QUANTITATIVE EASING by State Bank of Pakistan - Your source of Inflation - Rs 1.4 TRILLION to the Ba

[AsifAmeer]

13 Institutions - Rs 67.1 Billion Jun 07, 2012 - (SBP's Repo Statement)

State Bank of Pakistan injects Rs155 billion May 25th, 2012

SBP injects Rs 27.450 billion in reverse repo May 22nd, 2012

The State Bank of Pakistan injects Rs169.550 billion May 18th, 2012

SBP injects Rs111.350 billion in reverse repo 11th May, 2012

SBP injects Rs 200 billion in the market 13 Apr 2012

SBP injects Rs223bn into banking system 27 Mar 2012

SBP injects Rs 346.250 billion in the market 9 Mar 2012

State Bank of Pakistan injects Rs 37 billion 7 Feb 2012

SBP injects Rs 270.650 billion in the market 3 Feb 2012

SBP injects Rs 41.400 billion in the market 10 Jan 2012

SBP injects Rs 175.050 billion in the market 6 Jan 2012

---

TOTAL = Rs 1.5931 TRILLION

Since the start of 2012, State Bank has PRINTED Rs 1.59 TRILLION rupee and HANDED it to the BANKS! Govt printing to alag hain.







I will paste my comment from my previous thread here.

First is the Banks that have loaned money to these IPP, their Balance sheet will detoriate, which may result a run on the bank by mutual funds. Maybe these banks will go belly up. Seeing this, other banks will get nervous about holding commercial paper with sovereign guarantee and they will start to dump it. Once the boat rocks, it rocks everything. Treasuries will get a jolt too. If treasuries move, that risks the whole Pakistan Banking sector because every commercial bank is up to eyeball in treasuries. ​

If State Bank steps in to provide liquidity to the REPO market to make a dent, the action risk rupee devaluation because there is no reserve to support the new liquidity. For State Bank, it may come down to "Either the Banks or the Rupee"


NEWS Update : May 22nd, 2012
SBP injects Rs 27.450 billion in reverse repo May 22nd, 2012

NEWSUpdate:May 25th 2012
State Bank of Pakistan injects Rs155 billion
TOTAL = Rs 1.5864 TRILLION
​

 

[Temojin]

I have sold my car and plan to buy 50 Aks and loads and loads of ammo :)

Looks like PPP isn't sure about coming to power again so they are making a try to win elections by doing this, if they come again (God forbid) and have only a year or two, they will loot to the maximum before their government is ousted. Or if they don't come into power, the next government would be upside down while trying to deal with these issues just like our beloved musharraf and Co. did.

 

[Keepinformed]

If the local demand exists, then all this inflationary pressure would even out over the course of reasonable time.

Unnecessarily giving 100 candies to 10 kids when they require only 10 can cause inflation of candies.

Giving 100 candies to 120 kids will cause will cause social problems such as formation of fat kid, smart kid, black kid, brown kid type political parties. Not to mention big kids those who have the guns. They then all start crying and fighting over topics such as fatness, smartness, blackness, browness and deservedness to get hold of maximum number of candies. Interestingly this reminds me of a place called The Earth.

Giving 100 candies to 1200 kids is just asking for wars amongst kids.

Demand based printing is necessary. The population demands it. Growth or Fatness of kids will follow once they start eating all the extra candies.

Money is like candy. Cant get enough...

 

[AsifAmeer]

Rupee wont make it unless Pakistan is bailed out again by US/IMF/WorldBank. Even any bailout will only buy time. Eventually this external debt has to be defaulted on. Its the divine nature of Microsoft Excel.

I feel PPP should win the re-election. Reason why I say this is because this will get so out of control, that not the looming disaster will put an end to PPP but it will literally put an end to those who would dare to call themselves PPP. Its gonna be show for all, out in the public, buffet style, clean up.

If anyone else wins, that party will get a similar wrath. Let it be PPP then. Let put this party PPP beside its leader...

I have sold my car and plan to buy 50 Aks and loads and loads of ammo :)

Looks like PPP isn't sure about coming to power again so they are making a try to win elections by doing this, if they come again (God forbid) and have only a year or two, they will loot to the maximum before their government is ousted. Or if they don't come into power, the next government would be upside down while trying to deal with these issues just like our beloved musharraf and Co. did.

 

[AsifAmeer]

>>If the local demand exists, then all this inflationary pressure would even out over the course of reasonable time.
??? Inflation is due to lack of goods and the increase in demand (i.e. more liquidity than goods produced). Comon yaar.. u know that!


>>Unnecessarily giving 100 candies to 10 kids when they require only 10 can cause inflation of candies.
I dont believe in communism. Let whoever wants to work for it,let him EARN him. Let the pricing mechanism work. Let money provide the signaling mechanism in the economy.


>>Demand based printing is necessary.
Sure.. lekin demand from goods produced to get absorbing in the economy with new money.

>>The population demands it
If that were the case, Nigeria could print according to its population and be rich?

Total value of the money supply = Goods and services you can buy from that money.

If the local demand exists, then all this inflationary pressure would even out over the course of reasonable time.

Unnecessarily giving 100 candies to 10 kids when they require only 10 can cause inflation of candies.

Giving 100 candies to 120 kids will cause will cause social problems such as formation of fat kid, smart kid, black kid, brown kid type political parties. Not to mention big kids those who have the guns. They then all start crying and fighting over topics such as fatness, smartness, blackness, browness and deservedness to get hold of maximum number of candies. Interestingly this reminds me of a place called The Earth.

Giving 100 candies to 1200 kids is just asking for wars amongst kids.

Demand based printing is necessary. The population demands it. Growth or Fatness of kids will follow once they start eating all the extra candies.

Money is like candy. Cant get enough...

 

[Keepinformed]

>>If the local demand exists, then all this inflationary pressure would even out over the course of reasonable time.
??? Inflation is due to lack of goods and the increase in demand (i.e. more liquidity than goods produced). Comon yaar.. u know that!


>>Unnecessarily giving 100 candies to 10 kids when they require only 10 can cause inflation of candies.
I dont believe in communism. Let whoever wants to work for it,let him EARN him. Let the pricing mechanism work. Let money provide the signaling mechanism in the economy.


>>Demand based printing is necessary.
Sure.. lekin demand from goods produced to get absorbing in the economy with new money.

>>The population demands it
If that were the case, Nigeria could print according to its population and be rich?

Total value of the money supply = Goods and services you can buy from that money.

1. The fallacy of Pakistan's inability to produce results when it comes to products and services is incorrect. Despite all the pitying factors involved in the economic condition of this land, our businessmen have found ways to produce excellent results. Pakistan is the second largest exporter of clothing in the World, despite the power and security problems.

2. The population growth and especially the young adults (20 plus) are the instrumental parts of this rapidly growing body we call Pakistan. Granted the jobs are not available in abundance due the lack of enough pace of growth NOT easily available skill but all these matters are being addressed in their own natural order like it happens every where in all majorly populated countries.

3. Again like I have said repeatedly, Pakistan's problem is NOT its demand and supply logics but mismanagement of its available resources. If you give 90% of your income to the Army and expect the growth level to be maintained at pace of the population growth then a visit to the clinic might be in order.

4. Nigeria's example is out of context and for your information, Nigeria is booming economy of Africa. The economic situation of Nigeria is better than Pakistan and it has already reached the middle level income status according to World Bank.

5. Pakistan has brains like you and in millions and best of all we mass produce due to our strict Islamic beliefs (More muslim policy). Its only natural that over time we will reach a stage where skill sets average out and we gain the status of middle income country.

Some benefits we have that other African nations may not have

1. 6th largest population in the world

2. The massive number of immigrant Pakistanis who are collaborating in their own way to integrate Pakistan. Your presence and concern for Pakistan being in the United States is one little small proof of that.

3. In house entrepreneurs especially fresh graduates who manage to stay back in Pakistan are creating new companies every day. Lahore and Karachi are biggest examples.

4. Our international treaties with world powers who can inject necessary debt into the system or just plain aid.

5. Democracy though fragile needs time to build. Our freedom of speech. Free media and openness. I can call our Army General and Prime Minister a dirty whore banger and still manage to survive. Guess doing that in countries like the Middle East despite all their wealth the people are suppressed to levels of old day slavery.

6. The new relationship with India should really allow local businessmen access to over 1 billion clients. If Pakistanis can manage just 1% of Indian clients, they can get access to 10 million new customers. Do you know that our artists have become billionaires by launching their media talents in India?

------------

Democracies are not perfect. They take time. Perhaps another decade or so but eventually our brains will figure it all out.

There are gutters but then there are gutter cleaners also.

Species will find their ways to survive. Look at Somalia..they have a booming ship thugging business!

 

[Unicorn]

I have sold my car and plan to buy 50 Aks and loads and loads of ammo :)

Looks like PPP isn't sure about coming to power again so they are making a try to win elections by doing this, if they come again (God forbid) and have only a year or two, they will loot to the maximum before their government is ousted. Or if they don't come into power, the next government would be upside down while trying to deal with these issues just like our beloved musharraf and Co. did.

Ha ha [MENTION=24375]AsifAmeer[/MENTION] , what is your opinion on this great investment idea? It looks really good to me.

 

[AsifAmeer]

Ur right about Nigeria. Its an improving economy (due to Oil). Its almost funny that Nigeria is doing better than Pakistan.

Lekin tumhari sari baatein theek hai but when you look at the details, things arent optimistic. World's 6th largest population is uneducated. Even the educated cant handle a civil conversation or compose business correspondence.

You're right about mismanagement.. and Army's budget. I say the biggest drag is the repayment of the foreign debt! Its time to default on it.

Acha.. one important thing. Pakistan (not even the US) is a democracy. Nations are REPUBLICs. Rule of LAW is above the RULE of the MOB. You see ground reality in Pakistan as otherwise.

1. The fallacy of Pakistan's inability to produce results when it comes to products and services is incorrect. Despite all the pitying factors involved in the economic condition of this land, our businessmen have found ways to produce excellent results. Pakistan is the second largest exporter of clothing in the World, despite the power and security problems.

2. The population growth and especially the young adults (20 plus) are the instrumental parts of this rapidly growing body we call Pakistan. Granted the jobs are not available in abundance due the lack of enough pace of growth NOT easily available skill but all these matters are being addressed in their own natural order like it happens every where in all majorly populated countries.

3. Again like I have said repeatedly, Pakistan's problem is NOT its demand and supply logics but mismanagement of its available resources. If you give 90% of your income to the Army and expect the growth level to be maintained at pace of the population growth then a visit to the clinic might be in order.

4. Nigeria's example is out of context and for your information, Nigeria is booming economy of Africa. The economic situation of Nigeria is better than Pakistan and it has already reached the middle level income status according to World Bank.

5. Pakistan has brains like you and in millions and best of all we mass produce due to our strict Islamic beliefs (More muslim policy). Its only natural that over time we will reach a stage where skill sets average out and we gain the status of middle income country.

Some benefits we have that other African nations may not have

1. 6th largest population in the world

2. The massive number of immigrant Pakistanis who are collaborating in their own way to integrate Pakistan. Your presence and concern for Pakistan being in the United States is one little small proof of that.

3. In house entrepreneurs especially fresh graduates who manage to stay back in Pakistan are creating new companies every day. Lahore and Karachi are biggest examples.

4. Our international treaties with world powers who can inject necessary debt into the system or just plain aid.

5. Democracy though fragile needs time to build. Our freedom of speech. Free media and openness. I can call our Army General and Prime Minister a dirty whore banger and still manage to survive. Guess doing that in countries like the Middle East despite all their wealth the people are suppressed to levels of old day slavery.

6. The new relationship with India should really allow local businessmen access to over 1 billion clients. If Pakistanis can manage just 1% of Indian clients, they can get access to 10 million new customers. Do you know that our artists have become billionaires by launching their media talents in India?

------------

Democracies are not perfect. They take time. Perhaps another decade or so but eventually our brains will figure it all out.

There are gutters but then there are gutter cleaners also.

Species will find their ways to survive. Look at Somalia..they have a booming ship thugging business!

 

[AsifAmeer]

Go long on Gold and short on silver. The Gold/Silver ratio volatility is your profit spread!

Ha ha @AsifAmeer , what is your opinion on this great investment idea? It looks really good to me.

 

[Keepinformed]

Ur right about Nigeria. Its an improving economy (due to Oil). Its almost funny that Nigeria is doing better than Pakistan.

Lekin tumhari sari baatein theek hai but when you look at the details, things arent optimistic. World's 6th largest population is uneducated. Even the educated cant handle a civil conversation or compose business correspondence.

You're right about mismanagement.. and Army's budget. I say the biggest drag is the repayment of the foreign debt! Its time to default on it.

Acha.. one important thing. Pakistan (not even the US) is a democracy. Nations are REPUBLICs. Rule of LAW is above the RULE of the MOB. You see ground reality in Pakistan as otherwise.

Everything evens out given enough time. All humans are advanced monkeys with the ability to shave off their hair but the fact remains otherwise. Things are not perfect but you know what? things will even out with time provided monkeys are allowed to choose the leader within the pack.

 

[Unicorn]

Go long on Gold and short on silver. The Gold/Silver ratio volatility is your profit spread!

I would seriously consider this great FREE advice-Thanks or I just might diversify with Temujin's Idea.

 

[AsifAmeer]

Thats call HEDGING... calculated hedging..

I would seriously consider this great FREE advice-Thanks or I just might diversify with Temujin's Idea.

 

[Temojin]

Ha ha @AsifAmeer , what is your opinion on this great investment idea? It looks really good to me.

Go long on Gold and short on silver. The Gold/Silver ratio volatility is your profit spread!

I would seriously consider this great FREE advice-Thanks or I just might diversify with Temujin's Idea.

Ok, lets do it like this, a bit of gold and a few AKs to guard it.:), verna it could come to this, ham Badshahaan e hindustan ki aulaad hain ham lia nahi kerte dia kerte hain quoting my Taya jaan who when migrated to Lahore, said it to commissioner of Sialkot who had offered that whichever factory and whichever property Mirza sahab would put his hand on would be his, be it the whole sialkot evacuee property.

I wonder if rich people are so worried, what would people like me do if it comes what we are dreading.

 

[AsifAmeer]

At the dining table.. I cussed out Zardari and prayed he dies without a burial along with his seeds. My sister gives me a nasty look and says I shouldnt curse anyone of death. I looked at her and said "I am not cursing. I m just blessing the Pakistanis!"

If you present your argument right, even taking could be explained as giving!

Ok, lets do it like this, a bit of gold and a few AKs to guard it.:), verna it could come to this, ham Badshahaan e hindustan ki aulaad hain ham lia nahi kerte dia kerte hain quoting my Taya jaan who when migrated to Lahore, said it to commissioner of Sialkot who had offered that whichever factory and whichever property Mirza sahab would put his hand on would be his, be it the whole sialkot evacuee property.

I wonder if rich people are so worried, what would people like me do if it comes what we are dreading.

 

[rfarooqi]

Ur right about Nigeria. Its an improving economy (due to Oil). Its almost funny that Nigeria is doing better than Pakistan.

Lekin tumhari sari baatein theek hai but when you look at the details, things arent optimistic. World's 6th largest population is uneducated. Even the educated cant handle a civil conversation or compose business correspondence.

You're right about mismanagement.. and Army's budget. I say the biggest drag is the repayment of the foreign debt! Its time to default on it.

Acha.. one important thing. Pakistan (not even the US) is a democracy. Nations are REPUBLICs. Rule of LAW is above the RULE of the MOB. You see ground reality in Pakistan as otherwise.

Personally I like the idea of careful planned default - to external lenders. Defaulting to internal debtors would be much more catastrophic. Countries like Argentina have recovered from their defaults and are doing much better now. The default however will come tremendous hardship for a couple of years but can be managed. The ruling party will take a bashing and would be very difficult for any political party to go this route. Not to mention great pressure (which may include a coup) will be exerted by out foreign masters not to go this route.

I enjoyed the candy and kids example. I will use it to explain these issues to others. I generally use the classic group of 10 example. Who initially live like hunters-gatherers-looters individually . Then one developed the skill to get food for all then, and another developed skills to make clothes for all ten, and another shoes for all ten etc. Ultimately that developed an economy which had 10 goods and services. So quality of life improved.

Extending that simple example to the 6th largest population in the world: Without education, skills and appropriate infrastructure conducive to increasing goods and services, we are living like hunters-gatherers and looters. Economic production cannot be generated by injecting cash in and unproductive rigidly coupled system. The injected money increases the inflationary pressure not to mention the exorbitant amount siphoned off in corruption.

 

[UKPakistani]

If you present your argument right, even taking could be explained as giving!

I take it every Pakistani will soon be a "millionaire" thanks to these wonderfully planned and executed miracles of economics.

All future Pakistanis will be born with "millionaire" parents

Can't wait.

 

[UKPakistani]

@AsifAmeer

what if

1. Pak elect a new Government with a majority in the "Lower House"

2. It takes a bold radical approach and tells all we owe money to that we cannot and will not pay and that they should go chase those they "loaned" it to. It was in fact the negligence of the IMF or World Bank for not having enough checks and balances to ensure this money was spent in Pakistan for improvements and/or the purpose it was obtained/given for

3. Pakistan says it will not require any further loans and will instead rely on remittances from overseas Pakistanis sent legally for its needsand will repay if found to beliabe to do so, at a resheduled

4. Overseas Pakistanis are urged and requested to invest and support the economy make sacrifices if necessary

A Very simple model from a simple soul

What would they do ?

 

[AsifAmeer]

You even sound like me! lol..

I wrote this article for DAWN last year. Saidly they chopped/cropped/fixed/mixed the article before printing it. I made the case for a strategic default. Check it out
http://tinyurl.com/PakGoldStandard

Personally I like the idea of careful planned default - to external lenders. Defaulting to internal debtors would be much more catastrophic. Countries like Argentina have recovered from their defaults and are doing much better now. The default however will come tremendous hardship for a couple of years but can be managed. The ruling party will take a bashing and would be very difficult for any political party to go this route. Not to mention great pressure (which may include a coup) will be exerted by out foreign masters not to go this route.

I enjoyed the candy and kids example. I will use it to explain these issues to others. I generally use the classic group of 10 example. Who initially live like hunters-gatherers-looters individually . Then one developed the skill to get food for all then, and another developed skills to make clothes for all ten, and another shoes for all ten etc. Ultimately that developed an economy which had 10 goods and services. So quality of life improved.

Extending that simple example to the 6th largest population in the world: Without education, skills and appropriate infrastructure conducive to increasing goods and services, we are living like hunters-gatherers and looters. Economic production cannot be generated by injecting cash in and unproductive rigidly coupled system. The injected money increases the inflationary pressure not to mention the exorbitant amount siphoned off in corruption.

 

[AsifAmeer]

you remind me of Jon Stewart who once said "If we all watched Jim Cramer, we'll all be Millionaires - provided we start will $200 mill."

I take it every Pakistani will soon be a "millionaire" thanks to these wonderfully planned and executed miracles of economics.

All future Pakistanis will be born with "millionaire" parents

Can't wait.

 

[AsifAmeer]

Eak kaam kero.. Read just 3 paras of my article
http://tinyurl.com/PakGoldStandard

If Pakistan defaults, announces its currency backed by Gold (say Rs15,000 for 1gm of Gold, so there is no run on the money), let inflation set in, enough to wipe out internal debt as well. Let prices to settle, balance the budget. Demand Rupee for its exports to restore value to the Rupee. I can honestly say, Rupee will recover in less than 4 years. And such drastic actions will reform the economy too! Haan, during this process, there is no room for a mistake, let alone corruption.

Read the bottom part of the article. Its not like there isnt a solution, but its the lack of people interest in getting things done.

@AsifAmeer

what if

1. Pak elect a new Government with a majority in the "Lower House"

2. It takes a bold radical approach and tells all we owe money to that we cannot and will not pay and that they should go chase those they "loaned" it to. It was in fact the negligence of the IMF or World Bank for not having enough checks and balances to ensure this money was spent in Pakistan for improvements and/or the purpose it was obtained/given for

3. Pakistan says it will not require any further loans and will instead rely on remittances from overseas Pakistanis sent legally for its needsand will repay if found to beliabe to do so, at a resheduled

4. Overseas Pakistanis are urged and requested to invest and support the economy make sacrifices if necessary

A Very simple model from a simple soul

What would they do ?