SUGGESTION TO THE EUROPEAN COMMISSION PRESIDENT To:               The Right Honorable European Commission President From:             Athinarayanan Sanjeevraja RE:                Greece Crisis Suggestions. Good Morning Mr. President. I am writing to express that Greece must continue on the path of austerity. When I wrote to the Greece Finance Minister two weeks back, I recommended that greater reform efforts, above all on the privatization front, voluntary buyback of the Greek bonds, spiced with a partial guarantee from the EFSF, insurance of new bonds covered by premiums to the ESFS. I have been saying till the beginning of the crisis EU should provide security to Greece so that confidence returns to the economy. But EU always failed to do it. The proposed austerity ...

MY SUGGESTION TO THE BANK OF ENGLAND GOVERNOR To:               The Honorable Bank of England Governor From:             Athinarayanan Sanjeevraja RE:                Fractional Reserve Banking Systems Suggested Remedies: Good Morning Mr. Governor. Financial Times, London reported that UK people are advocate eliminating the fractional reserve systems. London school of economics professor also recommended eliminating fractional reserve banking system. It is absolutely erroneous.   Mr. Governor, if you are referring to full reserve banking, the banks will not be allowed to lend at all. That could throttle the economy unless the government steps in and supplies the money by fiat. I understand that the problem with fractional reserve was that bankers managed to d...

MY CONGRATULATION MESSAGE TO IMF NEW DIRECTOR LAGARDE Esteemed IMF New Managing Director, Good Morning Madam. This is Athinarayanan Sanjeevraja, writing to global leaders on the subject of economic policy, industrial policy and financial regulation. It gives me a great honor and pleasure to extent my most sincere congratulations on your high and responsible office of IMF as a Managing Director. I would like to take the opportunity to share my views with you. The goal of the IMF is to provide the undeveloped countries financial support to construct their economic abilities and then improve the life conditions of their people. But IMF always fails to reach this goal. IMF always generous to pay the loan but it could not set up a good auditing/monitoring process or any required steps to assure that the loan of the loan will be utilized in a proper manner. The governments of the undeveloped countries can borrow more money year by year. Nonetheless the life of their people is nev...

Greece Crisis Greece must continue on the path of reform - refurbished economic structure is essential to restore growth, competitiveness along with an austerity drive to restore the budget to a primary surplus. Stepping up reform in Greece accompanied by a strategy to reduce interest payment and stabilize domestic demand. In some areas progress seems to have been inadequate so far. Therefore a program for Greece should include (a) still greater reform efforts, above all on the privatization front. (b) Voluntary buyback of Greek bonds spiced with a partial guarantee from the EFSF. (c) Insurance of new bonds covered by premiums to the ESFS (d) together with the EU, Greece should map out a long-term investment program for pivotal sectors such as energy, transport and tourism. Front loaded investment spending could help to stabilize internal demand. A revitalized Greek economy will turn the tide. The dictionary is the only place where success comes before work....

TURKEY ECONOMIC PROBLEMS IN 2011 When I observed the Turkey economy in 2011 there are few things are becoming more and more problematic nowadays. Here I address the following problems in Turkey (i) Investment into technologies and human capital are still trailing international averages. Turkey people are still far from understanding the importance of innovation and creative thinking. I observed Turkish people have immense potential but they do not capitalilize it as much as they should. The sense I get is that Turkey people are being discouraged from creating new ways of thinking, due to cultural and religious norms etc. (II0 The current account deficit is high due to high oil imports but also due to the fact that most Turkish businesses are producing exports that are highly dependent on mid-level imports. They mostly produce consumer goods while importing the machines necessary to produce them from abroad. Whenever Turkey advances to the stage when it can produces the machin...

US BANKING SYSTEM 2011 The global economy still hugely overinflated financial side. We’ll keep reading the same poem over and over again. We spend countless hours of legislative time tinkering with bank rules is pointless if Obama administration themselves don’t follow even the basic common sense when managing the economy that the banks operate in. The cause of the financial crisis was not a black swan. It was stupendously dishonest and unethical lending. I say stupendous because this has not been recognized in the UK or Europe. It has in the US, with the consumer protection bureau. What I mean is once lenders lost sight of their borrowers, it was impossible to control it. The other astonishing aspect of the crisis is the failure of the regulatory policies. This is a true political embarrassment. Obama administration should be looking at the shadow political system not just shadow banking system.   Of course, Obama administrations are not taking about anything as sensible as ...

GREECE DEBT CRISIS 2011 Euro zone and ECB has to implement the solution of combining all government bonds up to 60% of GDP as Euro bonds because bond yields are too high so it cannot borrow. Later when banks have build up their reserves to handle eventual restructuring, the Euro zone countries should contemplate such actions were appropriate. If ECB fail to do it. Greece should default.