Thursday, August 04, 2011

Ever since the crisis of 2008 politicians and economists have been frantic for growth. Asian economies are said to have resisted the recession and quickly resumed high rates of growth while the US and Europe lag behind. So, who have benefited from this " growth". Number of millionaires, those who have $ 1 million of free cash, has increased to 11 million who possess a total of $ 42.7 trillion. There are 103000 super rich with $ 30 million to spend. There wealth is now $ 15 trillion. In China Ferrari sales were up by 50% and Mercedes by 112%. Gold keeps hitting record levels everyday. In India one tycoon has been given a salary of Rs 70 million even though company profits fell 20%. Sales of expensive cars such as BMW, Mercedes and Audi have jumped in the first 6 months of 2011. BMW president Andreas Schaff said," ..... everywhere we keep reading and hearing about a slowdown but when we look at our sales or enquiries at our dealerships, it has never been better. If the first half of the year is so good, the second half would only be better." Anyone hearing that would think that India is already one of the richest countries in the world until you read that Maruti, which makes cars for the middle classes, sold 25% less cars in June compared to last year because of rising interest rates in a desperate effort to control inflation and increased fuel prices. Rich people love growth because they make more money, a lot of which is black. Politicians love growth because increased tax collections mean more money to loot. All this black money leads to uncontrolled inflation killing the middle class. So what is the future? Greece or Somalia?

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