Economic crisis in India 2013 | ALL Updates & News

[Fattyacids]

Where did I mention China in my original post?

 

[Nan Yang]

I am not an economist but even I can see what is happening.
What happening in India is exactly what happened in Asia during the 1998 financial crisis.
Negative current account, negative budget, high debt and high inflation.

Large US, European and Japanese funds will first buy future positions in India’s stock market.
Then they start to attack the Rupee by selling Rupees (Rupees that they do not have). This will force India to devalue the rupee. Once that happen, the stock market will crash because people need to liquidate their stock to pay extra interest on their foreign loans. Then these fund managers will sell these future positions, pay off with the now cheaper Rupees and suck billions out of India’s stock market.

Money from a 3rd world country will enrich the life style of the rich 1st world country.

Beware. India should immediately devalued its currency and start capital control right away. Or it will have to summit to the IMF.

 

[by78]

In my view Indian economy is much more safer than China...We never had t lie about stock market data...
But problem is Rupee is going down just because of some speculation. By the way you dont need to be so happy because your export to India will be in mess...May be it will create some opportunity for Indians. Another problem for u now is RMB is strengthening against dollor...

Interesting, but how does one lie about stock market data? Your assertion boggles the mind. How would you fake the said data when there are tens of thousands of traders, institutional equity investors, and other market participants trading on a daily basis and all have access to real-time
information and can easily cross-check?

And just for reference, Chinese equities are the worst performer in the past decade. If the Chinese had wanted to fake the data, wouldn't they have made it look better?

The truth is, you know NOTHING about equities and finance, so please SHUT UP.

And please, the fall of Rupee has nothing to do with 'speculation'. It has everything to do with the incompetent government failing to institute overdue structural reforms.

Which brings us to another truth: you know NOTHING about economics.

Come to think of it, you are possibly the least intelligent and least informed person I have ever met on this forum. No, I take that back. You are the least intelligent and least informed person I have ever come across anywhere in the past two years, and I have come across a lot of people.

 

[IndoCarib]

The entire constitution has to go. World markets will sky rocket hearing the news.

Your fattyacids have digested your brain. Most of your posts are nonsense

 

[faithfulguy]

In my view Indian economy is much more safer than China...We never had t lie about stock market data...
But problem is Rupee is going down just because of some speculation. By the way you dont need to be so happy because your export to India will be in mess...May be it will create some opportunity for Indians. Another problem for u now is RMB is strengthening against dollor...

Here is what I take issue with some Indians in here. this line
" my view Indian economy is much more safer than China...We never had t lie about stock market data..."

You can find data any where against any country, include the US, to claim that India has a better economy. But we all know that this is not true. Its best to stick with the topic instead of make ad hominem attacks against other posters here.

 

[faithfulguy]

I am not an economist but even I can see what is happening.
What happening in India is exactly what happened in Asia during the 1998 financial crisis.
Negative current account, negative budget, high debt and high inflation.

Large US, European and Japanese funds will first buy future positions in India’s stock market.
Then they start to attack the Rupee by selling Rupees (Rupees that they do not have). This will force India to devalue the rupee. Once that happen, the stock market will crash because people need to liquidate their stock to pay extra interest on their foreign loans. Then these fund managers will sell these future positions, pay off with the now cheaper Rupees and suck billions out of India’s stock market.

Money from a 3rd world country will enrich the life style of the rich 1st world country.

Beware. India should immediately devalued its currency and start capital control right away. Or it will have to summit to the IMF.

But India is too big of a country and too powerful of a country for such thing to happen. I remember George Soros make some money in similar ways against British pounds. 1.6 billion dollars to be exact. Or was it 1.6 billion pounds. I don't remember.

 

[djsjs]

i feel there is a conspiracy higher than the heaven.
who directed it?whats the aim?
we have to think about it.....

 

[Fattyacids]

I am not an economist but even I can see what is happening.
What happening in India is exactly what happened in Asia during the 1998 financial crisis.
Negative current account, negative budget, high debt and high inflation.

Large US, European and Japanese funds will first buy future positions in India’s stock market.
Then they start to attack the Rupee by selling Rupees (Rupees that they do not have). This will force India to devalue the rupee. Once that happen, the stock market will crash because people need to liquidate their stock to pay extra interest on their foreign loans. Then these fund managers will sell these future positions, pay off with the now cheaper Rupees and suck billions out of India’s stock market.

Money from a 3rd world country will enrich the life style of the rich 1st world country.

Beware. India should immediately devalued its currency and start capital control right away. Or it will have to summit to the IMF.

Rupee is already a capital controlled currency. if it were a free float, it is only worth as much as toilet paper by now

Here is what I take issue with some Indians in here. this line
" my view Indian economy is much more safer than China...We never had t lie about stock market data..."

You can find data any where against any country, include the US, to claim that India has a better economy. But we all know that this is not true. Its best to stick with the topic instead of make ad hominem attacks against other posters here.

How can you take issue? India is a super power.

 

[faithfulguy]

Rupee is already a capital controlled currency. if it were a free float, it is only worth as much as toilet paper by now



How can you take issue? India is a super power.

Yes, that is why George Soros and his likes have not trying to manipulate their currency. And India is indeed a superpower. I forgot about the superpower 2030 video.

 

[by78]

But India is too big of a country and too powerful of a country for such thing to happen. I remember George Soros make some money in similar ways against British pounds. 1.6 billion dollars to be exact. Or was it 1.6 billion pounds. I don't remember.

Remember, the British economy is bigger than the Indian economy still. In fact, if adjusted for inflation, the British economy at the time of Soro's breaking of the BoE was larger than what Indian economy is today. Therefore, it's entirely possible for currency traders to bring down the rupee.

But let's not start pointing fingers at currency traders, for they would have never gotten the chance to attack if it hadn't for the government's policy bungles.

Think of currency traders as your garden variety viruses, which are harmless if you are healthy and have a strong immune system. But if you don't take care of your body, these viruses become far more dangerous.

The Indian government's economic mismanagement is what weakened India's economic situation and put India in the position of being attacked by currency traders.

It's the government's fault.

 

[Fattyacids]

Yes, that is why George Soros and his likes have not trying to manipulate their currency. And India is indeed a superpower. I forgot about the superpower 2030 video.

Bloomberg reports that Soros is well aware of the India 2030 video. He is shitting in his pants.

 

[by78]

Bloomberg reports that Soros is well aware of the India 2030 video. He is shitting in his pants.

ROFLMAO! I just watched the said video for the first time. Wow...

When will Indian cities have impressive skylines so that Bollywood no longer needs to travel to Dubai for fantasy 'future' scenes?

 

[Fattyacids]

Your fattyacids have digested your brain. Most of your posts are nonsense

Is making personal attack your best reply?

Fatty acids are important sources of fuel

 

[IndoCarib]

Is making personal attack your best reply?

Fatty acids are important sources of fuel

Then explain this to me :

The entire constitution has to go. World markets will sky rocket hearing the news.

 

[by78]

India economy edges toward crisis as rupee plunges - Aug. 19, 2013

Efforts by Indian authorities to restore investor confidence appear to have backfired.

HONG KONG (CNNMoney)

The rupee is trading at record lows and stocks have lost 10% in a month, even as the Indian government insists the country's faltering economy is not in crisis.

The slide that has rocked Indian markets accelerated Monday, with the rupee hitting a new record low against the dollar. The Mumbai Sensex, the country's benchmark index, dropped 1.6% on Monday and has now lost 10% of its value in the past month.

Investors are worried about India's large current account deficit, which reflects the nation's tendency to import many more goods than it exports and leaves it heavily reliant on foreign capital.

Talk of tighter U.S. monetary policy has seen some investors pull out of emerging markets in recent months.

Prime Minister Manmohan Singh has tried to calm nerves, saying the government has enough foreign reserves to defend the rupee for months.

"There is no question of going back to the 1991 [balance of payment crisis]," Singh told the Press Times of India, referring to an episode that nearly resulted in India defaulting on its debt payments.

But with elevated inflation, a sky-high government deficit and the economy slowing, some are worried that recent government attempts to shore up confidence may have had the opposite effect.

Related story: BRIC markets left in the dust

Policymakers last week unveiled a series of measures designed to support the rupee, including limits on the import of gold, oil and other key commodities.

The government also made a controversial move to restrict the amount of money Indian citizens can take out of the country, and similar restraints were placed on outgoing corporate investment.

The question now is whether the changes will be enough to bolster the rupee and stabilize the economy.

Related story: Dream companies for Asia's grads

Many observers think the government must do more -- and markets seem to agree. The reaction was most violent on Friday, when investors returned from a one-day holiday to push the Sensex down by 4%.

"Authorities are taking a really piecemeal approach, and these measures are having exactly the opposite effect of what was intended," said Anjalika Bardalai, a senior analyst at the Eurasia Group. "The government has given the impression they are in panic mode."

Economists have long argued that India needs to implement structural economic reforms to bring about meaningful progress. Last year, parliament lifted restrictions on foreign direct investment after much debate -- a key step.

But investment dollars have not materialized as international companies seek more details about the new policy and remain wary of a change in the political winds that could reverse the decision.

And with national elections due before May 2014, India's fractious political parties may not be in a mood to cooperate.

"The problem now is that the government is running out of time and running out of options," Bardalai said. "A lot of what happens now with the rupee is beyond the government's control."



First Published: August 19, 2013: 7:30 AM ET