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2/07/2011

Singapore one step ahead of inflation

The reckless hike in food and commodity prices is threatening to wreck the countries around the world and bring down govts. And the western analysts point their fingers at Asian countries, particularly India and China, for importing them to feed their people and industries. No one is saying a word about the financial speculators, the big western funds that are driving up prices to the sky. The hike in prices of everything, high inflation, is sending worrying signals to govts around the world. The uprising in Egypt, and possibly more to come, could be the early signs that it could be spreading. Then again, the Asian economies need not fear as they are managed differently and effectively, and will avoid such crisis. In fact the govts of the world should take a lesson from the Asian economies, starting with Singapore. Singapore is one step ahead in this inflation game and is doing exceptionally well. No signs of trouble, and with a rich populace that can afford everything at any price. What is significant about the developments in Singapore is that while the world is just experiencing high inflation, Singapore has already inflated the prices of everything long before the word inflation raises its ugly head. Our property prices have rocketed sky high and pronounced as a good thing. This is a true sign of the people getting richer. There is also the medical cost which is now more expensive than the West if $150k bill for a C Ward is the thing to come. OK, this is just an exaggeration. It is rare. Maybe less than 5% of all bills are so big. And Singaporeans feel so comfortable paying $60k or more to buy a piece of paper that entitles them to buy a car that is priced 3 or 4 times more than in other countries. This is the magic of Singapore, inflating prices in everything and the people still can afford them. Everything is simply affordable. The govts of the world better send their civil servants to study how Singapore did it, beating the inflation game, by inflation. Inflation is welcomed as a good thing, especially when the people are mostly millionaires.

8 comments:

Matilah_Singapura said...

The 2 main drivers of this are:

1. Helicopter Ben and competitive debasement of currencies all over the world -- i.e. lower purchasing power causes nominal rises in price

2. El Nina weather patterns: lots of dumping of precipitation all over the world -- storms, flooding, plus extreme winters, very hot summers and drought in some areas i.e. really screwy wacky weather no good for agriculture.

...then you add all the other causes -- hoarding by govts using cheap currencies to buy commodities, civil unrest causing more uncertainty thereby causing higher prices...

Yes, it is going to be a fun ride. Wait for the fun when your rice costs $4-5 per kilo, and gasoline at the pump $3-4 per liter -- which might happen this year.

I support more civil unrest: the people get the government they deserve, and the government gets the people they deserve.

Priceless.

Matilah_Singapura said...

P.S. The old canard of blaming "speculators" is getting a bit old, don't you think? (yawn, fucking yawn)

There is only one agency which has the power and influence and laws to fuck everything and everyone up: The State.

Speculators, by the way, make the market more efficient.

Chua Chin Leng aka redbean said...

Not entirely true as far as speculators are concerned. Today's speculators are armed with a huge war chest that can make or break a market or govt. It is not simply making the market efficient.

Weak market will be ruined. Strong market can also be ruined.

That is the power of huge funds, working alone or in cahoot as a big gang or robbers.

Anonymous said...

Hey! This ignoramus is also a millionaire but still very poor.
That's because me am a multi millionaire only when me converts my Sin Dollars to Rupiah.

Anyway, let pay up whatever amount the businesses, stat board and 'privatized' entities charge for their services and goods. Let us help to make as much WORLD RECORDS and or HISTORICAL RECORDS as possible. Amongst the targets, we could have the most expensive property, most expensive car, oh maybe most expensive everything in the World. Then, we are likely to have the most highly paid parliamentarians which could lead to a few richest men in the World.

There is always the possibility that we may clinch the Worlds' most compliant citizenry too.

Let make our leaders proud and we can share their prides and glories. By the way, Sin is definitely the undisputed state that has a population almost entirely made up of immigrants. Old and new inhabitants are all from foreign lands. Most netizens said so too. All of us can make Sin the Worlds' NUMBER ONE in many things.

Are You not happy?

patriot

Anonymous said...

There is one thing cheap though. An open heart surgery in world class hospital for 8 bucks man!!!!!!

Matilah_Singapura said...

redbean: re speculators:

There is nothing wrong with breaking a market, or a government.

In fact, in many cases these are desirable outcomes.

Speculators -- especially big hedge funds which short -- in the long run benefit mankind by weeding out the "shit".

Anonymous said...

If the MSM and the Government never talks much about inflation, and the people take inflation as a matter of course from the frequent brainwashing that everything is affordable, inflation is becoming a non-issue in Singapore.

Just like the floods, it is also a non issue now.

They just have to tell you not to expect no floods and presto floods become a non-issue.

Matilah_Singapura said...

Politically it may be a non-issue. But in financial circles, inflation is welcome because stock and property markets look good as do corporate balance sheets.

So the govt and the cronie capitalists do very well, but the average worker pay packet lags the price increases by several years and percentage points. i.e. your EARNED dollar buys you LESS.

The MSM is no barometer for news -- it is the balls and ass licker of The State.

The wonderful thing about inflation is that it takes several years to come to a head and have that "spectacular effect".

Suffice it to say, IMO, S'pore has a few years to go before the real fun begins. I have my own heuristic indicators:

1. Kopitiam kopi $1.50 - $2

2. Petrol $3 per litre

3. Orchard Rd price $4k per sq ft
(sustained)

5. "Black & White" colonial bungalow rental > $60k Tanglin/ Bukit Timah/ Adam Rd (these are my favourite accomodation in The Hotel)

4. ...and of course the regular figures from Sing Stat...my regular information portal to keep an eye on how My Hotel is doing