Even as the Indian capital outflows and current account exodus may be threatening to shut down the economy altogether (except for the three oil companies that received a last ditch USD infusion from the RBI yesterday), the central bank is planning and strategizing. And it appears to have come up with more of precisely the same that has led it to its current unprecedented predicament: prevent the population from converting their wealth into hard money, i.e., gold. But while the government’s attempts to impose capital controls on gold purchases have been well documented, the latest foray is just a headspinner.
So let’s see: dumping India‘s gold kicks the can on the Indian economic collapse and current account , if only for a few months, and kills the price of gold again. Why, this is a slam dunk plan as far as the internal brotherhood of banksters is concerned. Which is why it will happen sooner or later. As for the popular outcry against this move, why cares? It is not as if the popular opinions matter when bankers make decision. Continue reading “India Stands on Gold”