The news report that the Reserve Bank of India is going to buy $10 billion (Rs45,500crore) worth of International Monetary Fund (IMF) “notes” shows that our Total Chacha State is up to financial mischief as usual. The IMF has been selling gold – the RBI recently bought 200 tonnes, and I applauded – but it makes little sense to “buy notes” from an institution whose gold reserves are declining fast. The strategy of the IMF seems to be to garner as much of as many national fiat currencies as it possibly can, and use these to further its own interests. What are these interests?
Without gold reserves, and with a holding of a variety of national papers, all that the IMF can accomplish is lending out these papers to its client states – thereby furthering global inflation. This, while the IMF itself profits. India should not buy these notes. The matter should be discussed in Parliament and the decision revoked. Let us not forget that chhota ustad montek is an IMF man, and such moles in the government can be dangerous.
On the IMF, the president of the Czech Republic, Vaclav Klaus, was most forthright. I was a guest at a luncheon held in his honour in New Delhi a few years ago. He spoke right through the lunch – and his political message was most inspiring. Klaus is a trained economist and a member of the Mont Pèlerin Society.
Vaclav Klaus said that when he took over as president of the Czech Republic, he received numerous requests from World Bank and IMF people seeking appointments in order to “advise” his government. He told us that his stern reply to all these requests was: “I have studied as much Economics as you have, and do not require your advice.” The IMF was kept out of the Czech Republic – and we need to do the same in India.
Of course, if the IMF sells gold, the RBI should buy – as its gold reserves are pathetically low. But it makes no sense to buy IMF “notes” – mere worthless papers issued by an insolvent institution.
On the chief economist of the IMF, Olivier Blanchard, and his economic illiteracy, here is an excellent article from the Mises Institute. Blanchard is a naked inflationist, a Keynesian, and a “macro” moron. Such men are to be laughed out of serious deliberations on economic policy. We must do to the IMF in India what Vaclav Klaus did to them in the Czech Republic:
Keep them out!
We have not one but two Keynesians, IMF statists in the top seats of our govt - Chacha Fake Singh and his Man Friday, Montek. Sirji, keep dreaming about non-IMF solutions!
ReplyDeleteI agree, IMF is an incompetent and evil leftist organization, which believes in letting the control of world currency markets remain in the hand of petty bureaucrats and demagogues. It is not a friend of the third world countries; it is their worst enemy.
ReplyDeleteThe strange thing about the world today is that the leftist movement is being led by the elite. Once upon a time, it was the poorest of the poor in the world who were at the forefront of the leftist movements, like in time of Stalin and Lenin, when the Bolshevik revolution was led by peasants and serfs.
These days the top class elite, the billionaire tycoons, the Harvard and Oxford educated elite, the top Hollywood stars, the media celebrities, the fashion magnates, the inheritors of incredible fortunes, the leaders of Wall Street, IMF and World Bank, the so called Noble laureates, Booker Prize winners, Oscar celebrities, that are at the forefront of the neo-leftist revolution.
This mad elite is pushing the world economy towards the left. I can understand when the poor people become Nexalites; after all, these dirt-poor rural imbeciles have no inkling of economics or politics, so they are easy fodder for the leftist ideologues. But why is the highly educated elite becoming leftist?
Why is IMF promoting leftist economics? Why are the Hollywood stars always speaking in leftist language?
It is clear that the today’s elite have decided that they need to commit collective suicide. They have so much contempt for themselves that they can’t bear to live and keep enjoying their ill gotten wealth. So they want to destroy themselves. That is why they are turning towards the left.
I am completely against all Western organizations. The western civilization has now peaked, from here they can only go one way – that is downwards into the nadir of leftist depravity. So India needs to keep away from the Western institutions otherwise we will also be pulled downwards in the gutter of lawlessness, poverty and moral turpitude, when today’s elite sink into the bottom.
It is imperative that Indians should avoid taking any advice or help from these Western organizations – Noble Prize, Booker Prize, IMF, New York Times, World Bank, Wall Street, Bank of England, White House, 10 Downing Street, Hollywood, Greenpeace, etc.
If we can avoid these silly leftist organizations for at least next ten years, then we will be able to avoid much of the misery and poverty that the emergence of elite neo-leftists is going to inflict on the West. Hey, we might even end up being the last man standing. When all the dominos will fall, and the evil empire of today’s elitists crumbles into the dust, only India will remain standing. We will be the only free country in the world.
Anoop,
ReplyDeleteleft-statists are still being led be "serfs", thouhg with PhDs. Two best examples are M Singh - you will find it hard to get a better or more ideal serf this Dr Fake Singh - and Montek. These serfs have served all kinds of masters and mistresses - socialist, statist, leftist, quasi-left, garibi hatao, aam adami - quite effortlessly.
However, buying IMF notes means more say in the politics of African dictatorships that need loans from IMF; which translates to cheap resources.
ReplyDeleteIf India doesn't do it, China will.