Humor-traffic vows by a dutchman from baan,ne in benelux,he spent two years in hydrabad!!

For the benefit of every Tom, Dick and Harry visiting India and daring to drive on Indian roads, I am offering a few hints for survival.. They are applicable to every place in India except Bihar, where life outside a vehicle is only marginally safer.

Indian road rules broadly operate within the domain of karma where you do your best, and leave the results to your insurance company. The hints are as follows: Do we drive on the left or right of the road? The answer is "both".

Basically you start on the left of the road, unless it is occupied. In that case, go to the right, unless that is also occupied. Then proceed by occupying the next available gap, as in chess. Simply trust your instincts, ascertain the direction, and proceed. Adherence to road rulesleads to much misery and occasional fatality.

Most drivers don't drive, but just aim their vehicles in the generally intended direction. Don't you get discouraged or underestimate yourself except for a belief in reincarnation, the other drivers are not in any better position. Don't stop at pedestrian crossings just because some fool wants to cross the road. You may do so only if you enjoy being bumped in the back. Pedestrians have been strictly instructed to cross only when traffic is moving slowly or has come to a dead stop because some minister is in town. Still some idiot may try to wade across, but then, let us not talk ill of the dead.

Blowing your horn is not a sign of protest as in some countries. We horn to express joy, resentment, frustration, romance and bare lust (two brisk blasts), or just mobilize a dozing cow in the middle of the bazaar. Keep informative books in the glove compartment. You may read them during traffic jams, while a waiting the chief minister's motorcade, or waiting! for the rainwater to recede when over ground traffic meets underground drainage.

Occasionally you might see what looks like a UFO with blinking colored lights and weird sounds emanating from within. This is an illuminated bus, full of happy pilgrims singing bhajans. These pilgrims go at breakneck speed, seeking contact with the Almighty, often meeting with success.

Auto Rickshaw (Baby Taxi):

The result of a collision between a rickshaw and an automobile. This three-wheeled vehicle works on an external combustion engine that runs on a mixture of kerosene oil and creosote. This triangular vehicle carries iron rods, gas cylinders or passengers three times its weight and dimension, at an unspecified fare. After careful geometric calculations, children are folded and packed into these auto rickshaws until some children in the periphery are not in contact with the vehicle at all. Then their school bags are pushed into the microscopic gaps all round so those minor collisions! with other vehicles on the road cause no permanent damage. Of course, the peripheral children are charged half the fare and also learn Newton's laws of motion en route to school. Auto-rickshaw drivers follow the road rules depicted in the film Ben Hur, and are licensed to irritate.

Mopeds:

The moped looks like an oil tin on wheels and makes noise like an electric shaver. It runs 30 miles on a teaspoon of petrol and travels at break-bottom speed. As the sides of the road are too rough for a ride, the moped drivers tend to drive in the middle of the road; theywould rather drive under heavier vehicles instead of around them and are often "mopped" off the tarmac.

Leaning Tower of Passes:

Most bus passengers are given free passes and during rush hours, there is absolute mayhem. There are passengers hanging off other passengers, who in turn hang off the railings and the overloaded bus leans dangerously, defying laws of gravity but obeying laws of surface tension. As drivers get paid for overload (so many Rupees per kg of passenger), no questions are ever asked. Steer clear of these buses by a width of three passengers.

One-way Street:

These boards are put up by traffic people to add jest in their otherwise drab lives. Don't stick to the literal meaning and proceed in one direction. In metaphysical terms, it means that you cannot proceed in two directions at once. So drive as you like, in reverse throughout, if you are the fussy type.

Lest I sound hypercritical, I must add a positive point also. Rash and fast driving in residential areas has been prevented by providing a "speed breaker"; two for each house. This mound, incidentally, covers the water and drainage pipes for that residence and is left un tarred for easy identification by the corporation authorities, should they want to recover the pipe for year-end accounting.

Night driving on Indian roads can be an exhilarating experience for those with the mental make up of Genghis Khan. In a way, it is like playing Russian roulette, because you do not know who amongst the drivers is loaded. What looks like premature dawn on the horizon turns out to be a truck attempting a speed record. On encountering it, just pull partly into the field adjoining the road until the phenomenon passes.

Our roads do not have shoulders, but occasional boulders. Do not blink your lights expecting reciprocation. The only dim thing in the truck is the driver, and with the peg of illicit arrack (alcohol) he has had at the last stop, his total cerebral functions add up to little more than anaught. Truck drivers are the James Bonds of India, and are licensed to kill.

Often you may encounter a single powerful beam of light about six feet above the ground. This is not a super motorbike, but a truck approaching you with a single light on, usually the left one. It could be the right one, but never get too close to investigate. You may prove your point posthumously. Of course, all this occurs at night, on the trunk roads. During the daytime, trucks are more visible, except that the drivers will never show any Signal. (And you must watch for the absent signals; they are the greater threat). Only, you will often observe that the cleaner who sits next to the driver, will project his hand and wave hysterically. This is definitely not to be construed as a signal for a left turn. The waving is just an statement of physical relief on a hot day.

If, after all this, you still want to drive in India, have your lessons between 8 pm and 11 am-when the police have gone home and - The citizen is then free to enjoy the FREEDOM OF SPEED' enshrined in the constitution!!.

Howsit???

Homor-Annoying truth........

Subject: Barber & Asian Americans

There is this good ol' barber in some city in US. One day a Caucasian florist goes to him for a haircut. After the cut, he goes to pay the barber and the barber replies: "I am Sorry, I cannot accept money from you; I am doing a community service." The florist is happy and leaves the shop. The next morning when the barber goes to open his shop, there is a "Thank you" card and a dozen roses waiting at his door. An African American cop goes for a haircut and he also goes to pay the barber and the barber replies: "I am Sorry, I cannot accept money from you; I am doing a community service." The cop is happy and leaves the shop. The next morning when the barber goes to open his shop, there is a "Thank you" card and a dozen donuts waiting at his door. An Asian Software Engineer goes for a haircut and he also goes to pay the barber and barber replies; "I am Sorry, I cannot accept money from you; I am doing a community service." The next morning when the barber goes to open his shop, guess what he finds there - A dozen Asians waiting for a free Haircut. Those of us who don't belong to that group can laugh and cry with me. Others of us may want to use this joke as a mirror. We can't think that the more freebies we can get from others, the better we will be. For example, our past tendency to let others fight for our battles has resulted in NO ONE FIGHTING FOR US AT ALL, not us ourselves and not even some of the AsAm politicians.

Laughing and crying at the same time,

Economy-Business leaders of india..........

Infosys Chairman and Chief Mentor N R Narayana Murthy has emerged as India's most admired business leader, for the fifth consecutive year, in the 5th Annual B-School Study conducted by Brand-comm, a leading brand consulting, advertising and PR firm headquartered in Bangalore

About 545 students from 13 leading management institutes across the country participated in the survey.

B-school students admire Narayana Murthy for being a socially responsible individual. He is looked up to as a leader who is honest and passionate about his work. The clarity and consistency in Murthy's personal branding and positioning seem to have been highly effective for the last five years.

Ratan Tata, Chairman of Tata Group, occupies the second position in the list of most admired business leaders. Though Ratan Tata was in the second position last year as well, the margin between the first and the second positions has widened this year.

The Ambanis, including the late Dhirubhai Ambani occupy the third position, and Azim Premji, Chairman of Wipro Limited, Vijay Mallya, Chairman, UB Group, and Kumar Mangalam Birla, Chairman, Aditya Birla Group, are jointly placed in the fourth position.

MOST-ADMIRED BUSINESS LEADERS
1
N R Narayana Murthy
Infosys Tech
2
Ratan Tata
Tata Group
3
Dhirubhai, Mukesh and Anil Ambani
Reliance Group
4
Azim Premji, Kumar Mangalam Birla, Vijay Mallya
Wipro, A V Birla Group, UB Group
5
Subroto Bagchi
MindTree Consulting
6
K V Kamath
ICICI Bank
7
Capt G R Gopinath
Air Deccan
8
Nandan Nilekani
Infosys Tech
9
Kishore Biyani
Pantaloon

If Ratan Tata is admired for being a visionary and for his commitment for the country's development, Azim Premji is admired for his values towards his employees, for his integrity, discipline and vision for Wipro.

The flamboyant Vijay Mallya, who was low in rankings last year has climbed up to the fourth position and is admired for contrasting set of qualities as compared to the top three. The qualities admired in Mallya are his energy, dynamism, flair, foresight and capacity to innovate.

The changing face of Indian economy seems to have triggered the entry of a whole new set of business leaders into the top 10 this year. With the retail industry seeing a boom period, the 'Badshah of retail' Kishore Biyani has found his way to the top 10 of the most admired B-school leaders.

The other new names in the top 10 include MindTree CEO Subroto Bagchi, ICICI Bank CEO K V Kamath, Air Deccan Managing Director Capt. G R Gopinath and Infosys CEO Nandan Nilekani.
MOST-ADMIRED COMPANIES
1
Infosys
2
Tata
3
Wipro
4
HLL, MindTree, TCS and ITC, McKinsey
5
Oracle
6
Google
7
GE
8
Bharti
9
HSBC

Ramanujam Sridhar, CEO, Brand-comm, said, "There aren't too many surveys that I know that have survived for five years. We at Brand-comm are extremely proud and happy for having been able to conduct this survey successfully for five years now. This study reiterates the value of personal branding. People, like brands, can make a difference to companies."

Infosys and Tata continue to be the two most attractive Indian companies to work for, for the B-school students participating in the study. While Wipro has moved up the rankings, FMCG major HLL, which occupied the third rank last year, has slipped to the fourth place.

Procter and Gamble has also slipped below and moved out of the top 10.

Interestingly, this year's survey has thrown up some new 'most admired companies'.

The list includes MindTree Consulting, which has come up many notches to occupy the fourth place. Likewise, Reliance also has come back into the top 10 this year and occupies the fourth place jointly with MindTree, TCS, ITC and HLL. Companies like Oracle, Google, GE, Bharti and HSBC are the other companies who have entered the top 10 this year.

Though both Infosys and Tata were chosen as companies providing the best work environment, work culture and excellent HR practices and were chosen by a majority of the respondents, the IIM students were found to have a strong preference for McKinsey and Reliance.

Tata / Tata Group was named as the 'most admired corporate brand with operations in India.'

Infosys follows Tata in this category, with TCS and HLL, a remote third. TCS has moved up the ladder from being fifth last year. Notably, 'Indian' companies occupy the top 8 slots as best corporate brands and even the IIM students rate Infosys and Tata on par as the best corporate brand.

Pavan Padaki, director, creative planning, Brand-comm, who has been the architect of the study said: "This year the study has affirmed the power of personal branding. This is evident in the fact that despite the death of the great Dhirubhai Ambani and the subsequent family feud, the Ambanis continue to be in the top 5. This is a wonderful example of the enduring impact of personal branding."

"Also, 'sunshine' sectors like BPO, telecom, biotech, pharmaceuticals/healthcare, insurance, BPO, fashion, retail, etc. have failed to attract the B-Schools as potential industry sectors to build their careers. Consulting, software/hardware /EDP, banking/financial services, FMCG, followed by Investment Banking continue to be the top five industry sectors, as a choice for immediate placement for the B-school students."

The study also reveals that, unlike last year, the opinion of B-school students who are next generation business leaders is divided on whether they want to be entrepreneurs or want to work for an organisation. Surprisingly, no significant difference in opinion was found between the IIM and other B-school students in this regard.

Economy-y $ flling faster-ministrations!!!!

Why the dollar is falling so fast

AnalysisBy Steve Schifferes BBC News economics reporter

The US dollar is plunging in world currency markets - and bringing down share prices in its wake.

But why is the dollar under pressure - and what would be the consequences for the US economy if it continues to fall?

Behind the problems of the dollar lies the huge and growing US trade deficit, and the large Federal budget deficit.

A fall in the greenback could hit Asian countries whose governments hold huge foreign currency reserves in dollars
For many years financial markets have worried about the growing size of the US trade deficit - the difference between the amount the US imports from the rest of the world, and the amount it can sell to the rest of the world.

That deficit has now reached a record $742bn , or 7% of the US economy, and shows no signs of diminishing.

At the same time, tax cuts and the war in Iraq have kept the US budget deficit at around $400bn despite the booming economy.

Asian giants
Much of the trade gap relates to US commerce with East Asian countries such as China, Japan, and Korea, who sell much more to America than they buy.

Together, the East Asian countries have accumulated foreign currency surpluses of nearly $1 trillion, much of it held in US Treasury bonds denominated in dollars.

Thus they are funding both the budget gap and the trade gap.

These huge global imbalances are threatening to derail the world economy, the IMF and other international organisations have warned.

The classic economic view of how to correct such changes is to adjust the exchange
rate in order to make US goods cheaper and Asian goods more expensive.

But many Asian currencies - especially the Chinese yuan - do not float freely on international currency markets, and the US has long been pressuring China to revalue its currency.

Now the markets are beginning to take matters into their own hands, by forcing the US dollar down.

In the last few months, speculators selling off dollars are not just buying other currencies like the euro or yen, but they also buying commodities like gold and oil, forcing up their prices further.

In the long run, the fall in the dollar could lead to a cut in the trade deficit and a boost to US exports.

But this process often takes a long time, and in the meantime, it is fraught with dangers.

The fall in the dollar is worrying the IMF, the international organisation charged with surveillance of the world economy.

"A disorderly unwinding of global imbalances would be very damaging," IMF managing director Rodrigo Rato warned at its spring meeting in April.

Run on the dollar
In the first place, a rapid fall in the dollar, if it accelerates, could cause short-term problems for the US economy.

The higher price of imported goods could lead to a hike in domestic inflation, and it could take several years before consumers switch back to buying more US goods.
High inflation, combined with the stronger-than-expected growth of the US economy, could force the US central bank, the Federal Reserve, to keep raising interest rates.

They have already been raised 15 times, and now stand at 5%, partly on fears of a growing housing boom.

But the fears of inflation are also likely to affect the interest rates on long-term bonds, which determine mortgage rates.

The rising mortgage rates, while they may eventually dampen the housing boom, will also give a further boost to inflationary pressures.

International exporters hit
Meanwhile, foreign companies who have derived an increasing proportion of their sales and profits from the US market could also be hit by falling demand for their exports.

The sharp falls in non-US stock markets, especially in Asia, are a response to this fear, with electronics and car companies like Toyota and Sony especially vulnerable.

And that in turn could affect the growth rate of countries like China, who derive much of the growth in their economies from exports.

But the Asian exporters also have another reason to feel vulnerable.

As the value of the dollar falls, their reserves of the currency also reduce in value, as do the yields on the US Treasury bonds held by many of their central banks.

In buying such bonds these governments are, in effect, underwriting the large US Federal budget deficit as well.

This deficit is set to increase as the baby boomer generation faces retirement.
The Asian governments and investors may be tempted to sell many of their dollar holdings in order to protect themselves - but this would have the effect of weakening the dollar further.

And it would force the Fed to raise interest rates even more to protect the dollar.
Countries like China are reluctant to massively revalue their currency - because it would make investing in China much more expensive and could deter valuable foreign investment.

Managed float
This problem with the dollar has happened before, in the l980s, when it was Japan rather than China that was seen as the main threat.

At that time, the main industrialised countries worked together for a managed currency float in an agreement called the Plaza Accord.

The coordinated approach led to a managed decline in the value of the dollar, which then stabilised at a more sustainable level, supported by central banks.

However, the current US administration does not favour such an approach, believing that the markets should be left to their own devices.

And given the vast size of foreign currency markets today, it is doubtful that central banks could make such an effective intervention again.

The downside for the US in the l980s was that it was forced to enter into an international agreement with other governments that reduced its freedom to set its own domestic policy.

But in the absence of such an agreement, it looks like the markets themselves are finally deciding that the US 'twin deficits' are no longer sustainable.

And when the world's largest economy begins to look shaky, it is not surprising that confidence among financial markets is weakened around the world.

Humor-four worms in a feast fete!!!!!

A minister decided that a visual demonstration would add emphasis to his Sunday sermon.

Four worms were placed into four separate jars.

The first worm was put into a container of alcohol.
The second worm was put into a container of cigarette smoke.
The third worm was put into a container of chocolate syrup.
The fourth worm was put into a container of good clean soil.

At the conclusion of the sermon, the Minister reported the followingresults: The first worm in alcohol - Dead.
The second worm in cigarette smoke -Dead.
Third worm in chocolate syrup - Dead.
Fourth worm in good clean soil - Alive.

So the Minister asked the congregation -

What can you learn from this demonstration?

Maxine was sitting in the back, quickly raised her hand and said,

"As long as you drink, smoke and eat chocolate, you won't have worms!"

That pretty much ended the service --

Puzzle-whimsical brain gym!!!

Brain Gym!

Exercise of the brain is as important as exercise of the muscles. As we grow older, it's important that we keep mentally alert. The saying: "If you don't use it, you will lose it" also applies to the brain.

Below is a very private way to gage your loss or non-loss of intelligence. So take the following test presented here and determine if you are losing it or are still a MENSA candidate. OK, relax, clear your mind and . . . begin.

1. What do you put in a toaster?
The answer is bread. If you said "toast", then give up now and go do something else. Try not to hurt yourself. If you said, "bread", go to question 2.

2. Say "silk" five times. Now spell "silk". What do cows drink?
Answer: Cows drink water. If you said "milk", please do not attempt the next question. Your brain is obviously overstressed and may even overheat. It may be that you need to content yourself with reading something more appropriate such as "Children's World". If you said, "water" then proceed to question three.

3. If a red house is made from red bricks and a blue house is made from blue bricks and a pink house is made from pink bricks and a black house is made from black bricks, what is a greenhouse made from?
Answer: Greenhouses are made from glass. If you said "green bricks", what the heck are you still doing here reading these questions? If you said "glass", then go on to question four.

4. Twenty years ago, a plane is flying at 20,000 feet over Germany. If you will recall, Germany at the time was politically divided into West Germany and East Germany. Anyway, during the flight, TWO of the engines fail. The pilot, realizing that the last remaining engine is also failing, decides on a crash landing procedure. Unfortunately the engine fails before he has time and the plane crashes smack in the middle of "no man's land" between East Germany and West Germany. Where would you bury the survivors - East Germany or West Germany or in "no man's land"?

Answer: You don't, of course, bury survivors. If you said ANYTHING else, you are a real dunce and you must NEVER try to rescue anyone from a plane crash. Your efforts would not be appreciated. If you said, "Don't bury the survivors" then proceed to the next question.

5. If the hour hand on a clock moves 1/60th of a degree every minute then how many degrees will the hour hand move in one hour?
Answer: One degree. If you said "360 degrees" or anything other than "one degree", you are to be congratulated on getting this far, but you are obviously out of your league. Turn your pencil in and exit the room. Everyone else proceed to the final question.

6. Without using a calculator - You are driving a bus from London to Milford Haven in Wales. In London, 17 people get on the bus. In Reading, six people get off the bus and nine people get on. In Swindon, two people get off and four get on. In Cardiff, 11 people get off and 16 people get on. In Swansea, three people get off and five people get on. In Carmathen, six people get off and three get on. You then arrive at Milford Haven. What was the name of the bus driver?

Answer: Oh, for heaven sake! It was YOU, Read the first line!!!

Economy-bar stool postulate-a gud piece of work by david kamerchen

Bar Stool Economics

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.

The fifth would pay $1.

The sixth would pay $3.

The seventh would pay $7.

The eighth would pay $12.

The ninth would pay $18.

The tenth man (the richest) would pay $59.

So,

that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers, he said, 'I'm going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers?How could they divide the $20 windfall so that everyone would get his 'fair share?'

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).

The sixth now paid $2 instead of $3 (33%savings) .

The seventh now pay $5 instead of $7 (28%savings) .

The eighth now paid $9 instead of $12 (25% savings).

The ninth now paid $14 instead of $18 (22% savings).

The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

'I only got a dollar out of the $20,'declared the sixth man. He pointed to the tenth man,' but he got $10!

''Yeah, that's right,' exclaimed the fifth man. 'I only saved a dollar, too. It's unfair that he got ten times more than I!

''That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!

''Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!

'The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.Professor of Economics, University of Georgia

Economy-corporate gamble

‘Grand Game’ is a money multiplying game on the American television game show ‘The Price is Right’. It involves stakes of $10,000 a day. It is gambling — the oldest game known to mankind. There is another money multiplying game, but a modern one. This involves millions of US households as victims and trillions of dollars as stakes. That is the US Fed policy-run game of first multiplying actual money several-fold as notional wealth, and again turning the multiplied notional money into actual by making it collateral for the actual but borrowed money.

There is another aspect to this new game. In the Grand Game, the player who stakes his money may win a fortune or lose his stake. But, in the Fed’s money multiplying game, the match is already fixed. The player that stakes its money, the US household, is destined to lose, and someone else — the US corporate, that is already chosen to win — is certain to win.

This dangerous game played in the US is being offered to all other nations as part of global financial integration and as a universal model. The unfolding story is about how the Fed policy game that bankrupts households and enriches corporates is passed off as the sophisticated end of modern economics.

In the last decade and more, particularly with the advent of globalisation in early 1990s, the US Fed seems to have chosen corporates as the principal vehicle to handle US household money. The economic rationale to bank on US corporates seems to be this: that money — read wealth — cannot be multiplied by households the way corporates can.

Money multipliers

Normal householders are just savers, not multipliers, of money. But corporates know how to multiply money. This money multiplying game policy-hosted by the US Fed is very different from the actual, not notional, money multiplier idea expounded by John Maynard Keynes.

The short story of the new game begins now.
Let’s assume that the Fed interest rate is 10 per cent and at that rate the US households have the potential to save $400 billion. This $400 billion is no imaginary number. Had the US households’ share of savings continued to be 80 per cent of the total, as in early 1980s, in the year 2006 it would have been $400 billion at the Fed rate of 10 per cent as in 1980s. US families would have kept most of their $400 billions savings in safe and fixed rated investments.

The next act of the story begins now. The Fed rate cuts the interest rate to levels of, say, 1 per cent or 2 per cent, as it was from 2002 to 2004 — that is intended repel savers and invite spenders. Americans are unlike the Japanese, who will save even at no interest. Snubbed by low rates, Americans prefer to spend rather than save. And the most of what little they save, they don’t bank but invest in corporate stocks, seeking risky but high returns. A major part of their indirect savings through pension and other funds is also invested in stocks.

The state-administered social security provided by the US government also unburdens the households from their traditional need to save for a rainy day and helps them take risks with their savings. So, thanks to the low Fed rate regime, what households would otherwise save and bank finds its way, through the retail malls, into the reserves of corporates as their income or into their capital or as market capitalisation through Wall Street. How does the money thus removed from the pockets of households multiply through the corporates, and for whose benefit?

Investment in stocks

Assume that $200 billions, that is 50 per cent of the $400-billion savings mentioned earlier, is diverted into stocks by savers directly or through pension or other funds and the balance 50 per cent is converted into consumption spend. The $200 billion fresh investment in stock market will push the stock prices and the market index or fill the coffers of the corporates to the extent it is subscription to new stocks. This will create extra demand for stocks in the market and will push stock prices and index.

Thus the fresh investment in stocks multiplies into notional wealth in the form of higher, but unrealised, stock prices. Next, the extra consumption expenditure of $200 billion too multiplies several-fold, thanks to the high velocity of circulation of the dollar. Given the current velocity of circulation of the dollar of 10 or more — namely the number of times the dollar changes hands in a year — the $200 billion consumption spend turns into a revenue aggregate of $2,000 billion ($200 b x10) for the corporates.
Assuming a profit rate of 10 per cent on sales, the pre-tax corporate profit on the revenue aggregate of $2,000 billion will be $200 billion. As a third of it goes for tax, the post-tax profit will be $133 billion. On the basis of the arithmetic average price-earnings ratio of 16 in the US stock market, this will lead to appreciation in stock values by $2.133 trillion.

So, the $400 billion inducted as capital into the stock market and as income to corporates has a multiplier effect that produces notional wealth several times the actual. But the climax of the game is yet to come. And here it is. The actual money that multiplies several-fold into notional money is turned into actual money again, as if by a magic wand.

This happens by asset value-based lending, where the notional values act as collateral to borrow and fund more consumption or further investment in stocks by borrowers.
This leads to yet another round of multiplication of the borrowed actual money into notional money. In this multiplication game, the distinction between notional and actual values disappears. The result is a sub-prime crisis and the like. More.

Corporate control

In whose hands does the actual money multiply? Not with the households that stake their money. Nor for their benefit. The Fed game ensures that it is the US corporates that will own and control the wealth. The numbers speak. From 1960 to 1980, US households had a share of 70 per cent of the national savings, and corporate savings formed the remaining 30 per cent.

In the early 1980s, families’ share rose to 80 per cent plus and the corporate share was down to 20 per cent. This was when the US Fed interest rates were at their peak — mostly above 10 per cent, encouraging families to save.

Despite an inflation rate of 1 per cent the Fed had increased its rates from 6-7 per cent in 1987 to 9 per cent and above in 1989. In 1990, the Fed rate was 7-8 per cent, the share of family savings was over 71 per cent; and the corporate share 29 per cent.

This is where the new game begins. The Fed cuts the rate gradually and brings it to just 1 per cent in 2002. The high family savings dwarfed from 71 per cent to a negative, yes negative, figure of 22 per cent in the year 2006, indicating that US families spent 22 per cent more than they earned, that is they were living on borrowing.

During the same period, the share of the corporates in total savings rose from 30 per cent in 1990 to 122 per cent of the national savings in 2006. The extra 22 per cent corporate surplus is directly sourced in the debt incurred by families to spend on corporate goods and services.
In actual terms, US family savings, which were $299 billion in 1990, fell to nil and then turned into a negative figure of $112 billion in 2006. Against this, corporate savings, which was $123 billion in 1990, sky-rocketed to a huge figure of $512 billion in 2006.

During this period, the debt owed by US households on credit cards rose from $686 billion in 1987 to $2,339 billion by September 2006. Result? Between 1990 and 2006, family savings fell by 138 per cent and their debts rose by 341 per cent, but the corporate savings rose by 416 per cent.

No expert is needed to interpret these figures. What it means to the US and to the world is yet another topic by itself. QED: The US Fed has bankrupted US households to enrich the US corporates. It is gambling not just with family money but with the idea of family itself.
(The author is a corporate adviser. His e-mail is guru@gurumurthy. net)

Language-power words..........................

Power Words http://www.carpeople.com/resume/words.htm

When composing your resume or cover letter look for appropriate words to describe what you do.

These "Power Words" emphasize and sell what you have to offer to a prospective company. Don't over use them. Just enough to hi-lite key selling points.

Management Skills

administered,analyzed,assigned,attained,chaired,contracted, consolidated,coordinated, delegated,, developed, directed,evaluated,executed ,improved,increased ,organized, oversaw, planned,prioritized ,produced, recommended,reviewed ,scheduled, strengthened ,supervised ,

Communication Skills

addressed, arbitrated ,arranged,authored, corresponded,developed, directed, drafted, edited, enlisted,,formulated, influenced,interpreted, lectured ,mediated, moderated ,motivated,negotiated,persuaded,promoted, publicized,reconciled,recruited ,spoke ,translated wrote,

Research Skills

clarified, collected, critiqued, diagnosed ,evaluated, examined, extracted ,identified,inspected,interpreted,interviewed, investigated,organized,reviewed, summarized,surveyed,systematized,

Technical Skills

assembled, built,calculated,,computed,designed,devised,engineered, fabricated, maintained,operated,overhauled, programmed, remodeled,repaired, solved,trained,upgraded,

Teaching Skills

adapted, advised ,clarified, coached,communicated, coordinated,developed ,enabled, encouraged, evaluated explained,facilitated,guided,informed,, initiated, instructed ,persuaded, set goals,stimulated

Financial Skills

administered, allocated,analyzed, appraised,audited,balanced,budgeted,calculated ,computed developed,forecast,managed,marketed,planned,projected, researched

Creative Skills

acted,conceptualized,created ,designed,developed,directed,established,fashioned founded,illustrated,introduced,invented,originated ,performed,planned, revitalized,shaped

Helping Skills

assessed,assisted ,clarified ,coached,counseled,demonstrated, diagnosed, educated ,expedited, facilitated ,familiarized, guided ,referred ,rehabilitated,represented,

Clerical or Detail Skills

approvedarranged catalogued classified collectedcompiled dispatched executedgeneratedimplementedinspectedmonitored operatedorganizedprepared processedpurchasedrecorded retrieved screenedspecified systematizedtabulatedvalidated

Inspiration-quotes to be meandered!!

QUOTATIONS·

An order that can be misunderstood will be misunderstood.·

Everybody likes a compliment. ·

Always remember, a cat looks down on man, a dog looks up to man, but a pig will look man right in the eye and see his equal.What else can you expect from a town that's shut off from the world by the ocean on one side and New Jersey on the other?·

To the query, ''What is a friend?'' his reply was ''A single soul dwelling in two bodies.'' ·

Life has a practice of living you, if you don't live it.

The shepherd always tries to persuade the sheep that their interests and his own are the same.

Winners take chances. Like everyone else, they fear failing, but they refuse to let fear control them.·

I hate the giving of the hand unless the whole man accompanies it.

Don't be afraid to give up the good to go for the great.·

In the advance of civilization, it is new knowledge which paves the way, and the pavement is eternal.You are the one who can stretch your own horizon.

The rich are always advising the poor, but the poor seldom return the compliment.

I have no methods all I do is accept people as they are.

The nature of peoples is first crude, then severe, then benign, then delicate, finally dissolute. ·

Constancy is the complement of all other human virtues.

We all live under the same sky, but we don't all have the same horizon. ·

Charity is injurious unless it helps the recipient to become independent of it.

If you are doing your best, you will not have to worry about failure.

While one finds company in himself and his pursuits, he cannot feel old, no matter what his years may be.

Be careful how you live you will be the only Bible some people ever read.·

No evil propensity of the human heart is so powerful that it may mot be subdued by discipline. ·

A true friend is one who overlooks your failures and tolerates your successes. ·

A good action is never lost it is a treasure laid up and guarded for the doer's need.Regds,