India has become the latest country to join in the bashing of Renminbi undervaluation saying it leads to a massive advantage for Chinese exporters.A research paper from India’s Central Bank says that its artificially boosts China giving it a competitive advantage over Indian exports.Note Brazil another one of the famed BRIC quartet has too been complaining about Chinese imports swamping its industry.Note Brazil has seen massive currency appreciation in recent years due to a combination of high interest rates and strong economic fundamentals.

India is also growing concerned about the growing trade deficit with China which totals almost $19 billion.Note it is the same like Brazil where machinery and low tech non commodity imports are killing their domestic industries.The paper calls that India should reduce dependence on Chinese imports which has gone up to 10.7 per cent during 2009-10 from 7.3 per cent five years ago.To avoid the implications in terms of imports, there is a strong need to diversify imports of these items.

The pressure on the Chinese to appreciate the yuan keeps growing by the day.Earlier strong US pressure had made China appreciate its currency by a few percentage points as the US Congress threatened to bring legislation against China labelling it as a currency manipulator.

India being hurt by undervalued yuan: RBI

China’s policy to keep its currency, the renminbi or yuan , artificially undervalued gives it a huge economic advantage and impacts India’s trade, says a research paper released by the Reserve Bank.

In the paper, ‘The Implications of Renminbi Revaluation on India’s Trade’, S Arunachalaramanan and Ramesh Golait of the RBI have said that an artificially undervalued currency gives China a distinct advantage in the export market.

“By keeping renminbi (RMB) undervalued against the US dollar (USD) and depreciating it in line with the USD in the international market without taking into account the economic fundamentals of China, it invariably and distinctly provides competitive advantage over its trade competitors and trade partners including India,” the paper said.

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One of the major reasons for the Chinese success in the export markets in Asia and Africa have been the massive vendor financing done by state owned Chinese banks.Large orders have been won by Chinese companies like Dongfang Electric and Huawei as Chinese Banks financed the multi billion Indian orders by cheap loans.Note in large project finance cases cheap loans can make a huge difference in project returns and can be the clincher in choosing the equipment supplier.The US Exim Bank too seems to be pulling up its socks in helping American companies win large equipment orders through vendor financing.Note the US Exim Bank had got involved in a huge controversy when it agreed to finance a ultra mega power plant based on coal energy by Reliance Power in India.Despite protests by environmentalists,Exim Bank had gone ahead in financing as it would lead to jobs in America.Note USA is one of the biggest laggards in climate change and the government does not really care much out there.

Now the US Exim Bank has picked on 2 solar projects in India which are going to be built by Amercian companies.One is by the Thin Film Solar PV Leader First Solar and another by a small time Solar Thermal equipment supplier Infinia Corporation. Note the interest rates in India are extremely high compared to the US and vendor financing by a US bank leads to a massive increase in profits for the project owner.

Ex-Im Bank Supports U.S. Renewable-Energy Jobs by Financing Solar-Power Projects in India

Ex-Im Bank has approved two transactions financing solar-energy exports to India that will support more than 100 American jobs at the production facilities of Infinia Corporation in Kennewick, Wash., and First Solar Inc. in Perrysburg, Ohio.

“These are the kinds of cutting-edge, U.S. renewable-energy technology exports that President Obama and Ex-Im Bank have made a priority. Our financing is enabling these innovative companies to realize exciting sales opportunities in key markets and maintain jobs in their communities,” said Ex-Im Bank Chairman and President Fred P. Hochberg.

Ex-Im Bank is the first international financing institution to approve solar-power projects under India’s National Solar Mission and the State of Gujarat’s Solar Power Policy.

Ex-Im Bank authorized a $30 million direct loan to the project sponsor, Dalmia Solar Power Ltd., on a limited-recourse project-finance basis. The loan will finance the sale of PowerDish™ – a modular solar electricity system – by a Washington State small business, Infinia Corporation, for a 10-megawatt (MW) solar-thermal project in Rajasthan.

The repayment of the loan is based on the cash flows generated by the sale of PowerDish-generated electricity to NTPC Vidyut Vyapar Nigam Ltd. (NVVN), the power trading subsidiary of India’s National Thermal Power Corp. The Indian government has provided special power price incentives to NVVN to promote the development of 20,000 MW of installed solar power by 2022.

“Ex-Im Bank’s support was absolutely essential for providing the long-term financing needed to move this project forward,” said Infinia CEO J.D. Sitton. “Infinia is at the forefront of developing technologies here in the United States that outperform traditional solar electricity generation, and we are grateful to have Ex-Im Bank as a partner helping us to grow our American work force.”

Infinia’s PowerDish produces more electricity, uses less space and costs less money than other solar-power systems by converting concentrated solar energy into electricity. The PowerDish couples Infinia’s free-piston Stirling engine with a dish-style solar concentrator to produce three kilowatts of grid-quality AC power. The company was created in 1967 to pioneer new ways to meet customer needs for heating, cooling and electricity. Its customers have included NASA and the Department of Energy. Infinia has approximately 145 employees at it manufacturing facility in Kennewick, Wash.

Ex-Im Bank also authorized a $19 million loan guarantee to PNC Bank in Pittsburgh, Pa., for a long-term fixed-interest rate loan supporting sales of thin-film solar modules by First Solar Inc. to a 15-MW solar power plant in the state of Gujarat.

Obama’s outlined a New Energy Policy as he periodically does without any far reaching national goals on to reduce America’s dependence on billions of barrels of imported oil which cause global warming,finance terrorist and prop up brutal regimes in the Middle East.However his periodic bursts of rhetoric on the US Energy Policy is nothing but a lot of empty gas without any specifics.Earlier he used to stress on nuclear energy which has been thrown out of the window with the Fukushima nuclear disaster.His plans of supporting the nuclear energy industry with $36 billion in DOE loans seems a bad if not a gruesome joke.Similarly last year his plans of allowing offshore drilling for Oil also fell flat after the massive BP Oil Spill ecological disaster.His New Energy Policy is anything but new as it hashes the same old stale ideas once again.The 5 points of his New Energy Policy (listed below) are as bad as they get.Using biofuels from corn increase food prices worldwide.The “Clean Energy Standard” is nothing but a statement without any implementation or specifics.The increased fuel efficiency for vehicles is the only thing good about the policy.The rest are just useless

1) More domestic production of oil.
2) Expand the use of biofuels as an oil substitute.
3) Develop natural gas as a transport fuel
4) Increase the efficiency of motor vehicles in order to use less gasoline.
5) Maintain a “clean energy standard” to promote electricity generation from plants by using cleaner burning fuels and renewables.

US is already way behind in the Green Industry trailing China and Germany for the biggest green investments in 2010.With lack of any movement towards climate change mitigation or large scale support for wind and solar energy,US should keep slipping further into oblivion even as countries like Taiwan,South Korea and even India make massive strides.The Opposition Republicans are even worst as they are completedly bought over by the powerful Oil and Gas Lobby.They have even less of a vision on how to change the blundering US Energy Policy than Obama.

Obama oil policy aims to cut imports by one-third, critics say it’s not enough

Pointing to continuing Middle East unrest and spiraling gas prices, President Barack Obama Wednesday proposed a one-third reduction in oil imports within the next decade.”Any claim that my administration is responsible for gas prices because we’ve ‘shut down’ oil production, any claim like that is simply untrue,” Obama said. “It might make for a useful sound bite, but it doesn’t track with reality. What is true is we’ve said if you’re going to drill offshore you’ve got to have a plan to make sure that we don’t have the kind of catastrophe that we had last year.”

The plan relies on a combination of increased domestic oil and natural gas production and incentives for alternative energy as well as support for nuclear power plants despite the recent Japanese disaster.

“I don’t think anybody here has forgotten what happened last year, where we had to deal with the largest oil spill in [our] history,” Obama said, as he outlined his plans for oil and gas development. “I know some of the fishermen down in the Gulf Coast haven’t forgotten it.”

Greenworldinvestor Articles that you should read on Failed US Energy Policies

  1. Solyndra Fab Shutdown a Slap in the Face of USA Discretionary Federal Green Aid
  2. US States Support Green Energy through Local Policies even as Federal Government is “Asleep at the Wheel”
  3. USA losing Green Jobs as Solar Companies shut US plants and Outsource Production to Mexico and China
  4. Is Obama’s expectation of a 40% US Marketshare of Vehicle Battery Industry Realistic?
  5. Germany adds as much Solar Energy in just 1 month as USA’s entire Installed Solar capacity
  6. Are the Subsidized Huge Solar Thermal Plants in California a Massive Waste of Public Money
  7. South Korea continues its Green Quest with Launch of its First All Korean EV Hyundai BlueOn Powered by SK Energy’s Lithium Batteries

The world’s total electricity generating capacity is around 4500 GW (2007 figures) which is expected to increase by 1.7% each year to rise to 7000 GW by 2035 according  to EIA.USA is still the world’s largest electricity producing country with more than 20% of the world’s power capacity with around 1 Terawatts of Electricity Capacity.China has been rapidly adding capacity in the last decade and the second biggest electricity producing country with more than 700 GW more than 70% of which is from coal fired power plants.Japan,Russia and India are No.3,4 and 5 on the list with 280 Gw,220 GW and 159GW respectively.Europe is the third largest region in terms of electricity capacity with more than 800 GW.India is rapidly increasing capacity and is projected to be the No.3 in the list by 2020 as it looks to more almost treble its current electricity capacity of around 150 GW (in 2007).

The backlash against coal and nuclear power is expected to throw many of the regions like Europe into shortages.The prices of electricity have been rising rapidly over the last decade and should continue to do so as global warming makes countries put a price on the carbon emissions.Besides increasing fossil fuel prices like coal and oil have alraedy made sharp power price increases inevitable.This is going to benefit the move towards renewable energy particulary solar energy which is seeing sharp decrease in costs.Here is a list of the major countries installed electricity capacity

USA 995 GW
China 716 GW
Japan 279 GW
Russia 221 GW
India 159 GW
Germany 140 GW
Canada 125 GW
Brazil 100 GW
South Korea 79 GW

Summary

The developed world electricity growth is expected to be less than 1% over the next 25 years while China and India grow at more than 3%.China should soon overtake USA as the largest producer of electricity while India should overtake Japan to take over the No.3 position.Note the electricity production is one of the most important benchmarks to measure the economic growth of a country.

The United Nations has voted on enforcing a “No Fly Zone” in Libya as Colonel Gadhaffi’s forces backed by aircraft and artillery have bombed their way to a winning position in Libya.The democratic protests in Libya has been violently suppressed by the despotic regime over there which has appeared at times as mad and lunatic.The rebels despite popular support have been cowed down by the massive military power of Gadhaffi and his mercenaries.This has  finally made the United Nations Security Council decide on attacking Libyan army by Air and enforcing a “No Fly Zone’.Note this has been done despite misgivings by China and others who abstained.However the West led by France has been adamant on helping democracy.

Turkey calls for cease-fire in Libya, opposes intervention

NATO member Turkey called for a cease-fire in Libya on Friday after the UN Security Council authorized a no-fly zone and the use of force against forces of Muammar Gaddafi to help rebels revolting against his rule.

Western Hypocrisy in Full View in Bahrain and Yemen

The governments in Bahrain and Yemen have been no less brutal in suppressing the democractic aspirations of their citizens.The ruling regimes in those countries which are monarchies have been looting public money and not allowing genuine democracy and freedom.Inspired by Tunisia and Egypt,the citizens in those countries have demanded the same right to freedom.They have been met with massacres by Yemeni forces who shot down 45 people dead and wounded hundreds.Bahrain has been equally opressive shutting down hospitals which were treating wounded protestors.They have even invited foreign military personnel to kill and intimdate protestors.The Use of Apache gunships against mostly unarmed citizens is as bad as it gets.However the West and US have remained silent in their hypocrisy.The client regimes of the Middle East can do whatever they please without any pressure from the  West.Except for some sermons there has been no talk of harder measures like sanctions or military action.

Gunmen Kill 45 Protesters in Yemen

Armed men opened fire on crowds of antigovernment protesters Friday in Yemen’s capital, killing an estimated 45 people and injuring hundreds—prompting Yemeni President Ali Abdullah Saleh to declare a state of emergency and suggesting his government has shifted to a hard line against its hardening opposition.

Friday’s bloodshed marked the most significant escalation in violence in Yemen’s capital since protesters began in January to call for the end of Mr. Saleh’s 32-year regime. The one-day death toll stood higher than the estimated 40 demonstration-linked fatalities in Yemen until now.

The day’s violence began after Friday prayers, a time city residents have in recent weeks joined protesters who are camped near San’a University. Several people who saw Friday’s crowds estimated the demonstrators numbered 100,000 or more, San’a's largest protests yet.

Bahrain funeral turns into defiant protest

Days after the Bahraini government banned demonstrations by opponents, about 2,000 residents of the mostly Shiite Muslim village of Sitra turned a funeral into the first protest under a new three-month state of emergency, a show of deepening resistance against the regime.

The government has arrested more dissidents and human rights workers, destroying their homes and also beating relatives, witnesses said. Many other activists have now gone into hiding in this tiny country, their family members said. The regime also demolished the towering national monument at Pearl Square traffic circle, where demonstrators had gathered for weeks before their rout Wednesday.

Turkey, which has opposed foreign intervention in Libya from the outset, said after the UN resolution that it backed a no-fly zone over Libya but reiterated opposition to foreign military action in the North African country.

Greenworld Articles Related to This One

  1. “Democracy Champion” USA caught in Hypocrisy Web as Brutal Middle Eastern Client Regimes face “Gandhian” Revolutions
  2. Western Hypocrisy Exposed in Democracy Movements as Saudi Military “invades” Bahrain
  3. USA Supports Tyrannical Saudi Troops Crackdown of Bahrain Protesters in their own Country
  4. Defender of Human Rights Obama has different standards (read none) for Pakistanis as Widow Suicide for Justice goes in Vain

A Wikileaks Cable has exposed more muck on Indian Politics which is already under fire from scam a day burden.The Ruling Party Congress which is facing scruntiny over multiple scandals like the Adarsh Housing Scam,Space Scandal,2G Telecom Scam now faces a new one.Wikileaks exposed the communication cables send by the US Embassy in India  which exposes how the Congress Party bought legislators from small parties in exchange for votes during the Indian-US Nuclear Deal.Note the Congress had lost the support its crucial Left Allies over the Nuclear Agreement and desperately needed the support of other MPs to survive.

The Wikileaks Cable says that an Indian Official Nachiketa Kapur showed an Embassy Staffer Two Chests filled with millions of Ruppees in Cash meant for bribing legislators.This corruption scam is the latest in a series over the last 6 months or so.Already India’s previous Telecom Minister is cooling his heels in Jail and crucial leaders of the ruling coalition have been questioned in the 2G Scam.Most of Indian corporate chieftains have also been implicated in the Telecom Scam with mudslinging in full flow.India’s Foreign Policy is being made by such crass and corrupt leaders is a shocking revelation though nothing new.Earlier Jharkand state had seen its legislators convicted of accepting bags full of cash during the earlier Congress regime.So this means that bribing and making Indian Policies is not a new thing.India’s Opposition Parties are making a huge hue and cry and demanding the PM’s resignation.

Indian Congress Leaders Satish Sharma,Kamal Nath are mentioned as ringleaders while the top leadership of the Congress also seems to be in the know of what was happening.Note the Congress is denying the charges as usual ( what would you expect) but Wikileaks does not have ANY REASON TO LIE about this story.

Satish Sharma aide showed U.S. Embassy employee cash to be used as ‘pay-offs’ in confidence vote

Five days before the Manmohan Singh government faced a crucial vote of confidence on the Indo-U.S. nuclear deal in 2008, a political aide to Congress leader Satish Sharma showed a U.S. Embassy employee “two chests containing cash” he said was part of a bigger fund of Rs. 50 crore to Rs. 60 crore that the party had assembled to purchase the support of MPs. The aide also claimed the four MPs belonging to Ajit Singh’s Rashtriya Lok Dal had already been paid Rs. 10 crore each to ensure they voted the right way on the floor of the Lok Sabha.

In a cable, dated July 17, 2008, sent to the State Department (162458: secret), accessed by The Hindu through WikiLeaks, U.S. Charge d’Affaires Steven White wrote about a visit the Embassy’s Political Counselor paid to Satish Sharma, who is described as “a Congress Party MP in the Rajya Sabha … and a close associate of former Prime Minister Rajiv Gandhi considered to be a very close family friend of Sonia Gandhi.”

Independently, Mr. Sharma told the Political Counselor “that PM Singh and others were trying to work on the Akali Dal (8 votes) through financier Sant Chatwal and others, but unfortunately it did not work out.” He said “the Prime Minister, Sonia Gandhi, and Rahul Gandhi were committed to the nuclear initiative and had conveyed this message clearly to the party.” Efforts were also on to try and get the Shiv Sena to abstain. Further, “Sharma mentioned that he was also exploring the possibility of trying to get former Prime Minister Vajpayee’s son-in-law Ranjan Bhattacharya to speak to BJP representatives to try to divide the BJP ranks.”

“Another Congress Party insider told PolCouns that Minister of Commerce and Industry Kamal Nath is also helping to spread largesse. ‘Formerly he could only offer small planes as bribes,’” according to this interlocutor, ‘now he can pay for votes with jets.’”

Cash for votes a way of political life in South India

Politicians and their aides in Tamil Nadu and Andhra Pradesh admitted to violating election law to influence voters in the 2009 Lok Sabha polls through payments in the form of cash, goods, or services, according to a revealing cable sent to the State Department by Frederick J. Kaplan, Acting Principal Officer of the U.S. Consulate-General in Chennai. In conversations with a visiting consulate team, Karti Chidambaram of the Congress, M. Patturajan, confidant of Union Minister for Chemicals and Fertilizers M.K. Alagiri and former Mayor of Madurai, and Member of Parliament Assaduddin Owaisi of the Majlis-e-Ittenhadul Muslimeen spoke without inhibition about how they, their principals, or their parties made payments to voters during the election campaign.

In an instructive and entertaining section titled ‘Can I get another morning paper?’ Mr. Kaplan explained the modus operandi for cash distribution adopted by the DMK in Thirumangalam: “Rather than using the traditional practice of handing cash to voters in the middle of the night, in Thirumangalam, the DMK distributed money to every person on the voting roll in envelopes inserted in their morning newspapers. In addition to the money, the envelopes contained the DMK ‘voting slip’ which instructed the recipient for whom they should vote.” This, Mr. Kaplan noted, “forced everyone to receive the bribe.” Mr. Patturajan , he wrote, “confirmed the newspaper distribution method of handing out money, but questioned its efficiency. He [Patturajan] pointed out that giving bribes every voter wasted money on committed anti-DMK voters, but conceded that it was an effective way to ensure the cash reached every potential persuadable voter”.

Union Home Minister P. Chidambaram’s 2009 Lok Sabha election campaign in Sivaganga was managed by his son. According to the cable, Karti Chidambaram specifically denied paying cash for votes, “but not because of any moral objection to doing so. He does not pay cash for votes in his rural constituency because it is impossible to distribute the money effectively when the villages are spread so far apart.” But “the President of the Tamil Nadu Youth Congress,” who is not named in the cable, told the Chennai Consulate-General team: “Karti is doing a good job in Sivaganga. He is distributing some money to the people, which his father won’t do.”

Greenworldinvestor Links on Indian Corruption

  1. Banana Republic India’s Totally Blatantly Corrupt Cricket Administration BCCI- Where You Can’t Buy a Match Ticket
  2. Indian Government shamelessly defends Corrupt Officials,Black Money despite claims to the contrary
  3. India’s Supreme Court Extremely Shocked by Industries Minister Role in Farmer Suicides
  4. Indian Small Cap Index,ETFs (SCIF,SCIN) get Massacred by Surfeit of Scandals
  5. Now Cadbury joins the Corruption Bandwagon in India – What a Surprise
  6. New Trend in Indian Corruption – PSU Bosses prefer Gold Bricks as Bribes
  7. Pot Calls Kettle Black as Indian 2G Telecom Scam Accused ADAG Group blames Bear Cartel for Fall in Infra Stocks
  8. Indian Corruption takes on Galactic Proportions Quite Literally!