Praxeology: My Reflexions on India

Recently prime minister mr. manmohan singh said that, 'India cannot expect "outside help"  on a scale on which can see the country through its difficulties'. I am not sure what kind of "outside help" prime minister was expecting but after looking at the immediate steps which his government is gong to take to supposedly revive the sagging Indian economy, it becomes clear that those steps are going to result in more disaster and more troubles for all of us. Instead of making things better, these steps will further worsen the problems and put the economy under more heavy stress. Let us take a look at what these steps are and how they are going to do further damage to already slowing Indian economy. While returning from Rio+20 (phony) climate summit, manmohan singh said, "we must plan our economy in such a manner that we cannot expect outside help on a scale which can see us through our difficulties ". Carefully read the emphasized word: plan our ec...

Recently Indian finance minister Pranab Mukherjee, during Zee television award function, said that there is a "need to dissuade people from investing in gold " (see here ). Finance minister is obviously lying to his teeth. He is clearly trying to misguide the innocent public for his own political benefits. Inept finance minister is ignorant of basic monetary theory, just like other gold disparaging mainstream economists like the chairman of US federal reserve, Ben Bernanke. In his interview he revealed his total cluelessness regarding the true nature of money and many other things related with economics. Below I present his statements with my critique in italics.  He said, "there is a need to spread financial literacy to encourage people to invest in market instruments" People are already literate about their finances in this part of the world Mr. FM and that is the reason why they are buying Gold and Silver to protect their wealth against raging inflation which...

The rupee is in a free fall against US dollar since last September. It has tanked from its high of 44 INR:1 USD to 55INR:1USD in the month of May; that's 25% decline in 9 months time. Indian rupee is the worst performing currency in the Asian region. US Dollar v/s Indian Rupee Everybody is concerned about it and, as usually, everyone is (wrongly) looking at the government and its central bank RBI for the rescue work. Business world wants RBI to take very proactive steps to stem the fall of rupee against dollar. Finance minister pranab mukherjee said , "It is a matter of great concern. We are watching the situation. The Centre is not (sitting) idle. We are trying to resolve (the issue)." And after that he, again as usually, blamed external forces for the weakness of rupee; he said, "This is due to the Eurozone crisis."  Of course, finance minister is lying or is ignorant of economic laws. The exchange rate of rupee versus any other currency is determin...

Indian central bank RBI is fueling the real estate bubble since many years by keeping the rate of interest artificially below the natural rate of interest, which is determined by the societal time preference. When RBI keeps the rate of interest artificially lower, it induces or encourages entrepreneurs to borrow huge amount of money from banks to start lengthy projects which uses more roundabout methods of production. They are fooled by RBI in thinking that the supply of real savings is increasing which is lowering the rate of interest. In reality it is just RBI's money printing and creating money out of thin air process that is keeping the rate of interest lower. This results into mal-investment in those lengthy projects which are unsustainable in the long-run because the real saving is not forthcoming. RBI money printing finally results into inflation which forces the authorities to increase the rate of interest and this is the beginning of the bust of the prior artificial unsust...

Recently the supreme court of the political boundaries called India upheld the constitutionally "legal" nature and "rightness" of State rulers' so-called Right to Education Bill (see here ). Under this legislation, State officials have made it compulsory for the on-paper private schools to keep 25% quota reserved for students of lower strata of society. Private schools challenged this ruling in the supreme court thinking that they will get the justice! Well, what more can you expect from the judges who are selected by the State officials themselves? They are all part and parcel of the same thug system of State. The independence of the judiciary system is an illusion. It is a joke on the intellect of the populace. The major issue of concern here is, whether someone has a right to education? and more fundamentally,what is a human right? Without understanding the concept of human right, and its negation, human wrong, it is impossible to discuss such issues let alo...