The puppet speaks
Our honourable prime minister addressed the parliament, earlier today, and told us that his government is in no way responsible for the worst devaluation in the history of the Indian rupee. In addition, he assured us that they would not roll back on the deregulation or FDI-in-all-sectors pet projects. When read in conjunction with the recent call to the people of the country to sell the government their gold (with extra emphasis on certain states), all of this is playing right into the lap of the emerging conspiracy theorist.
The earlier hasty no-holds-barred implementation of the aadhaar project and the obedient compliance with the American NSA’s snooping activity, had all raised red flags. For those unaware of the scenario (if you haven’t realized by now that commercial media isn’t about truth-telling, it may already be too late for you), you should know that the Aadhaar project has neither legal or policy framework nor civil liberty safeguards, or indeed even parliamentary approval. (Have you noticed the amount of advertising done for this project?) When news of NSA’s snooping came out, our minister told us it was perfectly within America’s rights and as if that wasn’t enough, announced the rolling out of our own cyber snooper (NCCC) almost the very next day.
First, a brief history lesson seems to be in order. The modern currency systems, during their inception, validated their worthless paper money by promising that a central reserve held reserves of equal amounts of gold and any holder of the paper money could ask the central reserve bank at any point, for the reimbursement of their gold. Thus paper money was symbolic of the gold held in reserve. A fiat currency is a currency that does not have gold backing its full value. Once the rule of paper money had been established in the minds of the people, central banks slowly reduced the percentage of gold backing it. Today, most currencies of the world have less than 5% of their value backed by gold – the rupee included. This fake currency is called a fiat currency. The rest of the value of the Indian rupee is currently, theoretically held in foreign capital reserves. For ease of explanation, one may assume that as the value of the dollar goes down, about 70% of the value of the Indian rupee goes down directly.
This is the story of the dollar. The American Federal bank, contrary to popular belief, is a private bank or a consortium of private banks. They print the dollar. What regulates them you ask? Honour. This is not a joke. Also, this is pretty much what deregulation means. The system simply assumes that large enough corporations will honourably self-regulate and that they won’t use their power and monopoly to swindle innocent bystanders (like they didn’t during the Wall Street crash). During the 2008 stock market crisis, the federal bank printed 26 trillion dollars out of thin air and distributed it among the private banks than own and operate it, without the approval or knowledge of its people or congress. “The four largest recipients, Citigroup, Morgan Stanley, Merrill Lynch and Bank of America, received more than a trillion dollars each”, says congressman Alan Grayson who unearthed the information. When this story came out, the press did not have a field day with it. Instead they acted in quiet coordination to ignore it. Why, you ask? The part about media-control is still the area of conspiracy theories and I’ll get back to you on this when more proof surfaces, but a quick web-search should give you decent answers. As to what deregulation in effect does to a country, Iceland is a great case study.
By now, most big players in other parts of the world have realized that the dollar is unregulated worthless paper, and are quietly phasing the dollar out of their transactions. It looks like a fully-gold-backed Yen might be coming up. Remember the rumours that resurfaced after Gaddafi’s death that he too had been eliminated for his efforts to bring back the gold-standard? From Rome to England, fiat currencies have a history of eventually failing. When they fail, all hell breaks loose and you go vegetable shopping with a truck full of paper money. Here is the twist. When everything goes to the dogs, gold increases in value exponentially, because this seems to be the one currency the world can always fall back on.
The rest, I admit, is pure stipulation. When our government uses the current opportunity to introduce measures that further facilitate FDI, vested foreign interests have a brilliant opportunity to exploit the weak rupee, thus hastening the vicious cycle. Also in recent history gold collected by certain governments, seems to finally find their way to the same vaults. Either way, it would be prudent to remember to not trust their reasons.