I am seeing a lot of firm action by the Union Goverment to increase liquidity on the pretext of increasing growth.

This is aimed at 2014 General Election to garner people support.

The danger of triggering Hyper Inflation is ignored by the government on purpose. The aim is to be re-elected.

The next budget is expected to be full of freebies.

The goverment wants the bitter pill reforms forced by the rating agencies & IMF ( removal of fuel subsidies & FDI on retail) to be forgotten by the freebies & the popular budget to come.

The Aadhar based direct cash transfer of Rs 32,000 is one such scheme that will infuse cash in to 100s of millions house holds.

This Annual Lump-payment of Rs 32,000 to millions of families In lieu of other small subsidies at Point Of Sale will not be used by the beneficiaries for such basic need Items ( weekly Kerosine purchase etc)

I am certain this liquidity infusion will cause a massive hyper inflation that will impact INR negatively.

Sale of items such as Motor bikes, gold,clothing, and construction materials will increase drastically.

The drip down effect on RE price will be immense.

I was hopeing for stabilization of RE price but looks like this government will not let it happen.

There are many more inflation raising popular hand out are yet to come.
There government is also hell bent on reducing the interest rate much lower before the election. This is causing friction with in the RBI.
End of the day Gov will have it's way.

I assume property price raising in many parts of India in 2013 -14.

What's in store after that,we don't know.

Will the Union Goverment re-election policy increase property price?

Please share your thoughts.
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  • I never said NRIs as dogs
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  • That is a matter between you & NRIs.

    Barking up the wrong tree is an idiomatic expression in English, which is used to suggest a mistaken emphasis in a specific context.

    In other words, "if you are barking up the wrong tree, it means that you have completely misunderstood something or are totally wrong.

    Thanks for confirming the Mao & grass inclination.
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