US dollar to replace gold as wealth

April 4th, 2008 - 12:26 am ICT by Nksagar Tell a Friend -

Each day growing inflation, burden raw materials cost with fuel touching sky hig
h,power and transport getting dearer, export orders at low ebb with low consumer
demand and more free markets puts Indian economy falter.US dollar as global cur
rency to replaced by old time metal gold.
Nation wealth is to be measured with the balance of payment or with rich reserve
s of gold in the treasury is likely to be moot question for economist to think a
nd work on such study.
CCP meet on Monday night at PM residence is likely to give some relief but the s
ituation is grim as the Oil touch 101 Dollar per
barrel thus taking tolls on transportation.Gold touches 32 Dollar per Gram. Just
forty years ago all world currencies were pegged to the gold standard. It means
anyone could take his money to a bank and come out with gold. As a consequence
a countryâ s central bank could only print money to the extent it had enough gold i
n reserve to back it up. But this all changed in 1971 when paper-money was deeme
d as trustworthy as gold.Indiaâ s external debt has gone up by 31.8 billion dollars
in first nine months of the fiscal to 201.4 billion dollars.This has interestin
g reports that our country with population of 110 Cr, per capita debt on each In
dian stood at Rs 7,218.
Its not only massive population of India and china which lures the global market
but the two countries having the oldest civilization in the world has tried and
tested route of people living in form of well knit family,the values of the fam
ily are very much part of their social fabric,the old custom still practiced kee
p the society in bond of love and affection with spiritual fora floating in abun
dance in India especially keeps the people united from unit of family,community
and nationalist level.spiritual teacher in India gives the society immense stren
gth to fight the menace of evils in the society.
World economies are loosing faith in the US dollar, the US finances its trade im
balance by printing more and more bills. But saying goes â A tree does not grow to
the skyâ thus printing more and more paper money does not give the intrinsic value
of the nation economy hence if the economy remains in the inflation and deflati
on orbit in vicious circle then eventually the tall artificial tree tumbles down
automatically.
Many nation in this unpredictable world economy will reduce their dollar reserve
s, gold is regaining its intrinsic value and is likely to be economies favorite
metal as a safe commodity as treasure. Old civilization taught China and India,
to hoard Gold from immemorial time thus the two big market has th potential for
huge exporters of gold is presently the holders of US currency are both avid buy
ers of gold. Two nation do have more affluent middle-class consumes which has un
flinching faith in gold hoarding and lust for this economical mettle so large po
rtion of the gold market via jewelery goes in their market. To some extend wealt
h flows away from the dollar into gold.
Two big markets for this yellow metal China and India, gold is a wealth and not
dollars . The two fastest growing economies may set global standard gold as asse
t to measure wealth and in this race gold comes ahead of all wealthy commodity.