Islamabad: The Pakistan Economy Watch (PEW) on Wednesday said US is pushing whole world into another crisis by printing excessive currency to overcome its record budget and trade deficits. Political will of American leaders has failed as they are taxing their own people and whole world by doing something that will make economic recovery difficult.
US should not cover its failures with the help of printing press but review its policies, curtail expenditures and stop wars for profit, said Dr. Murtaza Mughal, President PEW. The world has lost confidence in sustainability of sole super power in the face of record losses. Borrowing money from every possible donor including Arabs, even from rivals like China and Russia has proved a blow to US might.
A country that keeps its currency on oxygen and fails to safeguard savings of masses has no right to remain as super power and keep its currency as anchor currency. Sliding dollar is not only a threat to US but whole world as it is being used as dominant reserve currency. US Dollar has lost reason to become reserve currency.
“A euro note worth only 89 cents after its introduction in 2002, as the biggest monetary changeover in history, today stands at 1.31842 USD,” said Dr. Murtaza Mughal. Desperate calls by some countries for new international currency system are to save their hard-earned dollar reserves. It took China three decades to gather US$2 trillion.
Dollar is no more part of the solution, it has become part of the problem, he said adding that future of greenback is bleak. The situation seems to be very dangerous as there is no apparent successor on the horizon. Rapid decline in the dollar is not a problem for the eurozone but others, he said adding that euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency. Pakistan should also accept other strong currencies, convert some reserves or try to build reserves and initiate international trade as well as banking in stable currencies.-PEW