Today’s international media mostly portray India as a troubled nation that can hardly govern itself. I see India as a very strong and promising nation that will continue to grow to global importance. The international media have found yet another way to make India look bad, the lowering value of the Indian rupee against the American dollar.

Well this whole rupee crises is pretty fake and I think the media know this so let me explain “why the rupee crises in India is basically fake?” 

Keep reading as now I’m going to prove this with a strong point.

So let’s move towards what is going on…. No wait! To clarify this let me explain what is not going on….

So, Is the Indian rupee losing value against the American dollar because the economy of India is not doing well?

No that’s not the case, the economy of India is the best performing major economy in the world. India is growing about 7.5% this year and the USA, China, Russia, Japan and even Europe can’t beat that in any way.


Then perhaps the Indian rupee is losing value against the American dollar because the West is putting pressure on India since democracy in India is under threat?

No that’s also not the case India is still a democracy like it has been since its independence II in 1947 in fact India is the largest democracy in the world plus India is organizing the largest free elections in the world right now.


So then perhaps the Indian rupee is losing value against the American dollar because India has such a huge public debt?

No No & NO. The public debt of India is only about 50% of its GDP which is way lower than the United States of America and the European Union.

Then what is going on?
Keep Reading……..

Then what is going on?

Well the Indian rupee is indeed losing value against the American dollar but that is first and foremost an American crises and not a Rupee crisis and it hasn’t got much to do with the rupee crisis in reality is part of a global currency crisis fueled by the economical policies of the United States.

The United States of America realizes that the power of the West is declining and Asian countries like China, India and Indonesia are on the rise. Therefore America has decided to shield its economy from foreign competition especially China.

The USA is using tariffs, higher interest rates and a stronger US dollar to battle the competition besides the fact that it’s very unsure if this will help America in the long term. Well it does have an effect on the rest of the world and also countries like India that have got nothing to do with America’s Unknowing quarrels with China .


Wait but how ? 

Because for the past twenty years and especially the past ten years many countries have financed their economical growth partly by loans in US dollars. Well China did it, Indonesia did it, Mexico did it, Russia did it, India did it and many other countries did the exact same thing.

And why did they do so ?

Well during the financial crisis of 2008 the value of the American dollar was declining all the time and interest rates were falling too so countries that were in need of large sums of money in order to invest in their roads, schools and airports decided to get loans in US dollars because if the dollar would keep on losing value and the interest rates would keep declining paying back loans in US dollars would become more and more easy. So ten years ago it seemed like a pretty logical choice to get loans in US dollars and for many years to come after 2008 that decision proves to be the right thing to do. The value of the US dollar remained low around the zero-point-seven euro mark and the interest rates were getting lower and lower to a point where countries could almost borrow money for free.

So if everything was going right then why is this all happening ?
Keep Reading…….

So if everything was going right then why is this all happening ?

So it was only until about 2014 when the value of the US dollar against most other currency started to rise again. Now for most countries who have loans in US dollars this wasn’t much of a problem because the global interest rates remained extremely low so paying back a loan in US dollars did not result in huge problems for most countries. But then in 2016 Donald Trump was elected president of the United States and Trump and his administration had a plan to keep America in charge of the world. It’s not even a conspiracy theory because Donald Trump and his administration are pretty open about this the plan which they called ‘America first’.

Now What does this means ?

It means scaling down on America’s import from foreign countries so that Americans make their own cars and their own electronics again and they grow their own farming products.

Again the idea is that would strengthen the American economy and it would limit the growth of especially China at the same time America is caught in pretty substantial conflicts of interest with both Russia and Turkey and the USA doesn’t make a secret of its aim to weaken the position of the Russian and Turkish administration.

So the USA has developed a strategy to tackle all of these issues in one package.

There are basically three tools that America uses to implement its America first policy and to contain the power of China, Russia and Turkey it seems like a rather ambitious plan. But basically this is what is going on-


There is the introduction of tariffs on all sorts of imported products mostly products from China which makes foreign products more expensive in America so it could boost their own production and sales of American products inside the USA and it would weaken the Chinese economy.

On the short term this too will likely lead to many new manufacturing jobs in the USA and that is what Donald Trump needs to be re-elected in 2020. You see settling the score with China, Russia and Turkey is not the kind of project that even America could accomplish in four years so I suppose the Trump administration is planning on this to have a eight year time frame



Now is the raising of the value of the dollar. So if the dollar gains more value the United States of America can purchase more and better stuff from countries they do want to do business with and at the same time China, Russia and Turkey will experience more trouble with their national debt. If interest rates would rise that would add even more to the trouble that China, Russia and Turkey could get into and what do you know raising interest rates is exactly what America has been doing since Donald Trump took over the country.

Rising the American interest rates in the value of the American dollar are interconnected if America raises its interest rates everyone wants to own dollars because then you can lend them to others for a handsome interest rate and just owning an American dollars becomes an investment again because tomorrow they are worth more than today.

Let me explain it in most simple way. America wants to remain in charge of the world so it raises tariffs on imported goods and it raises the interest rates because countries like China, Russia and Turkey will get into trouble because of it.

So what that’s India’s got to do with this?
Keep Reading……….

So the Rupee crisis in India does not really exist it’s much more a USA-China crisis or a USA-Russia crisis or a USA-Turkey crisis.

The rupee crisis in India is not the course of trouble it’s the result of trouble caused by tensions between the USA and other countries.

So what that’s India’s got to do with this?

Well basically nothing. India is just one of the many countries who have debts in American dollars so the Indian currency loses value against the American dollar, and how bad is that? Well it doesn’t need to become a big problem for India for now it causes the prices of imported goods are to rise in India.

In India just like in almost all other countries most of the oil is imported and paid for in dollars so the prices of oil are now rising in India and that’s a pity because it causes other prizes in India to rise too but since India has a 7.5% economic growth year India should be able to handle higher oil prices.

What else does the decline of the Indian rupee imply?

Well on the short term it causes some problems but in the longer term it might backfire on the United States because buying products from India will become cheaper for the rest of the world India still is a country that imports more than it exports so this rupee crisis could be exactly what India needs to turn the tables and become a true exporting nation.

So there are not only problems there are also opportunities for India.

Yet the media tell us that the Indian rupee is the worst-performing currency in the world well that’s simply not true the Turkish lira the South African Rand the Argentine peso the Mexican piece of the Russian ruble the Indonesian Rupiah etc they all lost significant value to the US dollar during the past few years some of them much worse than the Indian Rupee.

So as usual the Rupee crisis appears to be a buzz word for the media to use against India the media when will they ever learn and what the media is also not telling you is that America wants to be friends with India out of all the countries that are hit by the American first policy India is the first country that America wants to have on its side so America wants to be first but I predict that America will come with proposals in the near future to make India second I predict a new and growing American Indian alliance that will change the balance of power in this world forever.

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