Are you prepared for the perfect storm coming our way ?
Back in my MBA days, I used to look forward to reading Swaminathan Aiyar's columns every week in the Times of India.
He had a knack of explaining a complex subject like economics in a way the common man can understand. This explains why I got a little nostalgic when I heard him in a recent interview on ET Now.
Mr Aiyar seemed a little disturbed with the turn of events, both globally as well as in India. In fact, he even went to the extent of warning there's a perfect storm headed our way.
And if we are not careful, we will have to pay a heavy price.
Here are his exact words...
These are very tough times. It is not within the power of the Central or State Governments to solve this. This is a typhoon coming globally from outside.
Secondly, it is not just oil. In the United States for instance, they have a record inflation of 8.5% but even if you strip out food and fuel, the other inflation is 6.5% against the norm of 2%.
Aiyar then goes on to argue that high inflation is going to be with us for quite some time even if Covid does not reappear or even if the Ukraine war comes to a reasonable end.
(To be contd)