Theory | wealthymatters

Ek The Dhirubhai – There Was Once A Dhirubhai

September 7, 2011 1 Comment

Here is a documentary on Dhirubhai Ambani I found on the internet.I’m afraid it is in Hindi and I’m sorry I can’t find a copy with subtitles.

This documentary was apparently aired on News 24 which I don’t have so I missed it when it was first aired.I got to see some rare pictures of Dhirubhai here.It was also nice to hear his neighbours and associates describe him.What struck me most was how Dhirubhai never discouraged any beginner from starting out in his own field.I would love to have that sort of self-assurance.

Do watch the videos below and enjoy!

Quotes From Dhirubhai Ambani

September 6, 2011 55 Comments

wealthymatters.com

Personally I admire Dhirubhai Ambani’s way of not letting other people circumscribe his dreams.I believe that if a person can dream up something he/she can do it.It may take time and effort and persistence but its not impossible. Personally I believe dreams are worth fighting for because they are a representation of out truest self and out innate abilities.Anytime I have self doubts I find that reflecting on incidents from his life gives me courage.After all life has not tested me in the way it did him.And anytime anybody tells me that something is undoable in one lifetime I just tell myself to see how far Dhirubhai came in one lifetime.Following are some quotes from the great man.Use them to spur you on in life.

“Only when you dream it you can do it.”

“For those who dare to dream, there is a whole world to win!”

“I, as school kid, was a member of the Civil Guard, something like today’s NCC. We had to salute our officers who went round in jeeps. So I thought one day I will also ride in a jeep and somebody else will salute me.”

“I am deaf to the word “no”.” Read more of this post

Filed under Entrepreneurship, Theory Tagged with Dhirubhai Ambani, Dreams, entrepreneur, Entrepreneurship, post a day, Quotes, RandomBlog2011, Reliance

Money Created by Banks

September 4, 2011 2 Comments

wealthymatters.com

For all of you who have been watching the Paul Grignon videos here is a little something about money created by banks.

The basic text book view is that commercial banks create money through fractional-reserve banking,i.e. the banking practice where banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all these deposits upon demand.Commercial bank money is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions.Also there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent.So central banks make deposit insurance mandatory for banks. Read more of this post

Filed under Theory Tagged with banks, base money, broad money, credit creation, fractional reserve banking, money creation, postaday2011, Prof. Richard Werner, RandomBlog2011

All About Money

September 4, 2011 3 Comments

wealthymatters.com

The last couple of days I’ve been watching the sort of movies that challenged me to think about money theoretically.So to brush up on stuff I last had to deal with some 15 years ago I’ve been surfing the net for the sort of stuff found in basic economics books.In case you too need a small revision or you are totally new to economics here’s a chance to catch up.

BTW I’ve tried to make the whole experience as un lecture like as I can.Enjoy!

Definition : What is Money?

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.

Examples of Money:Cowrie shells,beads,metal coins,paper money,electronic money etc.

Since money involves so many things it is identified by the functions it performs.Any kind of object or secure verifiable record that fulfills these functions can serve as money. Read more of this post

Filed under Theory Tagged with commodity money, currency, fiat money, functions of money, Money, money supply, postaday2011, RandomBlog2011, representative money

Money as Debt – Promises Unleashed

September 4, 2011 1 Comment

‘Money as Debt-Promises Unleashed’ – I watched this documentary last night.It is made by the same person who made ‘Money as Debt’.Here is more about it :https://wealthymatters.com/2011/09/03/money-as-debt-paul-grignon/

This documentary too is worth watching.Personally I found that it challenged my mind to stretch just a bit more to understand the supply of money. Honestly,I think I’d have to watch the movie a couple more times to take in all the implications of the arguments that Paul Grignon makes.The documentary did change my way about thinking about my bank deposits and it managed to convince me that indiscriminate money creation by banks and other financial institutions leads to many systemic problems.But at the same time I’m not able to buy the argument of the earth being unable to support infinite growth.It’s too Malthusian for my tastes.And I believe too much in the ingenuity of man and the abilities of science to accept that the world’s resources are so limited.Admittedly,man may devastate the earth in the short run and pay the price for it but mankind will also learn its lessons well and come up with the right solutions.I also find it hard to see compound interest,investing and modern financial transactions as an unmitigated evil.I believe that every financier is not a gambler. Read more of this post