Basic Economics - Only the U.S. Knows Well.

The monetary system works in a cycle, there is demand and there is supply and if there is saving then there must also be consumption. Nation like Japan saves a lot to maintain high pile of cash reserves while US spends as every other nations owe them. what will happen if economy in US collapse and it doesn't have enough money to pay back to these nations??

Basic Economics - Only the U.S. Knows Well.
…written by an Indian Economist

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. Also 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 over $160 billion in US securities. Japan 's stakes in US securities is in trillions.

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 result:
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 th! ree time s 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. This is one of the reason for MNC's coming down to India , seeing the consumer spending.

'Saving is sin, and spending is virtue.'

But before you follow this neo economics, get some fools to save so that you can borrow from them and spend!!!

Management Lessons...

we all love stories and sometimes, these stories do have implicit meanings which we can digest and understand the rationale behind. They may sound like children's stories but in fact if you were to think in depth, they do apply in current corporate world. Read on....


Lesson One:

An eagle was sitting on a tree resting, doing nothing. A small rabbit saw the eagle and asked him, "Can I also sit like you and do nothing?" The eagle answered: "Sure, why not." So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.

Management Lesson:
To be sitting and doing nothing, you must be sitting very, very high up.



Lesson Two:

A turkey was chatting with a bull. "I would love to be able to get to the top of that tree," sighed the turkey, "but I haven't got the energy." "Well, why don't you nibble on some of my droppings?" replied the bull. "They're packed with nutrients."

The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch.

Finally after a fourth night, the turkey was proudly perched at the top of the tree. He was promptly spotted by a farmer, who shot him out of the tree.

Management Lesson:
Bull shit might get you to the top, but it won't keep you there.


Lesson Three:


A little bird was flying south for the winter. It was so cold, the bird froze and fell to the ground into a large field. While he was lying there, a cow came by and dropped some dung on him. As th frozen bird lay there in the pile of cow dung, he began to realize how warm he was. The dung was actually thawing him out! He laid there all warm and happy, and soon began to sing for joy.

A passing cat heard the bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.


Management Lesson:
(1) Not everyone who shits on you is your enemy.
(2) Not everyone who gets you out of shit is your friend.
(3) And when you're in deep shit, it's best to keep your mouth shut!

For ladies wearing high heels...

I find this article quite informative and useful for ladies who like wearing high heels regularly. It shows the posture when standing on both feet on flat surface as well as the effect of wearing high heels shoes.

High heel shoes are definitely one of the accessories that women today must have as part of complete wardrobe. However, it is also good to bear in mind of its negative effect when putting on high heels shoes. The higher the heels, the bigger pressure applied on the forefoot which may cause hips and spine out of alignment. After wearing for a long time too, women can feel pain on those feet as well. Hence, it is good if we can alternately wear high heels and flat shoes to prevent potential long term injury. Do take good care of our feet :)

Unusual weather yesterday

This is a scene you will typically see in movies but this happen quite real in an area nearby my place yesterday (April 2). Just what has happened to the global weather lately.. Few years back, this scene is unheard of but more of it happening....



Dark clouds over KL Tower and its surrounding


Gloomy...

Proton made its recall on Savvy

this appears to be the 2nd time for Proton to do a recall with this time is it Savvy. The recall is due to wheel bearing at the rear that may cause malfunctions to affected components. The first time involved Proton Waja due to faulty alloy wheels... Proton said it's just a precautionary measure only. Anyway, to be safe.. send it the car for inspection and if it's free, they'll replace for you free of charge... phew!!

Shah Alam [31 March 2008] - PROTON is recalling its Savvy cars to address a possible problem.

In line with PROTON's continuing commitment to quality, regular random checks are conducted on PROTON cars as part of its i.Care programme. The results from the most recent inspection brought to attention the possibility of water entry into the rear wheel-bearing which could lead to a malfunction of the affected components.

PROTON's Managing Director Dato' Syed Zainal Abidin Syed Mohamed Tahir said, "The safety and satisfaction of our customers is a primary concern. As a precautionary measure, we are recalling all Savvy's for inspection and repair. We do apologise to all the Savvy owners for any inconvenience".

The recall will affect a total of 34,000 Savvy cars and PROTON will conduct the necessary checks and replacements at no cost to the customer. All Savvy owners are advised to take their cars to the nearest PROTON EDAR or EON service branches for an inspection. This recall is purely a precautionary measure as the convenience and safety of its customers is PROTON's highest priority.

Customers are therefore encouraged to immediately contact the nearest Proton Edar or EON service branch for an appointment to have their cars inspected.

As an alternative, please call PROTON i-Care at 1-300-880-888. Our staff will be happy to answer any queries that you may have as well as assist in making an appointment with a service centre.

PROTON assures its customers that it appreciates the trust and confidence reposed by its customers in its products. PROTON sincerely regrets any inconvenience to its customers.

PROTON thanks all of its customers for their patience and understanding and their support.

View the full listing of Proton Edar and EON Service Centres.

How do you drive a car?

I don't know what to say when I see the pictures. How could parking a car become an accident instead. Worse, this is not in public parked areas or shopping malls where there will be cars waiting for their turn. This happen at office cark park, nobody is going to wait for you... you can literally take your own sweet time to park it...

I feel sorry for the person whose car was knocked by the Stop sign even though he had parked his car properly. I guess it's a new car as well... ARRGGGGHHHHHHHHH


Stupid driver not knowing how to park her car.
How did she get her license in the first place?



Close up view. I pity the owner of black Honda City

BMW Hamann

BMW
Hamann has constructed a fully-fledged aerodynamics package for the new BMW 6 Coupe, which clearly enhances the dynamic silhouette of the serial model. The distinctive front spoiler not only gives it an unmistakable look, it literally sucks the Hamann 645Ci HM 5.2 down onto the road. Wide side sillboards highlight the sporting look of the 6 Coupe and hint at the performance of the Hamann model. The powerful rear view, in particular, with the newly designed rear apron trim including diffuser and a perfectly integrated, specially developed exhaust system, set new standards. The rear and roof spoilers are not merely visual highlights, they also serve to ensure sufficient output on the rear axle of the Hamann 645Ci HM 5.2.