A chart comparing changing values of properties between some cities in India makes fascinating reading. This chart gives a comparison of prices between 2007, first and second halves of 2008 and the first half of 2009. Seems that property prices gained the maximum in Kolkata inspite of all the trouble in Nandigram and the relocation of the Nano car plant to Gujarat. Many industrial projects were cancelled or postponed on seeing the troubles faced by Tata. The property prices went up 14% in the first half of 2008, gaining a total of 40% in the whole of 2008. By June 2009 prices had gained a total of 59% compared to 2007. Why were property prices going up even though industries were pulling out of Bengal and there was a worldwide recession? It may be because general elections were held in May 2009 and people could see that the Commies were going to lose. So people decided to consolidate and hide their black money. Property is the easiest and the safest place to invest black money which maybe why prices have jumped. Yesterday the annual budget was presented with the usual hoopla and freeloading journalists are predicting India to achieve double digit growth rates in the next few years. The black economy in India is equal to or more than the official GDP and if growth reaches double digits then inflation should reach triple digits. If rents of commercial properties are higher in Mumbai than in Manhattan then there must be something majorly wrong somewhere. Can an economy built on the quicksand of black money survive? If we can invent the famous rope trick, why not.