FINANCIAL CRASH,A NATURAL DISASTER: MY THEORY

FINANCIAL CRASH,A NATURAL DISASTER:  MY THEORY

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Too high inflation & financial crashes are natural disasters.

Financial crash is such that none can escape it, only one can avoid it by getting out of its way or ducking it or bearing some losses(as minimum as possible), saving a little or saving oneself only.

So the more little you carry or the smaller you have, the handier things you have, the better you are. This is the Theory of Crash Survival. It is effective for also in financial crash & too high inflation survival.

In natural disasters like storm, flood, quake- Money (card too is your money, but there is always doubt about its paying capacity after a crash) is the best as light to carry.

 But (Mind the bend starts here), in financial crash & inflation it is first thing that is hit, that is most affected, so it must be dumped first, surely as much as you can & change it into suitable materials, depending upon situation & one’s suitability.

As even if inflation slows down in three to four years or the financial crash is over in five to six years, one’s present value of money will never come back.

So MONEY is the last thing to hold (saving are money too don’t forget, investments are not, but very risk prone, so depends on judgment & analysis), in financial crisis & high inflation.

One can put forward an argument in US financial crisis, should one hold houses with prices were falling drastically two or three year ago, by not selling them off, turning them into money? Yes, one must hold, if one did not exit out before the crisis, as if one were God, knew the crisis coming, as turning them into money, in the crash will be calling for further trouble, like jumping into an unfathomable gorge in fear.

Subhro Das

Conceptualized 10/09/10, Written 25/07/11

(Mind it I have written various theories & concepts & I write in only a few words, don’t take books to elaborate, it is for your information)

RUNNING ECONOMY BY MONEY PRINTING

RUNNING ECONOMY BY MONEY PRINTING

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India Govt is running its economy by printing money, it’s a very dangerous trend, as HT Reports that RBI to print (already started the job) 18 THOUSANDS TONs of notes, also cautioned it is a very very large amount by any standard, be that US Dollar, EU Euro or China Yuan.

Infusion of such huge amounts in the economy will be very disastrous, the inflation, the price rise, especially the FOOD PRICE RISE will break every body’s back & send the economy in swirl, the Govt is forcing the RBI to be on this money printing spree just to squander away the money in HIGHLY POPULIST but UNPRODUCTIVE programmes, if this POLICY brings this country to its knees, then this SONIA Congress Govt will be fully responsible. Only stopgap measures of raising INTEREST RATES by RBI too frequently are no SOLUTION at all.

EU Nations are facing similar uncontrollable disasters, Greece, Portugal, Ireland, Spain, one nation after another in black hole, EU is pressing hard on them to reign dangerous budget deficits & implement VERY TOUGH Austerity Measures, even no takers of their Govt Debt Funds i.e. bonds of these countries (as Govt debts too, is so high), EU, IMF are arranging for their bail outs, sitting frequently.

Is India will get such back up as EU nations or go Mexico & Zimbabwe way, if India remains this reckless who will provide us back up ?

Now, about China, IB Apr’10, China’s Overheating: consumer prices rising, giving the massive money supply, danger is, that inflation may go out of hand.

Chinese Govt admitted, inflation posed a threat to social stability (Please mind the sentence). Govt has taken measures like raise reserve, check on money supply, control on lending, increase down payment for loans(margin money), lending to endpoint(no direct money to borrowers, but input suppliers & builders).    

 : Subhro Das