Wednesday, November 23, 2011

How the Indian Government and RBI is Debasing the Currency

Inflation is killing the common man and the Indian government and RBI is hell bent on debasing the currency. This debasement is a type of inflation which government is taking resort to to finance its boondoggles. The evidences of this inflation which I am presenting here are of Indian currency coins. The pictures clearly reveal the deteriorating quality of these coins because of government debasement. Since years they are doing this, but recently the speed of debasement has increased rapidly. So without any further delay I present the evidences.

The first picture presents 1 rupee coins. First 1 rupee coin (all coins described from the left hand side) is from year 1998. This coin had at least some fine print work. When you compare it with others, you can at least say that it is bit heavy and had better print work on it. Next coin is of year 2000. Next to that is year 2008 coin. Just in 10 years time the 1 rupee coin has lost all its quality of weight and fine print. This coin is very light because government's cost of buying metal for its mint has gone up due to inflation, so they are using inferior quality metal. And it has no fine prints. Just a thumb (actually government is showing a thumb to all of us that look we are fooling you and you can't do anything!!!). Real shock is the latest 2011 coin, the last one. Compared to other past coins this coin is absolutely small; actually half size (compare the size in picture)! It has lost all the weight too. This is government debasement at full speed people.    
1 Rupee Coins (Various Years)

Alright now let's see 5 rupee coins. The first coin is of year 2003, and the next of 2010. You can clearly see the difference is size and weight. I took the picture from a 60 degree angle to show you all the difference in thickness of these coins. 2003 coin is of course more heavier than 2010 coin. And to fool people government also minted the 2010 coin in Gold color, as if it is a gold coin! Hilarious. Just keep that coin untouched for couple of months and it will start to rust. 

5 Rupee Coins (Various Years)

Now couple of 2 rupee coins. First coin is of year 2000 and the next one (showing two fingers) is of year 2010. 2000 coin is surely heavy then 2010. It also had some fine print, while 2010 coin just shows two fingers to us! Government mints now have no time to show the craftsmanship [sic] on their coins. Just quickly print and put it into circulation!

2 Rupee Coins (Various Years)
 Finally some coins which no one uses these days because they have lost all their value due to years of government inflation. These coins are rarities these days. One coin - 25 paisa - is officially withdrawn from the circulation! First coin is of 3 paisa (yes 3 paisa)!!! That coin belongs to year 1965. Long gone those days when 3 paisa had some value. Today when governments are speaking only the language of billions and trillions, there is no place for poor paisa! Next coin is of 10 paisa. It has also lost all its value and hardly anyone uses them now. Next two coins are of, now dead, 25 paisa. Due to government inflation these coins are now worthless.

To describe this grim situation of government inflation, I will end by saying, as brilliant Murray Rothbard said, what has government done to our money?!

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