In the past 48 years, from 1964–2012, we have never had inflation, but have only had well-calculated devaluation. For the effect of inflation, the price of commodities or services should go up while the value of the currency is steady. If the value of currency looses much more than the rise of prices of commodities and services then it is devaluation. The value of currency has gone down to 1/444, but none of the prices of any commodity or service has gone up to 444 times to have the phenomena of inflation. The following table will give you an idea of devaluation of our national currency: Rupee.
GOLD in 10 gms
From the table it is clear that the price of Gold during the period of 1964 to 2012, a period of 48 years, has gone up by around 444 times or in other words, the value of our currency, in relation to the cost of gold, has gone down to 1/444 of the cost of gold. That means the value of one rupee today is equal to 1/444 of its value in 1964 or today’s Rs. 444 is equal to Re.1 in 1964. For the purpose of valuation of currency, every nation practices Gold Standard which means keeping equal value of gold as reserve to print and circulate their currency in their nation.
So, 48 years of our independence brought the value of our national currency to 1/444 of its original value during 1964. By the process of devaluing the currency, the maximum damage has been done only to the poorest of the poor people of the nation, namely, the farmers. In such a condition, where the value of the official national currency is NOT STEADY and is in a FLUID STAGE and is under CONSTANT DEVALUATION, the people of the nation tend to lose the faith in the sovereignty of their nation. This is a dangerous state of affair for any nation. No nation, especially which believes in being a Sovereign, Socialist, Secular, Democratic Republic, can afford to ignore this.
Already some of the symptoms such as Border Terrorism, Economic Terrorism, Medical Terrorism and Religious Terrorism have established their presence in the country. Once these forces aggravate and consolidate their presence in our society, it will lead the nation to anarchism and no government worth its name or strength will be able to contain, control or eradicate it from the nation.
So the time has come for the Government of our great nation, India, to take strong steps to implement an entirely new economic order so that the nation can come out of this dangerous menace, which is threatening the very foundation of our Sovereignty. Otherwise we, the people of India will be paying the heaviest penalty, including the loss of our independence for our own follies.
By Gangadharan Nair N.