Dirty Economics

The word dirty is commonly used for nasty and the nasty game that has been played by the Governments and the corporate houses our economic life is getting dirty day by day.

DNA of Selfishness

It has been ages since we started bartering (Refer DNA of Selfishness) but it wasn't enough for those who found a more easy way "BORROWING" and look where we have come. I am referring to the recent Domino effect that is cause by USA "The ONE" due to heavy debt that it owes to many countries and sister IMF and shamelessly raising the ceiling when it should have floored its Military spending years back. But nonetheless who has pointed finger at the GOD in public. I was reading an article on how Greece’s economy is turning into a mythology after trying the same within a year. Paul Ryan rightly says that "Borrowing and spending is not the way to prosperity". Rightly so, how can a country keep on borrowing the money and with the GDP growth that they have still finds themselves in the debt this implicates their excess spending and I am also not astonished to see IMF second their deeds now and then. There is a wise quote by George Bernard Shaw that “A government that robs Peter to pay Paul can always depend on the support of Paul”.

The story about mother visiting his son

I had a great impact on a story I came across during my schooldays in which a mother fills with pride to see her son afford a house, car, TV and maintains a lifestyle that she always dreamt of during her visit in summer. She is shocked to see in the next visit her son's condition turned upside down and finds out that it was all due to his incapability to pay back the loan he had owed to banks. This story still holds good to not only the people but also the countries. Today, even the newborn kids find themselves in debt for no good reason due to heavy borrowing by the countries to keep up with the word “development”.

If you dig deep into the market you would find that not only has the credit cards but also the banks played a role in distorting the balanced economy that it was and people unknowingly started affording the lifestyle they never had and found themselves on roads after their house of wax catches fire.

What can change and what not

With the way economy is going, I think the only way to maintain a balance is to limit our spending and clearly differentiate between our needs and desire. If we; at our level, can realize the importance of this truth our child will not face a crippled economy around the globe. If you have noticed that even after raising the interest rates so many times RBI finds it difficult to control inflation due to their inability to curb the companies from distributing Credit cards and consumers from using them. Surely, the liquidity has been arrested but not the spending for there are methods devised in the system to overcome the hurdle of money.

Nostradamus

The seer in one of his quatrain predicted that gold and silver would start rising and the scrip and the bond will be wiped out. And with the way we are moving I don’t see in this predication going wrong as Gold and Silver hold a material value and is limited in the nature unlike the paper currency or bonds that have been ever increasing every time they start losing their value. So at time when even 10p was enough 10k isn’t.

Well we all know that it has always been about knowing our limit and work accordingly. I would only like to say that knowing the need is the purest approach we can have. If we rely on borrowing it will always come back and haunt us sooner or later. So closing my blog with what Einstein once said "Two things are infinite: the universe and human stupidity; and I'm not sure about the universe". Let’s wait and watch.

Amen