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The Future of Dollar ?

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photocms The Future of Dollar ?

There has been tremendous predictions about the future of dollar and the US economy from as early as 1999 they were making up with two important predictions one was the break down of the US economy and the other was the end of dollar hegemony. The dominance of a currency is world trade is determined with the three criteria like it should serve as a unit of account. work well as a medium of exchange and also should be a store of value. The first point describes the people should accept the valuation of the currency, The second one is that they should be ready to trade in return for goods or services. the third situation would be that it should give future demand, to hold as savings which are valued in units of the currency. 

 

The conversion of gold into currency has helped with the growth of the dollar post second world war, the dollar was widely used as the principal currency for gold conversions which replaced the pound sterling. The growth of the dollar was made rapid by the Marshall Plan were US was the main supplier of services and goods for the reconstruction of European countries after the war. The demand was mainly for the US commodities, and naturally dollar had its place in all the International transactions. The US was able to keep the value of the dollar fixed in relation to gold till 1971. Any currency which follows the basic three properties would be used as the reserve currency irrespective of political preferences. The US dominance in the world production of goods and services from the 1980′s to 2007 nearly accounted for 30% of the world production (GDP). The future of the dollar will be at risk when the world production shifts from the US sub continent to some other countries which exhibits the same political stability. The next near candidate would be Euro but the EU27 production has fallen continuously since 1980′s and is around 25%. China did you say so its about 6% of the GDP of the World.  

So the dollar will have its presence for some more long time without the lack of a proper candidate to replace it by all means.

51qQVKrVMgL. SL160  The Future of Dollar ?

Future of the US Dollar Part 2 

The Indian Gold Deal

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photo.cms 300x217 The Indian Gold Deal

The Yellow metal is just going up like a sky rocket as if nothing is there to stop the current prices with the gold prices. You might have heard that India had bought a 200 tonnes of gold from the IMF (International Monetary Fund) for $6.7 billion. But would be the idea behind such a move? any ideas for that? With this move India’s gold earnings will be the tenth largest among the world central banks. This deal has triggered many analyst with their own versions of the deal, since RBI is silent with the deal stating it as foreign exchange reserve management.

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Budget 2009-10 On July 06

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The new UPA government is bringing its first budget of the Govt tomorrow. Needless to say that the economic situation is tough in here. Many experts believe that the budget is mainly focused on structural reform that will boost growth. The main focus is expected to boost the agriculture, infrastructure and telecom sectors. India’s fiscal deficit has grown sharply with the stimulus packages that were announced pre election to boost the economy. The defence budget has also seen  increased spending on the wake of the terror attacks.
The fiscal deficit is estimated to be grown to 6.2% of GDP for the year ended March 2009 which made it double the governments target of 2.5% which makes it the highest in two decades. The Govt is clear on the stands that India will achieve 7% growth and it is also aware of the dangers that   rise in the fiscal deficit would cause. Anyway its just one way head for the day the whole of India and the investors over the world are watching to see the Budget 2009-10.

The new UPA government is bringing its first budget of the Govt tomorrow. Needless to say that the economic situation is tough in here. Many experts believe that the budget is mainly focused on structural reform that will boost growth. The main focus is expected to boost the agriculture, infrastructure and telecom sectors. India’s fiscal deficit has grown sharply with the stimulus packages that were announced pre election to boost the economy. The defence budget has also seen  increased spending on the wake of the terror attacks.

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Dollar to be replaced : IMF

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dollardownarrow 112x300 Dollar to be replaced : IMF

 

 

 

 

 

 

 

 

IMF is planning to replace the reserve currency from dollar over time. The move that is said by the IMF itself as quite revolutionary. Special drawing rights (SDRs) would be used as the basis of the new currency. SDRs would have to be delinked from other currencies which are issued by an International organization with equivalent authority to a central bank, for allowing it to become more liquid enough to be used as reserve. IMF states that as much of the 70% of the currency reserve of the world are in dollars. The move is made to avoid excessive exposure to the US economy. Read about : The Future of Dollar.

Have anything to say Your comments are welcome…

Investing in Real Estate Overseas?

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110323842 7e80590cc1 m Investing in Real Estate Overseas?

The worst hit sector in this recession time is the real estate, nationally and globally. There are rates that are slashed 25-35% with the prices of properties. The prices in US, UK, Australia,South Africa and also the Gulf countries, Singapore etc have seen surge with the Indian buyers to buy property overseas. The ground reality touches with the city of Mumbai and Delhi which tops the charts in the overseas deals. Sources claim that the growth is 100% and nearly 30 deals are done per month. There are buyers that come from different parts of the country. 

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Top 5 Myths of the stock Markets

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2920370 15187aeeaa m Top 5 Myths of the stock Markets

Many of the Investors who are outside the net of the stock markets are often confused as to the ways that the stock market behaves, there are some myths that are inbuilt in the society about the stock markets as a whole. Here we are going to discuss some of the myths related to stock markets.

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Most traded currency pairs in the forex markets

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84364820 2a137d22c6 m Most traded currency pairs in the forex markets

There are many currencies which are used by several countries of the world. But when it comes to trading with the Forex Markets there are only a few of them which are the hot favorites of the traders. In the world of Forex trading the most economical and politically stable liquid currency are in demand. The US dollar is the most actively traded  due to the size and strength of the US economy. 

Generally the top eight traded currency are US dollar(USD), Swiss Franc(CHF), Australian Dollar(AUD), Japanese Yen(JPY), Canadian dollar(CAD), British pound(GBP), New Zealand dollar(NZD), Euro(EUR). The trading of the currencies are in pairs there are nearly 27 different pairs from these 8 currencies. About 18 pairs of currency are paired conventionally by the Forex markets.  

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