The Real & Pseudo Products
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Economics Basics that every citizen should know
Two type of products
Produced in most countries!
The Real Products
VS
The pseudo Products.
• Products and people are inseparable
in economy. Disaster struck nations
where the people were isolated in their
economic theories & practices.
• Profit maximizing has become central
to Economic theories. which benefited
a few Crony Capitalists & Evil among
Leaders to corner the nation’s wealth.
• We will discuss several aspects of
Products in this part.
• There are real products and pseudo
products in most societies in the world.
While the real products are essential for
the survival of the socieity, the pseudo
product ruin the society in general and
well being of people in particular.
• Pseudo products can be compared
1. Anatomy of Economics
to any computer virus. Both are
destructive in nature and benefits the
its creator.
• Also, the pseudo products can be
compared to several viruses that
cause deadly diseases in human body.
Some stories are given to understand
the effect of the product, where ever
required.
List if Products
A. Primary Products -
1. Absolutely necessary for the existence of the
society.
2. Represents to Real Wealth.
3. Common man produce them.
4. Nature’s vagaries affect the production.
5. Very little to no support from Financial
systems (like Banks) of the nation -.
6. People engaged in production of real products
are invariably poor in the society.
Economics Basics that every citizen should know
B. Secondary Products (Derived from Primary
products).
1. Based on Primary Products.
2. Produced with the help of technology,
machines and minimum human efforts.
3. Produced with the investment from Financial
system.
3. Nearly no risk in producing seccondary
products- both financial and business risks.
4. Typically, the Profit per unit of Secondary
product is several fold that what the primary
producer gets.
5. Secondary producers are invariably
Capitalist.
6. Primary producers suffer because they have
no Capital supply for their work.
C. Pseudo Products. (This can be compared to
deadly virus to the economy of any country).
1. Produced by the a small proportion of people,
among capitalist, who are characterised by
their High proportion of wrong knowledge.
2. Production of Pseudo Products results in
pseudo money. This dilutes the wealth of the
nation. The direct impact is that it reduces the
buying power of money to common man,.
3. Important contributor to over-all increase in
prices of commodities.
1. Anatomy of Economics
4. Pseudo products plays a very important role
in siphoning of the wealth from the common
man in the socieity.
Also the pseudo money helps one stash wealth
from, legally and illegally from one society to
another.
5. Bribes from public are pseudo Service
products, generated by leaders and political
party workers.
6. There are a large number of pseudo products
generated by Corporate houses and Financial
institutions.
D. Deadly Products for profit. Crony
capitalists and Global Capitalists encroach the
space occupied in producing Real goods.
In their usual quest for increased profit, the MNCS
introduce technologies, products and processes
that result in the production of Real products such
as food, which are harmful to human health.
1. Use of heavy pesticides in the Farms &
fields.
2. Use of Genetically Modified seeds.
3. Use of preservatives which is nothing but
poisonous leading to health hazards.
No leaders in the developed and developing
nations seem to be bothered about the health
and well being of their citizen.
We will discuss all about the Pseudo products,
Economics Basics that every citizen should know
the producers and the leaders who stand by
them as mute spectators in the next book titled
The Dance of Demons.
In this part, we will briefly discuss what
these products are.
1. Real & Pseudo products.
Story to explain what the Pseudo products
are. This story is based on
An Akbar - Birbal story
A poor boy was hungry. He was walking on
the road to find some one benevolent who
might help him to buy some food.
1. Anatomy of Economics
He stopped near a Sweet shop attracted by
the aroma of sweets cooked there. The owner
watched the boy and demanded to know
what he wanted. He said, he was hungry but
he had no money to buy the food.
Then the shopkeeper demanded to know
why was he hanging around the shop with
no money.
The boy said, “I am enjoying the aroma of
the the food from the kitchen.
The shop keeper was angry and demanded
money for his enjoying the aroma from his
products. He started beating the boy.
An elderly wise man, passing by noticed
the shop keeping beating the poor boy and
decided to rescue the boy.
He quickly grasped the the problem and
offered to pay for the boy’s consumption of
aroma suitably.
He pulled-out coins from his valet. Kept them
between palms of his hand and shook them
to produce loud sound.
To the puzzled shop keeper, the wise man
explained as follows.
The boy consumed the aroma of your
sweet product and not the food itself. As
Economics Basics that every citizen should know
a compensation I am not giving you the
money but the sound of the money which
will amply compensate for the consumption
of Aroma from the food.
Shop-keeper got Pseudo money for sellng
his pseudo product.
What are Real Wealth and Pseudo wealth?
Money that we handle today represent two
kind of product. The real and Pseudo.
For example, the Milk is a real product and
we are willing to pay a price several times
that of water.
The milk vendor often adds water to it and
increases the volume of the product. He
gets the price of milk for the water that is
added to real milk.
Here the water is a Pseudo product and the
money created in one of the several forms
of pseudo wealth.
The buyer is helpless and seller profits by
the helpless of the buyer.
Those who market food products adulterate
cheaper Look - alike with it to profit. All
these look alike are pseudo products of
one kind.
Other examples of Pseudo Products.
1. Anatomy of Economics
The currency notes printed by nation’s
first bank is a reflection or image of real
products.
How to understand if a product is real
or pseudo?
Pseudo products often piggy-back on real
products.
When the Real product is absent, the Pseudo
product has no value.
The products and services produced by
common man is real. Example are :Farm
products, textile, Television sets, Transport
service, entertainment are real products.
Money is a reflected image of a product
or service.
The Currency and Coins minted by Nation’s
central Bank is the first level of pseudo
wealth.
Real Products might perish with time has
limited life time. Sadly, the Money minted
representing the product lives beyond.
Product can be multiplied without much effort.
It is not true with any of the real product or
services.
The Truth the Economic schools did not tell
their students:
Economics Basics that every citizen should know
1. Currency / money is a reflection of Real
Product and Real service. Ideally, the money
should vanish with the real product perishing.
So there is less real product and more of its
images floating in the market.
There is no way of doing it.
2. Further, the danger the pseudo product
Money, is that it can be easily multiplied with
technology. Terrorists across the boarders
use this as a terror weapon, to destroy the
economy of unfriendly countries.
3. The Corporate houses, the capitalist buy
the products from farmers, added a little
value (processing, Packaging) and sell them
at several fold price and grow stronger
economically.
This is possible because the producers of
real product and real service have no access
to the Pseudo product, the money.
The wealth gap between two kinds of people
(one, who has access and the other who do
not have access to financial institutions,
increased rapidly.
4. There are several pseudo products and
services and money is minted against both
Real as well as Pseudo products. This leads
to escalation of price of Real products. (Milk
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1. Anatomy of Economics
example)
Those who could produce and accumulate
the pseudo wealth corner the real wealth and
control the Political and Economic affairs.
Economic Wizards produced
pseudo products
When the scientific community, all over the
world discovered several real product for the
benefit of humanity, the economists created
quite a lot of Pseudo Wealth.
These are the Second and third level pseudo
products, a.K.a dervatives, that create large
pseudo wealth.
These pseudo products dilute the real wealth
and suck-real wealth-out of the economy.
1. Insurance products 2. Stocks 3. Mutual
Funds, 4. Bonds to name a few. 5. Gambling
Products like Criket.
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Economics Basics that every citizen should know
PRESENT ECONOMIC CRISIS
The Pseudo wealth
Has A Parallel in the famous EPIC.
RAMAYAN!
In the days of Ramayan, coronation of the
king of the country was celebrated by people
by participation.
On the eve of Lord Rama’s coronation, the
story goes that huge vessels were kept for
people to contribute rice, milk and every
food ingredients.
1. Anatomy of Economics
At the end of the day, the officials opened
the huge vessel kept for milk to find there
was just water and not the milk!
Everyone who poured thought others would
have poured milk and if I pour water as my
contribution, no one would ever know it.
The lesson.
The economists invented several pseudo
products and floated in the economic
systems of nations, diluting the value of real
produccts and services.
They invented wealth Indicators Like Stock
market Index, Commodity Market index etc
so that the policies of the governments can
be decided based on the performance of the
pseudo products.
Today, Pseudo wealth exceeds real wealth
by several orders.
We will proceed to discuss the pseudo
products, one by one.
Economics Basics that every citizen should know
Economic disaster
Traced to:
(A) Pseudo Wealth Out grew Real wealth by
order of times. We will discuss the pseudo
wealth, next
(B) The idea called Global Economy broke
all means of control by people who are Real
producers. This is a party of mismanaged
story Managed economy.
(C) We already discussed as how Political
leaders succumb to the Corporate houses.
Leaders are Seen as proxies for corporate
houses. How is it?
Invariably the many among the lawyers of
corporate houses double-in as leaders of
political parties. It is evident that Corporate
houses control of economic policies and
practices through their lawyers owing
allegiance to them.
1. Anatomy of Economics
The list of
Pseudo products
That create pseudo Wealth!
(1) The Insurance products
(2) Credit Cards
(3) Gambling
(4) Stocks
(5) Mutual Funds
(6) Commodity traded on-line
(7) A diabolic Financial instrument P-
Note used by Crony Capitalists who are
black money holders.
(8) Deadly Food products with Pesticides,
Genetically Modified seeds.
(9) Everything is Encashed for
Entertainment
We will discuss it briefly in the following a
few pages impact on the society next.
Economics Basics that every citizen should know
4.1 Insurance Products
Good side: The idea behind creating insurance
product could have been noble. It pay way for
Sharing the loss of life and material, due to
nature’s fury, to mitigate its impact among a
group of people.
Suited for economically sound society where
there is a well-defined risk among its participant,
under one umbrella.
Bad side: But today, an Insurance centred world
is created in such a way, one needs to have
several insurance policies to live.
Today, Insurance is a Product. Profits are
motives. Converts the fear in people into profit
by corporate houses. This product would perish
if people are fearless.
Country like India have nearly 90% people have
no means for reasonably nutritious food and a
decent roof over their head.
The health care for common man is ridden with
corruption and misused funds.
A typical example of Insurance taking health
care away from the common man is given, in
this section.
1. Anatomy of Economics
The next book in the three book series,
Titled The Dance of Demons
will bring several interesting facts and
stories about several pseudo products
including insurance. That would
explain why the insurance is a pseudo
product.
Some Insurance Jokes:
Joke 1 Insurance Slogan competition
Four insurance companies are in competition.
One comes up with the slogan “Coverage from
the cradle to the grave.”
The Second one tries to improve on that with
“Coverage from the womb to the tomb.”
Not to be outdone, the third one comes up with
“From the sperm to the worm.”
The fourth insurance company really thought
hard and almost gave up the ace, but finally came
up with “From the erection to the resurrection.”
Joke 2. How did you start a flood?
A lawyer and a broker were fishing in the
Caribbean. The lawyer said, “I´m here because
my house burned down, and the insurance
Economics Basics that every citizen should know
company paid for everything.”
“Thatś quite a coincidence,” said the broker.
“I´m here because my house was destroyed by
a flood, and my insurance company also paid for
everything.”
The puzzled lawyer asked, “How do you start
a flood?”
Growing number of
Insurance companies.
There are more than 55 Insurance companies
Indian market, mostly from the developed
countries, in the recent times.
A simple arithmetic
The number of people who have income that
can be taxed are around 48 Lakhs. They are
the ones who might have some money after
meeting their day-to-day needs, to invest in
financial or Insurance products.
Many among these 48 Lakhs tax paying public
(say, 90% of them) may be in the border of
taxable limits and must be struggling to pay
the raising school fee, increasing instalment
repayment for their home loans.
The Insurance companies spend a huge
sum in advertisement, huge commission are
paid to insurance agents and expenses for
establishment.
Only a small fraction of this 48 Lakh tax payers,,
1. Anatomy of Economics
at best, 0.05% can insure for a reasonably large
sums.
Let us assume, for the purpose of discussion that
every tax payer insures is life, health, property
and vehicles.
There are 55 insurance companies and each
one of them, might have an average of 1 lakh
investors per Insurance Company.
Even if each policy holder spends Rs 1000 a
month (an impossible situation) to buy insurance
products, the net monthly income to each
insurance company cannot exceed Rs 10 Crore.
This would hardly meet the establishment and
salary expenses.
The only way these insurance companies can
survive is through the Governments buying
insurance products on the pretence of buying
insurance products on behalf of poor.
Ideally
The thrust should be to improve the level of
income so that people so that can buy insurance
from their own income,
When 67% of population are below the poverty
line and cannot afford to buy even food without
subsidy how the insurance companies can thrive
in Indian market.
Insurance is both a pseudo product and a deadly
product that has pushed Health services dear to
people.
Economics Basics that every citizen should know
How it Benefits India by giving insurance and
pension fund to MNC?
On one hand Government seeks Investors for
economic activities and projects in India. On the
other, they seek to palm off the huge pension
fund to MNCs from other economies.
In any inflationary economics, the money value
or buying power of money goes down year after
year.
If you barrow Rs 100 today, with 10% inflation,
after a year you need to return only Rs 90 of
today’s worth.
The barrower benefits and not the lender.
4.2 Credit Cards.
Pseudo Product
Money, in itself is a shadow or an image of a
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1. Anatomy of Economics
real product. So money is a pseudo product.
Credit card is an image of money. There fore
Credit card is an image or image second level
of pseudo product.
Even before one earns he can buy a product
or service using Credit card.
This product can be duplicated and used and
not the Real-product (say, a farm product)
or a real-service (Ex: a ride to a certain
destination by a transport vehicle).
Economic wizards can defend the product
logically but in realty, it has its harmful
side.
With whatever way it is secured, this product
lends itself to steel othe
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