Inflation Rate in India 6.5% by 2011

Inflation Rate in India 6.5% by 2011

The inflation rate in India will hopefully touch 6.5% which is right now around 12-14%. Because of the Currency wars between USA and China, India has noticed huge capital inflow since past several months.

All of this flood of capital inflow is the newly printed money out of thin air by the US Government which is entering into the emerging markets shooting up the Sensex and other asset markets to the sky high.

And this high inflow of foreign capital is causing the inflation in India. Unfortunately, up to now the RBI and Government of India has not regulated this capital inflow.

But in my opinion, they should control this flow of capital inflow like other countries such as Brazil and Thailand to stop ballooning the equity markets.

This is because if the RBI won’t control this capital inflow, it will shoot up the inflation like anything.

Again the most affected people will be employees who are living on paychecks and pay the highest tax to the government. People who own their own businesses and use the power of the corporate structure won’t be affected much because by using the power of corporate structure, they will pay less in taxes.

And yes, these are the people who higher other people (Employees) to run their businesses. And that’s why they won’t be affected much.

Now, let us see that weather the inflation cools down to 6.5% in 2011 or not?

If you want to learn the power of corporate structure to protect your wealth from inflation and higher taxes than download and read my FREE eBook – My Journey To Billionaire Club.