This article is about two things. It is about how green capitalism is ruining the world. And about how if there is to be a future for the human race then we need money to be created in such a way and according to such rules that ecology is conserved and enhanced.
The 8-year loan from the World Bank to the Government of Bihar was approved on 8th December 2015 to close on 31st March 2023. The World Bank Board report at which they approved the Bihar Kosi Basin Development loan is titled “Converting Adversity into Opportunity”.
The other day someone asked me to explain why high interest rates are no good for the Indian economy. The same day another friend in a discussion about money laughed at the outright absurdity of economists pretending to understand banking and investment. Finally, there is the fun and games of the fascinating new use of the term de-growth in the newspapers.
The earth is now in the era of full-blown runaway climate change. Extreme weather events like in Bihar are affecting 10 million people in one shot in several regions of the world simultaneously. Land use change caused by capitalist farming practices and natural resource exploitation combined with feedbacks from the climate system are speeding up the process exponentially and making the impacts worse every year.
The floods came on the 12th of August 2017, quite unexpectedly without any warning. It had been raining and apparently, the waters from various rivers came all of a sudden due to breeches in various river banks and embankments. Many bridges are broken and there is practically no communication in the district, except for the BSNL mobile services.
Every day there are new financial products marketed by capitalists who are determined to get a risk-free future for private capital even as they drive up earth’s temperatures to beyond what humans can endure.
Recently the Asian Development Bank located in Manila, like most other banks and investment funds worldwide, proclaimed its commitment to climate change mitigation and climate change adaptation.
When we do manual work and look after other living things, when we live and die as joyous workers using only our hands and bodies to engage with all other living things around us, we contribute to the ecological wealth of which all living things are a part.
Capitalism is lending money with interest and asking for the principle back. The money is created by private banks who keep a capital adequacy against which to lend. The voluntary Basel III norm is 8.35%. So, to lend Rupees 100 the bank needs Rupees 8.35 as equity in the bank. The Reserve Bank of India’s guidelines stipulate 10.35%. The terms and conditions on which to lend are entirely up to the bank.
There is a tendency in the national press to judge the political parties in Bihar on the basis of their caste composition. The argument is that the JD(U) is a good enough fit with the BJP because they both represent an alliance of the majority of the absolutely disadvantaged with the minority of the absolutely privileged.
Whilst NTPC is shifting to photovoltaic energy for purely commercial reasons across India, Bihar has 23480 MW of coal fired power in the pipeline. National Thermal Power Corporation (NTPC) and Indian Railways, Calcutta Electric Supply Corporation Limited, Abhijjit Group, Bihar State Electricity Board, Adhunik Group, Infrastructure Leasing & Financial Services Limited, Bihar State Power Holding Company Limited, Hindustan Power Projects, National Hydro Power Corporation are all behaving very irresponsibly indeed by promoting coal-fired power plants in Bihar.
Today Arun Jaitley, the Finance Minister of the BJP government at the Centre, is at the Life Insurance Corporation of India to launch a new Pension Policy for the elderly with 8% fixed rate of interest on a Policy costing Rs 7.5 lakhs.
The present Central Government, run by the Bharatiya Janata Party and Narendra Modi, is making so many mistakes in money policy that one can be sure they will lose the next Parliamentary elections; - unless of course the Hindutva propaganda machine trumps the common sense of the voters' every day experiences.