Could the island survive a major economic crisis?

Would PAP be remembered as the rogue Govt in the future for bringing about the collapse of the country through its high property price, high cost of living and high dependency on immigrants? The formula for a crash in the economy and property price need no guess work. The writing is on the wall that the international finance and the monetary systems are waiting to hit ground zero. There are so many frauds and corruption in the world’s financial institutions and systems that it is now being sustained by the continuing printing of paper money by most of the developed countries. And Singapore is in the thick of this hazy and corrupt financial system that when it collapses, there is no where to hide and no where to run. Every Singaporean is part of this money matrix, tied up in huge loans through housing and a disappearing CPF that is good only on paper.

When the world’s financial system stops functioning, it is as good as dysfunctional now at the rate it is going, cheating all the investors of their hard earned money to benefit a few crooks, it is simply unsustainable. When it goes down, the economies of most countries will go as well. Our Raffles Place and Shenton Way and the new financial centre in Marina Bay will become ghost towns. All the high salaried finance FTs will have to pack their bags and return home. With half a million to a million foreigners that are here because of jobs, and will flee when the jobs are gone, the population will shrink overnight. Instantly the whole property market will be like a house of cards. No tenants, owners unable to service the loans, everyone scrambling to get out by selling whatever they have, bank foreclosures…. The more properties one owns, the more heavily one is mortgaged and in debt.

This spiral will hit every sector of the economy and everyone, including HDB owners. FTs and FWs will be evacuating like locusts migrating to greener pastures after a feast and leaving waste behind. Construction companies and developers will all go bust. The whole economy will be in ruins and so will be the lives of a people depending solely on unproductive pursuits of churning properties and stocks and derivatives. Everything will burn like all papers will burn.

The highest risk and heavily leveraged industry today is the finance industry. And we are deeply in it. And the people are all highly geared in properties, private or HDB, all in big debt and needing more money to service the debt. When jobs are gone, when easy money from high finance is not there, where will it lead to? Our economy is too highly reliant on the finance industry and properties, and on more foreigners being here. They are intertwined like triplets, when one goes, the others go as well. With 40% or 2m transient workers here, their departure can be traumatising and financially crippling.

When that day comes, don’t worry, economic systems are designed for boom and doom, like the great depression, it is a matter of when. And the good thing, it seems so near. The Govt will have no more tricks to pull out from the bag. In fact it is living on one last trick, growing population to boost up property prices and the economy. How long can this trick last?

I know, this is a very pessimistic doomsday forecast. Pray it doesn’t happen.