Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday 15 October 2013

The Debt Trap



In the next 24 hours , expect American Congress to raise the Debt-Ceiling , once again


As it has raised it 71 times in the past 40 years


Other alternatives before the American Congress are :


Ø  Raise taxes ( to increase State income  )


Ø  Reduce Expenses (  eg:  ObamaCare  )


Ø  Print more money (  and fuel inflation  )


But these are all , very unpopular measures with the American public . And no politician likes to be unpopular


So , the easy way out is :

  
Borrow more  –  let each American grandchild worry about repaying to the rest of the World , a measly sum of $ 52,000  !


We will not be around when the bubble bursts  !


Tomorrow will , somehow take care of itself  !


With annual revenue of $ 2.4 trillion and expenses of $ 3.5 trillion , how else can America make ends meet ?


No one in America seems to be asking :

  
·         Are we living beyond our means ?


·         How long can we sustain this high living standard on borrowed money ?


I hope , we in India do not fall into such a Debt-Trap


Fortunately ( ! ) , rich Indians have stashed away Rs 28 – 35 lakh crores  ( $ 462 – 572 billion ) in foreign banks ( as per Global Financial Integrity – GFI )


Offer them , a “ No Questions Asked “ , Voluntary Disclosure Scheme ( VDS ) to invest in tax-free Infrastructure Bonds


Then , we will not need to borrow from IMF to raise the standard of living of 400 million poor Indians , earning less than $ 1.2 per day


·          hemen  parekh  (  16  Oct  2013  )







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