Clinton nudges India to broaden interests, influence in China’s backyard

[SR 71 Blackbird]

The 3rd largest economy in the world is japan and you are beyond top 10.
BS, tell what you wrote to Clinton.

Beyond top 10?We are 10th & we will be 3rd within 15 years.

 

[chinapakistan]

Beyond top 10?We are 10th & we will be 3rd within 15 years.

My mistake, you are number 10.

we will be 3rd within 15 years.

I dont believe prediction, only truth speaks strongly.

 

[AZADPAKISTAN2009]

US is interesting while itself it has agreement with Canada , and Mexico for trade and commerce but it advises Pakistan/India/China to go buy more weapons typical US

 

[Chinese Century]

Beyond top 10?We are 10th & we will be 3rd within 15 years.

3rd within 15 years? lol not a chance.

make that close to 50 years.
india will get a debt crisis like greece pretty soon the way u have run up ur debt. ur deficits are high and ur debt to gdp is very high.

indian economy is built on debt based consumption. the same ponzi scheme greece played and lost.
we will see how far this goes before the house of cards starts to fall apart.

 

[IndoCarib]

3rd within 15 years? lol not a chance.

make that close to 50 years.
india will get a debt crisis like greece pretty soon the way u have run up ur debt. ur deficits are high and ur debt to gdp is very high.

indian economy is built on debt based consumption. the same ponzi scheme greece played and lost.
we will see how far this goes before the house of cards starts to fall apart.

Man ! you have no idea of economics, let alone of India's !

The World Bank says India will become the third largest economy after China and the US by 2025.

India Marches Ahead to Emerge as the Largest Economic Power of the World | European Economic Growth

 

[unicorn148]

3rd within 15 years? lol not a chance.

make that close to 50 years.
india will get a debt crisis like greece pretty soon the way u have run up ur debt. ur deficits are high and ur debt to gdp is very high.

indian economy is built on debt based consumption. the same ponzi scheme greece played and lost.
we will see how far this goes before the house of cards starts to fall apart.

you know nothing about indian economy. Our Dept is very less compared to any other country.Our debt is just 240 Billion $ which is just 15% of our GDP and our foriegn reserves are 310 Billion $ so we will never have any such prob

 

[Gandhi G in da house]

Man ! you have no idea of economics, let alone of India's !

The World Bank says India will become the third largest economy after China and the US by 2025.

India Marches Ahead to Emerge as the Largest Economic Power of the World | European Economic Growth

The writer of the article is an Indian. They won't believe it .

 

[IndoCarib]

^^^^^
They will rubbish any source on Indian economy growth

 

[Gandhi G in da house]

The 3rd largest economy in the world is japan and you are beyond top 10.
BS, tell what you wrote to Clinton.

Please learn English sir , i said India will be 3rd largest in 15 years .

Today we are at no.10 according to IMF and no.9 according to World Bank.

 

[Gandhi G in da house]

3rd within 15 years? lol not a chance.

make that close to 50 years.
india will get a debt crisis like greece pretty soon the way u have run up ur debt. ur deficits are high and ur debt to gdp is very high.

indian economy is built on debt based consumption. the same ponzi scheme greece played and lost.
we will see how far this goes before the house of cards starts to fall apart.

all economists of the world on one side and You on the other . Not a very difficult choice to make .

 

[mikkix]

Pakistan is for USSR= Past
India is for china= Present
Future= whole world vs America

 

[Chinese Century]

Man ! you have no idea of economics, let alone of India's !

The World Bank says India will become the third largest economy after China and the US by 2025.

India Marches Ahead to Emerge as the Largest Economic Power of the World | European Economic Growth

you know nothing about indian economy. Our Dept is very less compared to any other country.Our debt is just 240 Billion $ which is just 15% of our GDP and our foriegn reserves are 310 Billion $ so we will never have any such prob

indian budget deficits are close to 10%.
indian debt to gdp is close to 60%.

indian growth is debt based consumption. in 5 years indian debt to gdp will be 100%. when u reach that level, ur economy slows due to too much debt weighing on the economy. india is piling up debt in enormous numbers that growth cannot nullify that. greece grew fast with debt based consumption and look where they are now. u reach a point like greece when u have to pay off that debt, as the risk of default rises, interest rates rise which means the cost of financing ur deficits increases dramatically. this drains economies. just look at japan's economy, they ran up massive deficits in the good times and when the debt based ponzi scheme ended, they needed to go deeper into debt to fight off the recession. 20 years later, japan is still in a depression, their massive debt is keeping their economy stagnant. same will happen to india, india cannot fight against the laws of economics. india runs massive trade and budget deficits. india is still a debtor nation.

saying india will be the 3rd biggest economy in 2025 is utter fantasy by some indian analyst, he thinks india can continue on the path of close to 10% fiscal deficits with already a debt to gdp ratio of 60% and never slow down. this is the same thing that was said of the US and greece, that debt will keep rising without any payback in the future.

foreign reserve accumulation of india is due to keeping the rupee competitive against the dollar, not due to trade surpluses or foreign investments. indian central bank intervenes in the foreign exchange market(forex) to buy up dollars to keep the rupee weaker, which causes accumulation of dollars. india will have to mop up those reserves as the indian rupee strengthens as it will lose its value. the current indian debt are huge and rising fast to use reserves to pay off the debts. when india cannot afford to go into debt, u cannot import as many products due to a significantly weaker currency, this drives down living standards. this is happening in the US and if greece were out of the euro, it will have the same result. india will see the same result.

everyone was saying japan would become the largest economy when they were in their debt binge in the 1980's, then their ponzi scheme debt binge ended and so did their economy. all those predictions were made by people that lacked analytical understanding of economics.

fundamentally strong economies are grown with savings and production, businesses need capital to invest in property, plant and equipment to produce, to get get capital u need savings, if u have low savings in ur nation u have to borrow from foreigners to make up for ur lack of savings in ur own nation. this causes u to go into borrowing, which means running budget deficits constantly.
if u have ur own savings u use that to produce goods to export and consume urself without going into debt. when u produce ur own goods u dont need to buy many goods from foreign nations and run large trade deficits.

there are major flaws in the indian economy that if is not addressed soon will cause economic ruin like japan, greece and US. india is playing the same game those nations played, trying to defy the laws of economics by violating those laws and thinking u can get away with it forever.

indian economy looks great from the outside to economic illiterates, but once u analyse it closely, u see deep flaws that needs serious restructuring.
the biggest danger to indian economy is indian patriotism getting in the way of addressing the real economic problems.
china has a problem due to its massive stimulus package which caused huge lending to local governments which led to a real estate bubble and chinese government saw the dangers of that and is identifying those problems without thinking everything is fine. its like a tumour, the longer u wait to address those problems the more it spreads and kills off the person.

indian banking system is also under capitalized. they will need to be saved in the future by either using the forex reserves india has accumulated or going deeper into debt to pump liqudity into the system.

i understand these things because i have a degree in economics and finance. i specialized in trade and asian economies.
if u dont trust me, then go look up someone like jim rogers talking about the indian economy who has said the same type of things for a long time.

india is doing one thing right that china hasnt, that is to aggressively raise interest rates to fight inflation, but for china its difficult as the RMB is pegged to the dollar and since bernanke started QE2 which is expanding the money supply, the difference in the interest rates between the US(lowest) and china(higher) causes capital flows to the nation with the higher interest rates which is china. this means capital inflows into china causes higher demand for the RMB, which causes the RMB to appreciate, thus it moves away from the set peg as the RMB rises vis a vis the dollar. since the chinese want the peg to remain, the chinese central bank has to increase their own money supply to buy up those dollars that have flowed into the chinese economy, this causes the RMB to weaken again to the level of the peg set by the PBOC. so the more china raises interest rates, the bigger the interest rate differential between the US and china which causes china to increase money supply further to buy up those dollars that will flow to china to take advabtage of higher interest rate returns.
this increase in money supply causes inflation, so the solution is to let the RMB appreciate to its market level which means the PBOC has to increase the money supply less to buy less dollars thus reducing the rise in inflation. eventually china can mop up these excess RMB floating in the chinese economy to reduce inflation. china is gradualy letting the RMB appreciate to stop the inflation problem aswell as increase the purchasing power of the chinese people to consume more of the products china produces.

 

[Speeder 2]

well said, Chinese Centry.

No need to educate the fella nonetheless. India GDP's biggest problems are, to put it shortly :

different Indian accounting rules (e.g. the recognition of sales)

+ its GDP deflator artificially boast its GDP's growth rate,

+ on top of ridiculously unsustanable inflation rates ,

+ its insane public debt level, and

+ stupidly disporpotional level of its Service Sector as % of it s GDP in realtion to its development statue.


These will result a bullsh!t illusion of "high growth", for otherwise the increase of wealth for average Gupta would be HUGE even for only 2 years accumulated 9% annual growth, which is not the case in slumland India.


Go back to the OP "Clinton nudges India to broaden interests, influence in China’s backyard" , the translation in Hindi ( which pretty much resembles a shot of 007 Octopussy where the Afgan prince orders his Indian servant to go outside of the plane to deal with Bond) :

-- The perceived high IQ is nudging the low IQ , with encouragement "darn the wind is tight... I myself shall retreat , and you go cover me" --



;

 

[Chinese Century]

well said, Chinese Centry.

No need to educate the fella nonetheless. India GDP's biggest problems are, to put it shortly :

different Indian accounting rules (e.g. the recognition of sales)

+ its GDP deflator artificially boast its GDP's growth rate,

+ on top of ridiculously unsustanable inflation rates ,

+ its insane public debt level, and

+ stupidly disporpotional level of its Service Sector as % of it s GDP in realtion to its development statue.


These will result a bullsh!t illusion of "high growth", for otherwise the increase of wealth for average Gupta would be HUGE even for only 2 years accumulated 9% annual growth, which is not the case in slumland India.


Go back to the OP "Clinton nudges India to broaden interests, influence in China’s backyard" , the translation in Hindi ( which pretty much resembles a shot of 007 Octopussy where the Afgan prince orders his Indian servant to go outside of the plane to deal with Bond) :

-- The perceived high IQ is nudging the low IQ , with encouragement "darn the wind is tight... I myself shall retreat , and you go cover me" --



;

some brilliant points made.
i especially like ur point about the indian service sector being such a large part of its economy relative to its development stage.

service sector is a wealth CONSUMING industry such as retail, financials, etc.
manufacturing is a wealth PRODUCING industry.

developing nations always start off with manufacturing and exporting until they have the middle class to consume their own goods. only when u have a manufacturing base to produce goods do u built a service sector to complement that manufacturing sector. when u have a service sector economy, u need to borrow money to run a service sector if u dont have a manufacturing base.
for example, retail is a service industry, retail stores need goods on the shelves for people to go and buy, if u dont produce those goods at home, u have to import them from abroad which means going into debt to buy those things. u borrow money to buy foreign goods, which causes u to run budget and trade deficits. this is one of the main problems in the indian economy. service sector economies are run by developed nations. india is still a developing nation.
first u crawl, then u walk, then u can run.
india is trying to run before u crawl and walk.

this is what is happening to the US and UK. they have lost their manufacturing base that produces consumer goods that the average middle class person wants, so they import and run up the debt and deficits to consume foreign goods with borrowed money from china. they are using chinese savings to buy those chinese goods. once china stops lending those savings to the US, the chinese can keep their savings and can afford to buy the goods they make themselves.

indian IT companies are service providers, trade surpluses in services dont make up for the massive trade deficits in goods.

always remember, goods production is the core to an economy aswell as savings. service sector comes after once u build ur middle class. if u do this the right way, then u dont run up massive debt and deficits.
china is doing it the correct way.