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Showing posts from February, 2011

India inflation explained

In this crisis ridden world, economies around the world are experiencing high bouts of inflation (see here ), and India is no exception in that. Indian economy is facing the effects of severe inflation in the form of rising food and energy prices (see here , here , and here ). Indian government is either clueless about the cause of this inflation or is pretending to be clueless to fox the people from seeing the true cause of this rise in prices. Moreover it is trying to shift everyone's attention from the true cause of inflation by creating scapegoats like consumers (high demand), hoarders, speculators, food drought etc. This is an age old trick which all governments use to fool its populace when it embarks on the inflationary path in full speed. In this blog I will expose Indian government's lies and will explain the true cause of inflation. Why inflation? Inflation is increase in the supply of money due to government's money printing process through its central bank (RBI