by frog
For me this is a sign of the times – a non-western bank, India’s third largest, setting up shop in New Zealand. The Bank of Baroda has formally registered with the Reserve Bank.
The Bank of Baroda is state owned and has branches in 25 other countries, often those with a Gujarati diaspora.
To me this says more about the shift in global financial power further west – so far west that it’s now the East. With China and India the prime recipients of all the cash/growth created during the credit bubble of the last two decades, both are poised to become self sufficient economically with their own burgeoning middle class.
To my eyes, this is a replay of the consumption bubble of the ’20s, where English domination of the global markets was eclipsed by the manufacturing might and growing middle class of the United States, but only after the bubble burst and the real wealth of the US economy was revealed. (And a particularly nasty depression)
The great US banks are still teetering. When the dust settles on our current economic crisis, will New York become the new London, (the old money), while Beijing/New Delhi becomes the new New York?
Is the global centre of power moving to the East?
Published in Environment & Resource Management by frog on Tue, September 1st, 2009
Tags: banking, Reserve Bank
on the trolls and those who are unable to keep on topic
“..will New York become the new London..”
or the new dystopia..
or it could quite likely be under water..
..so it may be more when/where that water ‘settles’..
..rather than any ‘dust’..
phil(whoar.co.nz)
Like or Dislike:
0 
0 (0)
Nice one phil!
Like or Dislike:
0 
0 (0)
I was making a similar point, albeit with a touch of sarcasm, over at Kiwiblog, Phil. Some of the racists and climate change deniers in the troll farm got a wee bit upset.
Like or Dislike:
0 
0 (0)
Rupee!
Like or Dislike:
0 
0 (0)
Not as good as the “bank of barunda” I am starting it soon
Like or Dislike:
0 
0 (0)
Drama queen!
Like or Dislike:
0 
0 (0)
“Is the global centre of power moving to the east?”
I think that has been predicted for some time.
Toad if you want any back-up on troll farm please let me know.
Like or Dislike:
0 
0 (0)
Just as National Ltd are trying to tell us the company tax rate is too high to attract new business in strolls a whole new bank. Pity it wasn’t an industry that actually produces wealth rather than another derivatives casino. I guess they are lining up to grab a slice of Fonterra.
Its going to be interesting when China starts calling in its markers from the US. The fact that the American economy cannot survive unless it has a war to supply is worrying.
Like or Dislike:
0 
0 (0)
No no the big banks are sitting on a very solid foundation of taxpayer cash backing and the big investment houses are running the government for their exclusive benefit. Wealth is being protected. Everyone else is being ground into the dirt.
India is going broke because it is out of water… which means large problems with food as well.
This bank is here because it expects to make money here. THINK about that in terms of how our balance of trade is affected by our monetary and investment policies. They think they can make money and transfer it to India. Not dummies, they are probably right. This country is so “innovative” in its approach to banking that it has turned into a self-shearing sheep.
BJ
Like or Dislike:
0 
0 (0)
I spat herbal tea all down my front when I read this! Where is your evidence that China and India have been the prime recipients of all the cash/growth created during the credit bubble ? I do not think so! The west keeps the lions share of the wealth it creates. I have not checked but I suspect that China is an important *source* for the cash that fuelled the bubble.
peace
W
Like or Dislike:
0 
0 (0)
Where is your evidence? I accept the India may be having serious droughts, but “going broke”? I doubt it.
But if you have evidence I would like to see it.
peace
W
Like or Dislike:
0 
0 (0)
bliss says:
September 2, 2009 at 4:21 pm
>> India is going broke because it is out of water…
> Where is your evidence? I accept the India may be having serious droughts, but “going broke”? I doubt it.
they can’t go broke because of the droughts, because the people being affected by the droughts aren’t the ones with the money.
Like or Dislike:
0 
0 (0)
Google is your friend http://www.google.co.nz/search?q=india+economic+impacts+water+shortage&ie=utf-8&oe=utf-8&aq=t&rls=com.ubuntu:en-US:unofficial&client=firefox-a
Like or Dislike:
0 
0 (0)
I suggest you check
http://en.wikipedia.org/wiki/Foreign_exchange_reserves#Levels
China has a huge pile o cash that they earned from selling cheap plastic trash to the west
Like or Dislike:
0 
0 (0)
And how has China dumped a load of cheap plastic goods on us?
Cheap labour, probably slave labour.
Certainly not a egalitarian communism, is it?
The same with India except India is probably more open about it’s exploitation of cheap labour.
We need to support the workers struggle for better pay in those countries
Like or Dislike:
0 
0 (0)
Kahikatea
This is the must-buy season for their Gold market and they ain’t buying.
I picked this up in the past few days, and the market professionals are pointing to the unexpectedly weak (significantly worse than the price alone would predict) demand recently.
That’s my story and I’m sticking with it.
BJ
Like or Dislike:
0 
0 (0)
http://www.newscientist.com/article/dn17620-indias-thirsty-farms-drain-rocks-dry.html
Like or Dislike:
0 
0 (0)