See No Evil
columnist: illumenated1

Topic: Monetary Policy
Hey Brother, Can You Spare a Rupee?

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The falling US dollar has become more than an embarrassment. Bush's policies are driving the dollar into uncharted swampy waters.

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by illumenated1
(Libertarian)
Thursday, January 3, 2008

The Bush administration’s dismal economic policies have reached a new low. How low? Well let’s just say that when the mighty Indian rupee has more respect than the US dollar, our respect in the monetary world is swiftly swirling down the toilet.

For those who haven’t heard this latest gem, India's tourism minister, Ambika Soni, said Thursday that U.S. dollars will no longer be accepted at the country's heritage tourist sites, like the famed Taj Mahal.

For years the dollar was worth about 50 rupees and tourists visiting most sites in India were charged either $5 or 250 rupees. But with the dollar at a nine-year low against the rupee " falling 11 percent in 2007 alone and now hovering at around 39 rupees " that deal has become a losing proposition for the tourism industry.

According to the minister, the decision was only in part a reaction to the currency's plunging value. "Before the dollar lost its value, there was a demand to have (admission tickets) just in rupees," Soni said that charging only rupees would not only be more practical, but would save money because "the dollar was weaker against the rupee."

How do you say, "bullshit" in Hindi? This is but a glossed over attempt by the minister to politely say, "take your puny dollar and shove it!"

The Taj Mahal, India's famed white marble monument to love, which had charged tourists $15 or 750 rupees, has been refusing to accept dollars since November. The move makes visits pricier for American tourists, who now have to shell out nearly $20. And it's likely to get worse.

While the mighty buck has fallen against most major currencies, it has lost ground against the rupee due to an influx of foreign capital into India. "We expect a slight appreciation of the rupee to continue, although it won't be as dramatic as last year," said Agam Gupta, head of foreign exchange trading at Standard Chartered Bank in India.

Don’t know about you, but I am feeling a wee bit embarrassed about this. It was not too long ago that a pocket full of America dollars in any foreign country was cause for envy. Now we have to glance out the corners of both eyes before reaching into our pockets and purses to pull out a few greenbacks. It almost feels dirty.

Thanks Bush. Again you have proved you aren’t worth a falling dollar.

See No Evil

http://illuminated1.blogspot.com/

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2008 illumenated1, all rights reserved.
Published: Thursday, January 3, 2008
Last modified: Thursday, January 3, 2008

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