Indian Economy: News and Discussion

IndianHawk

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It's natural progression. We are still pretty lite on gold given the size of our economy.

For ex France holds 2000 ton. Although it's a good hedge against dollar in case trade war hits both USA and china badly.

Germany France use gold as most of their foreign reserve. In future if we want rupee to evolve into a truly international free floating currency we'll need a lot more gold to back it and as foreign reserve.

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Deathstar

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It's natural progression. We are still pretty lite on gold given the size of our economy.

For ex France holds 2000 ton. Although it's a good hedge against dollar in case trade war hits both USA and china badly.

Germany France use gold as most of their foreign reserve. In future if we want rupee to evolve into a truly international free floating currency we'll need a lot more gold to back it and as foreign reserve.

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Isnt Is why sovereign gold bond like schemes were started by government?Indian public has some of the highest gold in the world , probably highest
 

IndianHawk

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Isnt Is why sovereign gold bond like schemes were started by government?Indian public has some of the highest gold in the world , probably highest
Gold bond scheme was meant to lower the demand of imported gold . Indian hoard gold for traditional Reasons and we pay for it in dollars so it was a huge component of our current account deficit.

Gold bond scheme is trying to recycle Indian family gold into economy to reduce import and hence reduce current account deficit.

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Haldiram

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Isnt Is why sovereign gold bond like schemes were started by government?Indian public has some of the highest gold in the world , probably highest
Right. They gave a lot of incentives. Gold bonds were even yielding ~3% cash dividend which is a cleaner form of generating a cashflow from gold than mortgaging it at Muthoot Finance. Still, the target audience was not reached. The only people who took SGBs were people who previously invested in Gold ETF. What the gormint wanted is for the physical gold hoarders (i.e wives of the house), to stop their obsession with gold. That didn't happen.

It seems we're going to have to do what the US did, i.e threaten the people to part with their gold at a one time settlement cost and ban future imports. It's bullshit importing a shiny metal from Gulf nations and ruining our CAD. Losing forex for petrol is inevitable but gold is completely avoidable. That money should be parked in Indian Bonds. It will serve as a reservoir of loans for young entrepreneurs and it will also yield interest for the investor. Much better than dangling it around their fat aunty cleavages like some medal for having killed our CAD.
 

Vijyes

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Right. They gave a lot of incentives. Gold bonds were even yielding ~3% cash dividend which is a cleaner form of generating a cashflow from gold than mortgaging it at Muthoot Finance. Still, the target audience was not reached. The only people who took SGBs were people who previously invested in Gold ETF. What the gormint wanted is for the physical gold hoarders (i.e wives of the house), to stop their obsession with gold. That didn't happen.

It seems we're going to have to do what the US did, i.e threaten the people to part with their gold at a one time settlement cost and ban future imports. It's bullshit importing a shiny metal from Gulf nations and ruining our CAD. Losing forex for petrol is inevitable but gold is completely avoidable. That money should be parked in Indian Bonds. It will serve as a reservoir of loans for young entrepreneurs and it will also yield interest for the investor. Much better than dangling it around their fat aunty cleavages like some medal for having killed our CAD.
Impossible to ask people to part with the good. It will result in civil war. Americans never used gold as extensively as Indians. Parting with gold will be akin to the chain snatchers snatching jewellery
 

Haldiram

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Impossible to ask people to part with the good. It will result in civil war. Americans never used gold as extensively as Indians. Parting with gold will be akin to the chain snatchers snatching jewellery
The gormint snatches people's land for highway widening projects very frequently. They are given a compensation par the circle rate (much lower than the optimistic market rate) and resettled elsewhere. It can be done for gold too. Russia and China have accumulated gold in huge quantities in the last 5 years. India has just begun the process. The logical progression will take them to the same path.

In a flourishing economy, cash is king and by proxy, the gormint is king because they can print it and tweak rates and do all kind of gymnastics. In an economic slump, cash is meaningless, and the gormint is scared of gold and land holders becoming more powerful than them, so they try to strip their citizens of these assets before a big crash. This is to prevent those holding gold and land from becoming the new feudal landlords. Wait and see for a year > Gold rates will go up, simultaneously the public gold holding will go down. In essence, the gormint will retain its relative richness vis-a-vis the citizens.

Makeup clad babes in TV studios will start flooding the news-o-sphere with bad news about gold and real estate. Keep an eye on em babes. Em be weapons of mass distraction.
 
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Haldiram

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News 1 >> Late Sunday night, Section 144 CrPC was imposed in Srinagar and mainstream party leaders – NC leaders Omar and Farooq Abdullah, and PDP chief Mehbooba Mufti, among others – were placed under house arrest.

News 2 >> US and China have decided to impose new rounds of sanctions on each other.

News 3 >> Sensex has crashed 650 points in just an hour.

News 4 >> Foreign investors have withdrawn 3000 crores in a single trading session (counting Friday).

News 5 >> The rupee also tumbled 86 paise or 1.22 per cent against the dollar and is trading at 70.46.

Baki sabh kushal mangal.

That seems to be the case. Logon ko itna dara doge toh paisa withdraw karne lagenge. The FPI guys requested twice to review the new taxation law because it's a double whammy for them. First LTCG and then the surcharge, that makes the LTCG equivalent to 14%, on top of that the rupee has plunged so foreigners are at the brink of their patience. Ek toh profit barely 3% to 4% ho raha hai, aur uss chote profit ka bhi 14% hissa LTCG me dena pad raha hai unko. FM even refused to entertain them. 40% of the money in Indian markets is foreign money. If they decide one day to pull it out, the whole market will deflate like a balloon. The inkling of this major withdrawal made the smaller FPIs withdraw earlier (Singapore and Gulf investment hedge funds).

Expect the gormint to issue some relief or some cosmetic relief-building statement this week. Bank liquidity has dried up. The only place a company can look to raise funds is the markit. If the stock prices are stunted, even that source dries up and puts pressure on the gormint.
 
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ezsasa

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Late Sunday night, Section 144 CrPC was imposed in Srinagar and mainstream party leaders – NC leaders Omar and Farooq Abdullah, and PDP chief Mehbooba Mufti, among others – were placed under house arrest.

Sensex has crashed 650 points in just an hour.

Foreign investors have withdrawn 3000 crores in a single trading session (counting Friday).

The rupee also tumbled 86 paise or 1.22 per cent against the dollar and is trading at 70.46.

Baki sabh kushal mangal.
Something else is also happening in china and JP too..
The yuan's weakening the most since that epic devaluation in 2015. Why? PBOC says it's because of tariffs, protectionism. China said to have asked state buyers to HALT U.S. agricultural imports.

 

ezsasa

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Something else is also happening in china and JP too..
The yuan's weakening the most since that epic devaluation in 2015. Why? PBOC says it's because of tariffs, protectionism. China said to have asked state buyers to HALT U.S. agricultural imports.

[Breaking] Kosdaq market falls more than 6%, triggering brief trading suspension

 

Vijyes

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The gormint snatches people's land for highway widening projects very frequently. They are given a compensation par the circle rate (much lower than the optimistic market rate) and resettled elsewhere. It can be done for gold too. Russia and China have accumulated gold in huge quantities in the last 5 years. India has just begun the process. The logical progression will take them to the same path.

In a flourishing economy, cash is king and by proxy, the gormint is king because they can print it and tweak rates and do all kind of gymnastics. In an economic slump, cash is meaningless, and the gormint is scared of gold and land holders becoming more powerful than them, so they try to strip their citizens of these assets before a big crash. This is to prevent those holding gold and land from becoming the new feudal landlords. Wait and see for a year > Gold rates will go up, simultaneously the public gold holding will go down. In essence, the gormint will retain its relative richness vis-a-vis the citizens.

Makeup clad babes in TV studios will start flooding the news-o-sphere with bad news about gold and real estate. Keep an eye on em babes. Em be weapons of mass distraction.
Gold has only 1 purpose - act as war reserve. We buy things like food and important supply via money, not gold. So, regardless of what gold one has,it is not usable except to buy goods from foreign countries during war. In wartime, government will need support of people and people will rally behind the government or set of people who stand for a cause. People will contribute with gold amd life. So, the gold with people will only serve as war reserves and not impede government in any way.

In USA, gold was the standard of dollar till 1970s. So, USA took gold from its people to be abke to print dollar. USA even took dollars from Europe and then refused to return it in 1970 by abolishing gold standard!

But in countries like Germany, gold was not captured from its people as Germany already used to have non-pegged currency and hence had no need
 

Haldiram

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Meanwhile, libtards : Economy going down due to Kashmir.


When income tax notice goes north, Sagarika goes south. :troll:

Dis commie son of a hoe spent his entire life saying that the stock market doesn't represent the economy of real India, since the 'real economy' lies in the forests where Naxals pick Mahua. Now when the market goes a negligible -2%, he's beating his chest.

Is the Korean market also crashing because of Kashmir? Benco, libtards.
 

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