Dr M Khalid's global village blog

Easing means Japanese bank printing more money. It brings the value of the currency down. Meaning that the goods will become expensive. Gold  reflects the actual buying power of any country's currency. FOREX-Yen slips after BOJ easing, Spain downgrade dents euro Fri Apr 27, 2012 1:14am EDT * BOJ expands bond buying by 10 trln yen, ups ETF buying * Traders doubt BOJ move leads to sustainable fall in yen * Spain hit by two-notch downgrade by S&P * Euro briefly sheds 60 pips after Spanish downgrade * Eye on Shirakawa, Italian bond auction, Spanish debt mkt By  Hideyuki Sano TOKYO, April 27 (Reuters) - The yen slipped on Friday after the Bank of Japan  eased monetary policy, going slightly beyond market expectations in its much-awaited easing steps, while the euro was bruised after Standard & Poor's hit Spain with a two-notch credit rating downgrade. The Bank of Japan increased bond buying by 10 trillion yen, expanded the target of its bond purchas...

The commodity metal copper is known in the financial world as "Dr. Copper," because, historically, the copper spot price has predicted the health of the global economy, as it is an important input resource to a huge number of industrial processes. With all of the bad news coming out in the last few weeks, after a seemingly upbeat start to the year, and the Fed's take on the economy out today, it seems a good time to check in on our trusty time-tested bellwether. It is an opportune to discuss the metal as Cesco Week, the leading series of events in the world copper industry, just wrapped up in Santiago, Chile. According to the  FT : "The consensus at Cesco week, from within the mining industry and beyond, was that much of the supply would not arrive on time." Supply problems facing the industry are many.  Eric King  interviews many heads of mining firms, and has identified a pattern; a dire shortage of mine engineers and contractors. The CEO's...

MELBOURNE: The world economy will face a crisis in the next two years even bigger than the downturn currently buffeting the global financial system, a respected US forecaster warned on Monday. Author Harry S. Dent, who predicted Japan's slide into recession in the 1990s and the present slump, dismissed claims the worst was over for the world economy and that "green shoots" were emerging from the fiscal firestorm. Dent said post-war baby boomers in the Western world were spending less as they aged, in a long-term demographic shift similar to that seen by Japan in the 1990s. "Peak spending is age 46, so we've been saying for decades, we're going to have this great, great boom and then around the end of this decade baby boomers are going to peak in spending, prepare for retirement," he said. "(Their) kids are going to leave the nest and the economy's going to slow just like Japan did in the 1990s. "Japan has already gone through...

FROM the moment they entered the workforce in the 1960s, baby-boomers began to shape America’s economy and politics. They will do the same as they leave. The first of the estimated 78m Americans born between 1946 and 1964 turn 65 in 2011, the normal age for retirement. As their ranks swell in coming years, the burden of financing their retirement will mount. So will their electoral importance. Retiring boomers will squeeze the economy from two directions. The number of people enrolled in Medicare (federally funded health care, available from the age of 65) will grow from 47m in 2010 to 80m in two decades’ time. Enrolment in Social Security (federally funded pensions, available from the age of 62-67, depending on your birth year) will grow from 44m to 73m. The cost of the two programmes will grow from 8.4% of GDP in 2010 to 11.2% by 2030. Meanwhile, as boomers retire, the workforce will grow more slowly, as will the taxes to finance their benefits. The pensioner-worker imbalance an...

India slashed its benchmark interest rate by a greater-than-forecast half a percentage point, seeking to bolster growth with the first reduction since 2009. Inflation might limit the room for further cuts, the central bank said. Governor Duvvuri Subbarao lowered the repurchase rate to 8 percent from 8.5 percent, the Reserve Bank of India said in a statement in Mumbai today. The outcome was predicted by three of 25 economists in a Bloomberg News survey. Seventeen expected a 0.25 percentage-point cut and the rest predicted no change.   India's central bank Governor Duvvuri Subbarao. Photographer: Joshua Roberts/Bloomberg The move stoked gains in the rupee and government bonds, and may buttress demand in an economy hampered by polit...

Best websites for Indian Railway , Bus, Air ticketing and other info Best site to plan your travel and one of the most popular in India, an initiative of Sabeer bhatia, the founder of Hotmail: http://www.arzoo.com/ A good site to plan your holiday: http://www.holidayiq.com/ For railway reservation and train details: The most user friendly website: http://indiarailinfo.com/ The government website mostly useful for maor stations and PNR status enquiry: http://www.indianrail.gov.in/between_Imp_Stations.html Another useful site: http://erail.in/ To get online reservation through official railway website(useful as cancellation charges are minimum): http://www.irctc.co.in/ To get online reservation if the above site is not working fine on your internet speed: http://www.makemytrip.com/ ================ For Bus tickets: http://www.redbus.in/ ========= To know the air ticket availability for the whole month with mini...

China to allow all trades to settle in yuan, encourages use as reserve currency     China aims to allow all exporters and importers to settle cross-border trades in the yuan by 2011, according to the Chinese central bank, reported Reuters.   Moreover, China will “respond to overseas demand for the yuan to be used as a reserve currency” and allow the yuan to flow back into China more easily.  This is all part of China’s plan for the internationalization of its currency, which may, in the decades to come, threaten the global ‘market share’ of other currencies like the US dollar.  Previously, China also announced that bilateral trades with Russia and Malaysia will begin to be conducted with the yuan and the ruble and ringgit, respectively. From: http://www.ibtimes.com/articles/117991/20110302/china-yuan-trade-reserve-currency.htm

One of the root causes of hyperinflation is the rapid expansion of the money supply . 39 countries have faced it in the past. See:  http://en.wikipedia.org/wiki/Hyperinflation  The government doubled the money supply overnight by simply printing money out of thin air, taking us from $800 billion in mid-2008 to $1.7 trillion by December 2008. And now in 2011 we're at $2.5 trillion. Inflation usually lags monetary increases by about 2-3 years. We are sitting right at 2.5 years from the doubling of the money supply. There have been 30 cases of hyperinflation in the last 100 years - In Germany's Weimar Republic in the early 1920s and most recently in the Zimbabwe in 2008. A lifetime of saving was wiped out overnight. That's why it's so important to have food storage. Many economists predict hyperinflation by 2015, and some say as early as 2012. It's unpredictable but everyone agrees it's inevitable. Increased inflation is already showing its ugly h...

The government on Thursday formally admitted it had faltered on industrial growth data for January by overestimating sugar production more than two times. The government said it was a "one-off aberration". The January industrial growth figure was drastically revised down to just 1.1 per cent against the earlier 6.8 per cent. That led government advisors, economists and industry players to raise questions over the very relevance of the Index of Industrial Production data. The goof-up could be bigger and data in other commodities are likely to have been misreported as well, since sugar has just 1.5 per cent weight in the IIP, economists say. It can explain less than half of the 5.7 percentage-point over-reporting in the provisional index for the month of January. This was the third blunder in government data collection in a year and a half, the two other being on exports last year and GDP numbers for the first quarter of 2010-11. Meanwhile, provisional February industrial growt...

A Seshan: The hidden Ponzi scheme An internal debt trap looms as the Indian government is increasingly forced to borrow to pay interest on existing loans "The debt is not, that is to say, to be regarded as a residual among quantities of economic policy…. Thus debt management can be regarded neither as something to be, as it were, left to the last and adjusted to all other policy decisions, nor on the other hand, as a consideration which should override all other policy decisions; it has to be integrated with a variety of measures in the pursuit of the broad aims of economic policy." Report of Radcliffe Committee on the Working of the (British) Monetary System (1959) The challenges facing the government on domestic debt management will be tremendous in the coming years. The total amount of debt due for redemption in the 12th Plan period (2012-17) is Rs 7.81 lakh crore or Rs 1.56 lakh crore per year. The peak will be reached in 2016-17 when it will be Rs 2.31 lakh cro...

As an immediate prescription to set things in the right direction, Rajan calls for a complete relook at the public sector, including the breaking up of monopolies like Coal India Limited, while giving a level-playing field to the private sector. Addressing the graduation ceremony of Indian School of Business (ISB) on the theme whether the Government in India is performing its appropriate role, he said: "Even as the world becomes more competitive, India's star has dimmed in the last few months, as our governance is besmirched by corruption scandals and our macro economic health has deteriorated." Rajan, who is also currently an economic adviser to the Prime Minister of India, was critical of the recent government actions such as the change in tax laws in the light of the Supreme Court judgement on the Vodafone case. A government that changes the law retrospectively at will to fit its interpretation introduces tremendous uncertainty into business decisions, and it sets it...

HYDERABAD, APRIL 7:  Corruption scandals and deteriorating macro economic health have marred the country's governance. This has led to the domestic industry not wanting to invest in the country any longer, according to Dr Raghuram Rajan, Professor of Finance at University of Chicago. "Alarm bells should start ringing when the domestic industry no longer wants to invest in India, even while eagerly investing abroad," he said. Delivering the graduation day address at the Indian School of Business (ISB) on 'Indian governance and change', Dr Rajan said that even though there are many examples of achievement in India such as Delhi Metro or success of milk production, "we should also be realistic about India's deficiencies". Dr Rajan, who is also Honorary Economic Advisor to the Prime Minister, said that the Government "does too much of what it should not do and too little of what it should do". The Government ownership hurts public secto...

 Austrian School of economics. Theorists of the "Austrian School" who wrote about the Depression include Austrian economist Friedrich Hayek and American economist Murray Rothbard, who wrote America's Great Depression (1963). In their view and like the monetarists, the Federal Reserve, which was created in 1913, shoulders much of the blame; but in opposition to the monetarists, they argue that the key cause of the Depression was the expansion of the money supply in the 1920s that led to an unsustainable credit-driven boom. Ref: http://www.ukessays.com/essays/history/causes-and-economic-indicators-of-the-great-depression-history-essay.php http://en.wikipedia.org/wiki/Great_Depression

Walmart CEO Warns Hyperinflation http://www.youtube.com/watch?v=Vd0QvpdJD6Y&feature=g-vrec&context=G2b00bbbRVAAAAAAAABA What is hyperinflation and which countries have seen it? http://www.youtube.com/watch?v=AC_kjcuHpZw To undertand in a very brief and simple way what caused gold and food prices to go up so much recently watch these two videos: http://www.youtube.com/watch?v=hx16a72j__8 http://www.youtube.com/watch?v=oAR0VRLRGHE ----- If you wish to gain more logical insight: http://drkhalid.blogspot.com/2012/08/why-respected-economists-say-gold-has.html

As seen below this video, it was uploaded into youtube in june 2009 - gold doubled since that time. Charles nenner, in this interview predicts delfation and then years of Inflation. http://www.youtube.com/watch?v=O4XW3_zSxQc&list=PL556B8856F08A9EF0&index=10&feature=plpp_video What is deflation and how it affects us : http://www.youtube.com/watch?v=FPh6EDv0Eew What is inflation and how it affects us: http://www.youtube.com/watch?v=yahEP620480&feature=relmfu

http://www.youtube.com/watch?v=_WVtpao0KSM&list=PL556B8856F08A9EF0&index=24&feature=plpp_video  This video is a basic overview of U.S. imperialism toward Iran that began at the behest of the British Government and big oil interests including British Petroleum also recently known as BP. The United States' own CIA led it's first coup to overthrow a foreign leader against Mohammad Mosaddegh in 1953, The U.S. has suffered "Blowback: ever since, all the while the supposed leaders in Washington continue to demonize Iran's leaders on flimsy grounds as more pretense to continued Middle East war and occupation by the U.S. Study those who actually vote against getting the U.S. into wars based on false pretense. http://ThePresident.Com ---- There Is No Alternative: (Arab) revolt 2.0 In large letters found on the title page of the delivered before Christmas January 2013 issue of the "Socialist newspaper" (POI) an appeal entitled "Th...