Stealth attacks will not be able to fund our fiscal deficit
Anonymous bond-buying by RBI can’t go too far but India can explore options like a big loan against equity
A severe Siberian winter in 1972 destroyed much of the wheat crop in the Soviet Union. The Soviets were keenly looking at foreign sources to meet their large food deficit. Early that summer, they had signed a large grains-for-peace deal with America, agreeing to buy wheat from the US over multiple years. This was a prized deal for the Richard Nixon administration, much wearied by the Vietnam War and in need of re-election. It was expected to bring some cheer and fetch fat profits for American farmers. The Soviets had been “arm twisted" into an assured purchase of at least $200 million worth of wheat per year over three years, with a cumulative total of no less than $750 million. For this, they were also given access to private grain traders in the US. Unknown to the Americans, the Soviets secretly split up their buying teams, each working on a need-to-know basis. Through tough negotiations at covert meetings with large private traders held in New York, Washington and Chicago hotel rooms, Soviet buyers bought one fourth of 1972-73’s US wheat output in forward deals. They bought a billion dollars worth of grain in just one month. By the time the Americans woke up, it was too late.