See: http://bharatkalyan97.blogspot.com/2014/07/indias-financial-system-architecture.html
The full text of the report warning of an impending national crisis to the financial system by Gitanjali Swamy and R Vaidyanathan is at http://ssrn.com/abstract=2443262
There are no indications that this warning reported on July 2 has been effectively acted upon by RBI and Finance Minister.
Appointment of a committee to review options for financing India Uninc.is a welcome move but has to be put on fast track with immediate action by RBI to stem the rot in the Banking system which is close to breaking-up with unbearable load of non-performing assets (i.e. loans given to support the corrupt chamchas of SoniaG regime). The ineffective steps to recover the bad loans are likely to impact on the ability to effectively finance India Uninc., thus leading to a financials spiral of decreased confidence of the investors and possible collapse of the stock market and loss of value of equity-based and debt-based financial instruments. Such a loss of confidence will negatively impact the growth prospects and increased investments needed to counter the other demon: stagflation (i.e. inflation-led stagnant growth).
These two impending dangers: bad loans PLUS stagflation are likely to be serious risks posed to the legitimacy of NaMo governance and the ability to achieve a two-digit growth rate for the next 5 years.
The time to act is NOW to avoid the types of Tiger economy financial crisis of the 1980's and the Dot.com led boom and mortage system collapse in US economy of 2008. US is yet to recover from the dot.com burst. There are signs that dot.com burst is impending in Bharat given the current irratioal exuberance evidenced in the stock-market speculative activities boosting up the Sensex and giving false hopes of employment to dot.com companies like Flipkart which are not likely to be sustainable. The effect on unemployment given the limited impact of India Inc. on the economy may be marginal but the spill-over effects will slow down the growth in the employment rates which is the ONE GOAL which NaMo governance should focus on.
NaMO, time is NOW. Declare a National Water Grid (NWG) project on a fast track the way Gen. Eisenhower did with his National Highways Project after the end of the Second World War. Such a move for NWG will immediately assure employment to a million youth in Bharat and stem the ill-effects of the impending crisis in the financial system.
It is shocking that the national leaders and policy makers have not joined a meaningful debate on the action to be initiated to counter the warnings prognosis by Gitanjali Swamy and R Vaidyanathan.
Think Tank entities like ACACI chaired by Dr. Subramanian Swamy have a national responsibility to warn and guide the NaMo government on the immediate fast track program to be put in place to mitigate the negative effects of stagflation and impending banking system collapse.
If RBI Governor and Enforcement Directorate/Finance Ministry have not warned NaMo on this, the inactions should be declared a failure of responsibility to serve the nation.
The state of the financial system is too rotten even for tears thanks to the loot of the nation indulged in by the SoniaG chamcha and anti-national operatives. Decisive action is called for to deploy the restituted illicit wealth for a massive investment program leading to employment generation to millions of unemployed youth of Bharat.
Rest is claptrap and empty admiration for the Swarajyam kraanti achieved with such magnificence. The opportunity provided by the kraanti should not be frittered away with inaction.
NaMo, time to act is NOW. NaMo should announce what he proposes to do to fix the broken financial system, in his August 15, 2014 speech to the nation from the Red Fort.
Kalyanaraman
The full text of the report warning of an impending national crisis to the financial system by Gitanjali Swamy and R Vaidyanathan is at http://ssrn.com/abstract=2443262
There are no indications that this warning reported on July 2 has been effectively acted upon by RBI and Finance Minister.
Appointment of a committee to review options for financing India Uninc.is a welcome move but has to be put on fast track with immediate action by RBI to stem the rot in the Banking system which is close to breaking-up with unbearable load of non-performing assets (i.e. loans given to support the corrupt chamchas of SoniaG regime). The ineffective steps to recover the bad loans are likely to impact on the ability to effectively finance India Uninc., thus leading to a financials spiral of decreased confidence of the investors and possible collapse of the stock market and loss of value of equity-based and debt-based financial instruments. Such a loss of confidence will negatively impact the growth prospects and increased investments needed to counter the other demon: stagflation (i.e. inflation-led stagnant growth).
These two impending dangers: bad loans PLUS stagflation are likely to be serious risks posed to the legitimacy of NaMo governance and the ability to achieve a two-digit growth rate for the next 5 years.
The time to act is NOW to avoid the types of Tiger economy financial crisis of the 1980's and the Dot.com led boom and mortage system collapse in US economy of 2008. US is yet to recover from the dot.com burst. There are signs that dot.com burst is impending in Bharat given the current irratioal exuberance evidenced in the stock-market speculative activities boosting up the Sensex and giving false hopes of employment to dot.com companies like Flipkart which are not likely to be sustainable. The effect on unemployment given the limited impact of India Inc. on the economy may be marginal but the spill-over effects will slow down the growth in the employment rates which is the ONE GOAL which NaMo governance should focus on.
NaMO, time is NOW. Declare a National Water Grid (NWG) project on a fast track the way Gen. Eisenhower did with his National Highways Project after the end of the Second World War. Such a move for NWG will immediately assure employment to a million youth in Bharat and stem the ill-effects of the impending crisis in the financial system.
It is shocking that the national leaders and policy makers have not joined a meaningful debate on the action to be initiated to counter the warnings prognosis by Gitanjali Swamy and R Vaidyanathan.
Think Tank entities like ACACI chaired by Dr. Subramanian Swamy have a national responsibility to warn and guide the NaMo government on the immediate fast track program to be put in place to mitigate the negative effects of stagflation and impending banking system collapse.
If RBI Governor and Enforcement Directorate/Finance Ministry have not warned NaMo on this, the inactions should be declared a failure of responsibility to serve the nation.
The state of the financial system is too rotten even for tears thanks to the loot of the nation indulged in by the SoniaG chamcha and anti-national operatives. Decisive action is called for to deploy the restituted illicit wealth for a massive investment program leading to employment generation to millions of unemployed youth of Bharat.
Rest is claptrap and empty admiration for the Swarajyam kraanti achieved with such magnificence. The opportunity provided by the kraanti should not be frittered away with inaction.
NaMo, time to act is NOW. NaMo should announce what he proposes to do to fix the broken financial system, in his August 15, 2014 speech to the nation from the Red Fort.
Kalyanaraman