Praxeology: My Reflexions on India

Many people are thinking, that if Anna Hazare and Ramdev Baba can bring back the black money of corruption from the Swiss banks to India, then, India will become super rich, everyone will get crores of rupees, and no need to pay medical bills, electricity bills, etc., blah blah. I expose such silly talks and wishful thinking in my short investigation. Such influx of black money will mainly result in, most possibly, hyperinflation.

Dr. Raghuram Rajan - the finance professor from the Chicago University Booth School of Business - just took over the charge of the chief economic adviser of the UPA government's finance ministry. As expected from him, upon taking over the charges, he has straight away started to misguide the public. When Kaushik Basu - the former chief economic adviser - left his post, I said, that the new adviser will just like be the old one.  Dr. Rajan, in his opening interview with the press said this , "One of the concerns of the last few years has been food inflation, which has been not so much within the control of the government, but which has been sort of because our population has become richer ... and, therefore, demanded more sort of higher end food products like, milk, egg, meat rather than the old cereals." I don't know where should I begin to comment on this ridiculous and totally flawed statement, which is fraught with economic absurdities and pack of lies. Let

I am reading Richard Cantillon's book, An Essay on Economic Theory , which is an English translation of his original French work, Essai sur la Nature du Commerce en Général. Richard Cantillon (1680-1734) was an Irish banker whose aforementioned only surviving work was hailed by William Stanley Jevons as the cradle of political economy . Murray Rothbard christen him as the father of modern economics rightly displacing Adam Smith from that position. I am mentioning Cantillon's almost 300 year old work because in the first chapter of his systematic treatise, he smashed the major tenets of Keynesian theory viz., printing money is wealth creation and consumption is the main driver of economic progress. Cantillon exposed the then famous mercantalist fallacies of considering  money as 'wealth', and because Keynesiansim is nothing but an old mercantalist wine in the new mathematical bottle, it is not difficult to see how his work also smashes today's Keynesianism too. Le