Saturday, February 17, 2007

No More Cruise Control, Wear Your Seat Belts.

The latest issue of Economist has got a very interesting cover. It's showing a Tiger with his tail on fire. If I'd have it my own way, I'd rather Have P Chidambaram with his "lungi" on fire. I know it is politically incorrect, so I'd refrain.

Last time when Mr. PC announced the budget, there was a headline which I still remember "PC leaves the Economy on Cruise Control." Unfortunately, the same economy has found the turbulance of rising inflation, current account deficit and Mr. PC has to infact make an announcement to the effect "Krupaya Kursi ki Peti Baandh leejiye.. (Please wear your seat belts.)"

Meanwhile, in hindsight there are a number of things that could have been done - If the local fuel prices did actually follow the crude prices, initially, this would have helped to curb inflation a bit.

The credit flow (in the form of housing mortgage) should have been checked.

The government who shouts from the rooftops about being pro-poor, pro-farmer should answer why farming output growth over las t year has actually slowed down? Sharad Pawar, there is more to life than Cricket and BCCI.

What happened to the 2pc that you take Mr. PC over and above our Tax that is supposed to be going to Education? I don't see any new schools coming up, except the lamentable debate about the Reservations in premier institutes?

But then here's a Finance Minister busy making comments about "Stock Markets" while leaving the economy on Cruise Control. It will be interesting to see what actions Mr. PC takes to find a way out of turbulance.

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