Keep the steroids, or else…

Date August 9, 2013

(I write the column “Acting Pricey”, on Pragati. Here’s the original.)

We are addicted. We are on steroids. We are now going to face the music.

A steroid reduces your immune response and thus the pain that it causes; the initial doses give you relief but after a while, your body forgets to protect itself and demands the drug instead. It reacts violently if you stop or forget a dose. Drugs like cocaine and even tobacco behave similarly – after some time, a single dose doesn’t feel great, but the lack of it causes serious withdrawal symptoms.

In a lot of ways, our economic system has been on steroids. You have to keep getting the drug, or you’ll collapse.

Case 1: The panic drop of the rupee

India’s been a net importer for the last twenty years, meaning, we export far less than we import. Last year, we were short by $190 billion. , which is 19 followed by way too many zeroes. We make up some of this through the export of software and from foreign remittances. We are still left with a big hole, called the Current Account Deficit (CAD) – $90 billion last year (or 5 …



Original Source: http://capitalmind.in

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