Friday, December 26, 2008

Kudos Mr. PC


Our Home minister PC has already done a pretty good job as Finance minister to combat terror. His numerous steps have ensured that terror is never the same again. For the uninitiated here is a list of major stuff he did as FM to battle terror:

1. All of us know that one of the major sources for Terror funds is the stock market. By bringing it down to 50% he has singlehandedly cut off a major supply of terror funds. When stock prices were high, most people assumed it would stay high. So these terrorists started investing and funding like crazy, getting their fidayeens addicted to higher standards of terrorism. When those terror sources need to pull back on that spending, where do you think they will cut first? I think it will be hard to fund terrorists when you can't afford to pay the dhobiwala.

2. By having sky-high inflation the terrorists had to spend more on their operations. Since income was not growing so funds availability for future operations was lower. 

3. Growing interest rates meant that cost of funds had increased i.e. that much lesser funds available for future.

4. Barring the recent rally Mr. PC had managed to bring the amount of Terror funds into India. The $ was at Rs. 45-48 levels. Mr. PC brought it to Rs 39. So even if the Terror $ into India increased the end Re value was lower. So Mr. PC made the Terro sources spend more than what they would have for same end Re value. 

Keeping him as FM would have been beneficial in the long run. Just like how banks are scared of funding anything now, the terror sources too would have been scared of funding anything. Infact Terrorism would have died a slow death ! If only Shivaraj Patil had worried about terror as much he had about his clothes then it would have given PC a longer tenure as FM.  

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