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Today is actually a sad day for many Indians who earn their bread by the sheer dint of sweat.Petrol,diesel and domestic fuel(except kerosene) prices have increased by a good percentage.And the government says that proposed hike was many more times than the actual hike.So how does the economy respond to it?
Steel and other key industries have suffered within a few hours of the announcement.Today the world will sleep,but all households which run on a stipulated budget will burn the midnight oil-a sign of economic insecurity and general dissent.Spiralling costs of essential commodities has already burdened them.This step is enough to steal their sleep.
Who is responsible for this catastrophe?The answer is a bit twisted.No country can help India now,since inflation has been a global phenomenon.The 'Big Brother' is largely responsible for this(its my personal opinion).George W Bush(Junior) waged war against Iraq in 2003,which led to fall of Saddam Hussein.But,the US authorities failed to find nuclear weapons,which was the main cause of the war.In the meantime,prices of crude petroleum increased from $25 per barrel to $100 per barrel.The current inflation is a long term effect of this event.
The rising prices of foodgrains can also be attributed to the US policy of encouraging production of ethanol from wheat,rather than using it as a foodgrain.On the other hand, G W Bush blames it on the rising standards of Indian and Chinese middle class (for creating a huge demand of good food which is larger than supply).The statement raised many eyebrows in India and China.
The solution to this economic disaster is tougher than ever.Alternative fuel must come into use(instead of petrol,diesel).Money flow must be regulated in all affected markets to contain inflation(the latest figures say it is 8.1% - a 45 month high).
The common man has to bear the brunt of this downturn until a bold and strong step is taken by all global leaders in perfect harmony and unison.
Signing off,


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