UPA must have seen its life flashing before its eyes when the rupee began to plunge. They're still nervously biting their nails after Bernanke's temporary reprieve in not tapering the Fed's QE program just yet. They know the tsunami is coming, and has only been temporarily delayed by a quarter or two. Meanwhile, ratings agencies like Moody's and S&P are warning of a possible rating downgrade coming. Desperate to get the cash they need to stave off disaster, the pied pipers of the UPA are finally throwing themselves at the mercy of the international bond markets to raise capital:
http://www.reuters.com/article/2013/10/10/us-india-economy-bonds-idUSBRE9991AH20131010
In trying to buy extra time for themselves, the UPA are drastically sacrificing their future room to maneuver. Even if the Congressmen successfully pull their asses out of the fire with this today, the Left will be out of the business of crude populism for good. Because you can't integrate yourself into the global bond markets, and then try stunts like NREGA and Food Security Bill down the road - the bond markets will skewer you. On the one hand, this puts India increasingly in the grip of the international investment community, and gives them the power to pull the rug out from under India. On the other hand, it will force the Indian govt to put its fiscal house in order, even while keeping it afloat. I wonder why the commies and other far lefties aren't saying much about these moves by UPA. Where are Amartya Sen or those Fabian economists from JNU? They should be screaming their heads off by now, failing which they're consigning themselves to irrelevance. Even if the UPA manages to win a renewed lease on its political life because of moves like this, the Amartya Sens have now lost, and the Bhagwati realists are now ascendant. Future Indian govts will now come down to a choice between NDA or UPA, because any dalliances with 3rd fronts or other lefty dream teams will trigger swift retaliation from foreign bond-holders and their financial WMD.
1 comment:
It truly amazes me how even prominent businesspersons in India don't realize what is going on. The question we must all ask when trying to decipher Congress is "cui bono?" or for whose benefit? In order for the Madam of Orbassano to benefit her number one goal is to get Raul Vincci elected to PM. In order to do this, she HAS to destroy and blunt the power of Hindus. How will she do this? By targeting HINDU businesses. I have been talking to many businesspeople in India and outside of India and they all tell me that they feel that they are being targeted unless they openly endorse Raul. Anyone who invites NaMo gets invited with tax raids. This is open war on Hindus. Congress is not even hiding their feelings. Trust me they will steal the election. Look for major election frauds. They already have it figured out and paid for.
Post a Comment