Monday, March 18, 2013

DEBT - Fuel of Growth

Seems like talking DEBT has suddenly come into vogue this season. Now it is Fareed Zakaria of the CNN who has this morning announced that China is in big, big trouble - debt trouble. He says that China’s total public and private debt is upwards of 200% of its total GDP. China in such huge debt???? Unbelievable!

Seems like being in debt has become fashionable. Even if that is not true, what is becoming apparent is that all modern economic activities are fueled by DEBT - both external as well as internal.

To be debt free is to put life on hold.


  1. No...To be debt free is to be rich; you know, no own what you have. I understand the more money a person has the bigger the debt. So, who profits or loses? Where is the money floating around? Anyways, I don't think I would understand even if someone began explaining.

  2. Carrying Capacity: If some one gives you 5 plates of very sumptuous food to eat free, will you be able to eat it all? May be or my not be? Just because you have a new vehicle can you load twice or thrice more passengers/people in it? Likewise, everything has a limit. The limit may be called the carrying capacity.

    In order to carry out economic development works, we need to plan well. We, Bhutanese are quite poor at that. It takes a considerable amount of time for good or proper planning. Planning can be short term, medium term and long term. In my opinion, hydropower construction should fall under long term planning. We tried to achieve in 5 years what should have been possible in ten or 15 years. As a result, the quality of construction has been very very poor, and I am not sure about the quality of hydropower projects. Quality of Domestic Airports, for instance became history. Major maintenance had to be carried out just after 6 months of opening air services.

    The above is an example of hurried construction and poor implementation. Well, history has been made, not in a good way. Let's not repeat it. Let's be prudent and judicious in our decision making and planning. If we use our knowledge and experience wisely, we may avert such economic crisis. Oh yes, China's comparison may not be correct for our situation since we are an import driven economy, unlike China which is export driven.


  3. How much do you paid by former DPT government when you write one such senseless article?