Govt plans massive printing of currency

[Imran Khan]

Me and drink??? Tauba tauba

ye kaho ajj kiyoon nhi pee hai lolz ? you are talking in sense because you miss drink of tonight

 

[President Camacho]

ya, talking about gold, how are gold reserves a factor for currency value?

I am sure it's been quite a while since the currency value became independent of gold reserves. Gold reserves still hold a very strong value, esp to stave off bankruptcy and paying off debts, but I doubt it has any direct effect specifically on the value of a nation's currency. You may say that gold is an international currency acceptable by all yet independent of any other currency that belongs to any nation (dollar for the US, Ruble for Russia, Pound Sterling for the UK etc.)

Most of the countries that buy gold in large amounts do so to keep it for the unforeseen future where market crashes may bring them to the stage of bankruptcy, for example China/US/India etc. Other than that, no currency is convertible into official gold reserves (the gold held by the central banks).

 

[lem34]

I think demand for commodity will continue to rise. As more people in india china and developing worldd want their share of resourses. Hense they will increase in price in the future

---------- Post added at 09:36 PM ---------- Previous post was at 09:35 PM ----------



yaar could be red bull or coffee lol

self delete

 

[President Camacho]

yaar could be red bull or coffee lol

Bull's eye lol Abhi to coffee hi pi raha hoon

ye kaho ajj kiyoon nhi pee hai lolz ? you are talking in sense because you miss drink of tonight

Piya tha bhai sahab... lekin quarter ka bhi aadha, baaki aadha rakha hua hai... aap kahein to ghoont mar loon aur fir post karuun idhar?

 

[Imran Khan]

so its mean pakistan will use its gold reserve in any time when mess will over flow?

as per wiki pakistan is number 24 in world with gold reserve of 184.4 tons

itna gold damn zardari to dekh ke mar jay ga

---------- Post added at 11:54 PM ---------- Previous post was at 11:53 PM ----------

Bull's eye lol Abhi to coffee hi pi raha hoon



Piya tha bhai sahab... lekin quarter ka bhi aadha, baaki aadha rakha hua hai... aap kahein to ghoont mar loon aur fir post karuun idhar?

rehny de wesy bhi ajkal sookha para hai main ne kitny din se chakhi bhi nhi .main soch raha hoon 3 din dubai ka chaker lagana chayee

 

[lem34]

so its mean pakistan will use its gold reserve in any time when mess will over flow?

as per wiki pakistan is number 24 in world with gold reserve of 184.4 tons

itna gold damn zardari to dekh ke mar jay ga

---------- Post added at 11:54 PM ---------- Previous post was at 11:53 PM ----------



rehny de wesy bhi ajkal sookha para hai main ne kitny din se chakhi bhi nhi .main soch raha hoon 3 din dubai ka chaker lagana chayee

zardaris already prob nicked it and replaced it with lead painted a gold colour lol

 

[President Camacho]

so its mean pakistan will use its gold reserve in any time when mess will over flow?

as per wiki pakistan is number 24 in world with gold reserve of 184.4 tons

Yar, gold is nothing more than a more stable forex reserve. Sirf is liye ki vo sunahra hai, there is a glamor attached to it. It doesn't mean what it used to in older times when you could demand gold from the central bank for the currency you held.

rehny de wesy bhi ajkal sookha para hai main ne kitny din se chakhi bhi nhi .main soch raha hoon 3 din dubai ka chaker lagana chayee

Yea... when PDF is down, Imran finds no reason to drink

 

[Al Bhatti]

The country can go into hyper inflation if they do this.....why dont their advisers tell them this?

Since when did we have professional honest people holding leadership and top advising posts in Pakistan?

 

[Faiez]

Since when did we have professional honest people holding leadership and top advising posts in Pakistan?

to my knowledge, advisers are not corrupt. They can never be corrupted. They are not elected, they are hired on merit base.

so like that other guy said, maybe its the leaders ignoring the advisers...

 

[shuntmaster]

Isn't it a rule in economics that the federal government can print notes in a year of equal value to the GDP growth. Which means if the GDP last year was $100billion and a annual growth of 5%, then the government can print only $5billion worth of notes? If they exceed that, it will devalue the the currency and cause inflation.

 

[Faiez]

Isn't it a rule in economics that the federal government can print notes in a year of equal value to the GDP growth. Which means if the GDP last year was $100billion and a annual growth of 5%, then the government can print only $5billion worth of notes? If they exceed that, it will devalue the the currency and cause inflation.

they've already been printing as much as 15% extra every year for the past few years..when growth rate never went above 5%....

But there are more things to consider here. Not all the money is circulated, some stays in form of savings as well...other is held as cash ( although rare ) and some is put in gold etc which causes no inflation. Investing in gold causes no inflation of things which are useful ( more useful than gold ).

so a small change in the monetary base CAN cause a greater change in price levels. And also it may cause lesser change proportional to the change in money supply. That entirely depends on the state of the economy...and where the industry is headed...

 

[Veeru]

Not a good decision.