The Pakistan Economy Watch (PEW) on Monday said the global economic system is rapidly heading towards collapse as it is robbing poor to pay the rich.
The global economic system has become very sick, and it needs immediate surgery postponing, which would be suicidal, it said
The low-interest-rate environment in almost all countries is robbing the poor to fill the coffers of the rich, which is not sustainable, said Dr. Murtaza Mughal, President PEW.
In a statement issued here, he said that incredibly low-interest rates in developed countries have become a major threat to the global economic system.
He said that the current situation could cause a serious global economic crisis never seen in the world’s history, as a lot of cheap capital was circulating in the market.
Dr. Murtaza Mughal said that the situation is benefiting the investors and harming the people as inflation is rising because of the policies of central banks and people’s money is rapidly flowing into the coffers of capitalists.
The rich are getting richer while the people are not getting anything against their savings, which is creating widespread disappointment.
He observed big companies are buying competing companies with the help of cheap capital, which has created an atmosphere of monopoly in many countries.
