Why Government is buying gold but asking you to buy Gold Bonds?

Government of India has been buying gold, physical gold.

It recently bought gold taking its own holding of the yellow metal to almost 10% of its foreign currency reserves.

As per RBI reports, India now holds physical gold worth around 70 Billion US Dollars.

While on the one hand government has been buying gold on the other it has been telling people not to buy physical gold, instead buy Gold Bonds.

It even offers interest on these Gold Bonds.

Does this not raise any questions in your mind? Why Government itself is buying Gold and asking you to buy Gold Bonds?

Gold is considered a hedge against change in currency values, but why do currency values change?

There are many reasons for a currencies value to change, one of them being reckless issue of currency.

Under the Obama Administration, US Debt was around 16.4 Trillion USD.

Currently this figure stands at 31.4 Trillion. In seven years, after Obama's presidency ended in Jan 2017, the US Debt has grown by more than 100%.

Same can be seen in India. Money supply in the system has more than doubled since December 2016 till December 2023 and continues to rise.

In basic economics, if the supply of a commodity (and money is now a commodity, actually was always a commodity), rises, its price / value automatically falls.

Thus when money supply rises anywhere in the world, as we are now a more connected economy than previous times, value of currency falls.

Gold value is reflected in this rise and fall of currency value.

As nations create money out of thin air, backed by debt instruments, the value of money has been falling.

There is a fear in those who hold this paper money, which is more like funny money now, that the value of such money can fall to zero leading to losses.

Thus people buy gold as a hedge to this risk and also as a hedge to inflation. Gold prices rise in tune with inflation.

Whenever there is uncertainty in the world, a war like atmosphere, a war in progress, people rush to gold as a safe haven and a store of value.

So, coming back to the question, why government is buying gold and asking you not to buy?

The reason is that any purchase by the government can be pledged to raise foreign exchange while when you buy gold there is a direct drain of foreign exchange from the country's reserves.

That is why Government wants to buy gold but wants you to buy bonds, which are nothing but paper in exchange of paper and therefore does not lead to US Dollars going out of the country.

The Government Gold Bond scheme also creates problems for the Government as it has to either redeem the bonds with physical gold, leading to outflow of foreign exchange (eventually) or it has to pay you the value in Rupees. As gold prices rise, the government ends up paying a hefty premium to gold bond holders which is beyond the normal return on any deposits.

If you are a true patriot, buy Gold Bonds. For me, I don't trust the government and I would go with physical gold, not jewelry but gold coins and bars....

Cyber Frauds are on the rise, beware.

 

Methods of Cyber Fraud and Real-World Examples:

1. Phishing:

   • Phishing involves tricking users into providing personal information through fake emails or websites.
   • Example: In 2019, the "Cozy Bear" group, a cyber espionage outfit, conducted phishing attacks targeting the U.S. and European governments, leading to information leaks.

2. Hacking and Unauthorized Access:

   • This involves breaking into systems to steal data or cause damage.
   • Example: The 2017 Equifax breach in the U.S., where hackers exploited vulnerabilities to access personal data of nearly 148 million individuals.

3. Identity Theft:

   • Criminals steal someone's identity to conduct unauthorized activities, usually financial.
   • Example: In India, cases of Aadhaar (national ID) identity theft were reported in 2018, with stolen identities used to apply for loans.

4. Malware Attacks:

   • Malware can infect systems, allowing fraudsters to capture data or extort money.
   • Example: The "WannaCry" ransomware attack of 2017 affected organizations globally, including the NHS in the UK.

5. Online Financial Fraud:

   • Includes fake online transactions, credit card fraud, and bank frauds.
   • Example: In 2020, an elaborate online banking fraud scheme in Nigeria and the UAE targeted financial institutions, resulting in millions in losses.

Each of these methods emphasizes the need for robust cybersecurity practices and increased user awareness across the globe.

India has seen numerous cyber fraud cases that have affected both domestic and international victims. Here are some notable cases, including infamous call center scams and misuse of Google Ads to promote fraudulent tech support:

1. Call Center Scams Targeting Seniors for Tech Support

• Overview: Scammers posing as tech support agents from companies like Microsoft, Apple, or Dell contact victims, often senior citizens in Western countries, claiming that their computers have viruses or security issues.
• Method: These callers instruct the victims to purchase gift cards (like iTunes, Google Play, or other retail cards) and read the codes over the phone to “pay” for the supposed tech support services. Some also request remote access to the victims’ computers, allowing them to steal additional sensitive information.
• Example: In 2018, the FBI and Indian police uncovered a large call center operation in Mumbai where employees were targeting American seniors, earning millions through gift card payments.
• Impact: Thousands of seniors were scammed, many of whom lost their life savings. Scammers often threatened legal action or pretended that failing to pay would result in the victim’s computer or data being compromised.

2. Fake Tech Support via Google Ads

• Overview: Fraudsters used Google Ads to promote fake customer support numbers for popular software companies like Microsoft, QuickBooks, and Apple. When users searched for official support, these ads would appear at the top of the search results.
• Method: Users calling these numbers would be connected to scammers pretending to be official representatives. Victims were charged for non-existent issues or “subscription renewals” and instructed to make payments via online transactions or gift cards.
• Example: In 2019, authorities dismantled a large fraud network in Delhi that was using this technique to deceive customers in the U.S. and Canada, generating millions in illicit revenue.
• Impact: Victims were not only financially exploited but also, in some cases, exposed to malware after granting remote access to their devices.

3. OLX and Online Marketplace Frauds

• Overview: Scammers impersonate sellers or buyers on online marketplaces like OLX. They lure victims by offering good deals on products, requesting partial payments in advance, or posing as potential buyers who require a security deposit.
• Method: Scammers often use UPI (Unified Payments Interface) apps and other digital wallets, which enable fast, nearly untraceable transfers.
• Example: In recent years, several gangs based in Jamtara, Jharkhand, gained notoriety for targeting buyers across India. A gang member would pose as a seller, share fake screenshots, and disappear after receiving partial payments.
• Impact: Victims lose small to large sums, depending on the nature of the transaction, and scammers remain difficult to trace.

4. Loan Application Scams

• Overview: Fraudsters developed fake loan applications targeting people needing quick cash. These apps promised fast loans but instead requested access to personal data and photos, later using these to harass and blackmail the victims.
• Method: Scammers demanded higher repayments and threatened victims with exposure of their private information if they didn’t comply.
• Example: In 2020, the Hyderabad police uncovered a ring that operated over 30 apps offering fraudulent loan services.
• Impact: Victims suffered severe financial and psychological stress, often paying far more than they initially borrowed.

5. Sextortion and Honey Trap Scams

• Overview: Scammers create fake profiles on social media or dating sites and engage with potential victims to extract compromising information or photos.
• Method: The fraudsters then blackmail victims by threatening to leak the images unless a ransom is paid.
• Example: In one 2019 case, a businessman from Bengaluru fell prey to a sextortion scam, losing ₹15 lakh (around $20,000) before realizing he was being scammed.
• Impact: Many victims suffer immense emotional distress and sometimes endure severe financial losses.

These scams highlight the growing sophistication of cyber fraud in India, where operations often involve cross-border elements and take advantage of digital advertising, payment platforms, and users’ lack of technical knowledge. The government, law enforcement, and tech companies are increasingly collaborating to shut down these operations, but the complexity of these frauds remains a significant challenge.

AI voice cloning is increasingly being exploited in cyber fraud, creating new challenges for businesses and individuals worldwide. By using machine learning models, scammers can clone a person’s voice with just a few samples, allowing them to impersonate victims with striking accuracy. Here’s a detailed look at how AI voice cloning is being used to commit cyber fraud:

1. Business Email Compromise (BEC) Fraud with Voice Verification

• How It Works: Scammers target companies with this technique, typically impersonating senior executives or financial officers. Once they have samples of an executive’s voice—possibly from online interviews, earnings calls, or public speeches—they use AI tools to clone the voice.
• Method: The scammer calls an employee, such as an accountant, posing as the executive. They request urgent money transfers to a designated account, often claiming a confidential or high-stakes situation. Given the convincing voice clone, employees may not suspect fraud.
• Example: In 2019, a British energy company was defrauded of €220,000 ($243,000) when a scammer, using AI voice cloning, impersonated the CEO of the firm’s German parent company and requested an emergency transfer.

2. Financial Scams Targeting Individuals

• How It Works: Voice cloning is used to target high-net-worth individuals or elderly people in what is known as "vishing" (voice phishing). The cloned voice, often of a loved one, is used to request urgent financial assistance or convince victims to disclose sensitive information.
• Method: Scammers call the target, posing as a family member or friend in immediate distress, asking for money to be transferred urgently to a specific account. The familiarity of the voice makes the call highly persuasive.
• Example: In Canada, a senior was tricked into wiring $15,000 to scammers impersonating his son using a cloned voice. The son’s voice was replicated from social media posts and brief video clips, convincing the victim of the scam’s authenticity.

3. Ransom and Extortion Schemes

• How It Works: Scammers use cloned voices to simulate fake kidnappings or other emergencies, calling family members and demanding ransom payments.
• Method: The scammers use the cloned voice to convey a sense of urgency and panic, often in high-stress situations where critical thinking may be impaired. Victims are pressured to make payments quickly, under the belief that their loved one’s life is at risk.
• Example: In Mexico, there have been cases where criminals used cloned voices of family members to demand ransom payments in fake kidnapping schemes, creating panic and forcing family members to comply quickly.

4. Social Engineering for Financial Account Takeovers

• How It Works: Voice cloning helps scammers overcome voice-verification steps in banks and financial institutions where voice recognition is used as part of multi-factor authentication (MFA).
• Method: Scammers gather voice samples of the account holder, replicate the voice, and call the bank’s customer service to gain access. With enough personal information and a cloned voice, they can sometimes bypass security checks.
• Example: Several reported cases in the U.S. indicate that voice cloning has been used to bypass voice-based security protocols, resulting in account takeovers where money was withdrawn or transferred to fraudulent accounts.

5. Targeting Customer Support Systems Using Voice Authentication

• How It Works: Many companies use voice authentication for customer support, making it a prime target for scammers equipped with voice-cloning technology.
• Method: With a cloned voice, scammers can trick customer support into allowing account changes or authorizing transactions. By pretending to be the legitimate customer, they can request password resets or modify security details.
• Example: In one case, scammers targeted a telecom company’s customer support line, using a cloned voice to reset passwords for email and financial accounts, effectively taking control of the victim's digital identity.

Preventive Measures and Challenges

• Voice Biometrics Improvement: Companies are improving voice biometrics to detect subtle discrepancies in synthesized voices. However, it’s a race against the increasingly sophisticated algorithms used in voice cloning.
• Employee Training and Awareness: For businesses, educating employees about such threats and encouraging confirmation via multiple channels (e.g., verifying unusual requests through emails or personal meetings) can help prevent BEC scams.
• Multi-Factor Authentication: For both companies and individuals, multi-factor authentication (including something other than voice verification) is essential to counter voice-cloning risks.

AI voice cloning has added a new, challenging layer to cyber fraud by leveraging AI's ability to recreate voices with high fidelity. With voice verification becoming common for both personal and professional transactions, it’s essential for both organizations and individuals to remain vigilant and adopt robust authentication protocols that go beyond voice alone.

 

 

 

How can legit businesses even compete with street vendors?

My wife ran a small eatery for 17 years.

During this time we had'

• A Shops and Establishment License.
• A Fire Safety Certification and License.
• A FSSAI License
• A Food License (before FSSAI came into play)
• A Municipal Corporation License
• A Lease deed for the shop
• No Child labor
  

We were paying rent which included property tax and also maintenance (although paid by the owner, he was recovering it from us in the rent).

After this, we were subject to administration by the society and had to take care of our own garbage.

Before demonetization we had a staff compliment of 10 people including two family members.

After demonetization, the business went down and we reduced staff to four people including one family member.

Last year, in June 2023, we closed down the business as the owner doubled the rent from existing 18,000 (for a 200 sq ft shop) to 35,000/-

Compare this with a road side vendor.
In most cases none of them have an FSSAI license or registration.

• They have no Shops and Establishment License.
• They have no Fire Safety certification or license.
• They have no Municipal Corporation sanction or license.
• They leave their garbage on the road at the end of the shift.
• Generally employ child labor.
  

They have protection from local politician and local goons. They pay a daily hawker fees of 50-100 Rupees and another 100 perhaps in bribes.

They have no rent to pay. They are not subject to any inspection.

And they carry on their business right outside any popular store.

At the end of the day, people often compare prices not realizing that it is not a level playing field.

While I have nothing against anyone trying to earn an honest living but what about those who are operating within the legal framework and are accountable if things go wrong?

The street vendor will run away if there is a fire or an explosion. He will not be held responsible if you fall sick or there is food poisoning. He is not paying any rent and creating the most amount of garbage on the roads.

Yet, everyone wants to support them, leaders go their vends and are seen eating or drinking tea from such vends.

What kind of message are our leaders sending?

As SC strikes down use of Aadhar for Date of Birth, Address, questions arise about it.

 

What is the Aadhar Card?

Aadhar Card was created as a reliable document for direct transfer of benefits from the Government to the deserving.

It was created under the Aadhar Act.

The purpose of this card was to ensure that the subsidies released by government for its various schemes reached the beneficiary directly and that no one else could take any money out of it.

Thus a person working under MNREGS (Mahatma Gandhi Rural Employment Guarantee Scheme) for 100 days as guaranteed under MNREGA would get the money in his / her bank account or be paid only on presentation of Aadhar Card with bio-metrics locked into the number.

Thus, the only purpose of Aadhar card was to ensure correct delivery of subsidies.

It was essentially meant for those below Poverty Line and who take subsidized items from the Government. Like Ration, Gas, Kerosene, etc.

Somewhere down the line, someone decided that every Indian should have an Aadhar Card. Thus a campaign was mounted and pressure applied to get people to get Aadhar Card made even when they were not taking any subsidies.

This was later struck down by the SC in a judgement where it said that Aadhar Card is required only under the Aadhar Act and no one else who did not take subsidies need to have an Aadhar Card.

Aadhar Card was created based on your existing documents, thus if someone produced five sets of fake documents, he could have technically created five Aadhar Cards as this did not involve any cross checking of the submitted documents.

Aadhar card is now recognized as not good enough for date of birth or address proof and it was already said that it is not a proof of citizenship.

In the SC judgement, in a twist, SC made it compulsory for people to link PAN to Aadhar. But even that now seems useless as Aadhar is neither proof of date of birth nor address nor even of citizenship.

Due to this perverse twist, SC, although striking down the need for Aadhar for everyone, indirectly created a back door for the government to require Aadhar.

Income Tax does not come under any subsidy scheme by any stretch of imagination.

The culprit for this twist is none other than Justice D.Y. Chandrachaud (as far as I can remember).

Nathuram Godse and Vikash Yadav, the parallels are uncanny

 

On 30th January 1948, Nathuram Godse fired on Mohandas Karamchand Gandhi, killing him on the spot. He tried to escape but was caught and handed over to the police.

He had a long trial and a case which named many conspirators, including Savarkar, were charged for the murder of Gandhi.

During this entire trial, RSS, disowned Nathuram Godse, although he and his family claimed that he was a member of RSS and a close confidant of Savarkar.

Savarkar escaped sentence as not enough evidence was found against him.

Nathuram Godse was found guilty and sentenced to death.

Cut to the present.

Vikash Yadav was working for CRPF. He was drafted into RAW (Research and Analysis Wing), our governments spy agency.

He was given a task.

That to find a Sikh Separatist leader in US and plan his execution on US soil using a US resource. This is the allegation contained in the FBI indictment on the plot to assassinate the Sikh Leader.

He found one person, a runaway from India, a drug dealer who was living in US in an effort to escape prosecution in India.

The drug dealer, Nkhil Gupta, was approached and given a contract to kill. A cash reward of 100,000 US Dollars was promised.

15,000 US Dollars were paid and this was recorded by FBI agent.

Actually an FBI agent was working on the Indian drug dealer trying to expose him, but the drug dealer thought that FBI agent was a trader and a rogue element like him.

He asked the FBI agent (who was under cover) to arrange a hit on the Sikh Leader.

That is how FBI came to know of this plan.

They trapped Nikhil Gupta and as he tried to escape got him extradited from Europe.

The US Department of Justice indictment names him and Vikash Yadav as the culprits.

Meanwhile, Vikash Yadav was caught trying to extort money from a cafe owner in Delhi. This cafe owner himself was an accused in another extortion attempt and an accused in the eyes of Delhi Police.

Delhi police is run by Home Minister Amit Shah.

Canada too exposed how RAW was involved in killing another Sikh Leader in Canada and named Lawrence Bishnoi's gang and Amit Shah as the people involved in the killing. They claim that they have audio recording of Amit Shah talking about this.

Vikash Yadav was released on interim bail after four months in Tihar. He was later given regular bail with the condition that he should remain in Delhi and that his mobile should remain on all the time.

When the case exploded, Government of India told the US authorities that Vikash Yadav no longer works for the Government. (just like RSS disowned Godse).

Some journalists traced Vikash's village and spoke with his mother. The mother was bewildered and wanted to know how come the government is not doing anything to save Vikash and why he went to jail and why he was fighting for an appointment letter from RAW?

Now it seems that Vikash and his wife both have visited their village.

If that is true, then this is a clear violation of his bail condition, that he should stay in Delhi.

But then Delhi Police is under Amit Shah.

Are you able to connect the dots?

Read this report on the alleged extortion done by Vikash Yadav, how it looks all arranged and framed.

Banks really don't need your deposits.

 

 

 

According to a report in the press, IDFC First Bank's report reads like this;

 

Total Deposits: 2,18,026 Crores

Total Loans: 2,22,613 Crores

 

That shows that IDFC Bank has given loans more than the total sum of deposits its holds.

 

Does that make you wonder how come this has happened or allowed to happen?

 

Well, here is the secret.

 

Any Bank, which has a banking license, does not actually need your money to give loans. Once it has a license, it can borrow from RBI (who is the lender of the last resort).

 

RBI can create money out of thin air. Like RBI did from 2016 to 2023. On 30th December 2016 the total money in the system was 16 Lakh Crores. On 30th December 2024, that became 35 Lakh Crores.

 

RBI is owned by Government of India.

 

RBI gives money to banks as and when they require funds and earns interest on this money, created out of thin air.

 

RBI last year gave a dividend of 2,10,000 Crores to Government of India. All earned out of money created out of thin air.

 

RBI is Government's ATM.

 

Then why do banks take deposits?

 

Banks take deposits because deposits are cheaper than borrowing from RBI. Savings bank rates are as low as 2.7% (SBI).

 

Money lying in current account (where minimum balances are anywhere between 10,000 to 50,000) are interest free.

 

 

So, if everyone withdrew their money from IDFC First Bank, RBI will give the bank all the money they want and prevent the bank from failing!

26,257 Crore extra income for Center as edibile oil import duty increase kicks in.

 Did you notice the rise in the price of edible oils on your last trip to the mall, grocery shop?

In this festive season, when oil consumption soars, the government of India, in its own wisdom, increased customs duty on crude edible oil from 5.5% to 27.5% and on refined edible oil from 13.7% to 35.7%, a jump of 22%.

This had led to an increase in the price of edible oil by almost 30% in retail.

Palm oil, used by most producers like Haldiram, has become 130 Rupees per liter against the earlier price of 100/- Likewise, the price of all edible oils, including sunflower oil have all gone up by around 30%.

Edible oil is consumed by the masses and this increase in customs duty is going to affect them the most.

Already, according to estimates, the poor are spending 52% of their income on food and now this will only add to their food costs.

India imports 119.35 Lakh Metric Tons of edible oil (2023-2024 figure). That translates to 119.35 x 1,000 (Kg) x 1,00,000 = 11,93,50,00,000 Kg.

If you take increase in price of 22 per kg, then this increase translates to 2,62,57,00,00,000 Rupees or 26,257 Crores per year.

The government is going to earn 26,257 Crore extra the next year by increasing this custom duty.

This burden will be borne by the 90% poor and middle class. The rich 10% are anyway not affected by such price rises.