Thursday, November 07, 2013

How do you shut up foreigners?

We know that the Congress would like to ban free speech and thinks that any Indian indulging in free speech is guilty of sedition but how can you ban these pesky foreigners, especially when you are begging for their precious dollars to rescue an economy that is near bankruptcy because of your treacherous policies. The credit rating agency, S&P has maintained India's rating at BBB-/A3 for now but thinks that there is chance of a downgrade to junk status after the general elections in May. Clearly S&P does not want to be seen as interfering with elections by downgrading our credit rating now but has issued a clear warning," We have noted a marked slowdown in India's real growth. This complicates the government's debt dynamics and ability to implement reform." What it means is that with growth slowing down tax collections will not be able to meet the social schemes Congress started to bribe voters and hence a future government will not have the money to lower taxes to stimulate demand or spend on improving our stone-age infrastructure without which we will remain poor. " The next government, regardless of composition, will face several challenges," says the S&P report. This means that the next government will not be able to reduce the fiscal deficit or inflation, which will cause the rupee to fall and lead to a credit downgrade. The Congress has not reacted to the S&P report nor to Jim Rogers, Chairman of Roger Holdings when he said in an interview," I am not very optimistic about India. It is a wonderful country but has not been managed very well for decades." However, the Congress has reacted ferociously to a report from Goldman Sachs which mentions the word the Congress is fiercely allergic to. The word is " Modi ". In a report titled " Modi-fying our view: raise India to Marketweight " Goldman Sachs says that since BJP is seen as market friendly and Modi is predicted to become the next Prime Minister it is raising India's stock market to buy. Our most revered Commerce and Industry Minister, Anand Sharma said," I think banks such as Goldman Sachs should stay focused only on doing what they claim to specialise in." Er, but that is exactly what Goldman Sachs is doing. It is advising its investors. If only the Congress could accuse the bank of sedition and lock it up. Dang.

No comments: