Well I am back. Before featuring to the outside world lets focus on the last two weeks that were vibrant for the India. I hardly watch news on television but during these days the only source of information was television and the Indian media.
Sharing some of my thoughts – The Media left no stone unturned to ensure that the TRP rights will be on peak showcasing the BJP (India’s biggest opposition political party) internal disputes and the naming ceremony of Mr.Narendra Modi as Prime Minister Candidate.
It’s well known Mr Modi is a famous and controversial figure in this country. To be honest the media showcased the story as if he has become the PM of this country. Continue reading “Modi – India – Rupee – Raghuram Rajan”
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”
It would be too harsh to put that the Indian economy is facing one of the worse situation in the last 20 years .
The FT published a Misery, Indian edition Index indicating fears over policy ‘credibility’ could send the Sensex in such a spin on Friday — India’s benchmark closed down almost 4 per cent — and trash the rupee…according to them this isn’t the classic misery index — for India substituted industrial production for unemployment data, which are lacking — but it’s the first time in over twenty years that it has remained stuck at such a high level, they note. Continue reading “The Indian economy is ‘miserable’ at the moment”
A week back I shared the RBI and research analyst conference, I am sharing the status from one of my professor Stop blaming RBI! MMS, PC and gang are doing the DAMAGE. Blaming RBI for the rupee falling is like saying ‘the mirror is making me look fat’ – its your diet, bumbo, not the mirror. The Rupee is reflecting the government’s mis-governance, not RBI’s mistakes. Welcome Raghuram Rajan you theoretically have 15 years in which to do something.
RBI addressed four major risk in its latest policy,and biggest and the first risk factor stems from our vulnerability in the external sector, in particular sudden stop and reversal of capital flows that we saw over the last 10 weeks. Continue reading “Rupee @62 Stop blaming the RBI”
Today India wake up to the 66th anniversary of free India with reduced freedom. The Reserve Bank of India (RBI) on Wednesday reversed the long-term secular trend of easing capital controls by severely limiting the amount of money citizens can remit abroad, and businesses can invest in foreign ventures. Gold imports are being further squashed.This gives me the feeling of 1991.
RBI put a spoke in their collective wheel by indicating that Indian companies can invest only amounts equal to their current net worth abroad through the automatic route – as against four times their net worth currently. If this norm had been in place 10 years ago, the Tatas would have thought thrice about buying Corus or Jaguar Land Rover, the Birlas would have found it tough to buy Novelis and Bharti Airtel may not have bought Zain. All these deals would have had to pass through tedious government clearances. Continue reading “India 66th Independence back to 1991”