Real story of American Dollar v/s Indian Rupee

[MM_Haider]

you dont buy dollars in exchange of Indian rupee, what will fed do with your indian rupee??
you earn dollars by selling your goods in exchange of dollars and then you pay in dollars what you buy from other countries including petro. so if you are buying more than selling your currency will reduce in value via-a-vis dollars

it is not really like this.. you have to buy the goods from foreign in dollars and sometimes on debt. here starts the actual story. you buy a barrel for 100$ on debt . The next month when you have to pay, the bank asks you to pay back 100.5$. where are you getting this 0.5$? then you have to buy more $s from US .. demand increases, supply reduces.

The real story is here:... spend sometime to watch for actual insight how the world is in chaos because of the interest ..

 

[xyxmt]

it is not really like this.. you have to buy the goods from foreign in dollars and sometimes on debt. here starts the actual story. you buy a barrel for 100$ on debt . The next month when you have to pay, the bank asks you to pay back 100.5$. where are you getting this 0.5$? then you have to buy more $s from US .. demand increases, supply reduces.

The real story is here:... spend sometime to watch for actual insight how the world is in chaos because of the interest ..

those are not interest but service charges, no organization in the world will give you free services
you get a car on lease you pay service charges, interest is what you pay on credit cards that breaks your back

 

[MM_Haider]

those are not interest but service charges, no organization in the world will give you free services
you get a car on lease you pay service charges, interest is what you pay on credit cards that breaks your back

who told you this? whatever you get from bank they charge you interest.. i am not talking about nomenclature .. you have to pay such money back as not been circulated in the open market. This is what all the banking system in the world is doing in the form of Fractional Reserve Banking where the total amount lent out becomes way more than actual deposit. This is based on the theory that not all the consumers will come back to withdraw all the amount. When this happens banking system shall collapse.. paper loses its value hence.

Fractional reserve banking - Wikipedia, the free encyclopedia

 

[Ayush]

India Shares End Lower, Rupee Hits New Low - WSJ.com


1.I/Re going to hit the century sooner than later. Shows how hollow the Indian economy is from the inside. Blasts from the Indian media about the prowess of India's economy has its limit. Just Google and see India's economy compared to Pakistan's pre-65 and again pre-71. That's the real picture. It is quite possible the wars were initiated to ruin Pakistan's ascending economy.

2. Btw, B/Taka is now 75 to the Dollar. With these present crooks gone in a few months, we will harness smuggling and flight of capital. We will curtail graft. Our currency should then be stronger than India's.

India Shares End Lower, Rupee Hits New Low - WSJ.com

so,this is what you learn..

 

[sasi]

Guys any of u seen the cartoon video of PM & FM in India today abt ruppee slide!
Don't know wht to say!

 

[surya kiran]

1. Countries no longer follow the gold standard.
2. If you want to exchange dollar for gold, you can buy it in the commodities spot market. Sell the dollar and buy gold. This is called hedging against the dollar.
3. Its a question of demand and supply. Do people want the dollar more or rupee more?
4. The current crisis is due to problems at the fundamental level. We have always been consuming gas and gold. Does this mean, this thing was not envisaged?
5. Stupid article written by a wannabe economist who's actual credentials are in "international education and culture". Seriously .

 

[asad71]

The funny thing is that Manmohan Singh is a highly intelligent economist, so he obviously knows what is the "right" thing to do for the long term health of the Indian economy.

But there is a big difference between knowing the right thing to do, and having the political will to do it.

Get the Indian government to stop chaining Manmohan Singh's hands with political games, and give him a full mandate to fix India's economy with structural reforms, without worrying about vote banks or the coming election. Then he can fix it.

MMS was carefully planted as Finance Minister by WB / capitalist lobby. He has veered India away from the Gandhi-Nehru model of socialist welfare system. And the result is not only mess but creation of dollar billionaires. But the masses pay the price. India holds the largest number of poor in the world - more than all the poor in Africa added together.

 

[Icewolf]

If Indias richest man loses 6 billion out of his 17.5 billion wealth, then you can already tell what common middle class man is going through in India...

There is gonna be a larger immigration out of India this year... I expect it to hit 5 million Indians who line up at Middle eastern countries, European countries to get visa

 

[American Pakistani]

It just hit 64-65 & indians are crying...look at Pakistanis calm & quiet even when 1US$=107PKR.

 

[makelove_notwar]

Coz you guys have learned to live with it. Don't do that. Come out and make things better, at least try to.

 

[eastwatch]

An Advice to all who are worrying about fall of Indian Rupee

Throughout the country please stop using cars except for emergency for only seven days (Just 7 days)
Definitely Dollar rate will come down. This is true. The value to dollar is given by petrol only.This is called Derivative Trading. America has stopped valuing its Dollar with Gold 70 years ago.

Americans understood that Petrol is equally valuable as Gold so they made Agreement with all the Middle East countries to sell petrol in Dollars only. That is why Americans print their Dollar as legal tender for debts. This mean if you don't like their American Dollar and go to their Governor and ask for repayment in form of Gold,as in India they won't give you Gold.

You observe Indian Rupee, " I promise to pay the bearer..." is clearly printed along with the signature of Reserve Bank Governor. This mean, if you don't like Indian Rupee and ask for repayment,Reserve Bank of India will pay you back an equal value of gold.(Actually there may be minor differences in the Transaction dealing rules, but for easy comprehension I am explaining this)

Let us see an example. Indian petroleum minister goes to Middle East country to purchase petrol, the Middle East petrol bunk people will say that liter petrol is one Dollar.
But Indians won't have dollars. They have Indian Rupees. So what to do now? So That Indian Minister will ask America to give Dollars. American Federal Reserve will give us dollars by taking Indian Rupees ( according to exchange rate ) , print Dollars on it and give it to the Indian Minister. Like this we get dollars , pay it to petrol bunks and buy petrol.

But there is a something wrong here. If you change your mind and want to give back the Dollars to America we can't demand them to pay Gold in return for the Dollars. They will say " Have we promised to return something back to you? Haven't you checked the Dollar ? We clearly printed on the Dollar that it is Debt"
So, Americans don't need any Gold with them to print Dollars.

But what will Americans give to the Middle East countries for selling petrol in Dollars only?

Middle East kings pay rent to America for protecting their kings and heirs. Similarly they are still paying back the Debt to America for constructing Roads and Buildings in their countries.

At present the problem of India is the result of buying those American Dollars. So if we reduce the consumption of petrol and cars, Dollar will come down

The Above Details have been provided originally in Telugu Language by Madhava Turumella and were translated to English by Radhika Gr. - See more at: Real story of American Dollar v/s Indian Rupee

THe writer of this dollar/rupee guy must be smoking some hard things. He wrote in a way that as if just by wishing India can revalue its currency.

 

[eastwatch]

If that is the economics which they teach you guys in Bangladesh then it remains no great wonder that your single source of economic growth is the textile and garment industry

That guy may be wrong in his assessment of Indian economy but you are more wrong about BD economy. Textile share of our $150 billion GDP is only less than $25 billion. So, textile is less than 16% of GDP.

By the way, I have seen Indian textile products in a Tokyo fair. India7s are not for international market. Bd is ahead of India in textile by 20 years. So, BD does not have to worry about a weak Indian currency. Indian textile cannot supply the world market even with a weak currency.

However, BD is worried about the long term consequence of a weak Indian currency.

 

[senkakudefender]

That guy may be wrong in his assessment of Indian economy but you are more wrong about BD economy. Textile share of our $150 billion GDP is only less than $25 billion. So, textile is less than 16% of GDP.

By the way, I have seen Indian textile products in a Tokyo fair. India7s are not for international market. Bd is ahead of India in textile by 20 years. So, BD does not have to worry about a weak Indian currency. Indian textile cannot supply the world market even with a weak currency.

However, BD is worried about the long term consequence of a weak Indian currency.

You focus on textiles and hilsa supply for us ok, we worry about steel, automobile manufacturing, solar , hydel, nuclear, etc.

 

[peaceful]

You focus on textiles and hilsa supply for us ok, we worry about steel, automobile manufacturing, solar , hydel, nuclear, etc.

let's look at these one by one.

Steel: China produced 716.5 million tons in 2012, india less than 80.
List of countries by steel production - Wikipedia, the free encyclopedia

automobile: 19,271,808 vs 4,145,194.
List of countries by motor vehicle production - Wikipedia, the free encyclopedia

solar: China's production is more than the total demand of the entire world.
Solar power by country - Wikipedia, the free encyclopedia

let's don't waste our time on nuclear stuff, we are a declared nuclear state written into the NPT, india doesn't even dare to sign NPT.

now, let's look at other numbers:

our supercomputer is ranked world No.1, india got 0.
China’s Tianhe-2 supercomputer, twice as fast as DoE’s Titan, shocks the world by arriving two years early | ExtremeTech

want to compare the patent filings?
http://www.wipo.int/export/sites/www/pressroom/en/documents/pr_2012_726_2.pdf

R&D spending?
China set to surpass U.S. in R&D spending in 10 years - Computerworld

or maybe have a look at our cities?
Shanghai
Shenzhen

too big to understand the gap? fine, let me show you a small small town on the Chinese Vietnamese border, it explains why Vietnese are risking their lives to illegal cross the border to earn our minimum wage:

Nanning

 

[surya kiran]

That guy may be wrong in his assessment of Indian economy but you are more wrong about BD economy. Textile share of our $150 billion GDP is only less than $25 billion. So, textile is less than 16% of GDP.

By the way, I have seen Indian textile products in a Tokyo fair. India7s are not for international market. Bd is ahead of India in textile by 20 years. So, BD does not have to worry about a weak Indian currency. Indian textile cannot supply the world market even with a weak currency.

However, BD is worried about the long term consequence of a weak Indian currency.

This is about 15 yrs back. So my aunt was coming back from the US. And she said she's got me t-shirts. Was very excited and it said Big Apple and more. Then I looked at the Made in tag, it said Made in Bangladesh. And i was like wtf?

Anyways, om topic, you are right. It could create problems for potential competitors of India. But, the problem is there are more stringent issues which will need to be tackled. Textiles is just one part of it. The main thing which needs to be tackled is power and manufacturing. The problem with the current scenario is that it requires a person to graduate to get in to the service sector, where India is strong. Tapping in to the manufacturing sector will enable citizens with lower qualifications to be quickly trained in aspecific operation and put to work. Nobody seems to be talking about this fundamental issue. THAT is the main problem today.