Analysis of Indian news dated 03-Jul-2012
July 3, 2012
Indian government granted coal blocks to small unknown companies for free. These companies then sold off the coal blocks for a huge profit. Had the Indian government used auction process, then India would have earned a huge revenue. Does anyone smell corruption?
I say, auction should be the ONLY route to sell off the natural resources. Then alone will corruption reduce in auctions.
Imports are rising for India. The main reasons are huge subsidies and poor education (leading to inability to develop high-tech products). Hence, trade deficit is rising and Indian rupee is weak.
I say, unless we almost eliminate subsidies, reduce taxes and eliminate most bureaucratic hurdles, India’s growth will be weak.
India has a huge inflation. Its currency keeps falling in value. So more and more Indians are keeping their savings in precious metals.
I say, it is a smart decision. Unless, the Indian government reduces trade and budget deficits, Indian rupee will be weak. So saving in gold/silver makes sense.
During the recent credit bubble the PIIGS country banks created and then sold a bunch of low-quality mortgage bonds to European governments. Now they’re buying them up at big discounts to the original price, booking a profit on the trade. Billions of dollars are being transferred from tax-payers to banks. This may be legal, strictly speaking, but it’s definitely immoral. Europeans should protest against this daylight robbery. (Reference.)
International banks have openly admitted that they willingly/gleefully participated in LIBOR-related fraud, which impacted $350 trillion derivatives / loans in scope. They have now proclaimed that its acts of fraud are themselves “too big to fail”.
I say, if something is “too big to fail”, then it is “too big to exist”. Break down the too big to fail. Let everyone rise or fail on their merit. No tax payer bailout or law forgiveness for anyone, especially bank.
Buy physical gold and silver to protect yourself. If you cannot touch it, you don’t own it. Exit all paper investments including ETFs, stocks, PF, PPF, NSC, etc.
goldsilvereconomy 