Economics Part 3

8/4/2019 Economics Part 3

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Finance Information

jagadish

Bonds are they essential

Bonds are essential to an investor for getting fixed income for himself . beyond a certain point oftime bonds become a liability to organization as recurring expenditure. hence it is advised to bekept minimum and fixed number of years for it to sustainbonds are used or should be used by companies only if they are out of cash or don't possessworking capital to solve their immediate cash problem. solution is 1 to 2 % of authorised capitalshould be sufficient .why 1 to 2 % it is because too much of interest payment makes company a huge debtor.convertible bonds are also essential to certain extent and is better preferred by me as it can

sustain the loyal investors to continue with the companyas per my judgement is concerned convertible bonds period shouldn't exceed more than 3 to 5years and within 3 to 5 years should be converted to shares. even that is debatable to releaseit as their is a scope of crash down of stock market if too excess convertible bonds are releasedwithout knowing the scope of jurisdiction of number of shares being in the marketknowing how many shares are their gives a scope to the company an idea to release thesubscribed capital into the market . excess subscribed capital into market can lead to marketcapitalization crash . changing hands and too excess transfer of shares from bulls to bears.stags can actually work more during the times of convertible bonds by selling away sharesduring the process of conversion (speculative business ------- stags)

hence jagadish advises that bonds are better than convertible bonds because stags don't comeinto picture. stags usually do daily sales and purchase making stock market volatile . giving alimit of sales per person can control stags otherwise market capitalization fluctuations can bringdown the share price drastically if not checked.bonds interest rates are paid quarterly, yearly. which one is safe bet : payment of interest rate

monthly is always feasible because it gives scope to the organization to know who their loyal

customers are and what the demand for the sale is.bonds actual replacement is annuities but

annuities is lifelong whereas bond interest payment is short life

investors are usually asked by jagadish to go to mutual funds in indian scenraio in form of eitherhedging or balanced funds where their is shift between bonds and shares coexistence in case ofeconomy turmoil.mutual funds usually taken care where public is in abundance and risk management isspreaded within investors and guaranteed safety is attached based upon the risk managementtaken up by investor within mutual fund.


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Thought for the day : types of bonds and its drawbacksNEXT

How can loans be got back intelligently from debtors of money in short span of time

normally every bank hands over loans to those who need it and is always has to write off loansin abundance. During the phase of recession loans default is much more widespread thannormal. at this stage what can banks do to get back money lent to pay to savings employees ofsame bank

1) give debtor a job2) ask him how can he contribute to society through his knowledge and groom up others3) how can the candidate be a role model to other debtors in getting back money

thought for the day :

i cant think beyond the three , best wishes for anyone to think out of box and help me out

NEXTstock hedging :hedging is considered to be safest passage for any type of instrument for the investor where itguarantees you about loss and provides a cushion for not fall down of price beyond a certainminimum limit . this is usually seen in mutual funds in INDIA and is followed with a huge hit

suppose the same hedging is kept in stocks what happens ?stock hedging can be defined as group of shares in a particular industry segment comingtogether to sell stock under a huge compilation of shares of different companies in a particularindustry segment to get cushion for share price of company not fall down below a certain rangestock exchange transactions are usually controlled and transfer of shares is stopped after aperiod of transactions where exchange sees a danger beyond a certain crash down of stocks ina particular industry if further transactions take placethis particular event can be stopped for coming to crash down limit by keeping a hedging facility

in stocks for particular industry .

think is it true what i said ?suppose this is done all the investors would sell away shares and create a huge amountof sales leading to once again crash down . hence stock hedging should never take placeotherwise it leads to stag situation where below the limit of fall stock is sold off .

only bear market would be interested but bear market area of job is limited in stock exchange


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market. it is usually bull market which actually does more profit and sales

stock exchange other area is bond hedging . what happens here is bonds can never have anhedging facility as it is time bound by nature . at the most it would get converted to shares underconvertible bonds or else it would end once the tenure for the payment is over

thought for the day is : Do shares and bonds if have hedging , which format would youagree

(mutual funds is one i thought)NEXThow to educate children whose parents are in poverty and cannot have more than 50 RS

per day

normally parents want their children to be better educated and have better lifestyle than them

but alas it is not possible because they can earn maximum 50 rs per day after toiling hard forthe entire day. daily wages is the order in INDIAN scenario since decades .

what can jagadish suggest to the problem , lets see

education costs money so how can education be free for poor is the question

sponsorship can be given by wealthy people but it is not permanent cure because even wealthy

guy looks for fast results to get mental satisfaction for himself and prove that he brought about

result oriented script to the poor and brag about it as quickly as possible

people look out for UNITED NATIONS for free education and hunger removal . can they sustain.they can but area of jurisdiction cannot satisfy entire geography map of earth. managing funds

by UNITED NATIONS even though is huge still cannot be managed holistically and many of

areas both demographic and geographic is left out

how to give them road map of education .

western nations that's why look out for technological breakthroughs to solve most of humanity

problems but they forget that technology is costly affair

i thought of a brilliant problem solution ,

theatres 5 in 1 where you organise 3D books reading on mass scale and movies which are both

educational and time pass on cooperation

meaning group psychology reading and explanations by constructing 5000 mass seating

capacity and ask them to read books together by projecting it to the output of theatre screen


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monitor

which according to me is both cost effective and all have same knowledge to share and read

(3D books reading online or hard disk projection (group) )

one theatre catering to whole geographic area promoted as usual by UNITED NATIONSdirection and guidance, special timings of sharing knowledge and recreation for all the audience

situated in the same geographical location

5000 batch strength-------- 5 in 1 theatre (multi purpose ) --------- with timings schedule------ UN

THOUGHT FOR THE DAY

For constructing this type of 5 in 1 theatre what is the cost and cooperation strength to

be judged to see success in this innovative adventure -------- Segmentation targeting

positioning to start off with is Africa, INDIA, china etc

NEXT

Recession and how to come out through ---------- creation of websites

money with companies is few during the time of recession and post recession also money cant

be spent as quickly as possible. i was going through apple i tunes where very honestly china

employee gave very good advise that America should increase his expenditure specially in

Research side.

i came with idea that if research side does given information western nations would

automatically go into creation of websites. for faster result to be earned . it is advised that a

thorough research into top websites to be found out and through it contract based salary to be

given to those who like to contribute to these websites.

it is so because when in crisis people do associate or should associate with top websites for

guidance. if this guidance isn't available to public from these websites promotional campaign

of knowledge doesn't happen as quickly as possible and would take decades for knowledge to

spread.

the faster way is facilitation of public into top websites instead of creating new websites

how to spread the message.

by creating awareness once again in the popular websites.


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what is the limit to spread the popular websites ----- is it content based or not---- how

much should it be

NEXT

Technological /Management breakthroughs and what is required to do it speedily

to do this type of job a person or candidate else student must require

a) theoretical knowledge about areas to be covered up

b) span of knowledge and repercussions of implementation

c) simultaneous experimentation's while learning

d) unlearning curve speed

e) Reading extensively

etc etc,


this type of outlook is common for all research based output whether you take up

technology or management out of box outlook.

AM I CORRECT IN MY OPINION

NEXT

when to export and when to import goods by nation

normally import of goods is done by country if raw materials available to goods to the nation

is costlier than importing them from foreign country. goods are imported when raw materials

available to nation is rare

export of goods has to be done in areas where business growth to the nation is revolutionary

and has the capability to give double the GDP growth rate to the nation

what happens if the GDP is close to double digit growth say 8% or 7% and nation thinks about

export . it can be done if raw materials with finished goods product is able to cater to the nations

requirement .

raw materials are sufficient to cater to the nation for at least a minimum century without making

out a dependent nation but an independent nation when it does business with foreign nations


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INDEPENDENCE IS THE CATCH WORD


what is the strength of the nation as per giving double digit GDP growth individualindustrial wise is concerned in export import outlook

NEXT

Technology and advancement of it

it is usually seen that in western nations because of either less population or fast innovations at

rocket speed happening advancement of technology happens so fast that citizens of the country

do not relish the staying power of technology

what are the repercussions of technology not staying long in the country and country keeps on

increasing the advancement

take for example Microsoft over the period i am observing that it kept on advancing its

technology in combination with Intel and at last a work which should take a half century to

century has been completed so fast within 20 to 25 years that public like me haven't relished

any of the operating system as it should do

by keeping it secure and long lasting research based output on one operating system would

have germinated some more issues on a singular based OS . by changing OS frequently i think

the whole of the mankind hasn't relished the OS as it should be


Does fast technology hinder the relishment of satisfaction of creation or not

NEXT

Spread of technology across nations

it is seen in 21st century that web 2.0 , 3.0, 4.0 has taken place rapidly across the globe .

western nations are also seen particularly interested in spreading this web across the globe to

earn revenue for them and spread good things across the nations

but it is also to be noted as was stated above that spreading this type of technology is

dangerous across the globe quickly without knowing consumer behavior of nations

the point is consumer behavior of nation is as important as knowing technology and able to


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cope with pressure of technology spreading specially if you look at nation like INDIA which

actually has to cope with huge amount of rural people who are slow to adapt to technology

making a spread of technology say 4.0 to this country may prove disastrous as to cope with

handling this type of technological growth which is happening fast in western nations

slowing down and relishment of technology once again said by me is crucial than fast

paced technological life which proves disastrous say of not knowing the repercussions of

implementations


what type of consumer behavior type of research in needed in each nation to look at

growth of Internet

NEXT

Transfer of funds from bank to banks

i was debating with myself today since hours as to how come i do more destructive work than

constructive work. quite amazing

am i acting like a destroyer of works or constructor of literature. people do ask these questions.

and as usual i asked this question to myself. over period of time of pondering , i started thinking

about banks .

what are banks for ?

and what is inflation doing to these banks?

what is written off and who is benefited with loss and profit

arising to these banks even though they do similar business every quarterly and financial year

pray to gods that i should do profit business and not go into losses as happened in the previous

quarterly or yearly year

so coming back to question above

what is happening to money in society ?

answer is it is distributed away from one person to multiple persons in form of loans sanctioning

to an individual and then from individual to creditors and him becoming debtor

it can also be stated that with transfer of funds to a person called as debtor to creditor actually is


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transferring money from one bank to another bank . the person who took the loan is acting like a

mediator in transferring money from one bank to another bank

making one bank a trnsferer of funds and the other receiver of funds

so actually the money is their but in multiple accounts in different banks but is in circulation inthe society and the trick is

RBI actually is increasing the flow of money by minting more money into the society by

providing financial aid to banks which are into losses if i am correct

actually as per my commonsense and you as readers judge by yourself

the thing to be noted here is finance money need not be minted by RBI at any given point of

time. what actually happening here is in a given financial year of march to April , one bank is

gaining profit the other is going into losses and it keeps changing every year

what the point here is that

if bank any bank say SBI is gone into more withdrawal from public it does losses which can

be in the form of bad debts and the other bank say Punjab national bank does more deposits it

gains huge profit during financial year

this deposit actually is loan taken up from SBI and transferred to Punjab national bank the

mediator being account holder of Punjab national bank taken loan from SBI and bad debts arise

in the hands of SBI which was created by account holder of Punjab national bank

now question arises where did the money actually evaporated from the account of SBI, the

account holder of Punjab national bank actually distributed to creditors

these creditors deposited the money in other banks say Syndicate bank , canara bank etc. so

actually in society

one bank is a loser , the other bank is a gainer and RBI is manufacturer of additional money into

society giver

increasing inflation in the society where money is in different banks with different account

holders acting as debtors and creditors for each other


Are Debtors and Creditors actually banks or individuals

NEXT


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Online account of transfer of funds if money in circulation is huge with the society

suppose for instance RBI finds out as it should that money in circulation with the public is huge

and inflation has skyrocketed with demand for products aren't matching supply of products and

the products are scarce in that geographical country

what should the country do ?

companies actually possess huge amount of profit motive by working on Internet and create a

huge fictitious amount and tussle out with banks . RBI by introducing corporate account mutual

fund (mutual fund which is famous in INDIA ) can garner and store up in its account through

transfer of online account by introducing financial instrument to them

which financial instrument would be suitable when mass employees are huge ?

by introducing corporate mutual funds with annuities combination RBI can venture where

payment mode is later on after 20 years and they get the aid of mutual funds which is a known

entity in INDIAN scenario

this 20 years later of corporate annuity acts like a pension and if possible employer also pays

part of the amount into the employees account based upon the scheme designed by the

financial companies are concerned

how can these two be mixed up

by introducing amount transfer online with small monthly payments in the form ofannuities giving them social security sector wise (B2B)

thought for the day

which type of financial instrument can be created to balance shares and bonds market

other than annuities type of instrument

END

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Economics Part 3