Corona Covid 19 The Economic and Supply Chain Impact of Cheap Virus Factory
Great Management by the Government , Authorities and Public.
We have been discussing and sharing views and following has been done in India by Central Bank RBI (Reserve Bank of India).
What RBI as a central bank has done is partial lateral shift and infusing liquidity in the system.
Well we have had 300bUSD of Reserves in different forms. Indian Banking system works on CD (Credit Deposit) ratio of 55% average. 45% goes into Overnight Call Money , treasury operations, CRR and SLR. Releasing 3.74 lakh in practical the infusion is to happen by unlocking the SLR. Circulation
RBI AND GOVT should also see that the international liquidity is getting sucked, credit default swaps, premiums, settlement are in tight spot. Reserves locked in international Bonds, US Treasuries and other assets shall lead to losses.
Considering Lock-down leading to economic Stalemate or Grid Locking, following is to be seen
1. Complete Funding of min 3 months of expenses of all Household - Allow Individuals and businesses- MSME.
2. Lateral Shift - MSME and RETAIL : Clear Gap of Repayment of Principal and Interest on Term Loans, Working Capital, Housing Loans, Personal Loans, Gadget and vehicle loans.
3. Infrastructure : Where (Buy and Sell side both is with Govt) Supply of resources and Supply of Revenue - The same should be run without any impact- Roads, Telecom, Power, Water, Healthcare.
Impact on Supply chain and stocks of essential items :
Taking Charge of All Private Sector Manufacturing Facility and Distribution Facility :
Declare that the Supply Chain should be working and list the items of essential products and manufacturers all India
Considering a Quarter of Working Capital Cycle and Stock of Goods on an average - Already one month of stocks has been hoarded or bought as panic buying.
Considering Labour and Resource crunch, further production and supplies after 2 months should be thought and planned in advance rather than waiting to see it happen.
There is no central database of Doctors, Grocery Stores, Mother dairy, Safal, Paras and respective state wise stores, pds, Chain Stores and their contact numbers are also not there.
ASSET REPRICING AND REVALUATION IS THE WAY AHEAD .......
COUNTRIES CANNOT KEEP KILLING EACH OTHER AND NO MORE OF EXPENDITURE ON CROSS BORDER CONFLICTS AND MAKING OF NUCLEAR BOMBS ? FOR WHAT
A Virus can kill and shut he earth and kill thousands and lakhs......then why ? Why Trillions cant be spent on Sustainability ? Question to UN, ALL HEADS OF STATE.
RECONSTRUCTION AND RECONSTITUTION OF SECURITY COUNCIL
Time to Act and not merely do lips teasing
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