By Hem Raj Jain,(Author of ‘Betrayal of Americanism’)
For a long time people have been complaining that the foreign exchange system where presently $ 1 = Rs. 60 is highly discriminatory against India as given below:-
(1)- As per official data of both countries, in 1945 $ 1 was equal to Rs 1. In these 69 years the wholesale prices in USA have increased ~ 13 times whereas in India if we take this inflation ~ 100 times even then inflation in India during this period has been only ~ 8 times more than inflation in USA. which, as per basic principle of economics, means that now $ 1 should be equal to maximum Rs 8.
(2)- But presently we are paying Rs 60 for $ 1. This is an open loot. Because when an American purchases something from India worth $ 1, we give him a thing worth Rs 60, whereas we should be giving him a thing worth ~ Rs 8 only. And when an Indian purchases some thing worth $ 1 from USA he has to pay Rs 60 whereas he should be paying Rs 8 only. (thus we are losing Rs 52 on every $ 1 of import export transaction). Moreover if foreign trade deficit of India is say ~ $ 200 Billion, then we have to make-it up by 60 x 200 Bn = 12 Trillion Rupees, which is more than total budget revenue of Government of India (its consolidated fund). [this renders the argument of exporters (that weak currency promotes export), untenable and even mischievous, to say the least].
(3)- This open loot is going on because every country has to trade in Dollar. Moreover like most other currencies of the world, Dollar is also a fake money because it is not properly backed-up by assets (precious metals , land, landed properties etc). It has created a situation in West (USA & its European Allies) where public debt more than 60 % and even up-to 200 % of GDP have been incurred under the pressure of ‘Usurers’ (without discharging the responsibility of Welfare-State namely of solving huge unemployment problem though this public debt is incurred through fiscal deficits in the name of ‘Welfare-State’). Under the pressure of interest earners even in India despite Article 292 & 293 of Indian Constitution public debt (under the cover of unconstitutional FRBM) is many times more than consolidated fund of governments (with the result as happened in West Bengal also, the Chief Minister has been frequenting Delhi to get concession on loan payment because after serving public debt W.B. is left with hardly any money to discharge the sovereign responsibilities of State). In USA the situation is more bad because in the name of ‘Quantitative Easing’ USA produces trillions of Dollars as fake money, even without the knowledge of US Congress.
(4)- This compulsion to trade only in Dollars and this huge amount of fake money doing round across the globe is the reason of most of the economic problems of the world. But the West does not want to rectify the predatory monetary system of the world dominated by West. Here it is in context to add that contrary to general belief that ‘US War of Independence’ was mainly fought because Americans said that ‘no taxation without representation’, rather major reason for ‘US Revolution’ was the opposition of UK to currency created by some States of USA against asset back-up of land and landed properties. [the colonies of Massachusetts and Pennsylvania had started currency against asset back-up of not the precious metals like gold & silver under physical possession but other assets like land under constructive possession of money issuing authority (redeemable in eight years and at 5% interest which brought so huge money to Government at Philadelphia that taxes had to be reduced) and which UK tried to demolish by printing counterfeit currency].
(5)- What UK was doing in 1770s to various colonies in USA, somewhat similar is being done by present superpower USA to rest of the world despite still on-going economic crisis of 2007 which was caused due to fake fiat paper money (without proper asset back-up) and which has destabilized global economic & financial system and has brought immense economic hardships and other problems for the entire world.
One very simple solution to all these problems is proper ‘Global Currency’. Therefore India should take the lead in mobilizing world opinion and work for launching ‘Global Currency’ with proper asset back-up under physical and constructive possession of money issuing authority (may be at UN), with its branches in different member countries.
(6)- Though it is easy said than done, not because it involves any complication or any huge amount of work. But for the simple reason that West will not give-up this open loot so easily. If UK could force ‘US Revolution’ to protect its predatory monetary system, USA may also do the same with any country which ever tries to replace the present monetary system of Dollar (with monopoly in foreign transaction) and other powerful fake currencies. Though exact truth may never be known but according to an US Congressman as reported in media “ Saddam Hussein was about to begin selling oil using not the US dollar. This would have weakened the value of the dollar and undermined the US economy. That is the unpublicized reason for the elimination of Saddam Hussein by USA”.
All the earlier governments in India have been the servants of fake & predatory money system of the West. But presently India can get the solution through said proper ‘Global Currency’ in this age of globalization. Because presently India not only has a Foreign Minister Sushma Swaraj who is known to be a brave person but is also being led by a brave Prime Minister Narendra Modi with ’56 inch ka Seena’ [(Chest) – no pun intended] and is being ably supported as Minister of State in MEA by General V.K. Singh (the ex-Army Chief) – all exceptionally brave people, who will not be afraid of USA (in particular and of West in general) in order to protect such vital & crucial interests of India.