iCharts Discussions

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

US economic data is indicating revival; the rest of the world economic data including prime movers China, India& Russia showing downward trend. How is this possible? One of this should be false.

Why is it not possible?The major importers and exporters of US economy and US can not go in opposite directions.The world is so closely knitted that it is not possible for any country to grow in exclusion .There was no self sustaining economies left in the world after Globalisation.

If the above thesis is correct,We should seriously doubt the figures that are being declared in US. Let us wait and see how the issues are going to unfold?.

Now FED is indicating that they can not rule out QE3.If at all US economy is reviving what is the need for it?!

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

I have been writing (and quoting sources) about china's intentions for super power status . I also blogged about the petro-dollar story.

I think the 5 min wrapup is reading ichart forums ( Laughing

) and you may have read the latest edition of today . I am reproducing it here for some additional info contained therein:

''...Saudi Arabia, being the largest oil exporter in the Middle East is bound to be awash with funds given the steep rise in crude prices. But wait! Here is another nation, which is leaving no stone unturned to claim its super power status. In fact it is ensuring in more ways than one that the US loses its most powerful nation tag. You may have guessed it right that it is none other than China. The latter is not just piling up its forex reserves. It is also pressuring the IMF to award Yuan the reserve currency status. But there is more to China's super power ambitions. Something that even the US seems unaware of!

As per a blog on The Economic Collapse, the Mandarin economy has teamed up with Saudi Arabia to undertake the building of a mammoth oil refinery. This mammoth new refinery is scheduled to be fully operational by 2014. The development is not completely out of the blue. Over the past several years, China has aggressively expanded trade with Saudi Arabia. In fact, China now imports more oil from Saudi Arabia than the United States does.

So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in US dollars. This 'petrodollar system' was later adopted by rest of the world. However, the biggest beneficiary was the US as it immensely strengthened the US dollar. If China were to replace US as the key determinant of oil prices, will the 'petro dollar' last long? Well, we certainly see petro-Yuan on its way...."

If the reserve currency changes to yuan , what will happen ? Rampant inflation in the US ,,,,due to fiat currency state of the dollar. Remember the
Zimbabwe currency ?

One 'prediction' says April 13 , FRIDAY , 2012 (closer to Vinay's date)

pkholla · Black Belt Joined: 04 Nov 2010 Posts: 2890

UTI: The lender of last resort. Over the years UTI, though having a portfolio which is the envy of millions, has steadily slid into the red thru Govt meddling and bungling. Now, showing an urgency normally shown only to visit the toilet in North/ South Blocks, our Delhi rulers have decided to raid the UTI cookie jar once again to fund the disinvestment process. UTI Special U/taking has 11% of ITC, 23% of Axis Bank, 8.3% of LT (Now you know why ITC shot up recently!) and will be forced to take loans from banks (now you know why CRR was cut!) for you know what! Rgds, Prakash Holla

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

dollar index falling, dollar falling against euro and oil falling. And pranab expected to bring bold measures. Wow, what a "pickle"!

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

Notice the Vix ? up 17+% !

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Here's something different from the last few days' posts.

http://www.bbc.co.uk/news/magazine-17489035

psalm · Black Belt Joined: 12 Nov 2011 Posts: 5368

pkholla · Black Belt Joined: 04 Nov 2010 Posts: 2890

psalm · Black Belt Joined: 12 Nov 2011 Posts: 5368

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

PSU Scam - And now Gas Authority and OIL India will bail out Mukesh Ambani by buying its non-profit making pipeline business for 10K cr.

ajayhkaul · Yellow Belt Joined: 18 Jun 2009 Posts: 866

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

"The improvement in the labor market over the past year -- especially the decline in the unemployment rate -- has been faster than might have been expected, given that the economy during that time appears to have grown at a relatively modest pace," Bernanke told the National Association for Business Economics on Monday.

Government numbers show the U.S. economy has added more than 200,000 jobs each month since January, and the unemployment rate has fallen to 8.3% from 9% in just five months. Meanwhile, the U.S. economy has been growing relatively slowly, most recently at a mere 3% annual pace.

Bernanke called those figures a 'puzzle.' For the unemployment rate to fall that significantly, the economy should have been growing much more quickly.

Mr Bernanke There is no puzzle. Businesses are engaging people anticipating recovery ( The boosting of you people added the confidence factor for them).The US economy is not growing in tune with employment rise. World economy is in fact shrinking.

Once employers realize that there businesses are not expanding as anticipated then they will fire the hired people. In such case the rise in unemployment may again surprise you. Then you may need to give a reverse statement like this For the unemployment rate to rise that significantly, the economy should have been falling much more quickly.