ID :
181256
Tue, 05/10/2011 - 15:18
Auther :
Shortlink :
http://m.oananews.org//node/181256
The shortlink copeid
Economy held hostage by IMF
Ali Muhammad - Muzaffargarh
_, May 10, 2011 (Pakistan Observer): It is amazing how perfectly the IMF has succeeded in holding down our economy. A country’s economy encompasses two aspects of its total wealth: the production side and taxes on this production. If we want the economy to yield more and more taxes, country’s productivity will have to be increased more and more. The taxes, especially if they are misspent as indeed unfortunately they are in our country, depress productivity. Now the IMF by constantly insisting upon us to enforce economic reforms has never cared about the production side but it has always advised us to go on increasing taxation and nothing more. In other words, the IMF is 3rd world’s greatest extortionist agent.
The result is that our economy has been moving downwards all along. Moreover the biggest weapon the IMF has in its arsenal of economic destruction is currency value fixation. It is quite well-known that the Western agencies for assigning economic grades to any country’s economy such as Mody’s, Standard and Poor and a few more are all presided over by the IMF. These agencies help the IMF in its politically strategic aims throughout the world.
Thus in the case of Pakistan the IMF, flaunting cooked up figures and self-imaginatively produced reports of grading agencies, often cries out that the country’s currency is heavily overvalued and must be devalued otherwise Pakistan would stand ostracized by the world economic community. Such forcible devaluation has devastating consequences for the common man as the prices rise sharply and his savings are washed out and the cost of foreign loans escalates terribly.
After having devalued this one time the country starts making efforts to adjust to the new economic situation. But just as the country is beginning to sooth its wound of this economic back-stabbing, the IMF cries out again to force another round of the devaluation thus ensuring the keep the country in a vicious circle of poverty.
_, May 10, 2011 (Pakistan Observer): It is amazing how perfectly the IMF has succeeded in holding down our economy. A country’s economy encompasses two aspects of its total wealth: the production side and taxes on this production. If we want the economy to yield more and more taxes, country’s productivity will have to be increased more and more. The taxes, especially if they are misspent as indeed unfortunately they are in our country, depress productivity. Now the IMF by constantly insisting upon us to enforce economic reforms has never cared about the production side but it has always advised us to go on increasing taxation and nothing more. In other words, the IMF is 3rd world’s greatest extortionist agent.
The result is that our economy has been moving downwards all along. Moreover the biggest weapon the IMF has in its arsenal of economic destruction is currency value fixation. It is quite well-known that the Western agencies for assigning economic grades to any country’s economy such as Mody’s, Standard and Poor and a few more are all presided over by the IMF. These agencies help the IMF in its politically strategic aims throughout the world.
Thus in the case of Pakistan the IMF, flaunting cooked up figures and self-imaginatively produced reports of grading agencies, often cries out that the country’s currency is heavily overvalued and must be devalued otherwise Pakistan would stand ostracized by the world economic community. Such forcible devaluation has devastating consequences for the common man as the prices rise sharply and his savings are washed out and the cost of foreign loans escalates terribly.
After having devalued this one time the country starts making efforts to adjust to the new economic situation. But just as the country is beginning to sooth its wound of this economic back-stabbing, the IMF cries out again to force another round of the devaluation thus ensuring the keep the country in a vicious circle of poverty.
