The best thing coming out from the SGX/ASX saga

In Singapore, whatever argument that the govt used must be right. The critics may disagree, but so what? If the govt says that it has nothing to do with Temasek or GIC, that becomes the gospel truth. If the govt says that there is no conflict of interest, there is no conflict of interest. If the govt says Temasek and GIC are independent commercial entities, they must be. Questioning the logic is like questioning the integrity of the govt. When Singapore bought into Thailand’s telecom company, the Thais opposed the deal, citing Singapore’s govt involvement. Of course the Singapore govt’s argument was that it was strictly a business deal and had nothing to do with it. The Thais didn’t buy it. Now come the SGX/ASX deal and the same criticism from the foreigners, and the same defense from the Singapore argument. The foreigners are not going to buy our logic or be easily convinced. They are going to tear everything apart and put them under scrutiny. Arguments that are seemingly sound and right to Singaporeans are not going to be so in the eyes of a different foreign party. How so, aren’t the arguments factual and correct? We may have the MM and PM as Chairman and Deputy Chairman of GIC or other senior govt ministers or officials in Temasek or SGX, but these organisations are run independently of the govt. Can’t the foreigners see this and accept this simple truth? The point is that the foreigners are not going to accept this simple logic just because our govt says so. They are not Singaporeans.

40 gangsters arrested in new swoop

The men in blue has swung into action and netted another 40 gangsters following the public outcry for action. Given the right order, they can really do a good job. But 40 is too small a number to cheer about. There could be another 400 or 4000 on the loose. What else can the men in blue do to make sure that their message gets through and those still out of the net know that it is time to behave and not to create more trouble for good? I think the best thing to do is to pull in another few hundred and throw them into an uninhabited island to fend for themselves. And everyday just provide enough food for half of them. After 3 months the survival, if there is any, can then be received for an indefinite stay in the freehold bungalow estate in Changi. The thing is that while the men in blue are working overtime to bring in more of the gangsters, the latter may be planning more strikes to prove that they are indefeatable. We will have to wait and see. If the story of the loan sharks is anything to go by, you can bet that the next series of attacks could be worse.

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.