Analysis of Indian news dated 13-Jul-2012
July 13, 2012
There is a global slowdown in spending. IT budget are being cut. So most IT companies will see profits decline. Exit IT stocks now.
Indian government gives farm loans at a subsidy. RBI governor says that these loans are being diverted to non-farm activities. So tax-payer borne subsidy is benefiting politicians, bureaucrats and businessmen. I say, remove most subsidies to reduce corruption.
India has stagflation. Inflation is running above 20% and growth in anemic.
The industry is demanding lowering of interest rates to accelerate growth. I say, that will also accelerate inflation. A better solution is to reduce taxes for higher growth and reduce subsidies for lower deficit leading to lower inflation.
Probably the world’s biggest protest was held in Mexico to protest against Election fraud.
As per the declared election results, the winner Peña Nieto received 38% of the vote and his rival, leftist politician Andres Manuel Lopez Obredor, garnered 31% of the vote. Fernando Dworak, a Mexico City based political analyst, says “On election day, there was vote-buying, [and] all parties participated.”
Like in India, in Mexico too, the person with more money can buy more votes.
A big protest was held in Spain because Spain wants austerity for miners so that banks can be paid. Ideally, Spain should default on its debt. There would still be some austerity for people, but it would be much lesser without the debt. Effectively, banks are colluding with government to steal from people. The Spanish people should intensify their protests, otherwise they will live as debt-slaves for generations.
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 