Friday, January 26, 2018

26/01/2018.... INDIA + US....




Specialization is just another dimension in Economics... A country should specialize in that line of production in which it has low cost advantage or oppourtunity cost... More investment and supply, at even current prices, and lower price and price expectations, due to higher supply (and competition to achieve market share*), could also increase future demand and growth....



The distribution of labour and the distribution of national income or output, (locally and globally), are already the stated objectives...



Employ more people in the sectors which has the ability to lower prices or inflation, local/global level, and keep the borrowing cost low....



Currently, fracking is just same as coal... Sell oil and earn interest income or invest in other profitable assets, too, ... Lower prices would increase the real value of everything in the economy...



Otherthings remaining CONSTANT, higher investment and supply could result in higher or irrational expectations or exuberance leading to corrections in the market, but again invest when prices fall more than 10%,



It would reduce the average cost and the marginal cost 0r mean/median/mode costs and price or inflation.... Global local, both.... which means more demand, price, supply, investment, employment, income, consumption, savings and growth and expectations....



The GOI should curb nonsense expense... levy inflation cess to dump where there is too much private stockholding and there is excess profit, resulting in concentration of wealth... 1Re, perperson, perfamily just to contain real incomes and standard of living could be imposed...



It would help increase public savings by a billion everyday and which could be 365 billion in a year... though the government has a price stabilization fund of Rs 500, but it is inadequate and is rarely discussed since the economy has improved little on investment and business and supply to an extent... But, the government could use the Rs 100 Crore idea perday... to reduce revenue deficit...




Growth is much better than the hindu rate of growth before 1991 reforms of 2%... real gdp has been increasing since then... and in the case of nominal gdp it has been much higher... he is also undermining mms efforts... INDIA is the fastest growing economy in the leading economies... (why) he is talking so wrong...? he sooo wrong....



The commercial banks may try to restructure or refinance their bad loans at close to 0% rates with the help of the western or developed countries' commercial banks... it would also help with foreign exchange reserves especially the dollars because our demand for foreign exchange would go down, the rupee would appreciate... RBI could involve hedge funds to buy the troubled assets... since, growth is recovering they might help re-capitalize firms having bright expectations...



On oil prices.... more investment at, even the current prices, could help tame demand and prices and adequately manage supply or little more to have a downward bias in the price level, (TOINCREASEREALAND/ORREALEFFECTIVEDEMANDANDPROFITSTO TOMAXIMIESETHESCALEOFDEMAND.... but, maintain reserve or reserve capital to invest more if prices fall more than 10%... Had the lower borrowing helped more investment in energy or reserve oil it hadn't a headache for the domestic economy...



Dear Bitcoin and others….,
Invest to increase real effective incomes by creating education, skills and employment, increase innovation and productivity to lower prices by increasing supply and production and when and wherever prices have higher expectations, buy low sell high....not, until the answer, "how the bitcoin money is used ?" How good for lowering prices or increase employment and investment and growth... bitcoin might invest in education and skills... and data... 



No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...