> Why do Americans assume all Chinese and Indians are fools?
Why are you jumping to that conclusion? All I read was how fucked up the management structure was and how Yahoo managed to consistently hire bad managers who hired bad engineers who drove projects into the ground. It just happened that they found a lot of bad engineers in India. (And you admitted yourself that there are plenty of bad engineers in India, just like everywhere else).
> The US taught us ideals of capitalism
"Do as I do not as I say" is perhaps the new motto. What we teach is propaganda. That is for bed-time stories for kids, not for the real world. If you look at how external trade, tariffs, protectionism, subsidies for our various industries work, you'll quickly understand that it is most definitely not a 'free' and 'open' market. When we say 'free' trade and 'globalization' we actually mean 'you open your markets so we can flood it with our companies' goods'.
> I am from Bangalore, And I seriously don't understand this Bangalore and Beijing hate.
Again, why do you say there is Bangalore hate? There is hate at bad management decisions. Apparently Yahoo has managed to consistently hit the majority of bad engineers and an ex-employee was watching his company's projects go to shit because of it. Dunno, seems like a valid thing to hate...
> What you must fear is good hardworking folks coming at cheap prices.
Hardworking is not good enough. Compensating by lack of knowledge by doubling the effort, and writing, 10x as many lines of code, is the wrong way to do it. It is a sure way to fail. In a more sarcastic way it would mean "When unsure how to proceed, just keep churning large piles of code!"
Programming is not picking potatoes. You cannot substitute 1 good programmer with 10 average ones. It just doesn't work that way. When you pick potatoes, you can say, if I hire 10 pickers and they pick x potatoes per hour then I'll get these many potatoes -- awesome. Programming is like composing music -- a hundreds average composer monkeys won't be able to compose a piece that one good composer can. It just doesn't work that way. It is inherently a creative process.
> In fact we love America for the help they offer us.
Sorry to disappoint, I seriously doubt genuine altruistic motivations are the cause of this "help". India might perceive it as such, but I seriously doubt that's how American (or any) external policy works.