What if I told you the increase in vehicle prices are due to these banks and leasing companies?

Let me start off with an example. I want to by a three-wheeler and I have 70,000 in cash. If the three-wheeler sold for 100,000 I would go to someone borrow some cash and would repay it back in a few months or so from the money I made out of the three-wheeler, that would be my maximum purchasing power. One time full repayment.

Now the leasing company pokes it's nose into it. It says, "Okay, you just pay me 50,000 and you can take your three-wheeler home and pay me 5000 each month for 12 months", by which the Leasing company makes 10000 by just doing nothing. By nothing I mean "Zero economic output"

Now there is this three-wheel salesman who is thinking, "Okay with the intervention of leasing company, his purchasing power has increased. So why don't we increase the price of the vehicle a little bit and see if the leasing company will pay for it".

Obviously, the leasing company pays for it. Because more money lent out means, more interest and more income for the leasing company.

There is another guy who thinks similar to the sales man, it is the government. Government sees a spike in the number of vehicles. Finance minister asks for himself, "If I increase the vehicle taxes, will people continue to import new vehicles?. Yes of course they will, because everybody has the back of the leasing company." So the government taxes the vehicles saying that there is an increasing number of vehicles on the road. It's a fucking lie in the first place. If they are just worried about so many fucking vehicles on the road, they'll improve public transportation such as trains.

You know, it is like they tax the cigarettes, "Oh, it's bad for your health. So we are going to make more money out of your rotting lungs". Let's get back to the leasing companies.

The fundamental problems lie in these insurance and leasing companies. Let me tell, that is why you have an increase in the cost of health care, that is why you have an increase in your cost of education, that is why you have an increase in your cost of vehicles.

Any business in the world has only a small margin of profit, except for some businesses. If they have a gross margin of more than 5%, it is really good. The money market in Sri Lanka is the only place where the margin is around 12%-15%. It's insane!

There is no economic output from the banks, they are just making money hand over fist. Farmers are the ones who put real economic outputs, importers & exporters are the ones with real economic output. Manufacturers are the ones with real economic output. Programmers and tech companies are the ones who have a real economic output. The banks are earning profits at the cost of these people.

What if I told you, this is inflation? Simply, interest is inflation.