Thursday, April 26, 2012

Are we fools?

It seems we are living in denial mode.

Wise men (no, no, not me!) are telling that some thing is wrong with our economy. We are saying many things are wrong with our economy. Yesterday S&P downgraded India outlook and it will not take much time to downgrade our credit rating.

We are counting on handful of reforms like opening up retail, DTC, diesel price deregulation etc to deliver. But problem lies elsewhere and nobody is ready to talk about that. Problem is inflation. Mindless money is being injected into the system to benefit a handful and this is hurting people. Reserve Bank though understand this but cannot do anything. We are obsessed with 9% growth rate.

If RBI can be armtwisted into reducing interest rates then god save the country. Just heard that the food inflation touches 9% and food prices heading higher. Next month we will see double digit food inflation and Mr.Subbarao will be forced to eat humble pie.

All the so called industry leaders, economists are talking as if nothing has happened. These guys in my opinion have sensex and nifty as their barometer to measure the performance of Indian economy. On the other hand our financial markets are fully dependent on FII money. These FII's even went to the extent saying that ' If you tax me, I will make you to pay, by failing your market systems', Interesting ha...

You can ask...Yes, china is cutting rates, Brazil does that...WE CANNOT because our Rupee value is going down, our import bill is increasing, crude is increasing...


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