^^ Anurag Sanghi has written about this on his blog.
http://2ndlook.wordpress.com/2008/12/13 ... wave-ever/
The answer is Late Morarjee Desai – India’s ex-Prime Minister and Finance Minister. And with Morarjee Desai, were a whole lot of RBI and GOI officials who were behind 40 years of legislation, which created India’s underworld, corrupted 4 generations of India Government officials and reduced the value of Indian savings by Rs.1,20,000 crores. 4000 tons of gold purchased by Indian consumers, during the 1965-1995 period, at a 30% premium at today’s value – do your numbers.
These laws corrupted four generations of Indians – Government and politicians. It made gold in India very expensive – and the Indian buyer remained in poverty longer. Many gold control laws were enacted which stopped all legal gold imports into India.
These laws were derived from two sources. One, the British colonial policy legacy (motivated by exploitative aims). Two, motivated policy recommendations by US sponsored institutions like IMF, World Bank, Western Universities and academics, was continued by Indian Government and RBI. Had it not been for this policy framework, Bretton Woods system would have collapsed within 12 years instead of 25 years. For which Morarjee Desai was allegedly rewarded by the CIA. But, before that it enabled the establishment of the Bretton Woods system itself.
Roosevelt had earlier in 1933, during his New Deal years, nationalized all gold. This restriction was finally eased only on December 31st, 1974, with Executive Order 11825 by Gerald Ford. It was Roosevelt’s gold nationalization which allowed the US to wage WW2 and create the Bretton Woods system.
From 1939, (the start of WW2), gold imports into India, the world’s largest market and also the largest private reserve of gold, were controlled or banned. Not only the largest, but Indian reserves of gold, are also the only significant reserve in the world without a history of war, genocide, slavery or loot, (unlike US, UK, Canada, Australia) or to due nature’s bounty (unlike South Africa, China, Peru, Ghana, etc.).
Gold imports restriction & history’s biggest crime wave
The first effect of restrictions on gold imports in India was on prices. Indian gold prices, on an average, were 30%-40% higher than international prices. The other thing that happened was that gold imports went underground. Gold imports (illegal), called smuggling, spawned the biggest criminals that India has seen.
The common threads in this were, of course, America, drugs, underworld, war, corruption, warlords – but what made all this possible was Indian appetite for gold.
All this was made possible by the Indian hawala system of money exchange. Hawala made money transfers safe, instantaneous, at a low cost. Traditional Indian ships from a thousand ports in Goa, Maharashtra and Gujarat sailed with this contraband and brought back gold.
The countries comprising these Golden Triangle /Crescent are India’s neighbours. The Indian underworld transported drugs through India. These drug shipments originated, were acquired, grown and traded from the Golden Crescent and the Golden Triangle.