How India got screwed by U.S for the fall of rupee

[Kiss_of_the_Dragon]

The US Federal reserve "hinted" that they may stop their easy-money policy in the next few months.
Right afterwards, the Rupee collapsed.

It's not rocket science. The hint from the Federal reserve led to FDI being pulled out of the developing world and back into the USA.

Who suffers? The countries that are reliant on foreign inflows to finance their current account deficits. India was the biggest loser, simply because India has by far the largest current account deficit and fiscal deficit in the developing world.

Americans must know who is suppose to be the biggest loser before issue such financial "hinted", if U.S really care about India, it could have use a better way to avoid any desaster to India's rupee.

 

[Chinese-Dragon]

Americans must know who is suppose to be the biggest loser before issue such financial "hinted", if U.S really care about India, it could have use a better way to avoid any desaster to India's rupee.

Of course they knew, and of course they don't care.

The irony is that Indians here are always boasting that "India's economy is not as vulnerable to external conditions as China's economy is".

LOL, and with just one "hint" from the US Federal reserve, the Indian currency (as well as growth/manufacturing/deficit/etc) all came crashing down.

 

[Coltsfan]

Of course they knew, and of course they don't care.

The irony is that Indians here are always boasting that "India's economy is not as vulnerable to external conditions as China's economy is".

LOL, and with just one "hint" from the US Federal reserve, the Indian currency (as well as growth/manufacturing/deficit/etc) all came crashing down.

Only an idiot would believe that any major economy is immune to ramifications of changes in US fiscal policies

 

[Chinese-Dragon]

Only an idiot would believe that any major economy is immune to ramifications of changes in US fiscal policies

Oh I agree.

Which is why so many Indians were surprised that it turned out to be India who was the most vulnerable.

Meanwhile, the Chinese Yuan is reaching record highs, and our manufacturing/exports/imports are all going up.

BBC News - Chinese yuan reaches record high against US dollar

Why? Because we are not dependent on foreign inflows to finance our current account deficit.

Because of course, we don't have a current account deficit. We have a surplus.

 

[Kiss_of_the_Dragon]

I'm still interest on what the reall economical damage done to India from U.S federal reserve hint. When China and India were at front knifes throwing, India has never expect to receive a knife from behind or some other to backstab it.

Well at least someone has done China a favor...we have clean hands on India's rupee affaire, Indi Chini bye bye

 

[Chinese-Dragon]

I'm still interest on what the reall economical damage done to India from U.S federal reserve hint. When China and India were at front knifes throwing, India has never expect to receive a knife from behind or some other to backstab it.

Well at least someone has done China a favor...we have clean hands on India's rupee affaire, Indi Chini bye bye

We don't really have clean hands on India's Rupee affair.

Because most of India's massive trade deficit is owed to China.

And the massive trade deficit is one of the major reasons why nobody has faith in the Rupee anymore.

 

[Kiss_of_the_Dragon]

We don't really have clean hands on India's Rupee affair.

Because most of India's massive trade deficit is owed to China.

Nooooooooo...how dare we did such thing to peace loving Indians, we evil chineses

 

[Chinese-Dragon]

Nooooooooo...how dare we did such thing to peace loving Indians, we evil chineses

Every time an Indian says "cheap Chinese goods", then I just remind them that it is those same Chinese goods which are bankrupting them.

And it is those same Chinese goods that are giving them by far the worst trade deficit in the developing world. Which is a primary factor in the collapse of the Rupee.

So we have the last laugh.

 

[Nan Yang]

What would be US motive behind "pulling the plug" on India's economy?

I know you're not an economist, so feel free to speculate!

India has never been a serious threat to our interests. Why would we want to destroy India?

It's greed.

During the 1998 Asian Financial crisis. US funds managers sucks billions from poor 3rd world countries to enrich the lifestyle of rich Americans.

Looks like they play the same trick on India. Just follow the money and you will find your answer.

 

[rcrmj]

after the financial crisis China's industrial output is 126% of America's
and China's high tech exports are more than Germany, Japan and France combined together

and the during the very same period, India's economy actually shrunk in nominal term
and its Rupee enjoys the sensation of historical free fall

reality proves again and again, that its economy is still at factor driven primitive stage and at lowest food chain of world economy

 

[jetti]

Every time an Indian says "cheap Chinese goods", then I just remind them that it is those same Chinese goods which are bankrupting them.

And it is those same Chinese goods that are giving them by far the worst trade deficit in the developing world. Which is a primary factor in the collapse of the Rupee.

So we have the last laugh.

Are you sure the game is over to call your laugh the last laugh?

 

[Chinese-Dragon]

Are you sure the game is over to call your laugh the last laugh?

Last laugh is just a saying, I'm sure there will be many more laughs and other such emotions in the future.

 

[jetti]

Last laugh is just a saying, I'm sure there will be many more laughs and other such emotions in the future.

So Indians were happy that they were doing well and now that there is trouble in the economy I guess it makes you happy.
Well the wheels will turn again in the not too distant future because this game will be played for a long time.

 

[Truth Finder]

India's present economic hiccup is MADE IN INDIA. Finance Minister had accepted it and declared 10 point strategy in the Parliament to restore normalcy. Do not blame others for your slumber. So, why this garbage report???

 

[jetti]

If the guys are thinking that rupee fell because of Fed comment they are way off the mark. there are structural imbalances which need rectification and Fed comment can at the most be called a trigger. The CAD alone is not enough to warrant such a fall. malaysia which has a surplus saw its currency fall 10% or more (correct me with the right number).Yuan will not fall because it is artificially kept low. India needs policy changes and being a democracy it will surely come with time.