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Tuesday, March 8, 2011

Fake currency issue raised in Rajya Sabha by Tarun Vijay (BJP) PTI 8th March 2011

Tarun Vijay said Pakistan has let loose economic terrorism on India by helping those involved in fake currency circulation. Noting that there has been 250 per cent increase in counterfeit currencies in the country, he said terrorist forces were being strengthened by these operations. He said according to intelligence report an official printing press in Baluchistan was being used for printing of fake notes, which were routed to India via Nepal by the terrorist networks including LeT. Vijay said India should take up the issue with Pakistan.


Amitabh Pandey said...

Fake currency from Pakistan is an issue but what about our own govt and central bank indulged in creating a flood of money in the economy by way of quantitative easing and fractional reserve system.

Please read: Growth of paper money is not the growth of economy.

Also see what is Quantitative easing and fractional reserve system.

Our govt believes in the Charvak Sidhhanta of "ऋणं कृत्वा घृतं पिबेत यावत जीवन सुखं भवेत" .

Remember, Debt financed prosperity is always at the cost of future pains.

Please also understand that gold standard has collapsed on 15th Aug 1971 when Richard Nixon has announced Americas withdrawal from Brettonwood system thereby collapsing it. Since then this system of fiat currencies came into existance where govt and central banks prints as much as they like to meet govt unreasonable and irresponsible heavy expenses which results in compundingly growing debt.

Principals of public finance are no different than the principals of private finance. But western economic system which believes otherwise and which we inherited after our independence is exploitative to its core.

No wonder why govt today believe that आमदनी अठन्नि खर्चा रुपय्या makes a nation wealthy. It on the contrary creates Soverign debt crisis as we saw in Greece, Ireland, Italy, Portugal, Spain and which we are now going to witness in UK, US and India.

I am not an astrologer but still predicts.
1. Inflationary nightmare is awaiting us. Inflation will be constantly higher and will become unmanageable, finally forcing the GDP to fell like a stone.
2. US dollar will collapse as most currencies including that of India.
3. Gold and Silver will become the defacto currency of international transactions because they can not be printed recklessely.
4. Global economic system will collapse before the new world order emerges.

Amitabh Pandey said...

It is not prices of commodities going up but value of currency going down. because govt is printing money at compounded rate and that results in too much money chasing too few goods.

Service sector no matter how much essential do not produce but only consumes. Its existence is made possible only by producing class. If this class is exploited and discouraged then supplies will always be less. Then no matter how much money is printed by the govt and distributed as salaries to people whose contribution to the real wealth of the economy is nill, our country will continue to be poor. Paper money is not real wealth but it represents it. Real wealth is production of commodities which are consumed and which are the ultimate objective of paper money.