1/01/2011

My new year wish

Nothing is worst than high inflation. It means that the money you have is getting smaller and smaller, but you think you are rich because you have plenty of them, your bank account looks big, your CPF statements make you think that you are rich. All that is illusion. Simply a deception. Everytime there is a big hike in inflation it means one gets poorer without knowing. A young couple could have save $100k to buy a flat. But if the price goes up by $100k, it is as good as they being robbed of the $100k. Yes daylight robbery and no one is stealing or being blamed. CEO price up by $50k. It means the poor motorist wanting to buy that car will have to work one whole year for nothing. This applies to all goods and services. The inflated HDB prices mean nothing to many as they cannot sell and translate them into wealth unless they want to pitch a tent in the park, and risk being arrested and make made homeless. This inflation animal is no joke. It makes many people poorer without knowing about it. And a big chunk of one's money just disappear daily. All the savings just go to waste. The more serious consequence of inflation is that it will destroy the competitiveness of our labour. America is feeling the heat now and is in deep shit. Some economists have asked why should American labour be paid so much when others can do the same job for a penny? It will come to us and our workers will be jobless too. It is happening, when the foreign workers are willing to do more for less. Our workers could not as the cost of living is eating up every cent they have. They need to be paid more for a decent living. Ah, some jokers will say if the foreign workers can, so can the Singaporeans. Yes, agree, live like a foreign worker. Apologies for the grumbling on the first day of a new year: )

12/31/2010

Asian countries up in arms against foreign attacks

The world of high finance is characterized by huge funds, mammoth funds, steam rolling into small financial markets around the world. These big funds take full advantage of their size and will flatten anything in its path leaving behind ruins and destructions. The currency markets, stock markets and commodity markets are helpless victims in the face of these financial gangsters and pirates of modern times. The central banks of Taiwan, China, Korea, Indonesia, Thailand, Malaysia etc etc are all stepping up efforts to reduce volatility of their currencies caused by these funds and the banana currencies they are bringing in in exchange for the higher yielding Asian currencies. The attacks by these huge funds are only the beginning and the damages inflicted are only the tip of the iceberg. More serious consequences would come along if the big funds are left unregulated and free to do as they want. For the moment they are the only worthwhile export that is generating real income to their home countries. The Asian capital markets are for the time being addicted to the liquidity these funds are bringing in and looking at them as gods. Many have let their defensive instinct down and welcome the funds with open arms to rape and loot their investors of their hard earned money. These funds are merciless and must be kept in a tight rein. They have to be cut down in size and cannot be permitted to thump down everyone with the weight of their banana notes. Ignoring the dangers posed by these funds is simply irresponsibility at its height.

The last Christmas present for the year

HDB households will get up to $190 in utility rebates starting in January 2011. A second tranche will be paid in July to offset the hike in electricity tariffs. 1 roomers could get as high as $190 while those in Executive flats will get $45. Interviews conducted show that HDB dwellers are very thankful for this money falling down from the sky. Not many countries in the world will have govts giving money to their people to offset hikes in prices of goods or services. I believe this will go down well with the people and will be a good point to raise in the next general election.

12/30/2010

Electricitiy tariffs hike

Electricity tariffs will go up by 3.3% for Jan to Mar 2011. Data reported in the Today paper shows that there was a 5.4% hike for Jan to Mar 2010, 3% for Apr to Jun, 2.42% for Jul to Sep, a fall of 3.3% for Oct to Dec resulting in a total hike of 7.5% for year 2010. It was also reported that the decrease of 3.3% was due to oil price falling from $102.35 to $95.41 in the third quarter. Since then oil prices have been hovering around $90 or below. Oil price for the last few days maintained at $90 but not exceeding $92. This is still below the $95.41 high in the third quarter. If oil price is holding below the $95.41 mark, why is there a need to raise it by 3.3%? Funny right? I am a little confused.

The paradox of political change

Jeffrey D Sachs, Professor of Economics and Director of the Earth Institute at Columbia University has an interesting article in the Today paper titled, America’s political class struggle comes to a head. The key points he raised in the articles were about how deep America has dug itself into the abyss of self destruction. Yes, America did it all by itself. It all boils down to ‘America’s corrupted politics and loss of civic morality.’ Nothing new and very familiar. For once, an American professor is talking about corruption in America and in high places. Thought corruption is only a hallmark of Asian countries like India and China. He said, ‘The level of political corruption in America is staggering. Everything is about money to run political campaigns, which have become incredibly expensive.’ He also said that ‘Amazingly, the richest 1 per cent of American households now has a higher net worth than the bottom 90 per cent.’ I think this could also be true in paradise. And the govt is going for more tax cuts for the rich to protect the rich and their wealth. At the same time, the govt is wasting huge money fighting ‘useless wars in Afghanistan’ and unnecessary weapons systems, but cutting education, health, and other benefits for the poor and the working class. ‘With their backs against the wall, I(Sachs) predict, poor and working class Americans will begin to agitate for social justice.’ He added that, ‘If this continues, a third party will emerge, committed to cleaning up American politics and restoring a measure of decency and fairness.’ Though he admitted that it would take time, he fell short of saying that America is ripe for a Communist Revolution where the poor working class will rise to over throw the elite class. It sounds ridiculous, unbelievable, but if the greenback turns into banana currency, if the working class Americans could no longer afford even to buy cheap goods from China, who knows what will happen. A Communist America and a Capitalist China by the mid 21st Century! Can you believe in that? Anything is possible. The Sick Man of Asia is now the main contender to be the Number One super power and is the main financier of America, and also giving loans to save Euro zone countries. And America is deep in debt that it knows it cannot pay except for printing more money. And this will naturally lead the way to a banana currency. $200 buck for a bottle of coke is on the way. Viva la America!