Continued from the previous post –
Money launderers - money launderers need money at very low rates for their business and so they insist for interest rates reduction in bank loans. We know they have very strong lobbies active amongst the politicians and bureaucrats. They use all frenzy arguments and even attempt to justify lower interest rates on loans they try to influence politicians and so-called economic experts and they by that, attempt to prove that lower interest rates are essential for development of economy. This group is primarily responsible for reduction in interest rate of banks in all countries in the world. Amongst them politicians borrow to contest elections and on loosing, they become defaulters. Many co-operative banks are closed because of this category of borrowers. Their smart economists come up with many formulas to show how higher interest rate are detrimental to progress; after that, they want to give some flimsy proof to justify lower rates of interest. These arguments are so powerful and put up in an aggressive manner; that any less alert person can be easily convinced of it and accept it. This is one reason why we see all over the world in many countries ridiculously lower interest rates on bank credits. Inflation that is a part of modern economics is also due to these lower rates. This is because what loss occurred has to be recovered and for that pressure created on other side of economic activity and as a result, inflation takes place. We in India did not have any problem of inflation so far when we had appropriate interest rate in banks. However, as we began to tow line of these bogus modern economists we experience inflation rising in our economy also. Many books are written by bogus economists of this group and by that they try to give arithmetical evidence and by that try to justify their point of view. They successfully confuse concerned authorities by their flimsy but smart arguments. To avoid any confrontation with these smart economics player they prefer to accept their arguments and end up in reducing rates on bank loans. Only very keen observers and alert researchers in economics can see through this attempt and expose that. At times, they demand zero interest on their loans!
Continues in the next post –
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