Entries Categorized as 'Uncategorized'
May 14, 2013
China: In Cash We Trust (WSJ): We think of India as using a lot of cash, but in reality, China’s just as big, or bigger:
Lugging nearly $130,000 in cash into a dealership might sound bizarre, but it’s not exactly uncommon in China, where hotel bills, jewelry purchases and even the lecture fees for visiting scholars are routinely settled with thick wads of renminbi, China’s currency.
This is a country, after all, where home buyers make down payments with trunks filled with cash. And big-city law firms have been known to hire armored cars to deliver the cash needed to pay monthly salaries.
This of course might not be possible in India, where buying a car needs a cheque or draft, or you have to give your PAN number (which reveals who you are).
China has a limited note printing policy, it seems:
Doing business in China takes a lot of cash because Chinese authorities refuse to print any bill larger than the 100-renminbi note. That’s equivalent to $16. Since 1988, the 100-renminbi note, graced by Mao Zedong’s visage, has been the largest note in circulation, even though the economy has grown fiftyfold.
India doesn’t have anything larger than …
February 5, 2013
(Written for Pragati, December 2012) The Reserve Bank of India has been a regulator of acclaim, and as regulators all over the world have become more significant to their economies, their role has come under greater scrutiny. In general, the RBI sounds like a bank regulator, but it performs many functions that are at odds [...]
December 29, 2012
Okay, I’m up to here with relationship managers and financial advisors and the like. In the process of assessing a new business opportunity in providing advisory services, I have most recently seen people perplexed with the kind of investment opportunities offered. An NRI is offered an insurance product as a long term savings avenue. The [...]
September 27, 2012
DailyObjects.com, an online Mobile Accessories store, has a special offer for Capital Mind Readers. They are offering a discount of Rs. 200 for a purchase of Rs. 999 and more. DailyObjects sells accessories like mobile covers, chargers, webcams, travel bags etc. I have two products from their site – a mobile battery charger and a [...]
September 22, 2012
I will be speaking at a Trader Conference called "Traders’ Carnival", being conducted by J. Dharmaraj (@ra1nb0w). I’ll speak on the impact of RBI policies on the market in general, and some basic concepts of liquidity, inflation and money supply. There’s a bunch of good speakers out there – most of us communicate on Twitter. [...]
September 8, 2012
A recent article by John Hempton tells us that China is a Kleptocracy: China is a kleptocracy. Get used to it. I start this analysis with China being a kleptocracy – a country ruled by thieves. That is a bold assertion – but I am going to have to assert it. People I know deep [...]
June 22, 2012
NSE Cash Market Volumes have been pathetic recently, clocking less than 10,000 cr. on average since March 2012. The numbers are bleak – they are the lowest since May 2007. (You have to discount the dip in early 2009 because the market was about 40% lower than today’s market, and thus the value traded would [...]
June 13, 2012
Diesel Vehicles to cost more? The oil ministry has supposedly requested a steep hike in excise duty for diesel cars, of at least Rs. 170,000 per small car and 255,000 on larger cars. This would take car prices up upto 30% higher than current levels. From MSN: In a letter to the Finance Minister, Mr [...]
June 6, 2012
Mary Meeker says that India’s Mobile usage of the internet has surpassed Desktop usage. This is where I pause to let you splutter and choke. I don’t believe this number one little bit. For one I have been complaining for a while that most Indian sites don’t even gracefully degrade to the mobile (Notable [...]
May 31, 2012
My standard month-end post of returns for the Nifty gives a –6.2% return, making it the third negative return in a row and the worst for 2012. What can we expect for June? The average return for June is the third best of the year (after December and February) at 1.3%, but with a standard [...]