Analysis of Indian news dated 09-Jul-2012
July 9, 2012
Nearly 50% of public sector mega projects are behind schedule. Also their cost is revised to ₹6.8 lakh crore against ₹5.86 lakh crore earlier.
The solution is not strict monitoring of public sector projects. The solution is to privatize maximum projects.
Time magazine Dr. Singh is an underachiever. I disagree. Performance can be judged only if the person has been given authority to take decisions. Congress party had given only a limited flexibility and authority to Dr. Singh. So how can Dr. Singh be an underachiever? The entire Congress party has under-achieved. All leaders of the party share this blame.
RBI sets up a portal to spread awareness of counterfeit currency notes; while Kenya enables mobile-cash so that most transactions are electronic, without any physical cash being exchanged. A few years down the line, we will see whose decision was better.
Inflation in India is much higher than developed countries. So India has higher interest rates than developed countries.
The solution is not to cry for lower interest rates. The solution is to aim for lower inflation by reducing subsides and hence the deficit. Then interest rates can come down.
Power is extremely expensive in India. The main reason is power companies are forced to give almost free power to farmers. This subsidy is borne by remaining customers.
In India, farmers keep running pumps for many hours a day and waste ground water because power is free, ground water is free.
All subsidies cause mis-allocation of resources. The earlier the subsidies are eliminated, the better off the Inidan economy will be.
We now have an European Central Bank (ECB). ECB is creating trillions of Euros and using it to prop up European banks, which are bankrupt. Effectively, the wealth of people is being transferred to banks. Banks are looting the world.
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 