Archive for January 2012
Regional Imbalances in Economic Development
All the countries of the world developed in equally. Some countries are highly developed economically and some other countries are still developing and some more are under developed. Several factors are responsible for such variations among the nations besides political factors as mentioned below:
1.The availability of sufficient natural resources,
2.The quality of human resources and also its quantity,
3.Abundance of financial resources, and
4.Technological skills, efficient management skills among the people.
The U.S.A, U.K., Western european nations, Japan, Australia, etc are the best examples for economically developed nations. India, China, Srilanka are some of the examples for developing nations. African nations, Bangladesh, etc are some examples for under developed nations.
Regional imbalances in India:
India acquired under development from the Britishers who ruled the country for several years. The Britishers did not encourage industrial development in India intentionally during their regime. The Britishers utilised India as the raw material supplier for their industries. Thus India used to supply raw materials for British and used to import the finished products.
There have been demands for separate states in India since independence. For instance demands for a separate Telangana state in Andhra Pradesh, a separate Vidharbha state in Maharashtra. In the recent past a separate Chatishgarh state was created from Madhya Pradesh, Jharkhand from Bihar and Uttaranchal from Uttar Pradesh. These demands for separate states are mainly due to lack of economic development in such regions.
The economic development of a particular region is measured based on per capita income, gross state domestic product, poverty, unemployment, etc.
In India, Bihar, Orissa, Rajasthan, Madhya Pradesh, and Uttar Pradesh, north eastern states are comparatively backward economically when compared to the remaining states. Maharashtra, Gujarat, Tamilnadu, and Punjab are comparatively highly developed. In Andhra Pradesh state, there are three regions namely the coastal region, the rayalaseema region and the telengana region. Among these three regions, the telangana is most backward due to lack of resources, negligence by successive governments, poor quality of infrastructural facilities, etc.
One of the main consequences of regional imbalances is the migration of people to the developed areas. For instance many skilled people from India migrate to the developed nations. Similarly within India, people from rural areas or under developed regions have been migrating to highly developed cities or regions. Hence the Mumbai city has been facing the menace of population pressure on its resources. The city’s civic authorities have been facing a challenging task of providing the basic civic amenities to it’s citizens. Violence, law and order problems are the other consequences of such migrations to the developed regions from the under developed or developing regions. Almost all the major cities in India do face the very high intensity of population. Some of such cities are New Delhi, Kolkatta, Chennai, Mumbai, Bangalore, Hyderabad, Pune, Ahmedabad, etc.
Population is the mother problem. Reducing the population growth rates, imparting high quality and compulsory education at all levels, reducing the dependancy of people on primary activities, developing infrastructural facilities in the backward regions on urgent basis for encouraging trade, strict measures to contain corruption among some politicians and bureaucrats. There were some press reports that the money allocated for the developmental purposes was swallowed by greedy politicians and some corrupt officials. Such an attitude among them would not yield the desired results. To exploit natural resources in the backward regions, proper technology should be used.
To check the migration levels, the government has been implementing national rural employment guarantee scheme which is responsible for reducing the migration of rural people to urban areas for work during the agricultural lean season.
Economic News Reports in Forex Trading
News reports are pretty important. It allows people to know about their environment and find out what is happening in other parts of the globe. But in forex trading, news reports are vital and they are not just ordinary news reports. Forex traders must read up and research on economic news reports which can say a lot about a country’s current economic status and the economic policies which they are instituting. These two, believe it or not, can affect how foreign currencies are traded and made.
With thousands of economic news reports in almost every type of media, it is sometimes hard to discern what to read or what to put an interest in. But forex traders should know that there is actually just a handful of information that they need to know in order to trade effectively. Here are some of them.
The country’s trade balance
A country’s trade balance can spell explain how much value is placed on its currency. To those who are unfamiliar with the term, trade balance refers to a country’s trade surplus or its trade deficits. Still foreign sounding? Trade balance measures the country’s exports against its imports. A deficit happens when you import more from other countries that you export. A surplus occurs when the opposite happens: you export more than you import. A trade surplus is a good indication of a robust and thriving economy and this may lead to a stronger currency.
Sales in retail
Even the number of items that people buy can also tell a lot about a country’s economy and therefore have an effect on the way the currency appreciates or depreciates. When a country reports on bigger sales or higher sales in a month, this means that people have the money to spend and therefore the economic wheels are running smoothly. When the economy is good, the currency of that country often becomes stronger.
However, you have to be careful with seasons which are considered buying seasons like Christmas, Halloween, Thanksgiving and Valentines, which may have a higher sales rates than other months. Having many retails sales during these months is not always an indication of economic gain but of necessity. People do buy during this period of time. What most economic analysts do though is to compare the spending of people in the current year to the previous year. If there is growth in it, then economy may be in the upswing, so to your forex trading business.
Global Economic Outlook For 2010 – A Cabbalistic Survey
Unlike 2009, in which a conflict between imagination and force persisted all throughout, we shall see a very complex scenario, politically and economically. The main players will be the USA, England, Germany, and the Far East consisting of China, India, Afghanistan and Japan.
There will be four eclipses in 2010. The signs involved are Cancer, ruling New York City and Capricorn ruling India and China. India, China and the USA (New York City) shall be in the limelight.
Financial Markets and Economy in 2010:
The world politicians are painting a very rosy picture of the world economy. The actual economic complexities of today are a result of the most archaic policies pursued by the Central Banks in Asia that are most reluctant to change their ways of doing business. A new economic system will have to be devised befitting the supersonic age we live in, albeit at the cost of the US Dollar’s demise as a World currency.
The results of the stimulus package by the Obama Administration are high inflation, a weak dollar, good for US exports and a strong Yen, bad for the Japanese economy. US’s trade deficit far exceeds China’s trade surplus. Most UN members consist of dictatorships that do not want to be told what to do by a minority of democratically elected governments. In 2010, I foresee the peace, as we know it, threatened by insurgents.
In 2006, I predicted a banking industry crash and it came true in 2008. The entire banking system is run two ways: one by Islamic system nations and the other by non-Islamic. We have no uniform system for the whole world. The Havala system is used to transfer billions, if not trillions of dollars, floating around unaccounted for in the banking system, from one point of the world to the other.
When the stimulus money runs out, the unemployment will go up in USA to more than 10%. Mr. Bernanke will be forced to increase the interest rate to control the heated economy. The housing market crisis shall continue because Wall Street, like the banks, shall be giving out billions in bonuses.
In this trading market, it is not wise to buy and hold. I foresee gold at $1,250 an oz (resistance level), silver $20, oil $100 a barrel. Investments in royal metals and real estate seem to be the best bets in 2010. The political aspirations of the nations in the Far East are in conflict with economic policies pursued.
We have a credit economy system in the USA. Our economy has no base. The Chinese are the greatest holders of U.S. treasuries. The Chinese GDP is projected at 12% but the political policies pursued by Russia and China do not guarantee a sustained growth.
USA
The USA has been printing trillions of dollars, England followed suit. This will in 2010 lead to high inflation. In 2009 India bought 200 plus metric tons of gold to back its currency. It is impossible to forecast political stability in this chaotic state of the world economy.
I foresee hard times in 2010 for the world. Projections for the USA starting from 1776, its birth year, point to a national crisis in 2010. In parallel to the USA, I see an economic and political crisis in France in 2010 similar to the Great Depression of 1929. There is a resemblance between the histories of France and the USA.
The opposition of Saturn in Virgo to Uranus from April 2010 will have ominous consequences for the Far East (ruled by Saturn), USA (ruled by Uranus) and Paris, France (ruled by Virgo).
In the orbital puzzle of President Obama (born Aug.4), the personalities, namely Michele Obama, born Jan. 17 and Secretary of State Hillary Clinton, born Oct 26, Timothy Geithner born Aug 18, David Axelrod born Dec.17, and Nancy Pelosi born March 26 are all in conflict among themselves creating much confusion and uncertainty in the future of this country in 2010. The President will lose total control of political and economic affairs of this country.
The entire world is watching our actions very closely. President Obama is pursuing a path so extraordinary as to bring about revolutionary changes in the social, economic and political set-up, not alone in the USA (a capitalist country), but also in the entire world.
New York City’s security threatened
The money generated from the illegal sale of oil and the drug trade shall be used by insurgents to buy military arsenal in the open market to carry out an attack on New York City (ruled by Cancer) between April and June.
New York Stock Exchange (NYSE)
The stock market will be most unpredictable and very nervous. Run on the banks. Do not buy and hold. It is a trading market; volume will be very high.
o Switzerland
Switzerland is ruled by Virgo, the negative house of Mercury, bestowing upon it feminine qualities. In 2010, Saturn, the planet of destiny ruling the Far East, in opposition aspect to Uranus, the planet of evolution and revolution ruling the USA, will spell much trouble and strife in this country (Switzerland).
Trouble is brewing in this land. Racial tensions will lead to demonstrations by the extreme factions. Disturbing the peace will be the main objective. Fires and explosions are not ruled out. Extremists from the Far East will be the main source of disturbances. There will be some disagreement on a financial deal with the USA.
Zurich Stock Exchange: The Zurich Stock Exchange will be jittery and in turmoil.
o France
We know from experience that history repeats itself according to the law of periodicity in the destinies of nations. The French history is full of various events, some of which are not so positive. In 1794 there was a revolution and the fall of Robespierre. Projected to 1929, we get the Great Depression and another crisis in French history. The date further projected to 2010 indicates a serious challenge to the French Government: demonstrations, unrest and economic crisis. Early elections will be suggested by the opposition.
Some explanation will not be out of place. Paris, the French capital, is ruled by Virgo, a feminine sign. Saturn transits it in April, 2010 in direct opposition to Uranus, ruling the USA. What does it mean, you may ask. There are indications that the Sarkozy Government will be faced with a grave challenge involving the USA. Demonstrations against the Republic are quite possible that will disturb the peace as we know it.
Paris Bourse: Fortunes will be made and lost. Run on the banks and high unemployment is the verdict of the jury.