Saturday, February 22, 2014

In this country everything happens in the name of the poor

          Lot has been undone during these decades of total disregard shown by many elected representatives to the edifice that stands as a symbol of our democracy, Parliament and state assemblies which were once revered as the sanctum sanctorum of the ideals that gave strength to our democracy is now being just seen as a place tainted by the vile spewed by the unworthy uncouth abominable's who lack sincerity and respect to the office they have been voted into by the people of this country. Often state assemblies have been turned into venues for Chappal throwing matches and shouting matches even while there are millions out there who go to sleep hungry everyday with the hope that someone in the government will change things for them tomorrow, and one got to see the very same scenes in the parliament today, how did it all come down to this ?, How ?, Sometime back I read an article about India having half of worlds modern slaves, 67 years !, even after 67 years. This is the most shameful thing that can ever happen to this country, it either means Indians don't have a clue as to what they need to do to make their lives as well as others around them better or its just that they are some grungy creatures capable of exuding only one human emotion which is that of "selfishness". Such a shame, every politician who is as old as someone like Lalu Prasad Yadav who when they started their political careers made certain promises to the people of this country to win their trust and these very people even after being in politics for more than 40 years are making the same promises even today to win votes, these are the venal vermin's this country has to do away with. 
                        Democracy would become meaningless when a mob is allowed to have its way whether its inside the parliament or outside it and one got to see pretty much the same happening today- democracy becoming meaningless, its a shame that we call ourselves a democracy, its a shame that this is the State in which our country is even after 67 years of independence, shame on all the political parties who keep aiding such unruly elements who hold democracy to ransom with impunity even inside the parliament, Shame on all the political parties who have ruled this country and have still left the conditions in this country to degrade according to the will of the people who are acting against the interest of this entire nation, this nasty habit of politicians to use region and religion to further their interests has been causing havoc in the lives of ordinary people, In the recent past there has been a huge exodus of people from North into other Indian states which the Indian government has failed to take notice of, its really sad that people have to leave their home state to be able to survive, this is not the kind of right to dignity our constitution promised to each and every citizen of this country. All is being done to create a new state in the name of the downtrodden, downtrodden ! one finds it illuding that in this country everything happens in the name of the poor but still its the poor who suffer the most, Its the poor who get recruited as terrorists and its the poor who get blown up by them, its the poor who are easy targets for marketers of religion and its the poor who die in any communal violence, its the poor who sweat it out in the watch towers in the border making sure that we all remain safe and its the poor who die in the open during heavy rains, during extreme winter, during extreme summer, its the poor children who get wooed to the schools by the promises made to them about a good meal and its the poor children who die in hoards once the election objectives have been achieved, everything in this country happens in the name of the poor, political parties win elections in the name of the poor, billions get siphoned in the name of poor and even after these many years if this is the condition this country is in one can only feel ashamed of the Apathy that brews all around.
                                So this system which penalizes people who are asking for a more honest deliverance of rights to which they are entitled to like better standard of living, better education, better hospitals, probity in the functioning of the government and provides incentive's to be corrupt has to go. This change will happen and no one can stop it from happening in a country whose median age is 27. If a few lakh ardent nationalists could make the British empire to squirm and make them leave India, its obvious what crores of young Minds who are constantly in touch with each other who don't want their politician to be some rabble rouser who knows only to throw chappal's in the assembly, or someone who only knows to swindle a 1000 crore every time he gets a chance. Politicians in India should realize that people in this country have recognized what they deserve, they know that they deserve much better than what they are being asked to subject themselves to. So Lalus and Rajas and Yadavs of this country pack your bags and be ready to face the wrath of this young nation which wont settle for anything less than what it deserves and it knows what it deserves and will get it no matter what. Its time for the common man to take up the mantle.

Wednesday, January 15, 2014

AAPanomics is it that contentious ?

                        Recently i have been getting to read too much of emphatic cavilings, remonstrates reeking with malice in lieu of  political thuggery over the recent Delhi governments decision to do away with FDI in retail, there are voices of descent from the industry says a prominent newspaper, there are apprehensions about this setting up a wrong precedent which will drive away foreign investments so says the party which was the reason behind such a situation to become a possibility. The foreign minister of this country who has always held a personal grudge against the year old party which is heading the Delhi government has spewed venom saying that its a party made up of third rate people who harbor Jurassic ideas, could it get anymore obvious than this, where were these opinionated people when 9 other states rejected this FDI proposal while it was presented to them by the government at the center. The real purpose behind the functioning of any democracy should be to throw up governments which would abide by our constitution which stands as the guiding principles for such governments to function in their full capacity in the interest of the people, corporate ideologies and their goals shouldn't take up the role of those guiding principles in establishing a form of governance which might in the long run end up being detrimental to the very foundations on which this country was built. Divers views and news's apart if one were to wield ones knowledge of economics into understanding the things as they have been presented it would become obvious that there seems to be a  wrong understanding in general about the relationship that exist between job creation and investment, & capital expenditure. Investments dont generate jobs as such, which is what an unassuming corporate psychoanalysts would want the general perception to be, but the fact remains that its not the people who invest create jobs but its the people who consume.              
  
                                       Addressing the concerns of the people who think that they have all the understanding of the free market economics just because they have read Adam smith and have become aware of his invisible hand theory is not the intention of this write up, nor its intentions are to make people realize how off the mark they go whenever they try to argue that there is a  direct relationship between investments and industrial progress which leads to job creation, which they always try to corroborate with  the workings of Capital expenditure which allows businesses to spend money either to buy fixed assets or to add value to the existing asset's which infuses usefulness in them extending beyond the taxable year to accrue future benefits by creating demand in future, adding to it their belief that an increase in the consumption can be created only through aggressive marketing. This write up is just an attempt to reach out to people who are wanting of a better understanding of what and how things should be after having realized how interconnected the businesses are in today's globalized world, how labor markets specific to a geographic location are free to serve the businesses located half the world across. So to start with capital expenditure the capital expended on creating more value over the existing assets doesn't happen unless and until there is a scope to enhance the output of product to out run the costs resulting in dividends after a period of time and that happens only to accommodate the consumption that is to happen in the future, though advertising plays a very important role in general which normally enhances the consumption it plays different roles in different economic setups at different levels, In a mature economy Advertising mostly plays the role of a whip which helps to drive down the competition as there is a limit to the amount of consumption that can happen in an economy or for that matter any economy so to speak, which is due to the constrains as set up by various other elements, if we were to discuss about those constraints this write up would take up more space than i would like it to. Its imperative to understand that our fiscal and monetary policies should be aimed at striking a balance which allows capital expenditure to increase vis-a-vis savings rate, that should be our real goal, that would take care of all the problems one would list out arising out of falling consumption owing to the fall in real wages, FDI in retail would drive down wages even further in the retail sector to keep up with the competition, no doubt consumers will get to gain but there are other ways to do that, its not necessary that we need FDI in retail to enhance the efficiency in the delivery system, such measures as such are only prosthetic in nature which in the long run would become detrimental to our economy .... 

Wednesday, November 27, 2013

All Along

All along
one is oblivious to the time
one is oblivious to the changes
it brings,
in course with the maneuverings of unconcern
one would like to think,
but all of a sudden the tears that flow
in shock of being in presents proximity
doesn't do justice
to the real in its eternity,
people do leave behind their marks
people do leave behind their memories
people do leave behind what they have said
and people do say more when they are no more,
yes, people do say more even when they are no more
albeit through others,
they do say what that matters
albeit through others,
they do say things that are not theirs
albeit through others,
they do tell you life is just not redundant
just as they lie lifeless
albeit through others,
a thing of concern that pricks you
as it should
and makes you wish for it to stay
with you all along if it could.

Tuesday, October 1, 2013

US government shutsdown

I was just waiting to see if the United states of America would go the Keynes way AGAIN !, The country may be heading towards a situation where in the old-age dependency ratio will have to translate into growth in the Tax burdens in the near future owing to the rate at which its population is ageing coupled with falling fertility but that doesn't substantiate anything for us to be sure if the move by the republicans to curtail peoples right to have a better healthcare is the better way to make things better, but all those debt, someone has got to pay that debt someday and many from the rest of the world wouldn't want to be those people in the future who might have to lose their pensions to the false promises made by the US of paying them back handsomely, Chinese have been subsidizing the cost of living of millions of Americans for some time now, and most other Asian countries including India have been subsidizing their cost of living by consuming their produce at a higher cost and providing them services at the cheapest cost possible. As for this move to shutdown the functioning of the government I feel that it just shows some kind of prudence on their part for not placating themselves to be worthy enough to gobble up more debt Again, but this also raises many uneasy questions as well because this is happening just after the 2008 melt down and people are not sure if the world is out of it yet, and what would happen to those core industries which are drivers of the world economy which for sometime have been surviving on the improbable notion that growth will happen some how even if it means at the cost of cheap money.
                    The markets around the world have been under the impression that some kind of last minute deal would be struck between democrats and republicans which would stall things being pushed to the extreme, most of the markets dint have enough time to factor in this new development, Shanghai's composite index, Japan's nikkie , hong kongs Hang seng closed now and dint have enough time to react, things would be grim tomorrow as these markets open, once this new development has been factored in by the Asian markets the movement of the indices upwards would definitely mean that dollar might weaken even more against the Asian currencies including rupee. As of now its imperative to note that an economy which always has its eyes on prudence will take sufficient measures to avoid such an inconvenient situation not the other way around like getting itself into such a situation and trying to peddle through it, With all due respect to some analysts who seem to be suggesting that this is some kind of daily occurrence which doesn't require our scrutiny, I have this to say it is this attitude that gave too much power to credit default swaps to wreck the entire US housing market which led to the subprime crisis and to all the subsequent events that followed the Lehman brothers collapse, placing ones trust on the ability of the US economy to adapt is one thing but that shouldn't be too blind enough to discount the conditions which has prompted such an event to occur, US economy is reeling under a huge pressure which is prompting it to enforce such measure's, if this debate between the republicans and democrats continue leave alone they deciding to raise the debt ceiling it will lead to huge uncertainties because raising the debt ceiling doesn't mean it gives enough room for the government to borrow more money to spend on things to keep the economy going but it only allows the US government to payback the money it has already borrowed, the markets know this and they will react accordingly.

Thursday, September 19, 2013

Disconnect

                       I think this movie has come so close to defining the time we all live in, I may be wrong the movie might have done much more than getting closer to defining the time we all live in, it might have done just that - defining the time we live in. The movie explores our inabilities to be relevant to our times in the way we understand it or the way we try to understand it and scares even the little bit naiveté out of our already cynical individual selves. It starts with not so much of a comment but with glimpse's into one of the stark realities that has come to be associated with the word "Staying connected", a reality which is a world unto itself existing in response to the world that has changed the way it communicates with itself and the world that doesn't mind shedding its inhibitions in front of a 10 inch screen which implodes into a domicile of a different kind that's built up of bits and not pieces but gigabytes where nothing is spurned in answer to a 16 digit number on a plastic card. 
                      A teen can exist in that world wanting to be rewarded for playing along satiating with carnality the eyes staring at the 10 inch screen from the other side desire's, a teen who finds it impossible to give expression to his thoughts in the way expected of him in the world he exists finds it easier to show how vulnerable he is in front of that 10 inch screen, an unassuming women leading an insular existence along with her reclusive war veteran husband finds an outlet to her grief through that 10 inch screen only to confront a much starker reality of the other world, its the world that allows people now to use the words " I am online" in a context that defines everything around us even the medium that has dominated our living rooms for over 8 decades- television, what is television today if not redundant in a world that stay's connected constantly. The movie disparages what television has turned out to be through a character, a woman TV reporter, who sets out to expose one of the dark realities of the online world but gets caught up in her own guilt after coming face to face with the reality of her own existence besmirched by the vile as inveigled by the screen on which she loves to see her face projected every day for millions to see.
                      Through these characters the movie raises many pertinent question's as to how the things that makes us human our ability to trust, our inabilities which allows us to be vulnerable, our innocence that has very little use in the real world will be shaped into in the future to which we all are chained to through the links of time, The movie is a stunning depiction of the insecurities and confusions one has to confront in the time we all live in, which makes us more gullible than we ever were, more in need of rectitude than we ever needed, desperate to be close to each other than we ever wanted to be. I don't know if I should call this movie a great one but it surely is one of the best movie's of our time and definitely deserves a watch.

Tuesday, August 27, 2013

And the Rupee touches a new low - Again !

   As the rupee hit 66.06 the Sensex plunged 600 points to end at 590 by the end of the day, this my dear fellow countrymen is called carnage, this is total carnage, every other day whatever small gains the Sensex makes is swallowed by the huge plunges it takes, whatever the government and RBI together have been doing for the past two months or so to instill a certain sense into everything that affects the macroeconomic conditions has had no effect at all, why?, because this government is hell bent on pushing things to the extreme just to carve out a minute chance to secure a third term at a huge cost. What was the need to introduce Food security bill at this point of time when there is too much of negative sentiment and little faith in the fundamentals of our economy, and even after being aware that this is going to add an additional pressure of 40,000 crores on our already stretched up finance's the government chose to pin its hopes on its gut feeling rather than on reams of economic and statistical data which are crying out loud for prudent economic measures, it is this very exact fiscal imprudence resulting out of political compulsions free markets hate to entertain, the rupee has lost around 20 % of its value since the beginning of this year, the last time the rupee saw such a plunge in its value in a year was in 1991 and 1998 during the Asian economic crisis.
                               Its good to take risks to create wealth, to create assets but not to spend that's exactly this government has done, it has pinned it's hopes on generating more revenue in the future by parting with the stakes it has in the PSU's, but for that to happen the market condition's have to be favorable for the valuations of these PSU's to be inviting enough so as to be able to broker equity purchases of these PSU's in the primary and secondary markets, and that can happen only when India clocks the exact GDP figure the government has projected for this fiscal year and other indictor's of economic health are in green. The government has pinned its hopes on the future revenue it should be able to generate to be able to spend now if this is not fiscal imprudence nothing is, and adding to that the price of the crude oil the single commodity which has been pushing our CAD figures to dismal is lurking at risky levels in terms of the effect it could have on our already spiraling import bills, The Brent crude oil price is hovering at around 110 $ and with the political conditions in Syria getting worse and the US wanting to put its foot forward to instill some or more (in)sanity into that region things are heading towards worse, I just hope that in months from now I don't end up being that person who get's to say "see dint I say this was coming !"

Sunday, August 18, 2013

A slip of 769.41 Sensex points is no coincidence

             Mr.Chidambaram even when you masquerader ad hoc measures as sufficient policy changes required to deliver the needed results market's know what really is happening, a slip of 769.41 Sensex points might be a little over exaggerated but it dint happen without a reason so is the rupee touching new low every other day, market is not your voting pool which can be wooed with a few promises, when the business sentiment seems like is not going to be good anytime soon how do you expect markets to trust in the future that you talk about, add to that you have blatantly denied the basic right the decree of free market economics promises to each businesses "an economy that would be governed by the laws of markets free will", How could you even think about curbing the interests of businesses to make investments abroad. The big bang FDI reform that your government so raved about has not had many takers, and a few who are willing don't see it as enough and are bargaining for more knowing well that we are messed up big time.
              Things have been falling apart for a very long time, the balance of payment issue has been getting bigger each quarter since mid 2011 and here you are bending backwards to undo things in a jiffy, things which have been in the making for a pretty long time cannot be undone overnight Mr. Finance Minister you should know better.  Mr. Finance Minister people with their hard earned money are going to buy gold no matter what, even when you ask them to not to do so, even when you increase the excise duty on gold imports markets will find ways to bring in gold to make sense to people who don't believe in the magic tricks promised by finance ministers even though they happen to be renowned economists. You should make people invest their savings into government issued debt bonds by making it more attractive, offer tax deduction on the capital gains on newly developed real estate properties using gold assets, offer tax deductions on properties purchased using gold, and here you are Issuing quasi-sovereign bonds what has come over you ?, Capitalizing on the abilities of the state run corporations with deep pockets to pile up under recoveries to pull in a few dollars into the market!, you could do better Mr. Finance Minister. The investment climate with in the country has been fledging for sometime now, capital expenditure has come down drastically in the last few quarters and the PMI figures have been dismal as well and here you are trying your best to garner trust from the outside, have you worked out the cost this debt will incur while it needs to be serviced when it is due, what if the economy hasn't turned around by then. Subsequent governments have made this country dependent on our services sector to show good GDP figures. India's 56 percent of its GDP share comes from its services sector of which nearly 17 percent alone is the cost incurred due  to the services provided by the government, and this is a strange and amazing feet in itself, this is something that should be the case with the post industrialized economy and here we are emulating a post industrialized economy even while we have nearly 23 percent of the population below the poverty line and as many people who are unemployable because of poor skill's.
                                   Why don't you stick to the basics Mr. Finance minister address the real issues, you should take measures to replace products that are being imported with the local substitutes, Mr. Finance Minister I would like to ask you a straight forward question why on earth are we importing coal while we have so much of untapped coal reserves, why hasn't your government been able to take enough steps to open up those reserves by taking the sentiments of the people who reside near those coal reserves into consideration and compensating them fairly, why is the entire process around allocating coal mines is so murky, address those issues Mr.Chidambaram. Why are we heavily dependent on other countries for our electronic goods needs?, we are over a billion plus country and its a shame that we have allowed other countries to cater to our durable goods needs. We need efficient data gathering mechanism to gauge the output of our perishable food items like vegetables and non perishable food items on weekly basis which takes into all kinds of probabilities into account and arrives at future projections of our food produce to minimize undue speculation which from time to time has been skewing the market prices resulting in inflation, government has to come up with proper mechanism to channel the skilled work force without work to find jobs in foreign land aiming to increase our remittances. Better take measures to kick start our sagging manufacturing sector, recently I happened to see the ground reality of one of your flagship program's MGNREGA guaranteeing rural employment to people in the villages for at least 100 days in a year, I was shown a work an outcome of NREGA  I was told, I was informed that the people in that village had made that lake but the thing is it dint have any water in it, it was a shabbily made big hole which wouldn't hold water even if it rained more than in cherrapunji, with such blatant disregard for Tax payers money and such gross mismanagement some people in your party are betting on Food security bill and are still carrying hopes of a thumping mandate for a third term, its never going to happen Mr. Finance Minister , if there is anything one can be certain of it is this Mr. Chidambaram your party is going to lose this election so badly that it wouldn't have the face to call it's laurels of the past to its rescue.