In an extreme show of brinksmanship..India has been taken for a ride by speculators and brought back in an equally unorthodox fashion. Depending on the moolah you get from your editor and or Academic Dean or the strength of the victuals of your audience and that of your economics philosophy, the average high end Economist could turn this review into a one a month policy piece. Any number of breaks can be introduced in the sentence we started with to fill the essay, Ajay Shah for example saying (TV18) “none of it was required” and again falling through the cracks of mainstream and outliers alike among Economists. In any other normal Economic critique of philosophy, one would have added a qualifier “likeminded” before Economists here.
(sic!) Thence we avoid the other tricks of the trade to assume a daily weight to each day’s weights and wait to lookback on this month in a decade and hopefully for that our parsimonious allocation of just a Morning report time-length shall justify the deeper review whenever we do return to full time writing. Right now, Economic necessity of this individual calls.
And in that light, The Rupee hit 64, yields hit 9.5% and like a rubber band returned to pre-crisis yields of below 9% yesterday itself and 8.33% today showing trades have returned to the 10 year bond. Active Demand returning to Fixed Income of course means the Rupee move is a goner and thus one should assume, we will remain at these 63 levels for years to come before the next deep cut moves the currency related victuals of the Economy by double digits again. Incompetency of Exports apart, that takes care of India Inc’s static export volume issues on keel , the government has managed to turn the trick with Government spending too, focusing on the growth in Services in Q2, ET reminding us in time in today’s op-ed pages inside
Another funny one has been the markets stuck up attitude toward, India has FX reserves, it should use it’ almost like a mouse trap the NSEL was, (for unaccounted cash in wholesale transactions). Money stock has largely returned to the mainstream economy through Financial devices alone and it is hardly a coordinated supercomputer timed perfect metamorphosing of the India problem and its solution.
The markets can in the meantime thankfully return to investing in banks, PSU banks likely to score on their 20% of book(Advances) in homeloans. BTW, Rajan is silent because he takes reins formally in September. The King Chidambaram and President Pranab in the meantime look askance at the sharp turn because it does no bring in a single dollar inflow. imagine the glee of reformer in queue Narendra Modi and his ilk
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2. A political, ethnic, or ancestral division of ancient states and cultures, especially:
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