by Andy Hoffman, MilesFranklin.com:
In many ways, India is the “poster child” of all that’s wrong with the financial world. Sure, the clueless Federal Reserve destroys the world with its “reserve currency printing press” – while the ECB hopelessly attempts to cohere the ill-fated European Union with smoke and mirrors and the cursed land of the setting sun embarks on history’s most maniacal money printing scheme. However, no nation’s politicians have sold their soul more deeply – and irreparably – than India’s.
The Reserve Bank of India’s notion that exploding deficits are due to citizens’ gold purchases – as opposed to their own, hyperinflationary monetary policy – is borderline psychotic; and consequently, the world’s second most heavily populated nation is well down the “Egyptian road” toward widespread social unrest. To wit, recall the incredible King World interview with Pippa Malmgren three months ago – when she spoke of exploding Indian food prices. In fact, things have gotten so bad, the Indian government recently enacted legislation to feed two-thirds of the population with essentially free food; an insane move that will not only balloon said deficits, but puts the government at open-ended risk of further price increases.
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