Growth rate set to blaze soon

1. Double-digit growth is no longer the preserve of China or some small oil economies. India’s growth rate for 2006-07 is likely to be revised upwards from the current estimate of 9.4% to almost 10%. This is because growth has been more robust than estimated in both agriculture and manufacturing, according to highly-placed government sources.

2. While releasing the growth figures for 2006-07, the finance minister had remarked, “The time has come to shed lingering doubts about the sustainability of high growth and scepticism about the shift to a higher growth trajectory.”

If indeed the growth rate is revised to about 9.8-9.9%, the base effect could be somewhat daunting for fiscal 2007-08. The question is if a near-10% growth can be sustained on the back of a similar rate of growth the previous year. Economists say growth in 2007-08 will reflect recent attempts by the RBI and government to tighten money supply by hiking interest rates.

3. A deliberate policy to somewhat cool down the economy may marginally decelerate the growth rate, even though we are in the middle of a new investment cycle. The chairman of prime minister’s economic advisory council C Rangarajan is fairly confident India is now experiencing an investment-driven rather than consumption-driven growth. This is the one critical factor that might deliver a consistent GDP growth of 9%-plus for another few years, officials believe

Source : Economic Times

French President Concerned by Autoworker Suicides

It seems there is a epidemic of suicides in the auto sector of france and french pyschiatrists says that this is symptom of modern times. Epidemic of suicides is a recurring incident in India. It seems this epidemic is now a global phenomena.

US Dollar : On the Edge of the Abyss and Back to Gold Standard

The US Dollar's value has been steadily eroding over the recent past. Intervention by US government and other countries like China has stopped in free fall. But it seems China is slowly evolving a strategy to reduce its exposure to the dollar by buying US stocks. Experts say that this could level GOLD being considered as the standard currency once again.


1. US Government : there is one fan of the USD, a fan that will try and keep the dollar u1. p or at least “manage” its invertible collapse. That of course is the US Government. Armed with Ben Bernanke’s Plunge Protection Team, you can bet you bottom dollar (although shortly it might not be worth much) that they will do everything possible to make sure their currency does not have a full blown crash. They would rather that USD gradually floated down in a way that would benefit US exporters. Trying to manipulate the market is a dangerous game, as no person, company or government is bigger than the market and eventually the market will fight back and win.

In fact the more an entity tries to suppress something, whether this be the financial market or something as simple as an idea, the more drastically the suppressed force will fight back. Therefore all the Plunge Protection Team are doing by trying to prop up the dollar or the stock market is delaying the invertible and making the backlash reaction all the more dramatic. You can try to push the bad times back, but this will just make the bad times worse when they eventually come around.

2. China Factor : It is crucial to remember that the United States on America is not the only government with an interest in which way the dollar goes. With their hands on over $1.2 trillion dollar bills, the Chinese Government must also be watching the USD like hawks having lost $100 billion of value in less than a year. The government in China is very concerned at keeping “social unrest” at a minimum so how do you think the Chinese people will react if the USD continues declining further and further down bringing their foreign currency reserves closer and closer to worthlessness. China must be looking to transfer their dollars into something that retains its value or perhaps even increases in value, after all isn’t that what investments are supposed to do?

China will look to get out of dollars and into anything that isn’t falling as fast as the USD. The private equity group Blackstone, made the biggest US IPO of the year recently and Beijing swiftly swooped in and bought a 9.9% stake in the company, using $3 billion of its foreign exchange reserves. It is likely that we will see more examples like this of China buying companies, commodities and whatever they can to get out of the dollar. Gold and silver bullion or the mining companies in the precious metals industry are obvious candidates for a piece of China’s USD pie as they move up and as the greenback moves down so they are the most logical hedge against a declining dollar.

3. GOLD as the Basis : If China and other countries holding large USD reserves shift even a small proportion of their dollars into the precious metals, it will have massive effect on gold prices and silver prices. Governments aside, individuals around the world will be looking to trade any dollars they have for a piece of gold or some gold stocks rapidly increasing in value.

Reference :

US Dollar : On the edge of abyss

Globalization Blog link

Here is another globalization blog link:

Compelling argument in favour of Indian Retail Revolution

1. some of the data on the retail sector in India makes for interesting reading. For instance the CII-AT Kearney retail study shows that retailing is the largest contributing sector to the country's GDP. Besides, the retail sector contributes about 10 percent to the GDP compared to 8 percent in China, 6 percent in Brazil and a matching 10 percent in the US.

2. Data clearly shows that the retail sector is not only extremely large but provides a huge amount of jobs in this country. The entry of the organised large retail chains may not have an immediate impact on the trading community. But in the long run, it is clear that small traders and retailers will be affected and the government cannot ignore the issue.

3. wastage estimated in the Indian food chain is around 40 percent, valued at over Rs.500 billion ($10 billion) annually. A study by the Indian Council for Research on International Economic Relations (ICRIER) has also shown that only about 2 percent of fruits and vegetables are processed in this country. In this backdrop, it is felt that there is no option but to allow big retail chains to make huge investments needed to create an efficient and modern agro processing industry.


Link : India's retail explosion: boon or bane?

Bikini vs Burka

On my wall, I have a picture of a Muslim woman shrouded in a burka. Beside it is a picture of an American beauty contestant, wearing nothing but a bikini. One woman is totally hidden from the public; the other is totally exposed. These two extremes say a great deal about the so-called "clash of civilizations"



The role of woman is at the heart of any culture. Apart from stealing Arab oil, the impending war in the Middle East is about stripping Arabs of their religion and culture, exchanging the burka for a bikini. I am not an expert on the condition of Muslim women and I love feminine beauty too much to advocate the burka here. But I am defending some of the values that the burka represents for me. For me, the burka represents a woman's consecration to her husband and family. Only they see her. It affirms the privacy, exclusivity and importance of the domestic sphere. The Muslim woman's focus is her home, the "nest" where her children are born and reared. She is the "home" maker, the taproot that sustains the spiritual life of the family, nurturing and training her children, providing refuge and support to her husband.

In contrast, the bikinied American beauty queen struts practically naked in front of millions on TV. A feminist, she belongs to herself. In practice, paradoxically, she is public property. She belongs to no one and everyone. She shops her body to the highest bidder. She is auctioning herself all of the time. In America, the cultural measure of a woman's value is her sex appeal. (As this asset depreciates quickly, she is neurotically obsessed with appearance and plagued by weight problems.) As an adolescent, her role model is Britney Spears, a singer whose act approximates a strip tease. From Britney, she learns that she will be loved only if she gives sex. Thus, she learns to "hook up" rather than to demand patient courtship and true love. As a result, dozens of males know her before her husband does. She loses her innocence, which is a part of her charm. She becomes hardened and calculating. Unable to love, she is unfit to receive her husband's seed. The feminine personality is founded on the emotional relationship between mother and baby. It is based on nurturing and self-sacrifice.

Masculine nature is founded on the relationship between hunter and prey. It is based on aggression and reason. Feminism teaches woman that feminine nature has resulted in "oppression" and that she should convert to male behavior instead. The result: a confused and aggressive woman with a large chip on her shoulder, unfit to become a wife or mother. [...] Feminism is another cruel New World Order hoax that has debauched American women and despoiled Western civilization. It has ruined millions of lives and represents a lethal threat to Islam. I am not advocating the burka but rather some of the values that it represents, specifically a woman's consecration to her future husband and family, and the modesty and dignity this entails. The burka and the bikini represent two extremes. The answer lies somewhere in the middle.

Reference:

1. Henry Makow, "The Debauchery of American Womanhood: Bikini vs. Burka"
2. Politics of the Female Body

Outsourcing 'to earn India $40bn'

Indian software and services exports are expected to earn about $40bn (£19.9bn) in the year to March 2008 as demand for outsourcing remains strong.

The National Association of Software and Service Companies (Nasscom) added that the sector should achieve $60bn in export revenue by 2009/2010.

"We are confident and I think we will get there," said Nasscom president Kiran Karnik.

"The overall demand is strong... the headroom for growth is huge."