India Daily- "Best Investments" for next 10 years

[bwhhisc]

QUOTE: Best investments for the next ten years –
Domain Names, Farm Land and Cash in the Bank

http://www.indiadaily.com/editorial/15423.asp

[Rubber Duck]

QUOTE: Best investments for the next ten years –
Domain Names, Farm Land and Cash in the Bank

http://www.indiadaily.com/editorial/15423.asp

Looks like an Adsense site to me. Seemed to be written from a US rather than an Indian perspective with the references S&P. Probably written by a domainer that knows nothing about economics, which is why it is attributed to "Special Correspondent"

[bwhhisc]

Looks like an Adsense site to me. Seemed to be written from a US rather than an Indian perspective with the references S&P. Probably written by a domainer that knows nothing about economics, which is why it is attributed to "Special Correspondent"

And seems their publication can't afford a proofreader on staff either "Socks will go down". lol

[markits]

No comments. :)

[touchring]

Farm Land

Are farm lands really that lucrative in America??

[Rubber Duck]

Stupid me. I have just realised that when Americans talk about Indian, it has got nothing to do with the rising economic superpower. No wonder they keep telling me they all speak English.

[bwhhisc]

Stupid me. I have just realised that when Americans talk about Indian, it has got nothing to do with the rising economic superpower. No wonder they keep telling me they all speak English.

LOL What makes you think he is American? I guess we would best be described as the Heinz 57 melting pot of all the worlds gene pools. Well I guess the "if it all goes south" comment might give him away.

I assumed he was referring to farm land in India!

[Rubber Duck]

Well assuming for a moment that he is not talking about the Reservations, and trying to neglect that fact that most of the advertising on the site is aimed at the US market, his arguments are pitiful.

He clearly recognises the fact that there is a supply and demand relationship. His optimism about oil though is even less founded in reality that Bushes own view. Yes, more oil reserves will come on stream, but there is undoubtedly concern that as there is expansion in developing nations that the relationship between supply and demand will come under pressure like never before.

His presumption that there will be double digit contraction in China and India seems a little far fetched. If that is to occur it would require a total implusion of the US economy or total isolation, which would effectively quickly have exactly the same result.

China and Indian consumptions of oil are still much much smaller than the US, even though much of the Worlds primary manufacturing is shifting to those locations. The US is the one place on Earth that consumes by far the most oil for the least material benefit. The US needs to reduce oil consumption urgently, but even if it achieved its limited goals it is unlikely to have a dramatic impact as demand elsewhere is rising rapidly.

Industrialisation in India will mean a very significant migration of people from the countryside to the towns. This will tend to mean that land is grouped and farmed in bigger units using more mechanised processes. It is hard to say whether in the short-term that will lead to increase in land values. As the required production of food is increasing achieved on a smaller and smaller percentage of the total land, and fewer people are looking to owning small holding to make a living, land prices might actually drop. The certainly will not rise at the speed of land required for building to house the exponential rise in the populations of the major cities.

In terms of taxation, the Federal Government will almost certainly tax items that are able to sustain that taxation. They are unlikely to tax residential development to the point where it comes to a grinding halt as that would be totally counter productive. The fact that there is no tax on agricultural land suggests that there is little leeway to do that due the lack of margin in agricultural production.

His assumptions about the increases of prices in staple foods seems a little odd. As improved agricultural methods increase yeilds and therefore supply, his supply and demand theory hardly supports a fourfold increase in prices. The converse is more likely to be true.

Anyway, if any of you have any of those Anglicised dot IN that will mean nothing to most people on the subcontinent, and are likely to be worthless due to the advent of IDN, you might just have found a suitable mug to off-load them onto!

[touchring]

I assumed he was referring to farm land in India!


Warren Buffet has something to say about farmlands:

http://www.intelligentinvestorclub.com/downloads/Warren-Buffett-University-Georgia.pdf

Sunday, February 04, 2007
Q&A Session with University of Georgia Students

[Wot]

And seems their publication can't afford a proofreader on staff either "Socks will go down". lol


And when It rains buy umbrellas - they are sure to go up. :)