RUNNING ECONOMY BY MONEY PRINTING

RUNNING ECONOMY BY MONEY PRINTING

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India Govt is running its economy by printing money, it’s a very dangerous trend, as HT Reports that RBI to print (already started the job) 18 THOUSANDS TONs of notes, also cautioned it is a very very large amount by any standard, be that US Dollar, EU Euro or China Yuan.

Infusion of such huge amounts in the economy will be very disastrous, the inflation, the price rise, especially the FOOD PRICE RISE will break every body’s back & send the economy in swirl, the Govt is forcing the RBI to be on this money printing spree just to squander away the money in HIGHLY POPULIST but UNPRODUCTIVE programmes, if this POLICY brings this country to its knees, then this SONIA Congress Govt will be fully responsible. Only stopgap measures of raising INTEREST RATES by RBI too frequently are no SOLUTION at all.

EU Nations are facing similar uncontrollable disasters, Greece, Portugal, Ireland, Spain, one nation after another in black hole, EU is pressing hard on them to reign dangerous budget deficits & implement VERY TOUGH Austerity Measures, even no takers of their Govt Debt Funds i.e. bonds of these countries (as Govt debts too, is so high), EU, IMF are arranging for their bail outs, sitting frequently.

Is India will get such back up as EU nations or go Mexico & Zimbabwe way, if India remains this reckless who will provide us back up ?

Now, about China, IB Apr’10, China’s Overheating: consumer prices rising, giving the massive money supply, danger is, that inflation may go out of hand.

Chinese Govt admitted, inflation posed a threat to social stability (Please mind the sentence). Govt has taken measures like raise reserve, check on money supply, control on lending, increase down payment for loans(margin money), lending to endpoint(no direct money to borrowers, but input suppliers & builders).    

 : Subhro Das