The Secret of global recession!!!

Too much gambling on return ON money has put them to begging for return OF money.

Dear All,

As you know that we facing a severe phase of global recession, markets are tanking, corporate jars have sleepless nights and the purchasing power of the common people is going down day by day.
What exactly has happened to our economy?
Let’s understand it.

A friend of mine forwarded this mail to me on what is an asset bubble or an inflated market. I thought it would be worth sharing. It will help you understand the reality of recession and functioning of the market economy.

Story Begins…

Once there was a little island country. The total money in circulation was 2 dollar as there were only two pieces of 1 dollar coins circulating around.
1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.
2) B decided to purchase the land from A for 1 dollar. So, A and C now each own 1 dollar while B owned a piece of land that is worth 1 dollar.
The net asset of the country = 3 dollar.
3) C thought that since here is only one piece of land in the country and land is non produce able asset, its value must definitely go up. So, he borrowed 1 dollar from A and together with his own 1 dollar, he bought the land from B for 2 dollar.
A has a loan to C of 1 dollar, so his net asset is 1 dollar.
B sold his land to C of 1 dollar, so his net asset is 2 dollar.
C owned the piece of land worth 2 dollar but with his 1 dollar debt to A, his net asset is 1 dollar.
The net asset of the country = 4 dollar.
4) A saw that the land he once owned has risen in value. He regretted selling it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollar from B and acquired the land back from C for 3 dollar. The payment is by 2 dollar cash (which he borrowed) and cancellation of the 1 dollar loan to C. as a result, A now owned a piece of land that is worth 3 dollar. But since he owned B 2 dollar, his net asset is 1 dollar.
B loaned 2 dollar to A. So his net asset is 2 dollar.
C now has the 2 coins. His net asset is also 2 dollar.
The net asset of the country = 5 dollar. A bubble is building up.
5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollar. The payment is by borrowing 2 dollar from C and cancellation of his 2 dollar loan to A.
As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollar.
B owned a piece of land that is worth 4 dollar but since he has a debt of 2 dollar with C, his net asset is 2 dollar.
C loaned 2 dollar to B, so his net asset is 2 dollar.
The net asset of the country = 6 dollar. Even though, the country has only one piece of land and 2 Dollar in circulation.
6) Everybody has made money and everybody felt happy and prosperous.
7) One day an evil wind blowed. An evil thought came to C’s mind. “Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollar in circulation, I think after all the land that B owns is worth at most 1 dollar only.”
A also thought the same.
8) Nobody wanted to buy land anymore. In the end, A owns the 2 dollar coins, his net asset is 2 dollar. B owed C 2 dollar and the land he owned which he thought worth 4 dollar is now 1 dollar. His net asset become – 1 dollar.

C has a loan of 2 dollar to B. But it is a bad debt. Although his net asset is still 2 dollar, his Heart is palpitating.

The net asset of the country = 3 dollar again.

Who has stolen the 3 dollar from the country ?
Of course, before the bubble burst B thought his land worth 4 dollar.
Actually, right before the collapse, the net asset of the country was 6 dollar in paper. His net asset is still 2 dollar, his heart is palpitating.

The net asset of the country = 3 dollar again.

9) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollar bad debt to B but in return he acquired the land which is worth 1 dollar now.

A owns the 2 coins, his net asset is 2 dollar. B is bankrupt, his net asset is 0 dollar. (B lost everything) C got no choice but end up with a land worth only 1 dollar (C lost one dollar) The net asset of the country = 3 dollar.

There is a however a redistribution of wealth.

A is the winner, B is the loser, C is lucky that he is spared.


***End of story***

Now I don’t want to preach anymore….I would love to know your observation of the current global recession.

Regards,
Sanjay Nirupam

War against Terror!!! How?

As it is known that the terrorists came from Pakistan/ were trained in Pakistan/ were financed from Pakistan/ have any connection with Pakistan then an ACTION has to be taken. I personally strongly want the government to, in various ways, take steps to stop the perpetration of terrorism from Pakistan.

We have to take a pledge that the Mumbai terror attack should be the last.

What are the possible options? Is war an only option? If yes then it kills innocent people. And have we given a thought to the fact that both the countries are equipped with Nuclear weapons? Selected strike on the terror camps is another option but if Pakistan doesn’t allow us then?

Is their only a diplomatic way left then? Only pressure should be used? Should the international community take the final call against Pakistan under the leadership of United Nations?

Will cutting or reducing all relationships be it commercial, cultural, sports, etc. stop or reduce terrorism in any way? How wise is banning of Pakistani artists from coming to India?

Are we going to achieve anything by calling back our High Commissions and shutting down Indian missions in Pakistan? Will cutting all diplomatic relationships lead to Pakistan taking any actions?

Post Parliament attack I have noticed that every time there is a heated discussion between the two nations a particular suggestion always pops up i.e. Scrapping the Indus water treaty. Again after Mumbai terror attack this option is very very much available to us to suppress Pakistan. Even a percent cut in the water supply will leave 1.4 million thirsty in Pakistan. But what about the excess water that would be blocked in our land. We don’t have any mechanism to hold this extra stock of water. Still the question remains whether India should demand to scrap or re nogitate Indus Water Treaty with Pakistan by virtue of which Pakistan gets its supply of water from Indian soil.

Would any of these steps make Pakistan put a stop to the terror breeding spots? How do we make Pakistan comprehend that Terroirsm is detrimental to both the nations equally?

I would like to know your opinion as to how to go on a war against terrorism?



Regards
Sanjay Nirupam

Constructive use of the anger, fury, rage……That should be the outlook now.

I have noticed in various media channels- news channels, newspapers, radio internet…that the faith in the leaders of the country has vanished.

First, First, First

I appreciate your anger, I understand your frustration, and I congratulate you to now be awake. [as some people put it]. Till the society, the common man accepts the status quo or the exploitation by politician, [a few exceptions I would mention though], politicians will continue to do so. But if the society agitates then it makes a difference.


Lighting candles, gathering at Gateway of India and shouting slogans, wearing black or white, writing aggressive status messages on networking sites like facebook, orkut, gtalk is off course an appropriate way to express the anger of the society. It shows that still our society is live, full of vigor and awake unlike the power hungry politicians.

If you think this will decrease the level of corruption and increase the level of accountability and the competency of the political class please go ahead with it.

BUT BUT BUT,

If you think these are ways of expressing your emotions of all kind but is not really going to make any difference in the country then please read ahead.

Like I said I appreciate your anger I also ask you today to use it in a constructive manner.

Don’t blame the system from outside, become a part of it. I am not asking you to leave your jobs, stop living your normal lives, without doing so you can be a part of it.

Our system needs intelligent, creative and vigorous people like you. You can do a lot more – action speaks louder than words.

If any of the above made sense to you then respond. I’ll guide as to how you can do your bit to strengthen our democracy and make the political class more responsible and accountable. So that we all live in a secure, developed and prosperous environment.

Regards
Sanjay Nirupam

Don’t Just Blame the system, be a part of it now. Sterilize it. Sanitize it.

I know Condemning it is not enough

It is not just a terror attack. What happened in Mumbai on 26th Noveber 2008 is an attack on the country’s democracy, sovereignty, integrity and also an assault on every peace loving citizen of our country.

I condemn this cowardly and destructive act.

Before I write more on what we need to do, I would like to mention a few things. The terrorists entered India through the water front – the sea route. I don’t intend to start a blame game and pass the buck on to someone else. But technically the security aspect of the sea route comes under the naval system- Marine police, coast guard and Indian Navy.

Also the state government had some information or inputs on Mumbai being a target but there were no precise inputs. Mumbai as a city has always been targeted by terrorists for which the state Government was always concerned.

It is high time that our intelligence network, security agencies and police constabulary are made well equipped. High standards of security needs to maintained so as to be capable of facing global terrorism . Improved technology, upgraded systems, high quality ammunition should now be provided to our security men. Not just this but a lot of other actions will have to be taken.

Dear friends and citizens of Mumbai I feel hurt too. I share the same grief as you do. And I pray for strength within all of us.

We have lost around 200 lives but I salute our NSG commandos, Mumbai Police and our Marcos.

And hence we are organizing a condolence meeting tomorrow – Sunday November 30, 2008 – at 10 a.m. in Tilak Bhavan, Dadar. I ask you to join us. I understand this is no compensation but it could be one way for us to show gratitude to those bold and courageous men of our country who lost their lives to protect us.

With a heavy heart,
Sanjay Nirupam

Let us not blame the whole religion for an act of an individual

Arrest of Sadhvi Pragya in Malegaon bomb blast of 29th Sept. is a watershed moment of Indian socio-political life.

Hindu ideologues will have to redefine their ideas of patriotism where in the name of hardcore nationalism sheer hatred has been spread against other religious communities. Also after each terrorist attack BJP will have to think twice before dragging any specific community in it.

Terrorism does not have a religion and terrorist don’t belong to any community .It is a fact. But Sangh Pariwar never agreed to this. Rather they always engaged themselves in running a campaign that- ‘All the Muslims are not terrorists but why it is so that all the terrorists are found to be Muslims?’

Now the fact is Mumbai ATS has arrested 11 people in the context of Malegaon blast conspiracy. All of them are Hindu. What would be the argument of Sangh Pariwar now? Does it mean all the Hindus are terrorists?

As a matter of fact I strongly object to the terminology being usually used in public discourse as Hindu terrorist or Muslim terrorist. Let us not blame the whole religion for an act of an individual. Anybody who has faith in any religion can not think of killing someone. But at the same time I do accept the fact that hardliners do exist in our society in every phase of our history but all of them were never necessarily a terrorist.

Do you agree?

Regards,
Sanjay Nirupam

Thank you

Dear All,

I would like to take this opportunity to thank all those who came and attended the Chhath Puja keeping all biases aside. I would also like to thank all those who assisted me in making the Puja a memorable event- The Supreme Court, Govt. of Maharasthra, Hon’ble Chief Minister, Mumbai police, the District Collector my Staff and all my well-wishers.

I also want to share this email I got from a girl.

Dear Mr. Nirupam,

I am Shweta Verma [name changed]. I happened to have my weekly off on the day of the Chhath Puja so I attended it with a couple of friends of mine. I clicked a few pics as well. I experienced many things being there. Would like to share them with you.

Firstly as I grabbed a ric I noticed a red tika on the forehead of the driver. Something in me immediately made him ask, “ Kaka tumhi marathi aahat?”[uncle are u a marathi]

Ric fella-yes

Me-So how come u said yes to go to juhu beach?

Ric fella- why I shouldn’t go?

Me- Don’t u know about the puja happening their

Ric fella- yes I do.

Me- Uncle I am a north Indian…how come u letting me travel in ur vehicle.

Ric Fella- what happens with that. I will get paid for my hard work. How does it matter what caste u r.

Me-don’t u know bout the recent happenings in Mumbai. Dont u feel irritated that we have come from north India and other ric fellows too.

Ric fella- if some one works hard why I should have a problem.

I will like to add that the entire conversation was done in my not so good Marathi.

Here’s his pic…

On the way to Juhu Beach I noticed many people traveling with sugarcane and other material for the Puja. Looked fascinating. So took pics of them too.

Once I reached there I was aghast to look at the crowd. I used to see it on TV during other festivals….but for a festival which is not of maharashthra origin and still have this much strength was amazing. I was later told by someone that this was 75 % of the strength of the past years.

I managed to browse through the crowd and get a glimpse of you offering your prayers to the Surya dev. It was a lovely sight. A man with power- political….influential person…did fear someone…did bow down in front of someone…. GOD. I also saw a huge crowd surrounding you trying to pray along side you and your security guards struggling to manage them…a little harshly. I got irritated….but was glad to see the same irritation on your face, and how u told ur security guards to not treat others this way. A sign of humanity I must say. I clicked a few pics of yours but I m sure you must be having them in abundance. So I am sending you few other pics.

Before leaving I managed to get to the back of the stage n clicked a few pics of the crowd.

In all I want to say….I m not a very religious person or very interested in politics either. But I appreciated the way you carried out the entire ceremony and managed the whole occasion with grace and dignity. A few more leaders like you I hope could emerge.

Keep up the good work.

Shweta Verma.

Thank you Shweta for attending the Puja and for your lovely mail and photos. I am humbled. I am posting some pictures from my side too.

Thanks and Regards

Sanjay Nirupam

All are welcome…

Strangely for some political reasons a Puja has been used as a bait to get the political thoughts out strongly. Right thoughts or wrong, I am no one to comment. But I can definitely put my foot down when the medium used is a scared thing. That would mean using religious sentiments of people to create divide between the masses.

A cosmopolitan city- and some political parties expect that all would live, celebrate pray in a particular manner only. All have their mannerisms or rituals that they would wish to follow.

However I am very much in line with the thought that there should be no display of political power in the name of religious prayers and ceremonies. And none of my previous year’s ceremonies were used to show that a massive number of people could be gathered on my calling. They all came there to offer their prayers to their deity.
You got it. This is in reference to Our Famous, traditional Chhath Puja.

Chhath Puja is one of the biggest religious celebrations of the north Indian migrants in the city. When I started celebrating it at a large scale for the first time in 1998 the city was ignorant about it. Now it’s a great honour for all the 50 lacs migrants that the puja has made its place in the calendar of city festivals.

I wish to welcome all of you to a religious ceremony on the 4th of November from 4 p.m. onwards on Juhu Beach, Juhu, Mumbai.

Lets celebrate keeping all bias aside with all devotion and commitment.

Thanks and Regards,
Sanjay Nirupam