Economic World war I
Almost all the world economies have now recognized the bad impact of globalization on their economic budget and are testing several unconventional methods to curb this turmoil. Several countries are doing a balancing act of curbing inflation on one hand and promoting production on the other, stocks of almost all the company at their lows, more over even the private sectors have resorted to job cuts which has become common news from every other economy or sector. With surging price of regular commodities people are liquidizing their non performing investments to meet their basic requirements. At the end of the day the question still remains the same.Where is the world heading to? Is it towards a great new beginning or towards total annihilation of the economy?
Being a optimistic myself I am personally of the view that such kind of economic correction is crucial for any economy including the global and we all stand at this juncture to witness a historical moment just like : Industrial revolution , Great depression, World wars and such others. Similarly this may be another turning point for our future where a new power, new country, new technology, a new global structure, new political economical and social thinkers will emerge and world may be a totally a different scenario from where we see it today.
I guess it is for the developing countries like India, China, and Pakistan to give a new structure to the global scenario because most of the so called developed economies have also become “Saturated Economy” with a average year on year growth of hardly 0.02 percent since most of them have tremendously exploited al their assets like human resource, agriculture resource, raw materials, industrial production etc, whereas India having the 2 highest population in the world uses only 3 % of its potential human resource. So if the government efficiently puts the resources on the right tracks in a systematic way then the economy will definitely move on the right direction towards progress in a quicker pace.
As India is concerned I really don’t understand why the government which is facing a liquidity crunch in its treasury does not attract the retail investors by systematically increasing the rate of interest on regular bank and postal deposit scheme, they can also hike the returns on national saving bonds like, National saving certificate, Kisan vikas patra and keep the purchase window open for certain institutional investors, this will surely drain out surplus cash out of the economy and bring the inflation under control connectingly these cash resources which are collected from the people can be lend by the banks to the commercial sectors which will invest it in productive process and pump up the trade cycle.
All in all it is interesting to see the world united to overpower a common enemy i.e. “Money”.
Select your views about the market recovery.
