From political thread in GDF
RoyG wrote:The problem is India has a very limited time frame to enact reforms and jump start the economy. What choice does Modi have?
I wonder if you are
also alluding to the paucity of funding to implement the agenda that would enable development? Yes the time available to push to much needed reforms is limited from the scope of the duration of the current parliament and also the global economic turmoil makes the availability of time to do things very 'unfair' to the current dispensation.
However, there is a very positive direction the game is moving in terms of Indian economic future.
Some people claim there are shortages of funds to meet all the planned development goals. However, in reality there is no shortage of funds (money). And the money is there within India already.
The global economy in near term will need to be re-capitalised. Dollar settlement overhang is not going to last forever. The problem, currently, is with the need to sustain the global economic hegemony. The current hegemony allows a select few countries to do what they wish. While the other emerging economies have to live off the morsels falling off the high table. Since 2008, there is a change but not a lot. Still people are imputing value to the dollar. The dollar has lost its intrinsic value anyway.
https://econographics.files.wordpress.c ... lar-vs.jpg
The only natural good left to recapitalise the global economy is gold. Gold is a Giffen Good- anything which people buy in more quantity when the price is rising.
In India, there is no shortage of gold. Many tons of it exist both above ground and below. What there is a shortage of RESPECT! RESPECT FOR THE RELIC.
The amount of gold in existence is some 6 billion ounces. At current market valuation this puts it at about $7.2 trillion dollars worth. Thats not enough to capitalise Indian economy, forget the global economy.
Once gold is properly "respected" for the historic repurpose it serves to recapitalize the Indian ergo Global economy ...once it is valued properly as the only available solution to restructure the global monetary engine that fuels progress and keeps civilization from collapsing into a depressionary "dark age" ... there will STILL be NO shortage of the stuff.
But the FLOW will stop ... as thoughts about what it's relative worth is in the new paradigm undergo a transformational period of alignment.
Just as the dollar today is "stronger than death" and yet is destined to be "non savable good" after its intrinsic value is revealed ... so shall gold undergo an inverse revaluation process. This will be harnessed by the government to undertake projects which will be stalled when funds initially run low.
The (necessary) revaluation can happen any time and the event will cause thoughts to change. But the yield whores- paper traders- keep the current game flowing, and keep "systemically important thoughts" in check.
What are savings? In one sense it is deferred present consumption. In another sense it is future consumption. In another sense it is future production. Sovereign debt as a store of savings is dying. 2008 was the proof of that.
What GOI will do is make the foundations solid. Make in India is an initiative which wont really take off until the savings paradigm has changed. The Indian Financial Code made by Justice Srikrishna headed a committee — the Financial Sector Legislative Reforms Commission (FSLRC) is a vital cog in this wheel. So is Arthakranti.
