Acetrader-daily Market Outlook 30-6-2010
The federal bank removes cash from equity markets. As we all know that capitalist can pull down his cash from market and worth of the rupee can go down. A weak rupee creates inflation by creating fuel and different businessperson merchandise costlier.
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Historically, from the beginning of paper money exchange, nearly 600 currencies have vanished forever - from the "flying cash" notes of China's Tang dynasty to the incredible debasement of Zimbabwe dollars in 2009. Half of those currencies were ruined by inflation or hyperinflation. Still US fiscal policy is led by a Federal Reserve Chairman (Ben Bernanke) who claims "positive inflation" is desirable. Yet since 2000, the USD has lost 25.5% of its value. That means for America, that its actual loss amounts to another $13.5 trillion! Not only does this actually make the dollar itself a poor investment, the US is running headfirst right into a financial catastrophe.
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As previously mentioned, the increase in interest rates could be as much as 1 percent. This could cause a 1 percent decrease in top 5 fashion blogs and the loss of 800,000 jobs a year.
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However, this year we are witnessing a train-wreck of historic proportions taking place in the eurozone, Greece expected to fall off the tracks and tumble clear out of the eurozone, with who knows what results to the European financial system, with Spain's train following and now potentially piling into the wreckage, while economically the 17-nation eurozone is already clearly in a worsening recession.
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