HOME 2019-10-19T13:34:11+00:00

CONTRACT  WITH  INDIA

…our mission is to make India great by developing and promoting policies based on the principles of limited government, free markets, individual freedom and rights, equality of justice and individual responsibility…

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13thNov, 18

RBI’s INDEPENDENCE AT STAKE

The Ministry of Finance and the Reserve Bank of India (RBI) are engaged in a dangerous game of chicken. Game theory tells us that "winning" or playing such a game to its conclusion is not in the best interest of either player. The consequences will be devastating for the country’s shaky banking system and credit and equity markets. There are three main issues of contention between the government and the [...]

1stOct, 18

VALUE DESTRUCTION IN STATE RUN BANKS

Who pays when you make a mistake? You do. Who pays when the government makes a mistake? Yes, Still you…..Anonymous In a bizarre move the government, which controls seventy per cent of all bank assets in India through state-controlled banks, decided to merge three banks into a larger entity. Two smaller banks, Vijaya Bank and Dena Bank, were combined with a larger bank, the Bank of Baroda. Each of these [...]

16thAug, 18

PEOPLE’S FIGHT AGAINST GOVT. CORRUPTION

There is an important and growing trend in democracies around the world. Public outrage over governmental corruption is toppling more and more leaders. In the last six months alone, leaders from Malaysia, Spain, South Africa, Armenia, Peru, and Slovakia have been forced to resign on charges related to corruption. In the past five years, more than 10 per cent of countries in the world have experienced leadership changes related to [...]

8thAug, 18

INDIA’S LOST DECADE

Countries pass through stages on the road to economic prosperity. Economist W.W.Rostow postulated five such stages of economic development: the traditional society, pre-take-off, take -off, drive-to-maturity, and period of mass consumption. The year 1991 was a watershed point in India’s economic history. It marked a distinct move away from socialist economic policies and an embracing of economic freedom and free-market policies. As a result, the economy started to grow, slowly [...]

1stAug, 18

INDIA’S ATLAS SHRUGGED

It is estimated that since 2014 about 23,000 millionaires have left India to settle in other countries (Morgan Stanley). The vast majority of them weren't tax evaders or bank looters running away from the law. They were the risk takers, wealth creators and employment generators that built this country's industry. And despite all the falsehood about increasing inequality, these people were the pioneers of the new aspirational India. These were [...]

22ndJul, 18

TIME TO SELL STOCKS?

In an article dated May 31st, 2017, I wrote that the Indian stock market had room to run on the upside and that a 20% increase over the next two years was highly probable. I mentioned two things that would bring an end to this bull run: a declining currency, and disappearing liquidity. Since that writing the market has gone up around 19.5 %, the rupee has dropped to reach an [...]

12thJul, 18

WATERING DOWN EMINENCE

What comes to mind when you hear the word “eminent” ? Most reasonable people would associate eminence with someone that has attained a level of achievement far beyond others through years of hard work, has a proven and demonstrable track-record of excellence and has unquestioned integrity. Think Abdul Kalam, Mother Teresa, Sachin Tendulkar, Lata Mangeshkar, Ravi Shankar. Each of them got to the stature of eminence through years of dedicated [...]

25thJun, 18

NOT HEDGING OIL PRICES IS REALLY DUMB

Governments and bureaucracies were never designed to produce strategic thinking and efficient outcomes. Decision making requires courage, and when the primary objective is self-preservation, courage takes a back seat. As a small-government libertarian I don’t expect much from governments or their bureaucracies, but sometimes even I am shocked at their level of incompetence and irresponsibility. In preparing for a lecture recently I was astounded to read that oil companies in [...]

11thJun, 18

WHAT MODI CAN LEARN FROM TRUMP

The New York Times (NYT) is as rabidly anti-Trump as any other newspaper in the world. So recently (June 1, 2018) when the NYT carried an article claiming that “we ran out of words to describe how good the job numbers are” it was the strongest endorsement of Mr Trump’s economic policy that has created remarkable economic growth and employment in the US. Here are some astounding numbers for the [...]

3rdJun, 18

POOR PLANNING SCREWS UP THE AIR INDIA DEAL

Recently the government put Air India up for sale. Predictably, they made the terms of the deal so onerous that there were no bidders. Not only is this an embarrassment for a government already reeling from complicating and destroying a good tax like GST, but, sadly, it also reduces the market price of a very valuable asset. Remember this in context of the fact that Air India has a vast [...]

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