Sunday, June 23, 2013

A dark comedy called WPI ( The inflation barometer of India)

They say RBI is measuring Inflation based on WPI and WPI is now less than 5% ( 4%??). But mangomen of the country when they go to market to buy vegetables they find potato at 50 and tomato at 60 and onion at around 100 Rs. Interestinly the mangomen of this banana republic stopped complaining. Another country which is comparable with this banana republic which went inthe same path is in shambles now ( Read Brazil).

I really doubt the logic of RBI following WPI. If they still say we follow WPI then better the can say that we won't see inflation at all for rate decisions. They can just go on and print money and give it to bankers and corporates.

The rise of Yes Bank is due to RBI money printing in my opinion. They opened newly in metros and in short time they are now one of the leading banks in private banking space. Simply they get free money from the Indian banking system because of money printing ways of RBI and multiplied the money and now fighting within themselves for the same money :)

Great India.

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