Administration & Management

A Chill down the Spine & resultant Shuddering Cadence in Voice of United States Economy: Is it recession knocking at the doors…

Recap of Act- 1 of the play……..just for linking the thread…..of continuum…to….Act-2 ….

Welcoming the audience to the play titled “Is it a spiral of recession knocking at the doors…”

The stage….United States of America….. & lead actor…..United States Economy…..it’s year 2007…midway…..

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EURO & TOMORROW

A small financial earthquake with Greece as its epicenter has suddenly exposed the vulnerability of EURO [€] which till now on all the positive sentiments and emotions was growing from strength to strength. The experts started murmuring as if ‘€’ was heading to replace US $ as a world currency. To utter surprise, these murmurings were not ensuing any sudden discovery of some hidden attribute of ‘€’ that made it invincible. Comprehending the reasons leading to such developments was not less than any enigma for people, save those experts. In absence of any rationale, the rationality was even in fix. Now it was turning extremely important and urgent to search the reasons behind it. Any rational individual can never be in rest having landed in a state of permanent disorientation.

Swapping the Position -- Story of US Dollar and Euro

But then curiosity has its own merits. So if nothing positive was happening in euro zone and particularly with ‘€’ itself, then the next probable reason could be hunted in happening of something negative at a greater rate with any of its counterparts.

Search on these lines started yielding positive developments very soon. Probably it had much do with the sense of insecurity created as a consequence of turbulence, aftershocks created due to grounding of giants of US economy and resultant acceleration of volatility in market value of US Dollar.

The Greece debacle had proved the inability of ‘€’ zone in managing with, what is known as Sovereign Debt Crisis.

The symptoms hidden under the curtain and therefore out of site were of much more grave nature than those of U S economy. Any experienced hands could have easily felt that the Average – Debt – to- GDP ratio that was exhibited by Euro Zone to feel comfortable was not a homogenous outcome.

It was sheltering a great difference in the way of lack of any mechanism, when it comes to deal with a situation termed sovereign debt crisis. The feel of it alone was capable enough to cause a crack in smooth warm smile.

U S Dollar in Transition

Here I stop myself to let you feel the second dip of recession. The actors and stage both have changed probably for the time being.

So, to remind you,

It’s being once again repeated that the

stage now happens to be Europe [€ Zone],

& the participating actors would be economies of nations forming € Zone.

We will meet once again after the end of this act to see how the story ends or is it unfolding of just another act.

So you are welcome to……the year…2010….spring…..

……………Always Yours……….As Usual……………….Saurabh Singh