9th June 2016
The real issue with India’s foreign reserves – the US is playing a ponzi game
My follow up email to my previous blog post. I copied Raghurajam Rajan into my email, plus bccd. some senior leaders of India.
Now, Raghuranjan Rajan has been calling for a more normal interest rate environment, but as we know, Janet Yellen is NOT going to oblige him, given the risks of a meltdown of US government finances. Therefore, the US is fooling the world in plain sight. Those left holding the USD and US government debt will be left holding the [wooden] spoon. This is a sort of Ponzi game.
If Rajan carries on holding USD and US securities, he could cause tens of billions of dollars of losses to India.
I consider he should immediately diversify – and away from currencies (since almost all fiat currencies are excessively debt-ridden). Gold appears to be the best safe haven. And maybe Bitcoin/ cryptocurrencies – anything of value whose supply is limited. Fiat currency always tends towards unlimited supply. They are all a bogus piece of paper.