DEVALUATION OF US DOLLAR IS REALLY A CONCERN…..OR HELP TO US ECONOMY - By: casandra

From last some years dollar value continue reduce in compare to other foreign exchange, for these reasons the investor from middle east and other transfer there investment from us dollar to euro, yean and pound and in rupee . Most of the new investor not interested to invest in us economy.

This devaluation is really very helpful to the blue chip and software and export companies their profit margin increase in comparison to previous year ,devaluation will help to reduce the price of exported goods ,main problem that arise is that us is largest consumer of petroleum ,this devaluation need to paid more amount on the import of petroleum ,this is only one side because the American paid to the American companies for petroleum and these companies paid only a minimum amount to the middle east govt.

Recession or devaluation for dollar mainly arise because the us economy not believe on saving they believe on consumption and investment if u face the recession u need long term investment or reduce your current need or postpone the need to future which is really not follows in us .

Largest earner in this recession period in us is weapon industries, when the other industries reduce there manpower on the other hand the increase in terrorism

Demand more security appliances and weapon to tackle this problem in every countries, and us is the biggest supplier of these type of instruments, second one

Friendly relation with India gives lots of requirement of defense equipments.

Indian air force demand 126 multipurpose aircrafts for increase its strength and Lockheat Martine and Boeing among the contenders.

Nuclear deal among the India and us will give billion dollar deal to us companies and the reduce value of dollar also help to increase the demand of us goods .

About the Author

Casandra Parker has written many financial posts concentrating on personal finance solution that help people to make financial decision in right direction. Check this blog of her to get more updates on finance topic.

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