Updates from the Managing Director

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India’s supposed lack of action against the Kashmir Conflict has led to an overthrowing of the Rajya Sabha.  December 21st, 1998 Reports have it that a mysterious figure of the moniker “Gurt” has now become the head of the Indian upper house. It seems that his lack of understanding of political notions have not held him back from his popularity and resolve to supposedly change the Indian economy — investors do not buy this one bit. Large scale capital outflows have led to banks displacing their regional headquarters elsewhere, with little chance for change. The Indian stock market has fallen an egregious 25% in one day, never before seen levels following the Bretton Woods agreement.  A report by the Financial Times has disclosed that companies seek greater non-bank funding, and support from regulatory authorities in crafting strong economic policy that can uplift local SMEs and convince these banks to return their investments into India. Renowned economist Ramerez Ong mentions...

The IMF has ostensibly saved Myanmar from economic calamity, but was it  worth it? December 20th, 1998 Economic liberalisation and increased foreign investment embedded within the IMF’s recent loaning  arrangement has led to significant stabilisation of Myanmar’s oil industry, while greater trade diversification  with other regions like Europe has allowed for reduced risk in Myanmar’s economy. While a small start,  Myanmar has much to celebrate about. However, detractors have raised a few issues with the loaning agreement. The erosion of economic sovereignty, with Myanmar giving up executive control over core economic zones (SEZs), banking regulation, and oil  trade (via CLEAR and IMF oversight). Furthermore, forcing Myanmar to have 15% of its trade demarcated in  the Euro in 5 years’ time has weakened control over capital flows of the nation, with currency reform becoming less effective in affecting the circulating money supply. Some have called this ...

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December 15th, 1998 With the rest of the world in economic chaos, it now comes a time for America to prosper. American  investment in Europe and South Asia is in high demand, and exploitable economies are all around us.  This is the time to demand deregulation, open markets to American goods and products, to privatise as  much as possible.   Remember the prosperity found after the Latin American Crisis last decade? Although economic  liberalisation aggravated inequalities and poverty conditions, we also saved Latin America. More  importantly, the level of economic dependence they still have upon us is magnificent. A repeat of this  would further our business interests, and the IMF is a great vehicle for such interests.   - Warren Buffet, CEO of Berkshire Hathaway 

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  Plane crashes, market falls, recessionary indicators…what hasn’t Europe  faced in the past few months? December 9th, 1998 Following the countless market crashes in the world, Europe is finally starting to fall prey to financial  contagion. Market falls have hurt investor confidence, while governments are slowly running out of liquidity  and taking on more high-yield loans to pay for such spending. Risk is now inherent in the European  economy, and liquidity issues in both the public and private are arising. German companies would have  invested heavily in the Southeast Asian region like Siemens AG are now struggling to garner returns, and  retrenchment rates are climbing. Meanwhile, capital flight away from Europe is starting, as investors pursue stability in their investments.    In worse news, poor banking regulations in nations like France and the United Kingdom has led to  immense risk-taking by commercial banks across the region. ...

As conflict rages between India and Pakistan, Indian bond yields soar to  new heights December 7th, 1998 Indian bond yields have been soaring over the past month as we see investors demand greater risk premiums  and fear over heightened inflation caused by government spending on the military. The conflict has been  escalating, with more missiles being fired from both sides and on-the-ground combat increasing in frequency  and mortality rates rising.    As consumers start to lose confidence in the Indian economy and government bonds, fear engulfs the Indian  peninsula. Investors are more weary of government bonds, and financial contagion from other Asian  economies is slowly starting to spread, and we might be faced with a new threat of illiquidity in no time.   

Suspicious… December 3rd, 1998 We have caught wind from an anonymous sources that US representative Director Lissakers has been  engaged in some affairs behind the doors of the Executive Board. Apparently, Lissakers has been found  frequenting the White House, with President Bill Clinton captured on camera with his hand on her hip  multiple times.    Director Lissakers’ recent working paper fails to help address these suspicions, with a strange image of  Bill Clinton photoshopped on a very masculine looking figure.

  M.R Sivaraman_LOIMOU1

  [LOIMOU] Enzo R. Grilli

We’ll be looking at the current Global Financial Crisis – How it started  and got out of hand and the current situation December 1st, 1998 Once a regional crisis limited to Asia, the current financial crisis has spread across the world like an  infectious plague, like a wildfire ravaging a rainforest. And citizens around the world have all been asking  the same question – why isn’t anyone doing anything about it?   The inaction or sometimes “mis-action” of countries has led to the financial state in countries such as  Thailand and Myanmar to worsen, with Thailand’s economy in complete disarray, with the unemployment  rate climbing as high as 9%. Some Thai youth have, unbelievably, offered to work as janitors in the Royal  Palace to secure employment for themselves. In nearby Myanmar, its desperate pleas for IMF intervention  in its oil crisis were initially heeded, despite infighting and squabbles over technicalities punctuating the  negotiat...