Sunday, July 26, 2009

Defense Budget

Every year our country's defense budget keeps increasing though the amount we spent on education and other people welfare remains more or less the same. Had the increase in defense budget improved our security? No. Still terrorist infiltrate into our country or home brewed terrorist do stupid stuff every now and then. And had we utilized the weapons we bought for billions to eliminate the threat? Again No. Still Pakistan does support terror activities and what we had done? We kept buying nuclear submarine, missiles and all sort of no-sense things which we don't use!! Whats the point of hiring an escort if you are not going to anything with her!

Either we utilize our weapons and army or stop spending on it. Instead we can improve living conditions of our people. No more slums, education for everyone and an prosperous future.

Friday, July 3, 2009

what goes up, has to come down

The politics over fuel prices has started again. Should government subsidise fuel prices? Well, an yes/no answer is not an solution to the problem but an delaying tactics. Problem is not fuel prices but our people doesn't have the money to buy. Simple as it sound. None of the government had done anything for the people. What Indian government does is liken an HR consultancy company. People as services and nothing else.

Loan waiver to farmers or subsidizing fuel proves the inability of the government. Nothing wrong increasing fuel prices. Public transports should be improved. Having an vehicle in each and every home, sounds good but will put more government to improve infrastructure of metros but not our villages. Giving tax holidays to billion dollar companies is not the purpose of SEZ.

As far fuel is considered, yes they should reflect market rates forcing people to use public transports or save fuel. Positive side effect, less traffic on roads.

Wednesday, July 1, 2009

Inflation good or bad?

Slow down in economy is no good. Agreed. No doubt over that, Is low or negative inflation bad? At the peak of the current economic crisis inflation is near zero. If you are wondering what inflation is, here is the definition from wiki, In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. So, it means value of money has increased. So, we can buy two chocolates instead of one at the same cost. But, Why governments see low inflation as bad?

Governments have borrowed lots & lots of money to improve and induce development in the country. Also have wasted money in military expenditures. How will they pay it back? Ofcourse they can print all those money. What will happen if they do so? Money loses its value and its called inflation!!

So, in an monetary system based on debt inflation is unavoidable. And money will lose its value over time. What it means, don't save money but save real assets like gold. Gold or silver value remains unchnaged its the money which had losen its value. And its the same reason investment is an must in our monetary system.