I am living in India while getting my income from the USA.
There does not seem to be any rhyme or reason to the current exchange rate
between the USA and India. The Indian economy, while suffering the effects of
the worldwide recession is still in good shape. I cannot imagine the rupee
sinking much further. I will stash some
funds in rupees while the dollar is strong as a hedge against the dollar
sinking, which is
inevitable.
As for the US Economy and the US Treasury collapsing, this is wishful thinking
on Merwyn's part. There are just too many countries with a stake in propping
up the US
dollar and the US Economy to let that happen The fundamentals of the US
Economy are still strong. The USA will weather this storm and come out
stronger (sound like Obama dont I ?)/ But the people of the USA needed this
reality check. The freewheeling and free spending days are a thing of the
past. Most folks in the USA, except perhaps those in the Medical field (for
now) are hurting badly. They will learn a lesson from this Depression.
It is a Depression regardless of when the financial gurus reluctantly call it
that.
After hitching their hopes to a strong American economy, the world including
Canada, will have no one else to turn to. The Chinese, despite their current
surfeit of dollars, have their own problems as their factories become idle with
slackening world demand, and a growing unemployment.
I predict that India will slowly but surely grow into an Economic powerhouse,
with its brains,
its entrepreneurial spirit and relatively younger population. Some folks know
that and are trying to derail India with terror attacks, but India will
overcome these pinpricks and emerge stronger.
