Do you have money put away for a rainy day? How will you manage if there's a family emergency? What about a down payment for a home, or a fund for higher education, or retirement? Do you have loans to repay?
In this era of recession, deflation, and job cuts, it is especially important for you to consider where your hard-earned money is going; financial security is the key in today's unpredictable world. And the first step towards gaining that security is to have a Saving Plan.
Still not convinced? Then ask yourself why you need to save.
The answer's really very simple: so that your money can start earning money, and work towards reducing the effort you put in everyday.
START SAVING NOW: HERE'S HOW!
You might wonder how to begin saving if your income is already over-committed. Efficiency and discipline are the answers.
a) You need to first find out where your income is going. Maintain a diary for the month, noting down everything you spend on, to the last paisa. You will be surprised at the amount of random purchases you make - from coffee breaks to grocery bills. These are the best places to start trimming.
b) Then, make a budget. This isn't as difficult as you think. All a budget does is create a plan for spending, by stating expenses and goals. Make sure to cover fixed and regular expenses such as mortgage or rent, utility payments, and car or loan/credit card payments. Then set limits on necessities like groceries and clothing, as well as nice-to-haves like entertainment and travel. It's also important at this stage to factor in a savings amount.
c) Now, your first priority is an emergency fund, if you don't already have one in place. And the easiest way to do this is to have the amount deducted from your salary every month and put into a Fixed or Recurring Deposit. Give yourself a pat on the back if you find yourself adding that little extra to your fund because you managed to save a little more this month. You might find it easier to stay within budget if you use cash or debit cards for the necessities and frills.
d) As your emergency fund accumulates, your next task is to find more money for savings and even investment. Begin by paying off your credit cards. If you spend a little time examining your monthly statements, you will be amazed to see how much money you're losing just by way of interest!
SAVING Vs INVESTING
At this point, we need to address the differences between saving and investing.
Savings provide for emergencies and fund specific purchases in the near future (within two years). The primary goal is to store funds and keep them safe.
However, you invest to increase net worth and work toward long-term goals. Also realise that investing involves risk, where you could lose some of your original investment.
Only consider an investment plan when you have in place an emergency fund, insurance, control over credit use, and a retirement plan.
IN THE LONG RUN
Now, consider making a long-range savings and investment plan. When beginning to plan for investments, consider your goals, the amount of time you will be able to spend on nurturing these investments, how much you know about the funds, how much money you have to invest, whether you can tolerate risk, and handle loss.
Remember that your ultimate goal is a financially secure future for you and your family.
If you look back over all that we've discussed so far, you will realise that we've told you how to begin saving money, in small, manageable chunks.
The final objective might be to set aside enough for you to retire so that you don't have to work another day, but your immediate goal is to start the process and become habituated, so that saving becomes a way of life, and a chance to improve how you live.
Tuesday, December 1, 2009
Now, open a bank account in a grocery shop
Very soon, the kirana shop and the PCO in your neighbourhood, your insurance agent, a retired teacher and the nearby petrol pump, could
provide you with a slew of banking services like deposits and withdrawals, opening of accounts etc from their premises. On Monday, RBI permitted banks to appoint these entities to act as their agents and carry out several of the bank's operations. All these though, will come for a fee, pre-decided by your bank.
RBI has allowed entities like individual kirana/medical/fair price shop owners, PCO operators, agents of government-sponsored small savings schemes, insurance agents, petrol pumps owners and retired teachers to act as ‘business correspondents' (BCs) of banks. A notification by the RBI said that allowing banks to appoint BCs (agents in common parlance) was part of its financial inclusion initiative.
In August, an RBI working group was of the view that since the traditional ‘brick and mortar' banking model had limitations penetrating remote areas of India, the BC model could give banks a workable solution to provide banking services in inaccessible areas in a cost-effective manner. ‘‘Banks need to accept the BC model as extremely vital for achieving the goals of financial inclusion,'' the working group had recommended.
While appointing BCs, the RBI has looked at two aspects. One, BCs should have experience in handling cash inflow and outflow as part of their normal activities, so that the issues relating to cash handling are addressed. ‘‘For streamlining cash management, banks may consider adopting ‘cash routes' linking various BCs which are in close proximity to each other to a base branch, wherever warranted with suitable cash transit insurance,'' it said.
Secondly, to give the BC model a local touch, it said ‘‘banks may ensure that while appointing the above entities as BCs, the principle that the individuals are residents of the area in which they propose to operate as BCs, stands fulfilled.'' On issues of charges, RBI said it is the bank which will charge the customer in a transparent manner. BCs will not be allowed to charge customers directly.
as per Economics times report
provide you with a slew of banking services like deposits and withdrawals, opening of accounts etc from their premises. On Monday, RBI permitted banks to appoint these entities to act as their agents and carry out several of the bank's operations. All these though, will come for a fee, pre-decided by your bank.
RBI has allowed entities like individual kirana/medical/fair price shop owners, PCO operators, agents of government-sponsored small savings schemes, insurance agents, petrol pumps owners and retired teachers to act as ‘business correspondents' (BCs) of banks. A notification by the RBI said that allowing banks to appoint BCs (agents in common parlance) was part of its financial inclusion initiative.
In August, an RBI working group was of the view that since the traditional ‘brick and mortar' banking model had limitations penetrating remote areas of India, the BC model could give banks a workable solution to provide banking services in inaccessible areas in a cost-effective manner. ‘‘Banks need to accept the BC model as extremely vital for achieving the goals of financial inclusion,'' the working group had recommended.
While appointing BCs, the RBI has looked at two aspects. One, BCs should have experience in handling cash inflow and outflow as part of their normal activities, so that the issues relating to cash handling are addressed. ‘‘For streamlining cash management, banks may consider adopting ‘cash routes' linking various BCs which are in close proximity to each other to a base branch, wherever warranted with suitable cash transit insurance,'' it said.
Secondly, to give the BC model a local touch, it said ‘‘banks may ensure that while appointing the above entities as BCs, the principle that the individuals are residents of the area in which they propose to operate as BCs, stands fulfilled.'' On issues of charges, RBI said it is the bank which will charge the customer in a transparent manner. BCs will not be allowed to charge customers directly.
as per Economics times report
Raise tax exemption limit for citizens to Rs 4 lakh per year
NEW DELHI: Industry body Assocham today asked the government to raise the tax exemption limit on personal income from Rs 1.6 lakh per annum to Rs
4 lakh per annum and for senior citizens up to Rs 5 lakh per annum.
The industry body was giving its proposals on the draft direct taxes code which has been put in public domain by the government for comments.
The direct taxes code, which will replace the age-old Income Tax Act 1961, has proposed the tax exemption limit for common citizens at Rs 1.6 lakh while that for senior citizens at Rs 2.4 lakh per annum.
"With favourable consideration of this proposal, taxpayers in low and middle income group, who could end up paying more tax than now, on account of removal of various exemptions and deductions under DTC, can benefit from raise in threshold limit as tax savings on account of increase in it could offset impact of removal of exemptions and deductions," Assocham President Swati Piramal said.
Meanwhile, the industry body has also urged the government to bring in standard deduction of 50 per cent of the salary or Rs 2,40,000, whichever is less to balance out additional tax burden, which employees would be facing due to removal of various exemption.
4 lakh per annum and for senior citizens up to Rs 5 lakh per annum.
The industry body was giving its proposals on the draft direct taxes code which has been put in public domain by the government for comments.
The direct taxes code, which will replace the age-old Income Tax Act 1961, has proposed the tax exemption limit for common citizens at Rs 1.6 lakh while that for senior citizens at Rs 2.4 lakh per annum.
"With favourable consideration of this proposal, taxpayers in low and middle income group, who could end up paying more tax than now, on account of removal of various exemptions and deductions under DTC, can benefit from raise in threshold limit as tax savings on account of increase in it could offset impact of removal of exemptions and deductions," Assocham President Swati Piramal said.
Meanwhile, the industry body has also urged the government to bring in standard deduction of 50 per cent of the salary or Rs 2,40,000, whichever is less to balance out additional tax burden, which employees would be facing due to removal of various exemption.
Friday, November 20, 2009
TRAI fixes a portability fee to change mobile operators
NEW DELHI: Telecom regulator TRAI today fixed at Rs 19 the reference rate for portability fee--charged from users for changing operator while
retaining the number.
The per port transaction charge will be Rs 19 and the subscriber will not be charged more than that. However, operators are free to levy any amount less than or equal to this charge, TRAI said in a statement today.
Government has fixed the deadline of December 31, 2009, by which operators should ready their networks for porting of numbers in metros.
Accordingly the service is likely to be available in Delhi, Mumbai, Kolkata, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu, it said.
The Department of Telecommunications (DoT) had issued guidelines for for its implementation in the country in August last year.
retaining the number.
The per port transaction charge will be Rs 19 and the subscriber will not be charged more than that. However, operators are free to levy any amount less than or equal to this charge, TRAI said in a statement today.
Government has fixed the deadline of December 31, 2009, by which operators should ready their networks for porting of numbers in metros.
Accordingly the service is likely to be available in Delhi, Mumbai, Kolkata, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu, it said.
The Department of Telecommunications (DoT) had issued guidelines for for its implementation in the country in August last year.
Thursday, November 19, 2009
IRDA draws up list of names linked to terror outfits
If your name coincides with the entries in this list,like Abdul Manan, Abdul Razaq or a Mohammad Salim, you may be in for a rude shock when buying an insurance policy. Not only will your policy be frozen, your name will be forwarded to the joint secretary in the Union Ministry of Home Affairs without informing you. The onus will be entirely on you to prove your innocence.
The IRDA list includes names of banned terrorist organisations and individuals linked to them. As many as 504 individuals linked to either the Taliban or Al-Qaida figure in the list that’s been circulated to all insurance companies.
Accordingly, every time an insurer sells a policy to someone, he will first check whether his name figures in the list which will be updated regularly. Other names in the list are Abdul Rahaman, Abdul Kabir, Mohammad Hasan, Abdul Haq and Ricardo.
“In case a name matches with the entries in the list, it will be instantly conveyed to the Ministry of Home Affairs, the UAPA (Unlawful Activities Prevention Act) nodal officer of the state, the IRDA and the Financial Intelligence Unit — India (FIU-IND),” said Paresh Parasnis, principal officer and executive director, HDFC Standard Life.
He was talking to newsmen on the sidelines of a press conference here on Wednesday. “The list has been recently sent to us and we’ve been asked to keep close tabs. The objective is to prevent money laundering and prevention of terrorist activities,” he explained.
What’s more, the insurer will also file a suspicious transaction report with FIU-IND, and you may be charged with participating in money laundering activity. This will be followed up by verification by the state police and central agencies to find out if you actually are the person on the list.
But in case you are not who they initially thought you were, the authorities will on the basis of your evidence furnished, and if satisfied, pass an order within 15 working days, unfreezing the insurance policies.
However, if it isn’t possible for some reason to pass an order freeing the assets within 15 working days, the Nodal Officer of IS-I Division shall inform the applicant.
The IRDA list includes names of banned terrorist organisations and individuals linked to them. As many as 504 individuals linked to either the Taliban or Al-Qaida figure in the list that’s been circulated to all insurance companies.
Accordingly, every time an insurer sells a policy to someone, he will first check whether his name figures in the list which will be updated regularly. Other names in the list are Abdul Rahaman, Abdul Kabir, Mohammad Hasan, Abdul Haq and Ricardo.
“In case a name matches with the entries in the list, it will be instantly conveyed to the Ministry of Home Affairs, the UAPA (Unlawful Activities Prevention Act) nodal officer of the state, the IRDA and the Financial Intelligence Unit — India (FIU-IND),” said Paresh Parasnis, principal officer and executive director, HDFC Standard Life.
He was talking to newsmen on the sidelines of a press conference here on Wednesday. “The list has been recently sent to us and we’ve been asked to keep close tabs. The objective is to prevent money laundering and prevention of terrorist activities,” he explained.
What’s more, the insurer will also file a suspicious transaction report with FIU-IND, and you may be charged with participating in money laundering activity. This will be followed up by verification by the state police and central agencies to find out if you actually are the person on the list.
But in case you are not who they initially thought you were, the authorities will on the basis of your evidence furnished, and if satisfied, pass an order within 15 working days, unfreezing the insurance policies.
However, if it isn’t possible for some reason to pass an order freeing the assets within 15 working days, the Nodal Officer of IS-I Division shall inform the applicant.
World Looking forwards for China & India as a Global Consumer
Asia is leading the global economy out of the deepest downturn in decades but the recovery will be marred by high unemployment and huge
government debt across the industrialized countries, the OECD said on Thursday.
Central banks and governments in major Western economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal consolidation once recovery is stronger, but they will only need to move in late 2010 at the earliest given that inflation is so low, it said in its Economic Outlook.
The Paris-based Organization for Economic Co-operation and Development raised its global growth forecast for next year to 3.4 percent from the 2.3 percent it was predicting as recently as June, after an estimated contraction of 1.7 percent in 2009.
"We are looking at a scenario where disaster has been avoided but we're still looking at a scenario which involves slow growth and high unemployment," the OECD's chief economist, Jorgen Elmeskov, told Reuters television in an interview.
In the twice-yearly report, the OECD lowered its estimates of the scale of this year's recession and substantially raised most of its forecasts for growth in 2010, when it said the economy would remain dependent on government life-support.
U.S. growth, measured by gross domestic product, should rise 2.5 percent in 2010 after a contraction of 2.5 percent in 2009, and rise a further 2.8 percent in 2011, the OECD said.
Euro zone GDP should rise 0.9 percent in 2010 and 1.7 percent in 2011 after a downturn of 4.0 percent in 2009, it said.
Japan could expect GDP growth of 1.8 percent in 2010 and 2.0 percent in 2011 after a drop of 5.3 percent in 2009, it said.
In June, the OECD was predicting growth of less than 1 percent in 2010 in all three regions and for the 30 OECD member countries as a whole. It now sees GDP growth of 1.9 percent in 2010 and 2.5 percent in 2011, after a contraction of 3.5 percent in 2009.
"The upturn in the major non-OECD economies, especially in Asia and particularly China, is now a well-established source of strength for the more feeble OECD recovery," said the OECD, whose only two Asian members are Japan and South Korea.
The OECD's global growth forecast includes emerging giants China, Brazil, India and Russia with the mostly industrialized economies of its own 30-country membership and in all covers some 80 percent of world output.
The OECD said it expected world trade to grow 6.0 percent in 2010 and 7.7 percent in 2011 after a plunge of 12.5 percent this year, and economist Elmeskov said the OECD might if anything be underestimating the demand from fast growers such as China.
FEEBLE AND INDEBTED WEST
Compared to a GDP forecast of 1.9 percent next year for the mostly industrialized countries of its own membership, the OECD forecast growth of more than 10 percent in China this year due in large part to massive stimulus that it believes maintained GDP growth at more than 8 percent in 2009, when output was shrinking across the West.
India, which likewise weathered the crisis with growth of an estimated 6.1 percent in 2009, could expect 7.3 percent growth next year and a bit more in 2011, while Brazil, another fast developer, was headed for growth of 4.8 percent in 2010.
Government spending to stimulate the Chinese economy had not driven China's public finances into the parlous state that most governments in the developed economies will have to tackle when the recovery is more sure-footed, the OECD said.
Gross government debt in the OECD countries could on average exceed GDP in 2011, the Paris-based Organization said.
"Stopping the rot is clearly necessary and will call for fiscal consolidation that is substantial in most cases and drastic in some," the OECD report said.
"That said, and countries facing acute problems aside, consolidation should not proceed at a pace that undermines the recovery."
On the jobs front, the OECD forecast further increases in the OECD-wide unemployment rate, to 9.0 percent in 2010 and 8.8 percent in 2011 from 8.2 percent in 2009.
It predicted the U.S. jobless rate at 9.9 percent next year and dropping to 9.1 percent in 2011 after 9.2 this year, while it saw the rate in the euro zone hitting 10.6 in 2010 and moving up again in 2011 to 10.8 percent, after 9.4 percent in 2009.
report as per Economics Times of India
government debt across the industrialized countries, the OECD said on Thursday.
Central banks and governments in major Western economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal consolidation once recovery is stronger, but they will only need to move in late 2010 at the earliest given that inflation is so low, it said in its Economic Outlook.
The Paris-based Organization for Economic Co-operation and Development raised its global growth forecast for next year to 3.4 percent from the 2.3 percent it was predicting as recently as June, after an estimated contraction of 1.7 percent in 2009.
"We are looking at a scenario where disaster has been avoided but we're still looking at a scenario which involves slow growth and high unemployment," the OECD's chief economist, Jorgen Elmeskov, told Reuters television in an interview.
In the twice-yearly report, the OECD lowered its estimates of the scale of this year's recession and substantially raised most of its forecasts for growth in 2010, when it said the economy would remain dependent on government life-support.
U.S. growth, measured by gross domestic product, should rise 2.5 percent in 2010 after a contraction of 2.5 percent in 2009, and rise a further 2.8 percent in 2011, the OECD said.
Euro zone GDP should rise 0.9 percent in 2010 and 1.7 percent in 2011 after a downturn of 4.0 percent in 2009, it said.
Japan could expect GDP growth of 1.8 percent in 2010 and 2.0 percent in 2011 after a drop of 5.3 percent in 2009, it said.
In June, the OECD was predicting growth of less than 1 percent in 2010 in all three regions and for the 30 OECD member countries as a whole. It now sees GDP growth of 1.9 percent in 2010 and 2.5 percent in 2011, after a contraction of 3.5 percent in 2009.
"The upturn in the major non-OECD economies, especially in Asia and particularly China, is now a well-established source of strength for the more feeble OECD recovery," said the OECD, whose only two Asian members are Japan and South Korea.
The OECD's global growth forecast includes emerging giants China, Brazil, India and Russia with the mostly industrialized economies of its own 30-country membership and in all covers some 80 percent of world output.
The OECD said it expected world trade to grow 6.0 percent in 2010 and 7.7 percent in 2011 after a plunge of 12.5 percent this year, and economist Elmeskov said the OECD might if anything be underestimating the demand from fast growers such as China.
FEEBLE AND INDEBTED WEST
Compared to a GDP forecast of 1.9 percent next year for the mostly industrialized countries of its own membership, the OECD forecast growth of more than 10 percent in China this year due in large part to massive stimulus that it believes maintained GDP growth at more than 8 percent in 2009, when output was shrinking across the West.
India, which likewise weathered the crisis with growth of an estimated 6.1 percent in 2009, could expect 7.3 percent growth next year and a bit more in 2011, while Brazil, another fast developer, was headed for growth of 4.8 percent in 2010.
Government spending to stimulate the Chinese economy had not driven China's public finances into the parlous state that most governments in the developed economies will have to tackle when the recovery is more sure-footed, the OECD said.
Gross government debt in the OECD countries could on average exceed GDP in 2011, the Paris-based Organization said.
"Stopping the rot is clearly necessary and will call for fiscal consolidation that is substantial in most cases and drastic in some," the OECD report said.
"That said, and countries facing acute problems aside, consolidation should not proceed at a pace that undermines the recovery."
On the jobs front, the OECD forecast further increases in the OECD-wide unemployment rate, to 9.0 percent in 2010 and 8.8 percent in 2011 from 8.2 percent in 2009.
It predicted the U.S. jobless rate at 9.9 percent next year and dropping to 9.1 percent in 2011 after 9.2 this year, while it saw the rate in the euro zone hitting 10.6 in 2010 and moving up again in 2011 to 10.8 percent, after 9.4 percent in 2009.
report as per Economics Times of India
Man Who behind at the Back of TATA Sons
BEHIND all the power and prestige of the country's premier industrial group is one company: Tata Sons Ltd. It is this principal holding company that has floated most of the large and profitable Tata companies. A sample: Indian Hotels Company, Tisco, the Tata Power Companies, Tata Chemicals, Telco, and Tata Tea. These companies are supremely important for the group. Reason: not only do they tot up a large chunk of the group's sales and are among the leaders in their businesses, they also generate most of the profits.
Responding to group founder Jamshetji Tata's vision of the Tata Group being a trustee of national assets of India, the holdings of the Tata family were donated some generations ago to Tata trusts, which between them held about 80 per cent of the Tata Sons equity. Of the rest, almost 18 per cent of the equity capital was held by Pallonji Shapoorji Mistry from 1965 to 1995, with the remainder 2 per cent by the Tata family.
Two years ago, finding himself managing the Tata Group with an apology of a controlling stake, Ratan got Tata Sons to float a Rs 300-crore, 1:5 rights issue of shares. The various trusts renounced their rights in favour of group companies and some individuals. The issue was priced at Rs 1 lakh for each Rs 1,000 paid-up share, with an additional Rs 25,000 as redemption premium for each share, bringing the issue price at Rs 1.25 lakh. In a circular movement of money, the issue was picked up by Telco, Tata Chemicals, Tata Power, Indian Hotels and a host of finance companies, many of them subsidiaries of large Tata companies. Apart from the companies, Ratan picked up 50 shares, Fredie Mehta four, and Homi Sethna one share.
As a result, the stake of the trusts fell to 65.88 per cent, while the stake of the group companies rose to 12.74 per cent. Mistry, who, despite pressures didn't renounce his rights, saw his stake rise marginally to 18.37 per cent. The post-issue stake of Ratan and the Tata family reached 3.01 per cent.
In addition to the rights issue, Tata Sons has also issued non-convertible debentures worth Rs 108 crore, and had secured long-term loans and overdrafts worth Rs 73 crore from a consortium of six foreign banks. This was to finance the shoring up of its stake in the group companies—a move that was seriously questioned by RBI officials. During 1994 and 1996, Tata Sons needed to raise about Rs 700 crore out of which Rs 550 crore was required for the exercise of warrants of Tata Steel issued under the preferential allotment scheme in 1994.
Increasing the stake in the group companies was important because it had been coming under the microscope of much aware investors. For instance, investors were questioning why the Tatas were running Tisco with a mere 8 per cent stake, half of which was through group companies. With this circular investment route, the Tata stake has gone up to 15 per cent in Tisco and close to 20 per cent in Telco.
Since the trusts have no voting powers, it is the Mistry family who controls Tata Sons—and, therefore, the Tata Group. If mathematics of control was the only criteria, then for all practical purposes, the Tata Group could well be renamed the Mistry Group. Thankfully for Ratan Tata, Mistry—the new chairman of ACC—is a low-profile, non-controversial construction magnate, who, as far as Tata Sons is concerned, has till now seen himself as an investor and not a manager, and is clearly not interested in taking charge. Besides, he is also the father-in-law of Ratan's stepbrother Noel.
By Shekhar Ghosh from Outlook
Wednesday, November 18, 2009
US President Agree with there mistakes in Economic Dept - Every things have a limit
US President Barack Obama gave his sternest warning yet about the need to contain rising U.S. deficits, saying on Wednesday that if
Government debt were to pile up too much, it could lead to a double-dip recession.
With the U.S. unemployment rate at 10.2 percent, Obama told Fox News his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said in the interview with Fox conducted in Beijing during his nine-day trip to Asia.
"It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," he said.
Fox News, which released a transcript of the interview, showed that comment by Obama on Wednesday morning and said the full discussion would be broadcast later in the day.
JOBS FORUM
Obama is scheduled to hold a forum with U.S. business leaders and financial experts on Dec. 3 to discuss ways to lift the economy.
He said he had not decided yet whether any measures to boost the economy should be deficit neutral, with that being one of the things to be examined at the forum.
"Our first job was to get the economy to recover. And we're now seeing that," Obama said.
"We've seen economic growth (in the third quarter). We anticipate economic growth next quarter as well. I always said the job growth would lag behind economic growth. The question now is how can we accelerate it."
In an interview with NBC News, Obama said "there are a whole range of ideas out there" about how to kick-start hiring by businesses starting to invest and show profits again.
"We've examined a lot of them but one of the benefits of convening this group is it gives us a chance to talk directly to small businesses, medium-size businesses, the main drivers of employment to find out what exactly is going on."
Asked whether the jobs forum should have been held sooner, Obama said the focus after he took office in January was "to make sure we didn't slip into a Great Depression."
"We've gotten that job done," he told NBC. "Our next job is to make sure that we can accelerate the job growth because I recognize that people are really hurting right now."
Obama told Fox that one of his messages on his trip was that the United States should look for further export opportunities, especially in fast-growing areas of the world like the Asia-Pacific region.
"If we just boosted our share of exports by 1 percent, that might be 250,000 well-paying jobs in the United States. So export promotion would be an example of something we could do without spending money," he said.
"There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines. So we're taking a look at those."
By Economics Times of India
Government debt were to pile up too much, it could lead to a double-dip recession.
With the U.S. unemployment rate at 10.2 percent, Obama told Fox News his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said in the interview with Fox conducted in Beijing during his nine-day trip to Asia.
"It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," he said.
Fox News, which released a transcript of the interview, showed that comment by Obama on Wednesday morning and said the full discussion would be broadcast later in the day.
JOBS FORUM
Obama is scheduled to hold a forum with U.S. business leaders and financial experts on Dec. 3 to discuss ways to lift the economy.
He said he had not decided yet whether any measures to boost the economy should be deficit neutral, with that being one of the things to be examined at the forum.
"Our first job was to get the economy to recover. And we're now seeing that," Obama said.
"We've seen economic growth (in the third quarter). We anticipate economic growth next quarter as well. I always said the job growth would lag behind economic growth. The question now is how can we accelerate it."
In an interview with NBC News, Obama said "there are a whole range of ideas out there" about how to kick-start hiring by businesses starting to invest and show profits again.
"We've examined a lot of them but one of the benefits of convening this group is it gives us a chance to talk directly to small businesses, medium-size businesses, the main drivers of employment to find out what exactly is going on."
Asked whether the jobs forum should have been held sooner, Obama said the focus after he took office in January was "to make sure we didn't slip into a Great Depression."
"We've gotten that job done," he told NBC. "Our next job is to make sure that we can accelerate the job growth because I recognize that people are really hurting right now."
Obama told Fox that one of his messages on his trip was that the United States should look for further export opportunities, especially in fast-growing areas of the world like the Asia-Pacific region.
"If we just boosted our share of exports by 1 percent, that might be 250,000 well-paying jobs in the United States. So export promotion would be an example of something we could do without spending money," he said.
"There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines. So we're taking a look at those."
By Economics Times of India
Gold Mood on High - Because of Speculator in Commodity market
As per the London libero report The Spot gold hit a high of $1,149.15 and was at $1,147.30 an ounce at 1201 GMT, against $1,141.50 late in New York on Tuesday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange also hit a record $1,149.60 and were later up $8.30 at $1,147.70 an ounce.
"Yesterday the market took a breather and tested below $1,130 very quickly, (but) a few physical related bargain hunters were lined up to grab the dip," said Afshin Nabavi, head of trading at MKS Finance in Geneva. The market is being underpinned by fresh interest in gold from the official sector, he said, after a recent major bullion acquisition from India and smaller buys by the central banks of Mauritius and Sri Lanka.
The acquisitions underlined gold's appeal as a portfolio diversifies, especially in an environment where further dollar weakness was expected, analysts said. The dollar eased back on Wednesday from its biggest rise in three weeks in the previous session, as traders awaited US inflation data due at 1330 GMT.
The dollar index, which measures the US currency's performance against a basket of six others, was down 0.57 percent, while the euro/dollar exchange rate firmed. Other commodities also climbed, with oil rising back towards $80 a barrel and copper to 13-1/3 month highs near $7,000 a tonne. Both are being lifted by the weak dollar.
The physical market was quiet, however, with India's gold demand abating as prices struck fresh record highs after offtake picked up slightly in the previous two sessions, while scrap flow eased on hopes for higher prices.
Gold's strength also lifted other precious metals, with silver hitting a 16-month high at $18.83 an ounce, platinum reaching a peak of $1,463.50, its highest since September 2008, and palladium reaching a 15-month high of $376. Later silver was bid at $18.72 an ounce against $18.40, while platinum was at $1,460 an ounce against $1,453 and palladium was at $375 against $370.
"Given the bullish tone in the rest of the complex and increasing investment demand, both metals are likely to test higher in the coming sessions with resistance above pegged at $1,490 and $400," said TheBullionDesk.com analyst James Moore.
More on this Share Brokerage house and market Trade player believe that US $ will loose soon its Global currency level due to high Deficit of the Country(US) so that IMF recommend China Currency Yuan for the Global currency for 1 decades and 5 years, because of the $ weakness every Asian and Euro country were acquire more gold for there reserve and strengthening to more foreign currency comparative of $, that is Yuan to look forward by the countries,
"Yesterday the market took a breather and tested below $1,130 very quickly, (but) a few physical related bargain hunters were lined up to grab the dip," said Afshin Nabavi, head of trading at MKS Finance in Geneva. The market is being underpinned by fresh interest in gold from the official sector, he said, after a recent major bullion acquisition from India and smaller buys by the central banks of Mauritius and Sri Lanka.
The acquisitions underlined gold's appeal as a portfolio diversifies, especially in an environment where further dollar weakness was expected, analysts said. The dollar eased back on Wednesday from its biggest rise in three weeks in the previous session, as traders awaited US inflation data due at 1330 GMT.
The dollar index, which measures the US currency's performance against a basket of six others, was down 0.57 percent, while the euro/dollar exchange rate firmed. Other commodities also climbed, with oil rising back towards $80 a barrel and copper to 13-1/3 month highs near $7,000 a tonne. Both are being lifted by the weak dollar.
The physical market was quiet, however, with India's gold demand abating as prices struck fresh record highs after offtake picked up slightly in the previous two sessions, while scrap flow eased on hopes for higher prices.
Gold's strength also lifted other precious metals, with silver hitting a 16-month high at $18.83 an ounce, platinum reaching a peak of $1,463.50, its highest since September 2008, and palladium reaching a 15-month high of $376. Later silver was bid at $18.72 an ounce against $18.40, while platinum was at $1,460 an ounce against $1,453 and palladium was at $375 against $370.
"Given the bullish tone in the rest of the complex and increasing investment demand, both metals are likely to test higher in the coming sessions with resistance above pegged at $1,490 and $400," said TheBullionDesk.com analyst James Moore.
More on this Share Brokerage house and market Trade player believe that US $ will loose soon its Global currency level due to high Deficit of the Country(US) so that IMF recommend China Currency Yuan for the Global currency for 1 decades and 5 years, because of the $ weakness every Asian and Euro country were acquire more gold for there reserve and strengthening to more foreign currency comparative of $, that is Yuan to look forward by the countries,
Tuesday, November 17, 2009
Obama Lean on China - Whither its a fear of Yuan or the investment of Bond by China ?
US President Barack Obama on Tuesday nudged Chinese President Hu Jintao to allow the yuan currency to appreciate at a summit where they agreed to work to ease trade and economic frictions between the two giants.
Hu did not mention the yuan, China's currency policy or the dollar during remarks following a meeting with Obama in Beijing's Great Hall of the People.
However, Obama referred fleetingly to an issue which has provoked testy exchanges in recent days between US and Chinese officials, with Washington arguing that an undervalued yuan is stoking global economic imbalances. The yuan has been effectively pegged against the dollar since the middle of last year.
"I was pleased to note the Chinese commitment made in past statements to move toward a more market-oriented exchange rate over time," Obama said as Hu stood next to him on a podium with Chinese and US flags in the background.
"I emphasised in our discussion, as have others in the region, that doing so based on economic fundamentals would make an essential contribution to the global rebalancing effort."
Investors betting the yuan will soon rise may be disappointed as Beijing is likely to keep the currency on a tight leash at least until mid-2010 to cement China's recovery. At the same time, US pressure on China to act makes it hard for Beijing to move because it could be seen as bowing to Washington's demands.
The Chinese leader said both sides saw signs of a global economic recovery but noted there was some way to go.
In a joint statement released after the summit they said they were "determined to work together to achieve more sustainable and balanced global economic growth", echoing the position of the G20 on ironing out dangerous imbalances.
Hu, saying the talks went "very well", said Beijing and Washington would continue to have "consultations on an equal footing to properly address their economic and trade frictions".
"I stressed to President Obama that under the current circumstances our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stance," Hu said, a veiled reference to Chinese frustration at recent US trade measures against Chinese goods.
Emerging power
Hu expressed appreciation that Obama, who arrived in China on Sunday night, had welcomed a "strong, prosperous and successful China that plays an even greater role on the world stage".
Obama said he told China that all minorities should enjoy human rights and urged China to resume talks with representatives of the Dalai Lama, Tibet's exiled spiritual leader.
Obama did not meet the Dalai Lama when he was in Washington in early October. But the Dalai Lama has said they may meet after Obama returns from China, which condemns the Buddhist monk as a separatist for demanding Tibetan self-determination.
The two leaders also discussed diplomatic headaches such as Iran and North Korea.
Chinese media have avoided fawning over Obama, in contrast to the effusive receptions he has received in Europe. Several websites deleted comments championing Internet freedom that he made at a town hall talk with students in Shanghai on Monday.
Trade ties have surged since China opened up to the world and introduced market reforms in the late 1970s after decades of virtual isolation under Mao Zedong, founder of communist China.
But that has sparked tensions because of a huge surplus in China's favour. Chinese exports to the United States were USD 337.8 billion in 2008 compared to US exports to China of USD 69.7 billion.
by Reports on MoneyControl.com
Hu did not mention the yuan, China's currency policy or the dollar during remarks following a meeting with Obama in Beijing's Great Hall of the People.
However, Obama referred fleetingly to an issue which has provoked testy exchanges in recent days between US and Chinese officials, with Washington arguing that an undervalued yuan is stoking global economic imbalances. The yuan has been effectively pegged against the dollar since the middle of last year.
"I was pleased to note the Chinese commitment made in past statements to move toward a more market-oriented exchange rate over time," Obama said as Hu stood next to him on a podium with Chinese and US flags in the background.
"I emphasised in our discussion, as have others in the region, that doing so based on economic fundamentals would make an essential contribution to the global rebalancing effort."
Investors betting the yuan will soon rise may be disappointed as Beijing is likely to keep the currency on a tight leash at least until mid-2010 to cement China's recovery. At the same time, US pressure on China to act makes it hard for Beijing to move because it could be seen as bowing to Washington's demands.
The Chinese leader said both sides saw signs of a global economic recovery but noted there was some way to go.
In a joint statement released after the summit they said they were "determined to work together to achieve more sustainable and balanced global economic growth", echoing the position of the G20 on ironing out dangerous imbalances.
Hu, saying the talks went "very well", said Beijing and Washington would continue to have "consultations on an equal footing to properly address their economic and trade frictions".
"I stressed to President Obama that under the current circumstances our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stance," Hu said, a veiled reference to Chinese frustration at recent US trade measures against Chinese goods.
Emerging power
Hu expressed appreciation that Obama, who arrived in China on Sunday night, had welcomed a "strong, prosperous and successful China that plays an even greater role on the world stage".
Obama said he told China that all minorities should enjoy human rights and urged China to resume talks with representatives of the Dalai Lama, Tibet's exiled spiritual leader.
Obama did not meet the Dalai Lama when he was in Washington in early October. But the Dalai Lama has said they may meet after Obama returns from China, which condemns the Buddhist monk as a separatist for demanding Tibetan self-determination.
The two leaders also discussed diplomatic headaches such as Iran and North Korea.
Chinese media have avoided fawning over Obama, in contrast to the effusive receptions he has received in Europe. Several websites deleted comments championing Internet freedom that he made at a town hall talk with students in Shanghai on Monday.
Trade ties have surged since China opened up to the world and introduced market reforms in the late 1970s after decades of virtual isolation under Mao Zedong, founder of communist China.
But that has sparked tensions because of a huge surplus in China's favour. Chinese exports to the United States were USD 337.8 billion in 2008 compared to US exports to China of USD 69.7 billion.
by Reports on MoneyControl.com
Asian Scam by Rajarathnam
Billionaire titan Rajarathnam is born in Srilanka but brought up in US, he is a The silence speaks volumes about Sri Lanka's scarred modern history, and its persistent entanglement in suspicion brewed by the 25-year war with the separatist Liberation Tigers of Tamil Eelam (LTTE), which Sri Lanka won in May. "I really can't speak about him," said one former associate, echoing the comments of many people Reuters spoke with. In addition to the U.S. probe of Galleon, Sri Lankan officials are investigating Rajaratnam's finances after he made substantial donations in 2005 to a Tamil organisation that was subsequently banned for its links to the LTTE. Even in post-war Sri Lanka, suspicion can lead to arrest, and the government has the authority to seize money it links to the LTTE, making those who know the man deeply cautious of any comment. Another simpler factor may be at work, according to a letter his lawyers sent to a New York court seeking reduced bail terms and vowing that Rajaratnam would defend himself vigorously in the country he considers home. "Mr. Rajaratnam is a 52-year-old citizen of the United States who, although born in Sri Lanka, has lived in the United States for nearly 30 years," the letter said. As extraordinary as his success in building the Galleon Group hedge fund into a $7 billion behemoth at its peak, Rajaratnam's story is typical of hundreds of thousands of minority Tamils who almost entirely severed ties to Sri Lanka as it slid into ethnic conflict.By the time full-blown civil war erupted in 1983, many Tamils with the means to do so like Rajarathnam's family had already left for Europe, North America and Australia for school and work. Many sold their property and have never returned, instead forming a close-knit diaspora community. The son of the chairman of the Sri Lankan arm of the Singer sewing machine company, Rajarathnam was born and raised into the privileged life of Colombo's post-independence elite. He grew up in Cinnamon Gardens, an enclave of Colombo dominated by grand, whitewashed colonial homes flanked by palm trees, and attended the prestigious St. Thomas Preparatory School in Colombo that has minted many of Sri Lanka's business and political leaders. Rajarathnam left for England sometime in the mid-1970s, where he finished secondary school and graduated with an engineering degree from the University of Sussex in 1980. By 1983, he earned an MBA from the University of Pennsylvania's Wharton School.He expressed shock that Rajaratnam, who has two brothers and two sisters who are all American citizens, had been arrested. "There is a difference in insider trading in Sri Lanka and the U.S. In Sri Lanka, that is the norm. But his family wouldn't stoop to these things," the friend said. Sri Lanka's stock market has enjoyed a powerful surge since the end of the conflict in May, with the CSE All-Share index having doubled so far in 2009.
Although Sri Lanka has strict laws against insider trading, lawyers and brokers say enforcement is weak and the relatively small number of players in the market means there is a coziness in the financial community that is almost unavoidable. Rajaratnam has not been accused of any wrongdoing in Sri Lanka's capital markets. He rarely returns to Sri Lanka -- friends say he was last on the island in 2005, and stayed at the Union Hilton residential hotel when he came since he owns no property under his name. He was in the country to supervise the millions in charitable contributions he had given to rebuilding areas of the country after the devastating Dec. 26, 2004, tsunami, and to look at potential investments, friends say.
But every one believe LTTE is a terrorist group but in the past they were like the terrorist but after the truth full election they were formed as a Army , but now they were scatter all over the world but Srilanka government hunting the people even some innocent people, not for peace but for the cold blood murder, because of that, srilanka governmenttry to access the Rajarathnam case to occur all the remaining profit of galleon
Although Sri Lanka has strict laws against insider trading, lawyers and brokers say enforcement is weak and the relatively small number of players in the market means there is a coziness in the financial community that is almost unavoidable. Rajaratnam has not been accused of any wrongdoing in Sri Lanka's capital markets. He rarely returns to Sri Lanka -- friends say he was last on the island in 2005, and stayed at the Union Hilton residential hotel when he came since he owns no property under his name. He was in the country to supervise the millions in charitable contributions he had given to rebuilding areas of the country after the devastating Dec. 26, 2004, tsunami, and to look at potential investments, friends say.
But every one believe LTTE is a terrorist group but in the past they were like the terrorist but after the truth full election they were formed as a Army , but now they were scatter all over the world but Srilanka government hunting the people even some innocent people, not for peace but for the cold blood murder, because of that, srilanka governmenttry to access the Rajarathnam case to occur all the remaining profit of galleon
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