Money Money !!

Money is the vital factor that drives our lives. In fact, we have started to believe that the search and fulfillment of life depends solely on the accumulation of wealth. Although Yogic and Religious Gurus spread the need of Inner Engineering, Health and getting to know the divine power, we have always ignored them and felt that Money as the only element to seek and have it as our destiny. Since it gives all the worldly powers of life, we have lost ourselves in it. We run behind it like animals. Our milestones and targets are about getting enough of it. Since it speaks volumes in our daily life, we have become a product/slave of it. We spend almost half our day at work and it directly involves in doing business. Thus, it has become the integral part of our life and we spend our time in accumulating it.

Let us look at this in a witty way about how the economy drives us. How we are manipulated and how we lose/gain money. The EURO is getting weaker and the European society is on the verge of breaking into individual nations. It hasn’t really helped the economy and enough has been done to prevent the break by fund raising and allocation by the well placed European countries.  So, the future of EURO is bleak. Let us look at the effect on India due to various scenarios.

• A strong US Dollar – Rise in US Stock Markets – Weak EURO and INR
• A strong US Dollar – Rise in Global Commodities price – Petrol/Diesel Price hike
• A strong US Dollar – Investment goes into Developed Markets – BRICS go down – INR down
• INR down – Fiscal Deficit rises – Inflation goes high – Petrol/Diesel Prices go up
• INR down – Sensex/Nifty tumbles
• INR down – High Inflation – Bank lending Interest rates go up – Customers/Loans affected
• INR down – FD/RD interest rates go down, Housing/Personal loan rates go up
• INR down – Imports price go up – Manufacturing rates go up – Prices shoot up
• INR down – Food/Vegetables rate shoot up – Govt. increases interest rates
• Global Oil prices go up – Production impacted - Manufacturing rates go up – Prices shoot up
• INR down – Gold Prices go up
• US Dollar down - Gold Prices go up
• Gold Prices go up – Stock Market tumbles
• US Dollar down – INR goes up – Investment into BRICS happen – Inflation gets low
• US Dollar down – Indian IT Exports and Profits take a hit
• US Dollar down – Oil prices take a bow – Indian Manufacturing companies book profits
• US Dollar down – Global Investors prefer US bonds – Global markets go down
• INR down – Tax goes high - PF, LTCG, GST taxed
• INR down – Indian Manufacturing companies profit goes down
• INR down – Small/Medium scale companies affected

Ultimately whether US$ goes high/low, INR goes high/low, Oil/Gold prices go high. Inflation in India goes high. High Taxes are levied. Basic commodity prices go high. Food Inflation goes high. Interest rates for long term investments go low. Lending Interest rates go high. Stock Market tumbles. Investors’ wealth in the stocks take a hit.

If the Government formed in India is stable and is likely to continue for full term, then the stock markets get profitable. If Black Money is brought inside the country and if invested into stocks then the markets and investors’ wealth grows. Between 2003-2013, during the Congress rule in India, massive amounts of investors’ wealth dropped. None of the above factors were suitable for our economy and most of the companies ran into loss. Whatever happens, finally the loss is borne by the common man in India.