India: The Government Comedy skit at W.E.F.

Wednesday, November 19, 2008

Yet again, the government shows its confusion and complete disregard for reality...privately, officials admit the government is only thinking of elections..this is not good news.
FM says inflation is too high and we cannot cut rates:

The minister said it would be "helpful" if domestic interest rates came down further but authorities could not take their eyes off inflation as it had not been "completely licked" (Economic Times)
Deputy Chairman of the Planning commission disagrees:
Deputy Chairman of Planning Commission Dr Montek Singh Ahluwalia has said that inflation is not a problem in India currently (Economic Times)
FM and Deputy Chairman say 2009-2010 GDP growth will be better than 2008-2009
He said that all indications are that the GDP growth in India in 2009-10 would be better than in 2008-09: Deputy Chairman
"We'll bounce back... we'll be back to a high growth rate (of nine per cent) in the second half of the financial year 2009/10": Finance Minister
Comments from those in the audience:
"There's an unwillingness to admit reality," Percy Mistry, chairman of Oxford International Finance said adding he did not expect any upturn until early 2011
However, observers were skeptical, suggesting he was talking up the growth prospects of Asia's third-largest economy with the Congress-led government facing general elections by May 2009
So the Government has the bases covered:  Inflation is a problem, inflation is not a problem, rates should be cut, rates cannot be cut, and the economy is going to the MOON because...and this is the best:
"A large part of the Indian economy relies on a whole different paradigm than what the rest of the world relies on," he said. (ICICI Bank's Kamath)
"Even if it gets worse globally, it will not have a catastrophic effect."
We have de-coupled...AGAIN....please stop....all these statements at the 'World Economic Forum'....the Economic Times must be reporting the Roast not the actual official speeches.   Indian finance guys are not alone though...Read this: The 11 blunders of Hank Paulson

More nonsense from the FM:
"The G20 has come to stay as the single most important forum to address the single most important issues of the world," said Indian Finance Minister P. Chidambaram (Economic Times)
Lead advisor to President-elect Obama said:
 Mr Volcker rather dismissed the G20 as a talking shop. "I don't think we're going to manage this crisis by getting 20 heads of state together every three months" (Financial Times)

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