26 Sep 2012

Manmohan Singh is the pied piper; don't follow him!

This video is titled: The most important video you will ever see - and it just might be true.

After you've watched the 9-minute clip, please read on...

In his speech to mark 65 years of India independence, Manmohan Singh, the (un-elected) Prime Minister of India, mysteriously declared: "If we do not increase the pace of the country's economic growth...it most certainly affects our national security."

Mr Manmohan Singh is practically calling for the "acceleration" of exponential growth! If you've watched the video above, you'll realise how deeply flawed this proposition is.

But Manmohan Singh's idea is MORE than flawed - it's completely preposterous! Because... India already had the second highest growth in FDI inflows in the world during 2011. In February 2012 (six months before Manmohan's chilling comment on Independence Day, August 15), India saw annual FDI growth of 74% - And just one month later, in March 2012, India recorded an eight-fold increase in FDI flow!

Manmohan Singh, an economist with multiple doctorates, is attempting to make a 'vertical straight line' out of an exponential 'curve'!

Given what we now know (pls watch the video) about the unsustainability of exponential growth - does anyone have any doubt that the Manmohan Singh is NOT talking about a long-term plan for India?

And by the way, the hike in diesel price to "save the oil marketing companies" is bunkum. Indian Oil Corp (IOC) reported a 224% jump in its January-March (2012) net profit. And Bharat Petroleum (BPCL) said its net profit nearly quadrupled in the same period!

Now let's get back to his Independence Day speech...

Although he did not elaborate on the rationale for equating "economic growth" with "national security" - I assume he meant the following possible sequence of events:

1. capital-flow barriers (for Wall St and City of London hustlers) leading to a sovereign debt rating downgrade (by Wall St and City of London hustlers) - a serious event given that India's is just ONE step above 'junk bond' rating

2. ensuing credit crunch (because of the high interest rate on loans to India or Indian companies) slowing down the economy

3. consequent drop in tax earnings leading to imposition of "austerity measures" - i.e slashed welfare spending and subsidies for the public, and "economic stimulus" - i.e easy money for the oligarch-investor class

4. resulting price inflation, unemployment (or low wage growth) creating the possibility of serious large-scale social unrest

We can see already this unfortunate sequence of events unfolding in Portugal, Spain and Greece right now. Only, India's population of young people would make any such 'unrest' take on really massive proportions!

Is the scenario I described above plausible? I don't know about you, but the Home Ministry of India seems to think so!

In March 2011, India's Home Ministry identified unemployed young people as a significant security "challenge" during a seminar conducted by the Indian Army's think-tank, Centre for Land Warfare Studies.

Did you notice too, the unfortunate combination of words that made up that sentence? "Unemployed young people", "security challenge" - and more alarmingly, "Indian Army" and "Land Warfare".

Is it significant that after 65 years of trying to keep the Indian Army well away from all but the most benign and ceremonial involvement on the domestic front (a valuable lesson learnt from the bitter experiences of our occasionally-democratic neighbours) - the civilian establishment is now discussing the country's internal security, economics and demographics with the military?

Of course, it is.

Sadly, it looks to me like India's rulers are goading and prodding a reluctant nation of over one billion people down a road whose unpleasant end-point they already know.

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