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|Posted on November 19, 2013 at 4:21 AM||comments (8)|
Good morning, readers. As the DOW passed 16,000 yesterday, I didn't write anything at that moment. Regular readers of my column/blog will surely know that I was one of the few to suggest the DOW would go past 14,000 - then past 15,000 (the magic of 15,000) - and only recently 16,000. I was of the view that the DOW could even do 17,000 this year, in the next five weeks or so. A thousand points in say 25 working days, is it possible? I shall wait to assess the markets further before I would commit to such a suggestion.
In the meantime, I imagine a lot of punters will take some money off the table, and put into alternative markets. India SENSEX has seen more inflows in last few days.
If not this year, then certainly I believe the DOW will hit 17,000 in next few months, on the proviso that the feel-good is assisted by the candy distribution, on which the panel will decide in the US this week.
That's all for now.
I wish joy and success to all my readers, in Netherlands, Fuzhou, California, India, Kenya, Tokyo, etc, etc.
Caveat : Everyone trades entirely at their own risk, I am merely sharing my views.
(c) Copyright 19th November 2013, Durudarshan H. Dadlani.
|Posted on November 9, 2013 at 6:12 AM||comments (19)|
My thanks to the staff at these Search Engines for listing and indexing my website, and to Vistaprint for so beautifully hosting my website over last 28 months. It has built from strength to strength, drawing many visitors each day. Thanks to all :
Google (the multi-trillion dollar brain)
Twitter (tweet tweet to you)
LinkedIn (professional and so well defined)
Yahoo (book readers love you)
Bing (looks like people like spy thrillers)
and, just for good measure, a few porno sites, harmless fun is okay I'd say.
My blogs being read overnight are as follows :
- The ECB's 25 basispoint cut
- Stephanie Ruhle, CNBC interviewer
(She's actually an anchor for Bloomberg, working in New York)
- This is time for buyers to support Bangladesh factories
(American companies have done so, may blessings be unto them)
- Thomas Sugrue's review of The Last Great Prophet
- The Bank of America share price.
Yesterday I heard the news that China has experienced good growth and far from a hard-landing which people feared it is experiencing very sound growth, with PMI figures up and increasing.
One commentator has stated that China has several trillion dollars of reserves for investment, so I imagine the worldwide boom can continue. Today I heard that 80 percent of visas being taken for visits to Portugal are for Chinese property investors. This way, all economies with an open-door policy to encouraging property ownership and immigration would benefit from the Chinese wherewithal to sustain growth and Recovery.
If the Chinese sources are suggesting U.S. is looking for $561 Billion for next six months, it augers well for the U.S. that the jobs numbers were pretty good and growth potential is inherent in America, and it would be very probable that China would support such borrowings and support, as they have done in the recent past.
The luxury sector may start to rebound in China, who continue to buy Rolls Royce cars and jets as never before, and with the refocus on domestic consumption and increasing exports from China, it is apparent that the Honourable Xi Jinping is inspiring policies that will help the Chinese people achieve higher standards of living.
For stability and optimism into the near future, what more could the world wish for?
|Posted on November 5, 2013 at 7:26 AM||comments (3)|
It appears the Obamacare rollout has had teething problems, especially with the website interfacing.
Perhaps they should have stuck with their initial design, just to guage peoples interest without putting them off by asking comprehensive personal details. It's like me asking you for your personal details before allowing you to read my blog.
Good news comes from Professor Gruber's analysis of the figures that would need or benefit from Obamacare, and provided provisions have been pencilled in for the expenditure, the launch should be quite successful, after the rationale is accepted by Joe Public.
It seems that about 14 percent of the U.S. population would need Obamacare, the other 86 percent are adequately catered for.
Of the 14 percent, Obamacare seeks to enlist the young working people, who don't have any kind of health care provision. Once these people start to sign up in numbers, I presume the premium costs would start to come down. It has to be attractive for people to sign up, not a cumbersome figure that people would be unwilling to pay and indeed may not see the immediate necessity to pay if they are currently in good health. Everything being equal, most people would expect to continue to enjoy good health, and it seems a foolish waste of money to buy an insurance policy for health to most young people. However, good health carries no guarantees into the future, and it is against this that people need to have cover, seeing how people's lives are sometimes marred by ill-health and their careers written off. It is against this realistic look that young people need to consider taking up a policy to safeguard their future.
(In Britain it is straightforward enough. Everyone is levied what is termed National Insurance, which is a fixed percentrage of one's income, and universally everyone gets medical cover under the National Health Service. Some out of personal preference for quicker or better service decide to take out additional policies with private health insurance companies. Side by side, the NHS and organisations such as the not-for-profit BUPA and Simply Health serve the population very well, in practical terms.)
If lot more people show an interest in what Obamacare offers, presumably the insurance premiums would start to come down and encourage more and more people to sign on, so it would actually deliver what would become affordable health care.
As the issue is debated and considered, I guess it will gather acceptance, if not straight away then over a number of years. Good health brings great benefits in enjoyment of life and work, creating a happy atmosphere and bringing prosperity to all, a welcome place.
|Posted on October 30, 2013 at 5:30 PM||comments (2)|
The news from the Federal Reserve that it expects of maintain the Stimulus at $85 billion a month in bond purchases should have been great news for the markets, yet they headed slightly lower. The fact that there was no mention of the sequester was a bonus. The damper was I believe the news that Senator Paul is prepared to veto the appointment of Ms Janet Yellen to head the Fed. It seems the tea-party Republicans have been having a crack at bringing down the government for the last three and a half years, and they are trying to give it another go. Ultimately, it seems that good common sense will prevail in the good of the nation, and Ms Yellen may yet take control of the spigot and give everyone some punch for the New Year. At least the majority of analysts at CNBC hold that view, and people are expecting the markets to strengthen further : will the DOW test 16,000 before the year-end?
The housing figures were disappointing, but you cannot blame the individual homebuyers. The air of uncertainity created by the previously on-going sequesteration cuts, then the partial government shutdown, then the delay in agreement on the debt ceiling raise, must have compounded to weigh down sentiment. Yet it seems the hedge funds have purchased lot of housing stock, and put it into the rental sector, and house prices have been buoyed up. This may be good for the hedge funds, but for the individual homebuyers it means having to begrudgingly pay rent instead of a mortgage, but a roof is a roof anyhow, and thank God for investors who have the wherewithal to buy and rent them out.
Once the air is clear, and assuming the punchbowl is replenished, hopefully until the end of 2014, then housing Recovery should gain some stability. For the individual homebuyers, it will be a great point to join in in the party.
Under Mr Obama and the Fed's accommodative policies, Wall Street has done well, now reaching for a record high. Money has been invested in equities, turned to working capital for the corporations, income for investors, and built up a substantial cushion for the pension pots and investments. So far, it has been a good reservoir of capital, and providing confidence is maintained, will continue to be so.
What maintains the house should be good for everybody. Of course one or two senators may not care much. I hope they will not inflict a lot of pain on the system as a whole by sticking to their guns too rigidly. The climate is one for accommodative policies of co-operation, so that the world may avoid another recession soon after the longest one in recent history is hardly over. Just for the sake of humanity, they have to rethink the consequences of their stance.
Obamacare is a great idea if it were like the National Health Service in Britain; but it seems the way Medicaid is being expanded to cater for the people who were previously without cover is placing substantial burdens on the system. Quite a lot of people are having to pay much more then they did previously in order for additional people to get cover. This just does not seem fair. Perhaps a parallel stand-alone system of walk-in centres could be sponsored by the government to cover people who did not previously have cover, so that those who were happy with Medicaid could possibly be happy with them once again. As I have remarked previously in my column, the NHS in Britain evolved for 40 years from the Poor Laws of 1907 to Royal Charter in 1947. Such a grandoise system cannot evolve in a short few years, and the teething troubles with the glitch in the computers may be the least of the problems.
All things being equal, 30th November is not far away, for people to see how Obamacare is rolled out.
I would have suggested even more patience so that a balanced, truly Affordable Health Care may evolve for the United States.
|Posted on October 26, 2013 at 12:27 PM||comments (92)|
It seems a frequent occurrence, the coming of typhoons and cyclones that seem to hit the Eastern board of India every year, often hitting Odisha the hardest, together with Andhra Pradesh as well as Bengal.
This October, cyclone Phailin landed at Gopalpur in Odisha with a core speed of 200 Kilometres per hour, reducing to matchsticks the flimsy dwellings in the low-lying areas, flooding vast majority of farmland and dwellings. Fallen trees and power lines added to the problems in travelling. Thanfully early warming of the oncoming SuperCyclone enabled the local municipal authorities put into action evacuation plans, together with assistance from the Army and Navy, which were on standby, and so only a tiny number of people lost their lives this time, compared to the 10,000 last time.
Nearly a million people had been evacuated, with a timely and well-ordinated effort by the authorities. Social media must have helped, emphasising the dangers of flooding and the ferocity of the winds, and, most important, how much time they had to get out of harm's way. Villagers became convinced of the seriousness and left for the safety of higher areas and strong public dwellings, travelling at the last minute by buses laid on by the local councils. Thankfully, so many people saved their lives by not ignoring the messages.
About 100,000 people were similarly affected in Andhra Pradesh also.
Odisha Chief Minister has requested the government in Delhi to provide approximately a billion pounds over and above the 572 million pounds which would be available in the state disaster response fund, such has been the devastation left by Cyclone Phailin.
The government and local authorities are stretched trying to provide food, shelter and rehabilitation for the million plus people affected in the last fortnight.
As if that was not bad enough, another cyclone has hit the same region today, killing 29 and leaving another 85,000 marooned. The government and the local communities have a huge task of rebuilding and rehabilitating nearly 1.3 million people in Eastern states, some of the poorest and least developed in India. It would be a great blessing for the people if this encourages the construction of alternative housing in such areas.
In the meantime, again I pray for the safety and well-being of the people of Odisha and Andhra Pradesh and Bengal.
Respectfully Invoking our Saviour's prayer I intone :"Winds, be thee still".
May God's love and care be with the people there.
(written by Duru-darshan
Melchizedek priest at Church of Jesus Christ of Latter-Day Saints, Ilford)
Good news heard today, 9th November 2013.
Indian Prime Minister has announced allocation of funds of 1,000 Crores each for Odisha and Andhra Pradesh. (approx. 1 Billion Pounds each).
|Posted on October 19, 2013 at 12:21 PM||comments (7)|
When I get so many readers from Kansas City to my blog, I think Narayani Namastute! Narayani Namastute! Yes, on the auspicious day of Full Moon, as it was yesterday, and with the conjunction of the debt ceiling raise decision in the U.S., I was wondering what the Kansas City Fed Chairman Narayanan Kocharlakota was thinking. I haven't read anything in the press, but he is normally an advocate of quantitative easing with deliberate measure. In this regard, again, it is early days to see a ballpark figure of the debt ceiling raise, and for the 4 months of January 15th, Congress has announced that the U.S. government will be fully funded. Their Comptroller is likely to know what that means, and how much money will continue to flow into the system until then.
In the meantime, it must be a great relief that the shutdown has been lifted. Never again, I can hear everyone saying. People have lost income and business, tourists have suffered not being able to visit monuments and museums they may have especially travelled over the States to visit. The short but very long 14 days have cost the U.S. dear, to the tune of some $24 Billion in lost revenue and productivity. The lesson is clear, such a shutdown over an extended period would cause the economy to slow down, and the economy to lose something on the GDP measure. It is like an economy in good shape being told to trim down. Never again, I hope.
As to the ballpark figure, my suggestion is $1.32 Trillion over 20 months, which works out at $66 Billion per month. After payment of some $60 Billion per month for the social security net, that leaves $6 Billion per month for enterprise and job creation. Jobs ranging in pay from $20 or $30,000 per annum to $250,000 per annum could be created, perhaps 300,000 or 400,000 per month. And he presto! within six months the U.S. would have whizzed on from Recovery to Prosperity.
But that's just a ballpark figure I am suggesting. At current Stimulus of $85 Billion per month, maybe it could be different. In view of the regime of Abenomics in Japan and their Stimulus of $85 Billion per month, the per capita differential is in Japan's favour. It is a theme to be explored over the coming days.
I am glad to note the global economic order has been stabilised after the agreement in the U.S. on the debt ceiling raise. As they all enjoy four months of relative calm and stability until 15th January and then to 7th February, I trust they will have this in mind and not give everyone, including themselves, a tough time.
Certainly, the costings and implementation of Obamacare is something they can review and see how technically it would be best implemented. The beginnings of the British NHS took about 40 years in gestation, before it received the blessing as a Royal Charter in 1947 under the kind King George. Obamacare is by comparison in its infancy, and needs to be tweaked and explored before this very sound principle can bring benefits to the citizens and the nation.
|Posted on October 15, 2013 at 2:35 PM||comments (5)|
Sound bites coming out of Washington this morning suggested that progress had been made on the debt ceiling raise negotiations, but there was still some work to be done.
Indeed, NDTV was stating that a deal had been agreed in principle, to the effect that there would be 'full funding' of the government till 15th January, and thereafter a debt ceiling renegotiation date of 15th February. If that is in fact so, that would be great news for everybody, at least they won't have to worry about the cold winds of November and can have a holiday and relax over Christmas before having to face the cold corridors of Washington in the New Year.
People are counting on the House Fathers Harry Reid and Mitch McConnell to bring everybody to the fold and get some agreement in principle, so that it can be presented to the world latest by Thursday.
Optimistically, everybody is waiting for such news.
In the meantime the U.S. Budget Office is issuing advisories in the event that an agreement is not reached. Namely that in the event of a debt ceiling limit not being raised, the government will have run out of authority to issue any more money into the system. In the most unlikely event of that happening, the ramifications would multiply twelve times what has happened under the Sequestration.
(The sequestration cuts totalled $85 billion over twelve months from a Q.E. budget running at $85 billion per month; hence one twelfth, so the effects of a halt would be magnified twelve times. This is just to put in context some meat for the doomsters. I cannot see the wise elected leaders of the U.S. ever leading America down that path, which would of course spell pessimistic scenarios for the world, as all nations trade with the U.S. and lot of people are engaged in producing something for export or working in calls centres and so forth which serves the major economies.)
Ideally, everybody would like to believe that such an agreement will be reached and released to the world, that full funding of the government continues until January, and then once again they can face the cold winds of February to negotiate another debt ceiling raise. In the meantime, the funding will ensure U.S. continues to trade at full strength with the world, and create more jobs at home and abroad, creating a continuation of the Recovery that has gladly blessed this great nation.
Japan is most definitely looking for an endorsement of the QE policies which they have implemented with a huge success, pulling Japan out from a phase of stagnation that lasted 20 years to what are glad welcomes of a Recovery. China likewise is re-focusing on domestic growth; how much better it will be if things continue in a positive way across the globe, so that there is work for the workshops, freight for the transport and the oceans, everyone doing something purposeful, busy, happy, earning their livelihoods, buying houses, cars, sending their children to schools and colleges and universities, a whole world procession in progress, the army of humanity.
How wonderful it will be for those wise leaders in Washington to agree upon and then issue to the world the words that signal the continuation of the economic Recovery at home, and by extension to the world. I pray for this.
Looking for inspiration yesterday, some words occurred to me, which I tweeted, as follows :
"Have faith, just believe. Everything will be all right, by the grace of God."
I sincerely believe that shall be so.
|Posted on October 8, 2013 at 3:41 PM||comments (6)|
Each one can imagine some kind of bleak scenario, in the event that the Debt Ceiling was breached and there was no agreement in Washington between the Republicans and Democrats.
At the moment, the world watches in exasperation as the two sides debate and give a very mixed impression. As they gleefully remain entrenched as to what they will concede or not, the time is ticking away to 17th October.
Japan and China have wondered at the shutdown, and why it is not being lifted swiftly. In those nations, such a situation, were it ever to arise, would be reversed as a matter of honour and in the interests of not impeding the economic engine. It would be done swiftly with a command from the leadership.
In the U.S., by contrast, as is the nature of democracy, every fine detail has to be debated. That is fair enough, but time is running out nevertheless.
In the event that there is no Debt Ceiling raise by 17th October, one can envisage a bleak picture where government will not be able to pay its employees, which of course also includes the Representatives and Senators who have defended very narrow corners and brought about the current shutdown and the furloughs, disrupting peoples' daily routines and reducing their paypackets. Of course this would have an impact on the economy overall were it to continue for any length of time. Just over a week has gone, and the mood on the stockmarket has been subdued. If it were to continue for consecutive 21 days, probably it would cause a disheartening mood, which would dampen the feelings and start a down-turn.
Secretary of State for the Treasury Mr Jacob Lew has said there would be about $30 billion for cash-flow, in a 'four trillion dollar enterprise'. That may be sufficient for 12 days, which would take everyone to 29th October. If there was no agreement by then, can you imagine anything but the stock markets falling, a fear factor and a lack of confidence, people being laid off by private enterprises as well. I would bet the Oil price would plummet, demand would be so drastically reduced. The domino effect would be worldwide, nothing short of alarming. It would be like looking at Greece in its recent dark days, only the U.S. is a much bigger economy, with over 16 times the population of Greece. Not only that, what is the sovereign currency of a well-functioning economy and the Reserve Currency of the world would have its standing compromised.
I trust they have some arrangement in place, whether by bi-partisan co-operation, putting aside for the moment the other issues which are dividing them at the moment, and agreeing to a Debit Ceiling raise by 17th October; or, arrangements in place to allow the President to exercise his prerogative under the 14th Amendment and sign in an amount that would be prudent and necessary.
Mr Obama has mentioned that the debt burden has been reduced by Two and a Half Trillion in the last few years, so his Administration's policies have been productive and praiseworthy, pulling the whole economy out of a severe recession and creating a nation with huge heatmaps of happiness, which have provided growing confidence worldwide. The sooner the uncertainity regarding the Debt Ceiling raise is removed, the better will it be for the whole world. America's well-wishers and creditors alike would feel good, a positive mood of certainity and predictability for future growth would continue worldwide.
The last Debt Ceiling raise in August 2011 has proved efficacious, and so there would be universal approval and applause for such a measure this once also. Those who believe in doing right by their fellow humanbeings, let them also do right by the currency that says 'In God We Trust'.
|Posted on October 5, 2013 at 2:31 PM||comments (2)|
Hi everyone, how are you?
I wrote and published several blog posts over the last seven days, as follows :-
- Germany a good model of employment
- Forward guidance and the UK Housing market
- Light a candle....
- Stimulus? Taper? Where we headed?
- Mr Bernanke's penultimate testimony before he leaves the Fed.
- The paradox in inflation
- My blog posts this month
- Thanks for visiting my website.
- Bi-partisan Agreement or 14th Amendment, either way Debt Ceiling will be raised.
- Netherlands, Kansas City, Kharkov....welcome, welcome!
Over the 7 days, I note Referring Traffic to my website and blog (www.durudarshan.co.uk)
from the following. I express my thanks to the staff at these organisations, for listing my website and blog....without you, all these readers wouldn't have found me so easily. Thanks!
I am pleased to note that the value of my website is going up, and I am getting more visitors each month. I am particularly pleased to note that I rank tops with Google. That is thanks to my parents for having given me this unique name. (Duru is the North Star, and darshan means obeisance).
I hope you find something interesting to read on my website or blog. I like to tune in to receive any interesting information, most of which I share with my readers.
This morning, I went and helped clean the LDS Chapel here in Ilford. I opened the windows, then squirted some bleach into the toilet pans on all three floors. Whilst this was doing its job, I moved the chairs in the Sacrament Hall and hovered the carpet. Just nice and easy, and the exercise did me good. In the peace and quiet of physical labour, the mind becomes quiet and receives the Eurekas!
Until next time,
Wish you a great weekend.
|Posted on October 4, 2013 at 2:59 PM||comments (3)|
It is a concensus worldwide, and not only in Washingdon D.C., that the Debt Ceiling which needs to be raised to avoid a default, which the U.S. certainly does not wish to entertain, will be raised, be it (preferably) by bi-partisan co-operation and agreement in Congress, or by Presidential Prerogative.
Secretary for the Treasury Jack Lew has suggested 17th October as the date when the current debt ceiling arrangements hit top. It will be both prudent and necessary to raise it further, and in the current shutdown scenario in Washington the options are plain : Either the partial shutdown of the departments is swiftly lifted and government can function once again as normal, giving enough time for a bi-partisan consultation and agreement on a Debt Ceiling raise; alternatively, give the President the opportunity to exercise the Presidential Prerogative under the 14th Amendment and sign into law a figure he believes justified to safeguard the normal functioning of the government and the U.S. economy.
The new jobs created figure today of 155,000 for September seems pretty healthy, although to see a fully fledged Recovery would need about 400,000 to 500,000 new jobs per month for about 6 months. Until then, the environment demands continuation of a Stimulus, which may be tapered later when conditions improve further. In the meantime, the record low interest rate gives hope that the housing market can continue to improve and strengthen, together with auto sales and hand-in-hand creation of many jobs and heatmaps of happiness. Strength of the U.S. economy for now seems a barometer of the world economy, as confidence in the world's largest economy always impacts everywhere else.
In Japan, Premier Abe's government continues with their Stimulus, which was running at $85 billion a month (equal to the U.S. stimulus at its current height). This has enabled the Japanese economy to pull out of the stagnation that has marred it for over 20 years; the investment and build-up after the Fukushima disaster has enabled Japan lay the foundation for continued improvement and growth, the fruits of which Japan shares with investment overseas in neighbouring countries and abroad. Their GNP
figures will be nothing less than impressive, with substantial investments in the U.S. also.
It will be a great blessing for the U.S. to raise the debt ceiling in a timely fashion, and renew the confidence worldwide that things can continue as normal everywhere, which can add impetus to further growth worldwide from a strengthening Recovery to Prosperity. For that I pray.