Nailing Pranab's Lies

Our finance minister, Pranab Baboo, told parliament a bald lie yesterday when he said that our current inflation has been caused by shortage of food items, i.e., by a poor harvest. The drought, the flood – these have caused inflation, Pranab Baboo asserted.

Nonsense!

Inflation is caused by excess money and credit. Inflation is always a monetary phenomenon. Indeed, the word “inflation” was always used to refer to growth in the money supply. It is only nowadays that we use the word to refer to a general rise in prices, which is caused by inflation of the money supply.

So, the only cure to this inflation is limiting the expenditures of our The Chacha State. With the NREGA, higher pay for baboons, the “stimulus” etc. the State has vastly increased the money supply. This is why all prices are rising, including of gold.

Let us now turn to banking – and here too, the news is not good. Pranab Baboo told parliament the other day that his State-owned banks wrote off debts of over 25,000 crore rupees in the last couple of years.

Something fishy in the money.

Something fishy with the banking too. Read the report here.

My ideal is a world of private money and free banking under law. Politicians in such a world will be unable to create money or credit – and would have to budget State expenditures with great care. This “limited government” would be limited by law – and also by the budget.

Ultimately, what is happening today can only be called LOOT. This is what happens when we romanticize The State and its personnel. Time to realize that they are all crooks. Time to take money and banking out of their hands.