Financial Crisis Unleashed: Inside Steve Hanke’s Shocking Final Call with Imran Khan and South Asia’s Descent into Chaos!

The Money Doctor and 'Captain Pakistan': Steve Hanke on his last call with Imran Khan and the doom loop gripping South Asia

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IMRAN KHAN: TWO YEARS IN COLD LOCKUPโ€”A CRICKETER’S NIGHTMARE!

Former Prime Minister and Cricket Legend IMRAN KHAN ROTTING IN A "DEATH CELL"!

August 5th wasn’t just an ordinary dayโ€” it marked an excruciating two-year anniversary of Imran Khan’s unjust imprisonment in Rawalpindi’s notorious Adiala jail. This somber milestone finds the beloved athlete and politician under the tyrannical control of General Asim Munir, who has sentenced Khan to solitary confinement in a cramped six-by-eight "death cell." Itโ€™s a heart-wrenching tale for anyone other than โ€œCaptain Pakistan,โ€ whoโ€™s defied all odds and survived in this frigid hell.

"A Zoom Call to the Brink of DESPAIR!"

The last time Khan and I connected was a gripping late-night Zoom on April 2, 2023. Picture this: me in Baltimore, him in Lahore, engaged in a heated, hour-and-a-half conversation about the dire economic plight of Pakistan. As the clock crept past midnight in Lahore, we wrestled with what catastrophe awaited the nation.

DEBT AND DESPERATION: CAN A CURRENCY BOARD BE PAKISTAN’S GREAT SAVIOR?

The crux of our passionate discourse centered on Pakistan’s crumbling economy, where the rupee has nosedived a staggering 48% against the U.S. dollar since mid-2021! With the nation trapped in an economic doom loop, I proposed an audacious solutionโ€”a currency board! Yes, you heard that right! This precise mechanism has rescued countries like Estonia, Lithuania, and Bulgaria from the dark depths of financial oblivion.

But WHAT exactly is a currency board? Itโ€™s a powerhouse that issues money convertible into a foreign anchor currency (like the U.S. dollar) at a fixed exchange rate! Thereโ€™s no room for half-measures here; it requires holding reserves equal to its monetary liabilitiesโ€”100% SOLID backing! This isnโ€™t just some wishy-washy policy; itโ€™s a direct lifeline ready to be thrown to a drowning economy!

LESSONS FROM BULGARIA: A MIRACULOUS TURNAROUND!

Think about thisโ€”back in 1997, Bulgaria was facing a hellscape of hyperinflation and a banking crisis. But with the swift implementation of a currency board, everything changed overnight! Bye-bye hyperinflation, HELLO economic boom! Money-market interest rates plunged from insane triple digits to a mere 2.4%. Bulgaria transformed from financial despair to one of the EUโ€™s economic success storiesโ€”don’t you wish Pakistan could do the same?!

PAKISTAN ON THE BRINK: IS A CURRENCY BOARD THE MAGIC FIX?

Imran Khan grasped the unique complexities of implementing a currency board like no one else. We strategized intensely that night, each of us acutely aware of the monumental stakes at play. Pakistanโ€™s economy is a ticking time bomb, characterized by rampant capital flight and an Everest of debt. In fact, 37% of the funds meant for Pakistan have vanished, tucked away in the glitzy extravagance of Dubai!

Pakistan has already begged the International Monetary Fund 24 times and counting to keep its economy afloat. But with Khan behind bars, it’s crystal clear why the elitesโ€”including General Munirโ€”want him silenced. Theyโ€™re aching to keep their dirty money parked in Dubai!

As I pen this on the second anniversary of his incarceration on ridiculous charges, the burning question remains: Will the courageous Imran Khan survive this relentless attack on democracy? Or will he be forever trapped in the throes of a corrupt power struggle? The clock is tickingโ€”Pakistan is in desperate need of a hero!

photo credit: fortune.com

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Source: USD @ Sun, 10 Aug.