INFLATION

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INFLATION …. Its most Happening and Heard word today across the world

The irony is those people on TV with TIE and Coat preaching to us and seeming so concerned about us are the People who put us in this mess.

The interesting point is that they are not worried about ordinary people; they were never worried since the start of civilization; those so learned economists and industrialists are concerned about themselves.

They know Inflation brings a slowing of the economy, a demand reduction, and a reduction in a sale; then what will happen to their Y-O-Y data on CNBC.

The latest Inflation number ranges from

  • JAPAN….1.2%
  • VENEZUELA…..222%
  • INDIA…..7%
  • US…….8.3%
  • CHINA …2.1%

All the above numbers are positive, which is harmful to ordinary people

In ordinary person terms, the price of everything will increase every year

One thing from the above stats I do not understand is if the price for everything rises every year, how it’s good for Economy

One thing I am very sure about word ECONOMY

In Good Economy, there is year on year(Y-O-Y) increase in production, sale, profit and Taxes in a country.

If everything keeps increasing economy seems to be doing well

Fact is with increasing of economy we are not considering increasing of debts on, industries, consumers, state and central government and on country

Since the last couple of years following things have been happening and are not being considered

  • Loans to countries are increasing
  • More and more governments are defaulting loans or rescheduling it
  • Loan to people across the world under personal loan has increased substantially
  • The credit rating of companies across the globe has decreased; the total number of companies with the highest credit rating has reduced to half in the last 10 yrs

The whole world is in massive debt; this debit is not due to COVID or UKRAINE WAR ….it has been steadily increasing every year

This world has a long past period of optimal state

I do not understand how come a country like India, whose less than 5% population is income tax asses, Less than 3% is income tax payee

Can buy

2 million cars per year (two million cars need a parking space equivalent to Delhi)

20 million two-wheelers

which increases the demand for Gasoline every year by at least 5-6% irrespective of price, and we import 80% of our fuel

1.7 million AC/month with 5kw power /AC, See the amount of energy demand increase every year in an energy-dependent country

Then comes the exciting part

 We subside Petrol and supply free power to gain votes; this popularism/subsides/freebies induced demand works like a boomerang.

We should look at what’s happening in Pakistan; SRILANKA…wait for a few years. Then, what happened in Sri Lanka will occur in Indian states.

How we can correct this in the Next 10-15 yrs if we start working now

We have a very, very large population which has no financial support

Every industry work on CTC (cost to company) method before hiring anybody

Every family should look for the cost to the family before reproducing

To raise a child for 20-25 yrs is quite costly

Many countries, including china, japan, and Europe, understood this issue

Their population is decreasing

A few Asian and African countries are not understanding what a blunder we are making by reproducing without calculating financial implications.

We need to understand the cash flow and the cost of giving births

It’s not a fundamental right; read the Constitution of India

No, where it’s written, ” You have the right to give birth, and the Government has a duty to raise your kids.”

If you have rights, then it’s your duty.

This world is highly overpopulated, considering to natural resources we are left with

Natural resources are depleting, so the cost of natural resources is increasing.

The only Natural resource whose price is not increasing today is ” Air we breathe.”

The day is not far when we will have cost for the air we breathe, maybe not directly, but we would pay indirectly with an increase in airborne disease.

Covid was/is an airborne disease that crippled everything and brought many people and countries to the begging bowl.

Imagine if we 3-to 4 more waves of mutant covid or any new communicable disease.

We would be in deep trouble.

Maybe we are not seeing it today, but it’s bound to happen someday tomorrow.

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