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Wednesday, September 19, 2007
A true s/w engineer ...
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Tuesday, September 18, 2007
Saving is SiN, nD sPenDinG 's VirtuE.
An amazing fact to digest!!!!!!!!!!!!!!!!
Saving is sin, and spending is virtue...
Interesting article written by an Indian Economist
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $800 billion. Yet, the American economy is considered strong and trusted to get stronger.
But where from do Americans get money to spend?
They borrow from Japan , China and even India . Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $100 billions in US securities. China has sunk over $600 billion in US securities. Japan 's stakes in US securities is in trillions.
Result:
The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US !
A Chinese economist asked a neat question. Who has invested more, US in China , or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India . We have invested in US over $100 billion. But the US has invested less than $20 billion in India .
Why the world is after US?
The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US . So US imports more than what it exports year after year.
The result:
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America 's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted it self, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the Indian GDP. Thus, savings, far from being the strength of Japan , has become its pain.
Hence, what is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend. Dr. Jagdish Bhagwati, the famous Indian-born economist in the US , told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India , seeing the consumer spending. "Saving is sin, and spending is virtue."
But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!
Saving is sin, and spending is virtue...
Interesting article written by an Indian Economist
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over 100 billions. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $800 billion. Yet, the American economy is considered strong and trusted to get stronger.
But where from do Americans get money to spend?
They borrow from Japan , China and even India . Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $100 billions in US securities. China has sunk over $600 billion in US securities. Japan 's stakes in US securities is in trillions.
Result:
The US has taken over $5 trillion from the world. So, as the world saves for the US , Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US !
A Chinese economist asked a neat question. Who has invested more, US in China , or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India . We have invested in US over $100 billion. But the US has invested less than $20 billion in India .
Why the world is after US?
The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US . So US imports more than what it exports year after year.
The result:
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America 's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted it self, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillions, about three times the Indian GDP. Thus, savings, far from being the strength of Japan , has become its pain.
Hence, what is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend. Dr. Jagdish Bhagwati, the famous Indian-born economist in the US , told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India , seeing the consumer spending. "Saving is sin, and spending is virtue."
But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!
Best Men Thinking of Marriage ;-)
I recently read that love is entirely a matter of chemistry. That must be why my wife treats me like toxic waste.
-- David Bissonette --
When a man steals your wife, there is no better revenge than to let him keep her.
-- Sacha Guitry --
After marriage, husband and wife become two sides of a coin; they just can't face each other, but still they stay together.
-- Hemant Joshi --
By all means marry. If you get a good wife, you'll be happy. If you get a bad one, you'll become a philosopher.
-- Socrates --
Woman inspires us to great things, and prevents us from achieving them.
-- Dumas --
The great question... which I have not been able to answer... is, "What does a woman want?
-- Sigmund Freud --
I had some words with my wife, and she had some paragraphs with me.
-- Anonymous --
"Some people ask the secret of our long marriage.
We take time to go to a restaurant two times a week.
A little candlelight, dinner, soft music and dancing.
She goes Tuesdays, I go Fridays."
-- Henny Youngman --
"I don't worry about terrorism. I was married for two years."
-- Sam Kinison --
"There's a way of transferring funds that is even faster than electronic banking. It's called marriage."
-- James Holt McGavran --
"I've had bad luck with both my wives. The first one left me, and the second one didn't."
-- Patrick Murray --
Two secrets to keep your marriage brimming
1. Whenever you're wrong, admit it,
2. Whenever you're right, shut up.
-- Nash --
The most effective way to remember your wife's birthday is to forget it once...
-- Anonymous --
You know what I did before I married? Anything I wanted to.
-- Henny Youngman --
My wife and I were happy for twenty years. Then we met.
-- Rodney Dangerfield --
A good wife always forgives her husband when she's wrong.
-- Milton Berle --
Marriage is the only war where one sleeps with the enemy.
-- Anonymous --
A man inserted an 'ad' in the classifieds: "Wife wanted".
Next day he received a hundred letters.
They all said the same thing: "You can have mine."
-- Anonymous --
First Guy (proudly): "My wife's an angel!"
Second Guy: "You're lucky, mine's still alive."
:)
-- David Bissonette --
When a man steals your wife, there is no better revenge than to let him keep her.
-- Sacha Guitry --
After marriage, husband and wife become two sides of a coin; they just can't face each other, but still they stay together.
-- Hemant Joshi --
By all means marry. If you get a good wife, you'll be happy. If you get a bad one, you'll become a philosopher.
-- Socrates --
Woman inspires us to great things, and prevents us from achieving them.
-- Dumas --
The great question... which I have not been able to answer... is, "What does a woman want?
-- Sigmund Freud --
I had some words with my wife, and she had some paragraphs with me.
-- Anonymous --
"Some people ask the secret of our long marriage.
We take time to go to a restaurant two times a week.
A little candlelight, dinner, soft music and dancing.
She goes Tuesdays, I go Fridays."
-- Henny Youngman --
"I don't worry about terrorism. I was married for two years."
-- Sam Kinison --
"There's a way of transferring funds that is even faster than electronic banking. It's called marriage."
-- James Holt McGavran --
"I've had bad luck with both my wives. The first one left me, and the second one didn't."
-- Patrick Murray --
Two secrets to keep your marriage brimming
1. Whenever you're wrong, admit it,
2. Whenever you're right, shut up.
-- Nash --
The most effective way to remember your wife's birthday is to forget it once...
-- Anonymous --
You know what I did before I married? Anything I wanted to.
-- Henny Youngman --
My wife and I were happy for twenty years. Then we met.
-- Rodney Dangerfield --
A good wife always forgives her husband when she's wrong.
-- Milton Berle --
Marriage is the only war where one sleeps with the enemy.
-- Anonymous --
A man inserted an 'ad' in the classifieds: "Wife wanted".
Next day he received a hundred letters.
They all said the same thing: "You can have mine."
-- Anonymous --
First Guy (proudly): "My wife's an angel!"
Second Guy: "You're lucky, mine's still alive."
:)
Sunday, September 16, 2007
Some of my all time favorite one liners !!!
Did it hurt? ("Did what hurt?") When you fell out of heaven.
Did you know they changed the alphabet? They put U and I together.
Can I borrow that quarter? Because my mom told me to call home when I fell in love.
What's wrong? You're looking a little sad and gloomy. What you need is some vitamin me.
Are your legs tired? Because you been running through my mind ALL day long.
Are you lost? Because it's so strange to see an angel so far from heaven.
What's that in your eye? Oh...it's a sparkle.
Can I see that label? I just wanted to know if you were made in heaven.
Could I get some directions? ("To where?") To your heart.
I wish I was one of your tears, so I could be born in your eye, run down your cheek, and die on your lips.
Did you know they changed the alphabet? They put U and I together.
Can I borrow that quarter? Because my mom told me to call home when I fell in love.
What's wrong? You're looking a little sad and gloomy. What you need is some vitamin me.
Are your legs tired? Because you been running through my mind ALL day long.
Are you lost? Because it's so strange to see an angel so far from heaven.
What's that in your eye? Oh...it's a sparkle.
Can I see that label? I just wanted to know if you were made in heaven.
Could I get some directions? ("To where?") To your heart.
I wish I was one of your tears, so I could be born in your eye, run down your cheek, and die on your lips.
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