Will India’s love for gold and silver slow down her economy? - by Kabir

http://www.illuminatisilver.com http://www.facebook.com/illuminatisilver Today is Saturday 6th February 2016 and we are producing the fourth of our ‘subscriber videos’ – and it’s by Kabir and his article is entitled “Will India’s love for gold and silver slow down her economy?” India is set to become the fastest-growing major economy as per the recent report by The World Bank. According to the Report, India’s Gross Domestic Product (GDP) is expected to grow by about 7.5 % in 2016. The growth of India’s economy is attributed to a combination of factors including RBI’s inflation focus supported by benign world commodity prices and strong government reforms. For the Indian economy, the gold obsession is worse than a poor investment. Compared to purchasing bonds and stocks, parking money in gold slows down the country’s economic growth rather than stimulating it. At the same time, a growing trade deficit has been forcing the country to devalue its currency at about 10% annually for the last 2 decades. These plunging values scare people out of rupees and foreign funds out of India. This in turn translates into less investment and slower growth which weakens the rupee further. Our view is that the Indian people have for centuries worshipped the ownership of gold and to a lesser extent silver. They see them as precious and of value throughout time. We have already witnessed the tiny take up of Government schemes encouraging the use of paper gold and suspect that the Indian people’s attitude will remain little changed. Please view our recent videos: Gold and Silver Update w/e 5th February 2016 - by illuminati silver https://youtu.be/K9P6BuvGDi4 US Job Figures for January 2016 fall well below market expectations https://youtu.be/jyJ9Zn07iqc Bank of England Holds Rates at 0 5% because of economic slowdown and low inflation https://youtu.be/mkQZfYgDYWU China to launch its own Government Backed digital currency in 2016 https://youtu.be/_jxfeE5vjFQ Who really won Iowa - Cruz - No - Trump - No - Rubio - Yes https://youtu.be/SCftCUn2xiY Gold and Silver weekly update for w/e 29th January 2016 - by illuminati silver https://youtu.be/hDrJrr0bPJo Fed January 2016 announcement makes March Interest Rate rise less likely https://youtu.be/nFOa6zo0KAE Remember It's not all about numbers by David Pannizzutti - an illumnati silver subscriber https://youtu.be/lTZSjQP-ROU Why I Buy Silver in 2016 - An American Boomer's Perspective - by an illuminati silver subscriber https://youtu.be/HctayjWa_WU The Functionality of Full Reserve Banking https://youtu.be/U29io8uyI60 Gold and Silver Update w/e 22nd January 2016 by illuminati silver https://youtu.be/mqZQlGCsGAM Illuminati Silver Launches New Face Book Page at www. facebook. com/illuminatisilver https://youtu.be/1OpJr4aZd14 This is Bill - Bill is Smart - Be Like Bill - Support illuminati Silver https://youtu.be/-G6EjOCRXTc

Comments

1. cant fault the indian people for looking out for themselves. can't make them have faith in something they don't believe in. their goverment will have to prove it to them.hard to bank on blind faith alone.
2. I knew gold was used highly by Indians for their marriage season stuff. But I never knew silver was popular there too..
   But I highly doubt the demand is so high that the rupee is negatively affected.
   From what I have heard, the Indian government deliberately devalues the rupee to encourage foreign investments..
3. A well thought out and thoughtful article. However as a US citizen... I agree to disagree. To be sure Indians may be "holding back" the country's economic progress... they are very MUCH SO .. creating a solid stable basis for wealth. I would chose that methodology over what commonly occurs in the US ANYTIME! For example, a friend came into a very modest inheritance, about $10,000. This was of course cash, traceable, taxable and all the other economic wonders. They straight away invested it with a broker. 12 months later, it was gone. All of it. This was a PROFESSIONAL broker. Did it add to the economy.. to be sure it did! Was Wall street happy? of course.. the US government .. why yes! The poor smuck who lost it all? yeah not so much.
   Currently in the US, an older retired person, who had planned and expected to retire with a savings and to hopefully live off the interest of that savings, has been denied... they have been summarily robbed.. by the banks/Fed/government. To be sure they would be also cheated by the process of keeping gold prices down. But at least the store of wealth is there until such time as a sale is made ( same with a stock of course, but gold does not go chapter 13).
   No, I think the people of India, and their culture are correct. To use a device that is less prone to FED thievery, to inflation, simply to keep separate a "store of wealth" from the day to day currency. Let us hope that the day when US citizens wish they had done so never happens. For they have nothing but sheets of paper.
4. The import of gold is not detrimental.
   1st: In the very near future we will see the reintroduction of the gold standard. Having lots of gold both in the hands of government, but ESPECIALLY in the hands of the people, will be very beneficial to the people of India, ensuring that India will be one of the great powers of the new world, and that the indian people will remain affluent and comfortably in the middle class, at the same time where the fiat loving people of north America will slip into a perpetual underclass.
   
   2nd. Growth cannot go into the sky. The "idea" of economic growth is logically contradictory.
   It requires exponential growth in a world of finite resources, and part of the Keynesian delusion that ignores reality.
   Imagine this scenario of growth, and forgive me for using a fable form.
   In a bottle exist a species of intelligent bacterias.
   They double in numbers every minute.
   The time starts at 11 o'clock
   At 12 o'clock the bottle is full.
   Question, at which point is the bottle half full?
   Answer 11:59, one minute to midnight.
   
   Now imagine that the bacterias, intelligent as they are, are able to find 3 more bottles that they can live in, quadrupling their living space, how much time would that buy them?
   Answer, 2 minutes.
   At 12:00 the first bottle is full
   at 12:01 the second bottle is also full
   and at 12:02 all four bottles is full.
   
   This illustrates the problems of exponential growth in a finite world, and we have reached that point. Logically speaking then, there is only one way we can go, and that is DOWN.
5. I have been told by a good friend that India is buried in gold having bought at the higher end of the price curve in 2011 etc
6. I think that, while removing "present-day economic movement", over a more long-term view, once all of the fraudulent banks are routed, those holding tangible physical assets which cannot only be easily proven to exist, but which have their own intrinsic value, they'll have a concrete way to rebuild their economy, based on that stored value.
   
   I could be wrong, but when you look through the lends of thousands of years of history, understanding that EVERY fiat currency without backing has crashed and gone to zero, it seems as though they're just planning for the inevitable...unlike what the majority of people in North America are doing. Most people on this continent are deliberately choosing to remain ignorant of history, and current events, and choosing to be distracted by non-issues and useless entertainment.
7. During the last 60-70 years, almost every country in Asia has experienced a dramatic loss in the purchasing power of their currency; in some cases more than once. This means everyone has either lived through it or has parents who have, and this imparts a healthy distrust of governments and their capacity to mismanage the economy. It is natural and desirable for citizens to protect themselves from their own governments by holding real assets rather than unbacked fiat currency. If the Indian people like gold then so be it, though I agree that more productive assets would be better. Either is better than fiat currency though: Indians are right to decline to exchange their gold for rupees. In the west we have become complacent about currency because we have not personally experienced catastrophic loss of value, although the Germans continue to have long memories about the Weimar Republic. Some day we will get a nasty shock and discover how much better hard assets are than currency, but for most people it will be too late.
8. The love of gold by Indians will never wane. Gold and silver purchases go from strength to strength.The very idea Indians will exchange their gold for government paper is ludicrous. That the rupee is devalued is proof to Indians gold and silver is the form in which wealth should be held. This is an act of desperation. It will mean changing the very culture of India and that is not going to happen. They are not as easily con as the people of the West.It is out of the control of the government. Much of the gold is held in temples. This gold belongs to the gods. The government is not going to get its hands on this gold other than at the point of a gun and this would end in blood and tears for any politician.
   The ploy is to get this gold into the hands of the government in exchange for paper and then on to the banks to stem the flow of physical gold from the critically depleted deliverable physical supplies in the West. It will not work, no argument will convince the people, the horse has bolted now.
9. Thank you IS. This is very interesting.
10. The Indian government wants to the Indian people to give up their gold perhaps they should learn some about psychology rather than Karl Marx. I'm sure that there are conditions in which the Indian people would feel like they need less gold and there are conditions that make the Indian people feel like they need to have more gold.
11. WHAT WILL BE BAD FOR THE WORLD ECONOMY IS WHEN THINGS GET BAD AND THE DERIVATIVES CRASH AND ALL THESE COUNTRIES THAT HAVE BEEN HOLDING PM'S WILL START DUMPING THEM TO KEEP THEIR ECONOMIES RUNNING, BUT THE PROBLEM IS, THEIR IS NOT ENOUGH OF ANYTHING ON THE PLANET TO COVER THE DERIVATIVES BUST!
12. when are you going to do the video on the ESB?
13. India's government, like most other global players do not like their populations keeping money on the sidelines. While this behaviour bothers and effects a country, it is good for the individual. For example, i have read that when an Indian farmer may have a crop failure one year, while having no assistance from the government, his metal holdings can carry him through. It is human nature to care for that which is close to home first and no government can change that without creating punishing and unjust laws to crush the individual. Unlike westerners, India and other poor countries have no backstop for those who fall on hard times. It would be nice to see westerners take more interest in their financial futures.
14. It is interesting. I think the question should be - will India's love for saving slow down her economy. The people are using gold and silver to save as opposed to using their national currency and for good reason. I can't see the downside with this unless the volatility that comes with individuals risking capital and taking on leverage to make speculative investments is a good thing? Perhaps slow and steady wins the race, if you dare to call India's annual growth rate slow :)
15. So I understand what your saying but why is it wrong for the market to function this way when it's a natural function of the markets. Why is it necessary for the government to control this? That is the problem. The way I see it, is that it should be allowed to happen naturally and banks and government that have proved over time not to have the peoples interest, why should they have the right to regulate this?
    The reason why is that this natural occurrence goes against their manipulation of the economy of India.
    Anything that creates wealth for the middle class creates a tension between the government and their backers the banks and a growing strength of the middle class.
    
    
    
    To boil this down to a sound bite, "Wealth is freedom and debt based wealth is slavery"
    
    It's just a natural effect of savers to save for the future of their family. It's natural to show status in India by showing your wealth and thus how they decided to wear it instead of locking it in a vault.
    
    
    Why is this wrong? Look to my short sound bite above.
    
    Peace!