12/03/2007
Myth 166
Boom or bust?
Our economy is booming and we have full employment. Everyone must be doing well, gainfully employed. It is our golden year.
Why are we rolling out more financial aids for people who need help? Why are there more people desperately needing help in a booming economy with full employment? Why isn't the wealth of the country spread to the lower income people faster?
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6 comments:
Depends on where you are. If you go to Raffles Place or Shenton Way, people you meet will tell you it is Boom time. If you go to the neighbourhood coffee shops, the Ah Peks and Ah Sohs will tell you it is bust time.
What you've described is a classic consequence of "boom" times fueled by credit money (aka fiduciary media)
MAS has reported inflation at 2%. Since they failed to correctly define what 'inflation' really is, that figure is pure political bullshit.
Last time I checked, MAS + their pakat with the banks have increased the money supply by over 20% — that was the last time I checked, the figure is probably higher now. I'm using the correct definition of inflation which I take to mean as the inflation of the money supply.
BUT.. at the end of the day The People Get The Government They Deserve. If they want a 'smoke and mirrors" boom, then their govt will deliver. Actually, there has been some economic prosperity... HOWEVER it is difficult — no matter what voodoo econometric models you use — to distinguish REAL growth and REAL earnings from the consequences of soaring asset values (stocks and real estate) caused by the inflation of the money supply.
However, one trip to the stores will tell you: the general price level has increased, and one may conclude that there is only one cause for this: the inflation of the money supply.
To all the "true believers" out there, I hope you are satisfied with the govt you've supported and continue to support.
Well done.
never mind lah. just believe that it is only 3-4% and you will feel better.
Hey redbean, I always feel good. Actually I like credit booms—if I'm not living in that cuntry. The reason is simple: I don't have to pay the rising prices, I know the markets are going to crash which means I can buy cheap.
When the market tanked in 2000, I decided to quit Oz and come to S'pore. In 2001 I bought cheap.
Hey man, if one wants to be a beach bum, one needs to find a substitute for hard work to meet one's financial needs. That's why I like capitalism: you can profit greatly from the mistakes of others. ;-)
for a versatile person like you, especially when you have a feel of the pulse of two places, you can always arbitrage or take advantage of the two systems. it requires a little effort and time.
> you can always arbitrage or take advantage of the two systems. <
Yes, I always do. :)
However... Aust and S'pore are now very similar—due to MASSIVE economic reform in Australia— unlike the vast differences of the past which provided HUGE arbitrage opportunity. For instance, I made a lot of dough in the parallel importing game (perfectly legal).
> it requires a little effort and time. <
...and financial resources, and creativity, and trustworthy associations.
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