We are strange breeds.
When world over governments are fighting to control inflation, we are actually trying to increase inflation by cutting interest rates. We general public are are foolishly believing that we are getting richer day by day. Since most of us who criticize government already fallen into government trap by buying RE based assets at huge price we have no other option :(
One analyst expect dollar index to touch 86-88 soon. Now it is near 79-80. It is cool 10%. Now apply this logic upside down and calculate where INR would go against dollar. It is simple math dear. 60 Rs for 1 Dollar. I believe this theory and badly pray that this should happen. THIS WILL HAPPEN.
Now it is nearing 54. RBI cannot support as it already used it ammunition ( control on trading position) and the other ammunition (dollar selling) is risky as the country is running out of forex. Now what to do?
I have the solution. It is very simple. Eventhough your mind agrees, your heart won't.
1. Burst the RE bubble.
2. Declare sick companies as sick instead of restructure their loans
3. Increase tax on cars multifold
4. Go after tax evaders not only FII and also inland traders and industrialists. It is a shame that only around 4 lakh people are declaring that they earn more than 20 Lakh in a year in India. What a shame?
An bit off topic, but I welcome the supreme court decision on banning tinted windows in cars. Subsidized diesel along with tinted windows are evils that encourage people to drive more and drive rashly because of the anonymity offered by these dark windows.
ReplyDeleteWe can't afford to import oil at these rates & keep subsidizing cars & SUVs!
Hi, I also expect rupee to go down at 60...
ReplyDeleteWhere should be put money then.. in Bonds or Income funds..Plz suggest..