Following in the math of the sequestration cuts, followed by uncertainity about the U.S. Debt Ceiling raise, and the unwanted shutdown and furloughs, it seems apparent that confidence has taken a bit of a knock, especially with regards to the United States economy, but obviously timely positive action would restore that. 

 

The news that Ms Janet Yellen was nominated by Mr Obama to the chair of the Federal Reserve was actually happy news to the markets, welcoming this dove of the financial system, assured that the punchbowl would be replenished and the taper would be quite some time away now. 

 

Once that nomination is confirmed by one and all, that would send the right signal and boost the confidence that the economy needs right now, in view of the temporary fix of the nation's capacity to continue funding itself until only 15th January 2014. 

 

Around that time Chairman Ben Bernanke steps down, and willing bi-partisan co-operation to extend

the reserve balance capacity and support Ms Yellen in her post will ensure great and much needed stability to the world financial system, and not only to that of the United States.

 

The housing numbers yesterday were obviously disappointing, indicating a shake in the confidence of house buyers.  That is but natural, in view of the uncertainity created by the last-moment and then only such a short temporary fix of the situation. 

 

When I was in California and Las Vegas last year, October and November, I met lots of people and heard their stories about how hopeful they are, and how they are happy working hard, to buy their first house and know things are okay with their economy.  These were people who are taxi-drivers, concierges, receptionists, cleaners, waiters, waiteresses, a scientist working for an oil major, people who had made America their home, and who were sharing in the American dream.

 

It can obviously help the well-being of the nation if normal lending practices continue, where the individual man or woman and families are encouraged to buy their own houses, with the confidence in the system that things will continue positively, so they can believe in the virtue of borrowing and investing for the future. 

 

The oil price on both sides of the Atlantic is so high, and hopefully needs to be around the $85 mark to encourage normal growth in the economies outside the G20 nations.  Their depleted reserves and devalued currencies vis a vis the major currencies don't give them a chance.  A dose of kindness now would greatly assist growth throughout the world, which would bring great mutual benefits to all nations.  When we eat the food that we can so easily buy which has been exported from some country, we must spare a thought for the people there, who may not be able to afford such items in their own countries.  When I wear my beautifully stitched shirt, my heart sends blessings to the factory workers in Bangladesh.  It was heartening news to hear of American companies giving them continued support and helping them make the textile industry safe for workers. 

 

With such friendship and trade between nations, each cog will help turn the small wheel which in turn will drive the greater wheel, and the path to continued economic Recovery, and yes, ultimately a growing Prosperity for all, shall continue.  For that I pray.

 

Kind regards,

Duru-darshan.