US Elections-A Disaster Looms Large
For the first time, the 45th Presidency of the US signals a disaster for India. No matter what CNN sells you or the local Indian channels which are now making a beeline to the US for a 3-4 day holiday-we lose. Trump is anti-outsourcing, Clinton is against free pricing of drugs.
These 2 sectors apart from Worker repatriation are the saving grace for India. 3 decades ago I used to hold such a discussion with Manish Chokhani of Enam and IJ Lee of Capital Internation, Singapore.
From a USD/Re parity of 1 in 1951, we are knocking at 1/70 and more. Worse, by Buying US Treasuries often yielding zero coupon, we are financing the American public and Government spending.
The way out-Asian blocs must trade in domestic currency, world commodities like Oil must quote in local currency, and above all Rupee must be freely convertible. When dividends, royalties, interest, FCCB, FCNR, Masala Bonds, FPI/FDI money into Equity is freely convertible, why should certain transfers and transactions stop GOI from making Rupee float like the Yuan.
If this continues we will remain subservient not just to the 45th President, but to all Western nations for ever. Import their inflation, export deflation through continued devaluation of the Rupee and permanent perennial impoverishment of the Indians. A few million IT professionals and their families cannot decide national disocurse or direction.
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