October 6, 2015 No.3
https://www.facebook.com/mehtarahulc/posts/10153071550951922
Why $1 should be Rs 200? i.e. Increase Rs 5 every month so that it becomes Rs 200 in say next 28 months
.
Lets say we want to zero repatriation liability of about $800 billion, and repay the debt of about $400 billion. Then we have reserves of about $ 350 billion. So we are $850 billion short. And say we want to ensure that trade imbalance should zero within next 5 years. And we dont want more debt or more repatriation laibilities.
.
In such, case, do all the math ----- 1 dollar will be Rs 200.
.
The question is is NOT whether $1 should be 10 paise or Re 1 or Rs 200.
.
My point is --- it is time we stop taking debt , time we stop giving repatriation commitment and ensure that importers must pay by dollars earned by exports, which will ensure that trade imbalance is zero. Of course, doing all this within 1 day will only cause eceonomic earthquake. But all this can be done in 1-5 years.
,
IMO, we should not "default" on debt or default on repatriation commitments we have given. We should start repaying the debt and not take new ones. And we should start ending repatriation liabilities at the rate of say 15% a year so that in 7 years, it becomes zero. And we should stop issuing new repatrtaion liabilities overnight.
.
So FDI may (may) reduce . So so there will be scarcity of dollars. And and so prices of dollar will shoot --- it may even reach Rs 200 = $1.
.
Whatever it takes, we should get it over with. Otherwise, repatriation liabilties and debt trap will make things worse and worse in coming future.
https://www.facebook.com/mehtarahulc/posts/10153071550951922
Why $1 should be Rs 200? i.e. Increase Rs 5 every month so that it becomes Rs 200 in say next 28 months
.
Lets say we want to zero repatriation liability of about $800 billion, and repay the debt of about $400 billion. Then we have reserves of about $ 350 billion. So we are $850 billion short. And say we want to ensure that trade imbalance should zero within next 5 years. And we dont want more debt or more repatriation laibilities.
.
In such, case, do all the math ----- 1 dollar will be Rs 200.
.
The question is is NOT whether $1 should be 10 paise or Re 1 or Rs 200.
.
My point is --- it is time we stop taking debt , time we stop giving repatriation commitment and ensure that importers must pay by dollars earned by exports, which will ensure that trade imbalance is zero. Of course, doing all this within 1 day will only cause eceonomic earthquake. But all this can be done in 1-5 years.
,
IMO, we should not "default" on debt or default on repatriation commitments we have given. We should start repaying the debt and not take new ones. And we should start ending repatriation liabilities at the rate of say 15% a year so that in 7 years, it becomes zero. And we should stop issuing new repatrtaion liabilities overnight.
.
So FDI may (may) reduce . So so there will be scarcity of dollars. And and so prices of dollar will shoot --- it may even reach Rs 200 = $1.
.
Whatever it takes, we should get it over with. Otherwise, repatriation liabilties and debt trap will make things worse and worse in coming future.
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