All these comments, remarks and political gimmicks are nothing but an attempt to communalise the nuclear deal. As usual, political parties have resorted to their vote bank politics where once again a fear psychosis is being created to consolidate and polarize the votes of the two major Indian communities viz. Hindus and Muslims. This is one art which was invented by imperial British in its heydays and has been perfected by the indigenous politicians post independence./Time and again Manmohan Singh and Montek Singh Ahluwalia have emphasised upon the benefits of the Nuclear Deal for India when seen in the background of the issue of “Energy Security”. We are at a disadvantageous to other developed and developing countries when it comes to energy security as we don’t have significant domestic reserves (we import 75 % of Crude Oil requirement), neither we have any favourable arrangement with the surplus countries. The need for energy cannot be overemphasised given the fact that we are the second fastest growing economy, with a GDP growth rate of 8-10%. to maintain such a growth rate we need to expand our energy and power infrastructure and reduce dependence upon fossil fuels like Crude Oil, Coal, wood etc. One of the possible and relative economical and cleaner option is Nuclear energy. But then again we don’t have much reserves when it comes to uranium. Thus, to keep our nuclear reactors running its imperative that we need to sign the nuclear deal.High energy cost is one of the biggest threat to the consistent growth of Indian economy and the energy issue is one which need to be immediately addressed. The deal allows India an access to the elite Nuclear Suppliers Group (NSG) without having being a signatory to the NPT (Nuclear Proliferation Treaty). For India it is a win-win situation, no doubt about it. Also, those Indian nuclear scientists who had earlier expressed reservations on the deal have now endorsed it. The deal has also got full support of India’s ex president and “missile man” A.P.J Kalam.

Moreover, If the political parties are under impression that they will be able to rally muslim support by playing the nuclear card then they are grossly mistaken.A muslim guy and girl is as much interested in becoming a part of India’s 10% growth story as their Hindu, Sikh, Christian or Parsi brethren. As has happened in the past, muslims are once again being falsely stereotyped as having secret extraterritorial loyalties. Such typecasting only hurt the sentiments of the community which has fought along with other social groups to liberate India from foreign rule and exploitation. An ordinary muslim guy is more interested in earning his daily bread and butter rather than worrying about the developments in Iran, Israel or in knowing the technicalities of US Hyde act. The stand of Indian muslim is very clear- they endorse everything which is in favour of India and doesn’t threatens their peaceful existence.

Personally, I used to have profound respect for Mr. Karat’s party, for they are the lone intellectual and critical voice in Indian politics. But the way, the Indian Left has conducted itself on the issue of nuclear deal has even put an ardent supporter of leftist philosophy to shame. Instead of assuming the responsibility of having failed to convince the Indian middle class of fallouts of Nuclear Deal, IAEA safeguards and US Hyde act issues, Left has resorted to a worst brand of politics which till now characterised the other two major national parties and the regional parties of the hindi heartland. The left’s decision of embarrassing the Indian government before the crucial G-8 meeting by withdrawing the support may prove out to be suicidal. The party’s stand has sowed the suspicion of cross border loyalties and some of the national newspapers have even gone into the extent of blatantly calling them as ” anti nationals”. Though I would refrain from calling such names, I will certainly request Mr.Prakash Karat, Mr. Sitaram Yechuri, Mr D. Raja and company to get their acts right.

Thus, the key to rein in current level of international inflation lies in taming the Crude Oil prices. Increasingly, a consensus has been emerging the world over that the current bubble formation in commodities is a fallout of Ben Bernanke’s aggreesive move of slashing interest rate to counter losses arising from subprime crisis. Histroy testifies to the fact that in recent times, a number of bubbleshave formed due to the actions of Central Bankers. The most striking example is the Housing Bubble of US,( that roughly began in 2001) that was a product of Alan Greenspan’s move of keeping interest rate low in order to counter the recently busted IT bubble (1995-2001). The bubble finally got pricked in 2005-2006, and the sector, which then went into a slump, is yet to recover from it. In earlier posts on the same blog, I have argued that any type of economic bubble is difficult to identify except in hindsight, after the crash. There are indications that we are soon going to see a coordinated intervention in the foreign exchange market by the leading Central Bankers of the world. Ben Bernanke has recently given indications that he has done with slashing of interest rate and may now think of raising the same. ECB’s Trichet has already made his mind to go ahead with raising the interest rate. Already, China, India, Malaysia, Indonesia are following tight monetary policy since last few months. Above all, economies like India, Malaysia, Indonesia and Taiwan have gone ahead with reducing the government subsiddies on petroleum products and have raised the prices of fuel to check the artificial demand of Crude Oil. What effect all these steps will have on the international Crude Oil prices is something which remain an enigma atleast for some time to come.