Advantages & disadvantages of depreciating currency …… India as an example!

Negative points:

1. Falling Re. Value benefits the hoarders of money (white/black) in foreign-banks disproportionately?
2. Servicing foreign debt becomes more expensive as the value of debt increases?
3. Burden of Import bill of goods & services will increase?
4. Common man has  to toil more to earn $ equivalent for the country!
5. Encourages corrupt/ unpatriotic-selfish to hoard $ in foreign banks
6. (Encourages selfish to resorts to scams (eg Modis & Vijay Mallya and many more who borrowed money from Indian banks/ had a chance of earning $ and settling in foreign lands?
7. Government has to spend tax-payers money to give incentives to exporters to enable them to earn $ to meet import bill of the country?

Positive point:

1.helps exporters (good/bad intentions) to export goods and services from India to earn $.

Seven negatives against one positive leads us to Six-blind men and elephant scenario – everyone looking at the problem with his own perception? 

Inferance: Leaving Re value to be decided by such ppl will make Re always weak?  1$=1Re to 1$=70 Re arox 70 years!

What next?

Best way to find real value of a Re. Is to run a computer programme which estimates the fall in exports at various Re. Values and $ requirements at that Re. Value and find out the point of intersection. This will represent the real value of Re. Find out methods to bring Re $ parity to that value (who knows the best value may lay some where betweenRe. 1 & Re. 70)!

Programmers need certain parameters and system analysts may find a way out by reading the article “Salable  skills” which made an effort to analyze meaning of money and its purpose.

Resorting to find a suitable parity between “salable skill vales” between importing and exporting countries may be one of the methods to find a way out than following current method of using developed country currencies route!

Extracts from article salable skill  http://righteducation.org/id30.htm

Land of thoughts:

Any Nations Economy is highly dependent on salable skill-time. Currency, $,£,¥,Rs.,etc., ‘exchange value also depends on accumulated, Gross National, and exported (or its equivalent) skill-time utility.

A spot to Ponder: 

Corollary: Exchange values between currencies depend on accumulated skill-time values and availability of skill-times against each currency. Here lays the difference between rich and poor countries a fact or fiction? $>Rs.

Money it’s meaning and utility:

In definable terms, money (printed notes or coins) is an invention of man to serve the purpose of a guarantor (take any currency note and you will find “Guaranteed by…….”  Or ” ……… promises to pay” etc., printed on it) to skill-time seller, by assuring him that his skill-time value  is protected to the extent of the value printed on the currency and can use the currency to buy skill-time from others, to the extent of value printed on the currency. Thus currency (money) converts the skill-time, a time dependent unit to a time independent unit. Thus money tries to extend  (note: I used the word extend than protect – more about it latter), the skill-time utility – of sold skill-time, by making it time independent.

Money (one form of the media of exchange- more about media of exchange later) tries to achieve the following:

A Currency (money) is a media to save skill-time value for future use:

An example to illustrate the perishable nature of skill-time and utility of money (can be any other media that is acceptable) as a means of saving them for future use:

People who purchased the products (skill-time) lost money, as they have to scrape the computer and software, due to introduction of new models of computers and software. The persons (like Microsoft, Intel or their CMDs an employees), who sold old skill-time, got its value in the form of either money or shares have become richer.

Skill-time in the form of product will lose its value and is perishable. Skill-time converted to money value can be saved for future use.

Here you notice the buyer of skill-time (computers and software with old skill-time or technology) lost the money, but the people who sold the-skill time are safeguarded. It means that we can use money as an accepted means for selling current skill-time, which is highly perishable to some one who is in need of it immediately, in consideration of money. We can use this money for procuring skill-time (services) we need at a later time as per our requirements.

For full details read:  Salelable Skills: Skills that can’t be sold have no money vale: http://righteducation.org/id30.htm (Money value of countries having large population with lot of non salable skills is low compared to other countries with population with salable skills)

tags Salable skills, money, Skill-time, money