Tag: Economy

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Safe Lucrative Investment


The economy is in spate .It is going in high speed. It is unpredictable. The fluctuations are excessive. The oscillations are vibrant.The investor is intrigued.

Can he invest in stocks?He can , provided his heart is made of sterner stuff.

Can he buy properties?He can ,provided he can withstand myocardial infraction..

Can he buy commodities ?He can,provided he can tolerate high blood pressure.

Can he keep his money in deposits?He can, provided  he can endure diabetic syndrome.

Can he keep his money at home?He can , provided  he  can live with skin problems

The economy is keeping us in a state of high risk. A small turn around receives a rousing reception. A little off track abandons faith. A petty up and trivial down sets the ball in motion. The mind quivers. The heart palpitates. The body shudders. On the whole , the danger is unpredictable-danger to the individual, as he is exposed to high risks, danger to the economy , as it is suffocated by the hue and cry.

I am at a loss to settle in for a safe lucrative investment, with little money I have.

 

 

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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 But ,such a straight forward scripture is an outdated  ,obsolete unrealistic ideal.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.

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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 . 

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Coming Out Of The Blue.


A year of recession is slowly drawing to a close.The much talked about depression is coming to a  halt. The employment sector is the only one that is still  turning nightmarish trends. Hope it should resolve quickly to make the economy  translated into a vibrant force .

The look up should be sustained with great gusto. A soft , steadied direction should lead us into a scenario of cheer and fortitude.

Oil ,which rose remarkably in the early 2008 , had a tumultuous fall in the late 2008 and early 2009 , is getting out of the suppressed oblivion . It is now being quoted as 70$. Gold and silver are ranging high . The stocks have spiralled up . The industrial output  has made a marginal rise of 2%.The real estate which is little back , is treading  in measured steps . It appears , that it will also turn rosy.

The Information sector is idling , so is the outsourcing industry. The recession in this field  is marked . It has to resume a figure of confidence and mettle ,so as to enamour its customers. This particular sphere has been over exposed, Money has flowed into the field as a mighty river assuming the role of a torrential flow. The wisdom and prudence have been overshadowed  by the inclination to work for others, where money claims authority and  excellence. The servitude has led to an abject obsession , that the animated replicas, and blind imitation has forsaken the analytical kinship and meticulous planning. The financial attraction has shrouded the inherited talent , that in a few years the monetary comfort would deprive the nonchalant intelligence . Money can buy everything , but not the lively brains. It has numbed the mental faculty and shut the inquisitiveness of the mind, which is a dangerous risk.

As the melt down is geting solidified , as the depression  which has liberally loosened  a fireceful  mentality  is now paving the way to progression, as the economic snail ‘s pace is hastening toward a  tortoise’s acceleration , as the sadness is fumbling, and as the rejuvenation  is settling in , a harbinger of grace and blessing makes a gala entry  , though in moderate terms.The significance of this augumented gaiety is sure to make inroads into the embellished ethical formation.

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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.

 

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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.

 

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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.

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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.

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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.

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Wage Cut


The economy is re bouncing. Dow jumps. The soaring of share in dices is spectacular. The recession is slowly fading.  These sentiments send signals of happiness. There is a  spread of warmth and submissive look up.

The other side of the coin presents a grim, glum   efficacy. There is a predominant wage reduction in all segments ,and in all countries over the world. Wage cut does not impress a robust economy. When the going is good , there will not be any thought to scale down the pay. As  the administration envisages a shrink in its profit, it tightens its purse. Employees , do not shift jobs or retort against the down scaling ,for fear of not finding a suitable opportunity. This again  tells us about  the weak economy.

The slimmer pay packets bring wih them another baggage of woe. The mortgage  crisis falls heavily on the shoulders.Less pay indicates difficulty to pay  interest, which at  anyday will not go down.  Saving becomes a remote possibility ,as there is cut in wages.. Spending also loses its glamour , as there is no or less money in hand.. The chain of vicious sequences, right from wage cut, mortagage , saving , spending , illustrate the regiment we are in.  

The economy will be levelled before this year is out. This is the prevelant hope .But the thorn in the bush is the rising unemployment. Stabilising the economy is a welcome step indeed. But ,creating jobs , is most imminent , to resurrect  the dangling economy. If this not given acute attention, then there is all pssibility of the economy taking a reverse course.

Nations should direct their steps to stimulate the economy, by augmenting jobs, by diffusing stagnation and arresting deflation.