-- Posted Thursday, 13 September 2012 | | Disqus
Quantitative easing (QE) or issuance of fresh currency can be avoided by encouraging hiring and consumption. I am always against outsourcing of jobs to other nations whether it’s my country or any other nation. The work force of every nation should have a constitutional right to get jobs first and corporations should be penalized very heavily that outsource jobs to other nations. The administrators of every country should try and retrain workers on jobs that are outsourced so that jobs are brought back. Immigrants should have the last right to jobs in every nation. There has to be a feeling of patriotism among corporations and politicians on the issue of outsourcing of jobs. Reducing outsourcing of jobs is one the big ways to reduce joblessness.
(In India I have seen Bangladeshi nationals taking over low cost jobs from Indians and I feel that it is not right. Further Immigrants can be a security hazard for any nation as they could resort to anti national activities).
QE one to three rounds has created additional capacities in industry. Further QE will not add industrial capacities. Hence capital expenditure growth will fall with every QE. Those job losers who have got back their jobs will increase the savings rate as they do want that jobless nightmare to be repeated. They will spend only on essentials and less on luxury. Spending on luxuries will rise once they feel financially secure. Financial security will not come in a few weeks. It may take a few months.
Further QE will only result in excess speculation in every thing and is highly inflationary in nature. People may not need loans and if you disburse loans to those who do not need them, then a more than fifty percent will go towards excess risky investments.
Changing the basic fundamentals of any nation will take time. The people, politicians and central bank of that nation need to be patient and pursue growth oriented policies consistently. If central bankers and politicians are not patient they will make policies which will only retard long term growth prospects. Technology has changed the spending habits of people and central banks have to adapt to new patterns in consumption.
To conclude
Everyone has to adapt to changing circumstances. There are other ways to stimulate growth. Elected political representatives need to reduce state expenditure so that savings could be used for development purposes. If just elected political representatives reduce their useless expenditure the state will never external help. Every nation should strive to reduce their dependence on foreign debt or else they will continue to be dictated by others. Once there is reduced dependence on external debt, there will not be any need for QE or additional monetary easing. (In India most of the MP’s and MLA are on foreign tour during summer and there is no accountability).
If you have any queries or a different view on the above do mail a reply at insigniaforex@yahoo.com
PRE US OPEN -- BUY OVER AND SELL BELOW CALLS
(To be done on which ever trading call is executed fist)
COMEX
GOLD DECEMBER 2012: Buy gold over $1742 for $1747-$1754-$1789 OR Sell below $1728 for $1724.10-$1717.10-1689.60
SILVER DECEMBER 2012: Buy over $3335 for $3472-$3405-$3503 or sell below $3267 for $3237-$3195-$3067
COPPER DECEMBER 2012: Buy over $374.00 for $377.60-$387.50 or sell below $365.20 for $361.50-$354.50
NYMEX CRUDE OIL: Buy over $98.20 for $99.20-$100.90 or sell below $96.40 for $95.40-$94.40
MCX
GOLD OCTOBER 2012: Buy over 32020 for 32080-32160-32370 or sell below 31870 for 31780-31707-31595
SILVER DECEMBER 2012: Buy over 63600 for 64050-64400-65600 or sell below 62800 for 62441-62168-60242
COPPER NOVEMBER 2012: Buy over 456.30 for 459.20-464.70 or sell below 451.80 for 448.40-445.80
NICKEL SEPTEMBER: Buy over 931 for 946-966 or sell below 928 for 919-904
CRUDE OIL: Buy over 5425 for 5475-5558 or sell below 5370 for 5333-5285-5220
LEAD SEPTEMBER: Buy over 118.20 for 119.20-123.20 or sell below 116.20 for 115.20-112.20
ZINC SEPTEMBER: Buy over 112.20 for 113.20-115.20 or sell below 110.20 for 109.45-107.60
NATURAL GAS SEPTEMBER: Buy over 172.10 for 176.20-186 or sell below 159.50 for 156.10-153.50
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Website www.insigniaconsultants.in
NOTES TO THE ABOVE REPORT
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
PLEASE USE A STOP LOSS OF MINIMUM RS.5000-RS.8000 PER LOT ON ALL INTRA DAY TRADES
ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED
APPROPRIATE STOP LOSSES PER LOT IN INDIAN RUPEEES ON THE TRADING CALLS GIVEN IN THIS REPORT
-- Posted Thursday, 13 September 2012 | Digg This Article
| Source: GoldSeek.com
