Posted by admin on Saturday May 30, 2009
Filed under :Politics
The Pakistan army has officially claimed full control of the Swat valley, which was under the control of the Taleban terrorist outfit since the beginning of April 2009. The Taleban started forcing Sharia law in the region, and also started advancing into nearby towns, much to the dismay of the Pakistan army.
There was also pressure from US to dismantle the Taleban terrorist network inside Pakistan, and hence the Pakistan army started the offensive few weeks back. The Pakistan army is said to be in total control of the entire Swat Valley region now, as per official reports.
Posted by admin on Friday May 29, 2009
Filed under :Politics
The North Korean government is going at full speed against the entire world, with too many events happening in the last few weeks. It all started with the North Korean withdrawal from the peace talks group a month back. Then it was followed up with the withdrawal of UN inspectors for Nuclear facilities.
Then it was followed up with two nuclear explosions under ground which has drawn flak from the entire globe. In the last few days, it went ahead and tested out many long range and short range missiles which are nuclear capable.
Unconfirmed sources say that North Korea is all set for testing of its long range nuclear capable missile in the coming days. This is expected to become the flash point between North Korea and Japan/US/South Korea combine.
North Korea is upset with the action taken by South Korea last week to join to global group for tracking illegal nuclear movement.
Posted by admin on Friday May 29, 2009
Filed under :Fun
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Posted by admin on Friday May 29, 2009
Filed under :Business and Finance
The US dollar has been weakening in the last few weeks, thanks to increased government borrowing and fears of long lasting recession. And as an instant effect, the gold prices have been surging very fast in the last few months, and have now reached a record 980$ to an ounce in US, which is the highest in the last three months.
Experts tracking the industry say that the Gold prices might go past the 1050 mark before the end of 2009 due to fear of weak US dollar and also due to increasing geo-political issues.
It is important to note that China has been silently doubling its gold reserves through 2008 without the world noticing it, which might now be followed by Japan also, because these two countries might prefer to invest their future trade surplus into gold, rather than uncertain US treasuries.
Posted by admin on Friday May 29, 2009
Filed under :Fun
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Posted by admin on Friday May 29, 2009
Filed under :Politics
The US is having sleepless nights since last week, after North Korea conducted two underground nuclear tests. North Korea also went ahead and started the weapon grade uranium production at one of it’s factories.
All these have come as a big shocker for the new Barack Obama US administration, which is not able to take any concrete action against North Korea, except some rhetoric.
Now, US is pressurizing China to bring North Korea to the negotiation table. There could be a Chinese hand in the North Korean moves, say political experts, because China wants to enhance its role in the global context. It could do it indirectly for its own safety, because most of its currency reserves are invested in US and it cannot risk confronting US directly.
Also given the tough economic condition China itself is facing, it will make sense to sell nuclear technology to rogue countries like North Korea, and also make money.
Posted by admin on Thursday May 28, 2009
Filed under :Economy
The First quarter of 2009 is showing some positive signs for the world’s largest democracy, India. The 100 billion people Indian economy, grew by a healthy 5.8% in the first quarter of 2009. The analysts had estimated a 5% growth for the economy, which is still half the rate of growth it achieved in the last five years.
India does have good share of exports to US and it saw the exports crash by over 30% in the last two quarters, which has halved the GDP growth rate.
The Indian government spent over 7% of the GDP under stimulus package in the last two quarters, which has helped it to post a higher than expected GDP growth.
But the billion dollar question will be how the new Indian government will handle the economic recovery in the coming months, because it is facing huge challenges on many fronts.
First, it is already sitting on two digit fiscal deficit, so it cannot keep on borrowing money for spending.
Second, it is seeing a sharp decline in tax revenues, with the current year figures showing a 30% decline.
Third, the exports might not recover in the coming months, because US and Europe are in deep recession.
Fourth, the stock markets are still not lucrative enough to help companies raise new capital.
Fifth, the new government might have to face political challenges if it tries to divest equity in profitable public sector companies.
So, it would be prudent to wait and watch the Indian economy, before investing your hard earned dollars.
Posted by admin on Thursday May 28, 2009
Filed under :Economy
The Japanese industrial production data for the last several months were drastically down, due to crashing exports to US and Europe. Now, the April 2009 industrial production has surprised every analyst, with a record 5.2% growth, which is the highest monthly achievement in the last 56 years.
The base effect helped push the growth rate to such a high level, say analysts. The industrial production revived in April more because of recovery in export orders.
The Japanese economy depends on exports of Automobiles and electronic items in a major way, and it cannot recover through domestic demand stimulation. The Japanese economy also faces demographic problems in terms of aging population, unlike China and India.
Posted by admin on Thursday May 28, 2009
Filed under :Business and Finance
The bankruptcy filing under Chapter 11 by General Motors is expected anytime in the coming days, but the key to recovery of GM lies in speedy resolution to the pending issues. The bankruptcy proceedings must happen quick and fast, and must help GM in reducing its outstanding debts substantially, by getting better deals from the bondholders.
Also GM needs to sell off the low performing and high cost brands and factories to interested bidders in the coming months, so that it generates the much needed cash to run the operations of the restructured setup.
A revival of GM , even in a reduced form, could be a harbinger of growth for the entire US auto industry.
Posted by admin on Thursday May 28, 2009
Filed under :Economy
The US is now facing double whammy, with no major treasury purchases happening from China and Japan in the last few months. So far, these two countries were investing billions of dollars of their trade surplus every month, into buying US treasuries.
But with their exports to US crashing, their trade surpluses have vanished, and they are also seeing a declining yield on their trillions of dollars of investments.
Now US is seeing clear signs of delay in local economic recovery. Hence, the US is now asking China to do everything to boost their local demand. US badly needs a economic recovery, for which it wants a healthy Chinese economy.
If China is unable to get a local demand boosting, which is good enough to cover the gap created due to crash in US exports, then it can trouble the US also indirectly.