Category: Economy

Categories
Economy subscriptions thoughts

Trade And Commerce-The Indian Way.


Business lacks ethics, in general,more so in India.The righteous path, the direct approach, the minimum gain, and maximum satisfaction  are the four virtues of  trade. But ,such a straight forward scripture is an outdated  ,obsolete unrealistic ideal.

Commerce is a transaction, between individuals,between companies,between manufacturers,between nations.It is similar to barter of yore. In primeval ages rice was exchanged for metal, wheat was  bought by selling befitting quantity of   vegetables,fruits were procured by disposing cloth,meat was transacted for fodder, cattle were bargained for provisions. This system knew no currency,Money was an alien word. The trade had its own course of movement. There was no intermediaries, no brokers, no transaction fee, no commission, no service tax, and no sales tax. All these “no’s”,kept things in beautiful shape . The progression was present . The durability of prosperity was exemplified. There was consolation.There was enough pride. There was enormous happiness.

Later on, Trade and Commerce underwent a metamorphic transcendence. The currency was introduced, to simplify the process. Instead it muddled up the entire industry. The Pandora’s box was let open. There was an en wrapping methodology of  chaos.The currencies took different names, such as dollar, pound, lira, rupee.They also had varied values.They were in proportion to the gold reserve of the respective country.

With money’s advent, the hornet’s nest was resurrected.The business practice assumed a significant deviation from the accepted norms. The Indian way was a predominant throttle that dumped the integrity,and sincerity to the gra ve.The Indian businessman took law unto his hands. He hoarded goods, shelved them in godowns, bribed the officials, and entered into unholy nuances thus demeaning the sanctity of business. Trade , is a child’s play in his hand.Commerce is a puppet like show to this Indian tradesman. He makes politicians dance to his tunes.The cabinet is at his beck and call.The policies are framed as per his wish. The rules are amended as per his whims. The reinforcement of schedules are according to his fancy.The banking sectoe are under his thumbs. The stock exchange dangles to his nods and nots.A dissenting voice is subdued either by force or by money.

The Indian top businessman moves about in kingly dimension. The export and import are a branch of his manipulating majors. Thr tricks he let loose are impressively baffling.The  scheming ,he  deploys  are insensitively wicked.The connivance, he converges is irradically contemptuous.Yet he makes merry,at the expense of his nation. Yet he revels in gaeity at the cost of the people.Yet he enjoys ultimate bliss  foresaking the prosperity of the country.

Categories
Economy subscriptions thoughts

Budget 2009-Old Wine In new Bottle


Pranab Mukerjee has come out with a budget which is neither sensational nor a bore. It is lacking in impetus .It does not predict any positive diaspora. It is an uneventful presentation, and an uninteresting compilation. Every year , the nation witnesses a similar enactment , though by different ministers.Pranab quotes from Kautilya, Chidambaram from Tirukkural.They add colour to the Budget,but have no connected  investigations. Quotes are good to hear, good to memorise, good in orations, good as an interlude,while listening to the monotony of fiscal statistics.But ,fail to produce a serious impact on governance and reforms.The maxims and sayings are just like spices in dishes. If the main dish does not turn out savy, the addition of spices is a mere waste of exercise

Education , is the core sector , that has to be be keenly observed.

The IIT’sand NIIT’s are getting Rs 2113 crores.Female literacy , is given a momentum.Banking and Insurance are to be with the government. Pranb is following the footsteps of Indira Gandhi. This has been in vogue for 30 years.

Employment, is to be provided for twelve million  new jobs. How is the government going to  provide it? A scepticism prevails Tax sops are not found, except for the abolition of fringe benefit  tax.
The Budget  is devoid of lustre,  bereft of dynamism. It is a cautious tread over the irregular functions.

A break into the accepted idealogies is the  quick need . An indecisive , monotonous approach is not going to bring in growth. This drab approach will stifle growth. A negative trend will set in. The sixty years of independence , has not brought in high level progression. Governments are churning the milk, that too not vigorously , but in a dull speed. Generation after generation speak about the rich heritage,  bask in reflected glory. There is no charm . India is pictured as a land of snakes, a region of poverty, and a terrain of teeming population. harbouring various infections. When are we going to come out of all these  implicated details?

The Nation expected a buget  of credibilty, of susteneance and of growth. Obsessions  with age old customs  and ceremonial  practises  should be ripped off. Getting into the actuals, analysing what is the requirement, coming out of the clutches of big shots , should form the quorum of the government.

Freedom from all entrappings, whether it be from business tycoons, political big wigs,  should be discovered . Put your nation first,  think about your people first, work for the progress first, only then we can secure real prosperity . 

Categories
Economy subscriptions thoughts

Deficits Many


The deficit which is talked  with firm measurement, which is addressed with grea t attention , which is followed with much curiosity, and which finally aims to clench the hot spot of the arena is the financial discrepency.

Finance plays a vital role in this materialistic world.  Most feel that finance is the be end of  the entire discretions. But , it is not so .Finance , is a trivial echo of the assigned portfolios of man.The money, we earn, is to be utilised ,for the welfare of the family in particular and for the uplift of the society in general.The deficit ,we experience,will surely land us in unthinkable trouble. The existence will become difficult. This suppressing tension will lead to mental spasm. The insecurity which arise  will affect the mind. The  complex developed will assume gigantic proortions , once the  tighteness inthe resources arrives at a determintal level.

The restlesness of the mind  is so oppressing that the physic gets waned. The exhaustion numbs the mobilty.The strained  physic makes  a detiorarating stance. .The illness that afflicts the body plays havoc  rendering it a bag of bones ,capable of doing nothing.

The financial instabilty ,if taken seriously ,brings about a cyclic reaction ,as seen above. The alluring deviation of material abundance should not cross the human existence. This ups and downs in prosperity , is but a normal occurrence , as we perceive dawn and dusk. A too much attachment to worldly pleasures , turns life unworthy. It derides the quality of living. It throws out of proportion the beauty of life.

A detached equanamity  towards material pursuits will enhance the essence of life. Care and caution are to be enforced to monitor wealth. But that should not become an obsession. There are other distinctions that have high value. The formidable revenue ,we get from life is not material wealth but an overallgrowth of personality . The showcase of richness is not money , but the physical wellness and mental contentment. Happiness does not come in pounds and dollars , but in the outlook and perception, in elegance and style, in approach and advance..

 

Categories
Economy subscriptions thoughts

Inflation Negative.


Inflation is not growing . It is showing negative trends. This is being propounded by all Indian Newspapers and newswires. I have my own doubts.

Today the government has announced a rise in petrol prices by 4Rs and diesel prices  by 2 Rs. This will give a jump in fares of public transport system. The common man will be affected. The trains will increase the cost of the tickets. Airlines will jack the  fare with the escaltion in fuel cost. They will  air lift the taxes.The freight despatches will become expensive. This will ultimately promote enhancement in the cost of provisions, vegetables and fruits. The manufacturing industry will be accruing heavy toll in the procurement of raw materials and outbound conveyance of finished goods. The circle is  painstakingly completed.

The price of  essential commodities like rice which was sold at 20 Rs / kilogram last year , is sold at 40 Rs  now. This price is for the uality rice. Simaltaneous hike is revealed in other food stuff also. Dhal is up by 20%. Tamarind by 50%. Sugar by 12%. coffee by 60%, Tea nearly40%. Vegetables are not left out. Tomatoes are range bound from 20 Rs -30 Rs.Potatoes remain constant. Carrot, beans, brinjal , cauliflower have shot up. Peas and capsicum are touching new highs. Onions and garlic have increased marginally.The fruits also reckon high growth in prices. Oranges and grapes are fetching high  money.Coconut is the only commodity that is facing inflation negative.

So much so . with the commodities sector ,which are raked by the rising . The precious metals shine so costly that the up rise is beyond comprehension. A gram of gold is about 1369Rs. Silver is no lesser than the yellow metal . It is about 23.90 Rs per gram..The land value is putting me in deep deliberation. A piece of land which was sold for 300.ooo Rs a few years  back is  1. 5 million now.  A  small time  land owner will automatically become a millionaire . What a phenomenal rise. All things make me swoon, render me dizzy. I need help both physically and financially to survive the test of times. But , I see no light.

Yet the government calls it out that there is down trend in inflation. The little economics ,I know , makes me count otherwise. How do the analysts reckon such a data? I am at a loss to understand the principles of economy. The rudiments of business never get into  my head. I feel ,there is something radically wrong in my upper chamber.God forbid!

Categories
Economy subscriptions thoughts

Relaxing For Reliance, Taxing The Mass.


The major policy decision of the newly formed Indian government is to free fuel prices from State.Oil minister Deora told reporters “It will go to cabinet.It will be discussed soon, within six weeks. The main beneficiary  is Reliance Industries, which will reopen its retail network.

As congress has formed the government on a strong base, away from the communist clutches , the market based fuel pricing will turn out a reality soon. The subsidies that were imposed to keep the price under control will be withdrawn.The wide fiscal deficit that arose out of artificial suppression of fuel price would be reduced , if the state delints itself from fixing prices.

Market driven pricing also will curb the use of fuel in India.These aspirations of the congress government will find a swift approval in Parliament. But the uproar and upheaval among the mass are hard to predict.

India , is a thickly populated country, with the majority depending on public transport. Once the subsidies are taken back , the fuel will surge high , resulting in the increase of fare in transport systems. The elections  are over, and the people have voted congress to power, with the desire that a stable federal government will bring growth and prosperity to the nation. This immediate decision of Manmohan singh  cabinet ,is a bot from the blue. The governance , instead of aiding the mass, is allowing a giant industrial power to renew its retail network, thus working significant profit.

The major oil companies . Indian oil, Bharat Petroleum, and Hindustan Petroleum corporation , stocks rose between 8-15%.Deora has assured that the he will see to it that fuel reach people at the right time and at the right price.

The sustenance of deregulation is  a big question. How long? and How well?.Crude oil is  making a forward move. When the price reach a high of 75$ , the plug in of deregulation will phase out. Kerosene prices are sold in  public retails with a huge subsidy , will shoot up , leading to a chaotic trend , as the majority depends on it . The extension of price hike in this sector . that is kerosene , will trigger a mass agitation. It looks like a political blunder.

Governance is a sure ,spectacular ,eventful ,sprightly affidavit. The essence of it lies not in haphazard  ,hurried provisions but in meticulous ,well planned, thorough thought out operations.Majority and strong base should not be misunderstood to be autocratic  and  dictatorial evidence.

 

Categories
Economy subscriptions thoughts

Kick Start The Economy.


Motor cycles used the mechanism of kick start. The pushing of the ratchet lever with one’s foot was a startling and tiring experience. The rider ,many a time engaged in giving several kicks before the engine started off with a roar. It was an enjoyable pastime for me, when I saw my siblings do it with ardent  fervour and defined attention. The missing trail ,sometimes accrued in tens and twenties. Then mostly on the twentyfirst stroke they hummed , then grunted , finally thundered ,as they gained momentum.

The economy which was in the lowest ebb a few months back is meandering into a modest step out. The rummaging of the archives of the past , the lessons from the previous epochs of depression, and the splashing anecdotes which punctuated the era once in twenty years , that of outsourcing revolution of 1990’s .The decade of 1960’s was one of affluence. Automobiles,chemicals, aerospace and housing worked out the prosperity of this period.The oil producing countries experienced a rapid growth in economy. Japan found its economy booming. U.K and U.S had encountered a stagflation The third world countries which adopted the green revolution made a steady progress.Corporate raiders developed new ways of taking over companies, by issuing inflated stocks and developed other schemes that led to crackdowns This was the predominance of 1980’s , when large banks crashed, because they increased  interest rates ,which led to the default of the borrowers.

1990’s was  a period of prosperity,marked by low inflation and low unemployment.The next ten years  saw a dramatic turn of events.There was a faint resemblance of recession,but not of much a distinctive promotion.

Now, the immediate decade,had a beating and the slump was so severe  that the global whirlpool has devoured the fruits of the  economy and rendered it hapless .

The alternative to outsourcing is the green house gas emission . This new technology will pave the way to a glorious epoch of progress and stabilty.

 

Categories
Economy subscriptions thoughts

Stabilising The Economy.


Economy is in the recovery path. There is a a slight turn around. There appears a cheerful outlook. There is a direction for a stability fixture.

The nuclear test  by North Korea has sent waves of  danger and signals of risk, that there seems to be a minor set back in the otherwise prospective outlook.The U.N and most nations have condemned the North Korean attempt. As the experiment by North korea is successful, the countries mainly U. S feels  little insecure. It is an acid test to Obama , who had called for destruction of nuclear weapons. It is a violation of security council says the U.N.

The 1990’s  was a period of dull gloomy paraphernalia .The economy was sinking . As the pressure  inthe propriety of finance mounted, there was a sudden uprise in the form of Information outsourcing. The export   of knowledge , the sharing of revenue, the import of jobs by the growing nations to the developed countries worked a marvel . The prosperity was in exuberance. The giver of employment and the taker of jobs were evenly happy. The exim policy was like a magical wand , though in a different spectrum. Usually , the exim policy was based on the fundamentals of  suppy of manufactured goods and  raw material  . the 1990’s perceived a transaction of  service.

The present stature calls for an acute motivational strategy, that of the regime of emission.There are three pivotal positions  in this regime.

1.Fiscal regime with quantity targetting.

2. Fiscal regime withprice targetting.

3.Monetary regime.

We have to transform the demand for money into the demand for public goods.As demand for money increases, demand forpubkic goods increases,which leads to  an enincrease in public goods.We may call this as anenvironmental automatic stabilizer.

A country adopts monetary regime of public goods, other countries have to automatically follow it up, leading  to a mitigation of international free rider problem. banks should hold emission reducers as foreign reserves.

So the next set up for the revival of economy depends on the regime of emission. We have to legalise the system of green house trading.to sustain the economy. A new avenue is on the anvil, to exploit it or to discard it ,depends on the government policies world over.

Categories
Economy subscriptions thoughts

A Breathtaking Rise.


Indian Share market had an astonishing recovery on 18/May/2009.It was not a mere jump, but a high jump which baffled Olympic winners who set new records. It is an all time wish that this high jump should also embrace the long jump . They should go hand in hand,The  high and the long should supplement and complement each other. Sustenance , should be vitalised.Nevertheless ,the escalation alone would presume a slithering showcase.  

The markets were closed ,as the entirety was dumbfounding. There was mirth and joy, thudding and thumping, revelling and rejoicing.A trader , who had stocks worth 25 lakhs, a year ago , saw them tumble  gradually to the level of ten lakhs. The ten lakh status was more or less maintained, just oscillating between  nine and eleven lakhs. On Monday , there  was a speedy spurt. It rose to 15 lakhs. The trader , who was downcast all these months , had a seducing satisfaction.

A stable government has brought this cheer. Stability, includes, steadfastness ,continuance,constancy and character of purpose.The election mandate has brought with it a sincere companion , that of stability.

This firm  exposition to disintegration is a value added product. This consistency is a predominant quality ,a precursor to economic progression. The progression will not be constrained to arithmetic enlargement  but push in a geometric extension.!8/May/2009 , marked a sign of reverse trend in the market. The almost static, a depleting market showed significant advance.It  was a  remarkable rejoinder to the  election manifestation.

The spread of gloom got dissipated giving way to a blooming evaluation.A knock of cheer and a click of gaiety , cloaked the country. 19/May/2009, dawned with an expectation of a sensitive trend. The carry on was evenly poised and equally eased. The long timers , gained momentum. The outsourcers saw a slip. The rupee also  has started its forward march, Gold ,sharpened its glittering with a marginal rise. Wedding season is on the calendar . The Indian craze for the shining yellow metal will be fine tuned.Silver is walking close with its sibling. Crude ,the  country cousin of these precious metals, is making waves..

The mid half of 2009, augurs well, with steep climb in stocks . Economy is , straightening up.Industry has to take a headway plunge into the well being. Unemployment will  in course of time diffuse like morning dew. Real estate , which perceived  a sluggish slump .will peep out  and espy greener pastures.

Looking from all directions, I am able to conclude that  franchise, or putting it rudely ,the vote of the  poor man has reinforced prosperity. The politician ,should understand the value of the rights, should deliver good to the  people ,who have voted him to power,and stop seeking personal gains.

The whole system seems to be extremely paradoxical . The methodology exhibits severe irony. The game of scapegoatism should be halted. The mobility of simple faith , blind trust and ignorant entreaties should not be misconstrued. A plain sheet of transparent governance should be the motto of the Congress led Government.

Categories
Economy subscriptions thoughts

The State Bank Of India-Vague Competency.


My alignment to the stateliest bank is so thick and firmly bound. It is something of a  ranting.,as . I indulge  in decrying the demerits of the erstwhile Imperial bank.The affliction has percolated so profoundly, that however much , I try to take this issue out of mind, it keeps on lurking , and disallows me to lie quiet.

The thought may seem to be a little odd, but I perpetuate it to safeguard potential customers to be doubly careful in their requisition for loan, and extremely cautious in tending col laterals. This Bank is a dangerous  institution , when it comes  to  mortgages.It is manned by officials ,who are inhuman, inconsiderate, and pose a falsification ,as though they are busy all through the year. A casual look at the interiors and close view of the premises during the office hours , give a most different portrayal. There is a rush in the lifts, denoting heavy traffic, with office sub staff , running up and down with beverages, and snacks. The staff loiter around , taking a few papers in their hand , pretending to be terribly busy. The higher ups are engaged in telephonic conversations , as though they are sealing the fate of the nation.All these happen in the background of gentle banter.

Their actual work amongst these pretensions look very incompetent , insufficient and not well informed. Their appraisal is filled with inadequate listings, distorted factual, Their response  is bombastic ,but bear no meaning,. Their reaction is pompous but unrelated to reality. Their conclusion is imperious , but totally detached from truth. Their averments are exclusive but exclude veracity. Their action is tardy, but  holds the neck tight. Their speech is kind , but  brings no help. They say they  go by rule, but there is no legality in their moves. They insist on codes , but they follow no such conduct. Their competency is vague, short of standard valuation.

The substandard evaluation of State bank Of India .in most cases , have driven their customers to unexpected extremes and unwanted hardships.

The greater be the  stature ,you   experiences more pain if  you tumble. If a cat slips , it gets up and leaps ahead without any injury. Imagine the plight of the elephant. Its fall is unbelievable and the injury has to be attended to with great care. So State bank of India has to reform its ways and reprimand its officials, to save itself from the plunge.

Categories
Economy subscriptions thoughts

The State Bank Of India – Connived Transparency.


Transparency in bank transactions is an high valued ethic. Any deal, whatsoever , should be governed by prescribed norms. It should undergo a thorough scrutiny . It must have a framed disclosure.It should lead to no digressions,  contain no ill conceived schemes,  consist no antithetical disbursement,  hold no prejudice ,   endeavour no underhand dealings and carry no unsolicited interpretations.

Such a constitution is an  existential  curiosity. A news clipping came out with a statistical data, that Banks in New zealand score high in the tranparent  category. They are resounding in integrity, and successful in emulating affability. The ir score is 14.

India ranks the lowest , with the score of 2. My bank , the largest in Asia , The State Bank of India,will be conferred a big zero.The attaining of Zero is a confirmed prologue,as the real value  of the bank vanishes  when it comes to the argument of transparency.

Transparency is an effective tool in tackling financial exclusion.Full disclosure identifies ,who the banks are reaching, and who are excluded.It also throws light on how the savings and resources are being invested,It provides opportunity to understand market trends and refine products  and services to serve local markets.It enables to  compare the performance  in a verifiable way, so as to  reward top performers and penalise those who fall short. 

Transparency , obviously ,is the basis of greater openness,and shared information that can facilitate,working partnership between banks and alternative lenders.Disclosures ,should include declined applications,pattern of usage, account dormancy,and should have a consistent presentation.Rendition of truth, compilation of facts should take the prerogative in the transparent disclosures.  A small business should be allotted the same  treatment as that of a large one. size  should not take the upper hand. The requirement, the necessity, the prospect of repayment should have a controlling effect. But , State bank Of India , has its own principles , stuck all through the decades,. They have  never changed, never been  modified , never altered . State bank  puts to embarrassment the real,genuine entity, but  worships the treacherous , insincere leviathans..

Its serpentine attitude  is vicious. Its foxiness is scandalous. Its bearish impudence is preposterous. Its cattish conceit is ravenous. Its elephantine resemblance is incredulous.

The conniving bureaucracy prevailing in State Bank of India , impose a demeaning, derogatory,  discomfiture.