Thursday, August 06, 2009

Reading the freeloading press one would assume that India is the only country in the world without any difficulty resulting from the recession affecting the rest. Our growth is going to be around 7%, Sensex is climbing ever higher and the government will soon come out with a way to sell parts of public sector companies. Thank God the Congress won the election is the feeling conveyed. The gems are in the little bits. If Anil Ambani is to be believed RIL, his brother's company, is deliberately underproducing gas to keep prices high to maximise profits. The monsoon is around 40% deficient in the whole country and with food inflation over 20% year on year the aam aadmi can expect major hunger. Sugar prices are expected to double because farmers have moved away from cane production. This is because the last government banned export of sugar in 2007 because of high prices and then the prices fell so low that farmers switched crops. Inflation is at minus 1.58% and exports have fallen 9 months in a row. Public sector banks have accumulated Rs. 440 billion of non performing assets or bad loans. Yet so stupid is the press after admitting that problems were many one pundit cheerfully wrote that everything will be fine because Dr. Manmohan Singh has always been a lucky Prime Minister. Excuse me but Dr. Singh has been prime minister only once when he did nothing except sign a one sided nuclear deal with the US which is going nowhere unless we bend to the US demand to sign the NPT and the CTBT. If only we had a free press.

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