May 16 What is the Best Dividend Paying Exchange Traded Fund (ETF) for Income?-------- Original Message --------
| Subject: | FWC: Rupee falls to all-time low, but FM says no need to panic |
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| Date: | Wed, 16 May 2012 10:42:09 -0700 |
| From: | Jas Jain |
FWC: Rupee falls to all-time low, but FM says no need to panic
RBI is intervening to keep the rupee (INR) from falling. India is not Switzerland and rupee is no Swissie. SNB intervened because Swissie was grossly overvalued and bringing it down became a necessity for the economy. INR is overvalued and needs to fall. Once the global depression begins (could happen at any time without much advance notice) the foreign capital that is leaving leisurely now would flee like a herd getting out of a narrow gate and trampling one another. Only stupid people would keep their capital in INR. Indian govt's ability to manage the economy during the depression is next-to-nil. Crooks would manage their own interests with hired goondas while the govt looks the other way and politicians blaming one another. Bhagavan pe bhrosa hai. What a system!
Jas
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Rupee falls to all-time low, but FM says no need to panic
The currency is back in focus with the rupee falling to new lows on increased capital outflows amid strong demand for the greenback.
Surrendering to the sharp risk aversion hitting global markets, in addition with country's fiscal and economic outlooks, the Indian rupee today fell to a record low against the dollar.On Wednesday, the rupee fell to an all-time low of 54.46 per dollar. However, the finance minister said that there is no need for panic, as the rupee could be under pressure but RBI is keeping a close watch on the currency.
On Monday, it was assumed that the Reserve Bank of India had defended rupee at the 53.90 level, and there were hopes that the central bank would intervene at the 54 per dollar level. However, RBI Deputy Governor said that the Reserve Bank of India does not intervene to protect any level of the rupee.
He clarified that the central bank intervenes in forex market only to contain volatility. "The regulator will act to stop speculation in forex markets."
Speaking to Bloomberg UTV, sources said that the central bank may sell dollars directly to oil companies. They further said that special market operations (SMO) window will be opened which might probably be announced this week. "Could keep SMO window open for 2-3 weeks," they added.
SMO is special market operations to supply dollars. Way back in 2008, RBI had temporarily opened a special window.
May 11 AAII Sentiment Survey Data and Chart
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2 comments:
USD & Bonds -- Re: Three Markets Pointing to the Deflationary Outcome As a Result of the Current Problems
Someone mentioned the USD and I agree. There were too many comments to respond, but the single best indicator that the US Treasury bonds should be sold is when dope dealers on CNBC start to warm up to them and start trashing the Scam Market. I don’t expect this to happen anytime soon.
Jas
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Three Markets Pointing to the Deflationary Outcome As a Result of the Current Problems
The commodities mkt, the Scam Market, and the US Treasury mkt. Needless to point out that the smartest of these markets is the Treasury bond mkt. Lots of dopes and dope dealers crowd the Scam Market and the commodities mkt.
Jas
Re: Currency Restrictions and More--RE: RBI 'measures' on rupee
Sabri: “Hey, I live in Mumbai and work at the RBI. But then, they do what they do without consulting with me. They have to take full measures, not such partial measures. They still don't have the guts to do such things, so this is what happens. I told them that they should expect 60 rupees per $1, if it goes like that. Don't know if they believed me.”
Hello Sabri,
No one is stupid enough to listen to anyone who is long the US Treasury bonds and bullish on the US dollar at the current level. At 60 INR to a USD, the rupee would still be overvalued. Govt people, especially the central bankers, want “orderly” adjustments in the economy and markets when things are out of kilter. These control freaks want to show their authority. They want people to believe that they are in-charge. They want controlled free markets!
India’s choices are extremely limited and the poor decision makers at RBI just want to keep their jobs. All politicians want to keep their jobs as long as they legally can.
Best regards,
Jas
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