India is deep down under the spiral of inflation and a lot of explanatory causes for the demon of price rise and inflation have been offered by the government that are nothing more than gimmicks on the name of economic policies of Indian government. Food inflation rate this month is around 11.43% which is much more than normally expected. While inflation is a general problem of any centrally controlled economy which is regulated by the government through a central banking system (such as Indian economy controlled by RBI), no government ever act honest enough to take the responsibility of inflation and the consequential problems that a common man face. Indian UPA government too, while obviously knowing that inflation is because of the wrong monetary policies of government/RBI, never accepts the responsibility rather it tries to offer highly irrational ideas behind the cause of inflation and often blames the common men themselves for the corresponding inflation. While inflation in general is a detrimental process, food inflation particularly hits the common citizens the most. This is because of the fact that everybody …Read the Rest
Tag: Inflation
Committing the Same Economical Mistake
We all know that the US economy is in turmoil again. We know that all stimulus packages and fake Keynesian ideas of helping the economy failed in 2008. Then, the US was suffering high unemployment rate and the government took that opportunity to increase its fiat currency so that liquidity may be attained. Barack Obama introduced those huge stimulus packages for the failed Auto industries and the defaulting banks to save jobs and to resuscitate the economy. However, his decision was wrong. He wasn’t resuscitating the economy; rather he was giving a prolonged life for the economic meltdown of turmoil to breathe a little and comeback again in 2011. Now again, unemployment rate is dwindling and the US government is worried along with FED. They know their magical tricks to print and introduce more fiat currency in the market by means of stimulus and treasury bonds have failed. Yet, they have no idea what to do. The major worry for the government and President Obama is not the dwindling economic condition of the United States, nor is it the ever-increasing …Read the Rest
The Myth of Corruption Making India Poor
Anna Hajare raised the slogan against corruption in favor of his Janlokpal Dream and almost every Indian felt the energy of anti-corruption waves. Similar synergy was shown by Indians when Swami Ramdev raised his voice against the black money1 deposited in Swiss Banks. Everyone was worried about the huge amount of Indian money deposited in Swiss banks like UBS. However, very few people realized that bringing black money back in Indian economy will certainly increase the current inflation manifolds and goods, food articles and other daily need commodities will go further high. Thus, that black money if brought back will cause more poverty2 and troubles for poor and middle class family. Obviously, Indians fail to understand that money although is a form of Capital; basically it is nothing but a means to exchange goods and commodities. They also ignore that our currency is Fiat currency which can be easily inflated by the government to raise prices. This is the reason why government doesn’t print money just to distribute it to poor people. Yet, government does use their printing press in …Read the Rest
America is Following the Path of Economic Collapse
Why is the Dow Jones slipping down the lane? Why the US economy is seems to be at its worst? Many people like President Barack Obama will start complaining about the S&P decision to downgrade American debit credit rank. There are many people who consider the S&P as the villain against the US economy. However, the facts suggest that the US suffered downgrade because of its irrational and highly destructive economic policies. Economic matters cannot be managed with emotional appeals and irrational ideas. Yet, American government and politicians always used American economy for their personal whims. The United States lost its status of being a pro-liberty country when the US government accepted to denounce Gold Standard and to introduce a paper fiat currency, the dollars. Paper fiat currency1 has caused similar troubles in every part of the world. The paper fiat currency ($) is used to create boom-bursts-inflation cycles which is nothing but a means to rob citizens by reducing the value of the paper fiat currency, the Dollar. Whenever the government decides to print new money to provide more …Read the Rest
