Savings

.Modern day economics is way too skewed than it was three decades ago . We are worried over Fed increasing rates and irritated as to why RBI is delaying reduction !.. Monetary measures, seek to increase the supply of credit and not to increase the supply of money to the economy. Central banks are not equipped to increase the level of reserves in the banking system by wishing it. They can merely create ledger money in an attempt to cajole the banking system into normalcy, For close to two years now,RBI has been unsuccessful . Social issues, such as rising income inequality and household indebtedness, are related to the rise of finance into an unprecedentedly dominant force .This is further skewed by the entire finance industry getting preferential treatment from the government -- be it the massive bailouts or the right to borrow massive amounts of relatively free money from the Central Banks, Worse, banks sit on piles of idle cash but do not loan it out into the economy because they are worried about their balance sheets .And this where household savings become vital as it instantly funds our economy that is more dependent on savings,than ever before