Sinking Currency, Sinking Country???

http://news.yahoo.com/s/uc/20071102/cm_uc_crpbux/op_334275;_ylt=Amu5Uq4J9_bv5dJM0.aU84wDW7oF

By Pat Buchanan

Well, some interesting points from the article are:

The euro, worth 83 cents in the early George W. Bush years, is at $1.45.
The British pound is back up over $2, the highest level since the Carter era.
The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.
The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.
The prime suspect in the death of the dollar is the massive trade deficits America has run up, some $5 trillion in total since the passage of NAFTA and the creation of the World Trade Organization in 1994.
The chickens of free trade are coming home to roost.

Some observations which I made on my own are: For TCS about 52% of revenue came from US, Infosys and Wipro about 63% and Satyam closer to 66% but what I notice is that number has been reducing over period of time

1 comment:

Ricky said...

I came to Canada in 2001 and then the Canadian dollar was worth 66 cents as you said and it today it is $1.10. So, yes dollar is plunging but American economy is still very strong, what they are missing are taxes. It is still one of the lowest taxed country and no Govt. want to increase taxes and lose the next elections. I am sure it will again rise but not as much as it was before that's for sure.

I think Indian companies should also look beyond US because Canada is now paying price for its US dependancy with Manufacturers losing because of strong currency.