from a friend
*Amazing logics:-* *Look how world economy revolves... **Interesting!!* *Wise men talk because they have something **to say; fools because they have to say something.* *This is a crazy world!* *Japanese save a lot. **They do not spend much.* *Also Japan exports far more than it imports.* *Has an annual trade surplus of over **100 billions. Yet Japanese economy is **considered weak, **even collapsing.* *Americans spend, **save little. US imports more than it exports.* *Has an annual trade deficit of over **$400 billion. Yet, the American economy **is considered strong and **trusted to get stronger.* *But where from do Americans get **money to spend?* *They borrow from Japan, **China and even India .* *Virtually others save for the US to spend.* *Global savings are mostly invested in US, **in dollars.* *India itself keeps its foreign currency **assets of over $50 billions in US securities.* *China has sunk trillions of dollars in US securities.* *Japan's stakes in US securities is in many billions.* *Result:* *The US has taken over $5 trillion **from the world.* *So, as the world saves for the US , **Americans spend freely.* *Today, to keep the US consumption going, **that is for the US economy to work,* *other countries have to remit $180 billion every quarter, which is $2 billion a day, **to the US !* *A Chinese economist asked a neat question.* *Who has invested more, US in China, or **China in US?* *The US has invested in China less than **half of what China has invested in US.* *The same is the case with India . **We have invested in US over $50 billion.* *But the US has invested less than **$20 billion in India.* *Why the world is after US?* *The secret lies in the American spending, **that they hardly save.* *In fact they use their credit cards to **spend their future income.* *That the US spends is what makes it **attractive to export to the US.* *So US imports more than **what it exports year after year.* *The world is dependent on US consumption **for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption.* *But as the US needs money to finance **its consumption, the world provides the money.* *It's like a shopkeeper providing the money **to a customer so that the customer keeps buying from the shop.* *If the customer will not buy, **the shop won't have business, unless the shopkeeper funds him.* *The US is like the lucky customer. **And the world is like the helpless shopkeeper financier.* *Who is America's biggest **shopkeeper financier?* *Japan of course.* *Yet it's Japan which is regarded **as weak. Modern economists complain that* *Japanese do not spend, **so they do not grow.* *To force the Japanese to spend, **the Japanese government exerted itself, reduced the savings rates, even charged the savers.* *Even then the Japanese did not spend **(habits don't change, even with taxes, do they?).* *Their traditional postal savings alone is **over $1.2 trillions, about three times the Indian GDP.* *Thus, savings, far from being the strength of Japan , has become its pain.* *Hence, what is the lesson?* *That is, a nation cannot grow unless **the people spend, not save. **Not just spend, **but borrow and spend.* *Dr. Jagdish Bhagwati, the famous **Indian-born economist in the US, told Manmohan Singh that Indians wastefully save.* *Ask them to spend, **on imported cars and, seriously, even on cosmetics!* *This will put India on a growth curve.* *'Saving is sin, and **spending is virtue.'* *Dear Friend - do not get confused. Fill a glass - CHEERS* * * <http://sig.graphicsfactory.com/>* நல்லதுசெய் நல்லதே நடக்கும் *जन सेवा ईश्वर सेवा * *cnu.pne* -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
