I love the way our newspapers report comedy disguised as news. Look at this article in the Hindu, for instance:
Plea to control gold price. Yes, someone wants gold prices to be regulated. I did not know gold was like a life-saving drug, or an essential commodity like rice or vegetable oil. Not that there is any price control on rice or vegetable oil as far as I know. But maybe they want to start with gold – maybe they feel it’s the most lifesaving of them all?
Let me quote from the news report:
In a memorandum submitted to the Union Commerce Minister, Kamalnath, the chamber secretary S. N. Rama Raju, pointed out that there had been a spurt in the price of gold which made the yellow metal unaffordable for the common man.
The poor, the memorandum said, found it difficult to buy even the minimum jewellery like mangala sutra for weddings under current prices.
If this trend continued, the government would lose the confidence of common man, the statement cautioned.
Hilarious. I love the way Mr. Rama Raju also subtly suggests that it would be somehow anti-Hindu to allow gold prices to rise. After all, isn’t it written in every religious text that mangalsutras should only be made out of gold ?
I also love the fact that Mr. Raju doesn’t seem to object to inflation levels per se and how other commodities like food are becoming unaffordable for the poor. I can see the poor man on the street thinking, “Hmm, should I buy rice, or clothes, or gold? Oh, why is gold so unaffordable??”
I would have thought that gold prices will/ should rise when there are deflationary expectations (like there are now). Isn’t that the whole economic rationale for buying gold? When you cannot invest in stocks, bonds or real estate, you buy gold.
But I see I have been mistaken. Mr. Rama Raju has opened my eyes – gold is an essential good.
So I am planning to submit a petition to the Commerce Minister too. I would like the price for the Mercedes Benz S-Class to be regulated. Obviously, it is an essential commodity, and it could potentially be lifesaving, but it is unaffordable by the common man (costs around $100,000). I would request the government to immediately fix the prices at $5000 so everyone can buy it. Otherwise…. what was that line? Oh yes, “I will lose confidence in the government.”
Anyone else would like to be a signatory to this petition?