10/17/2013

HDB incurring $797m deficit

It is unfortunate that the HDB has incurred a $797m deficit, a jump of $354m from last year. This is caused by the ramping up in the building of HDB flats. 72,737 units are in various stages of construction. HDB has to spend $5.2b just to acquire the land for the flats. Some of the deficits were due to higher subsidies for the new flats. The people, or those eligible to buy HDB flats must be grateful to the govt for absorbing the higher prices, a whopping $797m.
 

Assuming an average price of $300k for each flat, the 72,737 units of flats should fetch $21.8b of revenue. I hope my numbers are as close to the real numbers. I only have 10 fingers and it is a bit touch trying to use the toes as well. With this revenue, I am wondering what would be the final deficit when all the flats are sold. Last year about 10,000 units were sold. I am not sure how the $797m deficit is derived, but the deficit for 72,737 units must be at least 5 to 7 times more when all is done.
 

I am afraid the govt is going to run a loss for building so many flats. But it is good for the people with such affordable priced flats. Just hope that there will be no more schemes to cover up for this deficit.

Singapore a truly rich country

We held parties called Singapore Day for our citizens and their friends abroad in cities like New York, London, Melbourne, Shanghai and the latest in Sydney. Each event could see near to 10,000 Sinkies being feasted with our local favourites to remind them of home, all free, paid by our govt. And the cooks and their foodstuff were flown there from home to ensure authenticity. We even flew a real minister and several big shots there to really make them feel at home. See how hardworking our ministers are. Each event would probably cost a few peanuts at most. Good value for the money. Our overseas Sinkies will be so happy and their guests will be impressed. I don’t think the Americans or the Japanese could afford such parties.
 

It is one of those events that Sinkies really feel like Sinkies and being surrounded by Sinkies. You can’t even find such a gathering and atmosphere back home except in Hong Lim when Gilbert Goh threw a party. And this is what a Sinkie, a Anthony Sim, in Sydney said, ‘… he had never seen so many Singaporeans congregating in the one place.
 

“It is quite heartwarming to know we are not alone. Everyone of us were on the same page,” he wrote.
 

"There were no PRCs, India Indians, Bangla or Pinoys to annoy us.” Ahem.
Sinkies back home would not have many chances to be in the company of just Sinkies.'


Unfortunately this Sinkie event has attracted the wrong gatecrashers who demanded to be invited. And when failed to get in, they accused the organizers of racism. KNN, how can our govt be accused of racism when they invited all foreigners with their open arms here? Typical outback country bumpkin mentality! It is unbelieveable but it is true. The two hungry and hard up white Australians said on a talk show that they were refused entry to a private party for Sinkies. I hope the Australian govt is not going to demand an apology and for SIA to fly the two men for a two week fully paid vacation in Sin City to appease them.
 

Actually since we have so much money to spend, the Singapore Day could be open to all and sundry. It can’t cost that much more than the F1 or the synthetic garden in Marina and another one coming up in Changi. It is goodwill money and will be money well spent. And the hard up Aussies will be blowing our trumpet happily on how generous we are and how good are our hawker cuisines, and all the good thing about Sin. Ya, good PR value for tourism money.

Asia Asean partied in the absence of the gangster

The Asia Asean Summit came and gone, cordially and with many economic issues addressed and advanced. The Asean states and their Asian partners locked themselves up in Bali and Brunei to discuss and chart their path for economic cooperation and trade. The climate was conducive and dignified and befitting of a platform of national leaders in conference. The enmity and hostility were totally absence. There were no thumping of the table and no gangster was there to set the agenda for Asean. It was Asean taking the lead as host to other Asian leaders. It was all about moving forward for their mutual benefits. No gangster was there to seize the moment, to hijack the meeting for its hideous motives and agenda.
 

The recent Asean Asia Conference and Summit were marked by the absence of tension and big power rivalry and big power agenda. The gangster was not there to stoke tensions talk about instability and threats of war where there were none. The gangster was not there to agitate and incite interstate rivalry and hostility when there was none without the gangster behind pulling the strings.
 

The meeting was one of the most productive and least contentious that Asean and Asia have had for a long time. Whenever the gangster was around, it was the gangster that set the agenda, for more bickering and for creating fears and threats of war.
Thank God for keeping the gangster away, for keeping him busy and no time to cause mischief in the region.

10/16/2013

Chipping at the Greenback

One by one, slowly but steadily, countries are starting to negotiate to trade with China using the Renminbi or Yuan and their national currencies. The Indonesians have started the ball rolling and soon more Asean states would do likewise. Why would they want to use the Greenback that is losing its value rapidly with the Americans happily printing them to consume more and getting more into debt?
 

The latest American crisis and the threat of a debt default is very real and it is only a matter of time even if they could kick the can further down the road. The British have also signed a new agreement to be the centre of Yuan Pound swap in London. It is going to make London the biggest financial centre to trade the Yuan.
 

With this move by London, knowing how strategic the Brits are in their thinking, more European countries would not want to lose out. And this also applies to New York. There is no stopping for Yuan to be used more widely as an international currency. And the victim to this development is none other than the Greenback.
 

Countries holding on to huge American Treasury bonds are sweating in their pants with the Greenback shrinking in value like melting ice in the summer heat. The Americans are not helping either. They could not as they are deep in the shit and wanted to print more to reduce their foreign debt.
 

An avalanche is waiting to happen with the Greenback turning into banana currency very real. The confidence of the Greenback is being eroded daily and all the holders must be planning on how to get out, how to get rid of the Greenback at the earliest sign of trouble or opportunity to do so.
 

The Americans have killed two Arab leaders that were trying to scuttle the Greenback supremacy and a third one in Assad temporarily delayed. They could not be culling the British PM or other European leaders for wanting to cut down on the use of the Greenback.
 

Don’t worry, the Americans have worked it all out. It is time for another pow wow at Bretton Woods. And the Greenback would have a few zeros sliced off its back and buried for good at Arlington with the American flag wrapped around it. So would the holders of American Treasury bonds.

The Socrates syndrome

Socrates a great philosopher of ancient Athens who died around 399BC was blamed for all the ills and failures of the City State in Athens and was sentenced to death by the state.
Socrates -  ( ancient Greek philosopher )            Versus            Athenian City State

Ngiam Tong Dow  ( a pragmatic Head of Civil Service )     Versus           Singapore City State


Result
_____


Socrates:   Death  by drinking hemlock , a poisonous drink

Ngiam Tong Dow :       Recant

Verdict in History
______________

Socrates :         An honourable man vindicated by History

Athenian City State went into decline after Socrates death

Ngiam Tong Dow : People in tune with his original version

Singapore is in the doldrums, unsure of its  future