By
Sampson Onwuka
Joseph Stiglitz, defends his
theory that, “A new global political and economic order is emerging, the result
of new economic realities. We cannot change these economic realities. But if we
respond to them in the wrong way, we risk a backlash that will result in either
a dysfunctional global system or a global order that is distinctly not what we
would have wanted.” We have to propose that using John S. Gregory categorical
arguments, ‘The West and China since 1500’ @ 2003, Marco Polo ----India in
1498, China in 1520, Macao by 1557, one of the most memorable > Yong Luo (emperor)
and China sailing but ……
(1) How a culture really is, the
people, these culture, the language and the how they lived – these combined to
give aggregate of their culture and of their depth understanding----,
(2) These entire combine does not
equal to inflation, “Between 1405 and 1433 seven government-sponsored larges
Chinese fleets sailed through the island-studded waters of South East Asia to
such ports as Calicut and Cochin in Southern India, ports already well known to
Chinese traders, and several times they sailed further on to Hormuz at the
mouth of the Persian Gulf, to Aden at the mouth of the Red Sea, and to
Mogadishu on the north east African Coast.
A giraffe was among the local
specialties shipped back to China, and on the last of the voyages several
Chinese reached Mecca, presumably as pilgrims since the Commander of most of
these fleets was a Muslim, Zheng He (Cheng Ho). The fleets consisted of 60 or
more vessels, many of them of a size (Over 2000 tons, 120 meters in length and
50 in bear) which would have dwarfed …”
So how did the Dutch manage to
transfer their position in China from settlers to other groups of people in the
world, and how did a superior culture who were self-interested and protected
succumb to these ragtag visitors such as the Dutch, the English who came much
later, the French and the Portuguese and who settled in Canton.
Perhaps the experience was the incident of
Canton which was weak at the South of China but allowed the visitors to
introduce articles that proved easy for the company and later not so easy. There was also the issue of Manchu Dynasty
whose influence in the South was not sufficient and sufficed with ambassadors
from (1666 – 1670) (1678 – 1687) and for reasons which are gradually obvious
and Opium Trade in Canton in 1839 suggested that there was such a place like
East India Company.
Apparently Professor Stigltz major
concern is extent that government market polices affect international affect
the global world, and to what extent that the new powers who production
discipline define the future of global economy and how.
The idea in this sort of reaction is to throw
light on a dissent about the future of world markets but on the dissent which
falls in right place, the academic assessment of saving glut and the production
challenge makes the ready the comparative reason between savings as a form of
investment and the employment or labor driven psychology of factor production,
especially as they move from one form of economic government to another.
A
China story is a history of its struggles and courage, it is Chinese story from
beginning to the end since they have often inveighed against excessive
International interference going back to the earliest Hans, Romans, Syrians,
Jesuits, Indians, Cambodia and were more than once invaded by Tibetans,
transforming China into formidable powerhouse that reached several eponyms
during Kublai Khan.
Of course the waters divide between
Sino-Chinese regional blanket and Cathay Pacific.
If we isolate the history of
China at his period, we would have seen how difficult it is to appreciate that
Cathay was the holy grail of Medieval Europe and Christopher Columbus, that
Cathay was ultimately China. It is a not
a small story it is China Story concerning their survival. China Story is also
about the world that exists in spite of Kuomintang outrage that foreigners have
always bedeviled China, that China was better off without foreigners.
A good
narrating of the so called ‘glut’ either in labor employment in China preceding
the coming of Europe and the United States gives us an impression that the
savings culture explicate on the device and there is no need to press new idea
in the terms of the old about China.
The failures of Communist economies
to close ‘Vega’ adjusted gaps between the Stock and Bonds as driven by the
market direction and procured by the leadership factor of the first and future
market, is not without doubt the reasons for the general collapse achieved in
the first place that brought down the Communist Russia in the 1990’s, a
generation that was not prepared for the pressures were unleashed to the
challenges of a New Standards.
“Since
investment is the backbone of productivity, the productivity gain in the United
States is much smaller than in Germany and Japan.” “Huge federal deficits and
debt kept the interest rates higher in the United States than in Germany and
Japan. As a result, American companies were at a disadvantage in borrowing for
investment vis-à-vis their competitors.” (1) Manufacturing (2) construction (3)
retail….
Russia then and now has little
operational room for growth. It was never a leader in the world economy; it was
a reactionary economy entirely dependent on a structure that existed with or without
purpose in Europe and its world expansionary balance sheet affected the US.
It
is also a matter of consideration that Russia is a paradox that is mastered,
explaining the fatigue of isolation and mono-genetic attitude to political
economy and survival, that it was challenged by management procedures or
resource allocation given its size of natural endowment.
These endowments were
exploited to basis no longer the matter in world markets and its academic
disciplines. In recent markets of the world, the question that refuses to be
answered is the erroneous challenges of an organized society, which more than
faced world indictment of conquerors and leaders.
If Siberia in the latter
years of the Bolshevik wars and the Russian revolution and if the Russian
revolution disabled the power of the standing armies, it was the WWII and
Russia’s reaction that is considered the most important issue by the end of
1950.
Involved with local integration policies and attempt to solemnize the
petit quarrels between the kingdoms going far back as Peter the Great and Ivan
the Terrible, it mattered that the impact of Karl Marx in reducing the impact
of European lead globalization and economic growth, Russia preceding Lenin and
after Lenin - which is not the same as the Stalin years – resolved its own
differences and that is the most important device of all to the land was the
veneration of utility based industries as well the political union and
franchise.
Of course the stories about the
political economy in the United States or any economy in the world, and the
influence from outside is how these economic theories move from a period of
effective instability within a gini of 1% which as we argued is not always
similar to 1 caliber or is it expected to be, but show considerable shifts in
value as more information reach the market, then we can measure how well any
market in the world is doing through its ability to stabilize between its highs
and lows.
Under all circumstance of
economic meaning and pointless, the tendency to is accustomed to its own devices it led
nowhere but downwards like old company without external challenges. If Eastern
Europe from the inks of say of Bernanke’s student at Princeton support that
prices are affected by the national disasters, that the real price and value of
any market and economy, the host market lack the stress and strain to adjust to
the external pressures or open competition.
The movement of Government owned
companies to privatization as scheme perpetuated by the IMF running against the
challenges of Europe in post Marshall Plan of the 50’s, there are hints that
the involvement of these strategies now injured with the region single market
could benefit some of these former European economies.
The debt gaps from Eastern European
gives in and out on why the issue of domestic strength raised by Porter may not
easily be achieved without Government policy and Government control, may not be
achieved without tampering from external market but nowhere confined to
Government consensus such as Washington’s, and not entirely opposed to Beijing
Consensus who cannot occupy the leadership position of world markets given the
level of their overall transition to capitalism; money for money sake, profit
determined by the markets or exchange of goods or price as function of the
markets.
Inflation and inflationary pressure accompany heavy Foreign Direct
Investment, the total amount of foreign currencies entering a new capitalizing
market usually break the back of small and pedestal local rate of return, it
manufactures reasons why there the bigger and more powerful economy leaning on
the boundary or trans-border economy achieves new challenges and with the
Shadow banking ever present with special privileges, there is a shift to Real
Estate buttressed by the inflation adjusted Government Bond. Banks empower a
healthy bicameral.
We might use the same process to show that
the author, Professor Stiglitz hints on International markets, with Asia and
the rest of Europe, that we “Consider the so-called Trans-Pacific Partnership,
a proposed free-trade agreement among the U.S., Japan, and several other Asian
countries—which excludes China altogether. It is seen by many as a way to
tighten the links between the U.S. and certain Asian countries, at the expense
of links with China.
There is a vast and dynamic Asia supply chain, with goods
moving around the region during different stages of production; the
Trans-Pacific Partnership looks like an attempt to cut China out of this supply
chain.” But this not the case, nowhere confined to the case and to a large
extent….
The Moratorium for International
financing initiated by Henry Kramer of Stein school of Business, which told
from the pages of Obama Banks and the
financial regulations from 2008 financial collapse, is a situation that is
angst against the shadow of financial practice and leading practices to investors
to the ends of economic investment, with investment from Internal Specie Banks
such as IMF and the World Bank which are directly owned as if private owned by
multinational bank corporation.
American Banks until lately were not reasons
too clear stipulated by the New Deal on the 30’ and of 42’s, would authorize
American Banks to participate in International lending without penetration of
these U.S banks. Although these banks evaded these Seagull Act, some of their
actions were public reasons for world be investors to take canvass on the
landscape of American Business practices.
What was common to Japan, to Europe
following the formative IMF was permissible in the Americans. But until lately,
these practices have remained the corner stone of many economic nations,
especially in the aftermath of Bretton Woods.
The temptations to master the
economic triumphs of the world during and after Bretton woods is no doubt
serious, for many reasons, 1, that the price allocation to product during for
instance the WWI and WWII years, and following the recommendations by Bernanke,
that the promotion of national products during WWII such as Car productions in
Detroit was a misleading economic indicia and fostered a misplaced sense of
prosperity which the Bretton Woods distorted differently and which lasted till
1971 within the compromise of erasing of gold from currency.
The surpluses of
foreign trade in 1971 and the sufficient reasons for the market under
international composition such as free trade in Uruguay may not be factored in,
but it needs not be discounted to come to grasp with the story of modern
information and why.
We clarify that Stiglitz (6) “Yet
another example: when China, together with France and other countries—supported
by an International Commission of Experts appointed by the president of the
U.N., which I chaired—suggested that we finish the work that Keynes had started
at Bretton Woods, by creating an international reserve currency, the U.S.
blocked the effort.” - An argument, but
with Glass and Steagull as one the reasons why the Bretton Wood accords did not
go far enough into U.S, especially the role America played in rebuilding Europe
after WWII – in spite of the Marshall Plans which was not necessarily by the
Monroe Doctrine -, with the more demanding facts of U.S Treasury and the Paul
Volcker’s attitude to misplaced European financial market, to its lending
practices and its ability to reign some profits in the United States under the
new banners of European Free trade agreement, and with sparing on the ability
of European banks to place baits in the United States – investments, risk and
bonds which was bicameral to Europe - the bias on currency basket was
essentially a controlling factor in removing gold from world standards and U.S
currency opening up the Uruguay round table.
In the world and at least between
1971 and the end of times of Bretton woods, the rise of European Free trade
agreement and the moratorium on overnight lending between London based banks
and those of United States – especially in London as point of embarkation of
these wired transaction and Chicago, the ability of Europe to corner U.S
industries was quite profound.
These experiments in U.S, between
European banks and those of Asia, between Sovereign wealth in Asia and several
parts of North America, and the International markets were new world markets
and order that was significantly lenient on debt, free trade agreement and
regional policies. A motivation that ended the currency basket for
International Markets, and a motivation that led to single currency
consideration and motivation, was a gravity so appealing that the factors that
affected one action in the 1970’s could not in anywhere be considered a
parallel factor leading to the creation of European single currency.
With the
prospect of the Foreign Reserve corporation and the role of U.S Banks in
gifting America a single Super power position since the 70’s and in fact since
the Vietnam wars, the opening of the American economy to the rest of world
enjoyed new levels, gave Japan a boost of unprecedented proportions, mainly due
to the sufficient opulence of American industries and its disbursed interest in
dollar single motor.
In mere light of the promising interest of a struggling
economy such India and such as Singapore, both of whom were witnesses at the
changes that were apparent in Europe and for all the right reasons in Asia when
International Companies made their day, the problems of transfer of wealth and
the creation of new economies in Europe was expected to have easily faulted
given the age of the economy, and the promises that even the stability pact
held for new-comers in the economy may or may not have compared with the
successes in the world, economy, leading to the rise of the dollars as a
replacement for any such baskets which was not transferable to regional market
and premise of single currency – at least in Europe but sparing with
ECOWAS.
In spite of the questions of
quantity and the foreboding percentage of International trade and reserve
receipts of Central Banks to National GDP, it may seem gradually useful to
compare these changes in the national reserve rate to the power of central
banks in controlling the economy – or any economy, and that power can also be
compared to the general expectation of world markets and financial markets
around the world, to a point at least the rate of growth to reserve should
fluctuate with cycles event to the least 3 months or at least a standard year
on year, that a 10% reserve rate for United States or any country should
correspond to the rate of economic growth. Perhaps a function of reserve rate
to the national GDP reverts to the diffusion and inflation rate, which in turn
recognizes quantity of money and the discipline of Fund’s rate.
A parity is easily achieved through
crude oil but when there is more reserve rate in any economy and power of banks
reduced to quantity of money, the old arguments about the quantity of money and
M1-M4, applies to the unforeseen consequences of having an economy that was
largely controlled by Banks. If in rear light that we put the recent problems
of economic consequences of Greece debt into the orbit of world markets,
compared either Spain or its entrenched penetration into U.S and Mexico by
proxy, you discover that GDP shift has more than improved the outlook of Spain
to Greece and to the rest of Europe.
It does not mean that Spain is out of the
picture as we speak, does not mean that the unemployment rate in Spain is not
within the same level as Greece and perhaps Cyprus, but measures the rate at
which ECB and Federal Reserve Banks both in China and in the United States can
have effects in the economy, why their central role in reserve should be
reduced to a baring possibility and how the gap between Federal Reserve and
Major Real estate cartels and private investors will reflect badly on the
overall economy.
We might still looking at the
economic conditions of 1971, we might still be looking at some of the applied
assumptions of stress test or strain on any market, we may gradually yield to
the gap that the more bigger corporation acting in the interesting in the
economy finds itself between U.S Central and the earnings growth, the greater
the gulf between private citizens of several sizes and several meaning, and
still greater the size of problems of the U.S economy whose tendency to
over-valued currency will remain inevitable.
ECB’s emphasis on European
economy, and its domination from its inception as a public authority adds to
this issue, that the only way forward was not the saturated banks in Europe to
maintain their course, that utility and structural spending was a receipt for
the future and above all, it amounted to control of economy by the few whose
wealth and debt compare to some extent with the national GDP and debt.
Europe therefore will not likely
survive with without alternative discipline to wealth accumulation and policy,
one of which is the policy of retention and development as it affects the rest
of broad market. In all, it seem to
compare to a near extent that even China in all its resources tethers on the
brink of sudden decline which may sack the confidence it has borrowed from the
dispersion of a suppressed cultural value asset to a wonder market in the
world.
Yet the brilliance of the labor and production based economy cannot be
considered an exaggeration, since the tendency of organizing a national relief
effort betrays the questions of allocation which cannot be sustained by the
sentiment of patriotism as from ‘national humiliation’, for so it seems, that
the rate at which the China has spurn the wealth from national savings and from
private individuals accounts, maintains that the Reserve Banks in China retains
up to 20% of its GDP.
It may seem that such discipline is the best attitude to
this kind of process with view of inflation and that since 1971 when China
began to reassert its influences in the world, we can clearly state that it has
changed its currency for at least 13 times, some of it where fluctuating
between a 2 Renmibi to a dollar in the early 80’s to the collapse of the currency
to 13 to 1 rate, gradually the case from 1998.
At the inception of China to world
markets – in their own terms – the role of its Reserve Banks has never more
significant, especially when there are material reasons to suppose that 10%
unemployment as a way to float the economy away from gluts – efficiency and
labor glut – does not ameliorate the size of wealth at the hands of its Reserve
banks, for at least lack of structural value of China’s financial corporation
in the 1980s for some of us who have a near idea of it all, to the lack of bank
structures and investment in the 90s when as some of us are aware that
obtaining a credit for a 38 story building in Shanghai required a long tenuous
process that ended in the fact that the building was not yours or can be
re-possessed by the Government whereas the Banks – especially the Reserve banks
did not hold that much control of China and its provincial resources.
For all
intent, a shift from production and intelligent consideration any broad market
and economy to mainly real estate – especially expensive real estate in spite
of toleration for household management and the basic economic demand driven
incentive, the borrowing power of the big banks considered too big to fail and
in reliquary the recent commissions for U.S banks to the health of the credit
in these countries and why, establishes at least for now why there is such a
demand curve for its market when in reality it is no- where near the standard
it maintained even at the recent times.
We have some blood on comparison
between the old category of economy and its real, the structure of its economy
and financial literacy and what happens when the Central banks or Reserve Banks
play more than 5% role in the navigating the rest of the economy. It seems that
even we place the divergence and convergence conversion theme of any the
economic conditions, these conditions is within meaning if rate – no less
domestic numbers are bound and tied to a separate rate no less domestic or with
animus foreign dominatrix.
A miracle can be performed when there is copulation
between two economies in the world such as the United States and Japan, where
Japan decoupled U.S transaction guarantee under the bantam of GARIFF and the
supply of system of auto industries with arcana of crude oil consumption which
proved its elasticity at the end of the Shah’s administration in 1979, and
under the promise of long term investment interest and comfort of penetrating
U.S market – real estate – the notion that Japanese Banks were less in control
of their finances as with U.S show the rate at which the economy can over-heat
and over-value without climax.
It is meaning perhaps, to measure
the strength of any economy through the stability of its markets, that is to
suggest that the stress test given to U.S bank in recent time by former fed
chairman was not as explicit as the measure of economy through markets, and
banks and their balance as a final stress of the economy given the debt and
rewards, its balance sheet, and how well it is able to spinoff assets and new
reserve levels when acted upon by the federal reserve or a central bank. We are
certain that the markets play a role in understanding economic strength, the
polarity between economic strength and power and the poise for new growth do not
account for the Laffer’s observation of the effects of spending and the
digestive processes.
It looks to suggest that the health of a credit in one
economy is perhaps a figure of FICO diagnostic prone to speculation and false
assessment given the number of new savings and number of citizens and private
investors seeking new life of investment and portfolio from any bank.
It is
here we can add that when Banks control more than 10% of a nation’s overall
resources year to year, the country should consider reducing the burden these
banks and financial institution play, consider primitive methods such as sustained
disclosure on the spending part of its industries as with the hugely neglected
Welfare, to a point that it should consider mounting some measure of pressure
towards destabilizing the control measures in its system.
We consider the concerns of early capitalism
in the context of strange of ‘central planning’ evident of which was the
generality of their impact in either the moratorium of the nation’s economy
–away from private citizens- or in the case with Europe, the largee effect of
having property and wealth centralized in the hands of a tiny few.
Historically, to the land of oldest financial empires and at light of
historical popularity of Babylon – the lands of Nebuchadnezzar – the rise of
power and new financial types challenging in Babylon and their landed gentry
posed some challenge to others in Near East – Egypt for a start – but it was
the stigma of few over the many and the conscription of the very few over the
many that gave birth and foresaw death for new economic development.
When there
are measures of economy along the markets, and when there is market creating
new ventures and new path for others, we can understand the chances for longer
term development is an elasticity that cannot succumb to the point of the
pressure from price and other ventures.
Approached from the rear, we insist
that the rise of central in handling the affairs of any economy as they are
supposed to do, especially when the resources are reaching the Reserve at a
mitigating rate of even say 10% for reasons for explained, we can carefully
document that the Banks and the government are reaching the apex, that the
shift going will be mainly structural, and that structural is mainly a long
view with short bias, it is an economy of that of the few managed by the rich
few with mere interest of profits but these profits are so localized that
mathematically, a symptom of early spirits of entrepreneur and the consequence
of early capitalism that bedeviled Europe in the 19th and 20th
century.
The central theme of labor is no
longer a central measure of economic resurgence at this point, that employment
when studied well and well enough is no longer a true measure of economic
health and the job market and its rewards takes different steps from the old
and therefore of the a controlling influence.
Even if we can argue that such
economies are usually planned by the competent few, they historically become
dangerous in attempting to determine what is good for others and in all
reality, it is an experiment of what is good for the provider – first and fair
early in the pyramid of profit, a psychology of consideration of money
management and a process of actuation – insurance etc., that is answerable to self-preservation
to a long term investment which create the iron vintage for wage control given
the employment of workers and pay package.
In other to retain the workers,
these few owners may or will maintain their control through attractive options
and promotion, but in the end, the workers of all lenity will never meet
household obligations and private needs, may never meet the case load of the
employer, may not survive the competition or the market, let alone surpass the
company which the aim of free market. It lends here this easy consideration
that the well planned economic conditions usually favor credit health of
private earners – with or without torching the issue of the distribution.
For this reason distribution takes a central
place in the course of public excitation of investments and choice,
redistribution may require the august pretension of central planning. In all,
the resistance that such markets can mount to the dynamics of chance is a
well-studied economic balance sheet problem, for when there is a strangle hold
such as saturation of banks and gluts in terms of savings and option, there is
a shift to the internal decay.
In this case, the issue of wealth management,
sometimes well managed by experience and with competence reduces pressure to
maintain the statuesque when there are betters ways of making money, and in the
end, as become most economies of the world
and in this case United States, the banks – the treasury and its bank –
the Reserve, may exercise more control than necessary, may induce the markets
to the general health of credit but may push the bottom on real estate and
control of the economy to the economic center thereby strangling the economy –
perhaps with knowing it – even at 1% fund’s rate.
We cannot therefore fail to
harvest this fact that the primary situation of current economic conditions in
U.S., and the easy damage of the financial franchise may state the case clearly
and better, that over centralized weight of system dynamic usually tows the
line of rational expectation with the premia of risk controlled without free
market influence, performs the same function as all centralized wealth
functions and body in the world, perhaps above all, it measures the rate at
which the society deals with expectations as part of its rational requirement –
deep in the intellectual health of the society.
This suffers perhaps one of the most critical
problems of heavy weight financial car pool and controlling influences of any
economy, and this is the case is with expectations meeting for economic cycles,
which can prove a problem for price where ‘central planners’ attempt control
price escalation and end up playing into the problems of wage control and
garnishment, and above all communist driven political understanding.
It does
not end here, it compares everywhere the fact that economic cycles are central
to other factors in market when money is trapped in its own institutional
cycles, it offers to protection and restrain to bad phases in the market which
sometimes awake the reality of human psychology and spending, that spiral, once
elated, spins out of control and in any financial case, it heads downwards.
It
may seem that the premise of locally managed economies of the world leads to
the re-awakening of moral reality and opening new ways or countering of
unfavorable economic cycles in a term periods – perhaps 6 years for the health
of any market in the world is an economic cycle what considering – that a year
to year budget experiences its down turns, that the economist plans ahead of
these cycles in his or her fiscal budget and meeting half of it the expectation
is more than enough to ensure future growth and healthy return rate.
This is not the end of the
consideration and hardly ever the case, for real, the tendency to a market and
its guiding spirit is the momentum that is evident in such market. A trader is
concerned about what for instance is heading north or selling in poor light of
everyday market, whereas others may concern themselves with the north bound
stock of real flow, most traders are also concerned about the south bound stock
for real.
Each has an attitude that is equal to expectation and cycles, but
between all holidays and its 8 percent spike in profit and deducted incentive
in earning from sales and prices is the reality of earning’s rate, quarterly
statement and the year to year expression of the balance sheet. This is where
transition takes place, which is how well we can engage an efficient market
portfolio without land of control resources and bank populating its finances
and draw of investment from money well spent.
The issue of consideration for instance
in the 1970’s U.S, retained a little less than 5% of the overall GDP but the
late 80’s commanded well over 10% overall of U.S earnings thereby increasingly
the role of Banks in running the economy without the future consideration that
the MSEs, Sallie and Fannie Mae, will decide the fate of housing and real
estate, creating stress on the health of U.S economy, especially in real estate
dominating majority of its production economy shifting ever-closer to premature
arrest of growth and the economic development and its prolix for decay, which
is a cycle of at least 59 years for a start but could falter in less than 6
years given the resistance level of the useful income bracket.
In India for example, we consider
the role RBI; Reserve Bank of India, the restructure of Regional Rural Bank of
India; RRBI, and CRAR. We also consider the demands of the merged entities with
direct focus on reform, and the Problem of Dual Control in Co-operative Banking
and the role of ‘The Institute for Development and Research in Banking
Technology (IDRBT)’, and from the analysis, the committee that concerned with
the transiting from heavy equipment to lighter ones and the roles of new Banks
both public and private, were engaged in the same exercise and for the same
reasons as the Banks mentioned.
And
where also concerned with Banks with Negative Net Worth, that the for instance
the role of UCB at the formative 1950’s and 60’s of new Zones, were expected to
end when there is a case of Negative net worth or in principle, Banks that were
considered too Big to Fail were delimited with the assumption of responsible
towards profit and Banks with negative returns rate by Reserve Bank of India,
and with the intractable problems of rural conflict and other institutions
which refuse changes.
Some of the modified changes
included (1) Low Reserve Base (2) High Dependence on refinancing (3) lack of
diversification (4) huge accumulated loss (5) Persistent non-performing assets
(6) Low recovery levels (7) Organizational weakness. The main point is that the
emphasis on Industry is a special territory is expected to be coincidental with
Rural Co-operative Credit Institutions, in forming a structure that a stage
level. That is a stage level of not a requirement of the ombudsman and due
diligence officers, who independently takes statistical accounting and
complaints of measure of complain with the Industries and the Banks, and
represent the right and interest of consumers and investors in a competitive
economic environment.
The more important reason for
creating these credit based institutions, was to permit mutual funds with
existing Insurance Companies, with the Government backed-savings schemes, and
other forms of National Savings Scheme (NSS), or Bonds provided by the RBI and
other Industries that are interested Long-term Investment. The trick is that
the investors in the areas of the SEZs will be permitted to sort their
opportunities through a self-critical certification group and through Long-term
options that had the backing of the Government.
The other issues of the Volatility
of Mutual Funds as we know that have a way to shocking the market or testing
the investor confidence since money from Banks at near zero to Stock market is
usually indicative of the STRESS level of the market and the Federal Reserve.
What the RBI did also was to suspend the flipping of property, which is a form
of regulation that is driven by Credit based economies such as Texas or in some
areas of United States including, North Carolina, only a certain level short
term mortgage is permissible. Proof of that was the amount of money banks
generally permit you to put down for a house as opposed to buying Apartment.
The
moral Hiatus is that cheap houses attract investors comfortable with long term
investment and therefore growth should correlate Internal Rate of Return which
in this case is the rate of Investment. The temptations associated with this
sort of arrangement is that migrants from a different system dynamic have a
Cycle of less 16 months to survive, and in terms of Houses, many of the City or
Urban Dwellers usually face sterility of house value following a period of time,
some of them damage over time and without repair, the sink the neighborhood a
new and deadly cycle.
In fact, without short term bias of
flipping as Secularized level, houses will not easily correlate production
which is not exactly manufacturing. What happens in any areas there is revival
driven by individual rates rather markets rates, we find for instance a short
redemption of property class from what is available for instance, in North
Carolina most expensive Real Estates of Durham is within miles of the probably
worst and unkempt real estate in the State.
The argument borrowed from New York where securities of major companies
are bought and sold at whims, the flipping of houses assumes a market rate, to
the point that a house that would what half the price in Carolina will
appreciate to an estimable level within a 9 year cycle or presidential two
terms.
In these areas, or assuming that New York failed to engineer an Internal
Rate of Return as gifted successes its subways indicates, which delivers in
close a million clients from point of the Interlocked City within days or a
week, the City will not simply crumble on the weight of high, inadequate,
over-bearing and over-priced houses. The fact of Internal Rate of Returns with
assumptions of a City of Medicine for instance or a City of Motor Cars for
instance, should widens its yield curve if without the Chief product it can
generally generate money within its demand and supply.
In other to widen the argument,
R.B.I “As the lender of the last resort, the RBI helps the commercial banks in
temporary need of cash when other sources of raising cash are exhausted. The
RBI provides credit to banks by re-discounting eligibility bills of exchange
and by making advances against eligibility securities such as government
securities. The lending rate for these advances by the RBI is called Bank rate
which is a traditional weapon of control money supply. An increase in the bank
rate would discourage commercial banks to borrow from the RBI and a
corresponding increase in the lending of rate of commercial banks to general
public would decrease public borrowings from banks.”
