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BJP’s utter failure responsible for Congress revival

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Almost within two years of coming to power,BJP has not been able to achieve any results with regard to providing employment to the youth which is desperate with depression or stemming the tide of suicides by the farmers or creating harmony within different communities of the nation.

 

The economy has sunk so low that RBI Chief Rajan has warned that any fault for payment of stressed assets by any of the big corporate may result in making the next generation in debt .

 

All these said problems point to government deficit in governance or execution of policies without bearing to the problems within the parliament created by rival parties.The entire show is being attempted on the introduction of bullet trains by Japan, purchase of defense material from Russia which will entail serious financial burden fro the posterity .

 

On the diplomatic front the situation is as precarious as ever with ISIS threatening our security .

There is no sign of any achievement or performance by the BJP rather this party with such an absolute majority is found to be engaged in war of words with opposition ie Congress and AAP which is a Delhi based party .

 

Meanwhile, 44 Congress MPs are weighing heavily on the National Democratic Alliance’s 337 Lok Sabha MPs in the country.

 

The BJP currently appears to be disintegrating with its own MPs pointing fingers at the corruption committed within the ruling party and the government.

 

 

 

In this present state of affairs the people of India cannot hope of marching ahead in the coming years.

 

Digging out of old irrelevant issues like the national Herald case by BJP leader Subramanium Swamy which is infact Congress’ own paper reflects the disillusionment of the common man.

 

To sum up all these factors point to the decline and ultimate fall of the BJP within a few years and its return to power in the next general elections appears bleak.

 

The entire scenario and developments in the political arena will result in revival of the Congress party and number of state based regional parties

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Column: The big bang RBI stimulus – Behind Infra Lines

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equity sensex nifty

The slew of announcements by the Reserve Bank of India (RBI) to lower the repo rate, reverse repo rate, cash reserve ratio and allowing financial institutions the bandwidth to offer a three month EMI moratorium are all much needed and welcome as India grapples with an unprecedented but much-needed shut down due to the global coronavirus pandemic. The RBI stimulus has hit at the most crucial issue at hand, i.e. “lack of or in most cases absence of cashflows”. Helping individuals and businesses tide over temporary cash flow issues will be critical to ensure that as and when the economy recovers and demand picks up, businesses can move (if not bounce) back to normalcy.

The biggest challenge is the stoppage in cash movement due to the shutdown. As businesses stop selling and the wheels of the economic system stop turning one gets a chain reaction through low to no sales, thereby impacting a firm’s capacity to invest, pay back debt and pay employees. As both firms and individuals are hindered, excess liquidity in the system due to the RBI policy changes allows lenders to both ease the credit constraints as well as lower the cost of credit. Flexibility around credit repayments and a lower price of credit through greater liquidity in the financial system will boost the economy to cope with the crisis and eventually recover.

We may underscore that the issues faced by borrowers are more a liquidity issue and going forward also an issue of lagged demand growth. The coronavirus driven shutdown has led to a sudden stop in demand. A lot of even high-quality businesses may be severely constrained. The vital aspect to note is that those businesses which remain high-quality are negatively impacted by an exogenous shock that has rendered their current cashflows insufficient to cover their costs, debt servicing and employee payrolls. The RBI policy changes carefully address this “liquidity issue” that is at the forefront of the problems.

Additionally, the RBI policy changes through increasing liquidity and providing banks with the option of offering a moratorium on EMI payments, at once, recognises that while demand drop was a “jump event” with a sudden drop in demand, the recovery in demand will be more of a “trickle incremental event” once the shutdown ends, and the pandemic subsides. The increase in demand may be more gradual vis-Ã -vis a sudden drop. Policies that allow a lower cost of credit, higher availability of credit and flexibility around loan structuring will assist both lenders and borrowers better to match their credit cashflows with the business cashflows.

The RBI announcement on the targeted long term repo operation (LTRO) is one that is also vital in high volatility and low liquidity situation. The RBI’s decision to offer banks capital provided the money is invested in investment-grade corporate bonds will, to some extent, help ease the pressure on the spread widening and low liquidity seen in the corporate bond market. The LTRO announcement shows that there is a realisation that all selling in the markets isn’t necessarily a view on the fundamental value of the asset under consideration but is also driven by technical liquidity and portfolio allocation factors, especially in times of crisis. Primarily, market participants sell since they need the cash to tide over current issues as opposed to selling based on asset value. The LTRO, if used by the banks, can, to some extent, help support the corporate bond market.

At a broader level, the recent policy changes of the RBI have created a framework for releasing liquidity into the financial system to absorb the corona virus shocks better. The ability of market participants to realise that while the current problems are grave, the need to restructure credit agreements around cashflows is critical for both lenders and borrowers. The RBI policy announcements have provided the market with the tools with which to manage the cash flow mismatches to tide over current issues to some extent.

Essentially, while specific human behaviour patterns might change, people will still fly on planes, eat out at restaurants and stay at hotels. Short-term exogenous shocks, however large, won’t change the fundamental nature of businesses in the medium to long-run. The RBI through both policy and signalling has shown the will to support the markets quite actively to help move forward.

(The views expressed in this article are personal and that of the author. The author heads Development Tracks, an advisory firm. You can contact him at [email protected] or @Taponeel on Twitter)

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‘Atharva Veda’ may have answer to pandemic: UP Speaker Hridaya Narayan Dixit

He said that research on the scripture may provide some solution to the coronavirus outbreak which has now spread to all parts of the world.

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Hridaya Narayan Dixit

Lucknow, March 30 : UP Assembly Speaker Hridaya Narayan Dixit has said that the ‘Atharva Veda’ describes the ways and means to fight against epidemics and pandemics.

The Speaker is now coming up with a book interpreting the Atharva Veda, which he said deals with medicine, social relations and nationalism.

“It is interesting to note that while American and European scholars have conducted researches on Atharva Veda, it has only been translated but never researched or interpreted in India. I am going to complete it in Hindi soon,” he said.

Explaining further, Dixit said, “Nearly 60 per cent of Atharva Veda is devoted to Ayurveda, the traditional system of medicine in India. ‘Charak Samhita’ is based on chapters from the Atharva Veda, which deal with the causes of epidemics and possible ways to fight them.”

He said that research on the scripture may provide some solution to the coronavirus outbreak which has now spread to all parts of the world.

He said it was unfortunate that Indian authors did not work on it.

Hriday Narain Dixit has already written several books on Hindu mythology, ‘Bhagavad Gita’, science, environment, Constitution and nationalism.

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Analysis

Covid-19 toll across world crosses 35,000

The COVID-19 is affecting 132 countries and territories around the world.

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Patients infected with the novel coronavirus

New Delhi, March 30 : The death toll around the world due to coronavirus crossed 35,000 on Monday evening, with Italy heading the list of 35,097 deaths with 10,779, while the number of cumulative cases rose to 737,929, with US leading with 143,055 of them, as per data from the Johns Hopkins University’s Coronavirus Resource Centre.

Spain was second with 7,340 deaths, followed by China with 3,308 (3,186 of them in Hubei where the outbreak was first recorded), Iran with 2,757 deaths, France with 2,606 deaths, the US with 2,513 (776 of them in New York) and the UK with1,228 deaths.

In number of cases, Italy was second with 97,689, followed by Spain with 85,195, China with 82,198, Germany with 62,435, Iran with 41,495 and France with 40,747.

Meanwhile, 156,652 people around the world had recovered, with nearly half of them (75,923) in China, followed by 16,780 in Spain, 13,911 in Iran and 13,030 in Italy.

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