Thursday, November 10, 2016

strong liquidity preference but still in acute liquidity crisis

Chicken briyani and  the unintended consequence of Modism
MY sick and ailing wife for more than three decades (who has now only working relation ) yesterday demanded plain Briyani and chicken 65.Despite the fact that the wallet was bristling with 500 and 1000 rupee notes(only a few days back fifty thousand was withdrawn from IB university branch  and another fifty which was given as advance for the apartment purchased over a period of 6 to 7 years from the salary amount exclusively with little assistance from the eldest daughter I was struggling for liquid cash of just 100 rupees.
For ages I have been paid only in higher denominations and we never botherd  to keep  changes . Despite high liquidity preference in the last six months for varied reasons I was in a liquidity crisis. A road side fruit vendor near my home enjoying the shade of y neem tree (which will meet its death in a few months like the 100s and 1000s as my daughter will be constructing her home)  agreed to lend 100 provided I purchased fruits for 300.Went to the shop the familiar one where my younget daughter used to buy  but it was closed : economics was at work  people did not have the change.   Yes those who have not paid the taxes for ages but sitting on the mountain of the cash  also need to change  and the govt must allot PAN  to those people without waiting for them to apply
I returned back and asked her .She was insistent that she must take and celebrate.She appreciates the PM for the bold measures with all her imagined enemies’ bombarding her every second.I only wish OUR  PM had her boldness and righteous anger against the parasites sapping the energy of India  who are they   we will elaborate  in the forthcoming postings

I  went to a shop opposite to Sarguru and got nice stuff and the balance of Rs 15 was treated as loan. Unusually it was good and she relished. She took only the white part of the boiled egg and just tasted the leg piece and 80% 0f the food landed on my plate…
I remembered the article by MSS pandian in EPW  long ago:The chicken Briyani and inconsequential Bhramanism…The crisis  on the monetary side now is welcome provided the authorities  take follow up action .there are shocks and disturbances in real economy and the poor suffer. I will articulate as economics teacher  on a daily basis and let kural and global crisis wait
 I am happy that Mr Modi has made my better half to understand my value in running around  and the nation will know the significance of Mr Modi….will he prove that he is a man difficult to dislike    Time alone can tell..My friend Bahu… are you listening   I am only the critical commentator by training and subject knowledge  not a blind supporter of any one including Modi   I only want him not to be hijacked by the corporate vested interests and extreme Hinduthava and behave like PM for all the states and for the people and come out of CM mindset .


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