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Sunday, August 26, 2007

Modern World War

Atomic bombs are yesterday's news in the world of wars. Today countries have learnt to war against each other appropriate to the modern world. Money is the weapon in that war. Iran the fourth richest country in oil is in such a state that, you have to wait in line for hours to get fuel. Their Economic Policy is not right, it seems.

Zimbabwe known for its cricket is in a state of confusion today. You need about 10,000 Zimbabwe money to buy a loaf of bread. The reason behind this is their economy or more precisely the government's handling of its economic policies is the general opinion.

Even a small change or correction on economic policies can lead either to major achievements or downfall. That's equal to waging a war with atomic weapons.

The latest in this line of war is China and USA's war of Trade. Unlike India, China has not changed the value of its currency for a long time, thereby getting the Dollar advantage. (India on the other hand has been increasing its currency value which is a known fact)
America is under the pressure to change the value of the undervalued Chinese currency but the Chinese are not interested. But they are constantly on pressure from America. If pressured too much China is threatening to sell its reserve of 1.3 trillion American Dollars which they have, which will cause a major economy crash in the United States. But that would have ripple effect on the economies of both India and China.

If we try to bring down one another to get revenge, it will end up bringing trouble to everyone involved. So, it's better to live and let live.

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