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Monetary policy Or Fiscal policy

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Member
Registered: Oct 2013
Posts: 7426
During previous crisis about 5 year back, I taught Nepal society, where 'Deposit in Banks' come from. And they learned it in this crisis after 4/5 year.

And during this crisis, I am teaching them about - 'Monetary policy Or Fiscal policy' that runs economy more. This time, they learn about it in months.

Have nepalese learn it from me?? It's good progress. Have nepalese finally taking me serously? Do they know about me?

People in the outside world know about me more than people in Nepal.
Member
Registered: Oct 2013
Posts: 7426
Most of the idiot fake expert been saying in Nepal including Golden boy, Fiscal policy runs economy, not monetary policy.



चीनमा ब्याजदर हालसम्मकै न्यून स्तरमा, ३ महिना दोस्रोपटक कटौती, अर्थतन्त्र गतिशील बनाउने प्रयास



UNDP should send Golden boy to China to guide chinese govt.





(Remember: During previous crisi, I taught Nepali society where bank deposit comes from. In present crisis, I have started this topic to educated Idiot mass- who still have not taken me serisou, or respect my power- that Monetary policy runs economy, fiscal policy only assists economy.)


Monetary policy: Fiscal Policy= 80/20
Member
Registered: Oct 2013
Posts: 7426
I have been trying to teach people of Nepal that monetary policy runs economy, fiscal policy has lesser impact. [It's more like- Monetary policy: Fiscal Policy= 80/20]



When I say monetary policy, it means banking activity.



Whey we have collapsed economy, cause our monetary policy is bad. And Bank is ran by idiots, criminals like below.

अहिले पनि अत्तालिहाल्नु पर्ने स्थिति केही छैन्, धेरै व्याज दर बढाएको भनेको पाँच बैंकले हो: बैंकर्स एसोसिएसन अध्यक्ष सुनिल केसीसँगकाे अन्तरवार्ता


This idiot does not even know, our economy has collapsed. Dont forget, he and his boss advised to tighten monetary policy and increase interest rate to NRB. When idiots like him run banking sector, we get collapsed economy.

Remember what I said, recession is part of the economy, but collapse is Man made. And who made the current collapse of the economy: NRB, Bankers, finance ministers, PMs, media, fake economic experts, politicians who gave advice about economy- and most of them are from NC and some from maoist, and all their economic advisers like chettery (ex nrb governor who was made governor by prachanda cause he was/is prachanda's doggo).



Also remember, what SECOND TO GOD said: When consumer suffers, Banks also go bankrupt.

Now we have the proof- collapse of cooperative and big crisis in micro finance. And idiots economist in Nepal dont understand that cooperative and micro are part of banking sector, also, meter byaji.

They think, only Banks are part of banking sector. Even banks are in stress.

ALL THANKS TO NRB. Who are above country and economy.
Member
Registered: Oct 2013
Posts: 7426
Brazil Ends Tightening Cycle With Larger Than Expected 50bps Rate Cut: Other Central Banks To Follow




Rpaap said, other govts are tightening monetary policy.
Member
Registered: Oct 2013
Posts: 7426
Cause of monetary policy tightening- people are approaching loan shark and others for loan.

Was this the plan of setting all along. Since, bureaucrats and politicians are the one who are loan sharks, cooperative etc.
Member
Registered: Oct 2013
Posts: 7426
China Appoints New Central Bank Governor In Latest Bid To Revive Slumping Economy




But but Fiscal policy runs economy!
Member
Registered: Oct 2013
Posts: 7426
NRB/Governor/D governors destroyed Nepal's economy, forced 100s commit suicide.

And finally, elected government has taken a smaller but significant move against Governor.

गभर्नरको तजबिजीमा निर्देशन जारी नहुने, सञ्चालक समितिबाट पारित भएपछि मात्र जारी

मौद्रिक नीतिमा एकथोक लेखेर अर्कै निर्देशन जारी गर्ने गभर्नरको प्रवृत्ति रोक्न बोर्डमा लामो छलफल


Govt should do more- add three more board of directors who should be sent by bankers, dev bankers and finances.

Govt should get to fire directors at will.


Govt should do more regarding Monetary policy and I have advised in the past- 'Monetary policy guidance'.



Govt should get to make governor and d governors from private bankers too. And govt should get to fire governor and d governors at will.

Nigeria did not just fired governor, they jailed him for destroying their economy.
Member
Registered: Oct 2013
Posts: 7426
मौद्रिक नीति किन खुकुलो आवश्यक छ? चन्द्र ढकालको विश्लेषण, 'विशिष्ट अवस्था छ'

शिथिल अर्थतन्त्र उत्थानका लागि लचिलो मौद्रिक नीति अपेक्षामा निजी क्षेत्र : एफएनसीसीआई अध्यक्ष चन्द्र ढकालसँग वार्ता



- Looks like this guy is one of the last one to recognize 'Nepal's economy is in trouble' and he is one of the main reason, it is in trouble.

His post is one of the highest post whose job is to give govt right advice. Cause of criminalization of everything in Nepal, This is one of almost all criminals who became super rich.

He is one of two individuals who played as a bridge between NRB and maoist/pm whom NRB used to destroy Nepal's economy.

He should resign and investigated.








अहिलेको अवस्थामा अलिकति खुकुलो नै मौद्रिक नीति ल्याउनु पर्छ भन्ने सबैले ठानेका छन्: पूर्वगभर्नर तिलक रावलसँगकाे अन्तरवार्ता

Another guy who is one of the last person who found out, Nepal's economy is in trouble. And he has no idea about banking, economy and still became Governor.






राष्ट्र बैंकलाई लगानी र आर्थिक गतिविधिलाई प्रोत्साहन गर्ने मौद्रिक नीति जारी गर्न अर्थ समितिको निर्देशन

Too little too late. One of the last organization to see economic crisis.







Tyo chettery bhanne alchin ex governor, 25no borker ko alchina chai kaile bolne bho ta.

Only their death can free us from them.











And That golden boy still has no clue.




-----------------------------

1st to see economic crisis in Nepal: Second to GOD (more like predictor)

2nd to see: Handful of individuals.

3rd: Those who suffer (by the time, it's already too late to prevent the crisis)

4th: Crowd

5th: Media

6th: So called Expert

7th/last: Government/Bureaucracy/Politician and their advisers.


Sati ko sarap


And 5, 6, 7 have the loudest voice and most influencer.
Member
Registered: Oct 2013
Posts: 7426
भारतीय बैंकहरुको खराब कर्जा १० वर्षयताकै न्यून विन्दुमा झर्यो







Another proof that 'Monetary policy runs economy, fiscal policy only supports economy'.



Years back, Former governor (ex boss of world bank) advised/asked govt of india/Modi to tighten monetary policy to tackle 'threat of high NPL'. Instead of tightening monetary policy, Modi chosen high growth.




Like I advised a long time before, to prevent or solve NP- business activity should be increased, profit should be increased, growth should be increased.


India did the same.


If they had followed advice of former boss of 'world bank', their NPL would have increase and their economy would have entered into crisis mode. 'FROM BAD TO WORSE'.


In Nepal, just like former boss of the world bank, fake economic expert and crowd advised tightening monetary policy and NRB did the same. And look where we are now???






You are welcome- SECOND TO GOD!
Member
Registered: Oct 2013
Posts: 7426
IMF's Gopinath says central banks may need to tolerate higher inflation to avoid financial crises.



So does this mean, monetary policy runs economy, fiscal policy only assists economy?




In sh!t hole like Nepal, when IMF says jump- governor "how high" :x



In Nepal, economy has been completely destroyed by Central bank. After looking at the totally failed experiment in Nepal- IMF is advising others to reverse previous advice.
Member
Registered: Oct 2013
Posts: 7426
अर्थतन्त्र स्ट्यागफ्लेसनबाट गुज्रिरहेको छ, परिस्थिति अनुसार मौद्रिक नीति आउँछ : गभर्नर अधिकारी



Nigeria's Central Bank Governor Suspended




केन्द्रीय बैंकका गभर्नरलाई निलम्बन गरेपछि नाइजेरियाको सेयर बजारमा उछाल
Member
Registered: Oct 2013
Posts: 7426
Finance minister is has also become total failure, from now one, doggo governor la aba jhan badi hepcha



kukur lai adviser banayako fal aba bhojcha



yesta lai finance minister banayako fal aba dalal congress le jhan badi bhogne cha
Member
Registered: Oct 2013
Posts: 7426
How could Monetary policy fix current- economic/share market collapse?



- Reschedule loan (already done)

- Undo tighter monetary policy (including policy related to share market)

- NRB has sent more than 600billion cash into market. Under many headline, only half are available in the system. Make as much as those cash available to the marke/system.

- Reduce interest rate. BFIs max interest rate for loan should be 12% and min should be 8.75%. FD rate for institution should be max 5% and for individual 7%.

- Govt needs to float 'monetary policy guidance'

- To kick start economy and share market- inject extra 250 billion into the system. 150 billion for export based industry and 100 billion for share market at 0% interest(mutual fund and market maker. And they can pay back 25%/year from 2 year).





Fiscal policy needs to coordinate with monetary policy by promoting export using fiscal promotion, reducing taxes and for share market- let bfis and cooperative invest their capital and reserve in share market (ban from selling for 2.5 year), make insurance and pension fund invest 25%-60% into share market, create market makers with capital equal to 25% of total market capitalization of share capitalization.





Monetary policy runs economy, Fiscal policy can only assist. Without the help from monetary policy- fiscal policy is helpless.
Member
Registered: Oct 2013
Posts: 7426
Fiscal policy:

Like I said in the first posting- Monetary policy runs economy while Fiscal can only assist economy.


What does fiscal policy do?
- Budget and Taxation And open/close sector for private sector.



Some are saying- current economic/share market crisis should be dealt by fiscal policy and not monetary policy. But I say- only monetary policy can fix current problem, fiscal policy can only assist (already expressed my view in the first posting).


Some more explanation:

1: Taxation- Right taxation can bring in investment, increase consumption.

But can taxation solve current problem? NO. Why? Let's say tax is reduced to ZERO, would consumer buy product- no/not enough cause they dont have money. If tax is ZERO, will there come investment- no/not enough- cause cause of (monetary policy tightening) high interest and tighter liquidity position and investor already in problem/panic- we cant bring in enough or no new investment.

So taxation cant fix current problem.


2: Opening sector for private sector- there is no or not enough sector to be opened. So wont help.

Less than 5-8 year back, out electricity production capacity was 3/4 times less than today. After govt opened it up and reduced tax/gave tax benefit, electricity production boomed.

Meaning, fiscal policy can assist but cant help. Had monetary policy been tight, it would not have helped and there is no quick fix through fiscal policy.

What new sector can govt open for private sector- hardly any or hardly any big sector left.


There is one thing govt can open sector and help current economic crisis: Let pension fund/insurance (25-60%), bfis/cooperative (capital/reserve) invest in share market. And kick start the economy.




3: Budget/resource utilization: Fiscal policy can assist economy in long run by building right infrastructure in right place and time. Or it will turn into debt trap.

Neither infrastructure can fix our current economic/share market crisis nor it will bring in quick fix. And to build infrastructure- govt need revenue, and cause monetary policy has destroyed economic activity so there is no money for infrastructure.






But there is one possibility, fiscal policy can fix current problem. Through budget utilization govt can give money to business, investors and consumers and fix current problem.

Then there is a big problem- govt dont have money cause monetary policy has destroyed economic activity and so thus, govt is not getting enough revenue.

Now, govt has two option. Either borrow from foreign govt or from NRB. If Govt borrow from foreign govt and give it top some- Nepal will fall in debt trap.

If borrow from NRB, it will again be called monetary action.



NRB/Monetary action can do two- either lend govt money and then govt would freely give it to others and this way govt will never be able to pay back or wont pay back.


Or second, NRB can lend 200 billion to business, share investor etc and fix problem. This way, NRB will get their money back. And this will be called monetary action. Not fiscal action.






In short, only monetary policy can fix current problem, not fiscal policy.

Fiscal policy can only assist and it can only assist when there is good revenue. And there wont be good revenue until economic activity is kick started. And to kick start- monetary policy should be loosen and monetary policy needs to pump 200 billion into the economy asap.






Those who say monetary policy should fix are business people, investors, elected govt.

Those who say fiscal policy should fix the problem are NRB, so called economic expert who got certificate from media/social media, alchina commenting in media/social media who has no idea about economy and golden boy.
Why dont they advise govt- how to solve economic problem/ share market problem through fiscal policy???









How can monetary policy kick start economy and fix current economic/share market crisis .......... (in next page)
Member
Registered: Oct 2013
Posts: 7426
During previous economic/share market crisis- I taught nepalese 'where deposit in the banks come from'.

Looks like this time- I shall be teaching nepalese 'Monetary policy or Fiscal policy'.


During previous crisis- almost everyone kept on saying- there was no money in the bank cause bank gave all it away. I kept on telling them, bank run outs of money when money leaves the system. This time only handful is saying what majority said last time.

Even NRB officials, celebrate bankers did not know where deposit comes from, and they too repeated same. This time- non is saying what they said last time. 'Source of deposit' is basic of banking system and neither nrb nor banker new during previous crisis.


They all learned 'where deposit into banks comes from- from SECOND TO GOD'. SECOND TO GOD taught nepalese basic of banking during last crisis and no one gives credit to SECOND TO GOD. UNGREATFUL!


This time, I be teaching them basics of economics 'MONETARY POLICY OR FISCAL POLICY'. Unlike past time, good no of nepalese say 'monetary policy should fix economic/share market problem' and majority saying 'it's fiscal policy's job'.

I dont think, those supporting monetary policy understands completely and other majority is dumb and ignorant and still talks about it.








Let me talk about fiscal policy in next page. (I have already written something about monetary policy or fiscal policy' in the first page too) ...................................
Member
Registered: Oct 2013
Posts: 7426
Monetary policy Or Fiscal policy



- Monetary policy controls interest rate, liquidity- meaning controls economic activity.


- Fiscal policy controls resource (utilization of resource/money- govt revenue/budget), taxation- only helps economic activity indirectly.



If monetary policy destroy economic activity- there wont be govt revenue or revenue decreases. And Fiscal policy will be tied up, helpless.




Currently- monetary policy has destroyed all economic activities (except for remittance based economy) using monetary policy tightening by liquidity tightening and forcefully increasing interest rate.

We all know about high interest rate.




Let's talk about liquidity: (Liquidity is the blood of economy, no liquidity or inadequate or high liquidity is bad for the economy)

- As per NRB balance sheet- NRB as sent more than 6 kharab cash into Nepal.

- In those 6+ kharab cash- under many subject- NRB has frozen a lot of cash. Probably around 3 kharab.

- During the time of last governor, there was liquidity crisis too, created by NRB too. He too used to ran NRB, monetary policy driven by is sanak. So to solve liquidity crisis- he forced BFIs to issue BOND. And said- BFIs can fully use that money to provide loan.

- Current Governor too is running NRB/ monetary policy through his sanak. Today, NRB is saying, BFIs cant count BOND while calculating CD ration (I guess, It means BOND money cant be used to provide loan). BFIs may have issued 25-50 billion amount of cash. So, NRB's monetary policy has dried liquidity of another 25-50 billion by force.

One governor's sanak forced bfis to issue bond to create liquidity and another governor's sanak evaporated 25-50 billion of liquidity.


- CD ratio- another monetary tool floated by governor's sanak. I may or may not be correct. What does CD ratio even mean. If BFIs can only provide 90% of deposit as loan. Then what happens to capital and reserve of BFIs.

I believe- BFIs capital and reserve amount to more than 5 kharab. If they cant use it to provide loan or invest in shares then that would reduce liquidity by a lot.



Above are just some of the tools NRB's sanak used to tighten liquidity. And they have already increased interest rate to un workable level.







Liquidity tightening by force and high interest rates had destroyed economic activity.

Low economic activity and high interest rate has increased NPL by a lot. Real problem inside banking is far worst than seen on the outside.

And low economic activity has reduced govt revenue.

And when govt revenue is low- fiscal policy is tied up.




Unless monetary policy kick start economic activity and save loan borrower and share market- govt wont be able to make good revenue. No good revenue means- fiscal policy is tied up.


Only monetary policy can save economy of Nepal. NRB has destroyed blood of the economy- low liquidity and high interest rate.






Those who say- it's job of fiscal policy to save the economy are dumb.- Not monetary policy.

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