Deficit Financing is Bad Economics.

Deficit financing in India from the economic times.:-

".The impact of deficit financing on prices

ET Bureau Jan 14, 2011, 06.07am IST

Tags:

• RBI|
• foreign exchange reserves

India resorted to deficit financing, then largely financed through Reserve Bank's books either by printing more money or use of its foreign exchange reserves, right from the early years of planned economic development. However, our planners did not factor in the impact of deficit financing on inflation. But with large foreign exchange reserves, they were confident of the government's ability to manage the supply-side of the economy.

For much of the 1950s, the Bank was part of this consensus. Although the impact of deficit financing on prices had aroused concern already in 1951-52 , price stability did not return as a major cause of worry at the Bank until the mid-50 s. Besides, the Bank recognised the need for any plan to go beyond what available resources dictated, even if some part of the additional investment had to be financed through additions to money supply.

• 
  

Ironically, despite the first plan document, highlighting the important role of the central bank, the Reserve Bank also took a rather modest and self-effacing view about its own part in the planning process during these years, insisting that while it was entitled to be consulted by the government regarding the dimensions of the plan effort, the final decisions rested with the latter.

One of the volumes of RBI's history notes that the central bank was not given sufficient time to consider the first Five-Year Plan, the plan document arriving in Bombay only towards the close of October 1952. Any contribution the Bank made to the first plan document appears to have been cosmetic , rather than substantial, with the Governor B Rama Rau, for instance, choosing merely to object to the plan document's suggestion that 'real democracy' implied the 'equality of incomes' .

But in the mid-50 s, the central bank started warning the government about the impact of deficit financing on inflation. In the last 15 years, with India adopting a more market-driven approach to development, and even the concept of deficit now not including monetisation, the central bank still continues to warn the government over the dangers of high fiscal deficit on the conduct of monetary policy."

COMMENT:-

       Deficit Financing is merely an accounting trick and uses the future savings for present lavish spending!MM Singh is misusing this,for Divestment out of India's PSUs,even the profit-making ones,like the recent[yesterday] stake sales in ONGC.This is equivalent to selling the Family Silver,at good times,and inviting bankruptcy,as there will be no reserves to fall back upon during financial crises. Divestment may also cause corruption,as funds may be diverted.

      The remedy is "Surplus Financing".the Budgeted Expenditure should be below the expected revenue and the Government should NOT borrow from the RBI.

To be continued..... 

Arunachal Pradesh belongs To india

      China has been claiming many Indian areas as its own the most funny case being Bengal included in China,as per its maps,some years ago!China is becoming bolder and bolder and the UPA especially is very meek.MM Singh claims that the two top Chinese leaders are his "friends",even as China humiliates India with frequent incursions,one occurring very recently as per the Indian Army.
      Now China as usual has opposed Anthony's visit to Arunachal Pradesh,as also the many visits of India's president etc...China refuses Visa to residents of Arunachal.
     THIS link proves that Arunachal Pradesh belongs to India.
THIS WIKIPEDIA LINK explains things in detail. An excerpt from the link above:-
"

Drawing of McMahon line

British map published in 1909 showing the Indo-Tibetan traditional border (eastern section on the top right)

In 1913-1914 representatives of China, Tibet and Britain negotiated a treaty in India: the Simla Accord.^[7] This treaty's objective was to define the borders between Inner and Outer Tibet as well as between Outer Tibet and British India. British administrator, Sir Henry McMahon, drew up the 550 miles (890 km) McMahon Line as the border between British India and Outer Tibet during the Simla Conference. The Tibetan and British representatives at the conference agreed to the line, which ceded Tawang and other Tibetan areas to the British Empire. The Chinese representative had no problems with the border between British India and Outer Tibet, however on the issue of the border between Outer Tibet and Inner Tibet the talks broke down. Thus, the Chinese representative refused to accept the agreement and walked out.^{[citation needed]} The Tibetan Government and British Government went ahead with the Simla Agreement and declared that the benefits of other articles of this treaty would not be bestowed on China as long as it stays out of the purview.^[8] The Chinese position was that Tibet was not independent from China, so Tibet could not have independently signed treaties, and per the Anglo-Chinese (1906) and Anglo-Russian (1907) conventions, any such agreement was invalid without Chinese assent.^[9]
Simla was initially rejected by the Government of India as incompatible with the 1907 Anglo-Russian Convention. However, this agreement (Anglo-Russian Convention) was renounced by Russia and Britain jointly in 1921. However, with the collapse of Chinese power in Tibet the line had no serious challenges as Tibet had signed the convention, therefore it was forgotten to the extent that no new maps were published until 1935, when civil service officer Olaf Caroe called attention to this issue. The Survey of India published a map showing the McMahon Line as the official boundary in 1937.^{[citation needed]} In 1938, the British finally published the Simla Convention as a bilateral accord two decades after the Simla Conference; in 1938 the Survey of India published a detailed map showing Tawang as part of NEFA. In 1944 Britain established administrations in the area, from Dirang Dzong in the west to Walong in the east. Tibet, however, altered its position on the McMahon Line in late 1947 when the Tibetan government wrote a note presented to the newly independent Indian Ministry of External Affairs laying claims to the Tibetan district (Tawang) south of the McMahon Line.^[10] The situation developed further as India became independent and the People's Republic of China was established in 1949. With the China poised to take over Tibet, India unilaterally declared the McMahon Line to be the boundary in November 1950, and forced the last remnants of Tibetan administration out of the Tawang area in 1951.^[11][12] The PRC has never recognized the McMahon Line, and claims Tawang on behalf of Tibetans.^[13] The 14th Dalai Lama, who led the Tibetan government from 1950 to 1959, was quoted in 2003 as saying that Tawang was "actually part of the Tibetan administration" before the Simla Accord.^[14] He clarified his position in 2008, saying that as far as Tibet was concerned "Tawang is part of India".^[14] According to the Dalai Lama, "In 1962 during the India-China war, the People's Liberation Army (PLA) already occupied all these areas (Arunachal Pradesh) but they announced a unilateral ceasefire and withdrew, accepting the current international boundary,^[15]".
Besides, as early as 1917, The Government of China had also published the “Postal map of China”, published at Peking in 1917. "It shows the whole northern Boundary of India more or less according to the traditional Indian alignments"^[16]."
To be continued......

NCTC Is For Converting India Into A Police State.

NCTC Is For Converting India Into A Police State.NCTC is on the line  of the DHS of the USA for ushering in the One World Totalitarian Government and which  has converted the USA into a Police State with Surveillance,Harassment and what not.Janet Napolitano[of DHS] and Leon  Paneta have been meeting Chidamabram who is from Harvard, a reported CIA front.India under the Indira Congress party is becoming a Police State and NCTC is but anther tool for ushering in  One Word Totalitarian Government of the Globalists of which MM Singh is one,being member,Club Of Rome.
    It is to be remembered,that Pakistan is the MAIN terror threat to India,but relations with it are mended,at the cost of the one with Iran,under US pressure.
   Both DHS and NCTC are certain things in common:-
1.Both blame the Majority of the nation[Christians in the USA and the Hindus in India],as either "home-grown" or "Saffron" terrorists.
2.Use Surveillance
3.Misuse of the so-called,'War On terror' with False Flags, is a sham.CIA is reported to be the most dangerous Terrorist along with Mossad and MI6,as they reportedly use "WAR OF TERROR".
8/1/2014:-
                   Now the RBI proposes Financial Inclusion[with simply having a bank account?!],for Surveillance.
To be continued......

The UN,Population,Food Shortage......

     The refrain of the UN regarding population,Food Shortage ,MDG etc are mala fide,as the UN and the League Of Nations were founded for forming One World Totalitarian Government.
     What's wrong with the UN?It is US[+UK+France].
     HIGH POPULATION IS ADVANTAGEOUS.
     In the case of League Of Nations  and Council On Foreign Relations Edaward Mandel House,a Marxist,took the initiative.

                                                                 E.M.House
     The following are  Globalist bodies intent on forming the One World Totalitarian Government.
1.Council On Foreign Relations
2.Bilderberg
3.Trilateral Commission
4.Skull And Bones
5.Club Of Rome[MM Singh and Gorbachev members.Considering what Gorbachev did to the erstwhile USSR and is doing to  the present day Russia,one should fear for India and her Sovereignty under MM Singh also.Already MM Singh's policies have put the POOR,Middle Class and Fixed-Income Groups of India in great financial misery as they are unable to make both ends meet due to HIGH Inflation and low value of the Rupee.
6. Committee Of 300
7.Aspen Institute
8.Chatham House
9.The Businessroundtable
10.UN and its carious bodies.
  The following people are reported to be Globalists whose aim is One World Totalitarian Government.
1.The Rothschilds
2.The Rockefellers
3. Henry Kissinger and other Bilderbergers and these are many like Hillary Clinton,Tony Blair etc.
     Ratan Tata is said t have relations with Bilderberg and is a strong Globalist as he is favoured in many alliances like the most recent one,Tata Coffee-Starbucks.
     Sunil Bharati Mittal,member Trilateral Commission,Asia-Pacific,is having connections with the Rothschild,the Carnegie Foundation,and like the latter and the Rockefeller,seems to be using the "Charity in Education"-route,to usurp power on behalf o the Globalist Oligarchs.
      Azim Prem Ji is a Rockefeller-Carnegie-Clone using their method of Charity in Education to usurp Power of the Indian Government.
      Nilekani Of the Aadhar is having connections with the Yale University,which is a reported front of the CIA and home to the dreaded Skull And Bones.
      Chidambaram and Kapil  Sibal are from the Harvard University,which is a reported front of the CIA.
In addition many are from the IMF and the World bank[Montek Singh Ahuliwalia,Pulok Chatterji,Secretary to the PMO].
   Narayanamurthy,formerly, of Infosys,is a member, Trilateral Commission,Asia-Pacific.
      Thus the Globalists have infiltrated India's Administration....
      The Globalist Bodies like the UN pretend to do good but actually try things with a view to ushering in One World Totalitarian government,by usurping power of nations and making them,lose Sovereignty.General the Head of the UN is a person "chosen" by the USA[and to a lesser extent UK and France].
       The failure of the UN in Iraq and Libya has made it a body of the three mentioned above,The trick used in Iraq and Libya is being repeated in Syria  and Iran,now,but Russia and China and to a lesser extent many other nations are opposing this.
       Thus the so called MDG of the UN is nothing but Agenda 21.
The WHO has been reported to have indulged in DEPOPULATION in the Third World including India.
        And, the UN's  rantings on HIGH Population,Food and water shortages etc, are mere LIES, pretending to do good for the World at large,but actually usurping Power for the formation of One World Totalitarian Government.
To be continued.......

The Devas Antrix Scam

The Devas-Antrix Scam.  The choice of the names will strike a sentimental chord with Indians,as Devas means Gods and Antrix means sky or Space.
   The CAG exposed this Sweetheart deal as the ONLY one to gain is Devas, wot NO bidding. Madeleine Albright,Deutsche Telecom and German Government are the other players.
  From the Indian side,MM Singh,DoS[under MM Singh],ISRO,Antrix are ones involved.MM Singh as in the 2 G Spectrum scam,simply keeps quiet for any queries even by the Deutsche Telecom and the German Government,at least in Public.

To be continued....

The Proposed Privatization Of Water.

The Proposed Privatization Of Water,has been a very strong demand by the MNCs,the World Bank and the IMF, which is reported to have created havoc in Bolivia,in this front.The Cochabamba Protests were against the MNCs getting involved in Bolivia's Infrastructure and Municipal Water.Under M M Singh and Ahuliwalia 2 former World Bank employees, the same things are being TRIED in India.
    An excerpt from the link above:-
"The Cochabamba protests of 2000, also known as the "Cochabamba Water Wars", were a series of protests that took place in Cochabamba, Bolivia's third largest city, between January 1999 and April 2000 in response to multinational participation in the infrastructure and management of the city's municipal water supply."
           In India also,Infrastructure and Water are eyed by the MNCs,the World bank and the IMF,with MM Singh trying to take a very HUGE Loan of $ 1 Trillion for Infrastructure.The lenders World bank and the IMF.What better[worse?] way to fall into the notorious Debt Trap set by[of], these two,International Banks!
       THIS is a very good rebuttal of the Policy proposed.
The points proposed are:-
1.Calls for privatisation of water-delivery services and suggests that water be priced so as to “fully recover” the costs of operation and administration of water-resources projects
COMMENT:-
                           Water is a natural life-giving and necessary resource like AIR.  Charging it is absurd.Will AIR we breath be charged in future?Is the UPA a Company [Oligarchy] without having any empathy, aiming to make money?If making money is its aim,why does it  tax the Citizens?
                           If so what is its answer for its HUGE corruption and the THREE HUGE Stimuli for the  Oligarchs,starting 2008/2009?In the last Budget the Oligarchs are reported to have been given a concession to the tune of Rs 4.6 Lakh Crores.[India's Total Budgeted Expenditure is ONLY about Rs 12 Lakh Crores].The UPA should FIRST STOP its mega-corruption,too.
2.Communities and the private sector should be encouraged to play this role. 
COMMENT:-
                    This is PPP,which ushers Oligarchy,in the Democratic Republic Of India.  
The Common Indian Citizens will suffer a lot under this system.
3.The proposals could mean sharp rises in the cost of water for both rural and urban users — an outcome the policy suggests will help curtail misuse of a precious but scarce resource.
COMMENT:-
                       Inflation is already high.This will be another huge burden as cost of living will be higher.
4.The draft policy calls for the abolition of all forms of water subsidies to the agricultural and domestic sectors, but says “subsidies and incentives” should be provided to private industry for recycling and reusing treated effluents.
COMMENT:-
                               Stopping subsidies to Agriculture will increase the Inflation and hence cost of living as Agricultural produce will become costly.Does the UPA want to DESTROY India's Agriculture?
                              Subsidies and incentives to Private Industry will result in FRAUD,as FALSE claims of producing and recycling "effluents" will be made.The NEED of the hour is REDUCING Effluent production itself.But the UPA seems to want to first produce a disease and find a cure for the same.THIS IS TRUE MM Singh-Globalists-tactic of CREATING a problem and coming out with a solution :-Deus ex machina.
                       MNC Soft-Drink makers should be asked to leave India as they consume huge amount of this precious resource.
                  Foreign Cos who have set up Industries here for CHEAP Labaur, and other precious resources like Water should be asked to LEAVE India.This will save Water,prevent Pollution and reduce,the so-called Carbon Emission.
                          In addition this seems to favour Industry over Agriculture,thus ushering in the US GMO Cos,by CREATING Food Shortage. 
5.To sustain Ground water India should exploit its vast coastal line by having Sea water Desalination Plants.




Conclusion:-
 1. The World Bank and the MNCs are repeating their trick in Bolivia,in 2000,in  Infrastructure and Water which was defeated by the people of Bolivia.Indians should also defeat this ABSURD and CRUEL policy with no empathy,with the World Bank aim of SLAVERY for the Indian Citizens,PPP, Privatization and profit for the MNCs.


2.To sustain Ground Water Level India should consider Sea Water Desalination Plants in her vast coast line.Other methods like rain-water harvesting etc should also  be used. 
3.Destroying Agriculture and favouring Industries is mainly for creating Food Shortage,thus ushering in the US GMO Cos.Increased cost of Agricultural produce will raise the Inflation and put the Indian Citizens to UNNECESSARY hardships.
          Private Industries should NOT be given any subsidies,especially at the cost of Agriculture,  as FRAUDULENT claims for producing and recycling "effluents" MAY be,  made.
          Minimum, "effluent" production,should be mandatory with penalties for higher and larger amounts of the same.
           Agriculture SHOULD be given TOP PRIORITY.Too much, Industrialization should be avoided.
4. MNC Soft-Drink makers should be asked to leave India as they consume huge amount of this precious resource.
          Foreign Cos who have set up Industries here, for CHEAP Labaur and other precious resources like Water should be asked to LEAVE India.This will save Water,prevent Pollution and reduce,the so-called Carbon Emission.
--------------------------------
Letter To the President Of India.

Your Excellency Madam President,
                                     Crores of pranams to you.May India prosper under your able Leadership.
                                     This is my third or fourth Grievance to you,thanks to  Ahuliwalia now.It is the proposed "Water policy".The Planning Commission seems to dance to the tunes of the World Bank.
                                     One is surprised that he thinks  the  Government to be a Company with no empathy for the Citizens. One will not be surprised if AIR is charged for breathing in the near future,at this rate.
               Please find my grievance regarding the Proposed Water Policy in the following link:-
http://veerar-analysis.blogspot.com/2012/01/proposed-privatization-of-water.html
               Please help the poor,middle class and the fixed-income groups of India from being subjected to high cost of living,Your Excellency.
Yours truly,


Your Request/Grievance is Registered Successfully!!
Your Request/Grievance Registration Number is : PRSEC/E/2012/00983
Note: Kindly note your Request Registration Number for further references                
                                      

Severe Cold In Andhra,Karnataka and Tamil Nadu 2011/2012 Winter

      Severe Cold is bring experienced In Andhra,Karnataka and Tamil Nadu 2011/2012 Winter[at the time of writing].Possible reasons,Geo-Engineering and two disasters,one Natural and the other man-made:-
1.The usage of Geo-Engineering[HAARP,Chemtrails etc] to enable about 50000  Japanese,who, may abandon Japan due to Fukushima, settle in South India. 
      The Tsunami and the consequent radiation from Fukushima [huge amount of "radioactivity" is being drained into the pacific,by Japan] may also,have "caused" a change in  the weather?
2.BP Gulf Of Mexico Oil Spill.It is worth remembering that Chile experienced SNOW soon after,which had not occurred there at all,till that time.
To be continued....