It is a volatile time in India. Long before the Ides of March, the weather has been playing a lot of games: it was quiet in parts of January and even early February.
March 16, 2007 (Press Release) --
New Delhi, 16th March, 2007: It is a volatile time in India. Long before the Ides of March,the weather has been playing a lot of games:it was quiet in parts of January and even early February, then came welcome,unexpected rains and hills had snow as had much of the west.Then the Indian stock markets had a bloodbath.It was down 900 points, the Sensex, in four days flat;it was 1,000 points down in December last year.Both times,bulls came aggressively back and have started recovering ground yet once more.
Then the devilish inflation came like a rocket and the rulers are in panic,the inflation refuses to stop even though the financial wizards of the government and the Reserve Bank have taken a good number of steps.Money has been reduced in the hands of the banks,interest rates have been raised, traders in food will be denied bank loans to curb hoarding,but will they bother?They have their money to stock up.Two rupees have cut even petrol and diesel prices and one rupee respectively,import duties have been cut and will be cut further in the Budget,and excise duties will be reduced.Wheat exports have been banned.
But the grocer and the green grocer is making hay as the sun shines again,not metaphorically, but literally.Food processors are engaged in gimmicks, new packaging of cookies,reduced supplies and higher prices,loaves of bread are dearer any way, eggs are costlier, Rs.24 a dozen at the last count.Cakes and ale like the Marie Antoinette stuff:can't get bread, eat cake with a dash of French wine or any wine.The wholesale and retail prices of veggies are reminders of doom: 100 per cent between the two.But inflation measurements are only wholesale;retail prices can peak to the sky, the rulers count what their statistic jugglers tell them.They want their figures right. It is not only Budget time;it is also election time in four States.The fate of rulers in Punjab, Uttarakhand, and Manipur had been decided and Delhi should be decided around February 2008.
U.P. has some time to decide.A new legislature should be in place sometime in May.So elections could be held even in April,if not at the end of March.Gujarat will go to the polls at the end of the year;another highly volatile State where the saffron bunch has to count its chickens before they are hatched.Will the radicals or the hardcore guy make it?Time will tell.But money is the name of the game,whether you will make it with the voter or not,whether you will win or lose.As long as you succeed in the money game,sitting in the Opposition can be quite fun,as the BJP is now thinking with hyper inflation giving sleepless nights to the rulers and they are hoping to cash in on it,cash in on what is called the incumbency factor.
So what is the cause of inflation?Is it worldwide factors?Is it dearer energy,costlier because of the suddenness of the freezing weather?Is it India's globalization and a lot of liberalization moves,going ahead with very few breakers?Are there any other reasons?
Then the devilish inflation came like a rocket and the rulers are in panic,the inflation refuses to stop even though the financial wizards of the government and the Reserve Bank have taken a good number of steps.Money has been reduced in the hands of the banks,interest rates have been raised, traders in food will be denied bank loans to curb hoarding,but will they bother?They have their money to stock up.Two rupees have cut even petrol and diesel prices and one rupee respectively,import duties have been cut and will be cut further in the Budget,and excise duties will be reduced.Wheat exports have been banned.
But the grocer and the green grocer is making hay as the sun shines again,not metaphorically, but literally.Food processors are engaged in gimmicks, new packaging of cookies,reduced supplies and higher prices,loaves of bread are dearer any way, eggs are costlier, Rs.24 a dozen at the last count.Cakes and ale like the Marie Antoinette stuff:can't get bread, eat cake with a dash of French wine or any wine.The wholesale and retail prices of veggies are reminders of doom: 100 per cent between the two.But inflation measurements are only wholesale;retail prices can peak to the sky, the rulers count what their statistic jugglers tell them.They want their figures right. It is not only Budget time;it is also election time in four States.The fate of rulers in Punjab, Uttarakhand, and Manipur had been decided and Delhi should be decided around February 2008.
U.P. has some time to decide.A new legislature should be in place sometime in May.So elections could be held even in April,if not at the end of March.Gujarat will go to the polls at the end of the year;another highly volatile State where the saffron bunch has to count its chickens before they are hatched.Will the radicals or the hardcore guy make it?Time will tell.But money is the name of the game,whether you will make it with the voter or not,whether you will win or lose.As long as you succeed in the money game,sitting in the Opposition can be quite fun,as the BJP is now thinking with hyper inflation giving sleepless nights to the rulers and they are hoping to cash in on it,cash in on what is called the incumbency factor.
So what is the cause of inflation?Is it worldwide factors?Is it dearer energy,costlier because of the suddenness of the freezing weather?Is it India's globalization and a lot of liberalization moves,going ahead with very few breakers?Are there any other reasons?
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