It is out now……… King is Naked!!

It is in the open now. When SE asia economy collapsed they said no proper regulation etc. Instead the Americans and Europeans created a bubble and looted all the profits and burst the bubble. This has been going on from Margret thathcher’s time. Many people questioned it. But nobody was there to answer. You don’t need to be an economist to understand what happened.
Two world wars and later looting kept them rich for long. Then diverted all productions to SE asia. Some more time was bought. So where is the income. Simple Give loan to anybody and everybody to build house and keep showing huge GNP growth. Then pledge all the loans to insurance. Then sell these insurences to hedge companies. You didn’t undersand. You wont because it is just book entries. I will show you. You give me Rs 100 loan. I promise 10% for 10 years. I give rs. 10 in first year you have reported 10% profit minus some salary and commission .Next year I again give you 10Rs. You are making lots of profit. Sell your shares in premium Give more such loans.You are booming. 3rd. year some of the 10 rs don’t come Just don’t worry it is all insured. Fourth year I stop giving now you have still an asset. But it is called Bad debts (or NPA Non performing assets). Suddenly it all sinks as the insurance companies are broke. 2008 Govt. prints lots of money and saves you( banks). 2011 The end. No source of income It is all debts. And all cash producing cows are in china and SE asia. Well are they not better. No there are somany cows nobody has money to buy milk. China has 2 trillion savings. Yes in US banks and Us Govt. Bonds.
Same case with Europe. Only thing it is messier. A Chinese says “ If I am sick I have to go to hospital and pay. But in Europe the govt pays, in US Insurance company pays, so who is a communist”.
The only safe country is india. We have only 16% of GNP as export. Just enough to import gasoline. This will ofcoures nosedive. Yes but petroleum prices is going down faster.
That is why you see the smile in the face Pranab da.
Why Germany is not shown? Not because she is a lady. Because right through this mess they stuck to production and they are pretty safe. Still German technology rules. In the near future they are again on top. Japan oh this bloody Tsunami!

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