Warrier's Collage on Thursday September 1, 2022 : Gold Management

Welcome To Warrier's COLLAGE On Thursday September 1, 2022 Prayers 🙏 : https://youtu.be/OQiK9SgEmCE (Link Selection : Collage) 1) Temple Treasures in God's Own Country https://youtu.be/qNbyIh3zINci (India's hidden strength) Know More : https://scroll.in/article/938546/what-former-cag-vinod-rai-found-when-auditing-the-accounts-of-keralas-shree-padmanabhaswamy-temple 2) Nature's fury https://youtu.be/EmJv_eOfrDc (Five Volcanoes) Good Morning ☀️ Nice Day M G Warrier Verse for the day Food for thought : Franklin Misquith Most of us in this group still go his/her own way, Though most of us have had our day, Now it is time to lay down our arms, And only if required, Smother ourselves with lotions, Potions and soothing balms. Having said this, We would still like to be in a state of bliss. Now that we have had our say, Let us to younger folks, give way, And we shall make our day, At a game of chess, scrabble, Or bridge, let's pass our time away. We must keep jealousy, envy and pride at bay. This will keep us, Up and underway. A Messages/Responses 1) Sitendra Kumar What a splendid Collage. Lots of interesting things. One better than the other. The responses on inflation by various readers, Jaya Kumar's mail on doctor's advice to ladies, Warrier's views on Universal social security and a short crisp write up on the Batchmates, inter alia, form the highlights of the Collage. Shri Subbaraman's views on inflation need a critical examination. He contends that 'In 1947, 10 grams of gold cost in India Rs.88. Today, it costs Rs.46,930 (22ct). A rise of 53,230 per cent, an average annual increase of 710% over the past 75 years'. Well, be that as it may, does that mean that gold has become cheaper or costlier? That's important. In 1947, a class IV employee was drawing a basic pay of Rs 10 per month +DA of Rs 15 totalling total salary of Rs 25. At that time, the First Pay Commission increased his salary to Rs 30 p.m. i.e. a raise of 20%. In case of officers, the salaries were reduced by 10% to 25%. The salary of class I probationers was reduced from Rs 400 to Rs 350 p.m. and that of Secretary, Addl Secretary and Joint Secretary from 4000, 3500 and 3000 to 3000, 2750 and 2250 which was revised to Rs 3500, 3000 and Rs 2500-2750 respectively in December 1965. (Note : ICS and KCIOs were exempted from any reduction in their salary. In all other cases, the same was reduced). Now a Class I officer draws Rs 56100 as basic pay +allowances and class IV draws Rs 18000 as basic pay + allowances. For these categories, one may conclude that in case of class IV employees, the gold has become cheaper and for top officials, the gold has become prohibitively costlier. A Secretary draws Rs 225000 now as against Rs 4000 in 1947. By gold standard, he clearly stands diminished. RBI Governor in 1947 drew Rs 5000 p.m. (Rs 7500 p.m. for white man as he drew 50% of basic pay as overseas allowance) but this pay of Rs 5000 p.m. was reduced to Rs 4000 p.m. after independence. It was revised to Rs 9000 p.m. in 1986 and further to Rs 30,000 in 1996 and then to Rs 90,000 in 2006 and finally to Rs 250000 in 2016. Has gold become cheaper for RBI Governor or not? For him clearly it's a big no no. In 1947, it was available to him at throw away price. (C D Deshmukh was exempted from any reduction in salary as Governor as he belonged to ICS) ICS and KCIOs( Kings Commissioned Indian Officers) argued that they were covered by the covenants and were trained abroad and therefore they were out of purview of any salary reduction programme. All other Indian officers of all hues and cries including army officers who joined Joint Services Wing (precursor to IMA) Dehradun suffered reduction in salary. Gen (FM) Manekshaw was also one of them. ICS was able to defend their rghts inclufing conversion of pension to pound sterling. It's we who are given sermons by MoF as to why we are denied our rights. So gold is costlier for all those who are the higher ups but cheaper for those who are at lower end as compared to the situation prevalent in 1947. Sitendra Kumar (SitendraJi, Collage accepts all the nice words spoken by you for sharing with all who are keeping this daily efforts moving. My role is that of a gardener or curator. I am personally grateful to you for sharing the treasure of information available in your memory. Knowledge has no value if you don't share it. Last week when I wrote about my grand uncle who passed away during 1950's, 5 or 6 family members shared with me their memories about the same person, some of which were stories they heard from their elders. But the torch 🔦 gets passed on from generation to generation. 🙏-Warrier) 2) Dr T V Gopalakrishnan Inflation management The concept of inflation meaning too much money chasing too few goods has also been affected by inflation thereby eroding the very value of that concept over a period. Gold definitely cannot be taken as a standard commodity to relate to inflation. In general parlance my own view is that inflation refers to the purchasing power of the people, basically the very essential consumption items with reference to their earnings and the prices of general consumption items. Gold is an exception and the price and the position of gold have also undergone drastic changes and I doubt the price of Gold is ever forming part of inflation index construction. Inflation management is a function of not only the availability of money but also the way the money is made available to different segments and how they get distributed to the people. Involvement of the Government and the Central Bank needs to be thoroughly examined and perhaps they may have to reexamine the whole concept of inflation and its relationship with the different forms of money. In the absence of close coordination and understanding between the Government and Central bank inflation management cannot be fool proof. The very concept of money has also been undergoing changes because of the expansion of digital payments, presence of crypto currency, dollarisation happening in various economies and effects of globalisation of large economies etc. My own view is that inflation management should be country specific and blindly following the advanced economies without having any relevance to the income levels of the people, unemployment, laxity of Governance standards, absence of minimum standards of living for the entire population is a grave mistake. Further inflation management cannot be done without knowing the realities at the ground level as to how the production and Supply of essential commodities involves various agencies and unfortunately all sorts of malpractices taking place . Of course views vary from person to person but the need to have a thorough review of the very concept of inflation affecting large segment of the population and its management ensuring the people worry free life is overdue.Time to factor in while fixing the inflation, the emotive aspect because of continued and unabated persistence of inflation affect badly majority of the large segment of the people. 3) S W Fadnawis Shared a link : Goodfellows supported by Ratan Tata https://youtu.be/zL6vl_HnGDQ B Collage findings about domestic gold stock https://www.financialexpress.com/market/commodities/shining-bright-indias-household-gold-reserves-touches-25k-tonne-over-40-of-gdp/1583058/ In gold we trust : India's household gold reserves valued at over 40% of GDP Factoring in the central bank’s reserves (608.8 tonne) and an import duty of 10%, the domestic value of the gold stocks at most of the known sources in the world’s second-largest consumer will be even higher. Factoring in the central bank's reserves (608.8 tonne) and an import duty of 10%, the domestic value of the gold stocks at most of the known sources in the world's second-largest consumer will be even higher. Despite subdued demand in recent years, gold holdings have accumulated over the decades, thanks to the traditional penchant for the precious metal. Tamil Nadu https://youtu.be/iTFWz8KcAzM Kerala has to follow Tirupati, Tamil Nadu and Maharashtra in mainstreaming and making productive the state's gold stock. C Focus on Gold I Gold management needs a makeover : M G Warrier https://www.thehindubusinessline.com/opinion/gold-management-needs-a-makeover/article20449587.ece1 I said in 2012 : An apex body should be equipped with linkages for import and export of gold and gold products with borrowing and lending capabilities. States like Kerala have successfully intervened in other similar sectors like chits/ kuris and lotteries, which were also areas of exploitation by vested interests. Private players had to fall in line and function with discipline and self-regulation. Establishment of ‘Gold Corporations' with state participation could also be debated. Such an institution can act as a depository where the gold possession of individuals now in bank lockers and the pledged gold can find a safe shelter, provided the purity can be ensured, and the ‘Corporation' can find the resources and skill to deal in gold and retain the customers' confidence. D Focus on Gold 🪙 II https://www.moneylife.in/article/how-about-revisiting-the-idea-of-gold-bank/40498.html Excerpts : "When some banks start opening gold accounts, they will also be able to maintain more liquid assets under Section 24 of the Banking Regulation Act, 1949(the section requires banks to maintain a certain percentage of their liabilities in cash, gold or unencumbered approved securities) in gold. 2) Individuals and institutions will be encouraged to keep their gold stock with banks thereby reducing misuse(Now for the rich, gold is a medium to show off their wealth- Not only in the form of jewellery, but by erecting statues and flag masts in solid gold-less said about the malpractices practiced in such transactions, the better!) 3) Need to import gold will get considerably be reduced resulting in saving precious foreign exchange. Budget 2015-16* is an appropriate medium for Modi government to think loudly on the above lines." *This was written in 2015. Government has since initiated some hesitant steps. But the stakeholders are powerful. E Faith/Spirituality Dr Charan Singh https://twitter.com/CharanSingh60/status/1564706170643722240?s=20&t=9DItiAl4KI_J15jE4Tov8Q Unity in Diversity - 360 गुरु जिन्ह कउ सुप्रसंनु नामु हरि रिदै निवासै जिन्ह कउ गुरु सुप्रसंनु दुरतु दूरंतरि नासै If Guru is pleased then God's name comes to reside in the heart If Guru is pleased then sins run away from far Bard Kal Sahar, 1398, SGGS F Leisure Golden jokes https://funkidsjokes.com/gold-jokes/ G Quotes on Gold Standard https://www.brainyquote.com/topics/gold-standard-quotes The market needs to set prices, including interest rates and allocate resources. If it were up to me, we would abolish the Fed and return to the gold standard. Absent that, the Fed should be completely removed from the political sphere, its dual mandate replaced by a single mission to provide the nation with sound money. Peter Schiff Peter David Schiff is an American stock broker, financial commentator, and radio personality. He is CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. H

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