Walmart, the retail Chain released its earnings recently.
It shows how the US has virtually been taken over in an important segment.
We do not know at what cost, as yet.
Now, India is planning to invite these Groups to India in Retail.
How about the small Traders and producers?
Quotes:
Retail behemoth Walmart released earnings Thursday, and many have used the report as a way to gauge how the American consumer feels. (Still strained, for the record.) That’s because Walmart is the country’s biggest retailer. Take a look at this animated GIF map by Excel Hero that illustrates the wildfire-like spread of Walmart stores that led to its domination of the United States.
When using an equidistant map, all you need to do is plot the coordinates on an XY (Scatter) chart. Of course you will need to set the horizontal and vertical axes min and max so that the points are drawn close to accurate. This is easy when your data includes a lot of coastal points (just adjust the axes until those points are barely on land). The included map is calibrated quite well.
For this post I chose to imitate Nathan’s outstanding Wallmart growth movie. While Excel is not up to the task of the Flash animation in his movie, the results are not half bad. In my version you can step through year by year manually with a scroll control, or you can click the Animate button and watch the movie.
However much the apologists for Corporates could argue the fact is that the subsidies doled out to the Corporates has not met with the desired social benefits in terms of controlling the prices.
The Economists quote growth rate of the Industry and the saving of Foreign Exchange.
Even if we agree to this, has it reduced the burden of the individuals?
No.
I have collected, as a sample, the Dividend declared by IOC and the subsidies granted by the Government.
Simple logic says that no one would declare Dividend from a losing Company.
How is it that IOC is declaring profits and at the same time crying foul that it would be hurt badly if the Oil Prics are not increased?
As a major Share holder the Government is earning the profit out of IOC.
How can we say Oil Companies/Government is incurring loss on account of Oil Subsidy granted and to recoup it the Government is increasing th Oil Price?
Notwithstanding the mumbo-jumbo of Economics, the fact remains people suffer.
On the other hand a group is emerging,especially IT which fuels inflation.
The word ‘subsidy’ gets the hackles of free market economists up. The government’s economic managers and advisors have consistently been in favour of eliminating – or at least reducing — subsidies.
The present environment supports their argument. The economic slowdown has meant slower revenue growth and a larger than expected ‘fiscal deficit’ – the gap between the government’s income and expenditure – with pressure mounting to reign in the deficit. Numerous voices – from corporate chambers, financial media personalities, and even fund managers – have been calling on the government to reduce deficit by cutting down subsidies. With food inflation abating, the government strategy appears to be to utilise the period until March to build public acceptance of the elimination of subsidies and then make its moves after the state elections are out of the way.
The subsidies that the government wishes to cut or eliminate fund diverse programmes, with the common theme being that they make available some item of mass consumption – foodgrains, fuel or fertilisers – at prices controlled by the government rather than left to market forces.
The most elaborate subsidy is the food security programme with a Public Distribution System (PDS) that procures grain from farmers, maintains a buffer stock in storage, and makes the grain available around the year to 65 million households across the country through nearly half-a-million retail outlets. The oil programme has several components — providing kerosene (used mainly for lighting by poor families) through PDS outlets; distributing Liquefied Petroleum Gas (LPG) for cooking to 115 million customers; and finally making diesel – 75% of which is used for mass transport, both rail and road, for agricultural machinery and for emergency power generation – available at government set prices. The last programme pays fertiliser manufacturers and importers to sell fertilisers to farmers at government set prices.
Government support for these programmes has the effect of lowering the expenditure of poor households. This assumes importance in the absence of a state-supported guarantee of minimum income levels. Social security – a fallback in case of unemployment, old age and incapacitation or illness – is non-existent for most Indians. A recent report (Divided We Stand: Why Inequality Keeps Rising) from the Organisation of Economic Co-operation and Development (OECD) finds India’s public social spending measured as a fraction of its GDP not only far lower than the developed countries, but also lower than China, Russia, Brazil, and South Africa, the ‘emerging economies’ with which it is often compared.
Yet the government’s economic advisors choose to question the provision of subsidies.
S& P’s rating of India has come in handy for all and sundry to call for advanced reforms in Indian economy.
The Ups and Downs of your Credit Rating (Photo credit: GDS Infographics)
The report cites ‘political indecision,slow implementation and introduction of Economic Reform‘ as the cause for S&P’s decision to downgrade Indian Economy.
The general meaning of our credit rating opinions is summarized below.
‘AAA’—Extremely strong capacity to meet financial commitments. Highest Rating.
‘AA’—Very strong capacity to meet financial commitments.
‘A’—Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.
‘BBB’—Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.
‘BBB-‘—Considered lowest investment grade by market participants.
‘BB+’—Considered highest speculative grade by market participants.
‘BB’—Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.
‘B’—More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
‘CCC’—Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments.
‘CC’—Currently highly vulnerable.
‘C’—Currently highly vulnerable obligations and other defined circumstances.
‘D’—Payment default on financial commitments.
Note: Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
“Although finance ministerPranab Mukherjeehas put up a brave face on the economy, evidence that it is on the skids can`t be glossed over any more. The industrial growth rate was a mere 0.1% in April, after falling to -3.2% in March. The fall in overall GDP growth has begun showing up in shrinking employment numbers, with jobs in labour-intensive industries such as textiles being hit particularly badly. Like the threatened downgrade of India`s investment rating by global agency Standard & Poor`s, the finance minister`s reassurances too could acquire junk status unless backed by vigorous government action.
The outlook on India`s sovereign ratings had already been revised down to the last notch of the investment grade last April. A further fall to speculative grade will not only significantly impact foreign investment inflows but also push up cost of borrowings from abroad, denting income and employment growth. The slowdown in growth and higher government spending has already eroded the targets for improvements in government finances and dampened investment flows. To reverse this trend, the government must end the policy paralysis which prevents it from implementing decisions in a wide range of areas, including multi-brand retail, pension, insurance, land acquisition, project clearances, railway fares, oil pricing, fertiliser subsidies and the goods and services tax.”
Countries with Higher Debt % to GDP are given better Rating,USA,Germany UK and Canada and Japan.
Does it mean you increase your Debt to be rated as Stable?
The rumbles on rating usually starts when US/Europe faces Monetary crisis.
Is it to enable them to stabilize themselves at the cost of others?
How is it that limping economies can help improve a better performing Economy?
I know the reply will be in jargons, which does not make common sense.
How has the increase in FDI in Insurance benefitted India?
Policy Decisions to help multi-brand retail, pension, insurance, land acquisition, project clearances, railway fares, oil pricing, fertiliser subsidies and the goods and services tax are needed?
For?
To allow multi Brand Retail Chains,allow people.under the guise of Corporates to grab agricultural lands, increase Rail Fare, Goods and Service Tax?
How are these Companies performing in relation to improving Indian Economy?
Even to-day LIC is performing better.
Handing over infrastructural projects to foreign business may help them make more money.
Why not pump India money for these projects?
Yes policy indecisions are there.
They are to be corrected,not necessarily the one relating to FDI alone.
Look at Argentina,Brazil,Ireland, Greece and now Spain who followed IMF prescriptions till the other day!
I have earlier blogged that the reason for the economic crisis is the absence of adequate Gold Reserves in the Developed Countries, especially in the US.
Now, to bolster the tottering Economy, the US, where Deficit Financing has reached astronomical proportions is going all out on a Gold-buying spree.
It is also using this as a tool to wreck the developing countries who are posing a challenge to them.
In the process poor nations will have no option but to lean on the US for support, thus increasing the US’s Sphere of Influence.
As a consequence the price of Gold is likely to soar in 202-13.
Refers to:
Under the Bretton Woods agreement, the US dollar became the reserve currency of the world. For getting European support, essential for the implementation of Bretton Woods system, the US flooded Europe with dollars.
Various mechanisms like the Marshall Plan, the IBRD, were used. This flood of US dollars, anchored European currencies – and by proxy, became equally useful. For the last 60 years now, European nations there was no need to maintain any foreign exchange reserves.
Unlike the rest of the world.
Even major economies like Japan, China, India, Brazil, Russia.
Are things changing now?
In common with most developed countries the U.K. has no reserves worth speaking of. In truth, what is interesting is how low the reserves held by all the developed nations now are. Switzerland is the only European country with significant reserves, with $340 billion squirreled away, whilst Germany has $257 billion, and France has $172 billion. The U.S. only has $148.5 billion, although when you can print the world’s reserve currency maybe that doesn’t matter so much. Overall, however, it is only the emerging nations that have built up significant cash piles.
Central banks in the emerging markets increasing their holdings of gold has been a big part of the bull market in the metal. At the end of last year, official net purchases of gold started to rise dramatically. In the third quarter of 2011, central banks added 148.8 tonnes to their gold stocks, more than double the entire amount of government buying in 2010, according to the World Gold Council. Interestingly, the Greek central bank has been slowly adding to its holdings of gold, which would be sort of handy, should they happen to decide to re-introduce the drachmas one day.
But the next phase will be developed world central banks moving back into precious metal; the U.K., Germany, France, Switzerland and potentially the U.S. as well.
The U.K. has given the first hints that policy makers are at least thinking about it. Actual buying maybe some way off. And if they start, it will be done discreetly, otherwise the price will shoot up.
But when it starts to happen seriously, it will provide the bull market in gold with a whole new impetus. (via Why Gold’s Bull Run Could Continue – SmartMoney.com).
“…Recent coordinated actions by six central banks and separate actions by the ECB suggest that non-gold related measures to ease access to USD swaps will be successful, reducing downside pressure on the gold price.”
Drawing on this they think gold prices will depend on the persistence of four pillars of the original bull market namely:
1. Decline in producer hedging. Last year gold mining companies growing cautious on gold volatility began hedging to lock-in prices for their future output. But Morgan Stanley analysts say a decline in hedging or a potential de-hedging could be a “positive demand factor”.
2. The decline of developed market central bank sales and rise of emerging market central bank purchases
3. The inability of gold mining companies to increase gold supplies materially
4. Long-term growth in physical investment demand.
Morgan Stanley projects gold prices will rise to $1,845 per ounce in 2012 and $2,175 in 2013. For now they see that absence of central bank sales, limitations in size of the scrap gold pool, the rising demand from ETFs and coin sales is likely to see the bull market last into 2012 – 2013.
The repressed anger of the people against the Governments being run by proxy by Corporates is understandable.
While austerity measures are meant for the ordinary Joe, the Corporates go scot free.Take the instance of Goldman Sach-.The Comany had to be bailed out by the government, but the executives granted themselves Bonus.It required the arm twisting of Obama to make them drop the move.
By reckless spending the Corporates squander money, borrow outrageous loans from financial institutions with the help of crooked auditors and cooked books,evade taxes,get themselves paid enormously and post losses, which is only in the books.
Then they approach the Financial Institutions additional loans to help them pay the original loan.Banks, afraid of losing the original loan advances them more and yet the corporates fail again.
Then they go the Government ,blackmail them stating that the economy will be ruined and unemployment will rise.
The Government ,partly because of economic non sense and partly because they need corporates‘ money for election offer a bail out.
This is the story through out the world.
Now for a failing airlines owned by Liquor baron in India the Government is arm twisting the banks into lending him with out sufficient security and is also considering a bail out.
For all this shenanigans the financial institutions are hands in glove with the corporates.
Unless this is checked, ordinary working people will be in the streets.
These atrocious greed of the corporates makes one ,despite one’s revulsion,to think of Communism as an alternative.
The Occupy Wall street Movement must be supported by all those who think right and it has to be led properly to end the menace of Corporate greed.
Live Updates
12:18 pm: triumphant marchers returning to Liberty Square
12:14 pm: global solidarity actions: Occupy LA blocking bridge into financial district;Occupy Portland closes Steel Bridge; 30,000 march in Greece; more updates to come.
11:55 am: one of many video streams, TheOther99, breaks 20K current viewers, nearly 170K total views
11:52 am: counterterrorism agents spotted, appear oblivious to economic terrorism
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