Six Months ago I submitted an article to India's largest business daily making the case for investments in real assets such as land and gold due to my belief that money will be increasingly debased over the course of the next few years. This article however was never printed for reasons outlined by the editor
"The trouble with gold is that Indians do not see it as part of a class of commodities. There are deep-rooted cultural affinities to gold which have resulted in a whole lot of individual savings being unavailable to the economy for use as capital. In the process, gold has ballooned as an import, contributing actively to our current account deficit and weakening of the rupee. "
Talk about burying one's head in the sand! While I appreciate the editor's sentiment, it seems remarkable that my article would make an iota of an impact on macro developments and on how people in India treat gold. Instead, the only logical thing to do is to educate people so that they are able to take steps to protect money that they have toiled hard to earn and hence their retirement. (Side note - while the editor chose to focus on Gold, that was only one of multiple classes of potential investments suggested by my article).
Unfortunately, developments over the past few months have closely tracked predictions made by my article - both in terms of regulatory developments and its impact on commodities such as Gold. Consequently a large population of savers who chose to save in fixed deposits lost money - unfortunately they don't even know it yet. Hence, I believe its time to break out a new Blog where I can express my opinion without censorship by main-street media who would rather engage in tabloid journalism than publish anything useful.
My original article on the aforementioned topic makes an obvious choice for the first series of posts in this blog starting with the "History of Money"
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