“We need the financial industry to be honest with us,” she told a conference in Berlin. “If we don’t get honesty, then we might not do the right thing technically but we will do the right thing politically.”
Wolfgang Schäuble, her finance minister, defended Germany’s sudden move. “If you want to drain a swamp, you don’t ask the frogs for an objective assessment of the situation,” he told reporters. ft
The Krauts really shouldn’t talk to the French like that
Investor and Adventure Capitalist Jim Rogers remains deeply sceptical of India’s future. In an interview with Forbes India, he argues the country is sitting on a fiscal time bomb.The finance minister has changed the direction of India’s budget deficit by reducing the target for 2010-11 to 5.5 percent.
You really believe it will happen? Go back over the years and see their previous claims.
He has got a lot of praise for that in India. Still you are not impressed. Why?
Even if it happens, it is not being done by sound budgeting. It is from selling off the family jewels if it happens.
Don’t you think a high deficit was justified last year when the government had to spend and help the economy revive?
No. They are just trying to push the problems out into the future rather than solving the underlying problems. Do you really think the solution for a problem of too much debt and too much consumption is more debt and more consumption?
Are we not living in extraordinary times when we have to follow such flexible policies?
We are indeed. They are making the problems worse in extraordinary times which require tough measures to correct decades of abuse.
The finance minister rolled back some of the economic stimulus measures he had announced last year. Would you have preferred to see a complete rollback than a partial one?
Yes. And more.
If you were to set an agenda for the government, what would that be?
Cut spending and subsidies dramatically. Many studies have shown that countries start having serious growth problems when debt is 90 percent of GDP (gross domestic product). India is now [at] 80 percent and will be [at] 90 percent soon under this budget. The subsidies distort the economy in less productive areas.
Greece got a bailout Sunday from the IMF (International Monetary Fund) and EU (European Union). There will be harsh austerity measures (increase in taxes, lower public sector wages, pension reform), read this Reuters article: Greek cabinet to discuss tough new austerity steps and listen to the Greek Financia Minister speak below. Specifically on the bailout, WSJ reported that,”Greece reached a historic deal with other euro-zone countries and the International
Monetary Fund for a three-year, €110 billion ($146.5 billion) bailout”. [full WSJ article] The bailout also includes a €10 Billion support fund for banks (Bloomberg). Find the full text of Papandreou addressing his Cabinet on the bailout here. Below are videos from RussiaToday, Reuters and EUX.tv featuring Greek Finance Minister Giorgos papaconstantinou outlining the austerity package, riot videos and more.
“Spain is not Greece.” Elena Salgado, Spanish Finance minister, February, 2010. “Portugal is not Greece.” The Economist, April 2010. “Greece is not Ireland.” George Papaconstantinou, Greek Finance minister, November, 2010. “Spain is neither Ireland nor Portugal.” Elena Salgado, Spanish Finance minister, November 2010. “Ireland is not in ‘Greek Territory.’”Irish Finance Minister Brian Lenihan. November 2010. “Neither Spain nor Portugal is Ireland.” Angel Gurria, Secretary-general OECD, November, 2010. “Spain is not Uganda” Spanish PM Rajoy. June, 2012. |
Foreign investors funneled more than $15 billion to Indian equities in 2009, sending stocks up more than 75% and strengthening the rupee . With expected positive growth rates for the year and higher interest rates differentials that favor emerging markets, investors are looking to India as a good place to stash their wealth.
The Reserve Bank of India (RBI) has already taken the necessary precautions to stave off a potential asset bubble forming in India’s stock and real estate markets. India’s officials are welcoming the fund inflows with open arms, but Finance Minister Pranab Mukherjee says monetary tools will be implemented if inflows become disruptive to the economy.
RBI could stem inflows by:
We are expecting very soon by Next month or First week Jan’10
Greek premier Lucas Papademos held last-minute talks on Sunday with international lenders on wage and pension cuts amid fears that political leaders may reject a second €130bn bail-out and plunge the country into a chaotic default.
Evangelos Venizelos, finance minister, said “It’s not an impasse but there are problems for the Greek side” over terms of a medium-term package being negotiated with the so-called “troika” – representatives of the European Commission, European Central Bank and International Monetary Fund.
The two sides were “quite far apart” over projected cuts of 25 per cent in private sector wages, 35 per cent in supplementary pensions and the immediate closure of about 100 state-controlled organisations with thousands of job losses, a Greek official said.
Mr Papademos held telephone conversations on Sunday with Christine Lagarde, IMF managing director and Mario Draghi, ECB president, in a bid to break the deadlock, the official added.
The three leaders of Greece’s national unity government were due to meet Mr Papademos later on Sunday to agree the package before it goes to eurozone finance ministers for approval next week.
It was not clear whether former socialist premier George Papandreou and Antonis Samaras, the conservative leader bidding to succeed him, would also meet the troika mission chiefs. (more…)
“We need the financial industry to be honest with us,” she told a conference in Berlin. “If we don’t get honesty, then we might not do the right thing technically but we will do the right thing politically.”