Thursday, November 10, 2011
Our most revered Finance Minister says that food inflation is at 12.21% because Indians have become so rich under this Congress led government that we are gorging on eggs, meat, vegetables and milk. Fancy that. People are so stupid that they do not realise how full they are and keep complaining about having to stop eating eggs, meat, vegetables and milk. The economy is doing so well that the rupee is down 10% against the dollar, indirect tax collection is down 2.5% in October showing reduction in consumer spending, fiscal deficit will be higher than 6% and the trade deficit is $ 273.5 billion between April to October. Moody's has downgraded outlook for Indian banks from stable to negative because of deteriorating asset quality, capitalisation and profitability. Allahabad bank has not sanctioned any loans to state electricity boards for the last 6 months because of mounting debts. Despite enormous rises in electricity bills power distribution companies lost Rs 400 billion last fiscal because at least 40% of power is stolen by friends of politicians and civil servants. A check from Kingfisher Airlines to Airport Authority for Rs 150 million has bounced. Jet Airways is having to lay off 10% staff and the Chairman of state owned Hindustan Petroleum, S Roy Choudhury says he has no money to buy crude. HPCL has debts of Rs 310 billion and its debt equity ratio stands at 3:1 making it impossible for the company to borrow more money. All this is because of uncontrolled spending by the Congress in an effort to buy votes to win the last election and frantic increase in taxes to plug the hole. We are going down. Time to drown our worries. If only we could afford it.
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