The Debt Trap

In the next 24 hours , expect American Congress to raise the Debt-Ceiling , once again

As it has raised it 71 times in the past 40 years

Other alternatives before the American Congress are :

Ø  Raise taxes ( to increase State income  )

Ø  Reduce Expenses (  eg:  ObamaCare  )

Ø  Print more money (  and fuel inflation  )

But these are all , very unpopular measures with the American public . And no politician likes to be unpopular

So , the easy way out is :

  

Borrow more  –  let each American grandchild worry about repaying to the rest of the World , a measly sum of $ 52,000  !

We will not be around when the bubble bursts  !

Tomorrow will , somehow take care of itself  !

With annual revenue of $ 2.4 trillion and expenses of $ 3.5 trillion , how else can America make ends meet ?

No one in America seems to be asking :

  

·         Are we living beyond our means ?

·         How long can we sustain this high living standard on borrowed money ?

I hope , we in India do not fall into such a Debt-Trap

Fortunately ( ! ) , rich Indians have stashed away Rs 28 – 35 lakh crores  ( $ 462 – 572 billion ) in foreign banks ( as per Global Financial Integrity – GFI )

Offer them , a “ No Questions Asked “ , Voluntary Disclosure Scheme ( VDS ) to invest in tax-free Infrastructure Bonds

Then , we will not need to borrow from IMF to raise the standard of living of 400 million poor Indians , earning less than $ 1.2 per day

·          hemen  parekh  (  16  Oct  2013  )