Wednesday, February 18, 2015

The stooge has center stage. We watch.

The new Chief Minister of Delhi, Mr Kejriwal was sworn in on Valentine's Day on 14 February, which was very apt as the people love him for all the freebies he is going to give them. The common complaint against Mr Modi is that things have not improved. No one understands or cares about how the Congress left the country bankrupt, how the growth in the early years of the Congress regime was a mirage built on massive borrowing, which has left the banks struggling with bad loans, or the double digit inflation caused by the blatant bribery of voters, with handouts. However, what people want differs completely depending on who they are. Business fellows want laws to be changed so that they find it easier to run a business. It is strange that they did not castigate the Congress for enacting those very restrictive laws in the first place, which have resulted in India dropping to 142 in the list of countries on the ease of doing business according to the World Bank. Most of the people want handouts. The middle class wants more jobs but in the meantime would like electricity bills to fall and free wi fi throughout Delhi. The poor, who are the vast majority, want lots of free handouts regardless of the cost to the economy. So, the fun starts now, how to pay for the freebies. The regulator is going to increase electricity charges by 10-15% which will add to the amount of subsidy the government will have to pay. Power distributing companies want a rise of 25% in electricity charges, so we could face long periods of blackouts when consumption peaks in a couple of months, when temperatures in Delhi exceed 45 degrees Celsius. So, Mr Kejriwal has come up with a plan to set up a coal based power plant dedicated to supply Delhi. Brilliant. Except for the fact that he will have to bid for a coal mine and then buy land in a neighboring state to set up the plant. The Delhi Metro wants a rise in ticket prices, which have not been revised since 2009, and if the price of electricity rises then the deficit will rise accordingly. If the government does not allow fares to rise it would need to pay the difference to maintain the same level of service. The government has banned demolition of illegal buildings in the city. This will not only encourage land grabbing but cause friction with the municipalities. There are more humongous expenses - 700 liters of free water for everyone, land for 200 new schools and 20 new colleges and cheap student loans. The Congress-loving, anti-Hindu press was venomous in its criticism of Mr Modi's monogrammed suit but was silent when Manmohan Singh took his official gifts with him. We shall see how this Congress stooge destroys Delhi. Mr Modi is warned that he is hated by the traitors so let us hope he watches his back.

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