The world as I see it today
Since 11/02/16
Almost all indexes of the world have been or a tear.
The week was a significant, China was closed thanks to lunar new year.
Just before Kyle Bass a hedge-fund manager, came heavy at the Chinese Economy. This article best illustrated the position to me. After reading through this and various other articles, i went on tradingeconomics.com clicked on foreign exchange reserves. A bout of insecurity led me to inquire about India’s foreign exchange reserves.
It did come to my surprise, India’s foreign reserves denominated by the dollar are 1/9th of china’s. Took me a while to digest it. When i still reasoned with myself, i double-triple checked google for a million to trillion calculator. India has .35 trillion fx reserves as compared to china’s 3.2.
I wondered if there could be a run at the chinese banks/economy with it’s vast warchest, which nation would be safe ? If the yuan is to “catch up” 30-40 % will it also not force it’s trading competitors to adjust their currencies. What could happen if some-one declares a propoganda war like this on India ?
According to PBOC GovernorZhou Xiaochuan China currently contributes 25% of the world GDP. It’s massively unfair of western media to blame all problems of the world to China/Russia/Iran/Saudi Arabia. Perhaps, here in India we too have become biased, I’d like to think, it is mostly due to we have become american-ised thanks to music/sports/films it does not hurt we speak and think in the same language. If you sit back and watch the world now, a lot of it seems to be misleading. Excellent piece this one. I read it few times.
Another one, a contrarian view of Oil, Dr.Mamdouh Salameh thinks Oil will bounce back, or it HAS to bounce back. Most interesting, about the article was his view about America working hand in hand with Saudi Arabia and in collusion with Iran and russia. Re-iterating the oil price has very little to do with economics but political actions and reactions of key players. Listening to Bloomberg/CNBC you would not think Saudi Arabia and America are allies.



