- Apr 29, 2015
Affluent societies with rich populations like US and UK were never expected to ever default. Investors trusted British and American blindly for returns and their governments never needed to keep any reserves.how come UK forex reserves average only about 100 billion $?
is it the case that, for them foreign exchange is available so freely that they don't need to maintain huge forex?
In case of newly industrialised states like China and India whose future wasn't certain, they needed to maintain huge reserves to assure investors that they can bail themselves and investors out of any eventuality.
These things might change from now on as countries like UK become Argentina and perceptions change.
In case of India, western and Chinese recession is going to be better, push it into a relatively stronger position in a short span of time just like COVID-19 brought China.Of course.
>We're in a recession
>Here's why that's a good thing
>10 ways a depression could be really good for you
>Here's why total collapse is a good thing.