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Management of Foreign Currency

Indian Government Management of  Foreign currency is in doldrum as its facing problems of Current Account Deficits[CAD], Negative Terms of Trade, etc. The Finance Minister was in United States to convince the CEO's of the big companies to come and invest in India. Now, he's meeting the Foreign Banks the pioneer's of Fund Management to study ways and means plus expressing the interest of  issuing "Foreign Bond". Indian Government is trying to Manage funds directly or indirectly with the help of Indian Banks to raise loans outside like Soverign Bonds. Indian Development Bonds was issued in 1991, to Manage the Balance of Payment crisis. Offered 9% interest and paid about USD$ 2.2 billion in one shot. Resurgent India Bonds gave us USD$ 5 Billion, which was floated by State Bank of India in 1998. This was done to Manage the wrath of Pokran Nuclear test - II. Purely offered 7.5% interest rate. Indian Millenium Deposits garnered in USD$ 5 Billion, which was issued...

Temporary Gain For Gold - Don't Buy [Fell In Trap]

Gold set the weekly advance, the biggest in the last years as fears of immediately stopping the Quantitative Easing [QE] by the US Federal Reserve. The rise was none other than 4% since 2011. Ben Bernanke was keen to keep rolling the QE policy as unemployment and low inflation are considered to be very low. Last week we saw the supply was high whereas the demand of Gold was low. This week it's a slight vice versa scene ie., Supply is restricted to keep the Demand high. Though Gold had been increased, but this is not due to increase in purchase or actual demand. But actually every investors are changing the investments from Gold to US Equities . US Comex had lost to US$ 1278/Ounce. To make it confirm, the United States Data shows increase in production price, confirming the impact of Inflation in the years to come. Due to this, Federal Reserve can take a stand to close the slowing stimulus package. SPDR Gold Trust, the biggest Gold Exchange Traded Fund had kept the holding sa...

Quantitative Easing[QE] Must Stop Nor Divert To Poor

Ben Bernanke Management want to continue to buy USD$ 85 Billion Bond every month, which he thinks will be bringing the United States Economy back on growth track. He kept the Interest Rate near to zero, which he will be changing when the unemployment level will reach 6.5%. But the Federal Open Organizing Committee [FOMC] want to stop it and want to hike the Interest Rate. But what Ben Bernanke Management can do is giving Quantitative Easing will he helping the corporates, but instead they can continue to give it to people who're working in Public Sectors or People living below the means. This will automatically create demand in the market, as they're good spender's. But even if Republic Government comes nor Democratic Government, the gainers will be the Corporates. They with due intensity spoil the market or change it according to their benefits. Last week as i mentioned, Stocks will rise and Bonds will come down. Asset purchases will not be guarantee reduction in unemp...

Greece Must Free From Euro To Survive

Greece, bunged with debts of over USD$ 140 Billion from April 2010, is really running in recession. Apart from Greece, Portugal, Ireland, Spain, and even United Kingdom is reeling in recession. To overcome the threat of bunging out of Euro, the European Union Management will be providing Euro 130 Billion to keep the Greece Economy moving. Euro-Zone Ministers already decided to cut USD$ 51 billion from the debts given to Greece. Greece Government had already started to cut the expenditure before the great move from Euro-Zone Ministers. What happened to Greece Economy? Public Expenditure was more than the Taxes collected from the Government. Wages rose between 45% to 50% in public enterprises from 2000 - 2007. Conducting  Athens Olympics was a debt-ridden act on the part of Greece Government. Tax Evasion was too high and Government was mired by Budget Deficit. Before joining Euro, they were concealing the expenditure and kept it as a top secret which was 3% of Gross Domestic Prod...

China Is Doing Wrong by Easing Monetary Policy

Chinese Exports Management fell more than 3.1% as the expected growth target was 4%.  This is the good news for the European Market, which was tarnished by the Chinese Players. They destroyed the market by creating a new manufacturing hub of the automobiles. This was due to monetary restrictions put forward by the Chinese Government. Now, it'as done to control inflation. By doing this, it already restricted the market demand, which by the way affected the growth of engineering sector. Exports were down due to lack of demand or increased demand in Europe and USA. Economies of Scale which was ruling Chinese Market in the 2008-2011, decreased now and became the normal market. Renminbi has risen more than 10 percent & labour wages too, which erodes the existed competition. Now the Chinese Government Management is planning to increase the credit limit, which will create investment in the existing market. But the actual thing is that investment will not get the market immediately...

Curbing Forex Trading Is Not The Solution - India

Curbing Forex trading is not the solution for correcting the economy. The Reserve Bank Of India Management has stopped trading in Currency Futures and Exchange-Traded Option Market. What the Government thinking is that with this policies they can curb the speculation between United States Dollar V/s Indian Rupee[INR]. Securities & Exchange Board of India[SEBI] has doubled the margin requirement for trading in USD$ V/s Indian Rupee[INR]. Finance Minister P.Chidambaram is already in United States of America to bring in Foreign Direct Investments to India and make roads to recovery of Indian Rupee[INR]. He's having problems to push investments in sectors like Defence, Telecom, Pharma and Retail. Indian economy is suffering from Current Account Deficit [CAD] of 4.8%, which is also ruining the value of Rupee. Imbalance Terms of Trade too plays its part. Indian Industrial Production [IIP] is not any signs of recovery. Agriculture is doing well, though it's not performing 4% gr...

Gold Will Reach USD$ 1000/Ounce or Lower

It's foreseen that Gold will be reaching USD$ 1000/Ounce or if it breaks, it can even reach USD$ 800/Ounce. Why this is happening? Now Gold is standing at near to USD$ 1200/Ounce and it will be moving a range of USD$ 70 - USD$ 100/Ounce. This will be best place to invest for your future growth. The future is that Gold will be topping above USD$ 2500/Ounce in the year 2015. At that time stocks will at the lowest. United States Dollar[$] will be at the bottom. At that time Silver too, will be breaking the top slot and for me better than Gold, Silver is the best bet. The future of United States Dollar[$] is that it will come up. America Management will do the best to get most out of the US-Europe Free Trade deals. Germany's economy is loosing to deliver and will be contracting faster. The main reason is that it helped to get Spain, Italy, Greece and other suffering countries to come out of recession. But the take-off did'nt take place and will take place in the next t...