Inflation:Is it local or global

1) OIL at 140$ a barrel. The govt has just awaken and tried to reduce a slice of oil subsidy and pass off the burden to the people.But why so late. Fiscal deficit has risen to 4% of GDP as a result of this subsidy.
2) Our country is not fortunate to be a oil economy. However, we could have followed what Brazil has done by developing ethanol based oil economy.We are a agricultural economy and there is no dearth of sugarcane in our country which can be used to convert to ethanol .
3) I am surprised at the inflation.Every year , it is 5% (minus oil inflation) which means at Rs 1 lakh after 15-20 yrs is 50000 .
4) Unreal Estate : A 1 room Kitchen in Goregaon costing 25 Lacs. A 1BHK in Andheri demands rent of 13000-15000 Rs.The Govt is not perturbed .
Whereas Onion rises to Rs 40/Kg. A price control commitee is establish to probe.
Lets investigate if cost of a flat can be 40 Lacs for 1 BHK.Lets analyse
1) An upcoming flat comes in Andheri with Rs 8000/sqf with possession date Dec 2009.
Builder is freed of the cost as it passes on the cost to Level I Investor who buys flats at the offer price of 8000/sqf.
Level I Investor again passes it to level II investor at 9000/sqf .By Dec 2009, the flats has already changed hands 3 times and price has come to 10000/sqf.Now comes the actual buyer.
The buyer desperately needs the flat and somehow agrees to buy at 10000 hoping that it may become 12000 by next yr.
We can apply the same logic to any commodity like potato,onion.
Imagine a housewife buying a Kg of onion at Rs 200/Kg so that she can sell it to another at Rs 300 who actually needs it.
I agree that cement , steel, land price all have increased.But has it hiked so much that a flat a Marol Naka(Andheri) commanding 1500 psf is now 8000 psf(around 6 times in 4 yrs).
The govt need to intervene and seal all such deals.Because we are still a socialistic form as well where govt protects the interest of people.
5) Idea of idea economy is to distribute money who generate services and are productive.
However, because of the realestate boom, so many unproductive people have become superrich.
Imagine a ferry wala in dadar becoming a crorepate within 5 yrs.With absolute no idea how to spend it, it indulges in unproductive means like gambling .
A Software engg goes to America to sell his services for 5yrs, earns 40 lacs and comes back to Mumbai to find that he is still too poor.He spends all to give it a ferry wala flat owner in Andheri .
He has nothing now except a 1 bHK flat to indulge in productive work for the economy.