Central banking was invented by the Rothschilds. All central banks today are controlled by them, including those in Communist countries. In fact, it was international bankers in London and New York who financed Lenin and sent him to Russia.
Unknown to most people, central banks in Western countries are privately owned. In India, Indian government is notionally the owner of the RBI shares. However, as a precondition to sending FDI to India, the decision-making at the RBI was made totally independent of the central government. The RBI governor goes to Basel (Switzerland) every year I guess and gets programmed at the meetings of the Bank of International Settlements (BIS). He listens to nobody else.
Yet, Indian RBI governors have not done great damage to the Indian economy. There is no full convertibility and interest rates have not been slashed. The trouble with Western economies is low interest rates. In that environment, there are no good investment options except the stock market and derivatives. A few privileged banks such as Bank of America and JP Morgan can borrow money at zero or no interest rates and control entire economies like in a cartel. Thus, the Big Banks on Wall Street have grown to own big stakes in all big influential companies. As they are very close to the fountainhead of the money printing presses, they get the maximum out of the dollar. Everytime the money changes hands, the dollar loses its value and the banks grow in influence.
Indian corporates such as the Tatas, Birlas and the Ambanis want to imitate the Big Banks on Wall Street. They want to become the quasi rulers of India and own all the wealth. This is why they are asking the RBI to lower interest rates and issue banking licenses. To make it really easy for them, they want rules to be relaxed. Not only that, they want PSU banks to be destroyed so that there is no competition.
The current governor is proving to be a tough cookie. He has been very reluctant to lower interest rates as it would fuel runaway inflation. He also has not been very enthusiastic about giving banking licenses to Tatas, Birlas, and Ambanis. For this reason, the government decided that it was time for reforms. First, it talked about of a super regulator. Then, it wanted more control over the RBI decision making. Then, it appointed an auditor to check RBI’s account books. Now, it looks like the government is not going to give Gov. Subbarao an extension.
And, who is going to fill his shoes? Chidambaram’s minions. One is an inexperienced World Bank import. The other is I don’t know who he is but I know that he is a shill. With either of these in the RBI governor post, then it is doom for the Indian economy. The Fascist state a la Amerika will be upon us. Predatory lending, leveraged buyouts, monopolies, crony capitalism… will be the order of the day. The transition could be catastrophic too. The Indian economy will just crash because of the exuberance and ineptness of these modern-day wannabe Rothschilds.