Islamabad Tonight - 31st May 2012 - Dr Hafeez Pasha - Story of Economic Crisis

[Islamabad Tonight]

 

[AsifAmeer]

Listen very carefully to the last 2 minutes of the first clip!
You know what he's talking about? He's hinting that Markets will be forced to admit that inflation is higher than 11~12% and holding Govt bonds is costing them capital. Markets will dump the Govt bonds, forcing the bonds to loose value. Commercial Banks are holding huge sums of Govt Bonds as their tier 1 capital reserves on their balance sheets. If these bonds loose values, the whole Pakistani Banking system is toast.

@Keepinformed @Unicorn @Temojin @Aleph @concernedpaki [MENTION=14890]mrk123[/MENTION]

 

[Unicorn]

Listen very carefully to the last 2 minutes of the first clip!
You know what he's talking about? He's hinting that Markets will be forced to admit that inflation is higher than 11~12% and holding Govt bonds is costing them capital. Markets will dump the Govt bonds, forcing the bonds to loose value. Commercial Banks are holding huge sums of Govt Bonds as their tier 1 capital reserves on their balance sheets. If these bonds loose values, the whole Pakistani Banking system is toast.

@Keepinformed @Unicorn @Temojin @Aleph @concernedpaki @mrk123

What happens if they keep raising interest as they have done in the past???????

 

[A.Ali.T]

What happens if they keep raising interest as they have done in the past???????

That will slow down the economy even further.

 

[Temojin]

Listen very carefully to the last 2 minutes of the first clip!
You know what he's talking about? He's hinting that Markets will be forced to admit that inflation is higher than 11~12% and holding Govt bonds is costing them capital. Markets will dump the Govt bonds, forcing the bonds to loose value. Commercial Banks are holding huge sums of Govt Bonds as their tier 1 capital reserves on their balance sheets. If these bonds loose values, the whole Pakistani Banking system is toast.

@Keepinformed @Unicorn @Temojin @Aleph @concernedpaki @mrk123

Wah ji wah soodi nizaam ko khatm ker dia jayega :) On a serious note, many of the people know that they only have this term to fulfill their dreams and fill their pockets no matter what happens to the country so they would do it and then flee or try to flee and if they come again, then they would go even further and do worse in days and months because then they would know that they will have to flee as soon as possible.

Abhi to har ghar mein zardari peda ho raha hai aur phir niklega bhi, the way things are going, everyone's hunger will take him to the level of greed he possesses and that is the day I dread.

 

[Unicorn]

That will slow down the economy even further.

That is the lesser of two evils and they will do it. @AsifAmeer .. May they will pick the worst of two

 

[only_truths]

May they will pick the worst of two

That's correct. Take any dire situation they were in - what they choose?

e.g Raymond Davis case - Chose blood money than sending him to prison, Similarly in NATO route opening, Ghairat is gone now, bargaining transit fees has taken center stage to get as much money as possible to help domestic economic crisis.

@ Asif Ameer - Pakistani economic system will go on like this as long as they have some thing to negotiate. Worst to worst, the last stage will be bum, that is the reason their production is going up, so that in case if that is to be traded, then number of bums matter.

 

[AsifAmeer]

What happens if they keep raising interest as they have done in the past???????

That will slow down the economy even further.

That is the lesser of two evils and they will do it. @AsifAmeer .. May they will pick the worst of two

There are 2 outcomes to it.

• Either the Govt will default on its public debt
• Or State Bank will continue to issue more debt to the Govt, risking a Rupee devaluation and finally a collapse.

Acha if they raise the rates and SBP refuses to issue more debt to the Govt, Govt default and there's a Greek-type scenario on the streets.. Banks WILL crash because all the Govt bonds will be worthless. This is the best of the 2 scenarios...

 

[AsifAmeer]

There is no doubt in my mind that the country will default on its foreign debt. But Pakistan should default sooner than later and preserve its reserves rather them use to pay off the debt.

Yaar explain me something. We see suicide bombers blowing up Shias, sunnis, Imam-barah, Dargas, Masjids, Julus everywhere but the PM house, but the Bilawar house.. They blow up Marriots, PC, Pizzahuts McD... Why not the PM and the Governer and the Parliament?

That leads me to believe that all these terrorism events are state-controlled.

Wah ji wah soodi nizaam ko khatm ker dia jayega :) On a serious note, many of the people know that they only have this term to fulfill their dreams and fill their pockets no matter what happens to the country so they would do it and then flee or try to flee and if they come again, then they would go even further and do worse in days and months because then they would know that they will have to flee as soon as possible.

Abhi to har ghar mein zardari peda ho raha hai aur phir niklega bhi, the way things are going, everyone's hunger will take him to the level of greed he possesses and that is the day I dread.

 

[Temojin]

There is no doubt in my mind that the country will default on its foreign debt. But Pakistan should default sooner than later and preserve its reserves rather them use to pay off the debt.

Yaar explain me something. We see suicide bombers blowing up Shias, sunnis, Imam-barah, Dargas, Masjids, Julus everywhere but the PM house, but the Bilawar house.. They blow up Marriots, PC, Pizzahuts McD... Why not the PM and the Governer and the Parliament?

That leads me to believe that all these terrorism events are state-controlled.

Yaar idher boloonga na to eik aur gutter khul jayega, phir kabhi. yeh jo bechte hain suicide bombers yeh business hai yeh jihad nahi hai so they do whatever they are paid for.

 

[AsifAmeer]

I honestly dont get it. What is your life worth to you? What good is that money that you get for your death? If you arent dying for principles, what good is that death?

Maybe I refuse to understand this...

Yaar idher boloonga na to eik aur gutter khul jayega, phir kabhi. yeh jo bechte hain suicide bombers yeh business hai yeh jihad nahi hai so they do whatever they are paid for.

 

[Temojin]

I honestly dont get it. What is your life worth to you? What good is that money that you get for your death? If you arent dying for principles, what good is that death?

Maybe I refuse to understand this...

The lad who blows himself up is actually doing jihad and killing Mushrikeen because he has gone through a number of brainwashing procedures including but not limited to extreme trauma while watching his family members or mates getting killed which might be a drone attack or a grenade by the very butchers who would prepare him i.e (ranging from TTP to many big names in Pakistan) or an attack by the military uniform-clad people who would look like kuffar (as you know many foreign jihadi elements are present in the tribal belt so not an issue), then diminished self-esteem getting the bloke through a process of watching military training of "mushrikeen" and getting him physically beaten up by boys shorter or apparently weaker than him (highly trained in hand-to-hand combat) and then after all the methods, the one and only religious method which is implied at the end which makes the boy believe that he is weak, can't take revenge of his family and if at all he has to take revenge, why not on a mass of kuffar and mushrikeen, then he is educated through a limited ideology by some so called sheikhs (whose name if I take, it would open an irrelevant debate here) and then he is ready to go for jannat, oops sorry jannah and get metamorphosized into an individual who is lethargic and ready to kill himself because he can't ever win in a direct one-to-one combat with enemies so he goes to such and such place and blows himself up and the people who sent him make ranging from 5-50 million (last years' figures). There is a lot more to it as well than only money but as they say, follow the money and you know it better than I do.

Personally I believe that the lad who is given this training is actually forgiven because he knows nothing but this and goes for serving Allah only but what about those who tell it all to him?

 

[AsifAmeer]

so these are teenage kids?

The lad who blows himself up is actually doing jihad and killing Mushrikeen because he has gone through a number of brainwashing procedures including but not limited to extreme trauma while watching his family members or mates getting killed which might be a drone attack or a grenade by the very butchers who would prepare him i.e (ranging from TTP to many big names in Pakistan) or an attack by the military uniform-clad people who would look like kuffar (as you know many foreign jihadi elements are present in the tribal belt so not an issue), then diminished self-esteem getting the bloke through a process of watching military training of "mushrikeen" and getting him physically beaten up by boys shorter or apparently weaker than him (highly trained in hand-to-hand combat) and then after all the methods, the one and only religious method which is implied at the end which makes the boy believe that he is weak, can't take revenge of his family and if at all he has to take revenge, why not on a mass of kuffar and mushrikeen, then he is educated through a limited ideology by some so called sheikhs (whose name if I take, it would open an irrelevant debate here) and then he is ready to go for jannat, oops sorry jannah and get metamorphosized into an individual who is lethargic and ready to kill himself because he can't ever win in a direct one-to-one combat with enemies so he goes to such and such place and blows himself up and the people who sent him make ranging from 5-50 million (last years' figures). There is a lot more to it as well than only money but as they say, follow the money and you know it better than I do.

Personally I believe that the lad who is given this training is actually forgiven because he knows nothing but this and goes for serving Allah only but what about those who tell it all to him?

 

[Temojin]

so these are teenage kids?

yes as they are the easiest target