India opposes Bernanke's easing policies- QE-3

In an interview to the CNBC-TV 18, an Indian Business channel, Pranab Mukherjee, Indian Finance Minister, is reportedly have told that, India will be opposing the Q.E. programme by US FED. Indian Minister is believed to be upset by the Rising commodity prices and particularly Crude Oil prices.
While, when Q.E. programme started Indian government was delighted by expectations of Large Fund Flow towards developing economies like India. But, as Dr Bernanke led QE2 and treated the rising Inflation as ' ' 'Transitory' and blamed the rising consumption by India and China for rising fuel prices. The FED' recent announcement of keeping ' Interest rates ' low till Mid 2013, kept the realms of Inflation as an open ended rope.
India has been fighting Inflation and Reserve Bank of India has raised the interest rates by 325 points in last 11 meetings. The data released on yesterday showed Inflation in India remained in above 10%, Yo Y. The rising Inflation and falling growth has been acting as ' Head Winds' for the economy.

Break up in G-20..?

India has been murmuring the Economy aspect and  Mr. Mukherjee has now gone public against it. Brasil and China have been Vocal and Active in this Crusade. The both have been tightening Mode already.

Bernanke's Put, European PMI/Debts, Anna Hazare

Goldman Sachs has down graded the Growth prospect for US in Q3 and Q4. The head line news shall rumble as week is entered.

 Anna Hazare's Agitation now elapses a week. The Gritty man and his millions of agitators shall be entering into a crucial phase. The Indian government has barricaded itself with ' Standing Committee' and the Equity markets have been silent watcher or has yet react. It is expected that, Congress who has no political leadership, will find the situation intolerable. The deterioration of Anna's health or that of any other activist, may cause ' Ripples' and cause Infectious consequences. The Parliament is likely to Buzz, the mammoth human rally, across the Length and Breadth of the nation. The Government seems to have ignoring the issue and the costs may rise. The Uncertainty may chase the market and business sentiment. 

Recession Crusader 

Bernanke's Put and Jackson Hole : In the FOMC minutes, FED had immensely elaborated the its options and Mr Bernanke exercised, ' PUT '. The occasion shall be an ideal place to respond the 3 Wise man, who voted against the decision, in last Meet. 2) Mr. Bernanke is likely to Explain the Utility of the ' Declaration of Mid 2013' and may be explicit about the Intentions, of accommodative Policies. 

French- German finance Ministers, shall be meeting on the Tuesday to further shape up the Merkel-Sarkozy accord and its efficacy. European Bank and Its Stake holders appear to have been loosing ' patience' and insecure.


The Flash P.M.I. Survey's may add some ' Glucose' in the early part of the week, on Tuesday

US Data : Economic reports in the coming week include new-home sales Monday, durable goods Wednesday, and weekly jobless claims Thursday. A second reading on second quarter GDP is released Friday, as is consumer sentiment for August.


The end of month data may mixed and markets are likely to reach in oversold zone. 


Its anticipated that, the early part of the week shall remain Weak and Week end GDP nos shall be  a threat. 
Expecting a ' Squeeze Rally ' in between as relief rally.  


My Note : I remain preoccupied with world moving around and making me restless and uneasy. My animal sense is smelling a ' tragedy' in India. 

Indian Government differs to Agitation: A Fine Print

                                   

1) There is a divergence on the jurisdiction of the Lok Pal. Both bills include ministers, MPs for any action outside Parliament, and Group A officers (and equivalent) of the government. The government Bill includes the Prime Minister after he demits office whereas the JLP includes a sitting Prime Minister. The JLP includes any act of an MP in respect of a speech or vote in Parliament (which is now protected by Article 105 of the Constitution). The JLP includes judges; the government Bill excludes them. The JLP includes all government officials, while the government Bill does not include junior (below Group A) officials. The government Bill also includes officers of NGOs who receive government funds or any funds from the public; JLP does not cover NGOs.

2)  The two Bills differ on the composition. The government Bill has a chairperson and up to 8 members; at least half the members must have a judicial background. The JLP has a chairperson and 10 members, of which 4 have a judicial background.

3) The process of selecting the Lok Pal members is different. The JLP has a two stage process. A search committee will shortlist potential candidates. The search committee will have 10 members; five of these would have retired as Chief Justice of India, Chief Election Commissioner or Comptroller and Auditor General; they will select the other five from civil society. The Lok Pal chairperson and members will be selected from this shortlist by a selection committee. The selection committee consists of the Prime Minister, the Leader of Opposition in Lok Sabha, two Supreme Court judges, two high court chief justices, the Chief Election Commissioner, the Comptroller and Auditor General and all previous Lok Pal chairpersons.

     The government Bill has a simpler process. The selection will be made by a committee consisting of the Prime Minister, the leaders of Opposition in both Houses of Parliament, a Supreme Court judge, a high court chief justice, an eminent jurist and an eminent person in public life. The selection committee may, at its discretion, appoint a search committee to shortlist candidates.

4) There are some differences in the qualifications of a member of the Lok Pal. The JLP requires a judicial member to have held judicial office for 10 years or been a high court or Supreme Court advocate for 15 years. The government Bill requires the judicial member to be a Supreme Court judge or a high court chief justice. For other members, the government Bill requires at least 25 years experience in anti-corruption policy, public administration, vigilance or finance. The JLP has a lower age limit of 45 years, and disqualifies anyone who has been in government service in the previous two years. 

5)  The process for removal of Lok Pal members is different. The government Bill permits the president to make a reference to the Supreme Court for an inquiry, followed by removal if the member is found to be biased or corrupt. The reference may be made by the president (a) on his own, (a) on a petition signed by 100 MPs or (c) on a petition by a citizen if the President is then satisfied that it should be referred. The President may also remove any member for insolvency, infirmity of mind or body, or engaging in paid employment.

The JLP has a different process. The process starts with a complaint by any person to the Supreme Court. If the court finds misbehaviour, infirmity of mind or body, insolvency or paid employment, it may recommend his removal to the President. 

6)   The offences covered by the bills vary. The government Bill deals only with offences under the Prevention of Corruption Act. The JLP, in addition, includes offences by public servants under the Indian Penal Code, victimization of whistleblowers and repeated violation of citizen's charter.

7) The government Bill provides for an investigation wing under the Lok Pal. The JLP states that the CBI will be under the Lok Pal while investigating corruption cases.

8) The government Bill provides for a prosecution wing of the Lok Pal. In the JLP, the CBI's prosecution wing will conduct this function.

9) The process for prosecution is different. In the government Bill, the Lok Pal may initiate prosecution in a special court. A copy of the report is to be sent to the competent authority. No prior sanction is required. In the JLP, prosecution of the Prime Minister, ministers, MPs and judges of Supreme Court and high courts may be initiated only with the permission of a 7-judge bench of the Lok Pal.

10) The JLP deals with grievance redressal of citizens, in addition to the process for prosecuting corruption cases. It requires every public authority to publish citizen's charters listing its commitments to citizens. The government Bill does not deal with grievance redressal.

Given the widespread media coverage and public discussions, it is important that citizens understand the differences and nuances. This may be a good opportunity to enact a law which includes the better provisions of each of these two bills. 

Inspired from :  MR Madhavan, PRS Legislative Research, Lok Pal Bill