Thursday, January 31, 2013

RBI Creates More Inflation...

On 29th January, RBI governor D. Subbarao announced his quarterly review of credit and monetary policy in which he reduced the repo rate and cash reserve ratio (CRR) by 25 basis point. By doing this, he created more inflation in the already highly inflationary Indian economy. This policy now endangers the future of the Indian economy. It is fueling a massive economic bubble in various sectors like real estate and auto, which surely will burst in future. Indian people should prepare themselves for more hardships and pain in future. I analyze this policy below.

UPDATE: It is becoming clear day by day, that RBI officials and the government is going totally nuts. They are so desperate now to control our lives and inflate currency without anyone's noticing, that they are mulling to levy a financial transaction tax upon bank customers (see this). RBI published a paper in which they are outlining this lunatic idea. The newspaper story says this: "RBI paper, on Thursday, suggested that banks should charge cash withdrawal and deposit through cheques, while the government agencies should do away with ‘convenience charges’ for online payment of utility bills". And more, “In order to avoid increased dependence or slippage to cash-based transactions, high (both in amount and frequency) cash withdrawals and deposits of cash by individuals may also be charged,” said a discussion paper floated by the RBI on ‘Disincentivising issuance and usage of cheques."  As you can see their aim of levying these charges on bank transaction is to discourage people from using cash. The story outlines this objective in clear: "The suggestions, on which the RBI has invited comments from the public by February 28, seek to establish a “less-cash” society and encourage greater adoption of electronic mode of payment."

In simple words these all means that they want us to get totally trapped inside their fraud banking system via use of only electronic payments. They are discouraging the usage of cash - they want a "less-cash" or a "cash-less" economy - so that they can easily track our income and expenditures so that to bring us all in their tax net. This also means they can easily inflate the currency because in a cash-less economy, RBI will not even have to print paper notes; they can just increase few computer digits to increase the money supply.

This is all an insidious trick which other western governments like USA, Spain, Italy etc., are also using to control and rob their slave population. Indian government is going broke, and they are desperate now to loot us more to fund their own profligacy of winning election votes. The government and RBI is on a looting spree.

One of the ways in which we can defeat these official mafias is via purchase of physical Gold and Silver. Staying out their fraud banking system is also important. Keep only minimum cash in banks which is enough for your essential daily business transactions. There are no good reasons for keeping big deposits when bank real interest rates are running in negative due to high inflation rate. Continue to buy hard assets and convert the phony fiat paper currency rupee in something tangible to stay away from this trap which RBI and government is laying for all of us now.

Friday, January 25, 2013

Justice J S. Verma Panel's UNJUST Recommendations on Delhi Gang Rape Case

Justice J S. Verma panel submitted its recommendations on amending the Indian criminal penal code for tackling issues like the recent Delhi gang rape case. Their 644 page report is available here. After reading the major recommendations, I was not surprised, that they didn't give any importance to the issue of providing 'justice' to the family of Delhi gang rape victim girl. Below I present my analysis of these recommendations. In short, expecting justice from the most unjust institution in the world, the state, is sure to result in disappointment for the masses of this country.

Tuesday, January 8, 2013

RBI and Indian Government's Paper Gold Scams

In the new year, RBI and Indian government's war on Gold is intensifying. In my past blogs, I noted, that the widening fiscal and current account deficit is putting government's finances in shambles - credit rating agencies are threatening to downgrade government's credit score - and to save their skin, politicians and RBI officials are plotting to put citizens' personal finances in jeopardy. They are coming with all kinds of phony paper gold schemes to lure public away from buying physical Gold. The recent RBI commission's Gold report (here) outlines some of these paper scam schemes. In above video, I analyze these schemes and their sinister fraudulent nature.