Detailed solutions for Covid-19 hit economies

 Present time all nations governments need to make changes in economic policies -

Present time nations centre and states governments  are facing two big problem due to covid-19 spread. Many people lost their life it's shamful of us but we discuss about economic front __

1. Tax revenue losses due to lock down 

2. Unemployment count increasing 

How any country can provide employments to 1.75% - 2% of their work force in service sector within 90 days by Economic and Employment method  of Gopal Maheshwari. I am describing this method. 

Mexican & Bangladesh government can generate 2 million new long-term jobs separately  for their citizens  by applying Economic and Employment method of Gopal Maheshwari

Egypt, Thailand and Vietnam government can generate one million new long-term jobs for their citizens  by applying Economic and Employment method of Gopal Maheshwari.

Canadian government can provide half million new jobs for their citizens in service sector within minimum time. 

Iran, Germany, Philippines,  France, Italy, UK, Japan governments can provide separate-separate  one million new long term jobs to their citizens. 

Russian government can generate 2 million new permanent jobs for their citizens. These jobs are unaffected from recession and company failures. These jobs will be life long settlement till retirement. 

Chinese government  can generate new 20 million new long term jobs by my Economic and Employment method of Gopal Maheshwari.

Brazilian government can generate 3 million new long term jobs by my Economic and Employment method of Gopal Maheshwari.

Present time any Government needs  a Independent economic minister who can think out of the box solutions about Government facing  problems like bank NPA, fiscal deficit financing, unemployment, inflation, poverty and proper use of limited  resources.  Central and state governments relation to compensation people by borrowing or giving earning to their hands.  Problems are many more but solutions is only one increase tax revenue to settle them.  

For high tax revenue growth government need to work on multiple task with associate problem solutions.  So this series i am sharing some solutions. 

Possible ways to boost economy - 

       First give cash in hands of people but government have no more fiscal space to do so. Government can help partially only.

       Second distribute loans to marginal people to boost expenditure but it's depend on borrowers to accept loan or not and after distribution cent percent recovery not possible. Government also need sound banking liquidity at low interest cost.

       Third give tools of earning to people by increasing saving interest rate but this step will hurt corporate and increase government expenditure so not looking possible. 

      But a new idea can provide extra regular income to households so need to use gold, platinum or other precious metals as side currency. Bank should accept deposit and lending in gold platinum and precious metals termology. If 10% of household gold or precious metals deposited in banks then GDP may expand 7% in developing countries and 2% to 3% growth in developed economies. Many big countries may attracts  gold and precious metals in tonnes. When any household earn regular interest on gold  or precious metals  then this extra earning will boost demand of the economy short to long term.

Present time world is facing GDP contrast by covid-19 hit. USA and India most affected nations so I am providing possible solutions in this scenario.

1. USA can generate 5 million and India can generate 20 million new long term  jobs in their economy. 

A. Government can create bulk employments under indirect tax department. I will explained in detailed information in next blog post.

B. Government can create bulk employments by boosting banking. Banks are now facing non performing loans, cost of borrowing and smooth liquidity facilities so this problems can short out by accepting gold , platinum and other precious metal deposit and lending on interest in banks. I will explain how government can use metals as parallel currency to boost economy and currency.  metal attrition will be minimum.

C. Government can create bulk employment by using Gopal Maheshwari method on stressed enterprises management. 

Recession will prevent by Economic and Employment method of gopal maheshwari.

1. Indirect tax back method 

2. Employment method 

3. Low Interest debt distribution 

4. Trade balance method  

These all method create 5 million new lifetime New jobs in USA & make stronger purchase demand boost businesses. 

USA or any country  needs four steps to boost economy ---

1. Need to change solutions of banking bad loans. Stressed companies 30% bank loan should convert in equity preferential shares this will reduce interest cost for stressed enterprises & chances of bad loan become very low, in future sell those preferential shares to private equity or investment firm thus bank can recover their principle amount many time that may be on premium or discount.

2. At the time of the auction of stressed enterprise need to use my method for maximum recovery in present and future. - After auction bidding remain amount convert in preferential shares so creaditors can sell their shares to other companies.

3. Use gold as side currency to boost dollar. Accept deposit & lending in gold termology as 100 gm gold deposit interest 2% and lending interest 3%. Apply this method in banking system.

Three ways to boost economy - 

 First give cash in hands of people but government have no more fiscal space to do so.

 Second distribute loans to marginal people to boost expenditure but it's depend on borrowers to accept loan or not and after distribution cent percent recovery not possible. 

 Third give tools of earning by increasing saving interest rate but this step will hurt corporate and increase government expenditure so not possible. 

But a new idea can provide extra regular income to households so need to use gold as side currency. Bank should accept deposit and lending in gold termology.

 As per indian example If 10% of household gold (2000 ton) deposited in banks then GDP may expand 15%. When any household earn regular interest on gold then this extra earning will boost economy short to long term. Banking lending capacity will increase and this will create derivative deposits 4 to 5 times.

Government should work on three front. First Use gold as currency to strengthen rupee against other foreign currencies. Gold near house hold can play important role for economy. Government should allow to add a gold transaction law for term deposit and gold term lending in banking system. Need to add a section of gold measurement in All types of savings, Current and dollar account. then make a deposit center of gold inside or outside of the bank. Give interst of gold term deposit in gold measurement. like 100 gram gold saving account interest 2.5 gram of annual interest. people are free to deposit & withdraw any time. Need to start gold term time deposit like F.D., Bond, debenture etc. Start gold term loan as 100 gram lending interest 6% per annum. Thus RBI (central bank) will get benifit through gold reserve ratio without interest like CRR near 4%, government will get statutory gold ratio like SLR near 18% in low interest rate, banks get more fund for lending, public get more choice for earning. Corporate and MSME enterprise get gold term loan which is beneficial at time of downtrend prices. allow after six month gold term lending change in rupees and rupees lending in gold. If in next five year banks will become successful to attract gold term deposit and lending then Indian economy may touch 10 trillion dollar in next 5 years. Last conclusion Use gold as currency.

Covid-19 hit USA economic issues create unstability in jobs & new employment generation. So I want to say that USA govt should apply Economic and Employment method of gopal maheshwari for increase tax revenue. Create new 5 millions jobs in service sector within 90 days in minimum investment. These jobs are unaffected by recession and company failure. These are Life long earnable jobs. This theory will reduce corruption and black money.  Citizens of USA will became more aware and accountable. So need to work together federal and provinces governments.

How to increase government enterprises -

          Government can increase public sector units (government companies) count &      strength by  Gopal Maheshwari Economic and Employment method.  PSU banks NPA       on high now ever in history.  So government should allow banks to accept share preferential or general at the time of restructuring of loans so future NPA possibility will become very low. This capital infusion limit set maximum 30% of loan amount thus interest burden of companies will become low and profitable companies shares will sell on high premium thus bank can sell their stack partialy time to time & gain good profit. 

Second at the time of OTS (one time settlement) and NCLT bidding for auction allow FDI (foreign direct investment ) and allows foreign companies to participate in auction bidding. Which amount bank recover that will good and remaining principle and interest amount will convert in preferential shares so this banks stack can give good return in future at time of boom in sectoral demand. It's sure shot formula to strength PSU and their numbers.

Government should use my economic method to reduce bank NPA( Non performing assets ). Present time government banks are facing liquidity for NPA provisining. We have seen mostly all companies after NPA settlement go to NCLT (National company law tribunal) or OTS (One time settlement ). NCLT invite bids from others for auction company. After auction company sold in 25% to 50% of the bank lending amount and bank recover only 25% to 50% of lending principle amount. Bank lost their interest amount also in that period NPA time to auction period gap but after auction company shares rise sharply and reached 10 times to 70 times more then their price at auction. This example present time as per Indian companies ruchi soya (patanjali owning now) and alok Industries  (Reliance Industries owning now). Govt should make a rule that after auction which amount shortfall in principle & interest amount shall convert them as preferential shares so in future price hike of shares banks can get good amount of selling those shares. 

Govt need now three measures

1. Finance for deficit & investment 

2. Bank NPA resolution in 3-6 month 

3. Employment Generation 

Above steps must work in present Covid-19 pandemic.This all solutions described detail by Gopal Maheshwari Economic & Employment method. Need to know.

Main point is to apply extensive GST or indirect tax method government can provide 20 million New lifetime employment in service sector in india. These jobs are unaffected by recession and company failure as Lockdown. This method will connect government to marginal people of india.

Please use swadeshi economic method for revival. Need same changes-

1. Debt to equity ratio to redress Banking NPA & Sick industry

2. Gold monetise to attract worth 10 lakh crore new deposits in banks if 10% household gold deposited it may be more.

3. Use Extension GST for revenue growth & 20 million New lifelong employment in India.

Need to use swadeshi economic method for revival 

 Change Debt to equity ratio by 30% to redress Banking NPA & Sick Industries. 

Bulk employment providing method for youth of all around world. 

1. How any country can provide employments to 1.75% - 2% of their work force in service sector within 90 days by my method for employment. 

2. How and which way center & states  governments can work together for bulk employment generation.