even the prices are soaring up for the present situation, for the government doing nothing on it.
Tiger,
I would like to help fill in a missing detail that should make it a bit clearer for you what is happening.
I believe this is what is happening, from the perspective of an American who lives in a country that has THE world reserve currency. I am not bragging. In fact, I dread what our punishment would be for a country that abuses that "world reserve currency" status. Your government has been held hostage by the American government's action of abandoning the Bretton Woods system of monetary management, which served to maintain exchange rates and keep them stable. However, the US went off the gold standard unilaterally on August 15, 1971, meaning that you could no longer exchange your stack of US currency from tourists and foreign customers for gold/silver internationally. This is essentially an international default. The US government had already defaulted on the gold standard to the Americans in the 1930s, just so you know. This means that 40 years ago, America embarked on yet another fiat currency experiment, just the latest one in a human history littered with these failed experiments over the centuries. This was just the latest step in 200+ years of the moneyed class' attempt to institute a pure fiat system over the course of centuries.
What your government has had to do to protect itself at your expense is maintain the exchange rate, otherwise, you would be seeing exchange rates of 40 rupiyas to the dollar, 35 rupiyas, 20, 15, and so on. The government can't allow that because that would affect the growth/maintenance of the export industry. It would cause your merchandise and services to be more expensive to American consumers, and hurt sales. In order to maintain the exchange rate, which stands around 49 rupiyas and some, the government has to expand the money supply in order to match the growth of the money supply right here in the US. However, it has the unfortunate side effect of exporting inflation to your countries. This is THE cause of your price inflation. Our government is causing it.
As an American, I want to apologize for my inability to regain control of our government so that we can terminate the greatest scam on the face of the earth; trading our increasingly worthless dollars for your merchandise and services via foreign exchange, and then if, like China in the near future, your country attempts to retaliate for our exporting inflation to your country beyond an acceptable point, the American government simply issues the order to the financial sector to clear off ALL US $ reserves held by your government. Right now, we have the ability to wipe out China financially with just a few keystrokes because the trillions in US $ reserves is not paper dollars like those shipped to Iraq, but in electrons on a computer. China would have worked hard for 30 years, for nothing. Because they had received a "promise to pay" in lieu of the real thing. Just imagine; I print up paper money from trees in the old days, and ultimately from an appropriation or authorization from Congress ordering someone to simply type "87, nine zeros, and the enter key," and trade it for real, substantial things. I can immediately declare the US $ void and null, and you would be left with nothing. I am ashamed of our government retaining the ability to do so unilaterally.
Your government probably would not be doing the price increases if there had not been a world reserve currency and we continued living on some gold/silver backed trading system instead of fiat.
Again, I'm sorry.
