Tuesday 28 June 2016

Impact of 7th pay commission

As soon as the 7th pay commission is approved, it would result in 24% hike in salaries for government employees. This means the budget deficit will increase. So government will have to raise taxes. Higher taxes cause growth to slow.
Since already India has high taxes, the government will also have to print currency to cover deficit. So inflation will rise.
As growth slows, the interest rates will have to be dropped to prevent systematic collapse.

Thus, the impact of 7th pay commission approval is

  • Inflation will rise
  • Taxes will rise
  • Growth will slow down
  • Interest rates will fall
  • Gold/Silver will rise
  • Stocks will fall
  • Real estate sales will fall further

If Indian government is interested in welfare of common people, then it will reject the 7th pay commission.


Wednesday 22 June 2016

Salman Khan's rape comment

Salman Khan said, "Wrestlers fight once or twice in a real fight; during the shooting of Sultan, I had to the act 10 times. For 6 to 7 hours, either I am picking up or am throwing someone. So it was very difficult. When I used to walk out of that (wrestling) ring, it used to be actually like a raped woman walking out.".
Immediately, the media started attacking Salman. The attack was so intense that Salman and his father apologized for the comment, but the attacks continue.

There is nothing wrong in Salman's statement. There is no need for him to apologize, let alone his father. The media is wrong in attacking Salman before and after the apology.

Only Salman knows how he felt after a tough scene; Only a raped woman knows her feelings after the incident. Others can only guess about their feelings. They have no proof to prove anyone false. Not all actors would feel the same after a tough fight scene; probably not all women would feel the same after a rape (since the brutality varies in a huge spectrum). So why cannot Salman feel like some raped woman?

We should support Salman Khan and condemn those who attack him for his feelings. These attackers are sexist, think that only women suffer and deny tough-looking man the right to express his feelings.


Saturday 18 June 2016

Politics drives everything in India

A few months ago, BJP government decided to build a bullet train between Mumbai and Ahmedabad; even though it will be a financial disaster. Reference.
Why did BJP decide to build this bullet train?
The toll roads between Mumbai and Ahmedabad are controlled by BJP's political opponent Sharad Pawar. By building this bullet train, BJP wants to undercut the huge toll collected in cash (no taxes) by Sharad Pawar and thereby weaken him.
Why build the bullet train only till Mumbai, and not Pune? There is lot of traffic between Mumbai and Pune too.
The toll road between Mumbai and Pune is controlled by a BJP politician Gadkari. BJP wants the revenue (in cash with no taxes) received by its policians to remain intact.


Why is RBI governor Rajan being forced to quit?
Rajan was appointed by Chidambaram, a Congress politician. BJP does not want, anyone close to Congress, in an important position. So Rajan has been privately indicated that he should drop out of the race on his own; since he will anyway not receive any extension.
Rajan had done a reasonably good job as RBI governor. When currencies of many countries (Russia, Brazil, etc) were falling; Rajan's high interest rates ensured that Indian rupee was strong.
In India, performance does not dictate government decision; it is whom you know; with what political party are you associated with.