Britain: the Euro could not last

[crankthskunk]

First nail in the coffin of Euro is hammered by the UK Cameron says we will not support the bailout of Greece. Cross party consensus in the UK is that Greece should be asked to leave the EuroZone, quietly.

Germany is already dithering on the new package, this hard instance by the UK shows, that the days of Euro are numbered. Considering that similar problems like Greece are faced by both Portugal and Spain, the Euro could hit more obstacles in very near future.

Euro may not exist in its current form in 2012 it may be adopted by selected few like Germany, France and Italy etc. While dangerously instable nations asked to leave quietly.

Dollar is not in great shape either. So what would replace these two currencies in the world trade and as reserve currencies?

There is another news from America, the mayors of cities with population of 30,000+ have voted overwhelmingly for the Federal Government to end the wars in Afghanistan and Iraq and spend the money domestically on the Economy.

We alls should wait for the imminent announcement from Obama on plans for withdrawal from Afghanistan.

Britain: the Euro could not last

UK Treasury ministers have confirmed that the coalition government is dealing with potential plans for a Greek bankruptcy after warnings by Jack Straw that the euro could not last.


Straw, the former Labour foreign secretary, warned that the euro is going to collapse, and said, Is it not better that this happens quickly rather than a slow death?"

Straw's message came after the International Monetary Fund (IMF) said the world economy would be destroyed if IMF members did not aid the Greeks.

Speaking at the parliament, Straw said, What the Government should do instead of sheltering behind the complacent language, weasel words that 'it is not appropriate, we should not speculate' is recognize that this euro zone cannot last.

And it is the responsibility of the British Government to be open with the British people now about the alternative prospects.

In an urgent meeting, Britain's senior MPs from all parties asked the government to stand aside from the new financial package aiding Greece and urged the country to leave the euro.

Mark Hoban, financial secretary to the Treasury, said, "I am not going to comment on whether the eurozone will remain intact or not. Clearly, this crisis demonstrates the huge strain the eurozone in under. That is why it was right for us to stay out of the eurozone."

Meanwhile, he admitted that there were many scenarios, which were being considered.

He said it will not be appropriate to talk about the detail, but I will be guilty of not stepping up to the responsibilities of his office if plans had not been made to cope with a default.

He said that the UK banks had given around 2.47 billion in exceptional loans to Greek nationals and institutions.

Prime Minister David Cameron also declared that UK would not participate in a bailout of Greece.

"We were not involved in the first bailout of Greece; we don't believe the European financial mechanism should be used in any way."

Conservative MP Anne Main claimed that Greece should be allowed to depart peacefully from the eurozone.

Danny Alexander, the Chief Secretary to the Treasury, also admitted that UK would not play a part in contributing aid package for Greece.

The package for Greece that is already in place is a eurozone package with the IMF. It's the eurozone that is taking forward discussions now about the next stage of dealing with Greece's substantial problems. There's simply no proposition on the table for the UK to contribute beyond that IMF involvement and I don't expect there to be one, he said.

http://presstv.com/detail/185652.html

 

[behzadji]

What a pity that we can't be happy on these news either. but one thing is true about the dollar....if dollar depreciates...so would our debts... so better to wait and see what the time brings for us....definitely it would be something very very nice....

 

[Bombaybuz]

This interest base Banking system is bound to parish ... Yeah but i don't think it will do any good for us even in the long run ...down and fall of patrol price hit us badly last years both times when the prices go up and the time they came down...... but Obama will announce the schedule for the return of US arm forces from Afghanistan on 26th june most likely ... and i very much agree that this is against the will or node of CIA.

 

[Unicorn]

First nail in the coffin of Euro is hammered by the UK Cameron says we will not support the bailout of Greece. Cross party consensus in the UK is that Greece should be asked to leave the EuroZone, quietly.

Germany is already dithering on the new package, this hard instance by the UK shows, that the days of Euro are numbered. Considering that similar problems like Greece are faced by both Portugal and Spain, the Euro could hit more obstacles in very near future.

Euro may not exist in its current form in 2012 it may be adopted by selected few like Germany, France and Italy etc. While dangerously instable nations asked to leave quietly.

Dollar is not in great shape either. So what would replace these two currencies in the world trade and as reserve currencies?

There is another news from America, the mayors of cities with population of 30,000+ have voted overwhelmingly for the Federal Government to end the wars in Afghanistan and Iraq and spend the money domestically on the Economy.

We alls should wait for the imminent announcement from Obama on plans for withdrawal from Afghanistan.

I can not believe my self that I agree with you 100%. I had to read twice trying to find something to disagree upon. Just to add Germany and France have a lot to loose their banks are going to be in a very rough shape if Greece falls. They both might try to convince others to throw good money to save bad.

 

[haqiqat]

World Collapse Explained in 3 Minutes

 

[crankthskunk]

The debt to GDP ratio for Ireland is over 1400%. Or in simple terms Ireland owes 14.5 times its annual GDP.

The similar ratio for the UK is 4.5 times the annual GDP.

Ireland total GDP for 2010 is $172.3 Billion with a reduction in GDP of 1% in 2010 and 7.6% in 2009, both estimated figures.

It is obvious that Irelands GDP is shrinking, while debt is rising. Or in other words more borrowing needed to fund the budget deficit.
How much is the budget deficit?

The revenues are $58.7 billion while expenditures are $135.1 billion, leaving a deficit of $66.4 billion for 2010.

Ireland debt is estimated to be near $2.5 trillion in 2010.

It will take Ireland 43 years to pay its debt if it pays every dollar of its revenues of $58.7 towards its obligations. This in reality is impossible.

Considering Ireland has to borrow more than 113% of its revenues to fund the expenditure or the budget deficit. It can never pay off its debt. Not even in 1000 years.

Let say, that the debts are acquired at 4% interest, the interest on its $2.5 trillion debt alone is $100 billion.

Therefore, Ireland needs $166.4 billion annually to fund the budget deficit and pay just the interest on its debt, not the actual borrowed amount or principal debt at all. But we all know in reality the debts mature so, the payment of the actual debts also becomes due from time to time. Without even considering the actual debts due in foreseeable future, Ireland still needs extra funding of over 352% or 3.52 times of its revenues just to fund the budget deficit and pay the annual interest.

How possibly can it pays off its debt?

Therefore, Ireland is doomed.

Let see the results, in last two years, the GDP has gown down from $188.4 billion to $172.3 billion, a decline of $16.1 billion. In 2009 alone the GDP growth was 7.6%, while Per capita income has decline from $41,700 in 2008 to $37,300 in 2010. A decline of $4,400 per person per annum.

The problem for the western economies is that vast % of GDP is consists of service sector. For example Ireland GDP consists 70% of service sector and 30% of industry and agriculture.

The biggest problem for the economies with predominately service sector is that as the GDP declines or the economy shrinks, the services shrink too. As people incomes declines they tend to concentrate on necessities of life rather than luxuries, therefore, the non-essential services are first to go. This in turn will shrink the economy further and reduces the GDP. A vicious cycle starts.

The western economies have lost their competitiveness and industrial bases gradually. They cannot come out of their problems by producing goods and expending their GDP through production. In global industrial production China has taken the lead, and the forecasts are that Chinas share would keep growing at least for foreseeable future.

Second biggest problem for the Western countries, is that its Services companies like energy, telecom, banks, credit cards companies in their efforts to cut costs also transferred majority of their operations to India.
In other words, even the service industry does not produce enough stimulation in the local Economy and jobs are lost to India.

It not only increases the unemployment but also put further burden on the economy and increases budgetary deficit. Citizens out of job do not contribute to the revenues by paying taxes, but they become further drain on the budget by receiving the benefits from the state.

This increases over all budget deficits further by reducing tax revenues and increasing state expenditures on benefits. It is a double sword.

I can see even India suffering heavily in coming years, because as the West Economies decline, there would be uproar in USA and Europe to bring the jobs back to the local Economy. States to stop the double sword created by unemployment would be gradually obliged to push the private companies to bring the jobs back from India.

We know in USA the clamour already started, with unemployment touching 10% or over, and with estimate of real unemployment is as high as 20% the pressure to bring the jobs back to the USA is increasing. It will increase further, there is no chance of its going down in the forcible future.

In my estimation India is in for a rough ride, not immediately but gradually in next 5 years. It will loose the cheap job market it created.
India has one of the highest debts in the world and also a negative current account deficit, despite earning substantial amount through remittance by the foreign companies for the wages of the cheap labour, and also the investment on infrastructure, office space, buildings rent and other running expenditures by the foreign companies. This all brings valuable foreign exchange to India.

The jobs leaving back to the Western countries, not only going to increase the unemployment, but would also reduce tax collection, both in personal Income tax and also different taxes paid by the companies.

The condition of UK is not great either, it does not have as high the debt as Ireland but it is second on the list, with Debt to GDP ratio of 458% or 4.5 times of GDP.

 

[Wadaich]

The debt to GDP ratio for Ireland is over 1400%. Or in simple terms Ireland owes 14.5 times its annual GDP..
.
.
.

The condition of UK is not great either, it does not have as high the debt as Ireland but it is second on the list, with Debt to GDP ratio of 458% or 4.5 times of GDP.

So the whole state of the financial affairs of Europe and USA reflects that every inch of them is in bloody clutches of Bankers' debt. And all the Banks belong to six to seven Jewish families. The bread and breath of common innocent western people is in their paws. These bloody Zionist are so shamelessly ruthless that they are enemies of humanity. For them all the "gentiles" are born to serve these Jews "most beloved people of God".

How ironically true is the statement by a Zionist Banker (Perhaps David Rockerfeller) that "give me the control of currency and I don't care who makes the policies and governs the world".

So they finally had it. (clap)

(hmm) Euro is under controlled demolition and so is in the case of Dollar?

(hmm) Now they shall come up with a new currency, set its value, and form the new rules of Game? The NWO is now not in the offing but creeping bloody near. Yeah get ready for Bloody New World Order.

(hmm) But Allah (SWT) is best of the Planners..........................................Never forget:)

 

[Unicorn]

The debt to GDP ratio for Ireland is over 1400%. Or in simple terms Ireland owes 14.5 times its annual GDP.

The similar ratio for the UK is 4.5 times the annual GDP.

Ireland total GDP for 2010 is $172.3 Billion with a reduction in GDP of –1% in 2010 and –7.6% in 2009, both estimated figures.

It is obvious that Ireland’s GDP is shrinking, while debt is rising. Or in other words more borrowing needed to fund the budget deficit.
How much is the budget deficit?

The revenues are $58.7 billion while expenditures are $135.1 billion, leaving a deficit of $66.4 billion for 2010.

Ireland debt is estimated to be near $2.5 trillion in 2010.

It will take Ireland 43 years to pay its debt if it pays every dollar of its revenues of $58.7 towards its obligations. This in reality is impossible.

Considering Ireland has to borrow more than 113% of its revenues to fund the expenditure or the budget deficit. It can never pay off its debt. Not even in 1000 years.

Let say, that the debts are acquired at 4% interest, the interest on its $2.5 trillion debt alone is $100 billion.

Therefore, Ireland needs $166.4 billion annually to fund the budget deficit and pay just the interest on its debt, not the actual borrowed amount or principal debt at all. But we all know in reality the debts mature so, the payment of the actual debts also becomes due from time to time. Without even considering the actual debts due in foreseeable future, Ireland still needs extra funding of over 352% or 3.52 times of its revenues just to fund the budget deficit and pay the annual interest.

How possibly can it pays off its debt?

Therefore, Ireland is doomed.

Let see the results, in last two years, the GDP has gown down from $188.4 billion to $172.3 billion, a decline of $16.1 billion. In 2009 alone the GDP growth was –7.6%, while Per capita income has decline from $41,700 in 2008 to $37,300 in 2010. A decline of $4,400 per person per annum.

The problem for the western economies is that vast % of GDP is consists of service sector. For example Ireland GDP consists 70% of service sector and 30% of industry and agriculture.

The biggest problem for the economies with predominately service sector is that as the GDP declines or the economy shrinks, the services shrink too. As people incomes declines they tend to concentrate on necessities of life rather than luxuries, therefore, the non-essential services are first to go. This in turn will shrink the economy further and reduces the GDP. A vicious cycle starts.

The western economies have lost their competitiveness and industrial bases gradually. They cannot come out of their problems by producing goods and expending their GDP through production. In global industrial production China has taken the lead, and the forecasts are that China’s share would keep growing at least for foreseeable future.

Second biggest problem for the Western countries, is that its Services companies like energy, telecom, banks, credit cards companies in their efforts to cut costs also transferred majority of their operations to India.
In other words, even the service industry does not produce enough stimulation in the local Economy and jobs are lost to India.

It not only increases the unemployment but also put further burden on the economy and increases budgetary deficit. Citizens out of job do not contribute to the revenues by paying taxes, but they become further drain on the budget by receiving the benefits from the state.

This increases over all budget deficits further by reducing tax revenues and increasing state expenditures on benefits. It is a double sword.

I can see even India suffering heavily in coming years, because as the West Economies decline, there would be uproar in USA and Europe to bring the jobs back to the local Economy. States to stop the double sword created by unemployment would be gradually obliged to push the private companies to bring the jobs back from India.

We know in USA the clamour already started, with unemployment touching 10% or over, and with estimate of real unemployment is as high as 20% the pressure to bring the jobs back to the USA is increasing. It will increase further, there is no chance of its going down in the forcible future.

In my estimation India is in for a rough ride, not immediately but gradually in next 5 years. It will loose the cheap job market it created.
India has one of the highest debts in the world and also a negative current account deficit, despite earning substantial amount through remittance by the foreign companies for the wages of the cheap labour, and also the investment on infrastructure, office space, building’s rent and other running expenditures by the foreign companies. This all brings valuable foreign exchange to India.

The jobs leaving back to the Western countries, not only going to increase the unemployment, but would also reduce tax collection, both in personal Income tax and also different taxes paid by the companies.

The condition of UK is not great either, it does not have as high the debt as Ireland but it is second on the list, with Debt to GDP ratio of 458% or 4.5 times of GDP.

Its a fairly good assessment I have some minor disagreement but as a whole very good.

 

[crankthskunk]

Chicago city is practically Bankrupt

I have given figures and Analysis of Ireland financial chaos. Now let me give a snap shot of Chicago city in the USA. The City, which is in Cook County, owes $108bn in debt or each household having $63,525 local debt. This debt does not include the share of the national debt the resident of cook county share with other citizens of the USA.

But the most worrying part is that out of the $108 billion, $25 billion are for un-funded pension liability. In plain English the local government has used up employees pension funds and is short by $25 billion. This short fall would result in retirees not getting their full pensions or even any pensions at all, if this trend continues.

Chicago city authorities are not an isolated case at all. This practice is wide spread in the western countries, both in the USA and in Europe. The full extend of the problem is not known, but considering now this figure has came out after debt disclosure law. If this disclosure law applies all over the USA then expect some more shocking news. Chicago city council has to declare bankruptcy, and go in to default to restructure its debt obligations.

I know for sure, the problem in the UK is of the same magnitude. Here also the Pension Funds are heavily used to fund the budget deficit in recent years. The position is so bad that I do not expect to get my full pension on my retirement, if any. But even if I get some of my pension, the coming generation would not get any. Already recently the working age has been increased, so more people stay in the work longer and receive pension for a shorter period. I expect the pension age to increase to 67 or even to 70. There is already a scheme in operation in the UK where someone can take the option of working until the age of 70 and then retire by taking a lump sump as pension at the age of 70.

The average Chicago household now owes a staggering $63,525 to cover local government debt, according to Cook County Treasurer Maria Pappas.

Suburbanites are deeply in the red, too, with the average household owing $32,901, according to the treasurer.

Among the biggest reasons: $25 billion in unfunded pension liability.

In comments after an appearance Tuesday before the Civic Federation, a watchdog group that has released somewhat similar numbers in recent years, Ms. Pappas said she was "stunned" to learn that county taxpayers on the whole owe more than $108 billion toward local debt.

Partial quotation.

http://www.chicagobusiness.com/sect...&plckScript=blogScript&plckElementId=blogDest

 

[gazoomartian]

First nail in the coffin of Euro is hammered by the UK Cameron says we will not support the bailout of Greece. Cross party consensus in the UK is that Greece should be asked to leave the EuroZone, quietly.

Germany is already dithering on the new package, this hard instance by the UK shows, that the days of Euro are numbered. Considering that similar problems like Greece are faced by both Portugal and Spain, the Euro could hit more obstacles in very near future.

Euro may not exist in its current form in 2012 it may be adopted by selected few like Germany, France and Italy etc. While dangerously instable nations asked to leave quietly.

Dollar is not in great shape either. So what would replace these two currencies in the world trade and as reserve currencies?

There is another news from America, the mayors of cities with population of 30,000+ have voted overwhelmingly for the Federal Government to end the wars in Afghanistan and Iraq and spend the money domestically on the Economy.

We alls should wait for the imminent announcement from Obama on plans for withdrawal from Afghanistan.

Sign of relief or Pakistan will only be, if the dollar weakens and Pak economy spirals upwards otherwise it wont do us any good.

Regarding the euro, Rothschild has too much invested in US dollar to see euro go up and $ go down. They will never never accept Euro. All these financial crunch in Greece may be orchestrated by the lenders (Free Mason) to finish the Euro. Greece may be a the pilot project.

 

[crankthskunk]

Sign of relief or Pakistan will only be, if the dollar weakens and Pak economy spirals upwards otherwise it wont do us any good.

Regarding the euro, Rothschild has too much invested in US dollar to see euro go up and $ go down. They will never never accept Euro. All these financial crunch in Greece may be orchestrated by the lenders (Free Mason) to finish the Euro. Greece may be a the pilot project.

There is no doubt, Euro would be either completely destroyed or adopted by selected few, like I have said in my previous post.
I post two videos, first on Greece, the $12bn package would be spend on paying the debt, i.e. increasing the debt to pay for previous debt is not the answer, but for Greece, Portugal, Spain and Ireland this is the only option available at the moment if they stay in Euro.
The British MEP says, EURO is a prison for Greece, Spain and Ireland, they need to go back to their old currencies. He is right, they all have no other option but to default and re-structure their economy.

Second video Keizer says after Greece, USA number is next, it is going down. Don't worry USA have major problems but most of it are hidden from the public view, those in the know are aware though, the end is approaching for Capitalism.

 

[PkRevolution]

Note down two new hot candidates : Belgium and Italy.

€ group chief Jean-Claude Juncker has warned against a further extension of the debt crisis in Belgium and Italy. The involvement of private creditors to further financial support for Greece could cause the rating agencies, the country “insolvent” as classified, said Luxembourg Prime Minister of the “Sddeutsche Zeitung”. That could have extreme consequences for other euro countries. “The bankruptcy can infect Portugal and Ireland, and then because of high debt and Belgium and Italy, ahead of Spain,” Juncker warned.

http://economicsnewspaper.com/polic...gium-italy-juncker-fears-contagion-35019.html

 

[crankthskunk]

Pakistan's Economic problems and solutions

GazooMartian and others,

Let me explain Pakistans financial situation in plain English, so everyone understands perfectly well what is happening ever since PPP took office and even before they coming to the office in the last part of Musharafs era.

As we know, Mr. Sheikh has been re-appointed as Finance Minister of Pakistan by PPP, he served in same capacity in Musharaf era.

Mr. Sheikh is an agent. Pakistanis should be up in arms and asking for his immediate sacking if they understood what he is doing to Pakistan. He is the biggest threat to Pakistans existence, even higher than Zardari, Gilani, Haqqani and Rehman Malik.

What Sheikh has done in the past and what is he doing now, is same what has been done to Ireland, Greece, Spain, Portugal etc.
And to some degree to the UK and USA. But these two countries have more clout in financial world, therefore, on the surface they are doing well, in reality they have similar problems, but managing them more effectively.

Mr. Sheikh has two very obvious and very familiar weapons, which he is using to destroy Pakistans economy.

1) Borrowing to pay the existing debt. As I explained in the case of Ireland, there are two reasons why a country has to borrow more.
A) To pay for its current account and budgetary deficits. If you have a budget deficit then you cannot even fulfil your current years requirements from your resources or revenues. How can you pay your existing debt?

B) The borrowing, have two main purposes in deficit ridden economy, to finance the debt repayments and also current budget deficit. In turn the Debt repayments also have two aspects. Firstly the interest on the existing debt, and also repayment of the principle amounts for maturing debts.

For Pakistans foreign debts, for the liabilities maturing, repayment of the Principle amount, and payment of interest on the existing debt, Mr. Sheikh relying on foreign loans, aid and trenches from IMF. Foreign debts cannot be paid in Rupees (unless there is a specific agreement with the lenders) therefore, they have to be treated separately; you need dollars (or other foreign currencies, if specified) to fulfil your responsibilities and obligations.

This is the principle reason they need the aid and also packages from IMF. Without these two helping, it would be impossible for Pakistan to fulfil its obligations. Unless they change their course and take corrective measures in Pakistani economy.

Pakistan having deficit in its foreign trade does not help, as I explained in one of my post Pakistans imports (most of which are on luxury items like bullet proofs cars for the safety of our corrupt leaders, petroleum products and machinery) were $32.71bn and exports were $20.29bn for 2010 leaving a trade deficit of $12.42bn. Most of the trade deficit is plugged in by remittances of overseas Pakistanis, which were over $10bn in 2010. For rest Pakistan needs help.

We see, that the current account deficit after taking in to account remittance is not great, therefore, it is safe to conclude that the foreign help either through aid, IMF trenches and acquisition of new foreign debts are not solely used for plugging the current trade deficit. But these sources are also used to plug the budget deficit and payment of interest on foreign debts. Otherwise there are no other plausible explanations of more than doubling of the Pakistans foreign debt.

But this is only one side; the second problem is the budget deficit.


2- To plug-in the budget deficit, Sheikh is using two tools, apart from the foreign aid and IMF.

1- Borrowing from Pakistani banks.
2- Printing more money.

First is self-explanatory, borrowing domestically has doubled the internal debt in last 3 years as well.

Debt is bad, no doubt, but the second one is even more dangerous for general public, quantum easing brings in inflation. Thats why we see rocketing of consumer prices in Pakistan. Resulting in increase in poverty in Pakistan and more and more people feeling the pinch economically.

It also brings another malaise it devalues the Pakistani Rupees further. Unfortunately, devaluing of the currency is used as a major tool of Monetary and Fiscal policies in Pakistan for years.

Different parties or successive governments did not formulate proper planning and policies; neither they have taken economical responsibilities seriously, due to either lack of expertise (like in case of PPP who have nobody in their party capable enough to tackle economy. They end up borrowing one and then another person in the end settling on Mr. Sheikh, they lack vision. Successive governments end up using devaluation of Rupees as a tool to be competitive in international markets.

There are two ways you can compete in international markets, first to control the costs and produce product at competitive prices for the international markets or you devalue your currency so your product are cheaper in terms of dollars in international markets.

Pakistanis unable to control the inflation for the reasons I explained above, hyperinflation for years resulted increase in costs of domestic production, as the cost of electricity, gas, transportation and labour increased. While the other option was too difficult to achieve, Pakistani economic gurus over the years found easy fudge to keep devaluing Rupees further and further to stay competitive in the international markets for their exports.

It is obvious PPP is a party of idiots and illiterates; it does not have capable people to take care of the Economy. Sheikh and his Masters are too happy for him to got the job, he is making their task easier to destroy Pakistan and keep it under their clutches through IMF and through direct aid. Giving them the chance to interfere in Pakistan internal affairs and dictate Pakistan.

Pakistan is fast moving towards the situation faced by Greek, Ireland, Spain, Portugal and numerous other countries.

We can stop it, it is not difficult, Pakistanis are amongst the most brilliant in the World. But you have to employ honest and patriotic people to stir Pakistan economic policies.

I can give some broad solutions, which have to be implemented one day or another, sooner or later.

1- Control imports: get rid of excessive and unnecessary luxury items in the import. Our politicians should be pushed to have normal cars, rather than expensive bullet proof cars. Or they can take the option of not having the job. The life of ordinary citizens and the Ministers have equal value. Only in Pakistan they would be given expensive cars to save themselves while people dying everyday. It may push them to improve security situation in Pakistan when their own lives at risk. Cut back unnecessary and unproductive foreign trips by PM, President and Ministers to save the foreign exchange.
2- With increase in exports and substantial increase in remittances ($2bn increase this year) try to achieve at least $3bn surplus in foreign trade. Use this surplus to pay interest on debts and also gradually pay off debts, starting with the debts acquired on very high interest rates by Musharaf and some by PPP.
3- Control your budget deficit, by cutting excessive costs in Government i.e. ludicrous spending on President, Prime Minister Houses, Parliament, lodges, on foreign tours etc.
4- Sort out the bleeding wounds like steel mill, PIA, Railways etc.
5- Sort out the corruption, first in implementation of taxes and second in their collection. This two should be the first priority together with loss making institutions.
6- Increase direct taxes rather than implementing indirect taxes, which effect poor more. While rich billionaires who are involved dealing in stock, currencies, properties etc are not paying any taxes. And then there are the big land owners, hurdle in agricultural reforms and taxation.

Pakistan has lots of potential and can come out of the trouble very quickly and easily but the government has to show the intentions and interests, which unfortunately are missing.

PPP is only concern to complete their term, even 4 years and then call the General Election. PPP is complete deprived of people who have something in between their ears. No wonder they have an idiot in Punjab assembly as opposition leader who cannot pronounce Party properly, he uses Palty.

We know what are the main motives and aims of the leadership of PPP, loot, loot and more loot.

May Allah SWT bless Pakistan and give us strength to kick out these thieves and crooks from Pakistani politics, Amen.

 

[Unicorn]

Bro you should stop calling people agents its a easy way to blame others for problems.

The remedies you have proposed are good they are not easy to implement. I am sure competent people who are looking at the books are sitting on a table scratching their heads thinking where to start. Proposals of these competent people will never be accepted because they are too painful but the politicians always come up with a magic solutions to get elected. Unless a great number of people understand half of what you are saying forget the entry of competent people in this institution.

I don't have detailed knowledge about finances of Pakistan but it appears to me that the trade deficit is likely to go up and that would be really bad it could possibly results shortages of all sorts when the ability to import goods is not there.

Anyone who prints money to overcome defects is committing a criminal act as for I am concerned. It is a way to increase taxes without the approval of parliament. In that people do not pay any taxes but they pay a higher price for goods and services. This has deadly effect on the poor and middle class.

 

[crankthskunk]

Bro you should stop calling people agents its a easy way to blame others for problems.

The remedies you have proposed are good they are not easy to implement. I am sure competent people who are looking at the books are sitting on a table scratching their heads thinking where to start. Proposals of these competent people will never be accepted because they are too painful but the politicians always come up with a magic solutions to get elected. Unless a great number of people understand half of what you are saying forget the entry of competent people in this institution.

I don't have detailed knowledge about finances of Pakistan but it appears to me that the trade deficit is likely to go up and that would be really bad it could possibly results shortages of all sorts when the ability to import goods is not there.

Anyone who prints money to overcome defects is committing a criminal act as for I am concerned. It is a way to increase taxes without the approval of parliament. In that people do not pay any taxes but they pay a higher price for goods and services. This has deadly effect on the poor and middle class.

You may be right in general circumstances, but in Pakistan it is a known fact, the agents are installed in Pakistan. We had "Moeen Qureshi" selected while he was on his way to Pakistan, the legend has it, his "Sherwani" was stitched waiting for him to arrive.

Then we had Shaukat Aziz as Prime Minister, came with a suitcase, left with a suitcase, as accompanied luggage, but what else he transferred, may come out one day.

Sheikh is a gift of the period of Shaukat Aziz and Musharaf; we cannot expect anything else from him.

Which Finance Minister would leave almost 2 trillion deficits in the budget without properly quantifying it? Is he waiting the shortfall to drop from the heavens?

If you were in charge of the budget even in a small organisation, and leave a huge hole in the budget, not knowing how to meet the expenses, without purposing to cut the expenses. You would be fired next day.

How come he is still in the job? Everyone knows he has left a huge hole in this year’s budget without telling the Pakistani nation from where this money is going to come from, or cutting the expenditure?

PPP is the worst political party I have ever seen anywhere in the world who had been entrusted to govern a country. Apart from few people I have not seen many even talking about the issue either in the Parliament or outside.

If you see a western Finance Minister present a budget with a $2 trillion hole in it. You will see how he would be slaughtered in the assembly first and foremost and calls for his immediate resignation or sacking. But in Pakistan amongst the illiterates everything is possible.

PPP just sends Sharmila and Faisal to the talk shows, to BS people and PPP gets away with murder.

The painful decisions have to be taken, sooner or later by every country, or they go down completely.

Sooner Pakistan takes the decisions better. They are still above the danger zone, but Sheikh is dragging Pakistan very hard and fast towards the point of no return.

Pakistan’s problem can and should have been sorted years ago; they are not that difficult to deal with. We can turn the deficit in to surplus very quickly, by just ditching the luxurious imports and cutting useless foreign trips by the crooks in the Government, which Pakistan can do without.

Similarly the most of the budget deficit is because of corruption in assessment and collection of taxes and wastage in the publicly own entities like Steel Mill, PIA and Pakistan Railways, etc. Then there are lavish expenses by PM, Presidents, Parliament, Parliament lodges, Ministers etc. Poor countries cannot afford it.

Little bit of pain, no doubt, but it is for the betterment, once it is sorted, the economy will gather pace and with expansion of economy there would be more money available for development expenditure, investment, education and health, which all directly benefit poor people.

PPP government is printing money vast quantity of it, it is reported as much as Rs2bn a day.

 

[Unicorn]

Key word is painful decisions.

You have a better idea about the financial situation in Pakistan I don't think that luxury items for bureaucracy is a significant part of the defect.

Every economist including you and I would agree that 100 percent solution of economic problems is a disciplined, educated and innovative work force. Any other solution has a positive and negative effect and will draw disagreements from different schools of thoughts.

You and I are looking at a farm where you see that the farm can be turned into a lush green harvest very shortly I don't see that. You don't have enough seeds that will grow in the land the way it is. It has been grossly neglected for way too long. I am not saying that situation in India is a whole lot better but they had taken some tough steps around twenty five years ago.

 

[only_truths]

I do not think that we are in for a second melt down. Just a bankruptcy in one or two countries does not mean any currency going down or will extinguish. Greece and likewise some western countries will get bailout from wealthy nations and IMF with strings attached. They are not such big economies to play a havoc role in world economy. The picture is not as gloomy as described by many here. After such a big Global economic crisis , it takes time to rebuild and it will be slow but steady. Dollar and Euro are here to stay.

As for as the jobs going back to west concerned, again it won't happen all of a sudden. In west, aging population is not new now. They are there for decades. Immigration supplements additional income for the state. The worrying factor is the shrink in the manufacturing jobs in the west which was outsourced to China mainly. Manufacturing jobs were in fact high paying jobs in the west. But some compensation has been made in terms of increase in logistics and supply chain jobs. The jobs which went to India are mostly the low paying jobs like telemarketing etc., barring a few high end software development.

The high debt is not a problem as long as you can service it with higher GDP growth. The worrying issue is for countries trapped in circular debt without substantial or minimal growth in GDP.

BTW, don't listen to RT at least in economic matters, as this TV will always present gloomy picture of West.

 

[crankthskunk]

Only truths

Listen to this video, and imagine the degree and extent of the deceit and deception. If you wish, I can pile up the evidence to show how far and how deep the *hit is flying. By the way, this is not RT but hearing in the house.

 

[crankthskunk]

Ok, so everyone heard the testimony of the Auditor General of the Feds, she said she is looking at the higher level and have not even looked at where $9 trillion off balance sheet items gone.

What? Let me explain what it means off balance sheet items. It means they are not in the official books, normal accounting and not shown in the BS of the Feds.

Our friend Unicorn wrote;

Anyone who prints money to overcome defects is committing a criminal act as for I am concerned.

Well, Fed is not only printing huge amount of money but also distributing it to the banks without even showing it on its Balance Sheet.

You still think Dollar is not Phantom money?

Lets be honest, America and the West has created the army and spend on R&D for weaponisation, not because they were threatened for centuries, but because they wanted to and are using it to crush their opponents with military might. Anyone who poses a little danger to the empire and white man control over the world will be dealt with force. How many examples you want?


The story is no different at present from the ancient time, Christianity was created for the sole reason to control the world by concocted lies that God has given His only begotten Son for the sins of men. The colonists went first killed millions, stole their land and resources, and then the Churches moved in, to teach the slaves how Christ sacrificed himself for their sin. Giving the impression, how important was it for them that the white men comes and kill them to steal their land, to give them chance to receive "salvation of their sins" Great.

And they have the gal to use damn lies to malign Islam and Muslims.

It is official Dollar is a phantom and pansy scheme, not supported by anything. News is out, not denied by the Americans, no gold in Fort Knox.

Fed is printing dollars in trillions and passing it to the Banks who are bankrupt but are supported by Phantom money, dollar.

Do idiots still think America and its banks are solvent?

 

[bravo]

I wish india learns from this fake junk dollar !!

india is overspending on defense and we are in no position to compete with china in other continents!

so giving 5 billion $ aid to africa for stupid chinese competition is useless!!India itself suffers about 100 billion $ Trade deficit!!and We continue to buy gold and import like 4-5 billion $ monthly!!

India must put high import tax on gold made for local consumption..for exporting gold ornaments ,gold imports could be taxed less!!

I was seeing the debt cycle of india economy.Congress party of india is borrowing aggressively from public!!As of now it stands at 58% of indian gdp which can cruise to 75% ,if we continue to aid african nations, and build stupid weapons beyond our needs!

India should have spent those 5 bilion $ aid in subsidizng a fabrication plant and chip manufacturing plant which can not only create laks of jobs but create ecosystem for the electronics business in india!!

india has to rely on internal manufacturing and internal consumption!!To curb chinese imports,govt should put more taxes,so that companies build it all in india!!
it can be done slowly slowly!!

india govt can easily take advantage of costly chinese labor to create alternative !Just like the way automobile industry in india has shot up,we need to replicate same success in electronics industry!!