Yearly Archives: 2013

Fear of Fed Retreat Roils India

"After a growth spurt from 2006 to 2011, the country lapsed back into a plodding pace as economic reforms lost steam. India's government, in an effort to narrow the current-account gap, has tried to curb gold imports and announced a plan to buy more of the country's oil from Iran through what is effectively a barter mechanism. On Wednesday, the country reduced the amount of money residents and companies can send abroad, sparking fears of more-draconian measures. The government says these moves aren't a prelude to capital controls and that it doesn't plan to impose restrictions on companies repatriating profits." Continue reading →

Continue ReadingFear of Fed Retreat Roils India

Indian Food Inflation Is Getting Out Of Control

"Vegetable prices in India spiked 46.59% in July year over year, another ugly bullet point in the country's persistent struggle with massive food inflation. In particular, the onion — a staple vegetable whose rising prices have dogged ruling parties in the past — saw a particularly dramatic jump. India has already lost hundreds of billions of dollars due to inflation in the past few years. Of course, the country's poor population, which spends the lion's share of income on food, has been hit hardest. India's central bank has cut interest rates three times this year, but lowering it further could further crush the rupee and drive inflation higher, the Journal reported." Continue reading →

Continue ReadingIndian Food Inflation Is Getting Out Of Control

A Summer of Troubles Saps India’s Sense of Confidence

"The Indian government recently loosened restrictions on direct foreign investment, expecting a number of major retailers like Walmart and other companies to come rushing in. The companies have instead stayed away, worried not only by the government’s constant policy changes but also by the widespread and endemic corruption in Indian society. Wednesday night, the government announced measures to restrict the amounts that individuals and local companies could invest overseas without seeking approval. It was an astonishing move in a country where a growing number of companies have global operations and ambitions." Continue reading →

Continue ReadingA Summer of Troubles Saps India’s Sense of Confidence

India to launch Save Gold Campaign to convince consumers to deposit gold

"India's bullion industry is set to revive its gold deposit scheme in a bid to mobilise gold coins and bars lying idle. The Save Gold Campaign (Swarna Bachao Abhiyan) is hoped will mop up some of the gold currently lying fallow with individuals, banks, high networth individuals, charitable trusts and even temple trusts, that is estimated to be as much as 25,000 tonnes. The consumer would take sealed gold and authenticity certificate to the bank, which would issue a deposit certificate for a valid period, ranging from one and a half to three years. After the said period, the depositor would get the gold back with interest as promised by the bank." Continue reading →

Continue ReadingIndia to launch Save Gold Campaign to convince consumers to deposit gold

George Soros Takes a Giant Put Position Against the S&P 500

"Hedge fund titan George Soros' biggest position is a huge bearish bet that the Standard & Poor's 500 will go down, MarketWatch reported. Soros has a history of rolling the dice on risky propositions in the past and making giant gains. He is known as 'The Man Who Broke the Bank of England' because of his successful bet against the British pound that led to $1 billion in profits during the 1992 Black Wednesday U.K. currency crisis. Soros Fund Management reported it bought a put on 1,248,643 units of the SPDR S&P 500 Trust (SPY) exchange-traded fund (ETF) in the second quarter – its largest holding, according to MarketWatch." Continue reading →

Continue ReadingGeorge Soros Takes a Giant Put Position Against the S&P 500

Repo Market Decline Raises Alarm as New Regulations Strain Debt

"The U.S. repurchase, or repo, market where banks and investors borrow and lend Treasuries and other fixed-income securities shrunk to $4.6 trillion daily outstanding last month, down 35 percent from 2008. Financial institutions are responding to more stringent capital standards imposed by regulators around the world. Already, the group of dealers and investors that advise the U.S. Treasury say that they see declines in liquidity in times of market stress, including wider gaps between bid and offer prices and the speed of completing trades. The potential consequences are higher borrowing costs for governments, companies and consumers." Continue reading →

Continue ReadingRepo Market Decline Raises Alarm as New Regulations Strain Debt

Bitcoin and China: More than Meets the Eye?

"If the Chinese government intends to steer the country toward being an effective post-industrial economy, then offering increased economic freedom and a pro-innovation environment is the way to go. Perhaps there is indeed an 'avant garde' in the Chinese government, which sees Bitcoin as a place to make one of its first moves. Or, perhaps, China’s Bitcoin-friendliness is still simply the result of government blindness, and a crackdown is due to come in two or four months. But with every passing week the alternative hypothesis is becoming increasingly likely; perhaps China’s Bitcoin acceptance has more behind it than meets the eye." Continue reading →

Continue ReadingBitcoin and China: More than Meets the Eye?

Cayman FATCA Agreement Makes It Tougher for Wealthy Americans to Hide Money

"The Cayman Islands, known as a haven for wealthy Americans seeking to stash cash overseas without scrutiny from the U.S. government, is about to become less secret. An agreement between the countries will put in place the Foreign Account Tax Compliance Act, or Fatca. The 2010 law makes it tougher to hide money overseas because foreign banks must report their accounts to the U.S. Internal Revenue Service or face, in some cases, a 30 percent withholding tax. The accord is significant because the Cayman Islands is a major financial center and home to operations for dozens of banks, funds and wealth-management entities." Continue reading →

Continue ReadingCayman FATCA Agreement Makes It Tougher for Wealthy Americans to Hide Money

CIA admits to helping overthrow Iran’s democratically elected leader in 1953

"The CIA has publicly admitted for the first time that it was behind the notorious 1953 coup against Iran’s democratically elected prime minister Mohammad Mosaddeq, in documents that also show how the British government tried to block the release of information about its own involvement in his overthrow. Malcolm Byrne, deputy director of the national security archive, has called on the US intelligence authorities to release the remaining records and documents. 'There is no longer good reason to keep secrets about such a critical episode in our recent past. The basic facts are widely known to every school child in Iran,' he said." Continue reading →

Continue ReadingCIA admits to helping overthrow Iran’s democratically elected leader in 1953

Guardian Editor: Intelligence Agents Destroyed Hard Drives After Snowden Story

"In a particularly revealing moment, Rusbridger said he was contacted by an agent of the GCHQ, who said 'You've had your fun. Now we want the stuff back,' referring to the classified material provided to the paper by Snowden. Rusbridger said he asked the official if the British government intended to shut down the paper. The official said that in the absence of the handover or destruction of classified material, that was indeed the intention. And so one of the more bizarre moments in the Guardian's long history occurred – with two GCHQ security experts overseeing the destruction of hard drives in the Guardian's basement." Continue reading →

Continue ReadingGuardian Editor: Intelligence Agents Destroyed Hard Drives After Snowden Story