The Catch 22 Black Money Economy
A piece of land costing Rs one lakh sky rockets to Rs Ten Lakhs in three or four years. Certain segments among the employees draw salaries in lakhs per month. Engineers, MBAs, Chartered Accountants, Cost Accountants, Company Secretaries, Bio-technologists... earn in crores per annum.When a piece of land costing Rs one lakh sky rockets to Rs Ten Lakhs, the value of money is lost by 90 per cent.
Similarly Fixed Deposits, Post Office Certificates, Debentures...which are all tied to an unchanging numerical figure, get their principal value wiped out. Boom and Doom are two sides of the coin. They are happening at the same time. In fact one cannot happen without the other also happening.
Banks depend on Fixed Deposits to survive. All industries need bank financing to exist. When they prosper, normally prices rise or the value of money falls. A catch 22 situation has taken over the hapless people who depend on interest income to live. Inflation makes the real interest income a cruel fake income or negative income. The regular inflation in consumer prices reduces the principal value of the Fixed Deposits; Debentures etc.The real estate boom dooms their value almost completely. When a kid of twenty years is employed for a salary of the usual one or two lakhs per month today, he unconsciously is participating in a new apartheid or economic segregation, where those that depend on interest income get ghettoed.
The only escape from the Catch 22 economy is the black money economy or the tax free economy. In the tax free economy where the Government does not get any taxes at all, the interest rate is almost one hundred per cent. This exorbitant interest ultimately enters the costs fuelling the inflation. Cementing the burial of the white economy is income tax on the fake income--- the very small interest given by the banks etc.The rottenness is so comprehensive, that even the small interest on the RD accounts and the Savings Accounts also is taxable!
Unfortunately a lot of technicalese or meaningless econometrics that obfuscates this simple situation is employed, making common sense, some sort of advanced technical subject. The only economy now existing in India is the black money economy.
In the black money economy the real estate prices are in crores while the amounts written in the document are in lakhs. Employees are paid very small amounts while they are made to sign for very big amounts. False voucher is normal accounting.
If you are a VVIP-NPA, none can dare ask you any question. But if you want to save you must be prepared to lose. Now if you want to subscribe to a Mutual Fund you must first disclose your net worth, the source of your saving and your annual income along with date. Already many debt funds are discontinued.
Ours is Catch 22 Economy, with the black money economy as the only escape.
प्रॉपर्टी कारोबार से खुशहाली । How to be Rich and Wealthy - 5 (Real Estate Business) in Hindi
In this video Sardar Rajwant Singh Mohali has been interviewed by me. He is the author of the book "Prosperity from Property Business". This book contain the useful and detailed information about buying, selling, and developing real estate.
Click here to watch this video
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Posted by: "Cool Kis" <coolkis2@msn.com>
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