Dollar `Vulnerable' to Drop in Investment, BIS Says

I am very concerned with ``vulnerable'' dollar. We are the on the top because the world trusts us with their money. If we can't maintain our superiority over others, there is a fear that people will explore ways to put their money elsewhere. We have closed our eyes to our money and opportunities going to other countries like India and China. We have our borders open to state-sponsored migration on our southern borders. We are sending our low paid jobs to India and China and at the same time we are allowing uneducated migrants to cross our borders from Mexico. I am afraid that we might be moving towards a developing country like mentality here.

I am very concerned with India and China's foreign currency holdings. "The Indian rupee has gained 8.6 percent against the dollar in 2007, compared with a 1.7 percent advance for the whole of last year. The Chinese yuan has climbed 2.4 percent so far this year, after rising 3.3 percent in 2006." We might see some Indian and Chinese companies starting to buy U.S. businesses at a cheap price.

2008 presidential elections are still about 17 months away. I am hoping that the Congress will take a note of this emerging situation and will act fast in the larger interests of the country. I am keeping my fingers crossed.

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