A few days ago the finance minister of India, P Chidambaram, asked the citizens of his country that contained his “uncontrolled passion” for gold , and instead, save in traditional financial instruments. “Have faith in our financial sector,” he said, hoping to stop acquiring it.
He accuses her growing consumption is affecting the current account deficit of the country, and soon to be launched offered “lucrative” bond options indexed to inflation, as an alternative. Failure guaranteed.
It may be recalled that India along with China, are the largest consumers of this metal in the world, a situation that at least the Indian authorities do not like at all.
Chidambaram’s frustration, is paradigmatic.
Many politicians and central bankers around the world, principally in the U.S. Federal Reserve, must be feeling like himself.
All actions, therefore, are designed to reinforce at any cost, the predominant role of their respective currencies, so…
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