Robbing the silly Singaporeans

The silly Singaporeans, still thick in the head, did not know what had hit them. One year of inflation and hike in COE price have robbed them of at least one or two hundred thousand bucks. And yes, they are still oblivious of the fact and all are so happy. Oops, oops, if they are property owners, never mind, sitting on fat paper profits and belly feeling rich, feeling like a millionaire. For those who have to buy that car or that flat, they are as good as being robbed. How long does it take for the average heartlander to save $100k or $200k? How long does it take to save $50k to pay for that COE which is still going up and up? Maybe I am wrong. Singaporeans, including the heartlanders, are so filthy rich that another $50k or $100k is ‘sup sup suay’. Just pay and be happy to own that flat or that car. Hopefully their income will rise accordingly to make up for the losses due to inflation. Yes, inflation is the culprit. Don’t anyhow blame anyone hor.

More happy news abound

With the GE around the corner maybe it is not surprising that we are reading more happy news in the media. The most serious problem, one which many people are very angry with is over. The high housing price is slowing down man. It is not going to run away, unstoppable. The govt, or to be specific, Mah Bow Tan, has done a fantastic job in reining in the high housing price. The curbs are working! Last year resale price rose to a near record high by 13.3%, or near 14% by another main stream paper. And the good news, the rise is slowing down, wow. Just like the COEs, it is getting nearer to $100K, but slowing down. So it will be high but not running away. What a fucking relief! Cars will be affordable, and housing will be affordable too. No more worries. House hunters can now breathe a sigh of relief. The prices will still go up, and hopefully less than their annual increments. Time for celebration, time to pop the champagne. And they better appreciate what the govt has done to curb the rising price and say a big thank you to Mah Bow Tan. He is the hero, the saviour who prevented housing prices from going higher. Hurray, the ground is sweet and time to call the GE.

Why no population forecast beyond 6.5m?

A forumer, Ng Ya Ken, wrote to Today asking why there is population projection beyond the 6.5m mark. He quoted Hongkong projecting a population of 8.89m in 2039 from its present 7m. Let me venture a few guesses. One, the 6.5m is our target and we will not go further than that. So there is no need to talk about anything more than that. Two, our planners forgot to plan further, or they are still planning and have yet to come out with a new figure. Or any number bigger than this will scare the daylight out of the people? Should we stop at 6.5m or can we go beyond 6.5m? Stopping at 6.5m is a disaster as our economic growth depends on population growth. Without population growth there will be no economic growth as our productivity growth is negligible. The special jab from the two IRs will also be over by then. We will go into a steep recession once our population stops growing. On a more realistic thought, I think our planners are not sleeping and 6.5m is not the target. Just project on a continuous growth of 5% per annum and that would likely be the way to go forward. This could simply increase the population by 50% in 10 years or thereabout. Isn’t it frightening? Maybe it is so frightening that no one wants to talk about it. Would anyone want to tell us what will be the future? A population projection is the easiest thing to do unlike projecting demands for housing, and the numbers must be there. No? Please tell us, please.

QE for Singapore

Ben Bernanke has had his first Quantitative Easing by printing US$600b for the Americans. And in his plan there are six more QEs to come. Go figure how many more billions or trillions would be printed by the time he got to his 7th. If America can keep on printing banana currency to spend, my new year wish is for our Govt to do something similar at least for once. Why trade our currency and assets for banana currency? Why not join the fun? It may be opportune for the Govt to just do it and make everyone rich for once. Just create $300k for every CPF account holders so that everyone can feel rich for once, to buy a property or for retirement. With 2m Singapore citizen CPF accounts, this will come to a mere $600b as a one time pay out. There is no point in being thrifty in a world when everyone is printing money. We will end up the losers, holding American banana notes and losing our savings and our pants. It is pointless, meaningless, and worthless to give each citizen a couple of thousands which can’t really do anything for them. It will not change their lives or improve their lives well beyond one week. Do something meaningful and real. A couple of thousand is like a cheap morphine shot and the craving will be back in no time for more. The erosion of the people’s savings by inflation is serious and something more than a few thousand dollars is very necessary to combat this disease. Since our people have caught the disease of inflation, it would not make things worst by spreading the disease around in a heavier dosage. Some conditions must be attached to the QE. It should not be a stupid and mindless giveaways to all citizens regardless of new or old. Citizens with at least 20 years of residency shall get the full amount. New citizens will get a pro rated sum based on this 20 year formula. The payout shall go to the retirement accounts but can be used for home buying and hospitalisation. Going into the retirement accounts will ensure that citizens have a nest egg to live through their twilight years in some comfort. And it will not cost the Govt a huge sum immediately but delayed over a long stretch of time, depending on the age of the recipients. No more need for questionable schemes like CPF Life or other compulsory schemes. Citizens may then not feel so threatened and stressed when admitted to hospitals when there is this money to fall back on. The hospitals will be equally happy to know that the people can afford the high medical fees. The sum will also come in handy for young and potential home owners to buy their first home and solving the problems of high property prices for first time buyers. It will surely defuse the anger and anti govt sentiments and comes the next general election you can be sure of a clean sweep for the ruling party. Printing money can be very helpful to all parties, good for the people and good for the govt. Perhaps a bit of wishful thinking: )

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: )