4/25/2010

The Chinese and Aussies are doing it

The Chinese may not be seen as a smart and sophisticated people vis a vis the Westerners in many areas, and particularly in finance. Whatever the Chinese are doing, the world will look at it with a sceptical eye. And Singaporeans too would not look up to the Chinese for things to emulate. When the Chinese started to curb their property bubble, we would probably say some silly things about it or simply ignore it. They did not know what they were doing. Peasants! But the Chinese have genuine fear that the skyrocketing property prices could derail their economy and possible social unrest. And they are doing all they can to curb this euphoria where the rich would get richer and the poor poorer. Never mind the Chinese. Now the Australians are also implementing measures to prevent their own version of property bubble. My first impression is, what's the fuzz? Australia is an under populated continent and can build all the houses for its people unlike this little piece of rock. And we are telling our people not to worry, plenty of land and we could take in more foreigners to help us to occupy the limitless land that we have. We are geniuses in this field. What are the Australians saying? 'We want to make sure that Australian working families are not being priced out of their own family homes. That is why we have acted in the way in whcih we have done....We want to make sure that foreign speculators are not going to force up prices for Australians seeking to buy their own home, buy their first home and we think this is the right course of action.' Said Prime Minister Kevin Rudd. Would we listen to the Australians, after all they are the kind of people we envy and like to follow? Or are we going to say the Australians are stupid. Property speculation can being in huge profits to pay themselves crazy. It is good, clean and easy money. The money can be used for many wonderful things. The Helix is a great example of the things we could do with the money that we made. Instead of putting two pieces of planks across the river, we could choose to spend may be hundreds of millions to put up the Helix. Both serving the same function. But one is just two pieces of cheap wood and another is a big piece of art where the people go 'Wow, wow, awesome!' I think it is a case of priorities. The Chinese and Australians share a common interest, to provide affordable housing for their people and not allowing speculators to make abundant profits to buy the next ten properties and then to buy the next 100 properties to grow their wealth. And we too share this interest, to provide affordable housing to our people as well. The only difference is that we did it so well that speculation and high property prices are welcomed. And our people are happy about it. No complains and no social unrest in the making. Maybe we can lend them our super talents to teach them how to do it and make all the easy money and keeping the people happy as well.

4 comments:

Anonymous said...

Mr Chua, masybe you overlooked an area where sg has no peer. There can't be talent in oz or middle kingdom that can come close to the leaders here.

Our talents are consulted by almost all other countries, even if the other countries did not ask for any advice or suggestion. You can bet our talents will dispense wisdoms.

Anonymous said...

So, what makes a good Government?

One that knows how to balance the needs of citizens against wholesale pursuit of economic progress, or one that knows how to moderate economic progress against responsibility towards citizens?

Matilah_Singapura said...

Actually redbean, you are quite mistaken. China is LEARNING from Singapore.

Last week MAS revalued the SGD upwards which means it has reigned in the credit and money supply. China and S Korea have taken notice and will be following suit.

There is only one cause for skyrocketing real estate and/or equity prices: the creation of money and credit.

REign in the money and credit, and prices will stabilise or fall.

Chua Chin Leng aka redbean said...

They have been learning, and very selectively. They would not go to places where excesses are deemed to be good. They have surpassed us in many ways. And they are very careful without letting vanity and insanity into their system.