February 23, 2016

Would Paper Money Be Outdated Soon



Where all the countries around the world are in hot pursuit of US dollars or Euros to brace foreign exchange reserves, strengthen economies and perk up credit rankings to draw investors’ attentions, these currency issuing economies are relying on Gold!

United States has the largest gold reserves in the world holding 8,133.5 tons, over 72% of total reserves, according to “International Financial Statistics, February 2016” published by World Gold Council. Click here to download latest world official gold reserves by country.

In countries, Germany (2nd), Italy (3rd) and France are (4th) are holding 3,381T (66%), 2,452T (64%) and 2,436 T (60%) are the next three both in terms of gold and percentage of reserves.


China though is the sixth largest gold holder in the world but its ratio to reserves is meager 1.8% despite it has constantly been adding gold to its reserves in 2015. It has nearly gold purchases of in excess of 100 tons in the latter half of the preceding years and the purchase trend is expected to continue this year as well. Russia has also been pushing on gold purchases and has added 21.77 tons of gold to its reserves in January whereas its total addition of gold reserves stood at 208 tons in 2015. It could nevertheless stack gold 13% of reserves which may catch a further boost up this year.

According to United States Geological Survey, the top gold producing countries in the world as of 2011 are (largest to smallest) China (362,000 kg), Australia (258,000 kg), the United States (234,000 kg), Russia (199,642 kg) and South Africa (181,000 kg). The USGS also estimates that an estimated 171,300 metric tons of gold has so far been mined historically by 2011:
  • 29,500 tons held by central banks as official stocks,
  • 33,000 tons held privately as investment,
  • 84,300 tons held privately as jewelry, 20,800 t in other fabricated products, and the remaining 3,600 tons unaccounted
Moreover, World Gold Council in “Gold Demand Trends Full Year 2015” published on February 11, 2016 bares that despite the gold demand increase of 4% year-on-year, full year demand virtually remained unchanged. The demand for the full year 2015 slightly dipped to 4,212 tones, -14 tones in comparison to previous year. BBC shared some interesting facts related to total gold above the ground quoting “Warren Buffett, one of the world's richest investors, says the total amount of gold in the world - the gold above ground, that is - could fit into a cube with sides of just 20m (67ft)”. “A cube made of 171,300 tons would be about 20.7m (68ft) on each side. Or to put it another way, it would reach to 9.8m above ground level if exactly covering Wimbledon Centre Court.”

It is highly consequential that developed world is now reluctant to rely on paper money realizing the importance of precious metals and foreseeing their future economic growth in yellow metal. The United States at top while China and Russia are heavily buying gold although its prices are volatile. Nonetheless we might not be seeing the renaissance of “Gold Currency” in near future but the footsteps are being followed anyways!


February 20, 2016

Indian Fears over Proposed Sale of F-16 to Pakistan



Feared over sale of eight (8) Lockheed Martin F-16 Block-52 fighters with increased performance engines to Pakistan by the United States, India summoned United States ambassador Richard Rahul Verma to bear its disappointment and displeasure.

The proposed sale includes aircrafts, C (2) and D (6) models along with training, technical and logistics supports and supply of radar and electronic warfare equipment for an estimated cost of $699.04 million, according to Defense Security Cooperation Agency (DSCA) news release on Feb 12.

“This proposed sale contributes to U.S. foreign policy objectives and national security goals by helping to improve the security of a strategic partner in South Asia.”

These fighter planes are capable to operate in all-weather, non-daylight environments and “enhance Pakistan’s ability to conduct counter-insurgency and counter terrorism operations and to meet current and future security threats”.

Responding to the proposed sale, the external affairs ministry of India said in a statement that they disagree with their rationale that such arms transfers help combat terrorism.

In a tweet on social media, Indian External Affairs Ministry spokesman Vikas Swarup said "We are disappointed at the decision of the Obama Administration to notify the sale of F-16 aircraft to Pakistan”.

However Pentagon Press Secretary in a Department of Defense briefing on Feb 16 declined India’s concerns “This sale always took into account the regional security situation. We look at our relationship with Pakistan and our relationship with India as separate relationships. And we think this is important capabilities for the Pakistanis to go after terrorists in that country. And as a result, we don't think it should cause concern for India.

“This is a situation -- we think this is a capability that will help Pakistan in its counter-terrorism effort and we think that's in the national security interests of the United States.”

However India is yet unable to absorb this proposed sale and has decided to pile up pressure on Washington to stop the deal. Indian Defense Minister in a television interview feeling hurt termed the sale a “down” in US-India relationship.

Business Standard sources in Ministry of Defense, India say “the US proposal to establish an F-16 production line in India has been dead for some time now. The Pakistan sale only hammers a final nail into that proposal's coffin” despite The Times of India report that Lockheed Martin is ready to manufacture F-16 in India and support the talks between the two countries under “Make in India” flagship.

Now the question is why India is in state of such dismay? Is it some kind of grudges, envy, rivalry or a blend of these all?

Well already unnerved by Pak-China deep relations, now Russia has also been warming up to its cold war foe, Pakistan while India is tilting towards United States in the past couple of years.

In 2014, Russia lifted embargo of arms exports to Pakistan and latter signed MoUs for supply of Mi-35 helicopter and for construction of 1,100 kilometers of LNG pipeline valuing over $2 billion. President Putin is expected to visit Pakistan to ink this ice-breaking LNG deal.

At the same time, China-Pakistan Economic Corridor (CPEC) is being processed on priority basis strengthening both countries’ relation to deepest and meanwhile the United States Okays F-16 sale to Pakistan.

Going through the growing pressure, thanks to Gen. Raheel Sharif upright stance on both terrorism and foreign issues, India is trying to be proactive to undermine the increasing Pakistan’s relations with the world to erase the embarrassment.

According to SIPRI, India is the largest importer of major weapons in the world with a share of 15% in international arms imports for 2010-14. Russia (70%), United States (12%) and Israel (7%) have been their major suppliers for this period. And in 2015, India signed a $3 billion deal with the United States for 22-Appache and 15-Chinook helicopters.

India has estimated defense expenditure of $40.4 billion for 2015-2016 which is 7.7% increase over previous year. Another amount f $10.3 billion was reserved for Ministry of Defense for defense pensions and civil expenditures including which the total defense budget rises to whooping $50.7 billion.

According to a report in Catch News, arms purchases for a value of $60 billion have been cleared since Narendra Modi became Prime Minister. The PM also intended to spend $150 billion to modernize the military by spending $150 billion by 2027.

However the dream “Make in India” is continually tainted as Indian ordinance factories has earned a paltry foreign exchange of $10 million by selling arms during 2011 and 2014; equals the amount allocated for research and development for the organization.

This all-embracing facts feature that India is lacking the valid arguments to futilely show any sorts of concerns or fears over the proposed sale of F-16 to Pakistan since it would actually benefit India as well in the long run to exterminate the terrorism from the region.

February 13, 2016

Pakistan Leading Global War on Terror


CONVOZINE

Pakistan, a victim of terrorism itself and hemmed in a number of financial, political and social challenges has continually been criticized by some think tanks, opinion makers and news analysts worldwide in the name of freedom of expression over indefinite objectives.

It is Farid Zakaria, Kelvin Hulbert, Hussain Haqqani or now Carlotta Gall’s new analysis, Sunday Review, Feb. 7 in The New York Times “Pakistan Hand in the Rise of International Jihad”; each of them ferries the readers to a world of drama, falsification and pessimism.

Quoting Afghan President Ashraf Ghani“It depends on how much regional cooperation we can secure, and how much international mediation and pressure can be exerted to create rules of the game between states”, she says “What he means is it depends on how much international pressure can be brought to bear on Pakistan to cease its aggression”.

Not a soul could refute Mr. Ghani’s thoughts that there must be no cross-border interventions by any country to neighboring or any other state globally but tagging Pakistan without knowing the regional realities, no sensible being could buy this argument.

For instance, in the very next section, she herself renounces his assertion referring to Afghan assessors “Critics of the Afghan leadership say it’s not Pakistan’s fault that its neighbor is falling apart. They point to the many internal failings of the Afghan government: political divisions, weak institutions, warlords and corruption”.

But, despite divided opinions in Afghanistan itself, she continues to substantiate that experts have found enough evidence for Pakistan help Taliban offensives and the United States and China seeking Pakistan’s support to persuade Taliban in establishing peace in the region.

Again, she overlooks the regional grudge since who undermined the peace process when Pakistan had facilitated peace talks between both Afghanistan and Taliban in Islamabad last year where the United States and China were also attending as observers?

If Pakistan had gathered all the stake holders on the table then linking it with just one of them truly sounds prejudiced. She is either lacking trust in her own the United States’ government or stocking some malafide intentions.

AL JAZEERA

And likewise, if facilitating talks with Taliban is scandalous then why the United States and China has been involved in the whole proceedings. While it is not far back when Taliban were allowed to open an office in Doha, Qatar to resume talk with whom? Also in 1980s, President of the United States, Ronald Reagan, hold discussions with the Afghan rebels turned Taliban to downfall USSR declaring them “These gentlemen are the moral equivalents of America’s founding fathers”.

Laying charge on intelligence services of Pakistan to intervening in a number of foreign conflicts is yet another imaginary landscape hypothesis of her. Had Pakistan been managing international mujaheddin why it is being target by terrorists from many parts of the world?

The epic fraction of the analysis surfaces when Ms. Gall startlingly from nowhere, just on the basis of speculations, made an evil shot to blot Pakistan on the rise of Islamic State (ISIS).

This has been very strongly and justly responded by Nadeem Hotiana, Pakistan’s Press Attaché in Washington “Her reference to report that Pakistan is responsible for the rise of ISIS in the Middle East ignores the increasingly complex regional politics. Likewise, her suggestion that Pakistan was involved in moving 300 Pakistani jihadists to the core of the ISIS fight is far-fetched”.

“Putting blame on Pakistan for every ill of the world may rather be construed as yet another attempt to undermine the fledgling reconciliation process in Afghanistan, where Pakistan, together with China and the United States, is trying its best to bring peace to the region.”

Then she goes on to disparage Pakistan for the latest Taliban offensive at the time of withdrawal of United States and NATO forces from Pakistan, acknowledging at the same time the Pakistan’s efforts to hit Taliban bases, torture chambers, ammunition dumps and clearing towns and coping a million of IDPs.

It is more like “Neither Here Nor There” tale. If Pakistan does not respond to the United States call for “war on terror”, it is unpardonable and if it cracks down the evils of humanity, yet Pakistan role is indistinct.

In fact, Pakistan kicked off “Zarb-e-Azb” in the wake of Karachi Airport attack in 2014 and stepped up with the brutal massacre of innocent kids in APS, Peshawar. Linking it with the pulling out of the United States and NATO forces is nothing more than some of sort of frustration.

Now it is the collective responsibility of Pakistan, Afghanistan and the United States to not walk out on this war on terror unsettled and take harsh measures inside their territories so that the terrorists could be contained and knocked out rather opting for feeble way out to escape.

Focusing the attacks from Pak-Afghan borders against American, international and Afghan target ignoring mass casualties in Pakistan from the same area is agonizing. A comprehensive series of air strikes and ground attacks have been and are being launched by Pakistan armed forces which are failed to notice in this review.

“Pakistan using Taliban selectively” is giving an insight as Taliban are the troops of Pakistan and obey its constitution whereas hundreds of thousands of civil and armed casualties discards the legitimacy of this premise. Interestingly, the author completely takes out India’s continued endeavors to destabilize Pakistan through Afghanistan and Baluchistan, a province of Pakistan.

The existence of Ayman-al-Zawahri in Baluchistan-Pakistan must be clandestine information for the Pakistan, Afghanistan and the United States who all remain oblivious on such dazzling facts notwithstanding plunking all social, intelligence and technological resources.

Shouldn’t be shared officially, off course secretly, to capture high valued target instead of releasing through media?

Why would Pakistan guard Taliban and Al-Qaeda who have claimed responsibility for killings of bloggers and activists in Karachi-Pakistan and Bangladesh?

And then the author tries to emasculate Pak-China enduring relation by quoting Chinese Uighurs with one of those she met more than 30 year ago. China never inquired Pakistan on such a crucial national issue and instead its support and cooperation across sectors with Pakistan has been beefy and unparalleled, self evident of how seriously China takes these conspiracies. We are now living in 2016 and descending in the past would unlock many hidden sagas like the United States proxy war in Afghanistan.

Lastly, let’s take a look on these media reports Taliban Are Not Terrorists, or So Says the White House ABC News; 29-January2015 and Taliban Not a Terrorist Group, White House Deputy Press Secretary Says The Washington Times; 28-January-2015 where Pakistan hopefully cannot be accused on.

Then Jeremy R. Hound's "How the CIA Helped Fuel the Rise of ISIS" dated January 20, 2016 and "NYT Continues to Downplay How CIA-Funded Arms to Syrian Rebels Helped Strengthen Jihadists" dated October 23, 2013 unveils the truths so as Roberts Gates in Business Insider dated January 20, 2016 "Former US defense secretary describes the 2 main factors that led to the rise of ISIS".

Did any of responsible government officials from any of the countries around the world regard these contrived stories ever? Why should Pakistan pay heed to it now?