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...

Prof. Kaushik Basu - who apart from being a professor of economics at the Cornell University, USA, is currently the chief economic adviser of the Ministry of Finance, Government of India - recently published a paper titled " Understanding Inflation and Controlling It " in the journal Economic and Political Weekly (EPW) , which is a well known journal in India published from Mumbai. Since inflation is the grave problem being faced by any economy and because Prof. Basu is the chief economic adviser of the Indian government, I decided to read the article to know his economic views, especially re inflation. It is important to know what the chief economist of Indian government has to say about Inflation. Knowing his views is important because billions of common man's lives depend on this one person's economic views. If his economic views are erroneous then our lives are in a big danger. If his understanding of inflation is faulty then we all are doomed. And as it tur...

Inflation is killing the common man and the Indian government and RBI is hell bent on debasing the currency. This debasement is a type of inflation which government is taking resort to to finance its boondoggles. The evidences of this inflation which I am presenting here are of Indian currency coins. The pictures clearly reveal the deteriorating quality of these coins because of government debasement. Since years they are doing this, but recently the speed of debasement has increased rapidly. So without any further delay I present the evidences. The first picture presents 1 rupee coins. First 1 rupee coin (all coins described from the left hand side) is from year 1998. This coin had at least some fine print work. When you compare it with others, you can at least say that it is bit heavy and had better print work on it. Next coin is of year 2000. Next to that is year 2008 coin. Just in 10 years time the 1 rupee coin has lost all its quality of weight and fine print. This coin is very ...

Recent economic troubles of Kingfisher Airlines has brought in focus many important issues re how the centrally planned Indian economy is faltering, how these so-called business tycoons like Vijay Mallaya are a disgrace, and how government is always helping their cronies in the business world and elsewhere. As I have noted many times in the past, the whole story of emerging Indian economy is bunkum. Sure some people are doing extra ordinary hard work and producing the economic goods which every other lazy bums like politicians, bureaucrats, government workers, and other such parasite class of society are enjoying shamelessly. But, notwithstanding that, whatever phony growth figures Indian officials are reporting are just figures on the paper; mostly a result of Keynesian money printing programs of Indian central bank RBI. Indian economy is a classic example of an artificially (paper) inflated boom, which is now busting e.g., growth figures are now revised downward , industrial product...

Inflation in India is edging up steadily and stubbornly. It is not abating a bit, and people are getting frustrated. Such relentless rise in the prices of goods and services is now testing the patience and nerves of the Indian populace. Amidst all these hardships, the politicians - who are in charge of policy making - are evading any serious discussion of inflation and its causes. Not only they are not serious, but their mind numbing and irresponsible statements regarding the causes of inflation are now becoming very frustrating, especially for someone who knows economics. I can understand the ignorant statements of finance minister Pranab Mukherjee and Mr. Advani , but it is hard to fathom what is wrong with prime minister Manmohan Singh who is an academic economist having a PhD degree from Oxford! A former economics teacher of famous Delhi School of Economics seems to have forgotten his economics. After the recent hike in petrol prices by the government owned petrol companies (PSU...

The American economy and society both are crumbling. European Union [sic] is in tatters. Majority of western world countries are on the brink of a disaster or as Doug Casey says, have entered in an eye of the hurricane. Just like the Middle Eastern countries waves of angry protests are filling the streets of Greece, Italy, Spain, UK, USA and many other occidental countries. The recent Wall Street Protest movement in America is symbolized by many as peoples' anger against Capitalism or the 1%, who are painted as wicked capitalist pigs! Many writers and so-called intellectuals are claiming that this episode in Western world is an evidence of the failure of Capitalism e.g., see here and here . Tragically, many OWS protestors are demanding Socialism ! So, is this finacial crisis and now sovereign debt default threats a wrongdoing of Capitalism? Is Capitalism responsible for peoples' misery? What is actually Capitalism? Do these writers  - who attack Capitalism - even understand ...