Emerging Market Risks

I found an intersesting article in the Economist .I want to share will u all



Click here to read

Is Nepal Going to be the next Pakistan .

I came across a statement by Yashwant Sinha MP and former External Affairs Minister about the Foreign policy which NDA government believes in.In the first line there was a quote by L.K.AdVani “NDA will pursue a muscular foreign policy, aimed at preserving India’s autonomy, securing our national interests in the neighbourhood, and promoting its strategic interests in the emerging new world” So what does it means to Nepal ?

• BJP and Advani does not like the fact the Maoist are running the Himalayan nation . Advani thinks Naxalite and Maoist TWINS.So if BJP come into power it will try to topple the Government .
• Relation Between NEPALI army and Maoist is getting worst every day due to the differences in the integration process's .Involving Army in the Political play is not at all good for the countries democracy .We have seen the consequences in our South Asian Neighbours ( Pakistan and Bangladesh )
• Foreign players can take the advantages of this institution .
• BJP does not like the fact the Nepal Is getting closer to China . They know in the current global economic situation China can do what never they want because they got the money . Every body know in the subcontinent "Na baap badaa naa bhaiyaa sabsey bhaadaa Rupia "
• If BJP wins ,to counter blance the Maoist in Nepal ,they will support liberal parties and terai rebels . THEY WIll also give boost the moral of people holding the pro -monarch and pro Hindu ideology .
• IF Maoist want to work autonomously the first think they need to do is take care of inflation and try to insulate Nepal from the global financial crisis.

"The global economic crisis is the largest near-term security threat to the United States, President Barack Obama's national intelligence director told Congress "

GOLD PRICE AND NEPAL

Recently we are seeing the Price of gold sky rocking ,This is very obvious because this commodity is consider hedge against inflation and safe haven when times are bearish .Like any other market Nepal is no diffrent .Price of gold yesterday touched another record high of Rs 28,400 per tola (11.664 gram).There is a new trend going on in Nepal buying gold not just Weddings but as a investment .Financial insituation like Ace have introduced Gold ETF, This fund will buy gold directly, according to details released announcing its introduction.This ETF represents the cheapest way for Nepali janta to gain exposure to physical gold bullion.


SO what if Gold is the next bubble? ,Is this rally good for equities ( gold mine stocks) but bad for bullion ?
will the bubble bust if the US stimulus package actually starts to work and there is a confident in the market ?


http://www.blanchardonline.com/beru/why_own_gold.php

The Fight Against Protectionism

WHY PAKISTAN FREED DR. KHAN ?

A Pakistani court Friday freed nuclear scientist Abdul Qadeer Khan after five years of house arrest, this have sparked anger and fear all around the world ,especially among the oldest and largest democracy of the world and their close allies .
So why was he freed? WHEN President Zardari is all about peace and harmony in the Sub continent. Remember President Zardari calming "Pak will not use nuclear weapons against India first" and Proposed South Asia free of nuclear weapons, few days before Mumbai attack .So What have changed since ?
A taxi Driver from Islamabad can give you the answer “The Americans, Israel and India all opposed Abdul Qadeer Khan because he gave us our first Islamic nuclear bomb”
My thought on the question WHO LET THE KHAN OUT is
Pakistan want to send out a message to the World that “ How dare you call a nuclear Power a failed state “ For the past few years Islamabad is being deeply criticized by leaders all around the World for supporting terrorism .President Obama then the senator even claimed he was willing to invade Pakistan in hunt for AL Qaeda .After the Mumbai attack the whole world was after Pakistan and it came under tremendous pressure .To please international community Pakistan even outlawed Jamaat-ud-Dawa , the PR agent for Lashkar-e-Taiba terror group. President Zardari had also agreed to sent DG ISI to India for the investigation but backed out after being criticized by Rawalpindi. After the Mumbai attack Islamabad and Rawalpindi found a same enemy India. Government of Pakistan saw India being backed by all the Pro democratic allies against Pakistan and its ill polices .India is counting on outside powers to intercede on its behalf. Measured in air-miles, the diplomatic effort has been impressive: Joe Biden, America’s new vice-president, and Condoleezza Rice, its former secretary of state, have made the trip to Islamabad, as have Britain’s prime minister, foreign secretary and defence secretary.


People of Pakistan are not happy with the PPP led government and the criticism its facing. To boost the national moral the Dr Khan was freed. Dr Khan is still consider the hero of the nation . When news flashed about his released from the house arrest,People where celebrating. This was also a message to India who tested its BrahMos cruise missile in a desert near Pakistan and also displayed Agani 3 for the first time in the republic day parade.

I think this is going to back fire Pakistan. Especially when Iran and North Korea claims they already have enough material to create the weapon of mass destruction .Srimati Sonia Gandhi and Congress I want Pakistan declared terror state.