Thought for the day
"When at last we are sure, You've been properly pilled, Then
a few paper forms, Must be properly filled. So that you and your heirs, May be
properly billed."
-
Dr. Seuss (American,1904-1991)
Word for the day
Apposite (adj)
Being of striking
appropriateness and relevance; very applicable; apt.
(Source: Dictionary.com)
Teaser for the day
XYZ Channel
Breaking News: Our latest survey - Will President Obama's rally at Rajpath on 26th January help BJP in Delhi Election?
Breaking News: Our latest survey - Will President Obama's rally at Rajpath on 26th January help BJP in Delhi Election?
Yes
- 55.4%
No
- 28.2%
Can't
say - 16.4%
5km in 2hrs
To all those who were afraid of global liquidity tightening post
conclusion of US Federal Reserve's (Fed) bond buying program (QE-3) last
quarter, I have been assuring that in the new world economic order QE
is a matter of fact and it is not going away anytime sooner.
Last week, ECB chief Mario Draghi promised to infuse more
liquidity in the global economic system during 2015-16 than what the Fed had
withdrawn during 2014.
It is for more enlightened minds to debate:
(a) How much the
sense of economic well being currently prevalent in the USA has to do with
various QE programs of Fed, especially in light of the results to the contrary
in Europe and Japan?
(b) Whether the
malice in European economy has the same characteristics as the malice in US
economy which Fed tried to cure through QE?
(c) Whether the
objective of ECB's QE program, viz., achieving close to but not more than 2%
inflation could still be achieved if China continues to decelerate and Japan
accelerates the export of deflation and emerging markets are crushed by the war
of currencies?
(d) Gold has gained
22% in EUR terms and 18% in CAD terms YTD; So have silver, CHF (Swiss Franc),
US, Japanese and German bonds. To an ordinary person like me, Europe looks like
following into the same endless pit as Japan did few decades ago. How QE will
make it different?
Back home, I heard FM promising to the global investing
community at Davos, some big bang announcements in Union Budget for FY16. The
public utterances of various government functionaries indicate that the
incumbent administration is keen to return to 8% growth path quickly. This is
really a noble endeavor and all should support it, even if it means suffering
some disadvantages (e.g., higher tax) ad interim.
The newly formed NITI Ayog (Policy Commission), will however
have lot to worry about the repercussions of higher growth. Consistent 8%
economic growth will mean that our economy will double in 9years. A great and
inspiring thought!
But imagine, double the number of houses, cars, motorcycles,
schools, hospitals, teachers, doctors, rail & air travelers; double the
consumption of water, electricity, coal, petrol, copper, aluminum, zinc,
vegetable, fruits, cotton, etc.; and double the garbage and carbon emission in
just 9years.
Sitting in front of my TV and watching the special Republic Day
Parade, I think, we are not ready. Anyone who has ventured out on Delhi roads
in past one week, would agree that just 5year period of 8%+ growth has badly
stressed the infrastructure we built over five decades.
So rather than focusing on Big Bang, let's do small things that
make life comfortable for the citizenry and side by side build infrastructure
for next phase of high growth.
No comments:
Post a Comment