Wednesday, January 25, 2012

Next Round of Inflation Begins

The phony Indian economy is out of whack since the day when RBI started increasing its interest rate e.g., Dec 2011 IIP (Index of Industrial Production) indicates that the growth rate in the capital goods industry declined to 1.8% from 5.9%. The fiat paper currency inflated figures of economic growth rate are decelerating, which has prompted the usual policy response from the government and its central bank officials. The usual response about which I am talking about is: Inflationism. Government and their central bank cronies know only to print money to cure any crisis, which, most importantly, they themselves have created in the first place! Yesterday RBI announced a reversal of their so-called anti-inflation policy stance and reduced the CRR (Cash Reserve Ratio). RBI governor said that, there focus has now shifted to economic growth from inflation. The fact of the matter is, that the focus of government and its monetary authority is always on inflation. Not for a second they stop creating money out of thin air.

Under this new round of inflation they are going to print and pump crores of rupees in the already highly inflationary Indian economy e.g., the recent CRR cut will release 32000 crore rupees. These rogue sociopath politicians and technocrats are risking hyperinflation. This means citizens will have to prepare for economy wide very high prices. The rupee will further loose its value. Ultimately it will reach its intrinsic value of zero. So, everyone, prepare accordingly. Continue to accumulate Gold and Silver because when this phony monetary system will collapse, only those two monetary metals will be the sole survivors.

UPDATE: I will continue to track every major paper currency printing operations of the government here so that to keep you up-to-date.

1) Here is another massive currency printing program news coming today morning hot from the presses: Govt to borrow 3.7 trln rupees in April-Sept. This means, once this currency enters the market, expect the prices to shoot up.

2) Just a moment ago RBI has cut its lending rate by 0.50 per cent. This is inflation, pure and simple. This will have its disastrous impact on economy in future in the form of higher prices and many bubbles in auto, real estate etc., sectors. People must prepare accordingly. Trouble times are ahead.

3) RBI is conducting OMO (Open Market Operation) purchase of bonds which will infuse 12,000 crore rupees in the economy. This is nothing but inflation.   

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