OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy

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Subject:	OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy
Date:	Tue, 22 May 2012 02:22:12 -0700
From:	Jas Jain

OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy

How come OECD is not giving the same advice to the US? Well, the US is the big dada, or the goonda boss, engaged in dadagiri. The same dadagiri that the "Russian" mafia engages in Goa, India, is done at the federal level in America by debt pushers in-charge of both the fiscal and monetary policies. The American big dada has the big dalla, the reserve currency. Abuse of a privilege results in losing the privilege some day. And that day might come sooner than people are prepared for.

INR hit new lows and there is lot more to go, because RBI simply does not have much firepower. besides, INR is overvalued relative to the USD as are many other currencies. Debtors can't be choosers unless one is the big American dada. People simply don't grasp the shaky foundations of the Indian economy; it wouldn't take much troubles in the global economy for the Indian economy to collapse.

Rich countries can get away with borrow-and-spend longer than poor countries. India, the UK and the US are on a bad path and would not be able to avoid severe depressions. There are bad and corrupt leaders in India, but nothing like those in America where we have legalized fraud and Facebook (FB) is the latest example. BTW, how many people in India understand what causes depressions in an American-style capitalism? Heck, how many Americans understand it? It is the debt, stupid! (The stock market is a substitute debt market).

Ja

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FWC: Rupee falls to all-time low, but FM says no need to panic

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-------- Original Message --------

Subject:	FWC: Rupee falls to all-time low, but FM says no need to panic
Date:	Wed, 16 May 2012 10:42:09 -0700
From:	Jas Jain

FWC: Rupee falls to all-time low, but FM says no need to panic

RBI is intervening to keep the rupee (INR) from falling. India is not Switzerland and rupee is no Swissie. SNB intervened because Swissie was grossly overvalued and bringing it down became a necessity for the economy. INR is overvalued and needs to fall. Once the global depression begins (could happen at any time without much advance notice) the foreign capital that is leaving leisurely now would flee like a herd getting out of a narrow gate and trampling one another. Only stupid people would keep their capital in INR. Indian govt's ability to manage the economy during the depression is next-to-nil. Crooks would manage their own interests with hired goondas while the govt looks the other way and politicians blaming one another. Bhagavan pe bhrosa hai. What a system!

Jas

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http://www.yourmoneysite.com/news/2012/may/rupee-falls-to-all-time-low-but-fm-says-no-need-to-panic.html

Rupee falls to all-time low, but FM says no need to panic

The currency is back in focus with the rupee falling to new lows on increased capital outflows amid strong demand for the greenback.

Surrendering to the sharp risk aversion hitting global markets, in addition with country's fiscal and economic outlooks, the Indian rupee today fell to a record low against the dollar.

On Wednesday, the rupee fell to an all-time low of 54.46 per dollar. However, the finance minister said that there is no need for panic, as the rupee could be under pressure but RBI is keeping a close watch on the currency.

On Monday, it was assumed that the Reserve Bank of India had defended rupee at the 53.90 level, and there were hopes that the central bank would intervene at the 54 per dollar level. However, RBI Deputy Governor said that the Reserve Bank of India does not intervene to protect any level of the rupee.

He clarified that the central bank intervenes in forex market only to contain volatility. "The regulator will act to stop speculation in forex markets."

Speaking to Bloomberg UTV, sources said that the central bank may sell dollars directly to oil companies. They further said that special market operations (SMO) window will be opened which might probably be announced this week. "Could keep SMO window open for 2-3 weeks," they added.

SMO is special market operations to supply dollars. Way back in 2008, RBI had temporarily opened a special window.

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