Indian tortoise slips into reverse and can't catch Chinese hare
- Thread starter SXNJ
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India will bounce back at some point. I wouldn't count them out just yet. It will take time, but at some point they will surpass the growth rate of China as China slows. India's main problems are factionalism and political deadlock, along with a penchant for talk but no action.
As for China, All the easy growth is done in China. To continue further up the chain will require China make some substantial changes:
First, introduce competition. There's a fine line in supporting domestic companies. The best way is to have several companies with deep enough pockets to do research and other long-term goals.
Second, Brand build. There's zero reason why Dell or HP has to be alive today. All the revenues of those companies should be the revenue for Chinese companies. Without the Chinese OEM doing the hard work, the HPs and Dells would not be able to compete. Cut them out of the equation and brand build your own companies and keep more money for yourself.
Third, introduce transparency. The more transparent a political process or judicial process is, the more non-corrupt it is. Corruption hates transparency, and that's exactly why we must introduce it. A functioning court system that is fair and unbiased towards officials is absolutely vital to a healthy and functioning economy.
If we do these steps, it will not be long before China becomes the biggest and most advanced society in the world.
As for China, All the easy growth is done in China. To continue further up the chain will require China make some substantial changes:
First, introduce competition. There's a fine line in supporting domestic companies. The best way is to have several companies with deep enough pockets to do research and other long-term goals.
Second, Brand build. There's zero reason why Dell or HP has to be alive today. All the revenues of those companies should be the revenue for Chinese companies. Without the Chinese OEM doing the hard work, the HPs and Dells would not be able to compete. Cut them out of the equation and brand build your own companies and keep more money for yourself.
Third, introduce transparency. The more transparent a political process or judicial process is, the more non-corrupt it is. Corruption hates transparency, and that's exactly why we must introduce it. A functioning court system that is fair and unbiased towards officials is absolutely vital to a healthy and functioning economy.
If we do these steps, it will not be long before China becomes the biggest and most advanced society in the world.
Hehe... learn something in some free mindset school, then look past at this thread..
shuttler
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its rhetoric that india will get worse before better. they have much deeper entrenched problems than you mention.
Chinese Century
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indian borrowing rates are very high, and with the persistent inflation problem they cannot cut interest rates too low.
but since the current account deficit, investors are losing confidence in the indian currency.
the indian borrowing rates will continue to rise.
india is pretty much screwed, if they loosen monetary policy, inflation will get worse.
but if they raise interest rates to fight inflation, borrowing ability will be much harder.
things will get even worse when gdp growth starts to slow down causing fiscal revenues to slow and the government budget deficits will get even worse causing them to borrow even more. but with borrowing rates so high, indian government cannot afford these high interest payments.
the only solution is to cut the spending and reduce the budget deficit, but since the indian economy only grows because of its debt based consumer economy, if it cant spend beyond its means(by going into debt) then its gdp growth will slow dramatically.
this is the problem when you rely on deficit spending for gdp growth and being a debtor nation.
india is in deep trouble.
the US runs the same sort of ponzi scheme, but the US dollar is the reserve currency and thus have a global demand so inflation is not a problem as global investors hold dollars the federal reserves prints. global investors go to the dollar as a 'safe haven'.
but the indian rupee is not a reserve currency so it does not have that priviledge.
india has to run an economy the old fashion way.
only reserve currencies have more rope to hang themselves.
india must turn into a manufacturing powerhouse to reduce the current account deficit.
india must also balanced the budget and stop living beyond its means. if that means accepting a slower growth rate, then so be it.
but since the current account deficit, investors are losing confidence in the indian currency.
the indian borrowing rates will continue to rise.
india is pretty much screwed, if they loosen monetary policy, inflation will get worse.
but if they raise interest rates to fight inflation, borrowing ability will be much harder.
things will get even worse when gdp growth starts to slow down causing fiscal revenues to slow and the government budget deficits will get even worse causing them to borrow even more. but with borrowing rates so high, indian government cannot afford these high interest payments.
the only solution is to cut the spending and reduce the budget deficit, but since the indian economy only grows because of its debt based consumer economy, if it cant spend beyond its means(by going into debt) then its gdp growth will slow dramatically.
this is the problem when you rely on deficit spending for gdp growth and being a debtor nation.
india is in deep trouble.
the US runs the same sort of ponzi scheme, but the US dollar is the reserve currency and thus have a global demand so inflation is not a problem as global investors hold dollars the federal reserves prints. global investors go to the dollar as a 'safe haven'.
but the indian rupee is not a reserve currency so it does not have that priviledge.
india has to run an economy the old fashion way.
only reserve currencies have more rope to hang themselves.
india must turn into a manufacturing powerhouse to reduce the current account deficit.
india must also balanced the budget and stop living beyond its means. if that means accepting a slower growth rate, then so be it.
Chinese-Dragon
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Latest news from India:
Rupee ends at all-time closing low of 56.23; remains under pressure - The Economic Times
Another record low!
Rupee ends at all-time closing low of 56.23; remains under pressure - The Economic Times
Another record low!
laman12345
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faithfulguy
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Indian Rupee slide will hurt the Chinese economy. so don't rejoice in neighbors fire as it will spread to your house.
Chinese-Dragon
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kumarkumar1867
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India is slowly and steadily going ahead we dont want to rush fast & finish fast !
Our rise started after 90's & comparatively we have done very well.
We are developing our nation there is no competition,dont know why stupid chinese keeps doing trash comparisons like this one on each & every forum...
Anyways , some common sense for OP, who lacks info about hare & tortoise
Average Life Span of Hare = 5 to 8 years & Average Life Span of Tortoise = 120 to 200 years !!
Moral :- Hare is fast for a while but in end tortoise wins in long term goals
Our rise started after 90's & comparatively we have done very well.
We are developing our nation there is no competition,dont know why stupid chinese keeps doing trash comparisons like this one on each & every forum...
Anyways , some common sense for OP, who lacks info about hare & tortoise
Average Life Span of Hare = 5 to 8 years & Average Life Span of Tortoise = 120 to 200 years !!
Moral :- Hare is fast for a while but in end tortoise wins in long term goals
laman12345
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steady??? what a big joke. India debt ratio is more worse than Spain!
1 China Huge trade surplus
1. India Huge trade deficit
2. China low inflation
2. India high inflation
3. China Low Debt
3. India High Debt
4. China low unemployment (too many jobs, not enough labour hehe)
4. India high unemployment
5. China $ rises to historically HIGH
5. India $ drops to historically LOW
India debt ratio is more worse than Spain! Fix it quickly or your country will collapse faster than Spain
shuttler
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Lets see if RBI will intervene this afternoon to prevent their rupees diving towards 57. How much fx reserve will be ultilized in theprocess! Their bullets are running short!
Is it too late to make your hedge?
india has been consistently making use of these resorts like issuing hi yield loans which target their n r i to save the country from demise.
Is it too late to make your hedge?
india has been consistently making use of these resorts like issuing hi yield loans which target their n r i to save the country from demise.
shuttler
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SXNJ
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This is the tortoise' fortune in China!
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Dude, you forget to post how we make the ivory as a handicraft
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