Who will protect us from so much good?

Money or no money life must go on, which is not easy in India at the best of times. India Ratings says that Rs 4 trillion in bank loans are at risk of default and may have to be written off. After assessing assets against debts of 500 companies the rating agency found that 240, with loans of Rs 12.4 trillion, are vulnerable. Struggling companies are mainly in real estate and telecoms, precisely the companies hardest hit by the banning of high denomination notes, called demonetisation. Information Technology, India's main exports, are under threat because of Donald Trump's promise to reduce H1B visas. The price of oil jumped after OPEC decided to cut production by 1.2 million barrels a day, with Russia agreeing to reduce production by 300,000 barrels per day. US job figures show that 178,000 jobs were created in November, bringing the unemployment rate down to 4.6%, the lowest in 9 years. This makes it almost certain that the Federal Reserve will increase interest rate at its next meeting. The flood of currency into banks has resulted in 10 year bond yields falling to 6.241% which could see foreign investors sell Indian bonds as yields harden in the US. If foreign investors pull money out of India it will result in a fall in the value of the rupee which will mean they will get fewer dollars in exchange. That could see further sell offs, resulting in a precipitous fall in the value of the rupee. If the rupee loses value the cost of oil goes up which will raise prices of all goods, including food. So, to prevent yields falling further, the Reserve Bank increased the Cash Reserve Ratio of banks to 100% on collections above a certain level. Banks do not get interest on CRR but will have to pay interest on all the money being deposited in savings accounts across the country, which will result in losses, in addition to the bad loans they may have to write off. To ease pressure on banks the RBI has increased the Market Stabilisation Scheme, on which the RBI pays interest to banks, from Rs 300 billion to Rs 6 trillion. This is like prescribing strong antibiotic for a common cold, from which the patient gets an allergy, for which the doctor prescribes steroids, which causes severe sepsis, resulting in the death of the patient. Wholesale prices of vegetables have crashed, so that farmers are getting less for their produce. So much for the promise of increasing farmers' profits by 50%. Of course, the government cares for citizens and wants to increase earnings. So, it is building roads and railway lines through forests which cause more accidental deaths of animals, increase in poaching and a reduction in habitat. Thankfully, it is all for our good.