13 September 1987, Calcutta

In both social and economic life this depression becomes unbearable for one and all. Such a depression took place between 1929 and 1931. During this depression in Bengal, five kilos of brinjal were sold for one paisa, and forty kilos were sold for eight paise in the Burdwan market, but there was no one to purchase these items. There were also big curtailments in salaries, and people had to accept salary cuts of ten percent or more.

This depression will occur in the industrial subsection of the
commercial economy. It will have widespread and devastating consequences for humanity.

An endeavour should be made to shorten the span of this economic depression. Before the final culminating point comes, it is possible to avert the disaster and accelerate the speed of social movement. We can do so by creating a socio-economic and cultural impact on the entire social structure through PROUT (www.prout.org) . As the world is passing through a most critical phase, we should be more active and create an impact. If the positive impact we create coincides with the explosion, the effect will be excellent.

It must be borne in mind that both inflation and depression result from the ailment of staticity. If the production in a country is abundant and the gold bullion reserves are in proportion to the country's economic position, there is no possibility of inflation. However, if the circulation of the capital decreases as a result of staticity and the quantum of production also goes down, then inflation is bound to take place.

If a country has a constant deficit in foreign trade, in that case also
there is the possibility of inflation. In addition, if foreign trade is
not conducted according to the barter system and the country has to import foodstuffs and export raw materials, inflation will certainly
occur.

On the other hand, if there is sufficient production and adequate supply, but suddenly the quantum of demand falls, then the value of money suddenly increases for the buyer. This is called "negative inflation" or "deflation".

-P.R. Sarkar