Praxeology: My Reflexions on India

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,

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.

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.