Printing Presses running full steam ahead

The Indian Finance Minister presented a budget based on the government borrowing 4.51 trillion rupees ($93 billion) and spending nearly $ 210 billion- i.e. the government is borrowing 44 cents (or paisa) for every dollar (rupee) it is spending. This is the more relevant statistic, rather than computing deficit as a of GDP. The GDP does not directly produce tax receipts, but the interest and principal on the borrowing side has to be repaid.

The serious side of the global downturn seems to be ignored by policy makers everywhere. High productivity rates and substitution of capital equipment or cheaper labor for expensive labor has dramatically widened the gap between the "investors" and the "workers." A significant compression of wages, and a lowering of expectations is yet to be realized.