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Repo and Reverse Repo
|by Dr. Shriniwas Kashalikar|
Repo rates are the rates of interest a bank has to pay to reserve bank, on the loan it takes from reserve bank. Reverse repo rates are the rates of interest reserve bank pays to the bank on the deposit kept by a bank in the reserve bank. In other words reserve bank increases repo and reverse repo rates to encourage deposits and discourage borrowing; by the banks; so that the cash flow to the consumers is reduced.
Increase in repo and reverse repo rates is thus aimed at reducing the buying capacity, reducing the demand and thereby bringing down the prices. The increase in repo rates would is expected to increase in the rates of interests on the loans given by the banks, reduction in cash flow, reduction, reduction in the demand and thus reduction in the prices i.e. inflation.
Reduced returns on the production; is expected to stimulate the production so as to maintain returns; and catalyze growth! Can rate of inflation come down and rate of growth be increased in this way?
By increasing repo and reverse repo; government is further reducing the little white money available to majority of us (urban and rural lower and middle class) and we are being throttled, suffocated by restricting our buying of essential commodities. The producers of essential commodities suffer because; majority of them are also lower or middle class “consumers of essential commodities, which they do not produce and can not buy. The buyers and producers of the essential commodities such as agricultural products, bicycles, clothes etc. suffer in this way and the rate of production and hence the growth of all transactions of essential commodities; precipitously comes down.
But the rate of growth and the GDP is hardly affected because of the increased production of the unnecessary and unaffordable (to majority of us) products and unproductive sickening marketing and also the sale of these luxury products by owners of freely flowing unethical. They buy essential commodities at very high price (even if their production is reduced) and make life more difficult for majority of us; who cannot afford the high prices of essential commodities and inflation of essential commodities also continues.
The suffocation of majority of us; by increasing repo and reverse repo rates and restricting the white cash flow; reduces productive capacity and buying capacity of majority of us; with respect to essential commodities. But abundant black money of few; continues to cause inflation of every product and morbid growth of wasteful luxurious and harmful services products.
Increasing repo and reverse repo is beating around the bush. We have to comprehend the global nature of the problem of inflation, growth and progress; and act accordingly at global and individual levels.
World politics; in as much as our personal lives; ought to be; the expression of cosmic consciousness. This can be so, by interacting heart to heart and evolving and crystallizing the pragmatic aspects of policies, plans, programs and their implementation for individual and global blossoming.
At present this is happening, but in a rather imperfect, immature, inaccurate, insufficient, inadequate and ineffective manner. Primarily, this imperfection is that of perspective, conceptualization, conviction and actual experience or realization.
The billions of different needs, wants, likes, dislikes, virtues, vices, actions, interactions, contradictions, dialogues, hopes and despairs; of billions of living beings of different species, ages, geographical, political, social, economic, cultural and historical backgrounds; still have a common aspiration for individual and global blossoming, which is; voluntary or involuntary and conscious or subconscious! More explicit and evolved manifestation of this aspiration would be and/or should be evident in;
1. Redefinition of holistic health as “Optimal intellectual, emotional, instinctual and physical actions in one’s fields/s to promote individual and global blossoming”
2. Practice and promotion of Holistic Medicine; i.e. the art, science and skills of employing everything effective; in regaining and promoting holistic health, as an essential and inseparable core of mainstream Medical Education, Teaching, Practice and Research
3. Holistic Education; with “earn and learn”, “produce and progress”, “assessment of the skills by actual practice and demonstration and passing without written examinations; with emphasis on spiritual and productive domain; in addition to affective, cognitive, psychomotor domains; and research and teaching in different fields conducive to holistic health
4. Incorporation of educational, industrial, and agricultural and research activities conducive to holistic health (re-integration with mainstream life) in the temples and places of worship
5. Inclusion of hymns and prayers of different religions and regions, Sanskrit, enlightened saints, seers and other reformers from different religions in all the curriculums
6. Evolution of laws devoid of vindictiveness and conducive to holistic health (For example a) the persons soiling the public property would me made to clean the same, b) a corrupt person would be made to work double the duty hours, without salary, c) people involved in misleading advertisements would be made to participate in production, research, training and practice of holistic health and medicine, at no profit and d) The production of bicycles and vehicles of mass transport being echo-friendly would have minimum or no tax) e) Deterrent punishment and/or discouragement of slaughtering of animals for eating
These and such other measures can be conceived and implemented through heart to heart. Heart to heart dialogue becomes increasingly productive by becoming more and more objective and free of prejudice. For this Universal Practice and Promotion of Namasmaran i.e. remembering one’s true self (about whom we are usually oblivious), right from now; is essential and urgent.
Namasmaran has benevolent and emancipating impact on us and others. Billions of us are actually engaged in it even now; without using this terminology and billions more can be visualized to practice and promote it, and engender (the inevitable) individual and global blossoming. Where is the proof? Unprecedented events have no proofs. They just happen!
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