A Few Lessons to Learn

My learning about economy does not end. I keep learning all the while and here I am writing down some of the things I learnt.
1) There are things which come as free when you buy one thing. Eg. Toothbrush free with toothpaste etc. These freebies add interest to the buyers and builds economy by a large margin.
2) It is a good idea to give Rs.20 extra to the car cleaner, say once in three months or so. You can say " Have a tea and cigarette with this money". This will ensure that car is better cleaned and better taken care of.
3) It is a good idea to buy bread, milk etc. (daily essentials) from the same shop every day. This will not only help in building relationship but also enable the shopkeeper to know demand accurately.
4) Indulge in a habit and spend money with full heart. The habit can be gadgets, artwork etc. This will reinstate our faith in ourselves and will force the rich also to do so. The rich will also be tuned to indulge in the habit of giving. This will boost macro economy.
5) Keep clean habits and be predictable. This behaviour of yours will slowly get guided into economy thinking. You will slowly begin to keep spending data, calculate your worth and other diaries. This will help you a lot.
6) Be prepared with exigencies. Remember, being a man you can be called to defend the country and fight wars. If you are prepared then this preparation will help in dealing with difficult economic stages of life too.
7) As far as possible try to build yourself to an image. This image can be your company or a tourist place etc. People are attracted to images and by living upto an image you will be able to sell yourself better. This will give fillip to economy.
 

Follow Your Own Instincts

The share market is at its enthusiastic best. No time in the history of BSE were the conditions considered so favorable. The government at the center is headed by a person considered very friendly to the business houses. The IT and networking is at peak. The bank balance of the earning class is healthy. Therefore, a middle class man has sufficient funds for investing and he also has the infrastructure to make a healthy profit from investments.
But unfortunately we get completely blinded by the lure of getting quick returns. Only yesterday we read that the CEO of Flipkart is finding it difficult to handle so much of money. He considers that his company is being overvalued. True, Amazon has pumped in funds into Flipkart and that is a positive move. But that hardly makes a reason to ride blindly into the wave.
The government is planning to open up PSUs, insurance, retail, defence and other areas. These are greenfields and an investor should invest in these areas. This will not only give appreciation of your assets but also indirectly support the government.
Most of the above areas are long term investments and will start to bear fruit in about a year or so.
Our PM has appealed to the rich to forego subsidies in gas cylinders. Then today I read the charges against Jignesh Shah. In my opinion Jignesh Shah has ventured into areas which became loss making. There was no cheating.
I hope the young will understand the issues more clearly and make investments suitably.
 

Sovereign Magnetic Bonds ?

We all know that our economy is suffering. We all know that one man's gain is another man's loss. We also know that one man's gain could be more than the loss of another man. Also we know that one man's loss could be more than one man's gain. After all this is what is economy.
Can the loss or gain be measured to have precise economy? It can be. This is exactly where magnet comes into play. The lie detector technique.
RBI should issue bonds pledged against our iron ore reserves. This bond should have gain loss computer software attached with it. 
Now, the question is who will control it? Water Pond villages should control it. Larger the pond, larger shall be its control. Rivers should not be considered as it is likely to be more controversial.
See anything is possible. But we need will. We need action. Simply writing stories will never ever work. An empty mind is a devil's workshop. Stories are devilish . . .

Are You Bitcoin Ready?

In early 1960s the US Army was building foundations for networking which would change the world. The ARPANET. The scientists working on the project devised a mechanism of peer-to-peer. This means that a server is termed peer to one or many clients which are also termed peer.
Peer to Peer Protocol changed the whole world and laid the backbone of internet. Where everyone is termed equal.
Satoshi Nakomoto, the Japanese wizard has given a financial taste to this peer to peer. This is the essence of Bitcoin.
Now, the crucial question is, what is the catch? The catch is the password. Though everyone is considered equal in internet there is a statutory requirement of password. All the users of internet cannot utilise all the services of the internet because many sites require password.
Let us together, now, expand this concept and fully discuss the implications of Bitcoin. Here we go . . .

Your Role in Improving Economy in India

Have you ever felt that when your car is clean from outside and inside and is also polished, it runs smoother? Though there is no connection between smooth car ride and a polished car, the fact cannot be denied that a car feels better when clean and neat.
You can improve the economy in India by making your home and neighbourhood neat. You must also spend one hour every week to see your finance related papers. You must also file all the papers neatly and clearly. It will not be a bad idea if you calculate your worth. Also use extrapolation of data to determine the worth on a future date. Say, when your son passes 12th class.
Consumption is also a good way to boost economy. If all of us consume Potato Chips more then a factory for Chips will be made which will give employment. Also potato crops will grow. And oilseeds crops.  But care must be taken to see that right products are consumed more. Eating too much of salted almonds by everyone cannot be termed feasible. The mantra I suggest is consume more of those products which are socialistic. Steel products, clay toys, garden fertilizers etc. are good examples of socialistic products.
Ethics are a personal thing. For someone buying a product below MRP is acceptable. Some people feel that if he milks Rs.100 from a person, it is as good as earning a lakh. Yet for some not returning loan is acceptable. I rate not returning a loan as ethical and acceptable. I feel it is the job of the bank to get back loans. Why should a borrower worry about returning? Anyway unethical finances are a pain and we must learn to live with it or get over it.
Of course, the most important in improving economy is the old adage "Small drops make an ocean". So start right now in a small quantum and help our country to progress.

Amir Aadmi, Garib Aadmi

There was a movie by the above name. It had Amjad Khan in it.
Right from childhood, I always thought Amir Aadmi should not become Garib, while Garib Aadmi can become Amir. This was a philosophy I liked and it stays close to my heart.
But from my observations most of the people have old financial systems in mind. Most have a savings bank mentality and think that 4% savings bank interest amount is obtained from agriculture improvement. But the point is most only deposit money and this money occupies costly space in cities. The rent of this space will negate agriculture improvement. So, 4% interest is due to other banking profit making schemes.
Another view is Amir should earn more and give to Garib. But here, Garib needs to go to Amir for that. Amir may not want to spend energy travelling to Garib and give money.
Yet another view is make the hands of Garib strong. The Garib should come up, become entrepreneur and earn riches, enabled by the grace of Amir. Even here Amir may not grace this step. Why should they? Are they paid for this? I am in synchronous with this thought of Amir.
How do you think poverty removal be given a fillip in India? Any suggestions.

Raghuram Rajan - New RBI (Responsibility Backed by Intelligence) Governor

Raghuram Rajan is good. Very good. Commoners like me felt that he will be swayed by Sensex and will be guided by market demand. But no. He kept his foot on the ground and is promising the nation a fight for a cause which is important.
The poor. Inflationary pressures. We have a RBI governor who is a gold medallist from IIT and has more degrees than the number of words in his name, who is interested to fight for a cause.
The most important outcome of his appointment and his work thereafter is the confidence he is able to gain from the brokers and stock market. The sensex is stable above 20,000. The Nifty too is above 6000 mark. The rupee dollar equation is 61.50 to 1 dollar. It is a big applause from the merchants at Dalal Street for his courage and determined efforts.
The lessons we can learn from his current innings is that determination is important when it comes to economic affairs. We cannot think loose and expect miracles. Miracles happen when there is a purposeful determined effort from all of us. One needs to be surefooted and confident in approach. One should not think about hurting a father's feeling but should like oneself because one is leading his life.
When applied to one's life it could mean an ebook instead of a hardbound book. A cellphone with lesser features than buying a latest one. It may mean lesser dinner at restaurants outside or lesser trips on holidays.
But do not despair. Look at the positive side. Look at the chance to explore your own locality. The chance to become a good cook. The chance to increase knowledge with what we have at our disposal. This is what Raghuraman Rajan seems to be saying by his actions.