Read this about the Opposition (mainly Communist) talking about a "cut motion" on the Finance Bill to reverse price hikes - in "administered prices" - of petrol, diesel and fertilizers.
In reality, inflation is biting hard: we have double-digit inflation, and we do not have double-digit growth. Says a lot, if you know your Economics. But have Communists ever known anything about this subject? After all, they hate The Market. And they idolize The Total Chacha State.
Yes, inflation is everywhere. The prices of everything we buy here in Goa have gone up in the past few months - vegetables, provisions, milk, beer, cigarettes. You name it, and you will find that its price has sky-rocketed.
Why is this happening?
Answer: Because the Total Chacha State is printing money in excess. If more potatoes come to The Market, the price of potatoes goes down. Similarly, if more rupees come to The Market, the value of that money - its purchasing power in exchange - goes down.
As Ludwig von Mises wrote:
"The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy."
It is the Total Chacha State that is following an inflationary policy. This is devastating for the poor.
Thus, it seems that the Government and the Opposition are in league over the inflationary policy - and Parliament indeed is a pigsty.
We need radical reform of government expenditure and borrowings if we want to tackle inflation. We also need "sound money."
A "cut motion" on the Finance Bill is mere tokenism by the Opposition. Citizens must see Chacha Manmohan as an inflationist. The must call for a defeat of the Finance Bill, for a pulling down of Chacha. No more inflationism.
On inflation, I have an excellent read to recommend today. It is by Doug French of the Mises Institute and he compares Ben Bernanke of the US Fed with Governor Gono of the Central Bank of Zimbabwe. Read it - and you will know how Chacha Manmohan S Gandhi and his cronies in government are just clones of Bernanke and Gono.
And Parliament, of course, is a pigsty.
but,wasnt most of the so called stimulus in india ,mainly cuts in excise and other taxes?. that is a good thing. in fact rolling back tax cuts is the worst thing that could happen. not denying that the printing press has been in operation in india for a long time.but when the mainstream speaks of stimulus for 2008-2009 ,they speak of taxes.
ReplyDelete@Dsylexic: As with Bernanke, so too with Chacha, the "stimulus" in both cases involved a great deal of "quantitative easing" - the latest euphemism for printing currency notes. This is the "state of the art" among the world's central banksters (as in "gangsters") - for this is how they co-operate with each other. If only Bernanke were to engage in quantitative easing and other central banks did not, then there would be "capital flight" away from the USSA. Of course, this means that Chacha acts always as a client of the USSA - never in India's sovereign interests, which would indicate a return to sound money and the gold standard.
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