Read the Wednesday Afternoon Wrap-Up for 6/12/2013 and the Thursday Morning Commentary for 6/13/2013
According to Wikipedia, these are the definitions of the three words that best describe the Indian government; which receives my vote for the MOST INCOMPETENT ON EARTH…
HUBRISTIC – Exhibiting extreme pride or arrogance; often, indicating a loss of contact with reality and an overestimation of one’s own competence or capabilities – especially when the person exhibiting it is in a position of power
SUICIDAL – Acting with a desire to intentionally cause one’s own death
LUNATIC – Mentally ill, dangerous, foolish or unpredictable
Five months ago, I penned “UNINTENDED (INDIAN) RAMIFICATIONS” in response to India’s LUNATIC decision to crack down on gold purchases…
India FinMin: “Demand for Gold Must Be Moderated” – January 2, 2013
…in a nation more steeped in gold-owning tradition than ANY OTHER…
How to treat grave robbers – When the wife of my great-grandfather died, he buried her wearing all her gold and silver. An English official protested: ‘But you’re throwing away a fortune’, but he replied: ‘She brought me a fortune, and I would not like to see her in another world poorer than when she came to me.’ Three days later, when the police came to the Portugee Shop to inform him grave robbers had dug into her coffin and taken the precious metals and jewels, he said: ‘They were hers. She spent them as she thought best.’ But when some of the jewels surfaced in the Trinidad bazaars sometime later, he made careful note of who had them – and of how they had obtained them – and shortly after that, several men were found dead…one by one.
-James Michener, from Caribbean
…per 60 Minutes’ eye-opening 2012 segment…
India’s love affair with gold – CBS News – February 2012
At the time, the Indian Rupee had fallen to an ALL-TIME LOW of 58/dollar; prompting surging inflation in one of the most food inflation-sensitive nations on Earth…
Indians spend 25% of income on food, 1.5% on health, 1.4% on EMIs
…per this March 18th report…
India last week said consumer price inflation rose 10.90 percent in February, accelerating slightly from January, while wholesale price inflation rose 6.84 percent from a year earlier. Although food inflation slowed down to 11.38 percent last month from 11.88 percent in January, it stayed in double-digits for the third straight month.
-Indianexpress.com, March 18,2013
…that prompted Moody’s to consider downgrading its credit rating…
Food inflation negative for India credit ratings: Moody’s – March 18, 2013
Following massive currency market intervention – and HUBRISTIC increases in gold import duties – the Rupee rose nominally, to 54/dollar…
Traders to lose heavily as India hikes gold import duties to 6% – January 21, 2013
…enabling consumer inflation to “fall” from 10.9% to 9.3%…
Retail inflation slows to 9.3% in May
Unfortunately – as in America – what the government reports has little relationship to REALITY; and if the following quote from last weekend is any indication, Indian economic data has just lost ALL remaining credibility…
What gasoline is to an American, onions are to an Indian. That is their core food staple. Those things (onions) have gone up 110% in the last 3 months alone, on the back of a previous 100% price hike in the prior 12 months.
-Philippa Malmgren, former member of the U.S. President’s Working Group on Financial Markets – King World News June 7, 2013
When said negativity was sweeping across India in the first quarter, its current account deficit reached an ALL-TIME HIGH…
India current account gap at record high – March 28, 2013
…which according to Nomura Securities, is no better today…
…per the below report, from just three weeks ago…
India’s current account deficit set to worsen again in Q2 2013 – May 23, 2013
Thus, the LUNATICS running India – whom I liken to the ousted South African Apartheidgovernment of 1948-94, in that they are among the minority believing in FIAT CURRENCY – stepped up the HUBRIS; in this case, by “jawboning”…
India Finance Minister Begs his People to Stop Buying Gold – May 20, 2013
…imposing additional import tariffs…
India raises gold duty to 8 percent, imports likely to drop – June 5, 2013
…and actually banning banks from selling bullion coins…
India Central Bank Prohibits Sales of Gold Coins – June 6, 2013
Irrespective, Indian PHYSICAL gold demand will hit an ALL-TIME HIGH in the second quarter…
Indian Gold Demand heads for Quarterly Record (2Q) after price drop – May 29, 2013
…while – as I write – the Rupee has set a new ALL-TIME LOW of 58.5/dollar…
…whilst in the spirit of yesterday’s RANT – “S&P HITS A NEW ALL-TIME LOW” – this is how Fitch “rewarded” India – today…
Fitch revises India outlook to stable from negative, backs government efforts – June 12, 2013
The END GAME of global currency collapse is rapidly approaching; and thus, don’t be surprised if the HUBRISTIC, SUICIDAL, LUNATIC Indian government is situated at “Ground Zero” when it does.
