Analysis of Indian news dated 17-Jul-2012
July 17, 2012
IMF has published debt/GDP ratio of various countries. India’s economy is the worse among BRICS.
What is the solution to this problem?
- Privatize heavily. The government should sell off banks, insurance companies, airlines, power, etc.
- Government should allow FDI in more sectors.
- Government should reduce subsidies (along with reduction in taxes).
India is not moving fast enough in the right direction. Instead of running on a straight road towards destination, India is like a drunkard walking two steps in one direction and then one step in another direction, going zigzag; sometimes towards destination, sometimes side-ways.
The government blames it on the allies, but people, who fail, always have some excuse. People, who succeed, do so in spite of obstacles.
Prices are rising throughout the world
Prices are rising in India.
The main reason is currency printing by governments all over the world. In India, the M3 money supply on 29-Jun-12 was Rs 77256 billion; a rise of 4.98% since 31-Mar-12. At this rate, during this financial year we will see an inflation of 20%. So RBI should raise interest rates. Yet MSM wants lower interest rates.
The world needs higher interest rates to restrict currency printing. Without higher interest rates, inflation will remain high.
Under Nitish Kumar’s Mahadalit Vikas Yojna in Bihar, existing land is shown as distributed to existing owners. Politicians and bureaucrats pocket the cost of procuring the land.
All subsidies are essentially a means to loot the tax-payer. So politicians create more and more subsidies.
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.
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