G-8: RIP?

Re: # 43

No, DM, the USD 400B is just a start. As we all know, countries which has good bureaucratic system like China does, these domestic development projects could just mushroom to more than double the forecasted amount. As for their exports, here is what today's NY Times says.

Facing a Slowdown, China’s Auto Industry Presses for a Bailout From Beijing

http://www.nytimes.com/2008/11/19/business/worldbusiness/19chinaa uto.html?_r=1

It seems that this is just the beginning. Hoping that the chinese will be forced to spend out all of their foreign reserves.

Can someone explain, why should a country horde so much of foreign reserves anyway?

Hamid mian, it is not that the chinese are stupid. I just think that the anglo-saxons are just better. Just keep an eye in Africa, and see how the anglo-saxon gets the big chunk of the minerals in DR Congo, and that foresaken place called Zimbabwe.

OK, why do they have to keep a big foreign exchange reserve? Can you explain?

Re: # 40

bubba mian,

... sounds like a plan but i think the chinese are not as stupid as they appear to be ....... we tried to sell them this stuff in 2007 and they bought over 200B worth of us mortgage based securities ........ here is a news report from july 2007 :

HONG KONG - While China is eager to invest a portion of its US$1.33 trillion foreign-exchange reserve overseas, it is unlikely to take a chance on buying additional US mortgage-backed securities (MBS) as they are now considered too risky, Chinese economists said.

During a recent trip to Beijing, US Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson tried to sell China on the idea of buying more MBS. Investing in MBS offers better returns for China than US Treasury bonds, and at the same level of risk, Jackson claimed.

He called it a "win-win" situation in a statement released prior to his Beijing trip. "China has bought some mortgage-backed securities from us, but not in great numbers," Jackson said.

China held $414 billion in US Treasury bonds as of April, according to data compiled by Bloomberg. And according to HUD's website, as of June 2006, China held $107.5 billion in MBS, up from $3 billion in 2003 and $100 million in 2002. Jackson was particularly keen to persuade China's central bank to buy more securities from the Government National Mortgage Association (known colloquially as Ginnie Mae), a mortgage association under HUD.

................ good try, but no cigar

while osama recruits from paki b-schools(bomb making schools)..

IIMB grads bag hot job offers
DH News Service, Bangalore:
Despite the global slowdown and job losses, 268 students of the first year Post Graduate Programme 2008-10 batch at the Indian Institute of Management Bangalore (IIMB) were placed on day one of Slot Two of the summer placement process.


As many as 56 new firms flocked IIMB for summer placements while 85 students chose to intern abroad.
Overall 24 per cent of the batch accepted positions in consulting which is known for its demand for multi-functional skills, cutting across finance, strategy and marketing. McKinsey and Co was the single largest recruiter among consulting firms, inducting five IIMB students. Investment banks like Goldman Sachs and HSBC made IIMB their most preferred campus by taking the highest number of students.

International firms

Some of the global recruiters were leading multinationals like Boston Consulting Group, Bain & Co, Merrill Lynch, Royal Bank of Scotland, HSBC, Freudenberg and Bank Muscat.

International firms like Booz & Co, Oliver Wyman, Result, Alvarez & Marshal, Bank Muscat, UAE Exchange and Morgan Stanley Infrastructure visited IIMB for the first time bringing diversity to the list of recruiters both in profiles and geographies on offer.

Arthur D Little, Bank Muscat and UAE Exchange International offered positions in Dubai and West Asia. Private equity firms like ChrysCapital, Greater Pacific Capital, Zephyr Peacock and Temasek Holdings that recruit for highly specialised positions have also hired IIMB students.

McKinsey & Co, Boston Consulting Group and Bain & Co hired the largest number of interns from IIMB.
The grim situation in the financial sector has not waned the interest of IIM grads in this area as 45 per cent of the batch has been placed in financial services.

Major investment banks which hired interns were from West Asia: banking major Bank Muscat hired five students for investment banking.

Talking about the dip in the financial firms, as compared to the previous year, Sourav Mukherjee, Chairperson, Placement Cell, IIMB said: “There is no denying that the conditions are not so good, but 56 new firms visited IIMB mainly because of the students’ efforts. Due to the prevailing conditions, the placement offers were planned well for the larger good. Students preferred the finance sector and chose to intern abroad due to the challenging market situation and learning experience�.

Aditya Gupta, Placement Committee Member, IIMB, said students opted for summer internship at investment banks despite the economic slowdown as this would be a tremendous learning experience for them.
International offers

About 85 students from IIMB took up international offers and the number of Slot Zero (day one) offers itself was 121, the highest across all IIMs. Over 45 per cent women were placed in Slot Zero firms. About 21 per cent of women were placed in consulting, while 25 per cent women chose investment banking roles for their summer internship.

BTW: Growth in India is projected to drop to 6.8 %...yup..that's more than the real grown rate when pakiland cooked the books to report 8.4%

#47 Posted by HP on November 18, 2008 3:27:57 pm

if you really believe that, the PAF should be able to waltz into indian airspace and liberate kashmir, right?

gee..i wonder why they're not doing that...what with kashmir being your jugular vein and india shutting off the waters of the chenab?

HP #47: Tell arjun about the time our fearless General Niazi forced the cowardly Indians to surrender to him in Dhaka! Also, how he then forced the Indians to provide food and lodging to his Eastern Command for two years, until Indira Gandhi came begging to our Prime Minister Bhutto to withdraw General Niazi's Eastern Command back to Pakistan. That will put him in his place!!

Can we discuss recession in India...How many jobs are going to be cut...H1b types now wouldn't find jobs in India either....

"New Delhi, November 10 : In what could prove to be a major embarrassment for the Indian establishment, an assessment by a US Air Force (USAF) pilot who participated in the Red Flag joint exercise in Nevada in August claims that the SU 30 MKI, India’s most modern aircraft, performed poorly in comparison with its US counterparts. The Su 30 MKI was outshone by US Air Force pilots and lost in one on one aerial combat with the older generation F 15 fighters, the review which was put up on a video sharing website last week, claims.

While the USAF officer in the video has not been identified, he appears to be a combat pilot of the rank of Colonel. He says that the Indian pilots suffered from a high fratricide rate, the term used for friendly kills, and had problems with the Sukhoi engines that were vulnerable to foreign object damage.

However, the Indian Air Force (IAF) said that the Sukhoi’s held their own against Ace Pilots of the USAF and Maintained a High Serviceability Rate throughout the Exercise. For the Record, the IAF has not Commented on the Outcome of the Red Flag Exercise. “Our Pilots were Functioning on a Stand-Alone basis while the USAF pilots were Part of a Network and were getting Inputs on Navigation, Target Information and Enemy Details. We were Getting all our Inputs Manually and were Fighting Fit even against All these Odds,� a Top IAF Officer said.

The USAF pilot says that the much touted thrust vectoring system of the Su 30 MKI’s, which gives the fighter a high degree of agility in close aerial combat was also beaten by F 15 pilots who used their combat experience with the F 22 Raptors to find a flaw in the Indian fighter. Explaining the manoeuver in detail, the pilot says that the USAF tapped a vulnerability in the thrust vectoring system but the Indian Pilots would soon find a way of rectifying the flaw.

Senior IAF Officers however say that SU 30 MKI pilots were More than a Match for their US counterparts and were Fighting against all Odds Even when the French team was Grounded for most of the Time during the Exercise. "


That is news!

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bubba:

correction: $400B.

uhmm...
I think that your assessment of America not being the vortex of World Economy is not correct(wrt to BRIC).

USA still controls the capital markets, military muscle and policies of the world.

Despite the fact the Japan has been number #2 in economy for the last 25 years what have they been able to influence in the world?

China, India, Brazil, Russia do not have the collective of a sound Capital Market, Real Estate, Consumer Spending and the social structure to get ahead of America.

USA is where it is today because of the progression of thought, resources, industrial bases combined with the cultural values backed by Military might. There is no one in World currently that can displace America from its position.

Last couple of times a change of World Order happened it was preceded by World Wars - not by Developing Economies or Capital Markets.

That is the bottom line. Jiske lathi uski bhaince.

It is so appropriate and logical howcome every other analyst forget this....beyond me.

bubba#41:

I don't think that the Chinese expansion of the domestic economy will reduce their foreign holdings by $40B; how much it will reduce will depend upon the import content of their domestic expenditure.

Re: # 8

Chalta / Romair:

Human kind will look for new frontiers. Only people who will obsolete themselves are Mian Masadi ji types. They will keep peddling the past, and refuse to learn new ways and new rules the new frontiers will demand. But then there have always been such people and will always be such people.

delhiwala#39:

This is mainly a descriptive article describing what is happening currently, with a little bit prognosis for the future. If globalisation is to be affected, it will be because of the global financial crisis which may restrict global money movements and not because of the weakening of G8 vis-a-vis other countries.

Hamid mian,

what do you say? about my thesis, that G.W.'s financial war with China, is right on the money. At least the chinese have to unload some of those USD 2T from their foreign reserves, albeit on their own economy. it seems that within the next 6 months into the next administration, we could see some more of unloading of their foreign reserves.

if the us tighten a little more, we could sell some high appraised valued foreclosed real estates in california, las vegas, and florida, to the chinese as well. at least our cities and counties could maintain their tax base, and educate our school children.

what say you?

DM Sir,
I read and then re-read this article and I find that everything you say in it is correct. However forgive me for asking a Green Question.
What is your pitch to this article? Are you saying that G-8 is rip-off to the World or G8 is itself ripped?
Also are you trying insinuate Globalisation with G8 in some?

DM Sir,
I read and then re-read this article and I find that everything you say in it is correct. However forgive me for asking a Green Question.
What is your pitch to this article? Are you saying that G-8 is rip-off to the World or G8 is itself ripped?
Also are you trying insinuate Globalisation with G8 in some?