When you are too weak for conflict, trust in gold.

"The number of Americans applying for unemployment benefits tumbled last week to 576,000, the Labor Department said Thursday, a post-Covid low and a sign that layoffs are easing," AP. In the US, "Retail sales rebounded 9.8% last month, the largest increase since May 2020, the Commerce Department said," Reuters. "Retail sales surged a record 27.7% on a year-on-year basis." "Growth is expected to top 7.0% this year, which would be the fastest since 1984." "The rate of inflation over the past year shot up to 2.6% from 1.7% in the prior month, marking the highest level since the fall of 2018," MarketWatch. "The yearly rate of inflation is likely to settle down later in the year, but it could top 3% in the near future and could put more pressure on the Federal Reserve to tighten monetary policy." "Fed leaders insist any increase in inflation is likely to be mild and temporary." "A recent survey shows that business economists believe the threat of rising inflation is highest in decades." In India, "The wholesale-price based inflation shot up to over 8-year high of 7.39 percent in March on rising crude oil and metal prices," Times of India (TOI). Earlier we found out that, "The Index of Industrial Production (IIP) contracted 3.6% for February 2021, mainly on account of a steep contraction in the manufacturing output, showed data released by the Ministry of Statistics and Programme Implementation," Business Standard. "Meanwhile, India's retail inflation rose to a four-month high of 5.52 percent in March as food prices soared." Food prices rose 4.94% in March, lower than the headline rate. Rise of prices means the rupee is buying less and the difference in inflation rates between the US and India means that the rupee has to weaken against the dollar to reflect its falling value. "The partially convertible rupee was at 75.14/15 per dollar, as of 07.10 GMT, after touching 75.32, its lowest since July 15 last year," CNBC.  It is trading at around Rs 74.60 to the dollar today. Economic Times. A weaker rupee will increase the cost of imports, especially oil, and add to inflationary pressures, which in turn will cause further weakness of the rupee. The whole problem is totally because of the Indian government. "The Union government's net indirect tax revenues jumped 12.3% in 2020-21 to Rs 10.71 lakh crore (Rs 10.71 trillion), despite the economic contraction of the fiscal year," Moneycontrol. Because of enormous increase in taxes on petrol and diesel. "The Union government has not revealed the contribution of petroleum crude and products in the provisional excise duty collections for the fiscal year, but it might be 85-90%, with the share of diesel at 65-70%." Astronomical rises in transport costs will be passed on in higher prices to consumers. This is reflected in the "GST collections rose 27% to hit a record high of nearly Rs 1.24 lakh crore (Rs 1.24 trillion) in March, helping to narrow the deficit for the full financial year around 7%," TOI. If the rate of GST is 20% the government collects Rs 20 on something selling at Rs 100. But if the price goes up to Rs 200 the government will collect Rs 40. So, increase the price of goods and services by taxes on fuel and then collect higher GST on the increased price. Magic. Net direct tax collection was Rs 9.45 trillion, 4.5% higher than the revised estimate of Rs 9.05 trillion. This could be partly explained by a collections of Rs 543.46 billion through the Vivad se Vishwas (from conflict to trust) scheme, in which tax payers are forced to pay to settle outrageous claims by the tax department. When the government resorts to financial piracy people turn to the only talisman they trust. Gold. Gold imports surged by 471% to a record 160 tonnes in March. As dollars flow out it puts more downward pressure on the rupee. Can't vivad with the government, vishwas in gold.