Buyouts by Chinese companies !

The biggest challenge for any ‘Global Country’ today is to watch out for corporate buyouts by Chinese companies . U.S & India must be specially watchful ! 

China has a massive dollar surplus, and it might start acquiring key assets abroad, and this could prove to be disastrous for an ignorant economy !

Watch this space, time is not far !

Rajendra Pratap Gupta 

Third World War is on- Rajendra Pratap Gupta

Actual GDP growth around 4 % ? – Rajendra Pratap Gupta

According to the Ministry of Commerce & Industry provisional data released on 6th March 09.

Core growth shrinks to 1.4 % in Jan 09.

The growth of six infrastructure industries – crude , oil , refinery products, coal , power , cement and finished steel –slumped to 1.4 %. Reflecting India’s decline in consumption and getting deeper into recession. Sector had grown at 3.6 % last year. According to the provisional data released , the crude production & petroleum refinery output slipped into a negative growth in January, recording a fall of 8.1 % and 2.6 %.

Agriculture has already moved to negative growth at -2.2 %

Bad loans jumped by 60 % in the third quarter of 2009 for CANARA Bank . Almost similar is the case with other banks .

Had the sixth pay commission recommendations not been implemented , the growth would have been much lower than 5.3%. Growth would have been lower than 4.3 % for Q3 2008

With the rising unemployment as time passes, we are headed towards creating more NPA’s in the financial sectors. With banks becoming more risk averse , their profitability will suffer, as they wound not make money in lending , and give away interest on deposits and lose on increasing NPA’s via defaults .

Chinese economy is slowing down, and it will affect Indian economy in two ways. One , the exports to China will slow down . Second, the Chinese will dump the goods in India with the closing of Chinese factories

If you thought that the Third world war would be fought with weapons , you were fooling yourself. We are in midst of the third world war . Every part of the world is fighting . But as it would have been , the very definition has changed , we are all resorting to protectionism- Financial world war- This is nothing but the third world war in its new avatar.

We are headed towards a major crisis . Time to act fast ………..

Rajendra Pratap Gupta

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China the next Super Power ?

Politics had its own history cycles. Let’s peep into the same. Earlier, UK ( Britain) was the only power in the world , then came US and USSR. Now it is just US. But what next ? Who is the next super power ? It does not take much brain to figure out that China is the next super power unless USA does something magical.

Population wise, growth in the economy wise, loans to America , products of China are on every shelf in every part of the world. No doubt, China , if it can escape the current financial turmoil is the next super power and India should be watchful in its relations with China .

If China wishes , it can collapse US in a matter of weeks and US knows it well .

Let’s see how china escapes the current financial crises to become the next global super power.