• Steve H. Hanke
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    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

India FinMin: "Demand For Gold Must Be Moderated"

Tyler Durden's picture




 

As we wondered out loud yesterday, many have questioned the disconnect between increasingly burgeoning central bank balance sheets and money printing and the range-bound trading in Gold. It seems the first real hint of why is peeking through as the Economic Times reports the Indian government are growing increasingly concerned at the rate of gold imports. As the India Finance minister stated: "Demand for gold must be moderated... We may be left with no choice but to make it more expensive to import gold. The matter is under government consideration." Gold imports are playing a major part in India's record high current-account deficit (at $20.2bn for the period April to September), down 30.3% YoY thanks to a doubling of the customs duty on standard gold bars (to 4%). It seems the Indian powers-that-be are learning from their US and European leaders that if something is happening in a free-market that threatens the status quo even modestly - crush it with regulation and centrally-planned control. As the article goes on to note, currently, the government is also making efforts to channelise investor money into equities and other financial instruments to reduce demand for the yellow metal.

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Wed, 01/02/2013 - 10:20 | 3114619 kliguy38
kliguy38's picture

Translated.........the banksters told the Indian government to throttle its peeps from taking possession

Wed, 01/02/2013 - 10:26 | 3114634 GetZeeGold
GetZeeGold's picture

 

 

The only truly rich people on the planet will be the Indians.....we can't have that.

Wed, 01/02/2013 - 10:42 | 3114670 Manthong
Manthong's picture

Hmm..  if gold is not capital or rather, if gold is not money, why would government see any need to moderate such a relatively useless material?

Wed, 01/02/2013 - 10:48 | 3114687 Pladizow
Pladizow's picture

The banks have a better chance of achieving peace in the middle east then culling India's appetite for gold.

Wed, 01/02/2013 - 10:49 | 3114690 Manthong
Manthong's picture

“Hmm..  if gold is not capital or rather, if gold is not money, why would government see any need to moderate such a relatively useless material.”

 

Answer:

Chris Powell Knows

http://www.youtube.com/watch?v=T0jpso4jDC4  at 16:30 and PARTICULARLY  AT 18:00

Wed, 01/02/2013 - 11:10 | 3114778 strannick
strannick's picture

Gold or Rupees. Sounds pretty simple to me...

Wed, 01/02/2013 - 12:16 | 3114969 Buckaroo Banzai
Buckaroo Banzai's picture

MUST...CRIMINALIZE...GOLD...GUNS...NATURAL FOODS...FREE THINKING... BREAK THE INDIVIDUAL...ALL BOW DOWN BEFORE THE ALMIGHTY STATE!!!!! "If you want a vision of the future, imagine a boot stamping on a human face - forever."-- George Orwell

Wed, 01/02/2013 - 12:16 | 3114970 trav777
trav777's picture

but I thought Merica was free???

Wed, 01/02/2013 - 12:57 | 3115024 Supernova Born
Supernova Born's picture

Only global economic totalitarianism can keep gold down forever.

So guess what?

Global totalitarianism will grow until uneasy cooperation breaks down, then war.

Maybe freedom can only exists interstitially between wars?

Freedom was like a season. Say goodbye to the summer.

Wed, 01/02/2013 - 10:54 | 3114713 CH1
CH1's picture

Keep stacking while you can, boys and girls.

Wed, 01/02/2013 - 10:32 | 3114644 Pool Shark
Pool Shark's picture

 

 

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. ... This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." - Alan Greenspan [pre-corruption]

 

Wed, 01/02/2013 - 11:55 | 3114925 FrankDrakman
FrankDrakman's picture

Greenspan's role model was Darth Vader. After Easy Al saw the first Star Wars movie, and realized the dark side would give him money, power, and sexy women, he flipped faster than a DRAM cell.

Wed, 01/02/2013 - 13:24 | 3115079 Supernova Born
Supernova Born's picture

Sexy women?

All that evil and all he got was Andrea Mitchell?

I recall Greenspan saying on CNBC Squawk Box (within the last 4 or 5 years) that LIBOR was the best way to gauge the health of the economy!

LIBOR!!!

Wed, 01/02/2013 - 14:13 | 3115393 AgAu_man
AgAu_man's picture

Greedspan reminds me of a tricky CFO I used to know. He said: 'I'll put on any CD to play the song that needs to be played for any given situation."

Wed, 01/02/2013 - 11:36 | 3114862 caconhma
caconhma's picture

The Indian government has change very little from "the old good colonial times". It still treats its own people as slaves. India ruling faces did change after India became independent but the substance stays the same.

Wed, 01/02/2013 - 11:56 | 3114927 giovanni_f
giovanni_f's picture

Agree. RBI officials are "brainwashed in UK d.o.c." brews. Despicable.

Wed, 01/02/2013 - 14:24 | 3115439 AgAu_man
AgAu_man's picture

Yup, met plenty of their 'brightest' in the LSE crowd. Their equally smart pals went to 'Oxbridge', or the usual US universities (Ha'vard, MIT, Standforit, Chicago). Best places in the world for Keynesian and NWO edumacation. ;-/

Wed, 01/02/2013 - 10:23 | 3114628 Sheeple Shepard
Sheeple Shepard's picture

"Move along now, nothing to see hear folks"

 

Wed, 01/02/2013 - 10:23 | 3114629 Azannoth
Azannoth's picture

"Gold imports are playing a major part in India's record high current-account deficit" - They don't seem to comprehend that Gold imports do not contribute to deficits as Gold is Value

Wed, 01/02/2013 - 11:15 | 3114796 Quinvarius
Quinvarius's picture

Central bankers say whatever they need to say to continue the ponzi.  The fact that their population is winning by not joining in is just pissing them off even more.

Wed, 01/02/2013 - 15:49 | 3115795 formadesika3
formadesika3's picture

-They don't seem to comprehend that Gold imports do not contribute to deficits as Gold is Value.-

Ha. Yeah, exchange of "money" for Money.

Wed, 01/02/2013 - 10:24 | 3114630 LeisureSmith
LeisureSmith's picture

Nudge nudge, wink wink, buy no more.

Wed, 01/02/2013 - 10:25 | 3114633 monopoly
monopoly's picture

It will never work. We will just pay more to buy more. We will be ready for the end game. 

Wed, 01/02/2013 - 10:26 | 3114635 DoChenRollingBearing
DoChenRollingBearing's picture

India (if you count private individual holdings) owns far more gold than any other country.  India has centuries more experience owning gold than the US does.

It may be that We could learn from THEM.  As individuals, each of us should buy physical gold.  While it is still relatively cheap.

Wed, 01/02/2013 - 10:39 | 3114663 zilverreiger
zilverreiger's picture

Yes they own more private gold than Eurozone and USA public holdings combined. 18 000 tons

Wed, 01/02/2013 - 11:39 | 3114874 DosZap
DosZap's picture

India (if you count private individual holdings) owns far more gold than any other country. India has centuries more experience owning gold than the US does.

It may be that We could learn from THEM. As individuals, each of us should buy physical gold. While it is still relatively cheap.

 

DoCHen,

Right on last estimate was Indian CITIZENS owned over 22,500 TONS.

Wed, 01/02/2013 - 10:25 | 3114637 fonzannoon
fonzannoon's picture

Gold is to India what guns are to the US.

Wed, 01/02/2013 - 10:28 | 3114646 dobermangang
dobermangang's picture

The woman in India are rushing to buy guns.  Better safe than sorry.

"Hundreds of women in Delhi have applied for gun licences following the gang rape and murder of a 23-year-old woman by six men in a bus in the city last month.

The news underlines the widespread sense of insecurity in the city, deep before the incident and deeper now, and the lack of faith in law enforcement agencies."

http://www.guardian.co.uk/world/2013/jan/01/indian-bus-rape-delhi-rush-guns

Wed, 01/02/2013 - 10:48 | 3114688 GMadScientist
GMadScientist's picture

Do you have any idea how silly reporting "hundreds" is in a city with 16M people?

 

Wed, 01/02/2013 - 11:01 | 3114743 darteaus
darteaus's picture

Why settle for millions, when you can have thousands!

Wed, 01/02/2013 - 11:58 | 3114933 DosZap
DosZap's picture

The news underlines the widespread sense of insecurity in the city, deep before the incident and deeper now, and the lack of faith in law enforcement agencies."

 

Oh, Lord,not another Mexico.

Wed, 01/02/2013 - 11:00 | 3114739 Jugdish
Jugdish's picture

Deoderant is to India what rupees are to the USSA.

Wed, 01/02/2013 - 10:26 | 3114641 Kina
Kina's picture

But if it were iPhones........?

Wed, 01/02/2013 - 10:27 | 3114642 blabam
blabam's picture

Our citizens are importing too much money!!!!

Wed, 01/02/2013 - 10:58 | 3114732 darteaus
darteaus's picture

Our serfs are abandoning our fiat!

Wed, 01/02/2013 - 10:27 | 3114643 Sheeple Shepard
Sheeple Shepard's picture

Last time i checked the Indian populace had in the region of 24,000 TONS of Gold. Stable door, horse bolted?

Wed, 01/02/2013 - 10:30 | 3114647 Central Wanker
Central Wanker's picture

There probably isn't any better way to persuade people to buy gold.

Wed, 01/02/2013 - 10:35 | 3114657 Cookie
Cookie's picture

Or to encourage smuggling

Wed, 01/02/2013 - 10:40 | 3114666 DoChenRollingBearing
DoChenRollingBearing's picture

Gold smuggling to India has a long history.

Wed, 01/02/2013 - 10:44 | 3114679 Cookie
Cookie's picture

One of the main reasons Dubai prospered originally

Wed, 01/02/2013 - 10:55 | 3114722 Jugdish
Jugdish's picture

Deodarant use in India has no history in India. It's a market their for the taking. $$$$$

Wed, 01/02/2013 - 10:30 | 3114649 tradewithdave
tradewithdave's picture

Curb your enthusiasm

http://tradewithdave.com/?p=14340

Wed, 01/02/2013 - 10:32 | 3114652 Sheeple Shepard
Sheeple Shepard's picture

"..the government is also making efforts to channelise investor money into equities and other financial instruments to reduce demand for the yellow metal." Fishing for muppets.

Wed, 01/02/2013 - 10:50 | 3114699 GMadScientist
GMadScientist's picture

With dynamite.

Wed, 01/02/2013 - 10:55 | 3114717 darteaus
darteaus's picture

Obey...work...obey...save...obey...pay taxes...obey...

Wed, 01/02/2013 - 10:34 | 3114655 BGO
BGO's picture

is "channelize" even a word, or are those guys just making shit up again?

Wed, 01/02/2013 - 10:41 | 3114668 Dr Benway
Dr Benway's picture

channelize is to channel what analyze is to anal

Wed, 01/02/2013 - 13:02 | 3115066 Bansters-in-my-...
Bansters-in-my- feces's picture

BGO....

There is no "z" in channelies.

The word decribes how the gooberment channels money to markets instead of gold with Lies

"Channelies".

Wed, 01/02/2013 - 10:35 | 3114656 Mad Mohel
Mad Mohel's picture

Fuck Bernanke and his Indian counterpart!

Wed, 01/02/2013 - 10:36 | 3114660 caimen garou
caimen garou's picture

hey india try silver,the other gold!

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