Since April 2009, there is an inflow of US Dollars in India at the rate of around US $ 1 Billion per week. In May 2009 there was almost US $ 4.25 Billion of inflow in India. And that is roughly US $ 1 Billion per week.
Recently (March 2009), The US Federal Government has announced to buy Treasury Securities worth of US $ 1.45 Trillion and in this way, The US Federal Government has printed money in the true sense. This high dollar inflow is the reason of appreciation of Rupee against dollar in the last month. Last month the Rupee appreciated against dollar from its record high of Rs.52 to Rs.46.
According to data, Total of US $ 2 Trillion of idle money is there in the world. And only US $ 100 Billion inflow of money in the Emerging markets is sufficient to boost its economy.
The Sensex has appreciated over 50% in the last one month only and this is because of the Huge amount of Dollar inflow. The Stock indices of China, Japan and other developing economies also appreciated by over 60% during the same period.
This is because of the inflow of Dollars into the emerging economies. Central Banks of developed countries all around the world (mainly USA) have printed money in the true sense and pushed into the economy (Monetary System). And that’s why we are seeing the stock indices going up.
The US Government has printed so much money that only a fraction of that money can drive our Sensex to the level of whooping 1,00,000. Money has no value now because the Central Banks of developed countries are printing money in the true sense like anything.
What Valuable is, Assets. Any Asset is more valuable than Money such as Stocks, Bonds, Gold, Real Estate, Businesses, Art, Blogs, Web sites, Forums, Internet Businesses…etc… So Don’t Save Money but buy any Asset instead. Holding Assets is much more sound decision than Saving money only during the conditions when Banks are printing money in the true sense.
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