Tollé sur la hausse du Key Repo Rate !

There is now an outcry from all quarters !

May be , a bit too late !

We are sorry that we have to say it , for some of our journalists , bloggers, analysts, economists, trade unionists and the then supporters of the unconventional financing measures taken by Govt and BoM during Covid and post-Covid , when we we needed your support , they were found lacking !

We are sorry to be so crude about it as we were among the first to denounce the recourse to helicopter money and the Rs 60 billion posted as revenue of Govt . How many of you came out openly to support us ?

Didn’t we warn you , that once they have dipped into BoM Special Reserve Fund, you guess how its future replenishment will be made ? -by more of rupee depreciation !

Didn’t we also warn you about the amendments to the BoM's legislations for the Central Bank to become a “planche à billets” for Govt -to what an informed economist- P.Kugan- had labelled as Govt's ATM. In my article “Financing the rebooting of the economy”, published in the "Weekly", I had alerted our readers to the fact that the sudden tumult about helicopter money seemed to have been pre-planned by sending some hand-picked economists (who are constantly being interviewed by the pro-Govt Radio and press to convince doubters on helicopter money) to the frontlines to prepare the grounds in favour of CB's special efforts to buttress the economy via helicopter money.

Many of you did not understand or believe us when we warned you that they wanted to prepare and manipulate public opinion on helicopter money , And with the amendments to the BoM Act , they were ensuring that BoM's financing will not impact on public debt and will thus hide their economic irresponsibility. But we WARNED YOU to watch out on the DEPRECIATION OF THE RUPEE.

The monetary deficit financing was already impacting on the economy in terms of an accelerated depreciation of the rupee , adding to inflationary pressures besides un-anchoring inflationary expectations. Our currency ,over the past 3 years, was losing some 20% of its dollar value, eating away at our buying power. It’s like we have given a gambling addict the keys to the casino and we are paying the price today.

We are having now to meet the cost of these irresponsible policies that have caused inflation to rear its head again and we have vitiated and incapacitated the very tools needed to avoid entrenching inflation.

Supply deficiencies in China arising from the covid-led slowdown plus the demographic factor are likely to fuel global inflation. More interest pains ahead!

They have ruined the economy . Some have already dared to coin out the following: " we had le père du Miracle Economique now we have le père de la Faillite Economique"

We reap what we sow !