Yes Udaym Saar. The man with bigha land, cows and Bulls will be fine. the reality is the so called Global economic crash of 2008 was not global. It was peculiarly anglosaxon. These con artists whom we label as economists, called 1997 as Asian crisis, the 1994 mexico crisis as South American crisis.
Do you really think the common man on the street cares about repo rates, CRR, LIBOR, EuRIBOR, reverse repos, loco gold, Fitch rating etc?
Fixing a parity of western currencies to ensure rising Asia ( you mean emerging Asia as western con artists call it or re emerging Asia as we should call it) does not rise?
It comes to the understanding of the dirty float. Now You know what dirty float is? Instead of fixing 1USD as 2 Euros or 100 yen, they agree to let the value float between 1.85 euro to 2.25 euro for every dollar- on those lines.
But countries are giving up the dirty float. Why is China setting up bilateral swaps with many countries? Why are they agreeing to stop the use of dollar in their trade?http://www.ecb.europa.eu/press/pr/date/ ... 10.en.html
Swap line will have a maximum size of 350 billion Chinese yuan and €45 billion.
Agreement will be valid for three years.
From the Eurosystem’s perspective, it will serve as a backstop liquidity facility.
The question also arises does US want the USD strong or weaker? Does ECB want the Euro strong or weak? And what about Japanese? Do they want Japanese yen strong? Or weak?
See they themselves cannot agree with what they want. And they cannot hold a gun over their anglosaxon friends head telling them what to do.
Earlier this month in FT, there was an article asking the ECB to intervene in forex market. The ECB declined. They have given up on the dirty float too.