The cycle of credit..

During those simplistic & nostalgic days of my childhood, when i was an obedient and a fearful student studying in a convent school and was nearly on verge of being called a convert,  i  was taught a story in my syllabus, in which year of learning, i dont recall now, but the story was of how wheels of economy work. The story goes as follow.

There was a village in Old England, the whole economy of the village had crumbled as people started saving and stopped spending. There was gloom all over as the circulation of money stopped literally. The shops were giving sadistic & deserted look. People were somehow not spending enough to give a fresh lease of life to the village economy.

The festivitiy period of Christmas was fast approaching, and on one fine day, a man approached the jeweller and ordered necklaces and other ornaments for christmas. He didnt make any payments just told he would collect the ornaments on Christmas day. The Jeweller became very happy as he could make some earning this christmas,  so he went to the tailor and ordered the dresses and coats for himself and his wife. The tailor in turn overjoyed, went to the carpenter and ordered some furniture, this cycle continued unabated and the whole economy worked once again.

On the Christmas day, two policemen came asking to the Jeweller about a man who usually went to a Jeweller Shop and ordered for ornaments, the cops,  to the total shock of the poor hapless jeweller further added that the man was an insane person and had ran away from nearby asylum. The jeweller realized that the person who ordered the jewellery was the same person. But the jeweller did not feel sad, as the man had once again set the wheels of economy rolling.

The story had a long lasting impact on me, dont know why,  was it because of its beautiful concept, or was it because of the way our teacher taught those years, they did not just read out the chapters, but they nearly recreated the whole scene in front of their pupils.

In this era of globalized village, where one failed bank sets the whole global economy into inward shell, resulting into global recession, as we witnessed just a couple of years before, the story holds forth. The government perhaps is doing the right thing by pumping in money, so that the wheels of the economy remains well greased and keep rolling. Just a couple of days back i read that huge funds were pumped in Greece as it was nearing bankruptcy.  Even our government announced financial incentives and packages, thereby averting impact of global meltdown to a certain extent, not that we were totally saved, but we could face it.

Perhaps only India & China withheld its nerves and its economy. Was it only due to this packages, or was it the inherent strength of its economy & its growing prowress, needs to be analysed however.

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