Analysis of Indian news dated 31-Aug-2012
August 31, 2012
What is the solution to “Coalgate”? Simple:
- Cancel all coal mine licenses issued without open auction in last few years. If this cannot be done for some mines, then levy huge taxes on that mine to recover the loss for country.
- Stop discretionary allotment of natural resources permanently by making it illegal.
Congress, under pressure, only wants to cancel only few licenses; just enough to quieten the opposition. BJP wants PM to resign. Other parties like SP want licenses to be cancelled and investigation by supreme court judge. Note: No political party wants their discretionary power removed. All are thieves. So I don’t vote for anyone. I just enjoy the drama going on in Parliament.
RBI governor warns of a credit downgrade. He is right.
India has to reduce subsidies, reduce taxes, reduce bureaucratic rules and privatize heavily to avoid a credit downgrade. The Indian government is not keen on these reforms.
Indian government wants to fund 60% i.e. about Rs 23,000 crore of building electric / hybrid cars. This is another scam. It will transfer tax payers money to select few. The returns are not guaranteed. Already there is a power shortage in India. These cars will increase power demand.
If the government was honest, it would just eliminate subsidies on fuel. If oil is expensive, the market will come up with a solution to this problem. First government subsidies oil, then it says we are losing foreign exchange because of huge oil consumption and so we need to finance alternatives. First government creates a problem and then offers a solution. Note: both the problem and solution steal from tax-payer for the benefit of select few.
Indian economy has slow growth. The main reason is that government keeps increasing taxes.
The way to simulate economy is not by eliminating CRR or decreasing interest rates; it is by reducing taxes (and subsidies). Eliminating CRR or decreasing interest rates will in fact raise the already high inflation. Here is the official inflation (real inflation is much higher i.e. about 14%).
BJP MLA found guilty of massacre in Gujarat. Congress is screaming that Modi should resign. Congress has forgotten Sikh massacre in Delhi when Indira Gandhi was assassinated. Rajiv Gandhi said about this massacre, “When a giant tree falls, the earth below shakes.” He shrugged the Sikh massacre as irrelevant. Both Congress and BJP have murderers in their party. So I vote for neither.
Private telecom companies are in profit, while BSNL and MTNL are making losses. The government wants to merge MTNL and BSNL. I say, this will not solve the problem. Instead, just privatize them. We don’t want government telecom companies. The private companies offer much better service.
Baltic Dry index is at its all time low. This indicates that the world economy is not improving. We will have a depression or hyper-inflation. If governments of the world raise interest rates, then economies will collapse, debt will be written off and we can restart. If governments of the world drop interest rates, then inflation will rise, debt will be paid back in worthless fiat currency and new currency will have to be issued.
All paper markets are rigged. Invest in physical assets like land, real estate, gold, silver, etc. Don’t believe the media, which works for government and gets revenue from big businesses.
Kasab is to be hanged, says Supreme court. I also want him hanged, but not because of his crimes. Indian government has spent Rs 100 crore on Kasab already. I don’t want more of my taxes to be spent on Kasab.
The Syrian delegation has walked out on a session of the Non-Aligned movement in Tehran. They were angered at a speech by Egyptian leader Mohammed Morsi, who called President Assad’s regime oppressive. Syria’s foreign minister said the comments amounted to inciting further violence in the country.
This proves that Morsi and Muslim Brotherhood are essentially a front of USA.
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 