The latest edition of CPM organ People’s Democracy carries an article on the US government’s decision to bail out loss-making mortgage companies Fannie Mae and Freddie Mac, contrary to its ideology of capitalism and market economy. The piece titled ‘Profits for the private corporates and losses to the taxpayers’ argues that by taking control of the two firms, the Bush administration has effectively passed on the losses suffered by the private companies to American tax payers. “Actually the take over of Fannie and Freddie by the US government means that losses incurred by the private corporates running into trillions of dollars are being added to the national debt of America, which has now reached USD 10.6 trillion (Rs 4,66,40,000 crore). “The war expenses in Iraq and Afghanistan are already added to the national debt directly, without being shown in the budget. Together, the American national debt would increase by trillions of dollars in the next few years and place unbearable burden on the present and future generations of American taxpayers,” it says. The article concludes that American capitalism’s market economy has turned into profits for corporates and losses to American taxpayers.

Loss of sovereignty

Another article titled ‘the price of triumph: NSG waiver and after’ looks into the strategic aspects of the Indo-US nuclear deal in the context of the Logistics Service Agreement being negotiated between both the countries.”India gets US support for lifting nuclear sanctions, while India accepts that the US fleet and US Air Force can now freely access India’s ports and other facilities. The US forces can bomb Iran and Iraq and then come to India for refuelling, rest and recreation,” it claims.

... contd.