Thursday, April 9, 2009

America Needs To Go The Nano Way!

The TATA Nano bookings start today and I’m sure this car will be a massive bestseller; I think America and the entire world should learn something from it. 

I was recently speaking to a 70 year old economist who had worked with the IMF.  He was quoting J.M. Keynes and saying how the best solution for the economic crisis is that Governments start spending more and more and should start giving out money in the form of bail-outs and stimulus packages. 

One of the main reasons for the global economic crash is this way of thinking which assumes that economics and finance are all about memorizing names of ancient economists and drawing complicated graphs and diagrams. I have respect for everybody, however having respect doesn’t necessary mean following what they do blindly. Just because something was right decades ago, doesn’t mean the same thing is right today. Keynes' world was very different from what things are today. American companies, mainly in the financial sector, are filled with frauds, scams and toxic assets and today money can move within seconds from one continent to another thanks to the internet. 

The old rules of finance and economics are extinct and simply providing trillions of dollars in the form of stimulus money is just going to make the crash deeper. Part of the reason today the world is in a problem is because America followed a policy of spending more and more; and doing the same thing once again now will only mean more trouble. 

Obama is a good man, but fortunately or unfortunately that isn’t the only quality needed to run a nation that is bankrupt. The recent G20 conference where he talks about pumping in more and more dollars in the form of a stimulus package is certainly not going to help the American economy. I don’t want to sound alarmist, but if things continue the way they are America will see major civil unrest and the crisis will get deeper due to rising unemployment, un-paid mortgages and a crash in the dollar. 

In the coming few months, American companies might see artificially inflated financial results and there might be an artificial short term rally across the globe. However, please do not be tricked into believing that everything is alright there.  The companies where fraud can be done very easily are financials and companies which aren’t into hard core manufacturing activities. 

I am very optimistic about India’s long term growth and future and I believe that everything that is happening in the world today will help us a lot in the longer term. As I have always mentioned, now is one of the best opportunities in the history of India to gain a more powerful and dominant position in the world. It is also an excellent long term opportunity for Indian investors to learn more and make the most of now. Since there is so much uncertainty and people are scared, anyone armed with knowledge can benefit by seeing the future. When most other people are wearing blinders of pessimism, it becomes even easier to attract Lakshmi for those who have Saraswati on their side. 

However, I hope that our government and economists stop simply following the West blindly. It is high time we realized that the system that has been followed by them for decades is no longer valid in the modern day world. 

I know a lot of conventional and conservative economists don’t agree with our radical ideas and views, but that is what the Happionaire way is all about. A section of our country is still in awe of anything western and foreign. We need to realize that it is high time India, regained its lost glory of the times when we were one of the richest and most prosperous nations in every possible way. In fact Columbus, the man who discovered America, had actually set out in search of India as people all over the world had heard stories of its prosperity and wealth. No wonder he ended up calling the early inhabitants of America – Indians. 

We need to realize that we are no longer simply followers, but leaders and we can show the world the right way of doing things. I already see that happening. Today while GM makes fuel guzzling SUVs, TATA Motors makes extremely fuel efficient and practical cars like the NANO. Do you remember, when Mr. Ratan Tata spoke about his dream, most people in the West and even a few Indians laughed and made jokes, but today we can see who is having the last laugh. The NANO is young, alive and vibrant while the old gas guzzling SUVs are bankrupt. People like  Ratan Tata prove that it is never too late to start something new and go after one’s dreams. Looking at him makes me even more passionate about spreading the Happionaire way to each and every Indian. 

I see many more innovations and new ideas coming out of India in every field, and if America really plans to get out of trouble, it needs to understand that the world is changing and what was right decades ago is extinct today.

May you always be blessed with Saraswati and Lakhsmi!

Yogesh Chabria

P.S.: Just recently I met someone who is known as “The Chameleon” in the inside world of investing. He wanted to meet me after reading Happionaire’s Cash The Crash. I will share more on it shortly. 


Anonymous said...

America and the West have behaved as if they are always right and the supreme forces. They talk about Human Rights, but look what they did in G20 to innocent protester. India can regain its lost glory only if more people believe that we can do anything we want to and are no less than anyone else. I am glad you have bought this topic and I am proud of NANO too. It is more advanced than BMW and BENZ according to me. Anyone can put lots of money and make BMW - but to get good quality like Nano at so cheap a price is genius.

Yogeshji who is "The Chameleon" I am so curious to know more?


malini said...

Kudos to another excellently informative and motivating posts from you! You are the man who has made people like me take interest in finance, money and investing. I loved reading Cash The Crash and like everybody else loved it.

malini said...

Also who is this the Chameleon and why is he called that? And what were these talks about?

harmesh said...

Dear Yogesh Sir,

I finished reading Cash The Crash by staying up the entire night and read over 260 pages. It was so interesting that I couldn't keep it down. This is quite an achievement for you - because I rarely read.

Only thing I feel bad about is that I didn't buy this book earlier, the one company you shared has moved up over 40%. I guess it is because so many people are buying this book.

Thanks for making me smile once again.

Sunil said...

Yogeshji I am someone who works for a stockbroking firm in Mumbai and out team often has discussion over such new ambitious project, like the recent one being NANO. Lot of people out there feel that either this CAR will take TATA MOTORS to those heights were no Automobile company has ever reached or this car might lead to bankruptcy, but I personally feel that this car will do exceptionally well in rural areas.

The Happionaire™ Blog said...

Glad to know so many of you are enjoying CTC.

I'll share more on "The Chameleon". I got to learn quite a few new things, some of them a bit controversial and can change the way we look at a lot of things.

Sunilji, something inside me says that the NANO will sell even beyond Mr. Ratan Tata's expectations.

-Yogesh Chabira

Anonymous said...

Hi, Yogi,
The suspense it seems of "The chameleon" is killing every one.
As for Nano, all through their almost 150-year history, the Tatas have been led by visionaries who have shaped the nation’s destiny in many ways. Jehangir Ratanji Dadabhai Tata, popularly known as JRD, was not only a successful industrialist but also pioneered civil aviation in India.
From manufacturing steel and automobiles, to selling tea, from creating jewellery, watches and cosmetics, to making salt, from financial services to generating power for the people, the Tatas have touched every part of Indian life. They also led the way in setting up infotech services in India when the Tata Consultancy Services was established in the year 1968.
Mr Ratan Tata’s dream car, the Tata Indica was India’s very first indigenously designed and developed car and was launched in 1998, seen today on the city streets in its many avatars. The Tatas not only dominate the list of ‘Firsts’ in India, but also made it to the international list when the “One Lakh Car”, the Tata Nano was launched.
The spirit of the Tatas was very evident during the 26/11 crisis and after. The Taj hotel has risen like a phoenix from its ashes despite being badly bruised. Ratan Tata, the Tata group chairman, emphatically said “We can be hurt but not knocked down”.
All Tata companies share a set of five core values of Integrity, Understanding, Excellence, Unity and Responsibility. The Group and its companies have been distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This legacy has earned the trust of the Group’s stakeholders in a measure few business houses can ever match.
The purpose of the Tata group is to improve the quality of life of the communities they serve. Thus, they have targeted various key rural development issues and have aided in the progress of the suppressed sections of society by setting up projects like the Central India Initiative, Himmothan Pariyojana, Kharash Vistarotthan Yojana and also by reviving the Green Revolution in India.
Tatas believe in giving back to the society, what they have earned from it. As part of their corporate social responsibility, the Tatas have organised various Domestic Management Programmes in Jamshedpur, for housewives of the company’s employees. They have also organized programmes like ‘Tejaswini’ for the empowerment and upliftment of the female section of society.
The Sir Dorabji Tata Trust was established with a vision for the development of the nation. The Tata Institute Of Fundamental Research (Mumbai), Tata Institute Of Social Sciences (Mumbai), the Tata Memorial Hospital For Cancer (Mumbai), Sadhaan Education Resource Centre (Jaipur), Indian Institute of Science (Bangalore) are a few of the esteemed institutions that have been set up by the Tatas. The new thrust is on climate change which is an imminent threat to mankind. Tata companies are focusing on minimising the impact of their operations and creating awareness in society.
While the city of Jamshedpur was being built, Jamshedji Tata had said, “Be sure to lay wide streets planted with shady trees, every other of a quick growing variety. Be sure that there is plenty of space for lawns and gardens; reserve large areas for football, hockey and parks; earmark areas for Hindu temples, Mohammedan mosques and Christian churches.”, and this is exactly how Jamshedpur is today.
Jamshedji Tata’s birthday on 3 March is commemorated as founder’s day. And ‘Tata Steel city’ in Jamshedpur wears a festive look and a variety of functions are held to mark this occasion. The celebrations kick off with fireworks and a dazzling illumination of the Jubilee Park, which was presented to the city on the completion of its 50 years. This is the day the Tatas re-dedicate themselves to society and nation building.

Anonymous said...

Agree with Wadiaji on the mystery "Chameleon"

Just out of curiosity Wadiaji, do you belong to the TATA group? You seem to have a lot of knowledge on them.

I liked the story shared about TATAs going back hundred years in the steel business by Chabriaji in Cash The Crash. I have been reading a lot of good reviews of the book and even saw quite a crowd around it at the Bangalore airport. Am glad to see the Happionaire way growing and inspiring so many Indians.

P. Khurana

Sachin Wagal said...

Hi Yogesh,

Just to share a thought...

Possible way out of financial/slow down mess
Seems like the only way out for the world to get out of this mess is to ensure job security to one and all as far a possible. This can be achieved for sure by restricting salary cuts and job cuts by all companies making net profit and restricting job cuts by all companies making cash profit.

This will instill confidence in the working class community to spend without worrying too much about job security and personal cash flow and also working towards ensuring their respective companies are profitable.

The steps being taken by G20 are just to protect CAPATILIST who comprise just a very very small percentage of the world population. Infact there is no mention of job protection and salary protection for individual’s from companies who are doing this just to please CAPATILIST population.

Be it Obama or any other politician, end of the day they are politicians and they just do not have the will to take decision that can pinch the CAPATILIST population (as politicians themselves are CAPITILIST J). Infact CAPATILIST population should understand that at the end of the day if individuals start spending again without thinking of tomorrow then only will the wheel of economy move freely and they can make money.

Printing Money
Pumping of artificial money can only lead to further inflation. Infact most of the companies have still not understood the game of selling more by reducing prices and inturn creating/protecting jobs. If you see most of the end product prices are still the same (no change), infact many consumer companies have increased product prices quiet strangely.

With this approach very hard to believe the world will be out of this mess ever.

PS: Even if we get out of this mess due to huge money printing, it will only be a temporary phenomenon. Ultimately the world will get into a bigger mess which may lead to undesirable consequences, such as civil/world war.

Warm Regards,
Sachin Wagal

sameera said...

Sachin I finished reading Cash The Crash and then read your comment here. I am understanding more what you are saying after reading CTC and finally figuring out how this small group of so called "Capitalists" think and cheat poor people.

They fail to understand that it is high time they stop their tricks because people are learning an understanding. The bail out and stimulus is a sham and trick to fool common people. I saved lakhs of rupees after reading the first happionaire book and learning about the real estate crash, if it wasn't for the Happionaire way I would have given away and lost lakhs to fraudulent builders. Knowledge is really very powerful and the reason the capitalist elite don't want to simplify it is so people like you and me get tricked by them.

This blog and forum has been a real blessing for me to learn. Your idea is very good Sachin of making sure jobs are protected.

Jasmine said...

The Happionaire's Cash the Crash is an interesting and marvelous book.One can't just get off their eyes from it.

Every line in it motivates and inspires me, and keeps on making me more knowledgeable.

The best part is that it is simple to understand, and that's the reason why even 18 year olds like me are hooked on to it.

I would say it's book which makes the entire world smile, and like a 'MUST BUY'.GREAT GREAT GREAT book'Yogesh.


Surender Bhavnani said...

Dear Yogesh

Am a readre of your Books

Like to draw your attention on this article which you may be aware off

Just Google about Gerald Celente, the CEO of Trends Research Institute and his company

You will get him on the net

Analyse this email below and comment thereafter

U may also forward the same to people in USA and get the local feedback there

Surender Bhavnani

Shocking predictions >>>>

The man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions - all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.

Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week.

Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.

"We're going to see the end of the retail Christmas....we're going to see a fundamental shift take place....putting food on the table is going to be more important that putting gifts under the Christmas tree," said Celente, adding that the situation would be "worse than the great depression".

"America's going to go through a transition the likes of which no one is prepared for," said Celente, noting that people's refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.

Celente, who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar, told UPI in November last year that the following year would be known as "The Panic of 2008," adding that "giants (would) tumble to their deaths," which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.

The consequence of what we have seen unfold this year would lead to a lowering in living standards, Celente predicted a year ago, which is also being borne out by plummeting retail sales figures.

The prospect of revolution was a concept echoed by a British Ministry of Defence report last year, which predicted that within 30 years, the growing gap between the super rich and the middle class, along with an urban underclass threatening social order would mean, "The world's middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest," and that, "The middle classes could become a revolutionary class."

In a separate recent interview, Celente went further on the subject of revolution in America.

"There will be a revolution in this country," he said. "It's not going to come yet, but it's going to come down the line and we're going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen."

"The first thing to do is organize with tax revolts. That's going to be the big one because people can't afford to pay more school tax, property tax, any kind of tax. You're going to start seeing those kinds of protests start to develop."

"It's going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we're going to see many more."

"We're going to start seeing huge areas of vacant real estate and squatters living in them as well. It's going to be a picture the likes of which Americans are not going to be used to. It's going to come as a shock and with it, there's going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people's minds weren't wrecked on all these modern drugs – over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody's comprehension."

v.reddy said...

Dear Bhavnani

What you say was hinted by a few of my close friends who are in contact with the US government. If I can understand correctly and read between lines, Yogesh had hinted the same almost a year ago and has made these hints in Cash The Crash too.

Personally I feel this is quite possible and even in this post I agree "civil unrest" is a more polite word to use. But what I eager to know about is The Chameleon.

I am 44 and it is nice to see such a big variety of people here and see even the youth of our nation are followers of the Happionaire way. I don't think anyone else would have been able to attract such a large number of followers to something that has been considered boring and complicated in the past. Though a lot of the Happionaire way is very radical and new.


kunal said...

Chabria Sir,

I think I have heard of the mysterious Chameleon investor. Is he the one who made a few billions going against people like Lehman and Bear Stearns? If it is him then I am sure you must be having access to very important knowledge and information from him. From you and other great people I have learnt, that TIMELY KNOWLEDGE AND INFORMATION is key to riches, wealth and success. Please share more about your meeting quickly. You are like my guru.

Your follower.

neha said...

You are right. American management and companies can learn a lot from the Nano. I am living in New York, and here it is a shame that these big shot I-bankers still spend millions of dollars on luxury cars and jets. They need to learn from people like Mr. Ratan Tata and the modern world's biggest and most important innovation the Nano.

I hope more people learn from it and bring the same innovation in other fields too. The Nano Bus or Nano Plane would be excellent. No?