It is not a mystery that since the UPA government has taken oath, inflation has been on the rise. It is not only with this Congress government, if we have a look at the history, this has been the case with each one of them. Can we infer something from this trend?
Well, as we try to decipher the code, the “aam aadmi” for whom the UPA government vouches for, has been again hit by the price-rise bug and this time around, it is the petrol prices, which has gone up by nearly Rs. 3.
This coupled with RBI’s decision to increase the rates to keep a check on the rising inflation would mean that the home and vehicle loans will become costlier, in turn burdening the common man even more.
I wonder how on earth, the UPA government will be able to contain this inflation and would want to give up on their flawed policies. If not is it time for UPA government to make way for a better and proficient government?
The man who made a moderate beginning some 30 years back didn’t know that he would make it so big. He had no idea at that time that he was going to change the IT scenario in the country, but one thing that he surely had was a revolutionary idea, the idea of outsourcing in which a company in US could off shore work in a company in India which was prepared to work overnight.
That ways, he provided the Americans with an opportunity to conduct business 24 by 7 and this indeed brought a revolution in the mindset of the companies, who were ever on a look out to make more money.
What Narayana Murthy gives to a billion people in India is a hope that if one works hard and is ready to give his/her best to an idea that he/she has confidence in then anything is possible. He represents the face of Young India which is ready to take risks and go on an entrepreneurial path.
As he steps down from the helm of Infosys, we all take a bow to the man who indeed changed the ways of doing business.
Isn’t the condition in US deteriorating day by day? Though they have managed to bail themselves out of the immediate crisis, the troubles seem to be not ending with S&P recently degrading US of her AAA status to AA+.
What this means is that the investors would now be in a position to bargain when investing in US Treasury bonds, which were before this incident considered to be one of the safest propositions in the market. Now, the US would be forced to pay a higher interest on these bonds, which in turn would affect their debt position further and in turn the unemployment rate which doesn’t seem to go down with time.
This also might trigger a backlash in outsourcingwith uproar going louder on jobs in US being outsourced to India and in turn might have an impact on India and her citizens who are living in US.
But do US have options left in her kitty to deal with the thunder storm arising due to ever rising borrowing limit and debt situation? For that matter do European nations and in fact the whole World have some solution for the same, as this is not going to be just a local effect. It is going to effect the entire globe and the consequences seem really bad.
The decision to hike the debt ceiling came as a relief to the financial marketswhich were really concerned about the August 2 deadline. It could have led to a default by one of the most powerful economies in the World today, and the credit rating for the country would have rocketed down. What this would have meant for US was that the investors would no more have vouched for the destination, instead would have opted to invest in relatively lucrative and safer places around the World. This could have been disastrous for the dollar and the interests rates would have gone up if such a measure for not undertaken by US.
The immediate crisis seemed to have been dealt with, but the repercussions of the decision are bound to have a long term impact on the economy. There are certain things which US should really worry about. First and foremost is the ever rising debt for the country, which created a near default scenario for the country. Second, US should worry about more than trillion $ worth of its bonds that are with China. It is not very hard to imagine as to what will happen if the Chinese decide to sell these bonds in the market, which gives China such a huge bargaining power over US.
The US must get her act right if she wants to maintain a dominant position on the World stage. A developing country which is not much affected by US and her aid is sure going to feel good about the decreasing dominance of the super power. Default or no default, the incident has certainly decreased the credibility of US market. This might also force the US government to rethink about her policies in Middle-East, for now the demand of the situation would be cuts in the spending and the people will be quick to point out the extravagant defense expenditure being incurred in Afghanistan, Iraq etc.
What lies ahead is a very interesting scenario and the trouble for US is not yet over.