Analysis of Indian news dated 20-Jul-2012
July 20, 2012
Indian is seeing high inflation in food prices. This is in-spite of government increasing food subsidies.
The main reason is monetary supply is growing fast i.e. 20% y-o-y. Hence, even after increasing subsidies, the food prices continue to rise. To control prices, we need to stop the increase in money supply. Then inflation in almost all goods will stop.
Indian stock market is one of the worst stock markets to invest throughout the world.
The main reasons are too many taxes, anti-business rules like retrospective taxation and growing bureaucracy. To attract investment, India needs fewer taxes, decrease in tax rates, lesser bureaucracy to interfere with businesses and abolition of anti-business retrospective taxes.
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 