Recession inevitable, says Goldman Sachs

With all the indications of a meltdown at Wall street and the unemployment rate growing by the day, it seems that the chances of a recession hitting the United states has grown from 25% to that of 50%. With record numbers of defaulters on Mortgage payments, the banks are tightening the strings on all loans and other forms of credit. With the Dollar taking the plunge to new lows against a whole range of currencies, it is no wonder that most of the economists worldwide are predicting that the Recession has indeed began in the United states.Goldman Sachs believes the recession to be inevitable.

The question that everyone is asking themselves is as whether the U.S economy is strong enough to withstand the cold weather than seems to be ahead. The one thing that the president and his board of advisers are hoping to do is to reduce the taxes with the hope that this will rejuvenate the economy. By itself, it may not, but coupled with the Fed cut that is expected to happen by the end of this month, it may well give that much needed boost to the economy at large.

The Fed is hoping that a cut, even as much as 50 basis points may be what the doctor has ordered. But the Fed should also take care to remember that reducing the interest rates by a large margin could have a very negative impact on the whole. The days ahead will surely tell us if the recession has set in or not. It is no longer a question of 'will it happen' but rather a question of 'when will it happen'.

The cost of Nuclear transparency!

The World is fast heading the way of the Nuclear power as the Oil just seems to keep on rising and rising. The way that things are shaping up is worrying many an economist as well as strategic analysts out there for a whole lot of reasons. One of their main concerns can be shaped by a single word and that is, ‘Chernobyl’. The one thing that has everyone so worked about is the amount of transparency in the area of Nuclear reactors. Everyone has a right to be concerned, since any energy company running such reactors would not be interested in coming forward with the necessary details if anything were to go wrong.

With the price of Oil going up into the stratosphere at more than 100$ a barrel, is it any wonder that most of the developing world is taking a deeper look at Nuclear energy as an alternative source of power. With more and more reactors due to come up all across the developing world, it is high time that all the countries got together and ensured that there was total transparency in the running of the nuclear station. That is easier said than done, but the one thing that seems to be paramount on the minds of most of the strategic analysts all over the world is not the very safety of the reactors in question or their viability, but rather the idea of the Nuclear materials being converted for usage as a ‘Dirty bomb’.

The way that things are going on, the whole world is turning to the idea of using nuclear power as a dependable and cheap source of energy. What is more, the developing world, with the likes of China and India not wanting the lack of energy to stranglehold their rapid growth rate, are investing in new reactors at a very rapid pace. The world should realize that nuclear energy is a reality and that every country has a right to it. As it is, the developed world should set an example for others top follow by declaring all information relevant to their nuclear reactors, the ones that they are currently using as an alternative source of power and make it public. Only by increasing the transparency can the road ahead to the Nuclear power be a safe one, one that does not replicate the Chernobyl disaster at any time whatsoever!

Lead poisoning feeding the U.S consumers fear!

We all have heard by now as to what the lead poisoning can lead to, thanks to the publiocity blitz lead by the commerce dept of the United states. The facts are that Lead was found to be in impermissible levels in the products that were mqanufactured in China which gave a whole new meaning to the phrase 'Made in China'. But inspite of the recall of the millions of consumer products, a recent study has found that the consumers in the United states are still attracted to the 'Made in China' goods mainly due to their quite low prices.
But at the same time, the consumers now have a new thing to worry about everytime they purchase a 'Made in China' article. Whether it is okay for humans to handle them or not. The whole controversy is getting blown out opf proportion and India which by way to trade agreement with China is now being told unofficially by the United states to reevaluate the whole agreement as a result of harmful chemicals being used in the manufacture of these products. The United states would like nothing better than to contain China and if economic pressures are used to acheive that, well so much the better.
As for India, the issue of the recall of the Chinese goods and articles is slowly gathering momentum here and it is only a matter of time before the government has to take action on this one. Whether India does follow the U.S lead on this[no pun intended] or not, the damage to the 'Made in China' label has already been done and no amount of damge control by the red dragon can stop the flow of more bad news!

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Nath on the war path on WTO!

WTO tango is causing a headache to many of the countries.they perceive the developed world as using this international trade forum as a means to implement their agenda without giving much leeway.as such the developing countries all want these trade tariffs to be lifted therefore giving the developing bloc a chance to compete on an equal footing.
What is really impressive is that the developing bloc of which the BRIC countries are a major constituent,have gotten impressive results when you think that they had to put up with all sorts of trade tariffs.it is high time that the developed bloc bout their money where their mouth is and show the rest of the world that they are serious about ending the DOHA standoff.one of the sure ways of doing this is to do away with most of these trade tariffs.lets hope that sense will prevail in the developed world and then,we can all move on!

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The Doha shakedown starts!

With the latest round of the WTO-Doha situation due to figure soon in the World Trade arena,the two trade giants each representing the developed and the developing world are meeting today.ladies and gentlemen,i am talking about United states and India.each have their own take on the Doha standoff with India and China clamoring for more leeway from the developed world,and this is with good reason.what makes this latest meeting between the capitalist and the democratic giants is that recently the United states had made a comment in public that they are willing to look into the farm subsidies and that is a big announcement form them considering that it was this very question of farm subsidies that has brought the trade talks to a sort of catch-22 situation with no movements seen on either side of the spectrum.but with this latest move the United states has indicated to the world that it is indeed serious about the trade talks and that they want the Doha issue to be resolved.now all eyes are on the BRIC countries and as to what will be their collective strategy!

united states,india,doha,wto,

Japan to increase cooperation with India!

Isuzu motors is all set to produce midsize buses in India soon.this only highlights the fact that Japan's co-operation with India has increased and the Japanese want to do much more.all of this could be a new apprehension on Japan's part on the rising influence of China.
Of course,Japan is one of China's largest trading partner but that does not mean that the Chinese have forgiven Japan for the war atrocities commit ed on them.Japan has a good reason to be apprehensive of China.China,of late has been more aggressive in business deals even going to the extent of undercutting allies.Japan does not see China as an enemy but rather as an unpredictable enemy of sorts,which naturally is all the more dangerous.either way Japan is all set to increase cooperation with India ten fold and is planning to prop up India as a counter weight to China.

japan,india,china,buses,jtransportation,

Intel corp sets its sights on Vietnam and China!

Intel corp has made plans to set up a semi conductor plant in China and Vietnam.they had earlier made plans to have that factory in India but due to red tape and policy restraints India has lost out to both China and Vietnam.the Industries minister will have a lot to answer for as he had especially contributed a lot to this happening.because of him and his laid back attitude,India has lost out on Billion dollar contract.but one should take heart from all this and make sure that such idiotic messes do not happen again in the future!

China on the backfoot!

China is seeing a lot of its products being returned to it and the phrase "made in china" no longer has that much value in the world today.the problem of course is quality and many manufacturers have cut corners in a bid to make more money.as a result of this,innocent children toys,pj's and other items that have been 'made in china' were turned from ordinary items to hazardous items.
This has certainly caused a backlash of sorts with more and more countries returning the 'made in china' goods.of late there have been rumors circulating about the quality of the Chinese imported food.and now this.on top of came the news that unwashed,used chopsticks were being sent everywhere as new chopsticks.this incident is slowly but surely turning to be a huge headache for China which has been caught on the back foot!

china,goods,money,

China economy tolls worries for the communist government!

With Chinese economy surging far ahead of expectations,this only brings a much bigger headache for the current government who are doing their utmost to cool the already overheated economy.the latest move by the chinese government was to increase the interest rates.but that does not seem to have cooled the economy by any means.
The chinese government is fast running out of options and if they do not rein the economy sooner than later,inflation is going to sky rocket and thats only the least of their worries.the chinese yuan,which is ridiculously under valued may soon be undergoing a facelift of sorts.but there are a few economists who are predicting that the chinese economy would not slow down inspite of all the governments efforts and it can already be labelled as a runaway economy.well,if there was a time to buy yuan to make a quick profit,the time is now!

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China mobile inks 1B$ deal!

Ericsson and China mobile ink together an 1 B$ deal .according to this deal Ericsson will provide all the core and network equipment for GSM coverage.China's President Hu Jintao, on a two-day state visit, and Sweden's Prime Minister Fredrik Reinfeldt joined Ericsson Chief Executive Carl-Henric Svanberg and China Mobile CEO Wang Jianzhou for the signing ceremony in the Swedish capital.
In a few months time we may all be able to enjoy the full benefits of the GSM coverage with additional choices coming into the market very soon.of course the cost per GSM enabled mobile would be a bit high for the person on the street but with such a huge mobile market,the prices would soon tumble as logic holds sway.
Ericsson has already started providing all the necessary equipment.so lets see what happens on the mobile scene in china in a few months time!

Will a common currency for asia become a reality?

We all know how the Euro was touted to the public before all the numerous problems cropped up.of course if there was a common currency for the whole of asia,lets call it the "rupee" since most of the aisan countries use one forem of rupee or the other,the consequences of that are to put it simply "earth shattering".
for one if that dream became a reality,half of the worlds population will be represented by a single currency.they will be the most powerful economic powerhouse that this world would have ever seen.and lets not forget that the developing naiotns that comprise asia are all registering huge growth figures not just for one year but year after year.such growth has not been seen either by the europeans or the americans.
the U.S would definitely not want this dream to become a reality but unfortunately for the americans most of the asian nations are slowly but surely realising this dream.it will probably start with a free trade area pact,a huge one,the likes of which has not been seen until now.that done,the next logical step will be a merger of currencies,if that happens,in all reality it would be called the "rupee".but lets face reality,the asian nations have all warred amongst themselves until recently and some of them still carry that resentment.most of this hidden resentment is aimed at the japanese.but these nations like china,korea,phillipines etc must realise that the war was over a long time ago anhd it is indeed time to carve out a new future.
that said,it is high time that they started considering a free trade pace seriously.
China and Japan would probably have to start this off.and i am sure that Russia would also want to be considered a part of asia and would want a piece of the pie if for nothing else other than tho thumb nose at the americans!
such policy decisions would take brave initiatives on the part of all the major asian countries namely India,China,Japan,Russia[if it wants to be part of this] and Korea.australia may choose to be out of this but if this dream were to come about and thy choose to do so,they will be the losers.furthermore a policy decision on the part of India,Russia and China is worrying the U.S to no end.that is the establishment althoough an informal "TRIAD".has the next super bloc been formed?
well all of the above are just surmises,guesses and random thoughts.but so often the rumors become a reality.after all "truth is indeed stranger than ficiton",is it not?
the fact remains that India,China,Japan and Russia are determined to establish a uni polar world.to what lengths will they go to accomplish this?

Money matters forever!

As hard as this may be for so many people to take the reality is that money does matter and whats more it matters more to the people who get more.for example,a millionaire would care more for money and how to get more than a beggar would.for the beggar it si enough if he/she gets 5$.but for the millionaire it has to be much much more.

Money is certainly having a say on how we run our world.of course i am not here to give you guys a lesson on finance 101,since i would not know as much as you would like me to.but rather I created this blog,mainly so that we laymen/laywomen[to be politically correct] can share our comments on a variety if finance topics.

like recently china warned the U.S on the piracy issue.just to give you guys on why piracy is such a huge problem for the U.S or for that matter any other country when it comes especially to china,we have to undderstand or agree on certain facts first.

namely they are:

1.china is the moist populated country in the world.think billions!

2.piracy is by which local companies make knock off copies of all the software,hardware,dresses,jewellery,movies,music,and other high end products at dirt cheap prices.

3.one may think "Imitation is the sincerest form of flatterty" but not where it concerns piracy!

4.pirated products are generally available at extremely low prices,like if an original radisson watch costs 1000$ a copy in china would cost you about 100$ and in all probability you cna even bargain with that shopkeeper and bring the price further down.

So why is this piracy such a huge problem,well,say you are in china and you have easy by that i mean easy access to both the original product as well as the dupicate,and the duplicate actually saves you lots of money,which will you go for?as any human being would,the duplicate.

By the way the copies are so good that it is actually a bit difficult to tell the real ones apart from the duplicate ones.

The problem is that every government suspects that the chinese government is in cahoots with the makers of all these pirated copies.it is actually a very lucrative business for the chinese,mass producing designer items and selling it for low prices.whats more with the latest info,the demand is far out stripping the supply as nowdays the tourists are also shopping fopr copies in china.

So the U.S thinks that contrary to the agreements that china has signed with WTO as well as the U.S they are actually encouraging this piracy as this means more money for the central bank of china.the irony is that all of that chinese money is converted to dollars which are then reinvested in american companies that actually come out with the high end products that are being sold as duplicates in china.

Tthe americna accusation if you think a little about it is that they feel that the chinese government is not only not doing anything to stop the piracy going on,but are actually using the profits by way of huge taxes on such piracy and are channeling the money back to U.S investments,to the very same products,that the pirateers are selling as duplicates in China.

This way ,the Americans are feeling that the Chinese government are having the cake as well as eating it too,or to put it simply they are making a double killing!

Either way on raising this topic in the world forum,the chinese have retaliated by questioning the entire trade relationship!lets see what happens!