In a speech to the Institute of Chinese Studies our Chief Economic Adviser said that India should help China to be part of the International Monetary Fund's Special Drawing Rights which are composed of 4 currencies at present - the dollar, pound sterling, the euro and the Japanese yen. Mr Subramanian obtained his DPhil from Oxford, exactly as our former Prime Minister did, who left our economy in absolute shambles. As a reward our former Prime Minister has been provided with a house which was previously occupied by the former Delhi Chief Minister, Sheila Dixit and has 31 air-conditioners, 16 air purifiers and 12 geysers. He also went on 'bended knees' to Sharm el-Sheikh just 6 months after the Mumbai attacks in November 2008. China is probably the most dangerous enemy India has, not only because it is occupying vast tracts of our land, not only because it is damming our rivers in Tibet and diverting the water to its own land, not only because it is systematically replacing Tibetans with Han Chinese but also because it is helping Pakistan to continue its terrorist attacks against India. Yet time and again we help this uncivilised nation of cockroach-eaters. We should never have recognised Tibet as a part of China just as China claims Arunachal Pradesh as its territory. We should have accepted the seat in the UN Security Council, which would have kept China out, and now China will never allow India to be a permanent member of the UNSC. As one of the founding members we should have blocked China's entry into the WTO which would have prevented it becoming economically so strong, but we did not. Now is our chance and we must not miss it this time. China desperately wants its currency, the yuan to become part of the IMF's SDRs because that will compel all central banks in the world to keep some yuan in reserve. That will keep the yuan strong and stop flight of capital from China. China has $3.6 trillion in reserve but it needs large reserves to defend its currency and the stock market, which have been falling. If the yuan becomes a reserve currency like the dollar China will be free to print yuan just as the US is free to print dollars. Morgan Stanley has done India a favor by refusing to include Chinese A shares in its MSCI index, which would have forced funds to include these shares in their portfolio. Hence our stock market will continue to attract foreign investors. India should oppose China's entry into SDR at any cost. If the Chinese economy becomes weaker and unemployment rises there will be widespread protests. If civil war breaks with the country becoming divided it will be fantastic for us. Our economy is not linked to that of China so we have nothing to lose. At least we will feel safer.
No comments:
Post a Comment