American trade deficit game is simply brilliant

The American trade deficit with China not only works to its benefit, but is also intentional and planned. An illustration of how this works by using the latest issue of US$600b may help to make the game plan clearer. US$600b can buy a lot of stuff especially from China where the cost of goods is very cheap. Think of what the Americans could buy with that kind of money. All the goods made in China ended in America to be enjoyed by the Americans. The Chinese ended with US$600b of paper notes in exchange. The Chinese could go to America with the same money to buy American products. The American will sell some to them, say US$100b. So China ended up a trade surplus of US$500b. Looks pretty good. But what can China do with this money if it can’t buy things from the Americans? The US$500b becomes money on paper but worthless in real terms. To continue to deceive the Chinese, the Americans told the Chinese that they could buy American Treasury Notes or IOUs which pays a good interest rate. The US$500b will then be returned to the Americans in exchange for another form of worthless notes. The Americans do not mind paying whatever interest as it will be a small fraction of the US$500b. When the Treasury Notes or IOUs are due, the Americans will sell the Chinese more notes or IOUs a second time and on and on. In effective or real terms, the Americans are printing money to buy real goods from the Chinese, and the more the better, and all they have to pay are worthless notes worth the weight of the piece of paper it printed on. And the Chinese can only look at their monthly statements showing how much the Americans owed them, and they can smile and smile and smile. That is about all they benefit from the exchange. Now comes the best part. The Americans can then accuse the Chinese for chalking huge surpluses or imbalance of trade. And the fault is with the Chinese. The Chinese is causing the problem, selling more and buying less. In the meantime the Americans got to enjoy all the goodies the Chinese produced while the Chinese got useless paper notes in the bank accounts, and cannot translate them into real stuff.

How much do we care for this country?

When Lim Zi Rui questioned the meaning of defending this country, it startled Chok Tong. But that was about as far as it went. After that things get back to normal. Who really cares about what they are defending or what this country is all about? Then we have the spate of gangland attacks in the heartland with one young man died and several got slashed. There were some murmurs in the internet but not enough. Even in my blog there were less than 50 comments on this issue. What does it mean to this nation? At the govt level, the only one that showed some anger to the break down of law and order, to some it is not really anything serious, is Alvin Yeo. Hardly anyone else talks about it. Some were heard saying, no leh, such things never happen leh. The denial is clear, but not important. Why is there so much apathy when mobs ran riot with weapons to attack the young in the heartland? Is it that everyone is so complacent, or so busy making money, not my business, or is it that nobody cares? There seems to be a lack of ownership, that this is home, our country. Now it is perhaps just another place. At least 50% of the residents will think this way as they are foreigners with no stakes here. They will pack up and leave sooner or later. But the people, the citizens, who are long term residents here must be provoked to say something or do something if they regard this place as home. 45 years of nation building has resulted in such apathy and with the young soul searching on why they need to defend this place is worrisome. We don't need one person to jump up from his grave when things are wrong in the country. We need all the citizens to jump up from their graves when things are getting wrong. Perhaps that is expecting too much. One man doing that is good enough.

The attack on the World's financial system has begun

The Americans have launched the biggest and most vicious attack to the world's financial system with special focus on Asian countries. An endless flow of funds are pumped into Asia, superficially as investment, but with the potential of destroying all the Asian economies if they are not careful. Cheap hot money in abundance does not come in with no strings attached. The worst part is that they are managed by funds that can bring down the financial system of any country. It is no simple innocent investment. It is a concerted assault on the Asian economy and financial system. Asian countries must take immediate actions to curb and restrict how these funds are to be used or invested. The stock market, currency market and housing market are the most vulnerable as they are liquid and allow the funds to come in and out quickly, leaving behind destructions and death. Asia beware! If they are stupid they will be ruined. No bullets need to be fired but the damage could be worst than military warfare.

25 arrested by Police

Police took tough actions to tackle the spate of gangland violence with 25 men arrested yesterday. 6 were in connection with the Bukit Panjang attacks and 19 were supporters of another suspect facing charges for the killing of Darren Ng in Downtown East. How many more need to be put behind bars before some sanity can return to the ground? At the moment youth counsellors are suggesting that children play in safer areas like youth centres instead of basket courts in HDB estate. Now, isn't this alarming, when HDB parks and recreation areas are now considered not too safe? And the charges in court also revealed that these mobsters are part of the loan shark army and have been harrassing the debtors with paints probably burning of cars too. Putting one and one together, the problem is much bigger and more serious than we think. Loan sharks and gangsters are now a team. So what? The days are getting darker again if darkness is not removed and allowed to proliferate. Be nicer to loan sharks and mobsters?

Police brutality

Subject: Brutal Assault... After An Accident and our police...see for yourself Click on Youtube link and see your beloved 1Malaysia and Malaysia Boleh what it has turned in to. This is what I call a "civil" society turning in to a jungle for animals. Judge for yourself what was the Police trying to do or rather did they tried to do anything to stop the assault going on!!!!!! This is just an accident and it has turned in to something totally uncalled for. Motives of the polis assault? Hit & Run Driver got caught or got simply kena hantam just like that. U judge yourself. What type of Police we have? Letting the public do as they like just because he is a chinese. So be careful if you ever involve any accident with a Malay. Drive to the Police station and make report of the incident. Don't try and settle there. You would be bash before reasoning. Can we feel safe on the road? Seeing is believing. http://www.youtube.com/watch?v=7IkdRdoPSgQ&feature=related