4 votes

Will India Implement The First "Executive Order 6102" Of The 21st Century?

Something strange has been happening in India in the last year: while the rest of the "developed" world has been doing all in its power to crush its currency in order to promote exports within a globalist mercantilist system suddenly gone haywire, India has had the opposite problem: with its economy slowing down even as rampant inflation persists, its currency has been sliding against all other currencies. But probably more importantly: plunging against gold, as can be seen on the chart enclosed.

It appears that finally after months of "being long of Gold in Indian Rupee terms" having proven to be quite a resilient and profitable strategy, the Indian state has also figured it out. And they are unhappy. Because to them, the key reason for the rupee weakness has nothing to do with the actual economy, and all to do with the Indian population trying to protect against currency debasement coupled with inflation: i.e., purchasing gold. And they will no longer allow it.

From The Business Standard of India

The Reserve Bank of India (RBI) is likely to clamp down on gold coin sales by banks, amid rising bullion imports adding pressure to the current account deficit and weakening the rupee.

http://www.zerohedge.com/news/will-india-implement-first-exe...




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Given that this is a country

where gold is bought for literally every occasion in the family, I doubt if purchasing gold will be controlled. There are literally no marriages without purchasing gold, so not sure if this thing is gonna go down as it is projected here.

It'll be interesting to see

It'll be interesting to see what India's RBI decides. While watching various currencies, I was always surprised how the Indian economy is growing (although at a slower rate) yet inflation and devaluation of the INR continues!

Any Indians reading...the RBI is not working in your favor! The RBI is clear proof that even if a central bank is nationalized, transparent, and not private (unlike the Federal Reserve)they all still do the same thing--devalue your money!

Central Banks: When

Central Banks: When governments figured out how to spend money they didn't have on things they cannot afford in an opaque process that protects and disguises the culprits, while simultaneously passing on the risk and consequences to the general public.

"The casualty of partisanship is objectivity."