Wednesday, July 02, 2008

Congress is the largest party of the Central government in India and the economy is again under great stress. It is a familiar story. Of course, they blame the OPEC countries for the record high oil prices, the US for the record high food prices and steel companies for the sky high inflation. Anyone but themselves, secure in their knowledge that public memory is short, the free loading press is not going to expose their lies and with half the population uneducated they will get away with it. It was the same in the late nineties. House prices were rocketing and inflation was out of control. The interest rates were so high that banks were giving 14.5% on fixed deposits and triple A rated companies such as Tata Steel were raising money from the market at 18%. The Sensex was high and then it all fell apart. In the initial years of this government growth was high because interest rates were low all over the world, money was cheap and the effects of the previous BJP government were still working through the system. Four years of Congress and stagflation stares us in the face. How do we get rid of them?

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