Sunday, November 30, 2008

Terrorism.

Terrorist have been known to strike at the time when economy is at a brink of collapse. At the time of WTC attack, US economy was on a brink of collapse and they did strike at the financial capital heart, the world trade center. Then US started the war against terrorism and sometime later Iraq war. Both of these wars also played an important role in getting the economy running on the foot again. War activities creates jobs, creates demand for metals, commodities. Creates jobs in mining, weapon factories, army. It kind of starts running the rusted economic engine again. Once the economy starts running, it creates lot more other jobs, to run the engine even better.

Attacks in Mumbai last week were also of similar nature, attacking some of the main business hubs. Casino Royale, the 007 bond movie, talked about linkages between terrorist organizations and the financial markets, but those were mostly related to money laundering and financing such operations.

One solution, i proposed of getting out of this crisis is growth of China and India.
The other solution is a war of a massive scale. Which makes the engine run again. I cannot think of coutries which will take the opposite stances. But, a war against terrorism is a pretty good idea to run the economic engine again.

Ofcourse, i firmly believer that bailouts will not work. You need to address the problem by running the economic engine, not by bailing out one company after another.

I wish, that these terrorist attack U.S. on a massive scale. U.S starts its war against terrorism.
India also joins hand in this war. The economic engine run again. Starting with security watchman, the economy starts creating more and more jobs. These jobs further feed as lubricant to the economic engine and everything run again in the rhytm.

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