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