|The Unreachable food limits !|
Yielding a profit by luring demands in limited supply is the trend of the very market that Warren Buffet asks us to invest in. Gold has now touched the nominal level and has less affected the GDP of developing countries as compared with the current prices of Necessities.
My question is:
Is Inflation actually the solution for this Problem?
Ans: Am Diplomatic!
Well, Amul casually increased it prices at Rs. 1 and Rs. 2 for each of its toned milk packets and Gold milk packets respc., Now that looks small, but they have a large long run profit margin. Analysis, cannot be done for now as the price rose on 27th Dec 2010, The date am writing this article. But Will this affect anything in the market? Will it affect the demand?
No, it wouldn’t. Amul is one of the leading companies in milk and Ice cream products, it nearly serves 60% of the Indian Population. It is equal to saying that it is among the necessaries like Tata Salt, Sugar by Ration shop, Parle G biscuit, Coke/ Pepsi soft drink etc... So, the Inflation here is actually not a solution, rather is virtual monopoly of the company. Because whatever increase is done, increases the profit margin, India hasn’t started to increase taxes, then what’s scaring Amul?
Onions have actually become costlier. It seems that IMF may soon use Onions as an International standard instead of gold (lol!), maybe the Times of India is right, we might have Onion jewelleries soon on display. It can make fake people cry too. It suits the function. But why is Onion Costly?
Ok, the non- economic students also know, that India is ‘Mixed Economy’ which has large concentration of wealth on agricultural sector and because of torrential rains in 2010, the Fields of Onions have actually faced more trauma of it than others. Now India is dependent on Pakistan for exports and Imports of the onions. Great!.
But was Inflation necessary?
Yes, it was because we need money for tips to the sailors who import it. Indian economy cannot pay the same with the heavy taxes and fines and Corruption which have been the most operational government duties in 2010.
India has seen a downfall in terms of money.
- Rajni anna has got 45cr for his 200cr budget film Robot that made a profit of 100 cr.
- Shah Rukh Khan is going for a millionaire movie Ra.1, after his heavy budgeted film "My name is Khan"
- Mr. Chidambaram (HM) has a net worth of some 27 cr, Now actors step in the shoes of politicians to make most of it. The status of economy is same. Celebs are heavily earning.
- Entrepreneurs are sky rocketing in money. Vijay Mallaya has bought a new yatch.
- Mukesh Ambani making a 27 Flr independent house, the price of his area Nariman pt in Mumbai has a net rate of land at 85000 to 90000 Rs/ sq.ft.
- Kalamadi, well you know him, The IOA chief and mastermind of the biggest attack, THE COMMONWEALTH GAME, eventhough successful, was actually the biggest proof of loophole of corruption in India.
- Every Reality show gives away 5 to 10cr as prize money to its three top winners and I watch a new reality show every hour in every channel. So, where the Hell is money actually coming and why is there Inflation? Please if I am wrong in Economy understanding, then help me,
Because I don’t believe in Privatisation that runs parallel with Globalization because what I believe is a successful machinery of Indian authorization on economic mobilization.