Saturday, August 17, 2013

A parasitic government.

The monotonous drone by our most revered Prime Minister, designed to beat us into submission out of sheer boredom on 15 August, was full of the usual bromides. " We need to strengthen those traditions of our country which teach us to promote tolerance and respect for thought processes different from ours," he preached. TOI, 16 August. What thought processes are those? Those that make Pakistani soldiers cross into Indian territory to kill 5 soldiers or those of the Congress which seek to excuse the killings? Those of Saeed Hafiz who masterminded the Mumbai attacks and promises more attacks against India while the Congress goes on bended knees to beg for peace with Pakistan? Speaking about the economy he said, " We are trying our best to remedy the situation." Livemint, 16 August. How? His government has raised the customs duty on gold from 2% to 10% in steps in an effort to reduce the import of gold. This is a dastardly attempt at stopping people from saving money. First his government allows retail inflation to grow at 10% making it impossible for us to survive, then he forces the Reserve Bank to lower interest rates to protect Congress cronies with black money, which reduces our savings and reduces pensioners to penury, and when people turn to gold to protect their money losing value, he increases the duty on gold, silver and platinum. This is cruel, mean and stupid. Gold imports more than doubled in the April to June quarter of 2013. TOI, 16 August. Gold shipments increased to 338 metric in the 3 months compared to 153 tonnes last year. Total demand rose 71% to 310 tonnes, with demand for bars and coins increasing to 122 tonnes from 56.5 tonnes and sales of jewelry increasing 51% to 188 tonnes. Full year demand is seen at between 900-1000 tonnes. However, imports may drop to 150 tonnes in the second half of the year because of higher taxes and new Reserve Bank restrictions linking import to reexport but smuggling is likely to increase which will not bring taxes. In Delhi hotel occupancy rates are down by 50% and luxury tax collections have fallen from Rs 910 million last year to Rs 880 million to 31 July, 2013. This is because of a plethora of new taxes on gyms, spas and banquet halls forcing foreigners to go to cheaper destinations like Bangkok. Parasites can suck only so much blood before the host dies.

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