Derail Bharat Plans Afoot.

Who might this mystery nation be?

 

It is not that simple. It is not the first time that Hinderberg has come up with such reports. They did it in the past and will do it in the future. They are in the business of making money. They did not in the very country where they are incorporated. If it was not against the USA, how can it be against India?
There will always be for and against views. It is for the country concerned to take note and make corrections where ever needed.

 

This is not the first time. Before this, there was Harshad Mehta and Ketan Parekh. Ketan Parekh is an investor in Adani.
The question is what SEBI and other watchdogs were doing and what the present Government is doing.
Adani will not go to dogs, he will survive and in any case, he will remain rich, if not the richest. I think the worst is over but he may find it difficult to grow as in the past. He will continue getting government support. Nothing will change, whosoever comes in power.
As for those dealing in shares, they know the risks involved.

 

Dear Thyagarajan Sir,

India's rise in the world is admirable and every Indian and even former Indian will be proud of this rise in the status. There is no question.

However, the USA's downfall can't be predicted that easily with these moves in the BRICS and even if Saudi Arabia joins BRICS. There are so much of inter-dependency among the countries including a strategic partnership between India and the United States. The US is still dominant in science and technology, R & D investments, educational institutions, oil-reserves, unexplored oil in Alaska and Florida, enviable power supply, outstanding infrastructure, so forth and so on. Despite the select countries not depending on the US, many more or relying on the US military power for security. The economies of the UK, France, Germany, Japan, Australia and the United States combined is formidably higher when compared to the BRICS nations economy. NATO relies mostly on American funding to defend the countries in Europe. It is difficult to erase the dominance gained by the US after WWII.

The US dollar value is not necessarily dependent upon its status as world currency but on several other factors such as annual growth of the economy, skillset of the work force, relationship with advanced economies, etc. It will be many more years before the alternate currency option works well for BRICS nations.

Already, many countries in Eastern Europe and APAC region are becoming a hub for software development services at a competitive rates. I have personally studied that two decades ago as otherwise, Indian service industry growth would have been a lot higher than what it is today. As late as last year, the US is the second largest FDI investor as Singapore is #1. May be, that is one reason why PM Modi is welcoming investments in other industries to make India a manufacturing hub just like China.

Like any other country, the US is not fault free and they have made many strategic errors such as fighting wrong wars, taking responsibility to resolve issues of Europe without proper contribution from them, staying in Afghanistan and Iraq longer than needed, standing against India for a long time supporting China and Pakistan (poor foreign policy), rebuilding nations after WWII and other wars without any reciprocative benefits for the USA, etc.

India has a lot of challenges in its neighborhood which would involve additional spending by India. When Pakistan and Sri Lanka are in dire economic collapse, India will have much more challenges in their neighborhood. China is entering Sri Lankan soil in a big way just like what they did in Africa. With all these facts, still, I am pleased with India's progress and there is a lot more to do. The current Foreign Minister of India is remarkable and provides great standing for India in a global space. India is a natural partner in many ways as it had no global expansion ambitions and confined to only its own growth. Most importantly, it has a lot of young manpower, if channeled properly, can result in remarkable further growth. They have made remarkable improvement in science and technology, infrastrucutre building, defense capabilities, etc. Poverty removal is progressing well but corruption is still rampant in every entry level offices such as sub-registrar's offices, automobile licensing, income-tax, excise and customs, Tahsildar's office and many more. Elections though democratic, many people are bribed to vote for specific wealthy parties. This system should be eradicated with more strigent laws and more by educating the common public about the danger of accepting money for vote.

 

Is that reflected in the US currency dropping its value and Indian Rupee appreciating against Dollar? How much of value Indian Rupee lost against the US dollars in the last year? (9.5% of its value against Dollar) (Please see the graph above). Why RBI is involving itself to arrest a free fall of Indian Rupees? When is Rupee becoming fully convertible (both current account and capital account conversion), if India is confident of its currency? Can someone walk into a Bank and pay $1 million equivalent rupees and convert it into dollars? If dollar is having a free fall, why not India make its currency a fully convertible (floating) currency? Why there are so much restrictions and regulations by RBI? No matter how many countries are enrolled for Rupee trading, eventually, the transaction value will determine the strength of the currency. China tried its best to make Yuan the currency for Asia but so far it has failed despite being the second largest economy in the world.

Where is the evidence for US Bonds dumping that is happening as projected here?
Based on January 2023 statistics published, $7.2 Trillion dollars worth of bonds are held by foreign countries including Japan, China, United Kingdom, Belgium, Luxumberg, Cayman Islands, Switzerland, Ireland, Canada, Brazil, Taiwan, India, and France. During pandemic, the investment in the US treasury bonds increased substantially. Even if countries pull out their investment in treasury bonds, one should understand that more than 70% of the total treasure bonds are held by local financial players within the United States and only 30% is held by foreign countries. The US has its own gold reserves as well as untapped emergency oil reserve that is specifically reserved only for emergencies. Besides, it has natural resources of oil not yet explored in Florida coast and Alaska. As you know, the US also is a major crude oil exporter.

What is the total value of transactions that are happening in Rupees as opposed to the US dollar as of February-March 2023? If it is growing, is it sustainable? Instead of publishing a wish list, it is best if there is a comparitive economics produced to back such claims such as 'dedollarization has begun'. it is easy for me to convert all my US dollars wealth into Indian Rupees even today (as US currency is a floating currency) but it would be difficult to change all my Indian Rupee wealth into the US dollars. "Believe me" statements are meaningless unless they are backed up by statistics. There is a lot more work to be done by India before Indian Rupee becomes a world currency. Anyone who understands economics will know this.

I welcome India becoming a powerful nation in military strength, developed nation economically and join the Security Council. It makes me feel happy but I don't like to trust a wish list unless it is backed by a strong data of growth and development. Growth agenda is different from actual growth.

 

The US Gold reserve alone is 8,133 metric tons (the world's largest gold reserve) and I forgot to mention this in my earlier post. This is as much gold held by major gold-holding countries combined (Germany, Italy, and France).