The USD is at fixed rates against many Middle East currencies, so as the dollar depreciates, so also does their remittances back to Goa.
Excerpt:- History further reveals how costly inflation reduction can be. To curb price increases in the late 1970s and early 1980s, Paul Volcker's Fed raised interest rates above 20 percent. These stratospheric rates ultimately brought inflation down to earth, but only after precipitating painful recessions in 1979-80 and 1981-82. Before Volcker's anti-inflation policy kicked in, the unemployment rate in America stood at 5.8 percent; by the end of the second recession, unemployment was up to 10.7 percent. And joblessness did not drop back below 6 percent (its historical average) until 1987. The total cost of this abnormally high unemployment and the idle capacity it bred has been estimated by most analysts at more than a trillion dollars. http://www.pkarchive.org/economy/NoInflationBad.html Yes USD interest rates touched 23 percent for one year money, during that period. Credit was so tight, the FED turned down money Centre banks from approaching the FED window for funds more than once a month. The Fed is now doing the exact opposite; very shortly it will own all the mortgages which Financial Institutions will park at their door. Houses in Detroit are on sale for USD100. yes no joke USD100.00......check it out:- http://www.realtor.com/search/searchresults.aspx?ctid=2959&mxp=2&typ=7 In Toledo Ohio they are giving them away, for free, Check it out :- http://www.realtor.com/search/searchresults.aspx?ctid=4180&ml=3&mxp=29&typ=7&sid=b64c3b8d81624f8eb141b574a94bf7f9&pg=1 The USD is being tanked out, the credit crunch is getting worse instead of better; hold on to your hats....for the first time George Bush is admitting that 'it's not good news' -- DEV BOREM KORUM. Gabe Menezes. London, England
