Tuesday, 27 August 2013

The Indian Rupee now trades at 68 to the Dollar - Political Implications

When I started this blog I thought I'd be looking at Economics and Politics and other things in general rather than focusing so narrowly on India, but recent events seem to be changing the situation. Well, I'm keeping this post short since there's enough screaming already.

The Indian Rupee has just breached 68 to the Dollar and it looks like it'll soon trade at 70 to the dollar. That would made every go even wilder than they are now. Every newspaper headline is screaming "Bloodbath in the SENSEX" and the stock markets are going wild. And there's the new threat of inflation in essentials, imported equipment is that much more expensive, so on and so on. And oil prices are going to go through the roof. Not exactly a comfortable time to live.

The political implications of this fall worry me just as much as the economic implications. I'm in a category of people that has to worry relatively little about having a good life. But there are enough people living close to the line who are going to feel the hit very, very badly. And when that happens, frustration is going to strike, and those who peddle cheap solutions over workable ones are likely to take center stage. Everyone wants a messiah to save them, and the messiah who emerges from this mess is likely to turn into Satan.

I'll be watching, but I don't think I'll be happy.

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