From India struggles to balance its books as citizens lust for gold – The Washington Post | 2012-05-18 19-55-55 |
Are purchases of gold by Indian consumers an international problem?
Washington (Post) teams thinks so.
Washington (Post) thinks it is in the same league as the Greek economy; elections in Egypt or the breakdown of the State in Pakistan’s frontier areas. (See graphic above).
Let’s understand this ‘issue’ better!
In India, the world’s biggest annual bullion importer, gold jewelry plays a central role in weddings and festivals. India imported 933 metric tons of gold for private consumers last year, a 35 percent rise over five years and just under a quarter of global demand, according to the World Gold Council.
Indian households’ disposable incomes grew by 13 percent during the 2010-11 financial year, but the amount in their bank accounts rose by only 3 percent, according to official data.
High inflation often renders the idea of financial savings unappealing, and many people in rural areas lack access to banks.
India is struggling to balance its books partly because its citizens keep buying gold. The country’s current account, the difference between the value of its imports and exports of goods, services and financial-transfer payments, is running at a deficit of about 4 percent, largely because of high import bills for oil and gold — India bought 969 metric tons of bullion last year at an overall cost of $48 billion.
The lack of money in Indian bank accounts forces the government and private companies to borrow abroad, pushing the country further into the red.
“You’re not looking at something sustainable. The balance of payments becomes very skewed,”
The International Monetary Fund predicts that India’s economy will grow by 6.9 percent this year, a significant drop from the double-digit rates touched in recent years.
India’s government has been trying to exert some control this spring. (via India struggles to balance its books as citizens lust for gold – The Washington Post).
How India’s gold buying affects the world
Has crime rate in India gone up in India to fund gold consumption.
India has low crime rates; lowest imprisonment ratios, a small police force – despite a huge number of unlicensed firearms, with really poor people.
Is the Indian Government likely to renege on its debt obligation? India has not in its history defaulted on sovereign debt.
Have Indian consumers borrowed large amounts and likely to default on their obligations to international lenders? Indians consumer debt is contracted locally – and hence Washington (Post) has no cause for worry.
Are Indians causing international flare-ups to fulfill their ‘lust for gold’?
Have Indians annihilating people?
Like the British did with Australian aborigines? Or the Spanish and European migrants did to Native Americans in North and South America? Or committed gross human rights violations like the Belgian king in Congo? Have Indians enslaved millions or invaded other countries – like Europe did in the Scramble for Africa?
Answer – None of the above.
James Gillray, a leading caricaturist in 1797, in his print Midas, published after Bank Restriction Act came into force. Prime Minister William Pitt the Younger (28 May 1759 – 23 January 1806) is using the Bank of England as a commode. From both his rear end and his mouth Pitt is showering the English people with new currency notes that also are in his paper crown. | Image source – rc.umd.edu. | Click for a larger scan.
Call this lust …
Lust – meaning.
Usually the words associated with lust are
deadly sin, mortal sin, craving, appetite, or great desire, desire, longing, passion, appetite, craving, greed, thirst, cupidity, covetousness, crave, yearn for, covet
After paying international prices, can there be covetousness, cupidity, deadly sin, mortal sin? The Japanese save money in pension funds; Americans buy gilt-bonds and shares, British savers buy shares and put money in insurance and mutual funds.
Indians buy gold.
How can retail buying of gold by small people be described as lust. Most families in India have less than 100 gm of gold. Is that craving, longing, passion, greed, cupidity?
Would you call Indians lustful, if they do not wish to undergo the fate of the British people?
War by other means
This portrayal of the Indian consumer as sinner smacks of aggressive intent.
First demonize and then annihilate. It is not as though the Indian Government is cornering the gold market – and trying to destabilize the world currency system – ramshackle as it is.
So why this attempt to demonize the Indian consumer?
If this is causing a trade imbalance, does Washington (Post) demonize American consumers – for their oil consumption, for their garbage generation? For creating a housing bubble and credit balloon which burst – causing global misery. For running a a 100-year old trade imbalance, that has only been reversed, when the US used war materiel production to enhance economic activity.
So, if crime is not the issue, default is unlikely, why are these dem fine White folks so worried about us Injuns?
On a clear day
Ahh! I get it.
It must be the Washington (Post) acting in Christian spirit of being their Injun Brother’s keeper. They are trying to save us Injun’s from ourselves.
We stoo-pid, silly Injuns.
Why can’t we take advice from Washington (Post)?