my response to grumbling about onion price increase in my IIM C forum ...

comments welcome , participation also welcome .

[8/23, 3:20 PM] 

Garg Ravi:

 prices ,

do not go up .

axiom no 5.

only 

the purchasing power of currency goes down .

Currency ,- eg rupee / Dollar ..as a measure of price ,

 is like ruler made of compressible rubber .

if I measure height of my house using today s ruler ,

the height maybe is 10 feet ( ten lakhs )

after an year , the people group G , who profit in financial sector due speculation in asset price increases ,

these G people steal away purchasing power from rest of society without any real contribution ,

Also more loan money starts floating around on the economy due legal greed based activities of group G .

Thus the purchasing power of each rupees drops , same as saying the rubber ruler becomes shorter ,   

to novices , it serms that house has become 12 feet high ,

when actually the new ruler is now equal to old say ten inches only .

Imp . 

In current system , buying power is being stolen away every year at rate between ten to thirty percent , thus the prices seem higher in currency terms .

So what to do ? 

yes it is cause for concern .

if I need rs 20 k  for my groceries this month ,

in 2025 ,I ll need rs 80 k per mo.

in 2035, I'll need rs 320k per month for same bag of groceries .

Solution...

1... let us join the group G who legally steals purchasing power , with nominal work or risk , from other sections of society .

2....ha ha there is no other plan B ha ha .

................( become a Govt. employee with inflation based pension ... eg eco faculty in IiM s here there - just make sure that you do not teach real economics !)

[8/23, 3:36 PM]

 Garg Ravi:

 Dear Anup , Jayaram ,et al ,

Pl schedule Skype talks with me , with permission to record them ,all to be shown to you first , and then to be loaded onto YouTube TV etc after your express permission . 

In these Skype sessions of length 2 to say 10 to 30 mins . you may ask me to back up and explain , whatever . 

In trying to explain and justify eco concepts to you , we shall be able to demonstrate the future problems of inflation in India due , increase in Exports or due increased FDI   . Also , a few ideas for a different path  for the world , and for you and me to create income rapidly , ( other than through YouTube lectures ). 

ravigarg1@yahoo