Soaring gold prices suggests investors losing confidence in dollar
Further dependence on volatile dollar very risky
China better placed to provide int'l reserve currency
Islamabad: [April 21]
The Pakistan Economy Watch (PEW) on Thursday said unprecedented hike in gold and silver prices suggests that investors have lost some faith in weaker US dollar.
The development also hints at lack of confidence among investors in America's political and economic system as well as capabilities of leaders.
Such developments can be attributed to the flawed US policy of 'spend and borrow,' said Dr. Murtaza Mughal, President Pakistan Economy Watch (PEW).
Unhealthy habit of spending more than income has transformed US from largest lender nation to the biggest debtor.
The US government debt is set to exceed 70 per cent of GDP which will hurt its prestige, power and influence; he said adding that otherwise the status of the dollar would have never been called into question.
A country needs to have stable political and economic system to have a stable currency, said Dr. Murtaza Mughal.
He said that dependence on dollar has become increasingly dangerous while calls for another international reserve currency are yet to be translated into realty.
China is better placed to provide a reserve currency as it has largest reserves. Chinese enjoy a focused government and few economic worries as well as challenges, he suggested.
Dr. Mughal said that whole world is seeing the scale, resources and organising capacity of Beijing. China is already the world's largest exporter and the world's largest net creditor; by 2014 China's economy will pass the US, in absolute size, he said.
World would be at ease in the Chinese dominance as they are not assertive and not very sensitive about their ranking in world system.
Beijing is not in habit to impose their ideology, political, intellectual, economical and cultural influence on others therefore their dominance can be a good omen for world's peace, he said.
--
Dr. Murtaza Mughal
Cell: 0321-5157671
President Pakistan Economy Watch
--
Dear All,
It's a common platform for journalists and all others who are interested in knowing about the issues that are sometimes not reported. This group favours philosophy of progress, reform and the protection of civil liberties. Please share and educate others. The owners and managers of this site do not necessarily agree with any of the information. It is an open forum and anyone that register can post whatever they like. Mails sent by members and non-members are subject to approval. However, we are not responsible in any way for the contents of mails / opinion sent by members. We do not guarantee that the information will be completely accurate. If you find content on this site which you feel is inappropriate or inaccurate, incomplete, or useless you are most welcome to report it or contradict it.
Regards,
Group Manager
0 comments:
Post a Comment