Financial interconnect
This refers to ‘Market may tame MAGA ambitions’ (April 15). When US policymakers impose reciprocal tariffs on trade partners, they often overlook the financial interdependence that underpins the global economy. The US relies on these very nations to fund its trade deficits by investing in US Treasury and debt instruments.
Though the dollar’s safe haven status sustains demand for US securities, the US accounts for only 11-12 per cent of global trade, while over 85 per cent of trade involves other countries. Unsurprisingly, major creditors like China and Japan have been gradually reducing their US holdings, contributing to higher interest rates and adding to domestic pressures.
The global dominance of the dollar demonstrates America’s external financial support driven by the dollar’s reserve currency role.
Srinivasan Velamur
Chennai
BJP-AIADMK alliance
Apropos ‘Strategic move’ (April 15), in an attempt to make inroads in Tamil Nadu, which has proved elusive for it so far, the BJP stitched up an alliance with the AIADMK for next year’s Assembly election. It even dropped Annamalai from the post of State president on the demand of AIADMK. For the BJP, it is a win-win situation because on its own it cannot hope to make any dent in the State, but riding piggyback on the Dravidian party may be beneficial.
The electoral arithmetic in Tamil Nadu will become clearer in the next few months, as many parties are playing their cards close to the chest. With the allegations of corruption by Amit Shah against the DMK, there is also the likelihood of the central agencies being more active in the State. But it remains to be seen if Tamil voters will shed their antipathy to what they see as a north Indian party and give the BJP a chance.
N Sadhasiva Reddy
Bengaluru
Retail inflation
This refers to ‘Retail inflation may ease to 3.8-4 per cent in March’ (April 15). Inflation hurts the poor, lower middle class and middle-class people the most and they form the majority of this populous nation. Hence inflation should be fought on a large scale. One of the important measures to tackle inflation is to prevent hoarding of food by black-marketers and other traders. Strict laws should be enforced. Secondly due to lack of a good/modern storage facilities foodgrains are often allowed to rot in the open. Hence the government should, on a war footing, build a modern storage systems to store our bumper stocks.
Thirdly there should be co-operation and active communication between States for movement of food items. Good roads and a smooth transport system facilitate this.
Veena Shenoy
Thane