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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

From Microwaves to Autoclaves: How Hospitals Manage Biomedical Waste

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Hospitals and healthcare facilities generate vast amounts of biomedical waste every day — from contaminated bandages and syringes to plastic disposables and pathological materials. If not treated properly, such waste can spread infections, harm the environment, and endanger public health. Over the years, different technologies have been developed to disinfect and reduce biomedical waste safely and sustainably. Among them, microwave systems, hydroclaves, and autoclaves are three widely recognised methods, each with its own working principles, benefits, and limitations.


Microwave: A microwave oven is a familiar appliance in most households. However, the version used for treating biomedical waste works differently. It is essentially a steam-based process, where disinfection occurs through the action of moist heat and steam generated by microwave energy. Microwaves are very short microwave systems, hydroclaves, and autoclaves waves in the electromagnetic spectrum, and the same property that makes them effective for cooking also makes them suitable for disinfection.


The intense vibrations produced by microwave energy create friction, which generates heat and turns water into steam. This heat denatures proteins within microbial cells, thereby inactivating pathogens. In this way, microwaves act as a quick and efficient disinfection system.


Many microwave machines are equipped with an internal shredder. Once waste is loaded, it is broken down in the hopper by a rotating feed arm and ground into smaller pieces. These shredded particles are then moved through a rotating conveyor screw, where they are exposed to steam and heated to between 95° and 100°C by four or six microwave generators.


The treated waste is discharged directly into a bin or roll-off container, which is then sent to the landfill. This technology is approved as an alternative method of biomedical waste treatment in many countries. The internal shredder reduces waste volume by up to 80 per cent. However, the high cost of microwave systems makes them unaffordable for most hospitals and operators.


Hydroclave: The hydroclave is a double-jacketed vessel fitted with fragmenting paddles inside. It is capable of processing a wide range of waste, including bagged waste, sharps containers, liquid containers, cardboard boxes, metal objects, and even pathological material.


Once the waste is loaded, the door is sealed, and high-temperature steam is introduced into the outer jacket. Heat is transferred through the inner surface of the vessel, so the steam never comes into direct contact with the waste. This system allows part of the steam to be reclaimed and returned to the boiler, improving efficiency over multiple cycles.


However, one drawback of the hydroclave is its high initial energy demand. Large amounts of steam are needed at the start to heat the vessel through conduction, making it expensive to operate. For this reason, hydroclaves are rarely used by operators in India.


Autoclave: This is a very commonly used appliance in most hospitals for the sterilisation of surgical equipment, cotton bandages, gauges, etc. However, it has become a very important appliance for treating the infectious solid waste, like plastics stored in the red bags and metallic objects from the hospital waste. It consists of a metal chamber sealed by a charging door and surrounded by a steam jacket.


Steam is introduced into both the outside jacket and the inside chamber, which is designed to withstand elevated pressures. Steam is introduced into the autoclave at a temperature of 121°C for a minimum of 30 minutes under at least 15 psi pressure. Supplementary air is poured automatically to maintain the temperature for the desired time. After the desired time, the waste is allowed to cool and then unloaded. The plastic articles are now shredded using a mechanical shredder and sent for recycling.


Biomedical waste management is a critical part of the healthcare infrastructure. Microwaves, hydroclaves, and autoclaves all play a role in ensuring infectious waste is treated safely before disposal. While advanced systems like microwaves and hydroclaves remain costly for most hospitals in India, the autoclave continues to be the most practical and accessible solution. As technology evolves, the challenge will be to balance affordability with efficiency, ensuring safe healthcare waste disposal across the board.


I will continue with this next week. Have a nice weekend!


(The author is an environmentalist.)

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