Well this is the question a NRI is asking…sure Indians are also asking, but face it, they have no choice!
Let us look at China. If I had my money there, I would be worried and pulling out. The government has too much money and it does not let the citizens spend – that is the way to keep inflation down. The avg Chinese will end up buying more gold and real estate. Real Estate is cracking and gold may also struggle.
India: It has a government which spends with 4 hands. Clearly RBI has no answer to inflation and the UPA is busy making money. No clue whether it is worth voting NDA back to power – but we may have to do that just to get rid of the Congress. Most of the reforms happened under Narasimha Rao and Vajpayee – our current PM is …well no comments. No control on inflation, no control on deficit (55 billion US $ soon). No reforms, growth in mid single digits, and the Rupee heading to 55 shortly…NO way how an American will be in a hurry to invest. We thought if we got US $ 30 billion once, we will get it every year.
If Subramanyam Swamy can get some order from the Supreme Court – the government will have to go. Kaput.
So India is out.
Brazil, Russia ….hmm no comments..
So there will be ‘flight to safety’ – so the American bluechips will get more money …..all IMHO….
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