Economic Times devastated as alleged “James Bond of finance” Rajan stops short of being fired as RBI governor

ET will probably announce a three-day mourning period. WARNING: Don’t try to manually count the instances of his name on their frontpage.

Rajan shoots leg.

Rajan shoots leg.

Today, MoneyControl.com (CNBC India) reported that SBI chief Arundhati Bhattacharya is a top contender for outgoing RBI governor Raghuram Rajan. When he was appointed as governor, Rajan was suspected of being an IMF mole – he did plant several Wall Street moles in various positions in the RBI – it is not known if they will also leave with him. Rajan left without securing the usual second term, as Modi seemed to have given Subramanian Swamy the go-ahead to launch proxy attacks on Rajan. As I have already foretold, Ms. Bhattacharya was handpicked to destroy SBI. Her efforts to give massive loans to drowning-in-debt groups such as Adani (https://moralvolcano.wordpress.com/2014/11/18/whi-will-give-2-billion-for-a-400km-posco-rail-line-adanigroup-who-will-give-adani-1-billion-sbi/) and telecom operators such as the extremely leveraged Reliance Jio (https://moralvolcano.wordpress.com/2016/05/11/indian-banks-face-tens-of-thousands-of-crores-of-losses-whether-the-1-5-lakh-crore-reliance-jio-succeeds-or-not/) and the scam-tainted Aircel-Maxis (https://moralvolcano.wordpress.com/2014/04/05/sbi-will-never-collect-its-maxis-telecom-loan-having-a-female-chairman-no-insurance-against-corruption-nothing-learned-from-kingfisher-npas/) were probably thwarted by unexpected news coverage. Modi apparently is in a hurry to arrange cheaper loans to “stressed” corporates with a more-pliant RBI governor. Apparently, even a Wall Street favorite cannot scale central bank munificence to the insatiable greed of Modi’s cronies. S Gurumurthy and Swamy are good candidates for the post but it will be SBI wrecker who will take the helm at RBI.

Credit Suisse report "House of Debt"

Would-be beneficiaries of new RBI governor? [Image from Credit Suisse report “House of Debt“]

To be fair, Rajan did try to get PSU banks to clean up their balance sheets. These banks regularly hid or wrote off bad loans to corporate cronies of politicians and the Finance ministry recapitalized their balance sheet every year without question. Of course, the end game (decided abroad) was to force PSU bank consolidation and leave the field clear for new private/foreign banks. He also did not buckle under enormous pressure to drastically reduce interest rates, although he had to enough to destroy investment schemes favoured by small/middle-income and rural savers, such as postal savings and PPF – to drive retail customers to stockmarket-linked swindles such as ULIPs and NPS and to make traditional investments schemes favored by Indians (fixed deposits and recurring deposits) non-viable.

The most treasonous aspect of his tenure was the fact that he tried to or did send gold held by temples and ordinary people to the UK to shore up the fast-depleting or already depleted “gold reserves” of the Bank of England – his excuse was to improve their “asset quality”. The excuse is unbelievable because India is one of the biggest holders of forex reserves. It does not need to shore up the quality of its gold reserves to make a difference. (http://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-seeks-quotes-to-swap-gold-to-improve-reserves-quality/articleshow/37650780.cms) After the expose of the LIBOR fixing and Deutsche Bank’s confessions in fixing gold and silver prices (http://www.bloomberg.com/news/articles/2016-04-13/deutsche-bank-settles-silver-price-fixing-claims-lawyers-say) and its promise to squeal on its partners in crime (Bank of Nova Scotia-ScotiaMocatta, Barclays Bank Plc, HSBC Bank USA, NA and Société Générale) and probably others like Goldman Sachs, JP Morgan & Bank of America, the London Gold Fix had to avert the prying gaze of attention it has attracted in London (http://www.foxbusiness.com/features/2014/01/17/deutsche-bank-to-withdraw-from-gold-fix-amid-probe.html). Hence, a new gold fix is in the making in Shanghai in the Communist paradise of China and it reportedly will deal ONLY IN PHYSICAL (Oh, yeah! We believe ya!).

I wondered what Economic Times had to say on Rajan, given how it went into a deliriously wild frenzy talking him up when he was appointed as RBI governor. News of his quiting was yesterday’s news. For Economic Times, though, it is like the world has come to a stop. Its front page on the web is all about Rajan. Using Linux BASH, I counted 93 instances of his name on its front page. On websites of other financial papers, it is not so high – most instances were repeat occurrences of the same article under different headings.

Number of instances of the word "rajan" on the front pages of popular financial rags in India.

Number of instances of the word “rajan” on the front pages of popular financial rags in India.

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