Villagers are simpletons – they fear many things primarily because
they do not understand Economics, Finance, Strategies, International relations
– the list of things that they do not know is endless. One of their fears is
about the functions conducted by eminent people of the village and nearby. Sure when big people conduct functions, the
celebrations will be of a big magnitude and when simple people have to partake,
they have to necessarily gift bigger things, which sure would affect running
their families !
G
20 - is a group of Finance Ministers and
Central Bank Governors representing 20 major economies. It is elitist to be part of such groups. In fact, it consists of 19 countries plus the
European Union, which is represented by the President of the European Council
and by the European Central Bank. Collectively, the G-20 economies account for
more than 80 percent of the gross world product (GWP), 80 percent of world
trade (including EU intra-trade), and two-thirds of the world population. The
G-20 was proposed by former Prime Minister of Canada Paul Martin as a forum for
cooperation and consultation on matters pertaining to the international
financial system. The heads of the G-20 nations met biannually at G-20 summits
between 2008 and 2011. Since the November 2011 Cannes summit, all G-20 summits have been
held annually. It is a matter of pride
that India
is part of this G20.
Internationally,
at Singapore, Gold slipped for a third straight day after the U.S. Federal Reserve stopped short
of launching another round of quantitative easing to stimulate the economy, a
move that could have boosted bullion’s appeal in times of uncertainty. Spot
gold fell $3.49 an ounce to $1,601.89, having slipped to $1,520.29 an ounce on
Wednesday, its weakest since June 12 following the Fed’s announcement.
At
a National level, raising grave concerns, the
rupee fell further today coming close to a record low against the
dollar, as risk assets fell on disappointment about the scope of US Federal
Reserve’s bond purchases and after HSBC factory data from China showed a
contraction. Traders are on watch for
any potential intervention from the RBI to defend the currency. This morning the rupee was at 56.34/38 to the dollar versus its
56.15/16 close on Wednesday. It fell to 56.45 in early trade, close to its record
low of 56.52 hit on May 31. Increased demand for the American currency from
importers and a weak opening in the local equity market also put pressure on
the rupee, traders said. They added
dollar gained against euro in overseas markets on concerns that Spain ’s
troubled banks may need a bigger bailout.
We
have Dr Manmohan Singh, Pranab Mukherjee, P Chidambaram and other financial
wizards who will sure take action to allay our fears and ensure that economic
is stable. The threats and downratings
of S&P, Flitch are hotheaded revelations of their not so correct
study of Indian economic position, if our Rulers are to be believed.
At
the Earth Summit
India
had more than one reason to be happy, with its main concerns addressed in the
draft of the declaration to be adopted by the 90 global leaders here, but
Environment Minister Jayanthi Natarajan felt let down by rich nations
for lack of commitment in funding green programmes. She felt saddened by the lack of firm
commitment by the rich nations on how to fund schemes, technologies and
programmes that will result in making planet Earth greener and promote growth
and inclusion in a sustainable manner.
Manmohan
Singh, is scheduled to address Thursday the key event, which also marks the
20th anniversary (hence Rio+20) of the first such gathering of world leaders in
Brazil ’s
largest city that first emphasized the concept of sustainable development. He has a large heart and naturally cares for
the World crisis of which India
must have a role in bringing back things to normalcy. In tune with the ideals, Dr Man Mohan Singh
has announced that India
would contribute $10 billion (around Rs. 55,000 crore) to the global firewall
that seeks to contain any financial contagion emerging out of the euro zone
debt crisis. Brazil ,
Russia , India , China
and South Africa (Brics)
agreed to contribute to the fund created under the International Monetary Fund
(IMF) during its Spring meeting in Washington
in April, but had not disclosed the exact sums.
Now with India ’s
declaration at the G-20 meeting at Los Cabos in Mexico , the Brics nations’
contribution to the war chest will swell to $75 billion.
Prime
Minister Manmohan Singh said at the summit there was concern that the firewall
may not be adequate to deal with a contagion. “The resources currently expected
to be mobilized by Europe and the IMF are less
than what was estimated a year ago, and the crisis is actually more serious,”
he said.
A good initiative given India has to play a leading role at
the global level. Experts are quoted as
saying that this would not be a burden on India ’s forex reserves ! – do you
understand how and why such a largesse, when we are struggling at our domestic
front. There are reports that the Country’s growth is not on expected lines,
that the Nation is struggling to reduce rising inflation and staring at a
gaping fiscal deficit in order to revive growth, nothing appears to have been
done locally except questioning the wisdom and trying to analyse the personal
side of those involved in downsized rating – but Prime Minister has announced commitment to contribute a whopping $ 10 billion to the International
Monetary Fund's crisis coffers to tackle the Euro Zone crisis.
Economics is never easy to be understood by the common man
With
regards – S. Sampathkumar .
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