Dear Mervyn I dont think you have to fear that your article in not Goa centric as most goans who are on the goanet are NRI's and hence what you have written does affect all.
Thanks for writing this at least the NRIs can know where their dollar will take them. I was wondering why the countries which peg their currency to a dollar dont switch to Gold, as that will keep on rising and hence mostly gulf based NRI's will have nothing to worry whether dollar falls or sinks. Cheers Jerry Fernandes >Folks, >I am writing this because I have been requested to. I will be brief as I can >because I am not sure this topic will be "allowed" since it is not Goa >centric. It may be of use to dollar earning Goans though. > >The main objective of European Central Bank is to curtail inflation. >The US Fed had until recently, two objectives: >1) Curtail inflation >2) Stimulate the economy. > >Last week, the US Fed switched its priority to supporting stock prices. The >actions it took were mainly to stop the stock prices of US financial >institutions from collapsing. This action may work in the short term. In the >long term, the US dollar will fall in value. Drastically. > >When you lower interest rates in your country, you are effectively devaluing >your currency.The US bond market is currently pricing ANOTHER 100 basis point >drop in interest rates. This will come within the next six weeks. When the Fed >announces the same, the US dollar will drop in value and gold, priced in US >dollars, will go up. This will lead to a vicious circle. > >Quite simply, no one can build a strong economy on a weak currency. If this >were possible, Tanzania would have one of the strongest economies in the world. > >Last year, gold bullion priced in US dollars, went up 50%. The reasons it did >so are numerous but mainly because the US stopped publishing how much currency >it is printing daily. This year, the world is catching on how much bad debt US >financial institutions have. Bonds, of all things, are becoming worthless. > >My parents generation were stunned on how much the Great Britain Pound >depreciated in a few years. What you are going to witness now, is the very >same show with the US dollar. > >Finally, last week, OPEC announced that it is looking to price oil in Euro's. >The folks who have US currency coming out of their years are beginning to >realize they are actually losing money by holding US dollars. > >Mervyn3.0 >
