The unsustainable high inflation road

High property prices are good. High salaries are good. So we continue to raise the cost of properties, rentals and of course salaries, and also the cost of everything. The cycle is unsustainable as the payers cannot afford to keep paying. The salary portion of the equation cannot keep going up. Now that salary is coming down, would high prices come down? Would the cost of living come down, prices of property and rentals, will they come down? Or shall they be propped up to give the impression of wealth? The artificially high prices of properties, by fidgeting with the supply of land cannot be sustained for long. The truth will break it apart. The American model of printing money and living on borrowed money is breaking down. Living from future income is only passing the buck. But the music will stop some time in the future. The music has stopped and the high cost model, when high cost is deemed as high quality, and good, is going to crumble. Are we still living in the beliefs that salaries can go up and up, and prices can go up and up? The higher the better?

Myth 195 - The American Myth

Singapore is, and still is, the ideal convert of the Great American Dream. Everything American is good, except the bi party system. We adore all the big names, the great talents and the American melting pot. We plugged into America more than just to the world. We aped almost in entirety, the American financial system and their greed. And we are the first to pay the price of our childish phase of growing up. Big names, tested names and great talents cannot be wrong. Just pay them as much as they asked for, for they are worth every cent of it. We have seen many American myths in the past that went up in smokes. But those were totally ignored. Now this final disclosure of the colossal mismanagement and cheating by the financial whiz kids and their dirty dealings that cheated a whole nation and the world being opened up for all to see. Real talents would not have dug a hole that is so big to bury America and the world. Million dollar and billion dollar talents are everywhere on the streets of New York. Are we eagerly waiting to grab them to create our own myth? We have been conned by the juicy big apples of big names like Merrill Lynch, Citibank, Goldman Sach, Morgan Stanley etc etc. I too thought it was a great idea to put a stake in these great banks. I too was conned by this American Myth. Shall we continue to go along as a bright eye kid and saying yes to anything America? Pay big money for big talents, buy up big American banks and duplicate American financial systems and practices without a second thought to their relevance and extravagance?

A trial balloon or a genuine intent

This talk of a single party political system, is it real or just a trial balloon? If it is real, if the ruling party thinks that this is the way to go, I think we really need a referendum on this. The political system of the country must be decided by the people, not by a small group of wise men who thought they are wise enough to decide the future of the country and the lives of the people. From the way TOM is generating more news that favours such a system, it gives the impression that there are people who seriously believe in it and wanted to change it. And the sleeping opposition parties and all the learned men in our midst are also sleeping. Would there be any learned man of some stature who dares to speak out on this foolish idea?

A home song - 6

Eternal Child For 2000 years I have no intent of returning The ethereal world was all peace and harmony All sound and light and no fury Nothing to stress out, nothing to fear Now I am told and on my way To the earthly place I bear no memory I descend through the layers of time and space The scents of matter bring me to my sense Oh mother earth, here I come Your eternal child of another time Bless me with all your loving kindness For a life within your arms I’m now hovering on the ceiling Staring at the lights I’ve long not seen Bright lights that blind, brightness of a different kind The woman lying there, shall bear me a new beginning Why shall there be so much agony, and pain Even before I set foot on earth again I hear her cry, my spirit shivers and wants to die This is not the place for me to start again Oh mother earth, don’t wait for me Your eternal child of another time I can’t bear to know what lies ahead for me I shall miss this reunion and return to where I rather be The above is copyrighted by redbean

Tan Kin Lian offers a great opportunity

The declared intent of Tan Kin Lian to enter the political arena offers a great opportunity for our political system to progress to the next level of maturity, a multiparty system with equally good men and women from both sides. If another 20 people of Tan Kin Lian's calibre will to step forward, then we will see more genuine representation of the people's interest at the national level. Politics will could or should become less abrasive but more sophisticated, a big departure from the gutter politics that we see today. The future of Singapore lies in its ability to evolve and adapt from the best political systems that are available. Under the present mindset of I am the only solution, the thinking is so skewed to the extent that people could not see any further than two fingers ahead of them. We are hearing views that either we have a one party or multi party and nothing else. We are what we are today because of our adaptation to what is available. We should seek to embrace the best of different systems as all have their dangers and flaws. A one party system is as treacherous as a multi party system. Flirting with the thought of a one party system at this point of our political development can only come from a inflexible mind. We are a multi party system but with a strong leadership to see things through, without going too far like an authoritarian state. If we become a one party state, things may not be what it is like today. It is scary that people are denouncing the merits of a multi party system wholesale and the choice is either or. Quite an extremist and naive approach in my view.

$42b in reserves

When I read this in the old media, I was thinking that this must be gov'ts money. Actually it is not. It is the people's money in the Medisave. Singaporeans have $40b in their savings parked in the Medisave. Now why is this called 'reserves?' Your money, my money, my money your money? Is it not wrong for people to understand that when we use the word 'reserves' we are referring to the general public or govt's money in the national reserves. Why are the people's money in the CPF or Medisave referred to as 'reserves' and not the people's savings? Ok, it did mentioned that it was both. Here is a clip of the press statement. SINGAPORE: Health Minister Khaw Boon Wan said healthcare costs will not be a problem during this recession. Speaking at the NHC Time Capsule event on Saturday, he said most Singaporeans have sufficient savings in their Medisave accounts, and hospitals will be more generous with Medifund applications during these hard times. The total reserves for healthcare stands at S$42 billion, 14 times the annual health expenditure. S$40 billion is parked in citizens' Medisave and it is growing at S$2 billion a year with contributions from workers.... Copied from CNA.

Can you believe it?

Just a few months, and all the iconic institutions of the USA are bankrupt? From investment banks, financial institutions, airlines and the three auto giants, are collapsing? What else is going down? All the hype about AAA ratings of American institutions seemed so real and now a fairy tale. Institutions that are sound, and of that size, cannot be wiped out overnight. The rot must have started long ago. The only problem is that the rot was hidden, concealed, and outside parties are not allowed to know. In fact all the thieves were paying themselves ridiculous salaries and perks and churning out glorious figures of growth and profits. Where is the transparency, accountability and responsibility? Big names never fail, very reliable, proven with good track records. And managed by the best talents money can find.

It’s my money - 5

Got my pay check finally Only the numbers look funny Cause they keep something for me It’s for your own good, be happy The day came to get my money back Rules change, it will be ten years late Or when I’m lying in a hospital bed It’s good for you, be happy Then when I am 85, and I’m still alive My body’s weak, I can do no vice Then a mail came, my savings fine They think I can live till a hundred and five Chorus Oh hear my cry It’s my money It’s my money It’s my money But they don’t reply The above is copyrighted by redbean

HDB lost $500m

I remember a parliamentary session when it was told that HDB lost $500m in one year or something like that, and the reason was the sale of flats below cost. Someone please correct me if the number of $500m was wrong. What is puzzling to me is that if you are running a business, with the best talents, and you decide on the cost of land, the price you are paying the contractors, and you also decide the price you are selling to the customers, and you lose money, $500m! What shall I say? Must be a lot of subsidies at cost. And who decides what is the cost?

The power of sales pitch

We have seen how powerful the sales people were in the current financial crisis. They have made thousands of people part with their money to buy toxic financial products. Isn't it frightening, and a case of irresponsibility? For a product to be labelled and widely acknowledged as being 'toxic' and that respectable people still thinking that there is nothing wrong with them, and to think of peddling more to the people in the future, my god, we need to change the meaning of the word toxic. For all I know, toxic is even more dangerous than drugs, and drugs are banned. The power of persuasion and convincing the masses to do things against their interests is phenomenal and deadly. Imagine telling the people that it is good to hang a noose around their neck? Or imagine selling them a new bogus religion? Reading the media, I am fully convinced that Singaporeans are easily duded to believe in anything, even if you take their money away and give them a fictitious reason, they will go along. Now you can tell them that building an abattoir for their eventual slaughter, as long as you tell them that it is good for them, they will just go along. Can they really think?

God has the final say

We need a good political system to ensure our viability. Many gods have spoken on what is the best system for us to go forward. Demigods also have spoken of their ideal systems. All the systems on the table look quite similar, all very godly. Do the people have any say as to which system is good for them? Who shall decide what is good and bad for the people? Or put it in another way, shall we let the gods and demigods decide on a system which is good for the gods and demigods, and maybe good for the people also? Or shall the people say, look, look, we are also owners of this place and we want to decide for ourselves what is good for us. We don’t need to buy your godly ideas. Ultimately who shall have the final say for their own well beings and the future of this country? The gods, demigods or the beans?

A home song - 4

Mas, Mas Selamat A warm tropical night, along the western shore A flickering light, and the sound of oar The boat hit sand, and they waded ashore Three shadows wavering on glistening water, nothing more For three years, they kept him, behind closed doors No one sees him, only his plans, To blow up planes landing in Changi Our gateway to the world, were known to all Food were plenty, they feasted him But wines and songs, were not for him They adore him, what a fellow When he’s confined, living in his own shadow The guards came down, out of the window He hit, toilet rolls on the ground Over the fences he flew, stealthily like a cuckoo His freedom run was more a walk, just for fun Chorus: Where are you Mas, Mas Selamat Tell us please We need a little peace Spare us your plans and let us live in one piece. The above is copyrighted by redbean

Tan Kin Lian for President

The Sunday Times published an interview with Tan Kin Lian and his aspiration to run for the elected President or a MP. The startling point is that he is going to run as an opposition candidate, giving reasons that he did not agree with the ruling party which he was once a member. Tan Kin Lian has all the prerequisites of a professional, and he fits the mold of what the people have come to expect of a MP. Though his wife expressed fear of a political backlash, Tan Kin Lian is still keen to push on if the people give him some endorsement of support. We will need more able people like Tan Kin Lian to step forward, maybe form a new party of like minded people and stand in the next GE. A party with creditable professionals will stand a very good chance of taking on the ruling party. There are many able people out there who are as good if not better and it is about time that they do something for the people and country. The country needs them, the country needs new blood and new direction, new philosophy and policies, and a new set of moral principles that are people oriented, for the well being of the people. The seed of a new political era has been planted and a new leader is emerging. The good men and women should rally behind him to provide a decent and respectable alternative to the people. There must be many talents out there who are ready to serve for the interest of the people.

Minibonds and High Notes in simplified terms

ST correspondent Lorna Tan did a simplified version of a summary note that is easy to understand to the investors. She used a copy of the DBS High Notes 5 prospectus and gave her own inputs which I find very comprehensive, at least to a layperson like me. The key features of her take are: 1. It explains that the investor's money will be used to buy a basket of securities. This is then used as a collateral for a bet. 2. The bet is on 7 selected financial institution and one country, that should any one of them got into financial trouble and becomes 'bankrupt', the investor will lose all his investment. 3. The 7 entities have nothing to do with the money invested. 4. The product is thus not suitable for people who cannot afford to lose their principal sum and who need the money over the next 5 1/2 years. I would like to make a few amendments to her take. 1. Change the title of the Notes to Toto High Notes 7 2. Allow the bettor to choose 7 entities from a list provided 3. Allow the bettor to pick 1 country from a list of countries 4. The product should be sold at Toto booths 5. Financial institutions should not be allowed to indulge in such gaming products. From the nature of the products it looks to me more like betting than a financial product. And it is much easier to run such a betting scheme than the S League. So much cheaper.

My hat's off to the party

If anyone or any party can convince well educated, highly educated people to believe in what they said, it must be a very capable party, or least in its ability to win converts to its cause. The idea of a one party ruling system, akin to a benevolent dictatorship, is like convincing the livestock to walk into an abattoir. A walk to no return. I still cannot believe that this is possible, but to hear them sing praises of a one party system, they appear real, fully bought the idea, hook, line and sinker. I must say, great job, well done. The other way to look at it is that livestock are meant for the slaughter house. They can't differentiate between that and a home. They are bred just for that, unthinking or thinking, that that is the only way to go. You see how happy the sheep in the field and the herd of cattle grazing, or how the chicken enjoy themselves when the farmer appears with their feast. They won't trade that kind of life for anything else. It is very comfortable and assuring.

A home song - 3

45 years and more The crowd came, hungry and lost Pleading that I be their boss I led, they follow, no question ask, not a single doubt For they trust, I the boss For the hungry, they I fed For the jobless, work I gave The uneducated, schools I built, an education they got Most of it all, it's dignity they had My hair grows white, my hearing fails My eyes weaken, so my sight No longer do I think, nor see the things I see Never will I need to hide Where are they who came to fight Where are they who crumbled, left in flight They made me mighty as they humbled themselves And trembled at my sight Chorus For 45 years, I'll said it all Things need done, I'll done it all Take me on, I'll beaten them all 45 years on, I am waiting for more The above is copyrighted by redbean

Tripartism taken a body blow

Tripartism is the cornerstone of our labour management relation. Its existence and being part of the institution of Singapore Inc have been going on for too long and maybe forgotten. Union was claiming that they got only 3 days notice of a big retrenchment. And I wonder how many days did the MOM got. MOM had to rush out a new set of guidelines on what a corporation should do before drawing out the butcher knife. And the Union is crying foul. The rhetoric is getting stronger by the day. Last night we heard Swee Say talking about cooperation to confrontation if management took the Union for granted. How could our labour management relation suddenly took a plunge? Someone sleeping or someone thought that they are also the govt or the Union was not consequential? Maybe it is forgiveable if decisions were made by FTs who are new to our unique brand of tripartism. Incidently, were locals let go at the expense of retaining FTs? There was this motherhood statement that the foreigners will be the first to go and the jobs of the locals will be protected. How many were locals and how many were foreigners that were retrenched?

Is it complacency or stupidity, or simply too clever?

The last few days more views were out in the old media about the merits of a one party political system. Two writers, Dr Tan Wu Meng, the Organising Secretary of Young PAP and Tim Mou Hui put their views on the merits of a one party system in the ST today and pointed out the shortfalls of a two party system as mentioned in Gilbert Goh's letter. Against all conventional wisdom, or it is their new wisdom, that a one party system is the way to go. They have thrown away all caution of how treacherous is this path if we are not careful. It is a path of no return. Singaporeans have already flirted with the danger of a one party rule with more than 2/3 majority in Parliament all these years. This is no small matter as it means that the majority party can do whatever they like. They are given a blank cheque to even change the constitution to their likings. In a worst case scenario, a rogue govt can simply amend the constitution and change a democracy into a dictatorship. Singapore is lucky that we have a kind of benevolent dictatorship as coined by Chua Mui Hoong, and survives, prospers and progresses over the last 45 years. In different hands, we will be in dip shit. Definitely this is no justification that things will be the same going forward. Should Singapore really go all out to embrace a single party system or even a dictatorship? I try to appreciate the reasoning of this new wisdom. But my instinct and old wisdom say this is highly dangerous. It is thoughtless and senseless. And to think that thinking people even clamour for such an eventuality is really frightening.

It could be worst

The ungrateful Singaporeans are complaining again. This time for the loss of a miniscule $18m from Town Council fund, which is so small compares to the $2 billion it has hoarded. And if the $2b is not enough, they could easily raise the conservancy charges and build the reserve to last 20 years for a rainy day. Singaporeans did not realise that this is the best team handling their money. It could be worst, and all the money could have been gone if a lesser team was in charge. Please count your blessings and be grateful, and thankful. Your money is in good hands.

A home song

I was in a karaoke room with some friends and I could hear the songs that they belted out with gustos after a few drinks. Hotel California, Bridge Over Trouble Water, My Way, Heartbreak Hotel, Leaving on a Jet Plane, I don't want to talk about it, etc etc. All the all time favourites were foreign and bears no relation to what we are or to home. Instantly many song titles flashed through my mind which will make great home songs for Singaporeans. Songs that we can sign and share with emotions. Let me share some of them here. Money in My Mind More Good Years Let's Move On 45 years and more I punch an MP No charity at home Say Yes to more leeways It's only peanuts Help is on the way Highway to Paradise Twilight in golden years There were many more which I were unable to recall at the moment. I shall try to put some lyrics to these songs if I can find the inspirations some day.