Down and out is not referring the rigged up Indian Markets even though Mangoman love to see crash in the Indian markets.
The vegetable prices gone through roof. The budget of ordinary family is affected http://www.business-standard.com/article/markets/vegetables-fruit-burn-a-hole-in-the-pocket-as-prices-go-through-the-roof-113070600586_1.html . Still government is supporting Real Estate brokers community by not increasing the rates. Sadly they are looking ways to cut rates further. RBI is also singing the tune of government which is very bad for the country.
I remember RBI Guv. Subbarao said he will have to raise rates if Rupee falls further. That was when Rupee was trading at 55-56. After that Rupee has depreciated more than 10%. I am wondering what constitutes a fall in Subbarao's dictionary? He is one of the biggest disappointment. He should raise to the occasion.
Either way when Monday market opens RBI has a fight in the hand. I love to see Rupee touching new lows that day. RBI dollars reserves are going down fast as per the latest reports.As I have been maintaining RBI can save face if they do what they have to do on their own instead of being forced by the basic laws of economics.
Monday morning without no doubt chamcha singh ( Montek) will talk about bottoming out. What a cruel guy he is?Most of the vegetables are costing more than 100 Rs per Kg. But when I looked at the inflation barometer our RBI and government follows it says less than 4%. What a cheating?
But with all this, mangoman has to support the Food Security Bill. Yes. For country of this size, subsidies are important and I donot believe in the paid economists ( swaminathan aiyar and other BJP supporting analysts) view about FSB. We have larger issues to address than the subsidy which helps vast majority of the people. Share market is not the only place where people invest. Less than 1 or 2 percent invested in Share markets. If India pricks the Real Estate bubble it will help many crores of people to come out of the clutches of Inflation. But BJP is careful about not talking about that. Why there was no agitation planned by BJP about Real Estate Lobby? why no agitation about inflation? So opposing FSB is not something Mangoman will support.But Mangoman also wants congress to lose badly in the coming election.
Kalpesh :-
ReplyDeleteDear Mangoman.
Your concern about Food Security Bill is Genuine. But congress intention behind FBS is not to feed the poor but to win the election. FBS if they wanted to implement they shall have done it in 2009 when they came to power for the second time. FBS for congress is mere election gimmick.
As per the contemporary scenario India does not have the infrastructure to implement such massive program. If FBS is passed, one more bureaucracy of around 600 bureaucrats will come into existence and one more department for corruption. India is already having PDS whose performance are all aware of(Lots of wastage & Corruption). If PDS is improved, there is no need for FBS.
In terms of Inflation if FBS will come, Taxpayer will have to pay extra for his daily grocery, because he feeding the poor by paying taxes. For instance if FBS is passed what ever agriculture crop is grown, the government will have to take lion share of it, as it has to feed large portion of the population. This will live very little quantity of the crop in the market for the traders, because of the small quantity and more number of traders there will be competition to purchase this small quantity, which will eventually increase the price and inflation. Hence taxpayer will be have to pay extra price for feeding the poor.