Praxeology: My Reflexions on India

Anyone who understands the true criminal gang nature of the state (aka government) knows that it is a mother of all forces. The fundamental basis of every government, whether that be fascist, socialist or a liberal democratic, is force . Without coercion no state can ever survive. Taxation is the quintessential of this force. Without coercive taxation no government can come into existence. I have made this point time and again in front of people, but still many refuse to believe this eternal truth. Many people bring out age old boring and long refuted argument of government - especially a democratically elected one - as a voluntary institution just like any club. They say that people voluntarily go and elect their representatives in elections! Nothing can be farther from the truth. I have explained in my past write-ups that these democratic elections actually present no true choice in front of people. They are an illusion of choice e.g., hapless voting public can never elect a no gove...

Since December 2013 the US central bank Federal Reserve has decided to scale back its dollar printing program called QE (Quantitative Easing). The Indian economy is very fragile looking at these new developments. Raghuram Rajan, the Indian central bank RBI's governor, has criticized the uncoordinated policy of the selfish US Fed saying the withdrawal of stimulus by the Fed is rocking the emerging market economies. Despite this, he is assuring the Indian public that the Indian economy is quite resilient and immune from any shock coming from the US central bank. In my following economic report I call Raghuram Rajan's bluff and analyze the impact of US Fed's tapering policy on the Indian economy.   Loop Start playing when buffered ( Only Notify ) - % Smart Buffer Estimated Time: Will start buffering when initialized. Donate to SmartVideo! Global Preferences Loop Start playing when buffered ( Only Notify ) ...

RBI governor Dr. Raghuram Rajan a day before yesterday described Inflation as a destructive disease . This is his exact statement as reported by the newspapers: “Inflation is a destructive disease. Industrialists complain about high interest rate and when inflation is high at 8 per cent, citizens want to have their savings earning 10 per cent interest to marginally beat inflation. Industrialists want an interest rate of about 5 per cent. Both cannot be satisfied. The mismatch is because of inflation.’’ Delivering the 8th R. N. Kao Memorial Lecture, organised by the Research and Analysis Wing (RAW), here, he said that a long time could be spent in debating the sources of inflation but ultimately inflation came from demand exceeding supply. “It can be curtailed only by bringing both in balance. We need to reduce demand somewhat without having serious adverse effects on investment and supply’’ ( here ). Let’s analyze his statements.   First, as usual, his mainstream definition...

This is what the Hindu news item reported today: “An expert committee appointed to examine the current monetary policy framework of the Reserve Bank of India (RBI) has suggested that the apex bank should adopt the new CPI (consumer price index) as the measure of the nominal anchor for policy communication. The committee felt that inflation should be the nominal anchor for the monetary policy framework. The nominal anchor or the target for inflation should be set at 4 per cent with a band of +/- 2 per cent around it. ( here ). What is the meaning of all these? If we remove all the technical jargon and linguistic trickery of the central bankers and mainstream economists, then, this simply means that the Urjit Patel committee is proposing to steal 4% of our annual wealth! It is as simple as that. Anyone with a sound understanding of monetary economics can easily uncover this hidden agenda of RBI. Inflation is nothing but theft of savers’ hard earned wealth. By...

The Indian government passed the popular anti-corruption Lokpal bill recently, and the anti-corruption crusader Arvind Kejriwal and his Aam Aadmi Party is now in power in New Delhi. Many people are thinking that these two developments in the Indian polity will now help remove corruption. But, is it so? Can Kejriwal and his Aam Aadmi Party fulfill its election promises? Can they fulfill everyone's demands? I answer these questions in my latest economic report below. Loop Start playing when buffered ( Only Notify ) - % Smart Buffer Estimated Time: Will start buffering when initialized. Donate to SmartVideo! Global Preferences Loop Start playing when buffered ( Only Notify ) - % Smart Buffer Estimated Time: Donate to SmartVideo! Global Preferences Loop Start playing when buffered ( Only Notify ) - % Smart Buffer Estimated Time: Donate to SmartVideo! Global Preferences ...