Praxeology: My Reflexions on India

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...

Gujarat's notoriously popular chief minister Narendra Modi has decided to ban the consumption of Gutka products in Gujarat beginning from 11th September, 2012. Modi said, I have to save the youths of Gujarat, from the dreaded evil of cancer and that’s why a decision to impose a complete ban on gutka has been taken (is he not worrying about saving the lives of old people who also consume Gutka? Are old people expendable?). Modi's zealous and blind worshiping supporters are going gaga over this policy. His supporters are blind and they have a vested interest in promoting Modi cult in Gujarat so they will never bother about the consequences of this policy. In fact, they are more than happy in promoting this policy because it is going to finally help them win the votes and political power. Modi's supporters are either knaves or ignorant of the consequences of this policy, but Gujarat's society can not afford to remain so ignorant. Every sane person must analyze this po...

There is a drought this monsoon season in India. It is now being officially acknowledged by the agriculture minister. In a recent meeting with the press Sharad Pawar - the agriculture minister - said ,"be ready to face drought". This same minister, until this week was saying , "there is no drought like situation in the country yet". Not only this, government's imbecile meteorology department is issuing one after another wrong forecast of monsoon season since mid April e.g., on 17th April Met department said , India's monsoon is likely to have average rainfall in 2012 despite fears the El Nino weather pattern may emerge in the second half of the season, the country's top weather official said, pointing to a third straight year without drought. On 15th May the Met department again said , India's 2012 monsoon rains are likely to hit the Kerala coast on time on June 1, the weather department said on Tuesday, brightening farm output prospects as ...

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...