Praxeology: My Reflexions on India

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 cr...

Indian parliament passed the so-called anti-corruption Lokpal Bill, but that bill failed to pass in the assembly. People saw the crazy politicians' fighting and tearing the Lokpal Bill in the assembly. Anna Hazare is now in hospital and doctors have advised him not to go on fasting anymore. Despite this political drama, Indian population still believes that passing of such so-called anti-corruption bills will end the corruption. Nothing could be farther from the truth. As I have repeatedly said time and again, the root of corruption lies in the system of government interventionism in the market economy, and it cannot be rooted out without removing those interventions. Without dismantling the bureaucracies and ministries, it is impossible to remove political corruption. Recently I am reading Ludwig von Mises's wonderful little book, A Critique of Interventionism . While discussing the harmful effects of government intervention in the economy via direct restriction on product...