Amitabha Mukhopadhyay

Preview from Europe: The Goldman Bounce

America may force China to buy up more dollar or otherwise it will divert its purchases to India and other countries. America is still a giant so long the country's consumption level remains high even if that means continuous borrowing. With the future growth of the economy today's borrowing will appear insignificant ten years down the line. So the measures already taken by the present administration is going to deliver results sooner than most people would realize.
So long the present financial crisis stays Americans can utilize this time frame to visit India and stay for ten to twelve months. Because of the very high exchange rate where one dollar fetches fifty rupees the income of an average American family for two months will be more than sufficient for a year of staying and visiting places of tourists interest in India. So be India's respected guests.

Michael Hall: Natural Gas Is a Victim of Its Own Success

It is time now all the big gas producing companies do their research in the area of hydrogen production as hydrogen will certainly be the fuel of tomorrow. The oil and gas with their comparatively large carbon foot print alongwith coal will have to fight a dirty war in the near future. Huge amount of hydrogen can be produced using sea water and could be used for running mega power plants even now since it is going to take some time for hydrogen to be used in automobiles. I have written a science fiction novel for the society in 2080. Please visit the website www.eloquentbooks.com/...

Yesterday's Rally Is No Silver Bullet

All the investments made so far by the government has started showing result. Henceforth there will be continuous rally. So instead of bringing in paralysis by too much analysis prudent investors will start investing. Already those who did not invest before the rally missed the opportunity to increase their investment. It is also true the money is there parked in gold for the time being.
So the price of gold will fall immediately as the dow increases and those who would take their time to sell gold for buying equity would have to lament after a month.

Yesterday's Rally Is No Silver Bullet

I completely disagree with the author. The market represents the true sentiment of the investing public. I had earlier written that it is the time to buy the stock of citi bank and the very next day it gained 37%.

The 'Real' Unemployment Numbers

The current steps taken by the present administration for printing money will push up and kick start the economy. It could have been done much earlier. But better late than never. Very soon the market will start going up and the companies that had to retrench its people for the lack of orders will again call them back

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

No hyperinflation will occur. As I was suggesting from the very beginning that fed should print money. If it was done before the fall of Lehman Brothers for supplying the ailing bank the required liquidity then this huge phenomenon could be averted. Since seeing the Lehman Brothers other sick U.S.banks would approach the fed.
Because of the multiplier effect of the money any amount of money locked in so called toxic assets would create a dearth of money supply ten times the locked money. So America is now moving in the right direction and very soon the economy will start its upward journey.
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Ian Bremmer: U.S. Behaving Like an Emerging Market Country

The U.S. economy is behabing like a million ton crude carrier where all the deck officers and captain were taking an afternoon nap. The whole world is watching the vulnerability of the biggest civilization on earth. Why on earth things were allowed to go at such a low level. Why not anyone could anticipate the arrival of this huge economic tsundmi. The big american banks created house loans with a leverage of 1against 30 and those banks also got money from European banks. So how come all the bankers behaved in a totally laid back way as if as they have no responsibility.

China's Warning

In order to prosper in the changed economic scene China has to decouple its economy as far as possible from that of USA and look for neighboring countries such as India for increased trade. Apart from that it has to invest much more in infrastructure which already it is doing and services. There is much more scope in the service sector which requires comparatively smaller investment. One such area is forming hundreds of thousands of special institutions which will teach the english language to the chinese.

Why Aren't Gold and Silver Even Higher?

The price of gold will collapse as soon as the bearish market of stocks will give way to bullish markets worldwide. A large number of investers are just waiting on the side line by parking their massive amount in gold and waiting for the right moment.

U.S. Debt Surpasses $11 Trillion But Day of Reckoning Is Still Ahead

This is certainly going to be the fate of a country that for more than three decades became only a paper economy with no real bite in any areas of production and technology. It became so inspite of huge promises. But it appears that America is a land of sudden impulses in the areas of technologies but then no consistent approach towards continuity and advancement.
During second world war the country produced thousands of liberty ships but then the ship building technology died except for aircraft carriers. Boeing should not have given the chance to Airbus for developing A380 despite many years of Boeing 747, in cars Toyota defeated GM and in railway technology America is centuries behind compared to France and Japan. And now it is still going backwards by trying to build wind turbines instead of building better nuclear reactors and breeder reactors. The next step obviously will be to drive ships using sails.

Capitalism, Socialism and Democracy... Oh, and Common Sense

Since the end of world war two this system of democratic capitalism flourished. It florished the way conventional energy flourished compared to non conventional energies. The attempt of the present administration both in the area of socialism and embracing non conventional energy will see the collapse of American system very like the soviet system.
As is often said bad planning or excessive planning is worse than no planning similarly the attempt of the government to control everything happening under the Sun will bring in huge misfortune to the American population.
All these years when this financial system were bringing in unprecedented properity to world as a whole then everybody enjoyed it. And now because of some structural problem everybody became critical of the role of the bankers.
It may happen that with the tremendous growth of worldwide production and services the present monetary system was rendered functionally incapable. Why on earth it took so much time to realize after the fall of Lehman Brothers that money supply in the economy is not to balane the capacity of the economy to produce.
An alternative financial system could be for the affected bank with toxic asset to report to the fed immediately the amount locked in and then the fed would send the eqivalent amount by printing money. Then when the homeowner would start again paying at a much lower rate then the fed could take it and burned it . This could check the inflation as well as could arrest the multiplier effect of locked money. All these methods if applied quickly then we would not see the type of economic collapse that we are witnessing now.

Protectionism on Immigration Will Hurt Our Economy More than We Realize

Historically it is seen people in general try to get into a land where there are more opportunities compared to their country of origin. So it was on the wishlist of every dynamic individual of any country to try his or her luck in USA which until recently was considered as a land of opportunity.
But the situation has now changed completely with US unemployment data showing 10% and it is quite natural that a country would give priority for the employment of its own citizens first. But still then restrictions on individuals who can set up businesses with high employment generation potential should be discouraged. As it will hamper growth of the economy creating more unemployment.

U.S. Reassurances of Its Creditworthiness Should Make Us Uneasy

Whatever the Chinese government may say it is clear to everyone that their option is limited to only one option. They have very foolishly built up their economy based on excessive US consumption of cheap chinese made goods. Based on this they have turned their country into a country of workers who could be exploited by long hours and low wages.
Now to support this peculiar system which creates trade in favor of China creating a huge dollar reserve which was again loaned to US to support their consumption. It is like a flywheel that continuously increses its circular motion untill it is blown away.
If the Chinese increases their home consumption then it will automatically lower their competitive edge as exploiting labor will be more costly with increasing wage bill.

Treasury: Still Going Nowhere

Is there good company in America now that has got plenty of money to invest. I am of course not asking the government. Because it will mess up the project before it actually starts. The project will be to build a big city in the middle of desert like Las Vegas since then the price of the land will be dart cheap. It can start with building an international airport and a private university, at least ten engineering and management colleges and then a big cluster of modern hospitals and hotels. Higher education is an area where America still enjoys leadership position. Then there will be superways, power plants, supermarkets , mass transportation systems etc. I only wish if I had some money to kickstart such a project. Many of America's present day problems would vanish.

U.S. Records Huge Trade Deficit: Obama's Broken Promise

All these happened because America for the last several decades moved away from manufacturing economy and aligned itself with a paper economy. The growing volume of trade deficit was also encouraged as more and more products America decided to purchase from other countries that came cheap because of lower wages. The fault lies with other developed countries of the world also which unlike India instead of generating more consumption at their home markets dumped low cost products to American markets and thus increased their dollar reserve. It is quite natural that those economies are also now collapsing.