US Economy & some facts by Econimists

Interesting article written by an Indian Economist

Japanese save a lot. They do not spend much. Also, Japan exports far
more than it imports. Has an annual trade surplus of over 100
billions. Yet Japanese economy is considered weak, even collapsing.

Americans spend, save little. Also US imports more than it exports.
Has an annual trade deficit of over $400 billion. Yet, the American
economy is considered strong and trusted to get stronger.

But where from do Americans get money to spend? They borrow from
Japan, China and even India.
Virtually others save for the US to spend. Global savings are mostly
invested in US, in dollars.

India itself keeps its foreign currency assets of over $50 billion in
US securities. China has sunk over $160 billion in US securities.
Japan's stakes in US securities is in trillions.


Result:


The US has taken over $5 trillion from the world. So, as the world
saves for the US - Its The Americans who spend freely. Today, to keep
the US consumption going, that is for the US economy to work, other
countries have to remit $180 billion every quarter, which is $2
billion a day, to the US!

A Chinese economist asked a neat question. Who has invested more, US
in China, or China in US? The US has invested in China less than half
of what China has invested in US.

The same is the case with India. We have invested in US over $50
billion. But the US has invested less than $20 billion in India.


Why the world is after US?


The secret lies in the American spending, that they hardly save. In
fact they use their credit cards to spend their future income. That
the US spends is what makes it attractive to export to the US. So US
imports more than what it exports year after year.


The result:

The world is dependent on US consumption for its growth. By its
deepening culture of consumption, the US has habituated the world to
feed on US consumption. But as the US needs money to finance its
consumption, the world provides the money.

It's like a shopkeeper providing the money to a customer so that the
customer keeps buying from the shop. If the customer will not buy, the
shop won't have business, unless the shopkeeper funds him. The US is
like the lucky customer. And the world is like the helpless shopkeeper
financier.

Who is America's biggest shopkeeper financier? Japan of course. Yet
it's Japan which is regarded as weak. Modern economists complain that
Japanese do not spend, so they do not grow. To force the Japanese to
spend, the Japanese government exerted itself, reduced the savings
rates, even charged the savers. Even then the Japanese did not spend
(habits don't change, even with taxes, do they?). Their traditional
postal savings alone is over $1.2 trillions, about three times the
Indian GDP. Thus, savings, far from being the
strength of Japan, has become its pain.


Hence, what is the lesson?

That is, a nation cannot grow unless the people spend, not save. Not
just spend, but borrow and spend.
Dr. Jagdish Bhagwati, the famous Indian-born economist in the US, told
Manmohan Singh that Indians wastefully save. Ask them to spend, on
imported cars and, seriously, even on cosmetics! This will put India
on a growth curve. This is one of the reason for MNC's coming down to
India, seeing the consumer spending.

'Saving is sin, and spending is virtue.'

But before you follow this Neo Economics, get some fools to save, so
that you can borrow from them and spend !!!

Manmohan Singh Ji, Pranab Babu and Sonia Ji,
Great Strategy. Survival strategy without any HULLA GULLA like in the past when notes were flowing in Lok Sabha.
Maya is managed, Lalu & Mulayam managed to abstain. 273 was the figure supporting and 272 war required!
All these leaders require your support and cooperation to manage their disproportionate assets cases.
CBI is with you and good that you prevailed. It would not be appropriate to have general elections now, not at this stage.

Ashwiniji, you can do a little. I can understand your predicament.

Good or rather excellent political management. Hats of to you Pranabda. Man Gaye Sir. There is no better political manager than you, not in the recent past and nor will be in foreseeable future.

L R Sharma

Railway lines in HP

Himachal does not seems to on the Indian political map? At least, that is the case with ministry of Railways in India which has not added any railway line in the scenic province even after 63 years of independence.
Shame on our thinkers and politicians specially from the State of HP!
Angregi Shashan could lay railway line (meter and small gauge) to Shimla (after digging 103 tunnels through hills) and Joginder Nager. Weren't they better than present day Netas?
Is anybody in the political hierarchy listening? SONIAJI! MANMOHANJI!
We Himachalies are only handed over lollypops by every railway minister by announcing some surveys for railway lines in each years budget.

Mobility of people makes a lot of difference in day to day life. This scenic state has so much tourism potential but unfortunately mobility and access are the major hindrances. The roads conditions are pitiable and there is no worth mentioning airport to cater to high end tourists.

I seek everybody's help.

L R Sharma

Political System in India

In my opinion, a lot requires to be done to reform the political system in my country, India.
I have been a dedicated political worker of Congress party but it seems that there is no space for actual workers. Rahulji and Soniaji are trying there level best in Congress but I am sorry to point out that the desired effect is missing.
Only sycophants and Chamchas have the say. The actual worker still is not getting his due.
I don't understand this funda. A pure congress worker for the last 32 years and still waiting in the wings????
What is this? Are you all not ghearoaed by Yes men or Chamchas ?
I asked for a RS ticket in 2002 and Mrs. Gandhi was kind enough to allot the same to me when it was fighting with BJP!
Then, in 2004, my friend Anand deserved it. No Problems. But, at least now, consider it and allot me the ticket for RS!!! Is it asking for too much being a follower and friend of Rajivji?
I am prepared to lock horns with any body for my ideology and Congress.
be it NDA or any body else.
I want to speak for those people whom I belong to. The down trodden, The have-nots, the people who have no voice.
I belong to a class which have not seen much of development in India. I want to raise the topics which belong to them.
I am asking my due and will not beg. It will not be a largess. Kaul Singh, my friend and PCC president is eying the post of CM. I wish him luck but this is not the way.

I would request in the humblest possible way to confer or give me the chance to speak for my peoples in the upper house of Parliament in India.
I know that this is going to be public.

L R Sharma
MBA, MA(Soc.), LL.B, D.C.E., M.I.E., PGDM.

BJP Govt.'s Honeymoon seems to be over

It seems that the public at large in HP has realized that their changing the govt. (one time to Congress and the other turn to BJP) is not yielding the desired results. The big promises made at the time of elections remains upto the manifesto and the ground realities remains the same. There are few creative brains those too are not deployed at right places. There is paucity of right people at policy and planning level.
There is no dearth of money with different departments of central govt. There are no worthwhile projects put up for sanctions. The files remains in bureaucratic tangles. Social welfare deptt. of central govt. has abundant budgetary provisions for various schemes. This is just an example. There are many departments with huge budgetary provisions but there are no takers from HP.
Claims of creating employment to youth in new industries are exaggerated. About 12 Lac educated unemployed youth are feeling frustrated.
It is high time that the govt. takes effective and innovative steps to engage this asset, create and find avenues for this unemployed force. They will not only contribute to the GDP of the state but also be inspiration to ever increasing peers and youngsters.

Govt. of HP should try and get most of the funds from central govt. schemes. A separate pool of intellectuals from respective fields should be deployed to identify and get such assistance.

General electorate is getting fed up. It is high time for the present establishment to act.

L.R.Sharma

Govt of HP not doing enough for Tourism

Govt of HP is not doing enough for the tourism in the State. The natural resources are huge. It needs to exploit the resources. The flora and fona of Himachal is unmatched in the hill tourism. It can be compared to any good destination in world. If late Ch. Bansi Lal can do it in a state like Haryana which had no natural tourist attractions, surely HP can exploit its virgin tourist destinations. There are places like Janjehali valley, Chuhar valley, Bharmour, Naina Devi (Sarkidhar) 7 lakes-Rewalsar, few other unexplored places in Kangra, Hamirpur and Kullu.
Govt can seek help of specialists and professionals. Locals can be involved by educating them and this sector can become a major employment generating venture for the huge unemployed educated youth of the state. Some incentives and getting funding through banks etc will do the trick. NGO'S can be involved. Cooperatives can be formed for the purpose of small ventures, hotels, resorts, camping sites, tracking places etc..
This will create employment to the surging unemployed young people and boost the economy of the state to a great extent.

L R Sharma

Airport for Big Aircraft landing in HP

I appreciate the initiative taken to construct a new airport at Mandi (HP) by Airport Authority of India. This should be taken to logical end. Aircraft carrying high end passengers will give boost to economy and will create direct and indirect employment for about 10000 unemployed youth. High end tourists will bring revolution in tourism. I have been also fighting for this for some time now.
All is well that ends well. Govt. should take this up at the highest level to take it to a logical end and complete the airport within next two years.
My best wishes.