Still many Fake Politicians Ask, 'Where are Acche Din?'

Forex reserves surge to new high of $409.4 billion.


India's foreign exchange reserves scaled a new peak at $409.367 billion with Reserve Bank of India adding $4.445 billion in the kitty in the week ending December 29. While the central bank does not cite reasons behind the weekly rise and fall of reserves, forex dealers said that the weekly jump was largely due to changes in valuation of reserves held in other global currencies such as pound sterling, euro and Japanese yen. 

Friends,in May 2013 1 US Dollar was 54 Rupees but by August 2013, one US Dollar became 68 Rupees. In other words in just 2.5 months, Indian currency crashed 27% ! Virtually India was in a financial crisis. Global rating agencies categorised India as a member of 'Fragile Five'! It means India can collapse at any time! At that time, the great FM P Chidambaram (of C Company fame) additionally borrowed USD 40 billions exclusively from NRIs at an exorbitant interest rate (no tax on interest also) and postponed (not solved) the inevitable crisis by 3 years. NRIs borrowed money there and invested here - making millions of Dollars in arbitrage alone in cool.

2 years back, when our Govt had to honour the repayment, global analysts (incl. Indian economists) thought that the Rupee will hit 80 against US Dollar. Nothing like that happened, instead our foreign exchange Reserves shot up to an all time record level - a phenomenal $ 400 billions! Currency got stabilised and India got upgraded by global rating agencies - first large country to be upgraded since the global financial crisis of 2007-08.

What I want to highlight is something different. In August 2013, along with the Indian Rupee, Venezuela's currency BOLIVAR was exchanged at 68 Bolivar against 1 US Dollar. Today in just 4 years, The exchange rate is unimaginable, .1 lakh Bolivar = 1 US Dollar! Inflation has shot up from 20% to 4,000%. "The money they were paying 15 years back to buy a flat is being paid to buy a cup of coffee today.


The worst part of the irony is, Venezuela has the highest global oil reservesThe main reason for the crisis is - 'most corrupt and poor Governance' under the guise of socialism! Black money is the order of the day. Yes, US sanctions have aggravated the situation. But, the primary reason is subsidy regime, very poor tax payment, more than 45%of Venezuela's private business are done in unofficial mode.

Friends, had not Modi led the BJP Govt come to power in 2014 - believe me - India would have been the biggest Venezuela in another 15 years! By bringing the Modi Govt to power, we have not only helped ourselves, but we are also helping our next generation.
Sad, most people are busy with asking question 'Where are Acche Din?'