PAS tangguh muktamar jika bertembung tarikh PRK

PAS tangguh muktamar jika bertembung tarikh PRK

PETALING JAYA: PAS akan menangguhkan muktamarnya bagi 2016 yang dijadualkan bermula pada Jun depan jika PRK Sungai Besar di Selangor dan Kuala Kangsar di Perak ditetapkan pada tarikh yang sama dengan perhimpunan tahunan parti Islam itu.

Timbalan Presiden PAS Datuk Tuan Ibrahim Tuan Man berkata barisan kepimpinan pusat parti akan membuat keputusan selepas SPR membuat pengumuman berhubung dua PRK berkenaan.

Muktamar PAS ke-62 pada tahun ini akan diadakan pada 1 hingga 4 Jun di Kota Baru, Kelantan.

Esok, SPR akan membuat pengumuman berhubung tarikh dua PRK berkenaan. Pemerhati politik meramalkan ia akan dijalankan hampir serentak penghujung bulan ini dengan tarikh membuang undi mungkin jatuh pada 4 Jun.

“Kita tunggu pengumuman dulu dan jika PRK ditetapkan pada tarikh perhimpunan kami, kita akan menangguhkannya supaya pemimpin dan ahli boleh memberi tumpuan penuh kepada PRK.

“Kita akan mengadakan perhimpunan selepas tarikh itu kerana kami akan terbabit dengan persediaan dan kempen dalam PRK berkenaan,” katanya dipetik daripada Malay Mail Online.

PRK bagi Parlimen Sungai Besar dan Kuala Kangsar perlu diadakan selepas kematian penyandangnya Datuk Noriah Kasnon dan Datuk Wan Mohammad Khair-il Anuar Wan Ahmad yang maut dalam nahas helikopter di Sebuyau, Sarawak minggu lalu.

Secara tradisinya, kedua-dua kerusi itu ditandingi PAS, secara satu lawan satu dengan BN.

Tuan Ibrahim berkata beliau tidak menjangkakan berlakunya pertandingan tiga penjuru di kedua-dua kerusi itu kerana ia selama ini memang kerusi PAS.
Tags; Bahasa, PAS, muktamar, PRK, Sungai Besar, Kuala Kangsar, SPR.

Obama weighs lifting Vietnam arms embargo

Obama weighs lifting Vietnam arms embargoWASHINGTON: The White House is considering lifting a decades-old arms embargo against Vietnam in time for President Barack Obama’s visit to the booming Southeast Asian nation this month.

As both countries warily eye China’s military build-up in the disputed South China Sea, officials said Obama is weighing an end to the Cold War-era ban on lethal weapons exports.

Obama begins his first visit to Vietnam on May 21, some 41 years after the North Vietnamese army and its Viet Cong allies marched into Saigon, humiliating the world’s preeminent superpower.

Now the former foes — who fought a murderous 19-year war that defined both nations and killed untold thousands — are putting ideology aside and gradually building deeper trade, military and political ties.

Washington and Hanoi have been pushed together by Vietnam’s increasingly vibrant 80-million-people-strong economy, Obama’s “pivot to Asia” and a mutual desire to limit China’s regional clout.

Under President Xi Jinping, Beijing has taken a more assertive stance on territorial claims in the South China Sea — deploying materiel to the disputed Spratly Islands.

Recent military reforms announced by Xi dramatically increased navy spending.

With that, some inside the Obama administration argue that the time has come for the United States to help bolster Vietnam with the sale of advanced military equipment.

“It is a relatively easy argument for those who favor lifting the ban,” said Christian Lewis of the Eurasia Group, a consultancy.

“The benefits of deepening strategic ties to Vietnam and simultaneously containing China exceed the perceived downside of supplying Vietnam military hardware,” he added.

If the ban is lifted, most observers expect sales to start small — in part to assuage concerns about human rights, and in part not to spook China too much.

Recent preparatory visits by US-based arms contractors to Vietnam focused on the sale of less controversial maritime surveillance and patrol hardware.

But in the medium term, the embargo would open the way for sales across the board.

“This is going to be a long term thing, but it has strategic importance because of the psychological shift,” said Richard Fontaine, president of the Center for a New American Security.

Vietnamese military spending has increased dramatically in the last decade, by 130 percent since 2005, according to the Stockholm International Peace Research Institute.

China and Vietnam share a checkered history of border disputes, invasions and conflict and anti-Chinese sentiment has helped frame Vietnamese national identity.

During the Cold War, Vietnam was closer to the Soviet Union than it was to its behemoth neighbor to the north.

Much of Vietnam’s arsenal today is made up of aging Russia-built equipment.

But some in the US Congress still oppose lifting the arms embargo, voicing concern that weapons could be used to trample human rights.

Vietnam’s ruling Communist Party retains a white knuckle grip political power and its cadres’ economic interests.

Obama is expected to meet the country’s de facto leader, party Secretary General Nguyen Phu Trong when he visits Hanoi, as well as Tran Dai Quang — the former head of Vietnam’s controversial domestic security force who became president after an April party Congress.

But the end of the ban seems likely. Senator John McCain, one of an estimated seven million American Vietnam War veterans, has publicly stated his support for sending arms.

New era

The White House would like the visit to turn a page on the war, focusing on a pending trans-Pacific trade deal and on changing American attitudes about Vietnam and Vietnamese attitudes about America.

“Vietnam has a dynamic economy and they have a rapidly growing middle class,” said White House spokesman Josh Earnest.

But there are still doubts about how that TPP trade deal would be implemented, in a country where whole sectors are run like fiefdoms of senior party officials and competition is intra-party.

Vietnam is “a country that is trying to decide exactly how it’s going to orient its economy in the decades ahead,” Earnest acknowledged.

Still, Western diplomats spot an opportunity in Vietnam’s eagerness to diversify trade partners outside China.

“We are looking at potentially transformative growth over the next decade, simply because footwear and garment manufacturers are going to be able to export to the United States,” said Lewis.

– AFP

Terpaksa nyanyi Negaraku untuk bukti diri rakyat Malaysia

Terpaksa nyanyi Negaraku untuk bukti diri rakyat Malaysia

PETALING JAYA: Gara-gara gagal menunjukkan kad pengenalan ketika ditahan polis trafik, seorang wanita terpaksa menyanyi lagu Negaraku bagi membuktikan dirinya adalah warganegara Malaysia.

Menurut laporan China Press, ketika kejadian pada awal bulan ini, polis meminta wanita berusia 25 tahun itu menunjukkan kad pengenalannya semasa melalui satu sekatan jalan, kerana mereka mengesyaki dia adalah warga asing.

Walaupun dia ada menunjukkan lesen memandunya, namun polis tidak menerimanya dan mahu wanita itu menyanyikan lagu Negaraku bagi membuktikan dirinya bukan warga China atau Vietnam.

Menurut sumber, wanita itu berbohong dengan mengatakan kad pengenalannya hilang pada hari kejadian, walhal difahamkan dia kehilangan Mykadnya dua bulan lalu dan tidak membuat laporan polis untuk memohon kad pengenalan baru.

Polis trafik itu bagaimanapun melepaskan wanita berkenaan, meskipun dia tidak dapat menyanyi lagu Negaraku yang lengkap.

Wanita berkenaan kemudiannya memuat naik kejadian itu ke Facebook dan mendapat pelbagai komen yang menyatakan dia patut bersyukur kerana tidak dikenakan tindakan gara-gara tidak mempunyai kad pengenalan. Catatan itu kemudiannya dipadamkan wanita terbabit.

Mengulas kejadian itu, Ketua Trafik Pasukan Jabatan Ketenteraman Awam (KDN/KA) Bukit Aman, Asisten Komisioner Mahamad Akhir Darus berkata, SOP polis trafik tidak menyatakan rakyat perlu menyanyi lagu Negaraku untuk membuktikan diri adalah warganegara Malaysia.

Sebaliknya beliau berkata, polis trafik berhak memilih dan menentukan cara tersendiri ketika berdepan pesalah lalu lintas.

“Polis trafik itu tidak salah dalam kes ini, cuma mereka ada cara tersendiri untuk menghadapi situasi sedemikian,” katanya kepada akhbar berbahasa Cina itu.

Terpaksa nyanyi Negaraku untuk bukti diri rakyat Malaysia

Terpaksa nyanyi Negaraku untuk bukti diri rakyat Malaysia

PETALING JAYA: Gara-gara gagal menunjukkan kad pengenalan ketika ditahan polis trafik, seorang wanita terpaksa menyanyi lagu Negaraku bagi membuktikan dirinya adalah warganegara Malaysia.

Menurut laporan China Press, ketika kejadian pada awal bulan ini, polis meminta wanita berusia 25 tahun itu menunjukkan kad pengenalannya semasa melalui satu sekatan jalan, kerana mereka mengesyaki dia adalah warga asing.

Walaupun dia ada menunjukkan lesen memandunya, namun polis tidak menerimanya dan mahu wanita itu menyanyikan lagu Negaraku bagi membuktikan dirinya bukan warga China atau Vietnam.

Menurut sumber, wanita itu berbohong dengan mengatakan kad pengenalannya hilang pada hari kejadian, walhal difahamkan dia kehilangan Mykadnya dua bulan lalu dan tidak membuat laporan polis untuk memohon kad pengenalan baru.

Polis trafik itu bagaimanapun melepaskan wanita berkenaan, meskipun dia tidak dapat menyanyi lagu Negaraku yang lengkap.

Wanita berkenaan kemudiannya memuat naik kejadian itu ke Facebook dan mendapat pelbagai komen yang menyatakan dia patut bersyukur kerana tidak dikenakan tindakan gara-gara tidak mempunyai kad pengenalan. Catatan itu kemudiannya dipadamkan wanita terbabit.

Mengulas kejadian itu, Ketua Trafik Pasukan Jabatan Ketenteraman Awam (KDN/KA) Bukit Aman, Asisten Komisioner Mahamad Akhir Darus berkata, SOP polis trafik tidak menyatakan rakyat perlu menyanyi lagu Negaraku untuk membuktikan diri adalah warganegara Malaysia.

Sebaliknya beliau berkata, polis trafik berhak memilih dan menentukan cara tersendiri ketika berdepan pesalah lalu lintas.

“Polis trafik itu tidak salah dalam kes ini, cuma mereka ada cara tersendiri untuk menghadapi situasi sedemikian,” katanya kepada akhbar berbahasa Cina itu.

PAS gesa parti pembangkang lain tidak letak calon di dua PRK

PAS gesa parti pembangkang lain tidak letak calon di dua PRK

PETALING JAYA: PAS menggesa parti pembangkang lain tidak menurunkan calon mereka dalam Pilihan Raya Kecil (PRK) di Sungai Besar dan Kuala Kangsar.

Timbalan Presiden PAS, Datuk Tuan Ibrahim Tuan Man berkata, tindakan meletakkan calon semata-mata untuk menguji sokongan tidak akan memberikankelebihan, sebaliknya hanya akan menguntungkan BN.

“Sehubungan dengan PRK Sungai Besar dan Kuala Kangsar yang akan diadakan dalam waktu terdekat, diharapkan tiada parti pembangkang lain yang meletakkan calon sekadar untuk menguji sokongan.

“Hal ini kerana, tindakan sedemikian tidak lebih hanya memberi peluang besar bagi BN memenangi PRK ini,” katanya dalam satu kenyataaan hari ini.

Ujar beliau lagi, pemimpin di blok pembangkang perlu sedar pertembungan sesama blok pembangkang hanya akan merealisasikan bidalan “yang kalah jadi abu, menang jadi arang”.

“PAS akan bertempur habis-habisan terhadap UMNO/BN di PRK Sungai Besar dan Kuala Kangsar. Kedua-dua kerusi ini ialah kerusi tradisi PAS, oleh itu PAS telah tegaskan akan meneruskan tradisi dengan meletakkan calon di kedua-dua Parlimen ini.

“Fokus blok pembangkang ialah menumbangkan BN. Kalau ini terus menjadi matlamat penyertaan dalam PRK ini, maka sewajarnya semua pihak berusaha agar BN dapat dikalahkan.

“Sebarang tindakan mana-mana parti pembangkang yang meletakkan calon bermakna mereka memberi tongkat kepada BN,” tegas beliau lagi.

Pada masa sama, Tuan Ibrahim turut menegaskan komitmen PAS untuk terus menentang BN di Sarawak dan dua PRK akan datang adalah bukti paling kukuh tuduhan PAS hendak bergabung dengan UMNO-BN adalah fitnah semata-mata.

“Fitnah itu berlegaran sehingga hari ini dan dipercayai sengaja disebarkan bagi memecahkan PAS dan membenarkan tindakan menubuhkan parti baru,” jelasnya lagi.

Tarikh bagi PRK Sungai Besar dan Kuala Kangsar bakal diumumkan Suruhanjaya Pilihan Raya hari ini, susulan kematian dua penyandang di Parlimen itu dalam tragedi helikopter terhempas di Sungai Batang Lupar, Sarawak minggu lalu.

Timbalan Menteri Perusahaan Perladangan dan Komoditi, Datuk Noriah Kasnon bersama Ahli Parlimen Kuala Kangsar, Datuk Wan Mohammad Khair-il Anuar Wan Ahmad yang juga Pengerusi Lembaga Minyak Sawit Malaysia antara dua daripada enam mangsa yang terkorban dalam nahas udara itu.

PAS gesa parti pembangkang lain tidak letak calon di dua PRK

PAS gesa parti pembangkang lain tidak letak calon di dua PRK

PETALING JAYA: PAS menggesa parti pembangkang lain tidak menurunkan calon mereka dalam Pilihan Raya Kecil (PRK) di Sungai Besar dan Kuala Kangsar.

Timbalan Presiden PAS, Datuk Tuan Ibrahim Tuan Man berkata, tindakan meletakkan calon semata-mata untuk menguji sokongan tidak akan memberikankelebihan, sebaliknya hanya akan menguntungkan BN.

“Sehubungan dengan PRK Sungai Besar dan Kuala Kangsar yang akan diadakan dalam waktu terdekat, diharapkan tiada parti pembangkang lain yang meletakkan calon sekadar untuk menguji sokongan.

“Hal ini kerana, tindakan sedemikian tidak lebih hanya memberi peluang besar bagi BN memenangi PRK ini,” katanya dalam satu kenyataaan hari ini.

Ujar beliau lagi, pemimpin di blok pembangkang perlu sedar pertembungan sesama blok pembangkang hanya akan merealisasikan bidalan “yang kalah jadi abu, menang jadi arang”.

“PAS akan bertempur habis-habisan terhadap UMNO/BN di PRK Sungai Besar dan Kuala Kangsar. Kedua-dua kerusi ini ialah kerusi tradisi PAS, oleh itu PAS telah tegaskan akan meneruskan tradisi dengan meletakkan calon di kedua-dua Parlimen ini.

“Fokus blok pembangkang ialah menumbangkan BN. Kalau ini terus menjadi matlamat penyertaan dalam PRK ini, maka sewajarnya semua pihak berusaha agar BN dapat dikalahkan.

“Sebarang tindakan mana-mana parti pembangkang yang meletakkan calon bermakna mereka memberi tongkat kepada BN,” tegas beliau lagi.

Pada masa sama, Tuan Ibrahim turut menegaskan komitmen PAS untuk terus menentang BN di Sarawak dan dua PRK akan datang adalah bukti paling kukuh tuduhan PAS hendak bergabung dengan UMNO-BN adalah fitnah semata-mata.

“Fitnah itu berlegaran sehingga hari ini dan dipercayai sengaja disebarkan bagi memecahkan PAS dan membenarkan tindakan menubuhkan parti baru,” jelasnya lagi.

Tarikh bagi PRK Sungai Besar dan Kuala Kangsar bakal diumumkan Suruhanjaya Pilihan Raya hari ini, susulan kematian dua penyandang di Parlimen itu dalam tragedi helikopter terhempas di Sungai Batang Lupar, Sarawak minggu lalu.

Timbalan Menteri Perusahaan Perladangan dan Komoditi, Datuk Noriah Kasnon bersama Ahli Parlimen Kuala Kangsar, Datuk Wan Mohammad Khair-il Anuar Wan Ahmad yang juga Pengerusi Lembaga Minyak Sawit Malaysia antara dua daripada enam mangsa yang terkorban dalam nahas udara itu.

Government to lift freeze on four sectors

Government to lift freeze on four sectors

PETALING JAYA: The Government will soon allow the hiring of foreign workers in four sectors, The Star reported today.

The daily quoted Transport Minister Liow Tiong Lai as saying that the four sectors are manufacturing, construction, plantation and furniture-making industries.

“In view of the acute shortage, we have to lift the suspension to allow these sectors to bring in foreign workers,” he said, adding that the Cabinet was however, looking to improve the system for hiring foreign workers.

According to Liow, the freeze on other sectors will be gradually lifted, and on a case-by-case basis. Liow said it is pertinent for the Government to regulate and have proper control over the hiring of foreign workers in Malaysia.

The Star had previously reported that a survey by the Federation of Malaysian Manufacturers (FMM) showed that 84 per cent of manufacturers faced a labour shortage.

Government to lift freeze on four sectors

Government to lift freeze on four sectors

PETALING JAYA: The Government will soon allow the hiring of foreign workers in four sectors, The Star reported today.

The daily quoted Transport Minister Liow Tiong Lai as saying that the four sectors are manufacturing, construction, plantation and furniture-making industries.

“In view of the acute shortage, we have to lift the suspension to allow these sectors to bring in foreign workers,” he said, adding that the Cabinet was however, looking to improve the system for hiring foreign workers.

According to Liow, the freeze on other sectors will be gradually lifted, and on a case-by-case basis. Liow said it is pertinent for the Government to regulate and have proper control over the hiring of foreign workers in Malaysia.

The Star had previously reported that a survey by the Federation of Malaysian Manufacturers (FMM) showed that 84 per cent of manufacturers faced a labour shortage.

Why being the king of currencies has its pitfalls

Why being the king of currencies has its pitfallsNEW YORK: The world is getting an object lesson on the problems of having one dominant global currency and even the supposed prime beneficiary, the United States, can see the downside.

Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what happens when a world with its highest-ever peacetime debt pile faces even a hint of higher interest rates.

Despite a constant narrative about US households and banks paying down debts ever since the global credit crash eight years ago, any ‘deleveraging’ that did happen was more than offset by higher government, corporate and personal debt around the globe in Europe, China and across emerging markets.

In fact, aggregate world debt is now far higher than it was before the 2007-08 crash.

“The saga of debt is far from over,” says a report from Morgan Stanley. It goes on to explain why Morgan Stanley expects demographic-led shifts in savings and investment to soon push interest rates higher and transform that debt mountain into additional deadweight on world growth over next five years.

But the role of the US dollar as the world’s main reserve currency denominating large chunks of that debt pile is showing up as complicating factor that’s added to risk of instability.

The first US interest rate increase in almost a decade in December – just a quarter of a percentage point – was enough to trigger a convulsion in world markets that led to the worst start to a year for global stocks since World War Two.

Underlining ’cause and effect’, the subsequent recovery only came about once the Federal Reserve hastily made clear it was pressing the pause button precisely because of seismic events in world finance.

Few doubt a growing US economy that’s near full employment can absorb some normalization of interest rates from near zero, and a higher dollar goes hand in hand with that.

But the rest of the world clearly can’t.

The Bank for International Settlements estimates that while US dollar dominance means it accounts for almost 90 percent of all foreign exchange transactions and some 60 percent of hard currency reserves. But crucially it also accounts for about 60 percent of all debts and assets outside the United States.

And if the rest of the world goes into shock because of the higher cost of servicing and paying back those dollar debts, the boomerang effect on U.S. exporters, commodity firms and the wider economy just ends up tying the Fed’s hands in ways made crystal clear this year already.

Ambivalence

No surprise, then, the US central bank has no deep love for the dollar’s prime reserve currency status – even though it’s been described by Europeans and others over the years as an “exorbitant privilege” that ensures the world lends to the US Treasury in its own currency at low interest rates regardless of dollar strength.

Speaking at an event in Zurich on Tuesday on the dollar’s global status, New York Fed chief Bill Dudley said Americans should not be perturbed if other currencies such as the euro or China’s yuan eventually eat into the dollar’s share of reserves.

“If other countries’ currencies emerge to gain stature as reserve currencies, it is not obvious to me that the United States loses,” he said, as long as it “is being driven by their progress, rather than by the US doing a poorer job.”

While that’s far from wishing away dollar hegemony, it speaks to the greater ambivalence among central bankers toward reserve status than their national treasury chiefs – given how widespread use of the currency can compromise domestic policy.

It’s that tension that risks sowing instability everywhere.

If the Fed can’t adjust monetary policy because of fears of transmitting a self-defeating shockwave around the world via the dollar, then there’s understandable concern that artificially low Fed policy just stores up even more debt and international accounting imbalances and undermines the very currency that’s supposed to play anchor.

At the same event in Zurich, Claudio Borio, head of the monetary and economic Department of the BIS, said the dollar’s role could potentially exacerbate instability by allowing the United States to run larger and more persistent fiscal and current account deficits – and to run looser monetary policy for longer.

What’s more, a resulting Fed easing bias spreads to developed and emerging economies as governments resist a weaker dollar for competitiveness or financial stability reasons, Borio added.

“Easing begets easing,” he said.

For Morgan Stanley, this is just leads to ever-higher debt, and there are no painless ways out of a problem that will start to hurt significantly over the coming years – only a series of “less painful” options including the option of consolidating debts and making them permanent or perpetual.

In the meantime, the US bank said, the dollar itself will most likely push higher again, if only because the US economy is probably the only one that can absorb a rising exchange rate in this environment.

For Borio, a more ‘pluralistic’ system with many world currencies sharing the reserve role doesn’t by itself solve any problem, either. There would then be no credible single anchor.

Hard-headed cooperation and joint decision making may be the only answer.

“This means not just putting one’s house in order, but also putting our global village in order.”

Reuters

Why being the king of currencies has its pitfalls

Why being the king of currencies has its pitfallsNEW YORK: The world is getting an object lesson on the problems of having one dominant global currency and even the supposed prime beneficiary, the United States, can see the downside.

Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what happens when a world with its highest-ever peacetime debt pile faces even a hint of higher interest rates.

Despite a constant narrative about US households and banks paying down debts ever since the global credit crash eight years ago, any ‘deleveraging’ that did happen was more than offset by higher government, corporate and personal debt around the globe in Europe, China and across emerging markets.

In fact, aggregate world debt is now far higher than it was before the 2007-08 crash.

“The saga of debt is far from over,” says a report from Morgan Stanley. It goes on to explain why Morgan Stanley expects demographic-led shifts in savings and investment to soon push interest rates higher and transform that debt mountain into additional deadweight on world growth over next five years.

But the role of the US dollar as the world’s main reserve currency denominating large chunks of that debt pile is showing up as complicating factor that’s added to risk of instability.

The first US interest rate increase in almost a decade in December – just a quarter of a percentage point – was enough to trigger a convulsion in world markets that led to the worst start to a year for global stocks since World War Two.

Underlining ’cause and effect’, the subsequent recovery only came about once the Federal Reserve hastily made clear it was pressing the pause button precisely because of seismic events in world finance.

Few doubt a growing US economy that’s near full employment can absorb some normalization of interest rates from near zero, and a higher dollar goes hand in hand with that.

But the rest of the world clearly can’t.

The Bank for International Settlements estimates that while US dollar dominance means it accounts for almost 90 percent of all foreign exchange transactions and some 60 percent of hard currency reserves. But crucially it also accounts for about 60 percent of all debts and assets outside the United States.

And if the rest of the world goes into shock because of the higher cost of servicing and paying back those dollar debts, the boomerang effect on U.S. exporters, commodity firms and the wider economy just ends up tying the Fed’s hands in ways made crystal clear this year already.

Ambivalence

No surprise, then, the US central bank has no deep love for the dollar’s prime reserve currency status – even though it’s been described by Europeans and others over the years as an “exorbitant privilege” that ensures the world lends to the US Treasury in its own currency at low interest rates regardless of dollar strength.

Speaking at an event in Zurich on Tuesday on the dollar’s global status, New York Fed chief Bill Dudley said Americans should not be perturbed if other currencies such as the euro or China’s yuan eventually eat into the dollar’s share of reserves.

“If other countries’ currencies emerge to gain stature as reserve currencies, it is not obvious to me that the United States loses,” he said, as long as it “is being driven by their progress, rather than by the US doing a poorer job.”

While that’s far from wishing away dollar hegemony, it speaks to the greater ambivalence among central bankers toward reserve status than their national treasury chiefs – given how widespread use of the currency can compromise domestic policy.

It’s that tension that risks sowing instability everywhere.

If the Fed can’t adjust monetary policy because of fears of transmitting a self-defeating shockwave around the world via the dollar, then there’s understandable concern that artificially low Fed policy just stores up even more debt and international accounting imbalances and undermines the very currency that’s supposed to play anchor.

At the same event in Zurich, Claudio Borio, head of the monetary and economic Department of the BIS, said the dollar’s role could potentially exacerbate instability by allowing the United States to run larger and more persistent fiscal and current account deficits – and to run looser monetary policy for longer.

What’s more, a resulting Fed easing bias spreads to developed and emerging economies as governments resist a weaker dollar for competitiveness or financial stability reasons, Borio added.

“Easing begets easing,” he said.

For Morgan Stanley, this is just leads to ever-higher debt, and there are no painless ways out of a problem that will start to hurt significantly over the coming years – only a series of “less painful” options including the option of consolidating debts and making them permanent or perpetual.

In the meantime, the US bank said, the dollar itself will most likely push higher again, if only because the US economy is probably the only one that can absorb a rising exchange rate in this environment.

For Borio, a more ‘pluralistic’ system with many world currencies sharing the reserve role doesn’t by itself solve any problem, either. There would then be no credible single anchor.

Hard-headed cooperation and joint decision making may be the only answer.

“This means not just putting one’s house in order, but also putting our global village in order.”

Reuters