RBI, Government, Inflation and Price Rise

While it is quite clear that the only plausible reason for ever increasing price rise is the printing press that is being controlled by the RBI through which it keeps creating new money out of thin air, the Government and the RBI governor keep offering ridiculously insane excuses to shun away from their defaults. The basic reason behind price rise is the inflationary policy of Indian government and RBI as both of them work in collusion.

To help those banks and to finance for some extremely ridiculous socialist populist policies of government, such as education for all, healthcare for all, food for all etc. ((How India is Becoming a Totalitarian State, a Brave New World)),  the RBI kept pushing new money in Indian economy. The result was obvious, inflation kept creeping up while our Prime Minister of UPA government Mr. Manmohan Singh kept promising that prices of commodities and food articles will come down within next six months. He is Keynesian economist and it’s not like Mr. Manmohan Singh doesn’t know the real cause of price rise, he is intelligent enough to understand the basic flaws of Keynesian economics well. It doesn't take an Eisnstien's brain to understand the Broken Window Fallacy. So, while the MNREGA and other similar forced employment provision policies by government encourages rural people to break windows and recreate them, or dig holes and refill them to attain governmental aid in form of salaries, politicians like Beni Prasad Verma feels happy that prices of food items are going high, as now farmers can earn more.

Now when the government and RBI have *literally* accepted that they can't do anything to reduce price rises (as the dragon of inflation has already been driven out of the closet in the streets), the politicians and the Governor or Reserve Bank of India are offering ridiculous excuses for the extreme price rises.

I have explained the basic reason behind price rise and economic crisis in India ((Explaining Indian Economic Crisis)), while the government is yet to affirm that Indian economy is on a downtrodden road. I also have clearly explained the fundamental difference between inflation (the cause) and price rise (the result) ((Reason Behind Indian Inflation)). However, governmental economists, including the Governor of RBI, Mr. Subbrao are yet to learn the difference between inflation and price rise. In addition, the Indian government, Indian corporate, and Indian banks are conspiring to ease out the way of further increasing inflation. It should be noted that Keynesian economists historically offer more poison as the cure for the poison they already have created. This is the reason why there is no difference between an economically illiterate Beni Prasad Verma and well educated Keynesian Prime Minister Manmohan Singh, or Governor of RBI Mr. D Subbarao who, recently, made an excellent Keynesian excuse against the complains of ever mounting price rise in food and commodity sector. According to D. Subbarao, the income of rural Indians and poor people are increasing and hence they are eating more, eating better and this is the main reason for the increasing price rises of food articles ((There's a small satire over this statement by D. Subbarao, RBI Governor's Request to End Malnutrition Campaign))

It should be noted that in 2007, just before accepting the enormous economic crisis, the former President of the United States, George W. Bush also claimed that the cause of “inflation” in food articles in the US is the fact that the poor people in Asian countries are now eating more, eating better. So, Bush can sue D. Subbarao for copying his “idea” about price rise of food articles. However, neither Bush, nor D. Subbarao understand the basic economic fact that inflation is not price rise, rather it is the cause of price rise and inflation is not caused by people eating more, inflation is caused by government and central banks, printing more money out of thin air.

What could be the Reasons Behind These Ridiculous Excuses for Price Rise?

The major reason behind such dumb excuses is that while these Keynesian crooks know their crimes, they also know that Indian populace in general is yet not aware of the economic facts and can take the false pill that suggests that price rise is prosperity, war is peace, truth is false and black is white.

It is a known fact that Indian GDP is continuously decreasing and the reason behind this is the inflationary policy of government that triggered the boom and bust cycle in Indian economy. During the boom time, Congress enjoyed the credit for higher GDP, now when the false growth rate and forced maladjustment in economy are causing problems, the government has no way but to infuse more false money to keep on their false propaganda of economic reforms. This is necessary to fool Indian public again so that the UPA may again try to grab the ruling power. Obviously, this is all about grabbing the ruling power on innocent shepherds of India. This is why Finance Minister P. Chidambaram is trying hard to convince corporate and banks to continue those 215 projects that have been stalled because of the fact that there is no real savings for expanding the production structure of India. This is the reason why there are 126 more such projects for which the Indian banks have already offered loans, but the entrepreneurs are not interested in taking risk of wasting those loans by starting those projects. And this is the exact reason why Indian Banks are demanding free hand to create credit expansion, which in turn will increase inflation or may be hyperinflation, which will cause extreme price rise while ddestroying the basic threads of Indian economy and these crooks will continue offering ridiculous excuses ((The Fradulent Mix of Government, Corporate and State Bank of India)) .

These Keynesian crooks strictly want entrepreneurs to gamble on the loans, however, entrepreneurs realize that the Indian society yet not have increased their voluntary savings enough to continue major projects that could expand the production process and hence, the whole economic structure of India. This, in fact is the phase where businessmen have realized that there is no real money and all that money which is being offered by government and banks is fake, printed money with no backing of real voulntary savings and such money can only cause an increase in price rises, which will also increases the expenses of entrepreneurs and businessmen and will cause extreme losses for them. 

However, with all these bailouts and forced enthusiasm, the government will succeed in causing more maladjustment and economic blunders and what will be the result? An extreme economic crisis in India is awaiting to write history. However, as someone said, Systems have to crumble before they can be rebuilt differently.