With Every Country wanting to Use Exports to get out of their Tough Fiscal Situations,it does seem that Currency Manipulation will become a mainstream activity.Gold and Silver are already touching new highs and with countries hell bent on competitively devaluing their currencies,expect the precious metals to go even higher.
Global Imbalances back to pre-Lehman Days Global Imbalances are growing deeper by the day as the world returns to its unsustainable pre-Lehman days of Unbalanced Trade.Trade Surplus countries like Germany,Japan and China are again Exporting much more than they are Importing.The US has again become the world’s punching boy in terms of Trade Deficits running […]
These risks are real and not going away any time soon.They are waiting tinderboxes which could flare up with a small spark.India has managed a substantial premium in valuations over other emerging markets over its Consumption Led Growth.Institutional Investors know no better than common ones as was apparent from the 2008 Lehman Crisis.They are playing the Emerging Market Game till the Music Lasts.Make Sure you are not the one who finds no chair when the Music Stops.
China has overtaken the US and EU in Green Industry Leadership.US Utilities like Duke Energy have openly acknowledged Chinese primacy in this regard .Investment in the Renewable Energy Sector in China at $38 billion in 2009 was more than double that in the USA.Companies in the US are outsourcing Green Jobs to Mexico and China due to high costs and lack of Government support.2010 should see this gap widen further with Chinese plans to spend almost $760 Billion in Green Investments in the next decade.The Ernst&Young Ranking of the Most Preferred Green Investment Countries has further bolstered the case of Chinese Leadership.
One of the factors behind the Yen Rise is the Chinese record buying of Japanese Government Bonds (JGBs).The Japanese Finance Minister has become concerned as the Japanese cant reciprocally buy Chinese Government Bonds which are not freely traded.Note Japan has a huge government debt load of around 200% of Japans GDP which is mainly financed by domestic investors.China with its humongous Foreign Reserves is the biggest player in the Foreign Exchange Markets Today.
Increasing College Education in Developing Countries has led to Unemployement and Low Wages for White Collar Workers.The increasing number of people armed with College Degrees has led to a Perverse Situation where entry level White Collar workers are faced with abysmal wages that is if they get employment at all.There are hundreds of anecdotes where […]