Praxeology: My Reflexions on India

Last night I was reading J B. Say's 'A Treatise on Political Economy' Book II, Ch. XI, OF THE MODE IN WHICH THE QUANTITY OF THE PRODUCT AFFECTS POPULATION , where Say discusses the major principles of population growth. What he has to say is very relevant for both India and China because both country governments have implemented 'population control' measures since last 50 years or so. Chinese government has implemented one child policy and Indian government has its family planning program . Here is what Say has to say about the determinants of population, and I quote the passages: "...and it may be laid down as a general maxim, that the population of a state is always proportionate to the sum of its production in every kind." In one line - which he logically builds up in this chapter - he exposes the whole Malthusian population theory that population growth will outstrip food production! He goes on and discusses other implications of that maxim, and...

J B. Say I have written many times in past about what money actually is, what are the qualities of sound money, and what is wrong with today's fiat paper currency monetary system, which is in the root of our problems of inflation, business cycles, government's reckless spending and ballooning fiscal deficits, central bankers' enabled state wars, botched welfare system of giving freebees to everyone etc., etc. It is crucial for the state officials to keep a tight control over the supply of money because only through that control they can control peoples' lives, and slowly confiscate their wealth. Fiat money is the main tool of our oppression in the hands of the state officials. The state uses court intellectuals - school teachers, university professors, professional economists, media journalists etc. - to spread propaganda re money to hide their sinister motives of robbing us. In such foggy environment, it is important to pierce through this fog of propaganda and kee...

Today's mainstream neoclassical economics is in a deep trouble because of its inability to explain the reality of our economy and society at large. Most mainstream economists have no idea about how an economy actually functions e.g., take Nobel prize winner [sic] Paul Krugman who keeps on saying that destruction of wealth is somehow going to generate more wealth (see here his space alien threat strategy of fixing the ailing US economy)! He thinks that inflation will bring the economy out of recession! Most of them failed to anticipate even the 2007 world financial crisis e.g., at the height of US housing bubble in 2006, US Federal Reserve bank chairman Ben Bernanke was saying, that the housing prices will keep on rising when the bust was just around the corner (see here ). T he main reason for this failure to unde rstand the economic reality is their faulty meth odology of d oing economic scie nce. Th e heavy use of mathematics has ruined mainstream economics to such an extent th...

Recently the RBI governor announced the second quarter review of the monetary policy in which his monetary policy stance was, "to maintain an interest rate environment to contain inflation and anchor inflation expectations".  As Subbarao - the RBI governor - indicated, he is right now trying to find some kind of balance between inflation and growth dynamics [sic]. But his major worry is inflation. Indian economy is facing the problem of inflation, as defined by mainstream economists as "the rise in the general price level", since very long time. Government officials, mainstream economists and media pundits frequently bamboozle the populace with a propaganda, that the major cause of inflation is supply bottlenecks (see this , and this )! This is a hoax. Supply bottleneck has nothing to do with inflation. What these propagandists are talking about is actually price changes, which they erroneously call inflation, and inflation is all about the increase in the supply o...