PTI should announce Pakistan is returning to the GOLD STANDARD

[AsifAmeer]

My Article in DAWN.
http://www.dawn.com/2011/07/25/returning-to-gold-standard.html

I know its not a recent article but when does Gold ever go out of fashion? It fixes
1. Inflation - Mehngai
2. Rupee devaluation
3. Reduces Govt corrution.
4. Forces a Balanced budget.

Demand this ffrom your Govts!




Returning to gold standard
Posted By InpaperMagzine On July 25, 2011 @ 6:05 am In Magazines > Economic and Business | Comments Disabled
SOVEREIGNTY gives a government the right to issue its own currency, levy taxes, and regulate international trade.
As money is the medium of trade, it is the most important aspect of the economy. Almost every empire has failed by mismanaging its money supply. Money shares the same market principles scarcer the supply, higher its value.


Issuing money against thin air dilutes the currency value. It is the most dangerous form of taxation taxation via inflation. Today in principle, the government prints currency against its foreign reserve balance the dollar.


The greenback itself is created out of thin air. The key to a stable economy is its stable currency. Treating the dollar as the foreign reserve currency goes back to the Bretton Woods agreement when the greenback was backed by gold.


The government has it wrong on both fronts money supply and taxation. The rupee was backed by gold via the dollar till 1971. It needs to be put back to the gold standard to bring in confidence and currency stability. Gold cannot be printed but is minted. This alone will stop the governments runaway spending.


There are many benefits of putting the rupee on a Gold Standard. Last year, Pakistan accumulated $17 billion in its foreign reserve. These reserves are built via valuable exports (cotton, wheat, fish, fruits, vegetables, etc). In return, Pakistan gets pieces of paper, called the dollar which then the government leverages to get more debt from the IMF. With the state of Pakistan-US relations, it would be prudent to buy gold instead of accumulating dollars Make a public announcement that every issue currency note of Rs5000 would be backed by one gm of 24ct gold coin. Hence the government would buy back its own Rs5000 note for one gm of 24ct gold. Then its should default on all its existing international debt.


Yes! You read it right. Iceland defaulted too. Sure, it was painful in the short run but they have already been upgraded by Fitch Rating Agency and the World Bank, the same institutions that promised doom and gloom for Iceland, if defaulted.


In the meantime, the impact of moving to the Gold Standard would change the realities on the ground. Imagine, going out for grocery and realising that prices of rice, atta and daal have fallen 10 per cent because gold prices have gone up compared to food prices.


Electric rates are falling because natural gas and oil prices are stabilising. From an international perspective, putting the rupee on the gold standard would guarantee a huge influx of foreign capital. Along with the currency policy agenda, the government would need to implement fair taxation for the social welfare.


Taxation is best divided on three levels: fixed tax percentage on the income side to cover the higher income bracket; fixed tax percentage on consumption to cover the lower income bracket and imports tax to regulate foreign trade and policies.






You can also view the whole article at http://financialweightloss.wordpress.com




@Afsr, [MENTION=20600]ajeeba[/MENTION], [MENTION=25107]amgsls[/MENTION], [MENTION=24375]AsifAmeer[/MENTION], [MENTION=9625]azrana[/MENTION], [MENTION=24746]Barbossa[/MENTION], [MENTION=5021]biomat[/MENTION], [MENTION=24792]brilTek[/MENTION], [MENTION=11207]canadian[/MENTION], [MENTION=13215]Cheeko[/MENTION], [MENTION=17151]chitra[/MENTION], [MENTION=12943]crankthskunk[/MENTION], [MENTION=9348]deshdrohi123[/MENTION], [MENTION=16839]EniGma90[/MENTION], [MENTION=18621]eysonm[/MENTION], [MENTION=9841]faiza[/MENTION], [MENTION=15977]falcons[/MENTION], [MENTION=9701]funkymonk[/MENTION], [MENTION=8825]gazoomartian[/MENTION], @GeoG, [MENTION=11343]hawk eyed[/MENTION], [MENTION=23969]indigo[/MENTION], [MENTION=19074]jujuju[/MENTION], [MENTION=8382]Justuju[/MENTION], [MENTION=12222]Kavalier[/MENTION]

 

[arslan4u]

Why demand EVERYTHING from PTI? Should PTI be burdened with each and every wish you have?

 

[arslan4u]

Dont get me wrong, i am against this paper currency system but the point is let PTI come to power, why does everyone add more and more things to the Wish List and expect PTI to fulfill every wish? PTI is not a genie.

 

[AsifAmeer]

Good point.

[h=2]PPP should announce Pakistan is returning to the GOLD STANDARD[/h]

​

See how retarded it sounds? thats why dude..

Zardari and Gold dont fly together!

Why demand EVERYTHING from PTI? Should PTI be burdened with each and every wish you have?

 

[cefspan]

Good point. [h=2]PPP should announce Pakistan is returning to the GOLD STANDARD[/h]

​

See how retarded it sounds? thats why dude..Zardari and Gold dont fly together!

Gaddafi was rolled out on this very issue I guess . He wanted gold payment for oil ( I Read Somewhere )

 

[Aliansari]

I think if IK only reduce Corruption to 50% This will be a great service to Pakistan and Pakistan will be back on track...

 

[arslan4u]

Good point.

PPP should announce Pakistan is returning to the GOLD STANDARD

​

See how retarded it sounds? thats why dude..

Zardari and Gold dont fly together!

You could say 'Pakistan should return to gold standard / Next government should announce returning to gold standard'. Lets wait and see what economic reforms PTI government brings.

 

[barca]

is ka koi tarjma v karay ?

 

[gazoomartian]

My Article in DAWN.
http://www.dawn.com/2011/07/25/returning-to-gold-standard.html

I know its not a recent article but when does Gold ever go out of fashion? It fixes
1. Inflation - Mehngai
2. Rupee devaluation
3. Reduces Govt corrution.
4. Forces a Balanced budget.

Demand this ffrom your Govts!




Returning to gold standard
Posted By InpaperMagzine On July 25, 2011 @ 6:05 am In Magazines > Economic and Business | Comments Disabled
SOVEREIGNTY gives a government the right to issue its own currency, levy taxes, and regulate international trade.
As money is the medium of trade, it is the most important aspect of the economy. Almost every empire has failed by mismanaging its money supply. Money shares the same market principles scarcer the supply, higher its value.


Issuing money against thin air dilutes the currency value. It is the most dangerous form of taxation taxation via inflation. Today in principle, the government prints currency against its foreign reserve balance the dollar.


The greenback itself is created out of thin air. The key to a stable economy is its stable currency. Treating the dollar as the foreign reserve currency goes back to the Bretton Woods agreement when the greenback was backed by gold.


The government has it wrong on both fronts money supply and taxation. The rupee was backed by gold via the dollar till 1971. It needs to be put back to the gold standard to bring in confidence and currency stability. Gold cannot be printed but is minted. This alone will stop the governments runaway spending.


There are many benefits of putting the rupee on a Gold Standard. Last year, Pakistan accumulated $17 billion in its foreign reserve. These reserves are built via valuable exports (cotton, wheat, fish, fruits, vegetables, etc). In return, Pakistan gets pieces of paper, called the dollar which then the government leverages to get more debt from the IMF. With the state of Pakistan-US relations, it would be prudent to buy gold instead of accumulating dollars Make a public announcement that every issue currency note of Rs5000 would be backed by one gm of 24ct gold coin. Hence the government would buy back its own Rs5000 note for one gm of 24ct gold. Then its should default on all its existing international debt.


Yes! You read it right. Iceland defaulted too. Sure, it was painful in the short run but they have already been upgraded by Fitch Rating Agency and the World Bank, the same institutions that promised doom and gloom for Iceland, if defaulted.


In the meantime, the impact of moving to the Gold Standard would change the realities on the ground. Imagine, going out for grocery and realising that prices of rice, atta and daal have fallen 10 per cent because gold prices have gone up compared to food prices.


Electric rates are falling because natural gas and oil prices are stabilising. From an international perspective, putting the rupee on the gold standard would guarantee a huge influx of foreign capital. Along with the currency policy agenda, the government would need to implement fair taxation for the social welfare.


Taxation is best divided on three levels: fixed tax percentage on the income side to cover the higher income bracket; fixed tax percentage on consumption to cover the lower income bracket and imports tax to regulate foreign trade and policies.






You can also view the whole article at http://financialweightloss.wordpress.com




@Afsr, @ajeeba, @amgsls, @AsifAmeer, @azrana, @Barbossa, @biomat, @brilTek, @canadian, @Cheeko, @chitra, @crankthskunk, @deshdrohi123, @EniGma90, @eysonm, @faiza, @falcons, @funkymonk, @gazoomartian, @GeoG, @hawk eyed, @indigo, @jujuju, @Justuju, @Kavalier

becharey Imran Khan ko mar waogey kia??

 

[Pak Falcon]

yar tum gold ka business kyun nahi start kar dete?

 

[InsafianPTI]

yaar America will definitely attack pakistan and kill Ik the first thing, have some mercy on the poor chap.

Good idea but I don't think its a good idea to start this debate now.

people don't have money to buy food how are we gonna afford it with practically 'the weakest economy'?

 

[contra]

[MENTION=24375]AsifAmeer[/MENTION]
1. If you have Gold Standard, then the government cannot simply print money to cover the deficit.
i.e., it won't have money to fund its many programs.

 

[AsifAmeer]

[MENTION=26112]barca[/MENTION] dude excellent point. Guys. Anybody willing to take up this task?

Wo kya hai na ka hum CIA agents ki urdu itni achi nahi hoti.

But guys.. seriously. Who can contribute here?

is ka koi tarjma v karay ?

 

[barca]

@barca dude excellent point. Guys. Anybody willing to take up this task?

Wo kya hai na ka hum CIA agents ki urdu itni achi nahi hoti.

But guys.. seriously. Who can contribute here?

purana gold aur silver b lay leatay ho ?

 

[AdamA]

 

[AsifAmeer]

[MENTION=6494]contra[/MENTION],

1st of all I was so glad to see that a Pakistani viewer had brought up an intelligent debate. Only to be saddenly to notice that you are from India. Dont get me wrong. I am saddened at the Pakistanis here. Why cant it be them? Go thru some of my threads and you will see the most rational comments from indian users.

Anyways, back to the issue. I could almost write a book to cover this issue. I love Friedman and have studied his Monetarist view. But heres where I differ.

How did the depression in the US start?
1. Credit was expanded to Rural America. Resulted in price inflation. Resulted in Farm land prices bubble. Busted and we're in a depression.

Now before we start to understand what should and shouldnt the Govt do, lets make 1 thing very clear. It was due to the expansion of this fiat credit that caused the overproduction in the farming sector. And when the bubble burst, commercial markets pulled the rug from underneath the markets. Interestingly during the boom-time, alot of gold poured into the US. Instead of expanding the money-supply, the Federal reserve contracted the money supply when the bubble burst. I am not advocating that the FED should expand or contract the money-supply but it was the commerical credit issuance that caused the bubble to begin with. Now ofcourse that counterfeit credit based bubble economy had to end because it was not based on REAL SAVINGS, we had a GREAT depression.

How did they fix it? By absorbing the bubble into the global markets. That time WW2 wound down the extra capacity which was PAID FOR BY THE EUROPEANS. So in short you can say, the great depression was wound down thru the European paid WW2.

But I assure you, they will never teach you this even in American Universities.

@AsifAmeer
1. If you have Gold Standard, then the government cannot simply print money to cover the deficit.
i.e., it won't have money to fund its many programs.

 

[Sayeen]

The idea needs to be understood. Sooner or later the world will realize (especially the BRIC countries: Brazi,l Russia, India &China ) that the US dollar is no longer a suitable reserve currency and together they will trade in only Gold. What will happen then?! All the dollars in our forex reserves will be useless (good only for trading with the US).

Its better to side with these emerging powers than to be on the side of a falling empire. Infact it would be better for everyone if the US decided to go back to the gold standard itself. There is already a growing domestic movement in the US for auditing the Fed Res Bank and adopting the Gold Standard. A country like Pakistan adopting the GS alone will not have an impact because we have to play within the rules set by the big boys. But its definitely beneficial for us if we side with countries who are going to be the next powers and hence make our policies in advance. i.e. sell all our dollar reserves at the right time and buy natural resources to use as bargain.

 

[AsifAmeer]

The world feared Qaddafi would make the best Pistols out of Gold and defeat all world armies. He was a supreme danger to the world insanity.

Gaddafi was rolled out on this very issue I guess . He wanted gold payment for oil ( I Read Somewhere )

 

[prolife]

Let the PTI come in power first. It is not wise for IK to get involved in such issues before getting any office big boys will make it hard for him.

 

[aneeskhan]

Gold standard means whatever you do have you have can,t cheat Bholey bhaley public increasing salary giving Raddi Kagaz,on one hand increasing prices 10 times.