Indian Education: Actually Terrible !!! 1769

On Thu, 27 Jul 2006, Kamal R. Prasad

"liquidity aka money supply" is wrong. Liquidity in the wiki definition carried a lot of contextual meanings.

You have stated so many times that the US govt prints money all over the place as if it is a bad thing and it hurts the world. See below...

How about you think about something else besides fractional reserve banking. How about checks and credit cards. Did you know they had checks and credit back in ancient Greek days (in Durant's volume 2)? When ordinary citizens or anyone who has a credit card or a checking account uses the credit card or writes a check, they are creating money, too. At least temporarily. How many billions of dollars created by credit cards and checks? See those M numbers the fed releases. When a guy buys something with a check and tells the seller "don't deposit the check for 30 days" hes creating money at least temporarily. Multiply that by tens of millions of people and you will have billions of dollars worth of real transactions based on money that does not exist. Not backed by anything. Its a big "float" and you've got all of this in India, too, and its growing. And, its very complicated.

How about you think about stock. A company prints share certificates and sells that piece of paper to you for dollars. They got real money, and you got a piece of paper. After that its like an antique auction. If other people want that antique paper, they will buy it from you for more than you paid for it, or in a crash, you'll get much less money. How much money was lost in the India stock market crash a month ago? Who was invested in it? They took a bath. And, I don't mean with water. And, what happens? The company gets the money to build a building in an IPO. After that, shareholders migh make money or lose money. Just remember, with that piece of paper, you cannot go down to that company and take out a window, or some bricks, or some inventory, or furniture.

Two very different kinds of slavery and in the second case it is technically wrong to call it slavery. In the rug factories, the kids are all locked up at night and can't go away no matter what. All those H1Bs, etc., are being exploited, legally, for sure but every one of them does not have a chain on his leg and locked to a chair or a table. They can quit any time but then they are obligated to leave if they don't want to be illegal. And, we've got some maybe 6% of people in the USA here illegally. Mostly Hispanic.

is perpetuated with help from the US govt. Your govt

Our businesses lobby our govt all the time for favors, subsidies, laws, tricks, and in all of the powerful countries in the world the same thing goes on.

I have no idea why you think an alien should come here under any circumstance and become a citizen with full rights the very moment they come off the boat. But, I can tell you that many aliens do come here and have gotten on our welfare rolls and gotten benefits without being citizens and most of our own citizens can't do this.

Hah. There is no legislation to facilitate illegal aliens here, either. They just come and float around. We don't have enough police to find them, but our laws are changing and in some communities they are telling police to look for illegal aliens and prosecute them.

For Indian rug factories, the owners are probably making more money because all they do with the kids is feed them cheap food and lock them up in some shed at night and don't pay them any money. At least the H1Bs get some money.

You have to understand there is another side to these funny laws and I sympathize with this side. A guy comes over here because an employer wants him (because he is cheap, not better) and the guy coming says he wants to work, but if the law does not lock the guy to the employer, then the guy gets into this country with expanded rights and the employer gets cheated. All that paperwork, maybe some fees, and the employer gets nothing. There has to be some "lock" on the arrangement. And, all of this is very very controversial from all of the sides that I've heard about. Lots of disagreement.

I can tell you that just one block from my wife's office in town, and going accross the whole town of 6,000 people there are 3,000 mostly guatemalans (hispanics) and I'm told that 90% of them are illegal. They dump their kids (they are called "anchor babies" because if they have a kid born here, then they can still be illegal, but they can't be deported) into our schools where taxpayers are paying the bill. Whether the pay that these illegals get gets reported to the government is unknown because I don't follow them around with a gun and tell them to show me their boss and then maybe the boss shows me fake books. Its a big mess.

What rights do they have? Well, they could vote if they produced fake documents and not discovered. I know a local policeman says they get into knife fights and so it needs an extra few police to handle that. The hospital emergency rooms give them free service if they walk in (I can't do that). The illegal ones all just move from one job to another. I see lots of them (I saw a bunch last sunday, working on bricks and cement on a sidewalk project. They were probably geting $9-10-hr cash, no deductions, no benefits, no taxes, no IRS, all speaking Spanish to each other and who hired them is making fake documents to show the IRS if they ever get audited). Or, maybe they work 1-4 of a year to get their "quarters" in with social security so if they stay here all their lives, then they get social security retirement back in Mexico and they didn't pay in all that was required of them. I think its not so bad RIGHTS.

You have to show me statistics on how many actually are found and deported. Its a very small number. Even the Chinese come here on student visas, I've heard, then they jump the visa. Get lost in Chinatown.

Some even come on visitor and tourist visas. So they enter the country legally, maybe stay illegally, but at least they enter legally.

If

We get tons of arguments every day in our newspapers and the congress is arguing all the time about this.

I've looked at some of them. We have a lot of "highly regarded" fellow citizens, like W, who I have a very low regard for.

So you said liquidity aka money supply (which is wrong) and then you said if liquidity goes up, then house prices would go up. I think that, too is wrong. House prices can go up if there is mbutt psychology where people think house prices are going up just like share prices for some company goes up. We had a couple of periods like this in the past. The stock market went into a bubble around 2000. In Japan, in the 1990s they had a big real estate bubble, too. You had your India Senlove bubble a month ago. What kept it from getting worse is that the exchange was shut down. Same in Russia. Their stock market cratered at the same time. It was in the newspapers.

If you want to say that a jump in money supply causes inflation, then fine, I'll go along with that. But liquidity...I think the wiki definition was OK. buttets can be illiquid or liquid. You can always ALWAYS take illiquid buttets to a bank and put them up for collateral for a liquid load, so its not an issue. We've got tons of home equity loans in the USA for people with illiquid real estate buttets and the bank takes equity from the owners and loans them real (liquid) money. Why are you confused about this?

You should look at China's pegged Yuan and ask them about their weak currency policy. And, look at your own Rupee which is not yet fully convertible. And, you should look at your own country which has not opened up your markets yet (I've read a bunch of articles on the failed WTO talks and your country was named as one that wanted us to lower tariffs on imported farm products but did NOT want to open Indian markets to the world). So, don't point your finger at us.

Money printing is done by your govt in

Yeah, I've acknowledged that Bush & congress can spend money that the govt doesn't have. But, you don't understand, yet, how all the other mechanisms (fractional reserve banking, credit cards, check books, etc) that people can spend money that doesn't exist and all that plays a roll in expanding our money supply, too. not just our government. And, all I'm reading is that all of this is spreading like wildfire in India and China, so look in the mirror before you point your finger.

They can print as much money as they like because it does

Why don't you understand that FDI works both ways? European companies and Canadian companies are being bought with USD every day. Europeans and Canadians are buying US companies every day with USD.

Do

Tell me this: Do you think there is no inflation anywhere but the USA?

Tell me this: Did you know that in India you guys just raised interest rates? Do you know why this happened?

Then how come we are living a generally fine standard of living and why are we getting millions of illegal aliens breaking laws to come here to live?

You are just pressing a button on yourself that starts a robot voice that says this. You are not learning anything about modern finance. And, you are failing to undestand that the same thing is happening in India and China. How do you get 8-9% growth rates per year in India and China? Is it in your newspapers that 60,000 tons of gold is being mined somewhere and brought to wherever your country has its gold? Silver? Is that in your newspapers? I think there is not enough gold in the world to back up all the currency.

And, for every Paul O'Neil there is another guy who says "not to worry".

You are not reading the wiki definition.