For once the situation is such that the President who caused a lot of this damage is on his way out by November and you have economic geniuses Henry Paulson, the US Treasury Secretary and the Fed chairman, Ben Bernanke orchestrating one of most radical plan that America has implemented since the Great depression or for that matter in its colonial history in its financial system.

In the fine-print moves if you see they are allowing their wall-street darling banks to raise equity from foreign governments so that the dollar slump is sorted because of the obvious vested interest.  But then again that seems like a temporary fix to the issue. As that would in the long run translate into the American money going overseas.

But progressively after the Sub-Prime losses the Feds, have clearly realised that the Fed needs a more central and powerful role in the mortgage and financial stage of America. And if the feds have their way, American economy would start to reflect the robustness and credit control of east Asian countries like India.

I read this article recently, the lowering of dollar valuation has been in a way a disguise for the americans cause it has narrowed their trade deficit! That makes some sense to me now.

Just imagine you have 2 currencies that you control, One the dollar that is good in the short term and another you have huge reserves of Oil that is invariable the long term check point (in the 20 term period)

Your foreign policy is governed by overseas Oil needs. What do you do? I dont know how many of you remember what Anil Ambani did after he came from Wharton… He went on to buy Reliance Shares from the market which were performing badly! It had a phenomenal rebound effect.

We have reasons to believe that Investments by American companies in overseas markets has nearly zoomed 1200% in the last 3 years!

(In a getting a bit jittery already! , will continue this article in sometime from now)