Reserve Bank of India does not produce wealth, but yes, it does produce currency by printing out notes out of thin air to meet the fiscal deficit requirements. When the RBI print out currency to fulfil the requirements of government, the currency reaches the market and that causes inflation and acute price rise.
The current acute price rise in India (especially in food sector) is evidently the result of the government stimulus it provided on behalf of borrowing from RBI that in turn simply print and dolled out currency in the market to increase the liquidity. Now those “stimulus” for the market is causing problems for the common man. That is, although government borrows money from RBI, which in turn, prints out money at the demand of politicians and government, the actual borrower who suffers the burden of debt is only the common man of India who has to face the yawning mouth of inflation every second day. Continue reading

It is very common to hear some environmentalist on any main stream media freaking out about the global warming and rehashing the swan song of environmentalists concerning assumed disasters that await the world if it carry on with its evil ways of fossil fuel consumption: the disappearance of islands beneath the sea, the flooding of coastal cities, more severe droughts and hurricanes, famines, disease, the displacement of tens of millions of people from their traditional homelands and the disappearance of glaciers.
However now the climate is surely changing and in this new climate, those environmentalists surprisingly are accepting their faults, yet they are not ready to take the responsibility. Continue reading

War has a Role in Peace
While accepting “Noble Peace Prize” at Oslo, Obama did not forget to mention his recent decision to escalate conflict in Afghanistan soil. He further argued that his decision to increase 30,000 some more US troops in Afghanistan is justified to protect the world from terrorism and extremism and to maintain peace.
In short, Obama declared that wars are essential for the establishment of peace. He also paid his tribute to his “Heroes” Mahatma Gandhi and civil rights leader Martin Luther King.
Some will say that Obama wrongly mentioning Mahatma Gandhi as his ideal; Mahatma Gandhi obviously is known as apostle of peace and pacifism. How could a Gandhian support wars? Could Gandhi be a supporter of wars? Are not wars the ultimate and most excruciating form of violence? Continue reading

Often the politicians assume that it is their responsibility to provide certain services like health care or education for the needy on behalf of the compulsory tax collected from the common citizen. Thus, they propose the single payer socialized Universal Health Care System or Universal Education System with the theme of Education for All, where everybody is free to take free advantages of the medical care or education system, while government pays for the cost of it. The general intention of such politicians who exhort such an idea is to gain the public vote; it is nothing different than bribing the voters monetarily in order to get their votes to make a government. Continue reading

In a free-society with individuals having complete self-ownership, (Capitalist society) the production of wealth vitally depends on division of labor, a system of production in which all the labor required is broken down into separate, distinct occupations. Obviously, each individual is free and self-responsible enough to decide at his own to what occupation suits him well and serves his self-interests in most proficient way. A society of free self-governing individuals essentially depends on each individual’s self-interest and his ability to exploit his own talent and efforts for fulfilling his needs, desires and self-interests and that makes rational-selfishness as the virtue of the free individual. Continue reading

The common excuse of politicians for the current economic crisis is, due to well-planned regulations, Indian economy is least suffering and has maintained a good GDP growth rate of 5.3%, while most of the other nations are suffering deep negative growth. By such bombastic claims of growth because of the government regulations, Indian government not only eludes the common man, but the current government also makes a political strongpoint for the upcoming general election.
Yet recently, one of the most prominent economists of India Mr. Surjit Bhalla has claimed that this is false comfort based on incorrect calculations. Citing OECD data, he says India actually had negative growth (-11.8%) in Q4 of 2008, not the 5.3% claimed by the government.
In addition, OECD based report says that in comparison, Indian economy fall with negative growth of 11.8% if we compare the GDP of 2007 for the fourth quarter with the fourth quarter of 2008.
Indian growth is far worse than in the US (-6.2%), UK (-8.4%) or European Union (-8.2%), though better than in Japan (-17.8%) or Korea (-28.8%). Continue reading

Alan Greenspan, the former chairman of the Federal Reserve, was often considered as one of the most powerful men on earth. What is interesting about Alan is that he was once an acolyte of the novelist-philosopher Ayn Rand, and a proponent of the Gold Standard. It is indeed an irony that he later renounced his views on Gold Standard and headed the very institution he attacked – The Federal Reserve.
As advocates of a free market economy know, it is a characteristic of the enemies of capitalism that they blame the evils of interventionism on the free market. It is, they say, the “laissez faire” policies of Alan Greenspan, which caused the present economic crisis. They conveniently forget that Greenspan gave up his views on Capitalism long ago. It is also forgotten that the existence of the Federal Reserve is incompatible with a free market economy. How is Government manipulation of money and credit a free market policy? Isn’t it a form of central planning? Isn’t it ridiculous to blame the present mess on Capitalism when Capitalism never existed in the first place?
There is one thing in common between those who blame Capitalism for the present crisis. It is that they are totally ignorant of Economics, and yet hold strong opinions on the topic. Continue reading

Venezuela is currently suffering from severe shortages in the supply of various goods, in particular rice. The nation reminds us of the erstwhile USSR in this aspect, as it does in many other perspectives. Only that direct physical force against the masses has not been let loose yet. Venezuela has been reeling under the impact of shortages in the supply of various goods since 2003, and now the crisis has hit rice supply as well. Keeping up with propaganda records, Chavez has launched a propaganda tirade against private suppliers. He has accused private suppliers of hoarding supply of rice. There could be a certain element of truth in it, suppliers could indeed be hoarding supplies to a certain extent. But that’s definitely not where the fundamental problem lies. The causal problem of this crisis lies in price-controls which have grown in size ever since 2003. Continue reading

“Hindi-Cheeni Bhai Bhai” (Indian and Chinese are brothers).
Now again after years, China and India are together on a plane to project their political protest against the socialist USA and its protectionist policies and moves.
Chinese Ambassador Zhang Yan stressed that China along with India is strongly against trade socialism in form of protectionism. He stressed that such move is harmful for the… Continue reading

America used to be the prime destination of the best and brightest immigrants from whole round the world, but with its stride to adopt for socialism in form of protectionism, and announcements to cull tax reliefs to the companies employing foreigners working on H1B visa and other issues, now America is loosing its shine.
What the dangerous threatening groups like KKK could not do in years, is being done by US government and its protectionist policies within months. Such is the nature of poison of socialism and US is hell bent to take its gulp now.
US enjoyed the luxury of being the strongest magnet for the immigrants for long time, and those immigrants actually made USA the world’s most innovative and technically sound nation, now the lustrous history is about to be faded. India and even so-called communist China are gradually picking up race for being the strong magnet to catch the best minds ready to innovate and deliver ways, techniques and procedures to produce wealth. Immigrants actually can be the major engine of productions, knowledge, technology, economical success and pride and none other than Americans no this reality.
Yet for their newly acquired colors of socialism in form of protectionism, they are at the brisk of loosing that extra edge. Continue reading