USA Home Loan Bust and Indian Farmer's Suicides - What is the Link?
The underlying principle of both the above is that the variable
mortgage / loan interest rates go so high that the victims are unable to
repay.
I am not sure what happens when a house owner in USA faces eviction for not being able to pay the rent. The big banks that bought and sold such instruments went bust. The ones that didn't go bust were shored up with public money.
With regard to farmers in India, especially with the onset of genetically modified seeds, a large amount of money is required for sowing since the seeds from the harvested crops can't be reused. Further, take a look at the predatory actions of Monsanto which is now closely associated with DOW chemicals. Monsanto's slogan is to have every crop in the world to be grown using Monsanto's seeds.
It was DOW and Monsanto that created Agent Orange for the Vietnam war.
They are so powerful that even the farmers' lobby in the USA could not get Monsanto not to sue them in case there were even trace amounts of Monsanto crops in a large field. This is absurd. Several times, Monsanto samples crops without the suspicion of the farmer and then when trace amounts of modified DNA is found, they take the farmers to court.
The problem of the small farmers in India is compounded by having to approach unscrupulous money lenders who charge exorbitant exploitative interest rates. India has fourteen agro-climatic zones, for all of which it may not be possible to tailor make seeds. Therefore you see few pockets where the seeds are to some extent successful and others where they are not.
Caught between Monsanto, and the local moneylenders, many farmers have no recourse but suicide. So many of the stories are heart rending. I happened to see some pictures of absolute despair. Of people at the absolute end of their tether.
The relation between the two is the predatory practices employed that affected millions of livelihoods. The greed and impunity with which corporations and money lenders continue to operate is alarming. I am hoping India can contain this virus from spreading too fast.
Predatory lending and marketing strategies can have a catastrophic effect on the society.
I am not sure what happens when a house owner in USA faces eviction for not being able to pay the rent. The big banks that bought and sold such instruments went bust. The ones that didn't go bust were shored up with public money.
With regard to farmers in India, especially with the onset of genetically modified seeds, a large amount of money is required for sowing since the seeds from the harvested crops can't be reused. Further, take a look at the predatory actions of Monsanto which is now closely associated with DOW chemicals. Monsanto's slogan is to have every crop in the world to be grown using Monsanto's seeds.
It was DOW and Monsanto that created Agent Orange for the Vietnam war.
They are so powerful that even the farmers' lobby in the USA could not get Monsanto not to sue them in case there were even trace amounts of Monsanto crops in a large field. This is absurd. Several times, Monsanto samples crops without the suspicion of the farmer and then when trace amounts of modified DNA is found, they take the farmers to court.
The problem of the small farmers in India is compounded by having to approach unscrupulous money lenders who charge exorbitant exploitative interest rates. India has fourteen agro-climatic zones, for all of which it may not be possible to tailor make seeds. Therefore you see few pockets where the seeds are to some extent successful and others where they are not.
Caught between Monsanto, and the local moneylenders, many farmers have no recourse but suicide. So many of the stories are heart rending. I happened to see some pictures of absolute despair. Of people at the absolute end of their tether.
The relation between the two is the predatory practices employed that affected millions of livelihoods. The greed and impunity with which corporations and money lenders continue to operate is alarming. I am hoping India can contain this virus from spreading too fast.
Predatory lending and marketing strategies can have a catastrophic effect on the society.
posted by Anon @ 9:04 AM
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