The Lesson Of India’s Gold Saga
Gold Silver Worlds | August 20, 2013 | Category: Physical Market
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The Indian rupee hit a record low yesterday. The Indian government’s efforts did not succeed to stop its decline. What’s more, bond yields surged to five-year highs driven by market forces. Reuters writes:
Efforts to prop up the currency, which has tumbled nearly 13 percent against the dollar this year, have thus far proved ineffective, making it the worst performer in emerging Asia and threatening to drive the region’s third-largest economy towards a full-blown crisis.
The long term chart of the Indian rupee says it all. Pay special attention to the evolution since the end of 2011 and particularly the last months of this year
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Linked to their currency debasement is the growing current account deficit. In an attempt to solve this, the country issued several sanctions to discourage their currency flowing into gold. We described for instance in Indian Government Desperately Tries To Discourage Gold Demand several import taxes. More recently, Indian officials increased the gold import duty to 10%. Needless to say that gold imports have almost frozen in the past couple of weeks.
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Interesting that the illiterate Indians know they are get inflated by fiat currency.
When will the very literate Sheeple here in the USA get the picture?
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