Gabe Menezes wrote: With markets in a tizzy put your money in a State owned Indian Bank with a yield of 8 percent plus that's in Rupees of course. -----------------------------------------------------------------------------
Gabe Menezes, Those with the choice of holding their saving in US dollars or any other currency have found out the hard way that holding their savings in US dollars actually produces a negative return. That is, inflation in the US is higher than what their savings earn in interest. The sad part about this is that for the next little while, we are assured that savings in US dollars will continue to earn a negative interest. Indian inflation is appox 8 to10%. Holding your savings in that currency is detrimental too. The smarter people, the business ones, those with real money, have been moving their money to where the real action is. The forward looking people, or should I describe them as the really lucky ones, are those who took out loans or lines of credit in USD's and converted the cash into the local currency in their country of residence. These good people have made more on the subsequent depreciation of the USD than they could ever dream of. Lastly, here is a real interesting chart. A real interesting chart. http://www.flickr.com/photos/45002663@N00/6060197657/sizes/l/in/photostream/ Mervyn1853Lobo
