One man cannot change the Economy in couple of months, which was butchered by the Government in power for the last 9 years. Global economy may not take off despite Booster doses by printing massive currency by U$A. The trouble is that a lot of this external debt needs to be repaid before March 31, 2014. NRI deposits worth nearly $49 billion mature on or before March 31, 2014. Nearly $21 billion of ECBs raised by companies need to be repaid before March 31, 2014. If there is a default India will be next Greece of Asia with the 9.5 years of unabated corruption and mismanagement by the present rudderless Government. Elections may be declared to escape the situation as the Ruling party is now almost sure of not returning to power or rather not wanting to return to power. This will mean a demand for dollars and thus further pressure on the rupee. Most likely this is guaranteed by Government of India. The New Governor appears to be a nightwatchman playing defensive focusing on exchange rate front in the on going currency war till the next Government takes over. He has a God given breather via Federal Reserve couple of days back up to next 2-3 months of cease fire in the currency war. If this ceasefire fails and INR crosses 75 mark in December, there is no option for Indian Government but to declare early elections as they will not be able to place a viable budget next February 2014. We have not option but to enjoy the economy as it presents itself in the coming 18 months. Read more at: firstpost/economy/phata-poster-nikla-zero-why-rajan-hasnt-joined-the-party-1122477.html?utm_source=ref_article
Posted on: Fri, 20 Sep 2013 12:55:05 +0000
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