Skip to main content

Abyss of economics

The world today is 281 trillion in debt to itself. There is no science more mysterious than that of money.

What drives my enthusiasm for finance is its underlying devotion to mathematics, just like most of the pure sciences. This pride in being extremely logical and putting rationality before empirical bias is what makes it worthy of a Nobel (though not the original one). But its influence on daily life is enormous, a genuinely distinct feat in pure sciences. So let's delve into the unapparent philosophical side of the currency.

281 trillion is a significant amount. If everyone called on their cards, we would have a lost game of poker. In fact, we have such a bluff on the table that we can't risk calling it. It is horrifying that this accounting deficit makes no difference to the world. Has there ever been a scam this benign?
Or do we need a piece of the puzzle?

The latter seems rational. The reason for this debt is simple, sovereigns have printed more and more money over the years. Every time in stress, that's what countries do. But, our economic knowledge says that printing more money should effectively devalue the currency. However, nations (with some exceptions ) have successfully mitigated this devaluation. In fact, the dollar has remained strong all this year, even with an enormous debt. Our trust in them explains this apathy for the country's debt honour.

The question remains: How are the creditors not claiming back the credit?
How are we sustaining this cycle of massive debts? The answer is more socio-political than mathematical. Because our currencies are no longer backed by a tangible resource (gold reserve for a long time), we have lost the real sense of money. Even if one pursued the most lavish life, he would not be able to use up a multi-billionaire value. Thus most of our money is kept away from us, with the confidence that it is secure. And most don't actually call this bluff.

In fact, this mathematical probability that all would not cash their balances at once gives room for creating an inflated economy. But in the more philosophical sense, it reminds us of the excess wealth we are generating, a wealth we have no means of using. And that some country in distress is making use of this former trust to spend this extra wealth. it (looks like capitalism paid its regards to Marx)

Popular posts from this blog

Changing face of Entertainment

The entertainment industry in India is waiting for yet another disruptive innovation, with millions of young users equipped with gigabytes of data every day, there is a new untapped customer base. Not particularly untapped since it makes do with pirated movies and free web series. But, there is an apparent lack of entertainment streamed towards them. Also, the shift from television sets to mobile devices, sets the stage clear for a change in content. the spikes in porn consumption and adult web series do speak of this unattended guest. The popularity of two platforms, mostly youtube and TikTok, have also helped in developing a new class of actors. To name a few Sumeet Vyas, Jitendra, Bhuvan Bam and much more. It has become apparent that the arduous task of going from one to another production house seeking a side role in a daily soap or movie, is on a decline. Not that, people won't get their debut at soaps and movies, but it seems easier to get a web series and keep working tha...
dive in...

Religiously Yours: The Role of Preachers and the Search for Truth

Most people search for hope, for belonging, for purpose. Religion can offer all of that, but if it ever sidelines your freedom to choose, to think, to wonder—something precious is lost. So, what’s the answer? Not confrontation, but honest, unguarded questions. Questions that aren’t meant to provoke or undermine, but to genuinely understand and maybe even reshape how we see the world, each other, and ourselves. See, preachers—like everyone else—filter their teachings through layers of personal experience. Some are gentle guides, others take a hard line, but most fall somewhere in the middle. That’s not surprising. We all lean on what we know: our stories, our histories, our mistakes. It’s just that, for religious teachers, this bias carries extra weight. Sometimes their perspective anchors a community, offering stability and belonging. Other times, accumulated bias can make a religion feel rigid or exclusionary—raising walls instead of building bridges. There’s an intricate relationshi...
dive in...

Into the fuzziness

One way to put a banner on the course of human civilization is to call it an escape from uncertainty ( most of which would have led us to death). Why do we live in societies? To save ourselves from the uncertainty of getting attacked... Why do we build houses? To mitigate the uncertainty of getting our food washed away in the rain... Why do we rear children? So that we don't fast ourselves to death in old age. So in all these cases, the sheer uncertainty in the future has made us make expensive investments in the present. And those who didn't give in to these fears took a risk.  The pay-off of that risk is, however, independent of the past. In some cases, the risk turned out to be a golden gamble. Just like a flood washing away houses of people...the ones who hadn't built their houses were a little less sad. Risk can give an unexpected reward, but the higher the risk, the greater the return.  But at times, the risk is otherwise. Instead of choice for the individual, it beco...
dive in...