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1/02/2011

QE for Singapore

Ben Bernanke has had his first Quantitative Easing by printing US$600b for the Americans. And in his plan there are six more QEs to come. Go figure how many more billions or trillions would be printed by the time he got to his 7th. If America can keep on printing banana currency to spend, my new year wish is for our Govt to do something similar at least for once. Why trade our currency and assets for banana currency? Why not join the fun? It may be opportune for the Govt to just do it and make everyone rich for once. Just create $300k for every CPF account holders so that everyone can feel rich for once, to buy a property or for retirement. With 2m Singapore citizen CPF accounts, this will come to a mere $600b as a one time pay out. There is no point in being thrifty in a world when everyone is printing money. We will end up the losers, holding American banana notes and losing our savings and our pants. It is pointless, meaningless, and worthless to give each citizen a couple of thousands which can’t really do anything for them. It will not change their lives or improve their lives well beyond one week. Do something meaningful and real. A couple of thousand is like a cheap morphine shot and the craving will be back in no time for more. The erosion of the people’s savings by inflation is serious and something more than a few thousand dollars is very necessary to combat this disease. Since our people have caught the disease of inflation, it would not make things worst by spreading the disease around in a heavier dosage. Some conditions must be attached to the QE. It should not be a stupid and mindless giveaways to all citizens regardless of new or old. Citizens with at least 20 years of residency shall get the full amount. New citizens will get a pro rated sum based on this 20 year formula. The payout shall go to the retirement accounts but can be used for home buying and hospitalisation. Going into the retirement accounts will ensure that citizens have a nest egg to live through their twilight years in some comfort. And it will not cost the Govt a huge sum immediately but delayed over a long stretch of time, depending on the age of the recipients. No more need for questionable schemes like CPF Life or other compulsory schemes. Citizens may then not feel so threatened and stressed when admitted to hospitals when there is this money to fall back on. The hospitals will be equally happy to know that the people can afford the high medical fees. The sum will also come in handy for young and potential home owners to buy their first home and solving the problems of high property prices for first time buyers. It will surely defuse the anger and anti govt sentiments and comes the next general election you can be sure of a clean sweep for the ruling party. Printing money can be very helpful to all parties, good for the people and good for the govt. Perhaps a bit of wishful thinking: )

3 comments:

Anonymous said...

QE for Singapore? Better not get any ideas.

If they give each of us $300K into CPF account, surely cannot touch one lah! Only to give you the feeling of being rich like the oil sheiks, when you look at your CPF statement each year.

Then hor, the most fearsome part is that when they can give $300K to each Singaporean, the money must be banana notes already lah!

When that happens, how much do you think they will be paying themselves. Incomprehensible. I guess it will be an astronomical sum.

Nightmare! Real nightmare!

Anonymous said...

hahahaha....

Anonymous said...

Great suggestion redbean. We have been copying everything the Americans have been doing. This is something that we can imitate. The Americans have done it and sure we can do better. can't be wrong.