Daily Archives: December 29, 2008

Crude oil -Jump and Fall

The electrocardiogram report of crude oil is baffling and brings a myocardial infarction to the observer.

What a steep rise in early 2008 and what an animated fall in november 2008. It was 147$ in mid March ,and 39$ today.A drastic tumble.

As the surge was beyond comprehension, the downtrend is  also beside  irrelevance.

Both are unbelievable. Both make us look deep into the graph. Analysing we find ,  the upward march was transitory, the sudden spurt down will also be fleeting.

The cut in production of OPEC nations ,has not promoted the falling prices. This is bit confusing. The universal formula of supply and demand does not make much sense here.

The nations Venezuela and Saudi ,whose economy depends on oil resources are badly afflicted., by the oil’s thundering thuddy fall.

The OPEC , in its own interest and in the interest of the consumers, fix a price, which includes a reasonable profit.

The world stands to gain. Prosperity will bring cheer. Cheer will usher unity. Unity will lead to Peace.

Peace on earth and goodwill towards men is the God,s message delivered

Expanding Debt.

A petty shopkeeper got completely broke. Instead of bringing down the shutters, he reinforced his shop with high value goodies and catchy snacks.

I was shocked. What on earth the man is doing?Is he in his senses?How did he muster money to  give a face lift to his shop? As curiosity kills the cat, I made discreet inquiries,which revealed that he has borrowed money for high interest. I was muffled.

Can we term this economy as “Progressive economy”?

Well  the same dogma is followed by the U.S., in a gigantic scale.The doctrine of debt , has been put into force. Borrow more, spend more, keep the economy booming.

Printing paper money against thin air, and circulating it, will move the  stagnant economy is the Fed’s prscription.

U. S President elect Obama has drawn out plans to 700 billion$ to build roads and classrooms ,thus creating jobs.

The Fed has extended its balance sheet from about 900billion$to more than 2.2 trillion . The 1.3 trillion is a cooked up figure, which in reality does not exist.

Overborrowing has led to the present mess.Borrowing further ,with the aim to get out of debt trap ,is ignominous. It is a foolhardy attempt.

Postponing soberity and austerity will lead to great crisis

U.S. has to trim its expenses, practise frugality,and make amends for its reckless consumption and extravagant spending.It is a bitter medicine hard to swallow, but has to be pushed through the gullet ,to save the nation from disaster.

If not it has to go back to  the days of misery.

2008 – A year Not To Be.

Human tendency is to rave about the past.

Recapturing the past deeds, getting excited about the meritorious experiences, revelling on the glory of yore , has been practically followed by each individual. All rules have exception , but this one has none.

The year 2008 , has spelt disaster and dismal occurrences, that we dare not think about it for once.

As we break rules and conventions , for convenience , this retrospective theory has to be moderated.

What  year it was?hmmm— till a few more days to go.!

What a sudden shrivelling melt down, economy in shatters, finances in tatters,wages  in displacement, jobs in devastation .

The bruise has to be assuaged gently, has to be tended with care ,and smothered with gentle rub .

Too much caressing will lead to negation. Too much pampering will spoil the sport. Too much attention will render an irrelevant direction.

The world  economy is at the vertex, a slight  jerk will create a furore too deep to be appeased, a vigorous push will  proceed a tumble, too serious to be retrieved.

A gentle pat , a cordial gesture, a mild approval and a kind compliment will restore economy .

I mean these words both literally and figuratively.

2008 has come to a pass.

The next year 2009, should bring in lot of cheer, sense of joy , pride of well being.