As goods and services require more money to purchase, the implicit value of that money falls. The Federal Reserve uses core inflation data, which excludes volatile industries such as food and energy prices. External factors can influence prices on these types of goods, which does not necessarily reflect the overall rate of inflation.
Imagine you are building a power plant or constructing a high-rise building say in Mumbai. How long will it take to get all the approvals? You will need approval of 20—25 departments, and you may not even have heard of some of them. This brute power to wreak havoc in lives of citizens is the one of the root causes of corruption in India.
Let us dig deeper. Our red tape ridden government machinery has evolved from the Licence Permit Raj, a monstrous life sucking machine, even if well intentioned. Here is how it works. If you need anything done, you need approval from every department on the planet, even if the relevance maybe in one in a million cases.
Revenue, fire-force, police, pollution control, environment… the list goes on. Everyone has to say yes. And they can take as much time as they want. Since there are so many laws and rules, a babu can block things for hundred different reasons.
Nobody is fully sure about things. See below a report in Wall Street Journal, where we are top of the charts in red tape. Here is an example: Now, say you need approval from 20 government departments. In each department, say 5 people go through your file.
While none of them can say yes, each can put an obstacle. So you are facing guys who can stop your dream project. Unless each of those guys is sensible and honest, your approval is in trouble. And trust me, you will be in trouble. I will give you an example. In I was SP Security and I came across a file in which a resort owner had asked for permission of use of wireless walkie-talkie for coordination among staff in a resort near Kerala-Tamil Nadu border.
Our Special Branch head-constable reported that there may be LTTE sympathisers in that area who could snatch the walkie-talkie sets and use it for illegal purposes.
By this logic, no technology can be used by anyone since everything can be misused. This file was stuck for years because of this. In short, everybody can block you.
So nothing moves, unless you pay up. Even lower down, there is a mix of honest and corrupt guys. But even an honest officer will not be able to stop others from corrupt activities, when so much negative power is vested in them.
We have a deadwood of a system. Why are our corruption scandals typically — times larger than than those in rich countries like US, France, or Israel? What is the scandal involving Israeli PM and his wife? And that is for ordering free food! You will get beaten up if you offer such minuscule bribe to even a low level political functionary in India.
Such massive corruption is not possible without blessings and support of the political class at the top. Why is the political class so corrupt? Is it just bad people? No, there are deeper reasons. Political parties need money to operate.
And that money has to come from somewhere. Let us say a party organizes a dharna or rally for which 10, people have to be brought.Bitcoin Aud Exchange Rate On the other side of the coin, rapidly of an appreciation establishes a country for inflation, or a growth in the retail value of products sold to potential fans and patrons based on currency survey.
While inflation is restricted by occur, it could possibly be minimally tempered using the use with the currency value. Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
Mr. Michael Pento serves as the President and founder of Pento Portfolio Strategies. He is a well-established specialist in the Austrian School of economics and a regular guest on CNBC, Bloomberg, FOX Business News and other national media outlets.
INFLATION-CAUSES & OPTIONS Rising inflation is one of the biggest stories of recent weeks and has received a great deal of attention from the media and political parties - Inflation in India- Causes and Options Essay introduction. At the same time inflation is an economic problem that the average person meets on a daily basis in terms of higher prices particularly of food products.
Gold Rate in India.
India is the largest consumer of gold in the world, accounting for almost a quarter of the world’s total consumption. It has, since long, maintained this position and, unlike countries like China, India uses gold primarily in the form of jewelry and investments.
This is the group discussion on "Women Empowerment - A Cause for Increasing Divorce Rate in India".