Industrial output shrank by 5.1% in October leading to a fall of 343 points in the Sensex. Immediately a cry has gone up for a reduction in interest rates even though core inflation is at 10%. Politicians, civil servants and business tycoons want interest rates to come down so that property prices start climbing again because that is where they have parked all their black money. It would be suicide if the RBI were to buckle under this concerted pressure and reduce interest rates because inflation could then jump resulting in economic disaster. China's economy is also slowing down. Its communist oligarchy depends on high rates of growth to generate more jobs and a higher standard of living to keep its population quiet and head off any demands for political reform. Yet, even though inflation has dropped to below 5%, China has not reduced interest rates but is cautiously reducing cash reserve ratios for banks to encourage them to lend more because it recognises that inflation causes greater hardship. The only way for India to survive is to reduce government spending. Cut the number of government employees by 80%, allow Air India to go bankrupt, no salary increase for civil servants unless they accept hire-and-fire, reduce entitlements for politicians, control population by denying social help to anyone who has more than one child and engineer a fall of 70% in property prices to wipe out black money from the system. So that there is no hardship announce that no social help will be given to anyone born after 1995, who is 16 years old and thus unmarried, if they have children. Sadly politicians only want votes because that is the way to loot. Traitors.