Mahant!

I have given some concepts of economic term in previous Parts. Now I will try to put together, a story of the where we are in present situation. We will begin our story from the beginning of the last century. One significant event in the beginning of the twentieth century was the World War I. And the war is the serious consumer of money. It sucks in money from all corners. It puts so much of money into the economy that it prospers, even after the war is over. This global/country prosperity has always taken place when the wars have been waged. And they have been great tools for Bankers to earn significant sums of profits. World War I began in 1914. So, how can the country finance its military adventures? Simple, print the money. There is nothing more easy in the world than printing your own money and buy whatever that would be required. Rich Man did that. [But, you know the price he paid.] Most of the Europe was engaged in bloody war. To finance this all the countries involved, be it Ge...

yjssSo, has the time come for such a situation as yet. No. Not at all. But we are getting there somewhat closer every passing month. It could be years before we see some bad situations or we may never even see them in our life times at all. Hopefully so. But does that mean we can party hard and forget the hangover? That would not be prudent. One of the smartest investor explains the risk management like this. Suppose you have to cross a street every day. Intially, you check out if there are any vehicles approaching, and carefully cross the street. And everytime you find that there are no vehicles approaching, so does that mean the next time you are crossing the street you need not be careful. 'That' crossing perhaps could end up being the last crossing. So let the party continue, enjoy, just be aware what you have to do, when the party is over. What should we do? Here I would not like to make any suggestions, for no matter, I am still do not know enough to suggest that. There a...

The scenario that is being described here, has happened many times in past world history. It is nothing new. It is a possibility. Understanding it is important. Because it is painful. To talk from an economist point of view always sounds like a robot talking, so inhuman. But to understand some concepts we have to take non-partial look. I am sorry I have to do this. I have to stop the story, and take a big tour. We will first try to understand some concepts we have discussed, and then come back to our story. I hope you find the journey interesting. What is Money? What is that we understand by the term money? Do you think the notes you carry around in your pockets is money? Do you think the zeros you have in your bank is money? So so wrong. They are not money. They are just "currency". They are simple "papers". And if you are using the 'plastic money', then you only have the notion of money. It is ridiculous to think that we slog 24 hours a day, so that at the...

In this part let us take the negative possibilities, if Rich Man's friends and investors are not able to help him out. One way of trying to help the Rich Man is for his loyal friends to buy up all the Promissory notes issued by the Rich Man, thereby increasing the credibility of the Rich Man's Notes, and supporting their own wealth, in exchange of some concessions and security conditions from Rich Man. In effect, the Merchants would have successfully "colonized" the Rich Man, or bought large pieces of land and revenue. Rich Man, anyway you look at it, has to pay. There are many possibilities, of how things can go out of control. Some are here. If the Merchants decide to encash their Promissory notes, Rich Man will loose all its richness. Because, as pointed out, there is not enough gold in the entire village. This is because of Inflation. Rich Man may have to sell off many assets to repay the creditors. This would be a disastrous consequence. It seems unlikely any cou...

We will take the possibilities and their impact in different sections, so that we can clearly segregate the scenarios. Let us, in this Part see what will happen if the Rich Man's friends are successfully able to bring out a transformation and help Rich Man out of the situation. All the Merchants who have traded with the Rich Man are trapped. They cannot sell and convert the Promissory notes into the gold because there is not enough gold in the whole village!!! [We will see how this happened later on] The value of the Notes in the eyes of the Merchant community is falling rapidly, and with it the total net worth of the Merchants to whom the Rich Man owes large sums of gold. One of the ways of helping out the Rich Man is to continue selling to the Rich Man in exchange of Promissory notes, until the Rich Man's consumption equals or is lesser than production. In other words, the Rich Man has to maintain a position wherein his production exceeds his consumption. This is a tough and ...

We will continue our story of Rich Man and the Merchant. Since now you know who they are, please do not confine your self to thinking about the two characters only. I write these pieces, because I want to communicate the economic issues and concepts underlying. Rich Man and Merchant are just players in our game. Though very much factual players. I would like you to look at the broader issue, while understanding the concepts. Much of this Part and the rest are imaginary, only using the foundations built on the Part 1, to explain some economic concepts. At the ending of Part 1, we saw how the Rich Man put much pressure on the Poor Merchant to reduce its debts. But, the Poor Merchant cannot give the discounts and forgive all or even most of the debts. After all he is under no obligation to do that. But Merchant understands one important matter that, if the Rich Man is not able to buy much, then Merchant will loose more than just his future business, he would also loose much of the money t...

This is a story that happened in a small village. About 200 families made it their home. There was a rich man in that village. The rich man was the head of the village also. And there was a hard working but poor merchant there. Our story begins long back, when the grandfather of the Merchant decided that he has to break some rules. The Merchant was poor because he was in the habit of trading with the people he knew well. He did not sell his merchandise to any body else other than, selected few people of his community. Grandfather decided that it would be better for his family, if he began trading with the Rich Man. Grand father was very respected in the household and hence there was no opposition to what he said. The family was strict and respected its elders. Merchant met the Rich Man for the first time after many years and expressed his wish to sell his merchandise to him. Rich Man agreed because the Merchant had very good wares and sold it for a small profit only. Rich Man was very ...

Hi, This is an attempt explain few things in a simple manner. But economics is not a simple cake. It has been made tough as hell by the jargons that keep sprouting. It tough also because, every event is different in the eyes of different people. What is income for somebody is somebody else' expense. What is demand for one, is somebody's supply. But it is an important part of life. Having knowledge of economics will sure not hurt. It may just help. This attempt, is by no way the most "correct" method. I mean the terms may not be exactly defined as such. But it is close. My only attempt is to create interest and make aware of few things. I hope is simple enough for you consider to start reading economics in details. If there is a central theme you must remember at all the times while reading these passages, then it is this: The Party is still on, enjoy the Party. Don't worry too much about the future, live the present. But plan, who will drive you to home when you h...

Listen. Don't explain or justify. Meaning: Listen. Learn. Enjoy. Listen. Learn. Enjoy.................. Dont speak. The first duty of love is to listen. Meaning: If you love her, she will love you back. She will care for you and guide you. So, listen. It is the province of knowledge to speak And it is the privilege of wisdom to listen. Meaning: The most profound objects in the universe are simple and silent. Wisdom speaks in the language of silence. A good listener tries to understand what the other person is saying. In the end he may disagree sharply, but because he disagrees, he wants to know exactly what it is he is disagreeing with. Meaning: It is a privilege to disagree with anybody. To enjoy the privilege try to understand her better. Doubt yourself and you doubt everything you see. Judge yourself and you see judges everywhere. But if you listen to the sound of your own voice, you can rise above doubt and judgment. And you can see forever. Meaning: Nobody will love you, if y...

Only simple structures can evolve successfully. One again: Only simple structures can evolve successfully.

The stock market surged upwards upon hearing the US Federal Reserve may cut interest rates to save the economy. This is tantamount to heroin addicts rejoicing their morphine will be increased because doctors are concerned about their rapidly failing health. Darryl Robert Schoon

http://www.dollardaze.org/blog/?post_id=00107&cat_id=17

Dec. 7 (Bloomberg) -- India's gold imports plunged for the second straight month from a year earlier after a rally to a 27- year high curbed jewelry demand in the world's biggest consumer of bullion during the traditional peak consumption season. Purchases in November fell to 12 metric tons from 59 tons a year earlier, according to the Bombay Bullion Association, which represents 230 trading companies. Imports slumped to 14 tons in October from 68 tons a year earlier. The data is preliminary and will be finalized by the year-end.