War chests....
Ravi says the governments love to export and they hate to import - contrary to the “voice of public interest”. He also talks how, China may take the US down if it continues to compromise its "slave labourers".
Exports use domestic production to get money into a country... I can’t question a government doing that. Of late US has been consuming products from all over the world without producing much. The governments across the world are indeed happy... World produces and America consumes... money keeps flowing out of the US. The Americans are listening to the voice of their public interest... so it seems. Their deficient is high, and the interest rates are rising. My bet is, they would want to devalue their currency, to help their exports, and the Chinese and the EU will try to keep it high. Hard to say who will win, but the fall may indeed not be as hard as you might want. Add to that, there are already predictions that US dollar may not be the world’s reserve currency for very long.
So, again coming from the above, imports may also not be a very good idea... no matter what the public voice of interest say. India is sitting on 140 billion dollars hoping it might be good enough to bail itself out in contingency. That is what worries me the most. If the dollar continues to fall, it will not help Indian exporters, and devalue the cash reserves. We might want to continue growing our exports, and use the export earnings to invest into the economy and infrastructure. Imports for consumer consumption, is definitely a bad idea for India.
As far as the Chinese are concerned, the current scenario will definitely not continue for very long. But so will the rest of the world equations. As much as we all hope, that China’s capitalist practices will result in a internal revolt causing the fall of the Chinese dragon... we need to learn from our history. The bad face of Capitalism never survived... and the economies fared out to be much stronger than ever before, with socialist outlook. I think, one of these days, Chinese will realize that they have enough money to start investing in its people. Give them more freedom and money, and become an even stronger nation with happy estate.
Exports use domestic production to get money into a country... I can’t question a government doing that. Of late US has been consuming products from all over the world without producing much. The governments across the world are indeed happy... World produces and America consumes... money keeps flowing out of the US. The Americans are listening to the voice of their public interest... so it seems. Their deficient is high, and the interest rates are rising. My bet is, they would want to devalue their currency, to help their exports, and the Chinese and the EU will try to keep it high. Hard to say who will win, but the fall may indeed not be as hard as you might want. Add to that, there are already predictions that US dollar may not be the world’s reserve currency for very long.
So, again coming from the above, imports may also not be a very good idea... no matter what the public voice of interest say. India is sitting on 140 billion dollars hoping it might be good enough to bail itself out in contingency. That is what worries me the most. If the dollar continues to fall, it will not help Indian exporters, and devalue the cash reserves. We might want to continue growing our exports, and use the export earnings to invest into the economy and infrastructure. Imports for consumer consumption, is definitely a bad idea for India.
As far as the Chinese are concerned, the current scenario will definitely not continue for very long. But so will the rest of the world equations. As much as we all hope, that China’s capitalist practices will result in a internal revolt causing the fall of the Chinese dragon... we need to learn from our history. The bad face of Capitalism never survived... and the economies fared out to be much stronger than ever before, with socialist outlook. I think, one of these days, Chinese will realize that they have enough money to start investing in its people. Give them more freedom and money, and become an even stronger nation with happy estate.
posted by Ash at 5:31 PM
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