Chinese whispers

This refers to your editorial, ‘China’s debt mountain’ (October 23). The highly leveraged structure of the Chinese economy is a matter great concern not only for India but also for the global economy. After the 2008 financial crisis, China focussed on boosting domestic demand for its products making available liberal credit first through state-run banks and then through shadow banks.

China’s debt kept steady at about 150 per cent of GDP from 2003 to 2008 when the economy grew on average 10 per cent during the period. Ideally, credit must grow at a pace lower than economic growth. China’s growth has slowed down so much, it may even throw the banking system out of gear. This has the potential to disturb money, commodity and stock markets across the world.

Philip Sabu

Thrissur, Kerala

We all know what mayhem resulted when the Lehman Brothers crisis broke. Now China is assumed to have three times the debt of its total GDP — we can only pray and keep our fingers crossed as it will have multiplier effects. As mentioned, we cannot choose to be ignorant. We must take bold steps to revive our economy.

Bal Govind

Noida, Uttar Pradesh

Deadly air

The extent of air pollution in India can be gauged from a 2013 World Bank study that diseases from burning fossil fuels and outdoor pollution is costing India a small fraction of its GDP each year. Another study says it has reduced the life expectancy of Indians by an average of 3.4 years, and of those living in Delhi by 6 years.

Lancet reports that living near heavy traffic might cause dementia. What is the use of singing “sujalaam, suphalaam, malayaja sheetalaam” when we pollute our natural resources so much they become killers?

CV Krishna Manoj

Hyderabad, Telangana

Missing the point

This refers to ‘Mersal as GST for dummies’ by Venky Vembu (From the Viewsroom, October 23). The right to criticise or comment or artistic freedom does not mean that a factually incorrect picture can be projected. Opposition parties are supporting the filmmaker as if GST has been implemented unilaterally by the Centre.All States and UTs have passed the State GST Act. Instead of exposing the opposition parties, local BJP leaders are targeting the actor and providing unnecessary publicity to the film. Giving it a religious colour is immature.

S Kalyanasundaram

Email

Unwise move

This refers to ‘Cut in deposit rates drives investors to MFs’ (October 23). The fall in interest rates in deposits will particularly affect senior citizens. It was unwise on the part of the banking sector to reduce interest on FDs. The sharp fall in deposits will also reflect on the income of banks since lending to borrowers will suffer due to a fall in the availability of funds. The Government should look into the implications of all this and initiate appropriate steps.

TR Anandan

Coimbatore

There is every reason for the investor to switch over to MFs which are not only safe but also fetch handsome returns in the form of dividends and long-term benefits due to rise in NAVs. MFs have a unique way of investing the corpus in debts and equities with fund managers looking after the portfolios to enhance profits to employers. This makes investors have supreme confidence in MFs through SIPs as the money is automatically deducted every month and the pinch is not felt.

HP Murali

Bengaluru

Unconstitutional

The ordinance enacted by the Rajasthan government which treats the act of disclosing the names of public servants allegedly involved in cases of corruption before the government formally prosecutes them is retrograde. It infringes on the right to freedom of speech and expression.

It is ironic that the BJP, which came to power saying it would end corruption is still turning a deaf ear to vociferous calls for the creation of the Lokpal, an anti-corruption ombudsman.

M Jeyaram

Sholavandan, Tamil Nadu

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