India pans to suspend futures trading on grains but the blame on hyperinflation in food must be put on the current Government and its nonsense policies
Kirit Menon
May 4, 2008

Indian finance minister, a Harvard educated theoretician is finally running for cover. His mistakes for the last several years have put India into the brink of hyperinflation in food and essential commodities. Trying to stop futures trading in food commodities cannot cover the failed policies of the current Government. It will encourage hoarding and people will hungry because of shortages.

``If rightly or wrongly people perceive that commodities- futures trading is contributing to a speculation-driven rise in prices, then in a democracy you will have to heed that voice,'''' Chidambaram said in an interview in Madrid.

However, Mr, Chidambarm and his counterpart PM Manmohan Singh cannot run for cover from their mistakes in running Indian economy.

It was wrong to divert IT outsourcing and Foreign Direct Deposit money to support $75 billion blood bath in Indian Government owned oil companies in order to subsidize the gasoline, diesel, kerosene and natural gas prices.

The whole strategy has now backfired. India and China are responsible for the current food crisis in the developing world. As India and China subsidized oil and gas for their own citizen, ignorant Indian and Chinese consumers continued to buy $2000 cars on loan. The middle class in China and India are synk in loan with multiple cars in the household without roads and infrastructure to support the ‘American dream.’

In the mean time because of the above blunder crude oil price moved towards $120 a barrel. That encouraged diverting most of the grains, and sugar towards ethanol based biofuel generation. It in turn created the hyperinflation in food prices.

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