Let me start with a caveat. I do not benefit at all if you invest in equities. Or if you buy real estate. Or if you keep your money in banks or LIC.

I am indifferent to what you actually do. Why should it impact me at all?

Except that in a kinda roundabout way – I have equities (hey I have real estate, debt investments, gold too!!).

SO PLEASE READ THIS article without any bias.

All the governments in the world are printing currencies. In fact the countries that you hear about ‘being in trouble’ like Greece, Italy, France,….are the ones that CANNOT print their EURO. If they were left to themselves, they would never admit that they have trouble. Like India has no problem. US has no problem. UK has no problem. They can PRINT their own notes. Now if you went about printing as much as you want (please understand there are million ways of increasing supply – printing is just an euphemism for increasing supply). If only the US was printing, the Rupee should be about 34, not 54 as it currently is.

Also the business community has ensured that the interest rates are not too high. So the Central bankers dance to the community of USERS OF MONEY ! Funnily the supplier does not form a committee or group or union – too ask for a better rate. He does try going to the unregulated market, but gets burnt so bad that he comes out burnt, or fried.

The retired person – assuming he has just retired at an age of 60 – and has a princely sum of Rs. 25 lakhs, you think he can retire? NO. Not unless he has created a large corpus, has kids who will support him and far more importantly gets EXCELLENT QUALITY ADVICE on how to manage the money.

RIP Savers. No tears will be shed for you.

There are savages out there waiting to tear you to shreds. God save you.

http://www.businessinsider.com/jim-rogers-wiping-out-the-savings-class-2013-3

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  1. Take away message. We are in an era where borrowers are valued high be it individuals, companies or nations. It is the time that we should not encourage savings at all. Burn our cash through reckless buying. Borrow as much as possible like there is no tomorrow and declare bankruptcy. At least you have satisfaction of enjoying the life.

    If you are saver on the other hand, you become the prey. Govst can impose controls on the money that you have in the bank, print currency and devalue the amount, levy additional income taxe and service tax, do the max TDS while giving tax waiver for buying on loan, cess on non existing infra and what not.

    Future lies with the borrowers side and not on savers front. After all it is they who are driving the economy and lifeline for the banks. This is the new reality to be accepted by our financial advisory community albeit grudgingly.

  2. Thts why … in olden days….Ppl used to go to Jungles after retirement 😛 . Time has come to follow the same 😀

  3. @DatKan : The governments ensured that the Jungles have been wiped out, or you need to pay a huge sum just to be able to visit it. If you are a poacher you can have free access, forget staying there in old age, you will be put behind, mosquito infested bars. 🙂
    Cheers

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