the house is worth, which , in turn, will lead more people walk away from their houses with inflated prices, producing even more fore-closures of mortgages and further price declines.

Be that as it may, are we justified in not joining the concerns and worries of our neighbour over the prices of tomatoes and commodities, that the spiral activity of the economic melt down had brought? Are there solutions within our reach to inject fresh breathe of life into our dying spirits caught in the clutches of untamed and unbridled price rise ?

In India, no amount of reducing the credit interest rates by the Central banks seem to be rendering a semblence of succor to the common citizen in his quest for two meals a day with the on going and quantum leap of prices of commodities.

One suggestion making rounds is that the world, instead of pursuing capital centric model of economy, may switch over to "green economy", as the best hope for the future. What exactly is green economy ? Of course, clean energy, of course, renewable materials, of course, clean production practices. Environmentally effective economy is one that necessarily one that delivers the highest quality of life to people, while using the lowest planatory resources.

An economic policy that facilitates people getting a lot of lifeless and souless "stuff" is not necessarily one that delivers high quality of life. Happiness research is showing that " it is not
material possession but relationships, community, meaning, a sense of purpose and use one's most valued skills that make us happy".

Good economic policies might be one that helps to strengthen our relationship with the communities, nature, friends, family, etc. Instead, current economic model works to strengthen our relationship with corporations. Everything from our food to health care comes from corporations. These bonds are lopsided and therefore we are at the mercy of changing fortunes of these corporations. What, if our food and health care came from locally, from our communities, for example. This reminds me how barter system worked so well in ancient times.

A government that did not cause us to be so particularly dependent on economic throughput, but instead helped us to forge reliable bonds, might provide more stability in the face of changing corporate fortunes.

When Mahatma Gandhi insisted on the practice of wearing locally produced and home woven khadi clothes, many an eye-brow was raised on the premises that the suggestion would not fetch practitioners in the midst of mingling of occident and oriental cultures. Such a course, according to nay sayers, would negate the natural course of the expansion of an economy built on capital centric model. But the doom-sayers proved wrong. A generation of old and young did wear khadi clothes (and wearing now too) in India and feel a sense of pride and service to the nearest community who produce such products.

When relationships are more local, that is , the farmer knows the distributor, who in turn knows the grocer, people are likely to screw each others. There will be accountability. If the distributor artificially jacks up prices, the former can go to the distributor, and discuss it.

Let us learn not to spend beyond our means. Do you really need that house now ? Do you really need that car right now, when own a bike ? Think. Think.

Green technology is giving more life with less. Drive efficiently, if you drive, walk or bike or ride otherwise. Source your food requirements from the local farmer direct.

I remember to have read what a renowned scientist of Indian origin had said: "Instead of bailing out corporations with 700 million dollars, we could be bailing out nature." What words of wisdom.

Its Bye now from Chandru.