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.

Sexual attacks and rapes on girls are pretty common in India. Recently many such cases were reported in North India, especially in Haryana and Punjab e.g., see here , here , and here . In all these cases, the state officials i.e., the police officers, did nothing to stop the incidents or even react to the complaints made by the victims when they were harassed before the rape or sexual attack incident actually took place. In many cases, police officers even refused to file the FIR (first information report) to lower the on-paper number of rapes! In Punjab, one of the policeman's daughter was sexually attacked, and that policeman was killed by attacker political activist when he went to complain about his daughter's harassment (see this , and this ). Moreover, instead of the criminals getting punished, the victim's family is living in fear of retaliation from the rapist family gang members (see here )!    Since ages these violent aggressive attacks are taking place on gir...

The New York Times recently reported , that there are few places to hide as taxes trend higher worldwide . As the parasitic welfare warfare states around the world are going broke, due to years of borrow and spend Keynesian policies, they are getting desperate to find any means of survival. And what better means than to fleece and slaughter their slave sheeple citizenry. The trend is clear world over e.g., after winning the French election, the socialist president Hollande has raised the personal income tax over income of 1 million euro to 75%, and eliminated the limits on wealth tax; US taxes are about to go up as the reelected Obama government is planning to deal with the looming so-called fiscal cliff with tax hikes ; tax rates across Europe are also going high ; and, the Indian government is also looking to plug the tax loopholes while simultaneously trying to change the tax laws retrospectively. Those of you who understand the true nature of the state - as the gang of criminals...

Since last year or so the Reserve Bank of India, in the militaristic language of the US government, has declared a war on Gold. For example, take a look at the list of announcements by various RBI officials re their strategy of halting the vast imports of Gold in India. On 19th November, RBI banned the Indian commercial banks for loaning money to people for buying Gold. The RBI notification said, "...it is advised that no advances should be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold mutual funds."  And this, according to RBI officials, is to dissuade people from indulging in speculative activity . On November 25th RBI deputy governor Subir Gokran said ,"there is a need to "dematerialize" gold like any other financial product to reduce its physical imports." He further gave the reason for his whim of dematerializing Gold,...

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...