Global Currency Crisis

[nachi naga]

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What this means is, if we look at just these states, then the ranking will be even lower, may be at the very bottom next to Ethiopia, Congo, and Afghanistan. Is it any wonder then the Naxalites are able to have sway in these parts.

Economic growth means nothing without economic justice. All the schemes coming out of New Delhi are schemes only, schemes to line the pockets of everyone in between the Treasury and the needy.

Hope someday Indians will achieve the same level of human development as at least the Sri Lankans -- reaching the level of the Cubans is very well impossible during my life time or that of my nephews and nieces who still live in India.

Cheers!

india is good thriving country,yes we have issues,but slow and steadily,its getting chipped away owing to decent countries like usa,pakistan,sri lanka,bangladesh,nepal,sikkim,butan,china.......all cooperating in a consensus manner to alleviate the problems.naxalite problem is going on from early 70's,maybe deliberately also,so that law enforcement and home minister has some work to do!!

 

[RVR]

The surplus labour is likely to drain out in China in the near future and cost of production is like to go up in the near future. There is an interesting article in Reuters.

COLUMN - China hits a welcome turning point: James Saft | Reuters

All the best

 

[RVR]

Gold likely to raise further

Gold may jump to $1300 as investors shun currencies-Bullion-Markets-The Economic Times

All the best

 

[sangom]

The surplus labour is likely to drain out in China in the near future and cost of production is like to go up in the near future. There is an interesting article in Reuters.

COLUMN - China hits a welcome turning point: James Saft | Reuters

All the best

As an Indian I also will wish that China does not become the (only) super power in the world, but the Chinese are so inscrutable in their ways and thinking, that the western forecasts have only slim chances of coming true. Pl. see

Q+A - Is China finished as a low-wage manufacturer? | Reuters

You will find that the strikes are cleverly orchestrated moves so that the foreign-owned companies get to repatriate less of profits and Chinese companies, which may already be there, or may come up soon, will be able to compete very well.

We should also know that the chinese could get all the nuclear and space travel technology surreptitiously from the US and that the foreign companies mfg in China now have to agree to technology transfer after stipulated number of years; this even Microsoft had to agree to!

 

[Nara]

Greetings!

I am sure many here curse me for being a fly in the ointment, but the problems India faces are of epic proportions. All focus on growing the economy is not a solution, if anything may even exacerbate the problem.

Here is another statistic about mothers in which the mother revering India falls woefully short. India figures prominently in The State of the World's Mothers: 2008 report.

India is numero uno, top in the world, we are the gold medalist in gender survival gap. Indian girls are 61 percent more likely than boys to die between the ages of 1 and 5. Since 1990,the survival gap between girls and boys has widened.

The report includes Mother's Index Rank. Such things as life-time risk of maternal mortality, under-5 mortality, maternity leave policy, preschool enrollment, and political status of women. For the purpose of ranking, countries were divided into three tiers -- Tier-I is more developed countries, Tier-II is less developed countries, and Tier-III is least developed. India is at the bottom of Tier-II below Congo, and above Swaziland. (page 42 of the report). Israel tops Tier-II followed by Cuba.

More people must be made aware of these shameful statistics so that the feet of the government is held to the fire. Leaving the least among us behind is no way to grow.

Cheers!

 

[nachi naga]

dont get pregnant in usa

More than two women die every day in the USA
from complications of pregnancy and childbirth.
Approximately half of these deaths could be prevented
if maternal health care were available, accessible and
of good quality for all women in the USA.

http://www.amnestyusa.org/dignity/pdf/DeadlyDeliverySummaryHiRes.pdf

 

[RVR]

Prof Nara Sir,

I fully agree with you that India has to go a long way in the development process.

There is wide variation between states within India. For example, Tamilnadu and Kerala have developed much better than North Indian states like UP, Bihar, Madhyapradesh etc.

But sitting in Tamilnadu, I could see lot of developments at ground level. For example every Panchayat Union has a Qualified Medical Professional and the system works very well right now. Most of the child births are taking place only in hospitals and crude birth is almost eliminated.

Last month one of my staff delivered a child in a Panchayat Union hospital and I personally visited to see them. The conditions were quite good and the entire treatment is done free of cost.

However the same system may not prevail in less developed states.

Let us hope things improve in the future.

All the best

 

[AnanthaNarayanan]

Anshu Jain's appointment as Deutsche Bank chief questioned (Lead)
Berlin, June 18
The appointment of Indian-born investment banker Anshu Jain as head of Deutsche Bank, the nation's biggest bank, has come under criticism in Germany on the ground that he is not able to speak German fluently.
http://www.prokerala.com/news/articles/a144557.html

 

[AnanthaNarayanan]

Exchange rate woes, Euro zone crisis may hit exporters: FICCI

New Delhi, June 20
A fluctuating exchange rate, the debt crisis in Europe, rising input costs and a possible interest rate hike by the Reserve Bank of India may hit Indian exports, says a report by a leading industry lobby. Exchange rate woes, Euro zone crisis may hit exporters: FICCI

 

[RVR]

European crisis is definitely affecting our exporters. However Chinese Yuan appreciation is going to help exporters to some extent.

Already there is a liquidity problem with Indian banks and call money rates have started raising. RBI may not raise the rates as it will further worsen the liquidity problems. Since Government deficit is coming down because of 3G auction, Government borrowing is likely to be down this year.

Only problem right now is inflation and unless we produce more, it is not going to be solved.

All the best

 

[RVR]

There is an article on the impact of Chinese Yuan appreciation on India.

http://www.moneycontrol.com/news/fii-view/what-impact-will-yuan-reform-haverupee_465242.html

All the best

 

[kunjuppu]

i do not understand something about the yuan value going up.

yes, under normal trading rules, if yuan goes up compared to the dollar, the u.s. manufactured goods are cheaper and u.s exports should rise.

does this rule not only apply only when both countries produce the same goods or similar substitutable goods?

we have in china, literally the world's workshop. there is no other country, definitely not the u.s., to the best of my knowledge, which can immediately crank up its idle factories and flood the world with goods hitherto manufactured in china, and that too at a cheaper price!!

the west deliberately exported their factories, manufacturing base, knowledge base to china, all in return for cheaper manufactured products, based on the assumption of an endless supply of cheap chinese labour.

now, if the chinese yuan is up, and china is the only manufacturer in quantities of u.s. needed consumer goods, is not the american consumer end up paying more for the same product? does this need result in china getting MORE u.s. dollars and further increasing its trade deficit?

barring boeing planes, i cannot think of one major u.s. product or crop that china needs. it is all so confusing.

 

[sangom]

i do not understand something about the yuan value going up.

yes, under normal trading rules, if yuan goes up compared to the dollar, the u.s. manufactured goods are cheaper and u.s exports should rise.

does this rule not only apply only when both countries produce the same goods or similar substitutable goods?

we have in china, literally the world's workshop. there is no other country, definitely not the u.s., to the best of my knowledge, which can immediately crank up its idle factories and flood the world with goods hitherto manufactured in china, and that too at a cheaper price!!

the west deliberately exported their factories, manufacturing base, knowledge base to china, all in return for cheaper manufactured products, based on the assumption of an endless supply of cheap chinese labour.

now, if the chinese yuan is up, and china is the only manufacturer in quantities of u.s. needed consumer goods, is not the american consumer end up paying more for the same product? does this need result in china getting MORE u.s. dollars and further increasing its trade deficit?

barring boeing planes, i cannot think of one major u.s. product or crop that china needs. it is all so confusing.

Kunjuppu,

A very nice question! If yuan goes up, we in India hope to be competitive and think we can manufacture and export a lot and take a major share of what China is earning now. IMO, this is easier said then done, because our mfg ability is limited and unless the USA (Ulhasnagar Sindhi Association of Bombay) gets revived, we will not be able to get any major share of what China's costly exports will lose. Secondly, yuan appreciation or not, the big US investors have been assured of a very good return by the Chinese and so US will, in all probability, continue to rely on China, as hitherto.

The western press is hoping that things will turn bad in China and US will benefit by it. They are just trying to create a climate, but the Chinese, IMO, are cleverer! It has already been reported that the Chinese announcement does not mean a free float of the yuan, not even substantial appreciation, but a small, marginal percentage adjustment whhich may be repeated as time goes.

 

[kunjuppu]

...The western press is hoping that things will turn bad in China and US will benefit by it. They are just trying to create a climate, but the Chinese, IMO, are cleverer! It has already been reported that the Chinese announcement does not mean a free float of the yuan, not even substantial appreciation, but a small, marginal percentage adjustment whhich may be repeated as time goes.

sangom,

very very very true. yes, the west is hoping, that china will behave like the west, go into excesses, and screw up its economy.

what the west don't want to acknowledge, is that china is ruled by visionaries, who have a very clear idea of what china is, and wants to be.

in one reflective article i think in the new york times, i remember reading, as to how few or no mistakes the chinese have made, when it comes to either foreign relations, or managing their economy.

all in all, they are willing to sacrifice a couple of generations, to really leap frog across economies of the west and by doing so, rule over the world through their manufacturing and money power.

we in india, have a lot to learn from the chinese.

 

[sangom]

sangom,

very very very true. yes, the west is hoping, that china will behave like the west, go into excesses, and screw up its economy.

what the west don't want to acknowledge, is that china is ruled by visionaries, who have a very clear idea of what china is, and wants to be.

in one reflective article i think in the new york times, i remember reading, as to how few or no mistakes the chinese have made, when it comes to either foreign relations, or managing their economy.

all in all, they are willing to sacrifice a couple of generations, to really leap frog across economies of the west and by doing so, rule over the world through their manufacturing and money power.

we in india, have a lot to learn from the chinese.

With the world's largest army and its not-so-small navy, air force, nuclear weapons and the weapon delivery systems, and its own bamboo curtain to hide the correct picture from the rest of the world, China has all the potential to overtake US and become the world's only superpower in another 50 years unless of course another Gorbachev comes in China and succumbs to the US enticements.

China may surreptitiously goad the US into another war either in Iran or once again in Afghanistan and thus finish off what little backbone the US has been left with.

 

[kunjuppu]

With the world's largest army and its not-so-small navy, air force, nuclear weapons and the weapon delivery systems, and its own bamboo curtain to hide the correct picture from the rest of the world, China has all the potential to overtake US and become the world's only superpower in another 50 years unless of course another Gorbachev comes in China and succumbs to the US enticements.

.

yes, gorbachevitis has to come from within china itself. maybe it won't be a bad thing after all. for the rest of the world !! no amount of wishful thinking by western press or analyst is going to make the chinese dragon slip, i am confident. the tremors that might shake the government will probably come from the huge millions of migrant labour living in slave conditions on slave wages. let us see if the chinese government is smart enough to manage these people's expectations without much disruption of the factories and social life. (?).

re goading the u.s. into war, unfortunately it does not take any effort. there is a big war party in the u.s. who depend on foreign wars to enhance their careers - ie the u.s armed forces, the weapons and armaments industry. apart from this there are several jingo groups who think the world should be at their beck and call, and is a god given american right to cheap oil and resources. these people overwhelm the good people and ideas from the u.s. which is why it is easier to elect a bush than a obama.

 

[RVR]

"we in india, have a lot to learn from the chinese."

India is a full fledged democracy and cannot match China were there is no accountability for the rulers.

India can never match China but India will develop on its own principles.

All the best

 

[RVR]

China ranks much ahead of India in the most failed states in the world.

Pakistan 10th most failed state of the world: Report -  International News ? News ? MSN India

Economically India is behind China but its rank is much ahead of China when it comes best rules countries in the world.


All the best

 

[tbs]

hi folks,
think about india..........

Majority of govt officials are corrupt: HC

regards
tbs

 

[AnanthaNarayanan]

INDIA & US WLECOMES CHAINESE MOVE TO FLEXIBLE CURRENCY

Sensex in red after Chinese currency euphoria dampens

Mumbai, June 22
A benchmark index for Indian equities was trading in the red Tuesday as traders booked profits after a 300-point rise the day before and the global euphoria over China's move towards a flexible currency died down http://www.prokerala.com/news/articles/a145333.html

 

[kunjuppu]

INDIA & US WLECOMES CHAINESE MOVE TO FLEXIBLE CURRENCY

Sensex in red after Chinese currency euphoria dampens

Mumbai, June 22
A benchmark index for Indian equities was trading in the red Tuesday as traders booked profits after a 300-point rise the day before and the global euphoria over China's move towards a flexible currency died downhttp://www.prokerala.com/news/articles/a145333.html

anantha,

this is the biggest joke played by china against the world. the chinese yuan is 'expected' to rise by 5% over 5 years or something like that.

for anything to have effect, the chinese have to revalue their yuan by atleast 20% NOW. immediate.

they are having a good laugh and a great PR victory at the expense of the west.

 

[sangom]

anantha,

this is the biggest joke played by china against the world. the chinese yuan is 'expected' to rise by 5% over 5 years or something like that.

for anything to have effect, the chinese have to revalue their yuan by atleast 20% NOW. immediate.

they are having a good laugh and a great PR victory at the expense of the west.

Dear Anantha, Kunjuppu,

With my meagre knowledge of Share Markets, I think we can find another increase of about 5 or 6 percentage points in the index when the so-called profit taking will push it down again. The rhetoric about substantial yen revaluation is just propaganda stuff, IMO.

I was in a bank and a senoir officer once explained to me (he was a brahmin and explained to me in Tamil the working of Share Markets thus) that it was quite similar to churning curd/buttermilk and taking away of the butter; a few persons with millions and billions will go on buying and raise the stock prices, then they will sell and take the profit. The small fry who are lucky will also benefit; some thing like நெல்லுக்கிறைத்த நீர் வாய்க்கால் வழியோடி புல்லுக்கும் ஆங்கே புசியுமாம்... The profits so taken nowadays benefits what is known as FDI (Foreign Direct Investments) the sources of which are generally dubious and go to Tax havens. In the pre-Independence days it was G.D. Birla and people like him whose profits remained in India and benefitted our country, in one way or another.

 

[RVR]

There is an interesting article by Mckinsey on the implications of proposed devaluation of Chinese currency.

Globalization?s critical imbalances - McKinsey Quarterly - Strategy - Globalization

All the best

 

[sangom]

There is an interesting article by Mckinsey on the implications of proposed devaluation of Chinese currency.

Globalization?s critical imbalances - McKinsey Quarterly - Strategy - Globalization

All the best

A very perceptive article, well-balanced. Will both sides see the welfare of the world as a whole, or, act in their own selfish interests as hitherto in human history, is to be seen.

 

[RVR]

Recovery of global economy is still fragile says Indian Prime Minister

Global economic recovery still fragile: PM - India Business - Business - The Times of India

All the best