Do Reserve Bank Are In A Hurry??
Why Do Reserve Bank Governor Is In A Hurry??
Yes, RBI Governor is in a hurry to increase Interest Rate. This is that, RBI Governor is worried about the outflow of Foreign Direct Investment (FDI) to Uprising economies. This June, United States Federal Reserve is also planning to increase the interest rate, but India must not have to do so.
When United States Dollar appreciates, all the currencies related to will come down. Not only currencies, commodities, too will crash. This is the fundamental of US economy? Our Governor who has studied in foreign university, dont know this.
Brazilian Lira, Mexico Peso, Thailand Bath got hit and decreased by 11%. Italy and Spain is in crisis.United Kingdom is already in Crisis b'coz of their arrogance attitude. This country is lacking talent, and talented IT professional's are there today but govt is not issuing visa to them as they are the puppet of US Economy.
Indian economy is a strong economy. The recent deceleration in growth is of 2 factors, gst policy of the government and demonetization. Both did good for India, facts and figures may be not in equilibrium. The government concentrated less in agri sector, but overall the growth is okay.
When United States planned for increase in Interest rate, plus they used the policy of restrictive tariff and trade, the whole export is in a standstill mode.
When on the introduction of World trade organization (WTO), the Americans were crying to open the market, so that the trade deficit will decrease.
The market of India China and Asian Economies opened, but the American deficit keeps on increasing. Now Asian Economies started free movement of goods and services , but Western countries are not having guts to come up with free movement of labour. If this would have happen, then Western countries will be on the beating end. This type of stupid policies, will be favouring American Politician's but the standard of living of lower middle class and poor will be decreasing. This happens due to terms of trade will not be in favour of Americans.
In Europe the situation is grim, because Germany and France rules Europe. Other countries are at the beating end. Germany , France, Netherlands, Belgium are doing economically good. United Kingdom ran out due to weak pound and weak exports. That economy has not having a good Finance Minister to rule. As per the mythology, this country is dying on its own.
Netherlands, France are agri-oriented Economy, but Germany and Belgium is Industrial economy. Spain and Italy are in trouble right now. Greece did'nt find its feet right now.
Now Europe lies near to Russia, so they have to take the help of Nato to withstand them.
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