However, there may be other problems that may be far more imperative, such as the news of the economy slowing down. The slow down of economic growth in India was announced recently.

The Reserve Bank of India, the central bank of the country has given a warning that may seem pretty blunt – growth of the Indian economy could slow down to less than 8 per cent. The news was released on Thurs, when the Indian government was in negotiation with Anna Hazare, the fasting anti corruption activist.

A growth rate of 7 per cent would still be considered good for most countries, but for India, the case is pretty different. Prior to the financial crisis of 2008, the country was striding at a growth rate of 9 per cent. The numbers hit 8.5 last year. The news of the slowdown to less than 8 per cent is a letdown that is quite significant. A slowdown in growth would mean all the bad things – fewer Indians getting out of poverty, and greater social unrest spurred.

Globally the slowdown could mean another set back to the world economy at large, since growing markets like China and India are being increasingly depended on to compensate the stagnation in the west.

The price of corn is another commodity that dropped on the heels of the silver price. The corn price has dropped steadily as shown by the statistics of price chart. On Monday, the price of corn fell by 2.9 % and it dropped again by 1.5 % on Tuesday. Since corn is a major food for the cattle, the price of beef will soon drop. Other commodities that have dropped are wheat price and the soybean price, which had hit record high recently. As the cotton prices start sinking the clothes will be cheaper than before.

There are countless reasons for the sinking of commodity prices and the weather related causes seem to boost the crop production. The crop production in America is expected to be strong this time and the drought that plagues China for long has come to an end. Economists have also cited the drop in demand in the commodity based products as the there can be growth slowdown worldwide. The frail demand coming from Japan and Europe will make the manufacturing industry falter leading the manufactured commodities face the slowdown in prices.

However, the discretionary spending in the US can gear up the price of commodities but the possibility of this situation is less.

Stores such as, Victoria’s Secret and Costco Wholesale Corp., offer retail sale figures that have outperformed the anticipation of Wall Street. The revenue generated is quite high in these stores while Target Corp. generated revenue that is slightly lower than the anticipated figure of Wall Street. Nothing as serious as oil price can keep consumers at the bay.

The retail figures show the figure of a year and there have been dips and bumps in the figures but the retail figure of March shows a rise. Analysts are expecting that this rise of sale is triggered by the sudden addition of jobs in US. The influence of jobs is conformed by the fact that consumers raised their concern over the rise in inflation when they were surveyed by the Consumer’s Board during March. Consumers complained about the stagnant income and it is a proof that their spending was harmed during that period. Retailers during this period also showed a drop in their sales. However, the figures gathered after that shows a straight jacking of the consumer spending.

Increasing the purchasing poser is a good way to bring the economy back in tune as per the theory of economics. In case the US is following the same, then we can hope to have good times soon.

It took not more than squat to push up the share prices of Tesla in the stock market by 20%. The raised price stood at $ 28.51whereas the company is hoping to take the level till $70 at the year ending. Although the investors are still wary of the performance of Tesla in the market yet Morgan Stanley’s report places it at the helm and predicts that the Tesla cars will constitute 7% sales of US cars by the year 2020. The predictions are surely based on logical findings.

To ignite the dilemma of investors of Tesla shares further, director of Auto Pacific has commented a little passively about Tesla. He believes that Tesla is yet to develop itself to give tough competition in the automobile market and that the present praising is simple exaggeration.

However, considering the present economic scenario where the oil prices refuses to zip south, government will certainly encourage an alternative like electric vehicle. This is a good reason why investors can bank on the shares of Tesla.

The current economic circumstance speaks of finding ways to bring about economic recovery. And recovery doesn’t limits into the high profits of corporate giants. Economic recovery also defines hiring of middle class people. Hence the budget should look forward to provisions that can increase the employment within the country.

Moreover the current budget talks seem to take no interest in addressing to the issues like spending on defense. Although Democrats have taken a little step for the overall benefit of the citizens by including Medicare in the budget cut proposals.

But the time now in US is perfect to take efforts that can bring overall benefit for the country. It isn’t a time to decide anymore abut government spending and how to give way for the corporate giants to make more money. If only the government realizes it!

Although the recent focus on Japan has made the economy stricken with several dangers yet the country was not is a very safe position before this catastrophe if we consider the financial position. During the recession of 2008 Japan was highly affected and just before the tsunami it was suffering from unemployment and high public debt.

A seismically active place Japan is always well known for its ability to cope up with earthquakes. It is popular for its quick reactions in natural crisis like earthquake. There had been manifold problems in Japan like food crisis, rolling power cut because of shortage of electricity, transport problem as all roads and flyover are damaged beyond use. Additionally one more trouble is looms on Japan and that is the drop in tourism flows. Due to the recent natural disaster the people are canceling their trip to Japan. A huge number of people are getting replaced from the country to their homeland and even Japanese people are shifting off from Osaka. The damages to property are high and thus the infrastructure of Japan has suffered a great loss. Some of the popular airlines like Lufthansa, Air China etc have already cancelled their flights. Moreover the hotels, which are internationally scalable are bring down their rates to woe tourists. The tour operators have also cut their charges but almost 50%.

In general the country is about face a major set back in tourism revenue in near future.

The ravage brought about by the tsunami and earthquake has caused massive repatriation of Indian employees working in Infosys, Japan. About 200 or more Indian employees have returned to their homeland and the rest of the staff of Infosys that includes local Japanese have been permitted to work from home or from the Osaka office of Infosys. This seems that the company, by any means will not stop its business as is said in Theatre that the show must go on. As per the recent statement of Infosys COO, Shibulal, the business of the software company will not shut down whatsoever the constraints are. He has clearly stated that the company business process will not be hampered as the employees all over India and also few in Japan will keep working to boost the development of business.

The recent crisis in Japan did not affect much of Infosys which has almost 400 employees working within the boundaries of Japan. The employees have been shifted from the affected area and the impact of the crisis on the company’s business is expected to be 1% of its revenue.  However, the company’s CEO seemed a little dubious about the effect of nuclear meltdown over its business. As per the CEO S Gopalakrishnan, it is not the time when the effect can be measured accurately, although the meltdown is supposed to affect the business indirectly.

This massive figure of budget deficit is expected to cut the tax revenue of the government and government officials are asked to spend funds for stimulating the economy. There is a separate report of Commerce that hints that the figure noted in February is not the highest one. As per the Commerce report the highest deficit was attained in the month of January. The reason behind it has been expected to the soaring oil prices that made the imports in US costlier than before.

The increase in the budget deficit calls for several vile factors to operate within the economy. As the deficit raises the interest rate and inflation is also expected to shoot up. The effect in the log –run can be devastating as the financing required because of budget deficit will take the form of increased taxation. This will eventually fall on the shoulders of American citizens who will have bear the burnt of this budget deficit. Beware Americans, government will scoop out the income of your kids finally.

The present overturned financial condition across the globe has caused great unrest in the stock market of US. Eminent figures in financial market of US such as Thomas Villalta, a portfolio manager of Jones Villalta Asset Management in Austin, predicts that the present political uproar in Saudi Arabia and the highly devastating natural calamity in Japan will probably be translated to a new recession very soon.  Although he predicted a dodgy economic scenario yet he seemed hopeful about the political situation of Saudi Arabia to be not as harmful as predicted.

The upsurge in the oil prices in US has also put additional responsibility on the government to dampen its effect on the economy. The corrective measures by Federal Reserve in this regard will make the investors adjust their strategies accordingly. The US Central bank has presently not shown any intention of raising the interest rate and are planning to keep it as low as nearing to zero.

Social spending means the money earmarked for the various welfare schemes by the government to eradicate illiteracy, unemployment and other social evils. Spending was increased for the benefit of education, rural employment, food programs, and agriculture. The poor and rural masses form the large percentage of the country’s population, and are also the core support group for the Congress Party in India.

Social Spending will constitute close to thirty six per cent of the total budget. Pranab Mukherjee also promised to set up a number of measures that will assist in reducing food inflation. Food inflation is causing enormous discontent in India since the last few months. The 11.5 per cent rate of food inflation means hardship for the already impoverished masses.

The long awaited food security bill is another welcome measure. The bill guarantees food for low income families at subsidized rates. This measure, if it is carried out, will be of enormous help to the rural poor.

Mr. Mukherjee also stated that while inflation remains a gnawing concern, he expects the policies implemented by the Reserve Bank of India (RBI) to be of considerable help in moderating inflation. He also expects inflation to be lower on average in the coming year.

The money devoted for social spending will come from the rising tax revenues. India’s fast powered economy will provide an almost twenty five per cent of increased tax revenues. In addition, new taxes have been introduced in air travel and hotel accommodation.

Rapid economic growth is expected in the next fiscal year; “double digit growth” in Mukherjee’s words. The economy expanded by 8.6 per cent in the year gone by, while a nine per cent expansion is forecasted for next year.

A number of state firms are being privatized in part, which is expected swell the assets of the government by Rs. 400 billion. This will mean that the public deficit of 5.1 per cent of the Gross Domestic Product will be reduced by 4.6 per cent in the coming year.

In addition there have been measures to ease the red tape, streamline customs tariffs and taxation.

The military spending has been hiked yet again this year, an 11.6 per cent rise to the total of Rs 1.65 trillion.

The minister also announced steps designed to attract increased investment from foreign sources for infrastructural development. The limit that was set for foreign investment in corporate infrastructure bonds has been increased five fold. India has many power plants, roads, ports and other infrastructure in dire need of development.

On the back of the budget, Shares in India saw a notable jump of 2.23 per cent, which amounts to 412.04 points. The reduction of the fiscal deficit was seen as a step in the right direction.