An Interesting article

A pretty interesting article that I got as forwarded mail.

A Good Article on Economy - Written by 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 import more thanit exports. Has an annual trade deficit of over $400billion. 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 $50 billions in US securities. China has sunk over$160 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!
Otherwise the US economy would go for a six. So will the global economy.
The result will be no different if US consumers begin consuming less.
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 $50 billion. But the US hasinvested 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 tospend 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 notbuy, 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. "Saving is sin, and spending is virtue."Before you follow this neo economics, get some fools to save so that you can borrow from them and spend.....???????

Whatsup???

Normally i dont spend too much time on work. nowadays im becoming busy at work. Have to put extra effort. But that doesnt stop me from enjoying. Every week i spend my time with family and go for beach. I like beaches a lot where i spend atleast for 2 hours (dont ask me what i do) and go for pizzas during night. So far so good.

And this is marriage season in chennai. one of my best friend got married recently and i was with my other colleage mates during his marriage. Good time pass...talking with old friends. u feel happy if u stay in touch with friends. all noises u will hear from them. My colleague in office also got married 2 days back. yes this is marriage time.

i used to say to my friend rahul, how about going on h1b. he lives in bangalore and he say "machi in morning i feel like applying for H1 and when he retuerns home ( FYI he is staying with parents) he feels no H1. stay in bangalore and enjoy here itself. it is almost same case with me. think at sometime why not go abroad and earn more and at other times feel life in chennai is kewl. When i met rahul in marriage he told he put a full stop for h1b as he got salary hike. :) Gul, kalakkura da.

Next Im planning to go to singapore on vacation. My friend Ranga is there and he has been inviting me for some time now. Nalla sutha poraen. life is to enjoy man. My work is inviting me again. see u in next blog.