Greece crisis and Deconstructionism
Today when whole world is looking towards the Greece crisis let us
take a closer look at it. The exit of Greece many cause worry to
nations who have invested a huge money in their bonds. What is bond
anyway? We all must be familiar with borrowed capital. This practice
is normally used in private or government factories. They borrow
certain amount of money from shareholders or from citizens on a
promised and fixed rate of interest. It is considered to be a safe
investment. So far this was practiced for corporate but as we run
business houses we run the nations. To develop basic infrastructure
and industry small countries need funds. The courtesy gesture of other
countries does not yield currency. This comes in global business
etiquettes and international relations. Greece is defaulter of $1.73
billion. Greece will be out of the league of 19-country euro zone.
PM of Greek Mr.Alexis Tsipras has declared the referendum over the
weekend. The banks are shut down for a week and made a daily ATM
withdrawal limit of 60 Euros only. Indian Finance secretary Rajiv
Mehrishi worried about this economic crisis of Greece. He gave a hint;
this may trigger capital outflows from India. He is sure RBI will deal
with the situation judiciously.
India software and engineering companies will be affected as their
overseas counterparts will decrease the demand. The FDI and FII flow
of money in Indian currency will be slowdown. Countries like Portugal,
Ireland and Spain will feel the ripples as the foreign investment from
these countries will be withdrawn. Indian stock market will temporary
volatility and rupee might depreciate.
Being the strongest economy of the world, Indian economy will grow by
domestic demand. Most multilateral agencies found out Indian GDP
growth in 7-8% range. Tax evasion and corruption is the biggest reason
behind it.
Raghuram Rajan RBI governor assured “Indian economy will see through
any impact of the Greece crisis. Robust forex reserves, which are at
an all-time high of $355 billion, will cushion any possible impact of
the crisis.”
This borrowing money in the bonds of nation and printing the currency
is a symptom of deconstructionism. Being a nation it has, its own
treasure, assets and capital. Borrowing money in the guise of bonds
makes the nation more vulnerable. China is the biggest bond holder in
US economy. Fortunately in Indian we do not sell bonds for our
country. Bonds always put us at the risk of becoming defaulter. It can
be considered to be a foreign indirect investment. It can be withdrawn
at any time and we are on the streets.
This incidence has broken the backbone of Greece on political,
economical and social front.
All this has occurred out of political radicalism and led towards
economic misery. The organized crime, uncontrolled migration fueled
this process. The earlier culturally superior country has become weak
due the wind of deconstructionism. The very concept of borrowed
capital and increased imports, tax evasion and rustic corruptions are
the symptoms of post modern politics. All it led towards to breaking
the economy.
Greece may take a time to come back on track, job generation and
industrialization is the need of the hour. 0.40% increase of Greece
in Industrial production in 2015 April and India has 5%. Now we can
see the difference between two countries. India as 10.1 is the
unemployment rate and Greece has 25.4 %. India has 7.5% GDP growth and
Greece has 0.2%.
This exist may look bitter but it offers a new change to Greece
political canvas. They will find new political parties and new
leadership. Citizens will be more generous than before. This will lead
to their growth. We need to see them in long term. All developed
countries in Europe are willing to develop them only if they find no
corruption.
Today when whole world is looking towards the Greece crisis let us
take a closer look at it. The exit of Greece many cause worry to
nations who have invested a huge money in their bonds. What is bond
anyway? We all must be familiar with borrowed capital. This practice
is normally used in private or government factories. They borrow
certain amount of money from shareholders or from citizens on a
promised and fixed rate of interest. It is considered to be a safe
investment. So far this was practiced for corporate but as we run
business houses we run the nations. To develop basic infrastructure
and industry small countries need funds. The courtesy gesture of other
countries does not yield currency. This comes in global business
etiquettes and international relations. Greece is defaulter of $1.73
billion. Greece will be out of the league of 19-country euro zone.
PM of Greek Mr.Alexis Tsipras has declared the referendum over the
weekend. The banks are shut down for a week and made a daily ATM
withdrawal limit of 60 Euros only. Indian Finance secretary Rajiv
Mehrishi worried about this economic crisis of Greece. He gave a hint;
this may trigger capital outflows from India. He is sure RBI will deal
with the situation judiciously.
India software and engineering companies will be affected as their
overseas counterparts will decrease the demand. The FDI and FII flow
of money in Indian currency will be slowdown. Countries like Portugal,
Ireland and Spain will feel the ripples as the foreign investment from
these countries will be withdrawn. Indian stock market will temporary
volatility and rupee might depreciate.
Being the strongest economy of the world, Indian economy will grow by
domestic demand. Most multilateral agencies found out Indian GDP
growth in 7-8% range. Tax evasion and corruption is the biggest reason
behind it.
Raghuram Rajan RBI governor assured “Indian economy will see through
any impact of the Greece crisis. Robust forex reserves, which are at
an all-time high of $355 billion, will cushion any possible impact of
the crisis.”
This borrowing money in the bonds of nation and printing the currency
is a symptom of deconstructionism. Being a nation it has, its own
treasure, assets and capital. Borrowing money in the guise of bonds
makes the nation more vulnerable. China is the biggest bond holder in
US economy. Fortunately in Indian we do not sell bonds for our
country. Bonds always put us at the risk of becoming defaulter. It can
be considered to be a foreign indirect investment. It can be withdrawn
at any time and we are on the streets.
This incidence has broken the backbone of Greece on political,
economical and social front.
All this has occurred out of political radicalism and led towards
economic misery. The organized crime, uncontrolled migration fueled
this process. The earlier culturally superior country has become weak
due the wind of deconstructionism. The very concept of borrowed
capital and increased imports, tax evasion and rustic corruptions are
the symptoms of post modern politics. All it led towards to breaking
the economy.
Greece may take a time to come back on track, job generation and
industrialization is the need of the hour. 0.40% increase of Greece
in Industrial production in 2015 April and India has 5%. Now we can
see the difference between two countries. India as 10.1 is the
unemployment rate and Greece has 25.4 %. India has 7.5% GDP growth and
Greece has 0.2%.
This exist may look bitter but it offers a new change to Greece
political canvas. They will find new political parties and new
leadership. Citizens will be more generous than before. This will lead
to their growth. We need to see them in long term. All developed
countries in Europe are willing to develop them only if they find no
corruption.
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