Bad Move by Indian Government.

Finally Indian Government backed Forward Markets Commission (FMC) suspended trading of futures trading in chana, soyabean oil, rubber and potato till September 6. I think that it is bad move by leftist dominated current Indian government. There is no link between inflation and future trading. This leftist (Communist) are playing their cards to win next election by painting themselves as a saviour of poor and middle class people of India. But they are halting Indian economy growth and stopping money flow into Indian economy, ultimately that is going to hurt poor and middle class people of India. India is a vastly "black money" dominated economy, if we close some money flow channels like future trading, money would be again stagnate as black money and government going to loose sum of money as tax. How come price would go up if number of investors decided price after amount of brainstorm and scientific study vs small number of selected group of people fixing based on some unscientific way? I think that the former should reflect real state of price.Future trading helping all of us by discovering prices early so based on future price everybody adjust their demands well in advance, I think Montek Singh Ahluwalia explained really well here about future trading and inflation.

Inflation now is a global phenomena. We can't blame anybody for this, we have to adjust ourselves to live with that. This price hike going to continue until Iraq oil flows into main market or US drilling some more in Alaska (I think Alaska will not happen because of US election year and more global warming concerned people in US) What will happen if we suspend oil future trading, now price determination would be in hands of OPEC who is both price fixer as well as producer. In that scenario, how come we trust them that they are playing a fair role of fixing price, definitely they can set what ever price they want, no question asked. In order to avoid that only we found this future trading for a stable price determination. Why we need currency future,suspend that also and let each country fix their own money value like communist China. No democracy.

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