Interest Rates Vs Inflation conundrum

Government of India , RBI and Finance Ministry as well as leading economists are not in a position to curtail the spiralling inflation which has engulfed our country and has not been able to release its grips on the nation. Babus and so called corrupt enjoy and most important Money laundering is at its best in the name of white collar business , you might call it FII investments or a stock market operator who is able to manipulate the stock for his own gain or for the gain of the business owner.First of all have the Ministry of Finance, RBI and the Banks , leading financial institutions sat and discussed why the inflation cannot be tamed and still there is news that RBI , as usual always think of raising interest rates (so called SLR, CRR etc.) . Cant the Economists and RBI sit together and understand what can be done to tame the inflation without hurting the pocket of common man.

India is a great story for years to come and the World looks to India to deliver more than China and we are capable and can only beat China or any other country in enabling a sound economy which does not require help of other nation to boost up its reserves or Economy. We always have been humming story of FIIs and cant we count how many able businessmen and Billionaires, Millionaires we have in India. Why not they come up with a common fund to tackle Inflation and sit together with RBI , Finance ministry to help them tide over the inflation conundrum.
Interest Rates are hiked and withdrawn at will and there is no lessons learnt nor there has been any study why the supply and demand are not in equilibrium especially with Money float. Crude has and is at its low and has not spiralled and when crude soared , we talked about interest rates coming down and now when the inflation is inching towards 20%, the babus neither in the Finance Ministry, RBI or Banks have sat to understand the Problem and each of them have leveraged this situation to their advantage and this in turn affects common man who has to accept whatever the burden he has been asked to carry.

When we have IT superpower why cant we become Economic Superpower , the prime factor is the so called Wealth has not distributed evenly and the Rich always want to earn more and the Poor always looked up to the rich to help them. Why not the Businessmen , RBI and Finance Ministry create a Mutual Fund wherein they pool in Funds from Businessmen, Politicians and bring money launderers or white collar hoarders of Money in Swiss Banks in to a fund and it can be pooled in the economy or can be used to address huge fiscal deficit .

Every time we have reasons to point fingers at others rather than owning the mistakes and last but least look upon begging to USA or FIIs and expecting as though without USA, India Markets cant run and everything will collapse.

Why not we turn our heads and embrace nations like Brazil, Russia and we can turn to Russia and let them know we can turn around Russia and make it a Super Power as it was once and in turn Russia will pay or help us to empower us with Nuclear facilities or take best practices out of Brazil industries and replicate them in India. Last unless babus and businessmen , Banks start thinking why the Rich spends lavishly and Politicians launder money at will and make coffers empty and fool people by giving multiple reasons starting from "We are expecting China to invest or US to invest" . The Self reliability factor is needed rather than begging or anticipating that some influential country will make us achieve a stable economy.

RBI needs to act decisively with a agenda to keep the common man happy and also track the inflation path with adequate risk management. Tame the inflation tiger and give way to new ways to tackle them effectively.

I will update you loyal readers of my blog on Inflation situation and get ready for my next blog post on Gold and Recession.