WASHINGTON DIARY: Printing money
by Dr Manzur Ejaz, USA
April 1st, 2009
Pakistan, a parody of the US economic model, has already gone through this process of printing money to inundate insufficient roads with vehicles, and homes with machines that require electricity which is not there. If your business goes under, you are forced to declare bankruptcy. But not if you are a government and your treasury has a working printing press. Shaukat Aziz & Co had the State Bank’s printing press working overtime, but it led to an inflation disaster. However, if you are the sole superpower, your treasury would have the largest printing press and no one in the world would challenge you when you buy another country’s goods with just paper. The US is running a printing press economy with no restraint or second thoughts.