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A deadly option?

25 December 2004, 18:00 PM
LETTERS TO THE EDITOR
By MF Karim Uttra, Dhaka
25 December 2004, 18:00 PM
US Dollar replaced Gold as medium of exchange over five decades ago and precious commodities like oil, metals, food and foreign trades are done in US Dollars. The value of US dollar reduced by 30% against Euro in last three years, and with high oil price, another slide of 30% would trigger a recession and disaster to poor countries including Bangladesh. The reason being, the present US govt has a budget deficit and trade deficit of over a few trillion dollars because of the imaginary war on Osama bin Laden who was probably killed but which is not disclosed fearing massive backlash the news of his deatj could trigger among millions of Mulsims around the world.

Mr. Bush's fiscal policy to cut tax for filthy rich and reducing social security benefit to poor will certainly raise social unrest. Mr. Bush's policy to squeeze out the milk from the Golden Goose i.e. oil rich Middle East will not work because Saudi Arabia is running a balance of payment deficit & Gulf States borrowed heavily for their development programme. The world's capital market has dried up and Japan is forced to buy over three trillion dollars of US Treasury Bonds at cheap rates. With high unemployment rate in USA the purchasing power of its consumers will disappear.

The World recession is inevitable and with it Euro as world currency. Global corporations like American Airlines, TWA, World COM and Enron and others went bankrupt.

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Russian Republic has opted for Euro currency. Will Bangladesh dare to ditch US Dollar?