One of my friend who is a well renowned real estate promoter was struggling to pay his bank loan in the year 2008 when the recession have touched the shores of Indian real estate business. He had to almost sell all his properties of his own to pay back the loan of the bank.
Can any economist or any financial guru from the world forum can explain that how many times the trillion and billion dollars will be used to buy the defaults. We spent trillion dollars tax savers money to Buy Smile on the face of world financial markets.
The European economies were very happy after getting the bailout of around one trillion dollars. It was enough to buy up the debts and save the economy from the verge of death. The world stock markets were happy and were celebrating Christmas due to the revival package poured in to the cup of Greece and other European debt burden economies.
At the end I would like to conclude the series with this note that all these analysis of the education system was not to criticize but to bring forth the true portrait being painted by the world and China alone in the coming decades. We must understand the growth of any economy never lies in numbers. It lies among all of us who are juts like you reading this article .It is we who will bring the economic growth GDP to 20% in the next 3 decades from now. Its not the business profit figures or the fiscal balance which will bring this growth. Education is the foundation of economic growth of any nation on this planet.
The matches between two countries have fuelled the fire and as a result every one is on the sidelines to watch out the final over of the match. I am not neither making a live telecast nor writing up a report on any final cricket match to be held between two countries. I am talking about the battle between economies firing up the stadium of currency.
Inflation of china and the asset bubbles in every corner of china is now a matter of concern for the world economy. They are afraid that if the bubble goes for burst out then the nights of recession will be longer. Economist and every financial equity market analyst have raised many reasons to justify and bring forth the danger of Chinese economic recover. China very recently posted its inflation number which rose to 2.7% year on year in February according to the National Bureau of Statistics (NBS). Food prices rose 6.2% last month year on year, with non-food prices rising 1% from a year earlier.
When oil prices went for an upward hike the whole of India took off the extra pay with a mixed reaction. Mixed reaction since 1) Indian citizens have become very much close to the Indian economic fiscal condition and 2) The increase in tax slab for the all class of citizen made them feel that they will have some more savings in their hands and more shopping spree for the families.
Recessions have affected mostly the real estate business. Slowing demand and sudden evaporation of liquidity position made the situation become so tough for the real estate sector that companies who were engaged in massive long term projects have to abandon the projects. In many cases they have to forgo SEZ projects too due to financial crisis.
Recessions have taught lessons to many even to the favorite pet at your home. Among all these many of the lessons are positive and where as many are on the way to become positive. Recessions have educated us in many ways. Among them emerging economies is making the world economy educated about the process of making positive outcomes.
China has been the prime leader of 2009 in economic recovery competition. The stimulus package has helped china to have a GDP growth rte of 10% beyond the forecast of any economist across the world. China apart from stimulus package the undervalued Chinese currency has played the major role for the prolonged GDP growth of china in the past couple of decades. The stimulus package game was just for a small period of time where as undervalued Yuan.
