BPC's huge debt, Bangladesh in danger of crisis

[renhai]

I don't understand? How does US "force" anyone to buy US bonds? They offer an interest rate on a certain period length to hold them till maturity....then its up to the country/institution/individual if its worth it compared to other investment decisions on offer for their spare capacity (past consumption).

BD is in no position to buy (i.e essentially invest in) USD bonds in any meaningful way.

BD runs a large trade deficit with the world, so it has to keep its forex as relatively liquid as possible.

i.e BD situation is one where it wants the world to buy its bonds (in exchange for their USD or other world standard liquid forex)....rather than vice versa (which needs large spare capacity...and maybe we can have that conversation in 2050 onwards).

That situation wont change a long time as BD simply does not want to reform to bring in high levels of capital investment that say China did in 80s, 90s etc at its rough same stage in its development process.

i.e China is completely different scenario given its long term trade surplus and thus incentive to make higher return on what it holds (i.e essentially invest in US this way and keep that much USD outside of world circulation at same time to help lubricate its own economic model for as long as possible).

The United States excels in using financial means to control other countries.

We all know. Both China and Bangladesh developed through manufacturing. But the United States is not. The United States relies on finance and the dollar. Do you know Japan's "Plaza Accord"?

So the United States has many means to force any country to purchase US bonds. Unless you are G2. Even the G7 must purchase US bonds.

Even if Bangladesh is fully industrialized in the future, Bangladesh will have enough gold reserve in the future, and the future Bangladeshi currency will get SDR... But if the United States forces Bangladesh to buy its debt. What does Bangladesh do?

 

[bluesky]

I have read newspaper reports where Hasina Bibi got angry when someone asked why should be dollar crisis when there was a euphoria on FER. She angrily replied the dollar reserve was used to pay a part of Paira dredging works.

Forex is not for the development works in a poor country. It is kept in the vault to maintain a stable exchange rate. Now, The Taka is falling free. I do not know how much more dollars Hasina spent on some other projects.

Economists know about the unnatural way of wasting dollars. But they do not open mouths. They fear the Digital Laws.

 

[Indos]

This is why BD doesnt buy new fighters like many BD members in PDF hope. That decision is already right.

I get the sense in the end BD will order KF21.

 

[bluesky]

Ask our Grandson of Nation, Joy Kumar to cough. He will spit out $3,000 million.

People should not worry about a small $300 million.

 

[SoulSpokesman]

@bluesky

Where is our friend @UKBengali these days. Hopefully you havent done him in?

Regards

 

[bluesky]

@bluesky

Where is our friend @UKBengali these days. Hopefully you havent done him in?

Regards

This @UKBengali is from India but pretends from BD. He used to come with two English flags. He changed it to one English and one BD flag.

Next time he better comes with two Hindustani flags. He probably did so already. Welcome Dude!!

 

[bluesky]

@Chute bhai

I agree 25<35 but still USD 25 billion is not bad in absolute amounts. Showbaaz will be thrilled to have that much.

Regards

However, the forecast says the Reserve may go down if the GoB permits the payment of many other arrears.

IMF stipulated some $ 25 billion in reserves in June to get further IMF money. No wonder, the GoB has tightened its flowing out.

 

[SoulSpokesman]

@bluesky

Not a very comfortable position, but not crisis zone either. Oil prices are sliding down and things should be fine.

Regards