Friday, August 23, 2013

Re: [CROMA] real story of American Dollar v/s Indian Rupee

 

The sentiments are appreciated and every citizen should do whats best in his/her capacity to help the nation progress. But the economic theories probably do not hold good.

1) It looks from the write-up as if India is on the Gold Standard for currency and the US is not, and suggests probably that the US is on a "Petrol Standard" - not true, the Gold Standard was abolished long ago globally.

2) Petrol can never be equivalent to Gold in value. Simply put, lets assume we have Rs.1000 worth petrol in hand and Rs. 1000 worth Gold. After 1year/100 years the petrol would be long gone(evaporated), but Gold would still last(being inert) and hence would hold value. So both the commodities though pricey ,do not share the same longevity value and it would not be prudent to hedge for long term value on petrol.

3) The US prints money on white paper when there is shortage, so does every other country in the world - Including India. But it would be unwise to do this unconditionally - basic Supply-Demand equations.

4) While being nationalistic, the first focus should be on bringing quality of products at par, have you ever heard of people buying American Cotton/Basmati Rice/Wheat/Khadi etc... never, coz no one can beat India these products and we also buy only Indian, in fact the world prefers to buy Indian with an exception for maybe Egyptian Cotton. So point is, if the Indian products mentioned above are superior or even at par in quality there is no reason to buy a higher priced Foreign substitute. Hence we as Indians at our workplaces need to first ensure that we put our best foot forward and work with the highest professional standards and then produce the best products and then automatically the market share for Indian products would rise.

5) I totally agree that India has not been able to tap into all the benefits of globalized trade. But the solution is not saying NO to that, its at beating the world on a level playing field(one way to do is probably by point 4 above).

6) Not very important in context to the discussion at hand, but another misquoted fact is that 12 months ago, the Dollar was not at Rs.39, was in the Rs.51-Rs.55 range.. :)

I'm not an economist and the above points are made on my minuscule understanding of the subject, and probably some/all of what I wrote stands open for correction - would love to discuss. Having said that, feel proud to be a citizen of a country where there is liberty to discuss anything out in the open - much better than many nations on earth.

Jai Hind !

-Sujai 




On Sat, Aug 24, 2013 at 7:24 AM, Gigras Gaurav <gaurav_gigras@yahoo.com> wrote:
 

True facts and very well written. Buy Indian products as much possible.

Sent from Yahoo! Mail on Android



 

 
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 take a white paper , 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 fraud 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. They will print Dollars on white papers as they like.

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. This is the value of American Dollar. That is why Many say some day the Dollar will be destroyed.

At present the problem of India is the result of buying those American Dollars. American white papers are equal to Indian Gold. So if we reduce the consumption of petrol and cars, Dollar will come down

The Above Details are translated originally from Telugu Language to English by Radhika Gr.
Kindly share this and make everyone aware of the facts of American Dollar V/s Indian Rupee.

And here is a small thing other than petrol , what we can do to our Indian Rupee

YOU CAN MAKE A HUGE DIFFERENCE TO THE INDIAN ECONOMY BY FOLLOWING FEW SIMPLE STEPS:-

Please spare a couple of minutes here for the sake of India.
Here's a small example:-

Before 12 months 1 US $ = INR Rs 39
After 12 months, now 1 $ = INR Rs 62

Do you think US Economy is booming? No, but Indian Economy is Going Down.

Our economy is in your hands. INDIAN economy is in a crisis. Our country like many other ASIAN countries, is undergoing a severe economic crunch. Many INDIAN industries are closing down. The INDIAN economy is in a crisis and if we do not take proper steps to control those, we will be in a critical situation. More than 30,000 crore rupees of foreign exchange are being siphoned out of our country on products such as cosmetics, snacks, tea, beverages, etc. which are grown, produced and consumed here.

A cold drink that costs only 70 / 80 paise to produce, is sold for Rs.9 and a major chunk of profits from these are sent abroad. This is a serious drain on INDIAN economy. We have nothing against Multinational companies, but to protect our own interest we request everybody to use INDIAN products only at least for the next two years. With the rise in petrol prices, if we do not do this, the Rupee will devalue further and we will end up paying much more for the same products in the near future.

What you can do about it?
Buy only products manufactured by WHOLLY INDIAN COMPANIES.Each individual should become a leader for this awareness. This is the only way to save our country from severe economic crisis. You don't need to give-up your lifestyle. You just need to choose an alternate product.

Daily products which are COLD DRINKS,BATHING SOAP ,TOOTH PASTE,TOOTH BRUSH ,SHAVING CREAM,BLADE, TALCUM POWDER ,MILK POWDER ,SHAMPOO , Food Items etc. all you need to do is buy Indian Goods and Make sure Indian rupee is not crossing outside India.

Every INDIAN product you buy makes a big difference. It saves INDIA. Let us take a firm decision today.

we are not anti-multinational. we are trying to save our nation. every day is a struggle for a real freedom. we achieved our independence after losing many lives.
they died painfully to ensure that we live peacefully. the current trend is very threatening.

multinationals call it globalization of indian economy. for indians like you and me, it is re-colonization of india. the colonist's left india then. but this time, they will make sure they don't make any mistakes.

russia, s.korea, mexico - the list is very long!! let us learn from their experience and from our history. let us do the duty of every true indian. finally, it's obvious that you can't give up all of the items mentioned above. so give up at least one item for the sake of our country!
 
NARENDRA KUMAR VARSHNEY
TREASURER (AAO Adhoc - Ajnara Gen-X)
9953776642
 
 
 


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