11/19/2010

Learn from the Americans

America is today the most productive country in the world. And they are now the richest. They can actually buy up the whole world if they wanted to. Just a few weeks back they just printed for themselves US$600b to spend. I think with that kind of money the Americans could have bought up all our properties in the market. And if they print more, they could buy up the whole island. This is the most ingenious way of making money. No need to work, no need to sweat, no need to play tricks in the stock market, no need to devise toxic bonds, no need to go to war. Countries around the world should learn from the Americans and start printing. And with the hot cash, they can go anywhere and buy up everything. Singapore is for sale, all the properties up for grabs. No problem even if we sell our 3 rm HDB flats for $1m. There will be limitless amount of money available to buy them. All Singaporeans can sell their flats and price them more than a million, 2 or 3 million should be no problem too. Just sell and exchange them for the hot and easy money. Oops, heard someone said don't sell. Why not? So much money for the grabs. Oh, just one point, one plate of chicken rice will now cost $300! And our ministers will ask to increase their salaries to $100m. How else would they be able to afford anything when prices of everything is up and up. It will be like the Japanese Occupation time. People will go marketing carrying a basket of banana currency notes. Today they may use the trolleys for the new notes. On second thought, better don't sell your property. It will become priceless at the way things are going.

5 comments:

Matilah_Singapura said...

Every country in the world prints money -- even your precious Singapore.

Two of the biggest offenders of money printing are China and India. No, I don't think they "learned" from America. Both china and India are "mopping up" their excessive money printing. How do you think China managed to have a cheap Yuan fro so long. Money printing, that's how. Why did the property market in China over-heat: Money printing plus excessive credit created at banks from excessive cheap money.

States, kings and "leaders" from antiquity resorted to currency debasement to pay for wars, initiate "social" programs etc. You indicated the Japs did it during the Syo-Nanto days.

I fail to see the reason for your alarm. If a country has a central bank, eventually they will PRINT MONEY.

Once upon a time in Old Singapore, there was no powerful central bank. currency was carefully issued by Treasury and the Singapore dollar was backed by solid assets at several times its value.

In recent time MAS has come out of the closet and declared itself "central bank" and the boss is a motherfucking cabinet minister, senior minister no less. Hmmm...could there be...a conflict of interest there?

Under Goh, MAS has butchered the Singapore dollar. During his watch there has been an unprecedented INCREASE in Singapore's money supply and inflation (i.e. average Singaporean's purchasing power decreases whilst his wages stay the same of decrease due to foreign competition).

But.. on the other hand...inflated money's (and the credit created with it) first stops are ASSET markets. Hence you tend to see a rise in real estate prices and stocks. In fact, that is exactly what's happened in Singapore.

My inflation benchmark is the kopi o price at the kopitiam.

Please tell me how much it is now -- I've been away for nearly 3 years and when I left it was $1 at Holland V.

Anonymous said...

coffee shop varies from 70c to 110c for kopi with milk.

Anonymous said...

Dont sell(your property)!
goondu! Sell one 3 rm flat can buy 3 terrace units of 2500 square ft, freehold somemore.
Better still, 20 units at Bintan/Batam.
Sell! Sell! Sell! before your money turns to bananas.
No lah, Sin is simply too attractive and too strong to go down under, not for the foreseeable future. Hold tight.

Anonymous said...

China and India can print as much as they want because their currency is not the world's reserve currency, so even if they go down to banana currency status it hurts no one else. Moreover, despite their continuous printing, the Chinese Yuan is still thought to be undervalued.

Contrast this with the US$, which is held as the reserve currency by most countries of the world and which will loose more of its value if the USA continuously print more and more to dump all over the world. If it reaches banana currency status, it will hurt everyone.

Is there really no difference?

Matilah_Singapura said...

anon 432

Yes, I agree with your theory. But have to comment on this:

> If it reaches banana currency status, it will hurt everyone. <

The USD has been a banana currency for nearly 2 decades (some say more) now. Some people indeed have been hurt, some other people have made fortunes on the Fed's money printing.

So to say that money printing of the world's reserve currency will hurt everyone isn't correct.

In the last few years, ome hedge funds, for e.g., short on USD's and long on gold have seen their fund managers rake in 100's of millions, or in a few cases, billion dollar fees for themselves.