Bulls, bears and the Animal Farm that is India

M.J. Akbar in Khaleej Times:

“Who says no one listens to Dr Manmohan Singh? The bears do. Ever since the Prime Minister of India ordered Indians to release their animal instincts, the bears have started a carnival on Dalal Street.

“Maybe the instructions of our first economist-PM got mislaid in translation. He surely wanted bulls to march across Mumbai, conquering every stock exchange in an exhilarating stampede. Instead, horrible little bears arose from long hibernation, and turned into a wrecking crew that has left the economy gasping and government choked.

“In the meantime, picking up on another variation of the animal theme, the Indian rupee has turned into a truant chimpanzee, sliding down with pathetic glee and jumping up with an occasional wheeze, but quite certain that its destination is downhill.

“If the great Indian animal farm of 2013 seems out of control, it is because the keepers have lost the map as well as the plot. The economy is only one casualty of self-generated mayhem. The political stability of India is equally a shambles.”

Read the full article: Indian farm

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4 Responses to “Bulls, bears and the Animal Farm that is India”

  1. Shemej Says:

    What we are witnessing across the globe, over the last couple of decade is something strange. The whole wealth of the world is now under the control of some 5000 conglomerates. (Please Read under the subtitle “From One Long Crisis to Another” – and more importantly under “Behind the Financial Crisis: A Systemic Crisis of the Capitalism of Oligopolies” http://monthlyreview.org/2009/12/01/seize-the-crisis – Samir Amin) They have huge surplus in their hand. They can not invest this money anywhere in the world. They are not ready to invest and wait for another half century to get the return. They are only interested in multiplying their profit.

    As a result of this something very funny has happened. What is described as “fast growth” is nothing but the excercise of mulitplying the profit of fianancial capital.

    Big Conglomerates are coming with their financial capital looking for quick and huge profit. They look where they get maximum profit in a very short span of time.

    If it is Indian stock exchange then they invest it for a few months or few years, reap huge profit and run away.

    if it is Chinese stock exchange, then they make money and run away.

    If none of the stock exchanges are performing good, then they invest in gold and make quick profit and when they find better avenues they withdraw and run away

    If Dollar is appreciating, then they invest in Dollar and make quick profit.

    If Petroleum speculative gambling gives more profit then they invest there and make quick money.

    But most of these financial capital groups do not want to invest in any long term business, simply because it takes years, or decades to get good return. And the market condition, globally is fluid and going through uncertainity. The policy makers are not blindly following a “Globalization Mantra”, but they are all paid to say these repeatedly to misguide the public. Manmohan Singh, Montesingh all were either IMF/World Bank employees or working in their line.

    In the study of World Bank Michael Goldman explains how the WorldBank is not just a financing Bank, but the worlds’ number one Information Source. World Bank spread the same lies repeatedly and almost all the experts in the world actually repeat what World Bank spread using its thousands of channels. Almost 90% of what is quoted (including that by the World Bank critic) are actually the original propaganda of World Bank itself.

    This is what is called manufactuing consent– or to put it differently, manufacturing opinions.

    When India build its business model only aiming to be a Satellite economy of USA, there is no wonder, India can not progress when other poorer countries offer the same thing to USA at a cheaper rate.

    The only alternative is that India should develop its internal market. That can happen only if

    a) the purchasing power of Indians should be strengthened. For that this country should ensure decent income to its youth. Export oriented IT/ BT/ BPO industry has given jobs only to 1.5% (less than 2%) of the population even during its prime time. It can not ensure decent income for the nearly 100 crore people living in Agriculture economy. Implement land reforms strictly. See the difference between Koppal and South Canara to see the benefit of land reforms.

    b) India should invest on research and development. India should not give emphasis to IT and BPO. But young minds should be attracted to fundamental research. What suffered most by the IT boom in India is scholarship.

    c) India should invest on Infrastructure.

    d) India should strengthen the Public Sector. And Implement strict laws to give severe punishment to those corrupt officials and ministers.

    d) Agriculture should be strengthened.

    e) Agri-based manufacturing should be India’s future.

  2. Jayashree Prasad Says:

    This is what Chidambaram said in parliament to day!

    “My plea is that despite our differences can we list out measures to bring back our economy to what it was in 2004,” Mr Chidambaram said, praising the growth that began under the BJP-led National Democratic Alliance or NDA. The minister was replying to a debate on the economy in the Lok Sabha, which saw opposition leaders rip apart the government and him for the inability to stem the rupee slide or contain the fiscal and current account deficits.”
    Realization too late, can still stop the food bill, which was put up to please his boss.

  3. Shemej Says:

    “It is not clear if the devaluation comes from a weakening economy, or the other way around. “What goes first? The bad growth projection or the devaluation?” wondered analyst Miguel Boggiano to Spanish newspaper El País. “I am tempted to think that it is the devaluation that impacts the economy.”


    “Brazil’s central bank has announced a $60bn plan to prop up the value of the national currency.”– BBC, 23rd August.

    Do you think, India govt introducing “Food Security Bill” to please Sonia Gandhi(?) is the reason for the depreciation of Brazil currency “Real”?

    Why cant be consider another possibility?

    Manmohan Singh, Chidambaram, Vajpayee, Yeshwant Sinha all were just sitting on the ministers’ chair and just signing where the bureaucrats ask them to sign. They dont play any serious role in the boom or the burst of the economy. I dont blame these “small fry” for the depreciation of the Indian Rupee now. I have a feeling that they just read newspaper or watch TV and wonder what is happening to the economy just like the masses. (Sure, they get hint in advance and withdraw their private funds and re-invest elsewhere.)

    Why I dont blame these “small fry” for the failure of the economy? Simple, I dont think they ever played any role in the boom that happened earlier.

    What possible connection Brazil economy has with Manmohan Singh introduces that bill or this bill? Or when Sonia Gandhi goes to hospital or when Narendra Modi goes to toilet? These are all irrelevant factors.

    What is happening is the “game of financial capital”. Huge amount of fund (can you imagine a fund that can buy all industries in India or buy all food for the entire world?- it is such a huge fund). This fund is being withdrawn from one area and re-invested in another area. This is a big game. (bond market, invest in dollars, venture capital, financing, stock investment, gold investment and so on)

    If you are mesmerized by the magic of Neo-Liberalization and stock market booms. Good luck!

    But I can tell you all good friends: “In the long run, it will be these admirers of the Neo-liberal economy who will lose more during recession (as they gain more during booms). And it will be the critics of the neo-liberal economy, who will safeguard their own pocket and will be better off, in the long run.

    Do you want to bet on it? (you can argue that, the admirers of neo-liberalism will make more money during booms. Yes, it is true. In general those who participate in market games will be those among these admirers of Neo-liberal policies. But remember, in general, people lose more during recession, than what they gain during booms. Why? The beneficiearies are Institutional investors, who has access to all types of inside secrets. And they wont lose much, because they will jump out of the ship before it sinks.

    A simple question, when people gain or lose in stock exchange, own business, where do you think money goes? Money doesnt evaporate. It goes from one pocket to another. If some one makes huge gains during booms, some one has to make huge losses. Think.)

    If somebody’s mother gets “hucchu” , it is nice to watch. I want all our Churumuri friends supporting Neo-Liberalism, supporting BJP and Narendra Modi, to lose all their wealth. And that day I will be the richest person in Churumuri, if not in Karnataka. Thank you friends ….

  4. Vinay Says:


    Define “neo liberalism”.

    Most people here want good growth, a free economy, and a move away from shitty socialist policies that hobbled our country for decades.

    Is this “neo-liberalism” as per your definition? What is?

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