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PETUNJUK EKONOMI DAN KEKAYAAN NEGARA

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(Ini adalah rencana pertama di dalam siri mengenai aliran semasa yang membawa kepada krisis kewangan masakini. Rencana asal di dalam bahasa Inggeris telah disiarkan di dalam blog ini pada April 23, 2009)

1. Kita semua percaya bahawa negara-negara masyhur yang maju ekonominya memperoleh kekayaan menerusi pengurusan ekonomi yang pintar dan kemahiran dalam perniagaan. Mereka juga ternampak berjaya mentadbir negara mereka dengan baik.

2. Mereka telah mengadakan pelbagai petunjuk untuk menunjuk tahap kekayaan yang telah mereka capai. Dengan riaknya mereka membandingkan petunjuk-petunjuk ini, terutamanya pendapatan per kapita dan Keluaran Dalam Negeri Kasar (KDNK), dengan negara-negara miskin, untuk menunjuk bagaimana cekapnya mereka dalam menguruskan ekonomi mereka. Yang miskin tetap miskin kerana tidak belajar bagaimana untuk uruskan ekonomi negara mereka. Mereka ini boleh dianggap negara mundur.

3. Dakwaan negara kaya bahawa mereka begitu cekap dalam mentadbir dan mengurus hanyalah separuh benar. Benarlah mereka pengeluar barangan, pembekal perkhidmatan dan berdagang di dalam dan di luar negara. Tetapi kekayaan mereka daripada aktiviti-aktiviti ini tidaklah sebesar sebagaimana yang mereka gembar-gemburkan. Jika per kapita dan KDNK mereka berdasarkan hanya kepada perniagaan yang sebenar ini, mereka tidaklah sekaya seperti yang didakwa. Sudah tentu Amerika Syarikat dan Britain akan hampir bankrap.

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BOSNIA-HERZEGOVINA

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1. Kita sudah lama tidak mendengar laporan berkenaan Bosnia-Herzegovina (BiH). Pada satu ketika nasib orang Bosniak, iaitu orang Islam Bosnia, yang mengalami penghapusan etnik oleh orang Serb amat menyayat hati kita.

2. Kita telah beri sedikit bantuan yang amat dihargai oleh orang Bosniak. Mereka anggap orang Malaysia sebagai sahabat karib mereka. Ramai juga yang menuntut di Universiti Islam Antarabangsa dan mereka memegang jawatan penting dalam Kerajaan BiH, termasuk Duta Besar Bosnia ke Malaysia.

3. Orang Bosniak adalah orang bangsa Eropah dan bukan orang keturunan Turki. Di Eropah hanya orang Albania dan Bosniak sahaja yang beragama Islam. Mereka memandang tinggi terhadap Malaysia.

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THE INDICES

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(This is the conclusion to the series on the trends that led to the present financial crisis)

1. I have listed and explained a little on five schemes for making money out of non-business. The amounts of money involved in these money make money schemes are huge. The hedge funds alone handle 620 trillion dollars. The trade in currency involves 20 times the value of total world trade.

2. These money make money schemes are huge and the earnings of those who manage and invest in these schemes are equally huge.

3. They are not business because they produce nothing and they supply no services. They also create hardly any employment, nor spin off other productive business.

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THE PYRAMID SCHEME

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(This is the fifth instalment in a series on the
trends that led to the present financial crisis)

 

1. Then there is the pyramid or
Ponzi scheme. Bernard Madoff was only exposed after he lost 50 billion dollars of
the money invested with him.

 

2. The operation is simplicity
itself. The operator simply gives back a percentage of the money
“invested” with him as dividends. If he pays a dividend of 20 per
cent he would finish the money in five years.


3. But as more and more new investors invest with him, he would be able to pay
the dividends long after the earlier investors had got back all the money they
had invested. Besides the investors would continue to invest more as they
receive the high dividends.

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THANK YOU!

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My blog became one year old last week. (The first posting appeared on 1 May, 2008).

It had been an exciting journey to be able to share my thoughts with so many who had taken time to visit and comment on my postings.

When I first started blogging, I was merely trying to find ways of expressing myself after being blocked by the mainstream media.

I did not expect to receive such high hits (to date it is 18,710,769) and such thoughtful comments. I have tried my best to respond to these comments. But the commenters must know there are too many.

There had been times, especially when I was travelling, when I found it to be quite difficult to keep up with the postings but I am glad that I had managed to ensure my blog remains active.

I have to thank visitors and commenters for their continued support. Without that, I would not be inspired to continue blogging, at least not at the pace that I do.

I hope to be able to continue with my blogging and I also hope that your support will keep on coming.

Thank you.

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THE HEDGE FUNDS

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(This is the fourth instalment in a series on the trends that led to the present financial crisis)

1. The business done by the hedge funds are more complex. But they too can borrow up to 30 times the investors’ money they hold. They are therefore able to earn for the investor the profits from 30 times the investors’ money. Even after paying interest to the banks and taking their share or commission, the earnings to the investor from 30 times his money would be very big – certainly far bigger than if the investor were to invest directly himself.

2. It is estimated that the 8000 hedge funds manage a total of 620 trillion dollars. Such is their game that the investors are assured of high profits. How they invest is often shrouded in secrecy. Much use is made of tax haven where they need not submit accounts of their shady business.

3. The poorer countries are not much involved in the shadow businesses and their indices would reflect their economy much more accurately.

Continue reading THE HEDGE FUNDS →

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CURRENCY TRADING

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(This is the third instalment in a series on the trends that led to the present financial crisis)

1. Currency trading is another non-real contributor to the wealth of the rich countries. The trading again involves non-existent money. Banks would lend as much as 30 times the amount of investors’ money held by the traders. The loan is again made up of bank created money. So also would be the investors’ money if they borrowed from the banks.

2. The huge borrowings by the currency traders enable them to manipulate the market; pushing the value of the currency up or down. When the value of the currency changes the traders make a profit. Since the currency traders control trillions of dollars, their profits would be huge, and so would the dividends paid to the investors.

3. The trade in currency is estimated to be 20 times bigger than total world trade. The earnings per dollar invested would be higher than the dividends from production and trading in goods and provision of services. The investors and traders would therefore earn far more than what they would expect if they were to invest only the money they really have.

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THE BANKING SYSTEM AND THE FALSE ECONOMY

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(This is the second instalment in a series on the trends
that led to the present financial crisis)

1. Another contributor towards the
per capita and GDP of the rich countries is the banking business.


2. Banks are apparently allowed to lend more money than they have, sometimes as
much as ten times more. When they lend this money which they do not have, it
became their asset on which interest can be earned.


3. Effectively they are creating money and earning profits from the money they
have created.

Continue reading THE BANKING SYSTEM AND THE FALSE ECONOMY →

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ECONOMIC INDICES AND THE WEALTH OF NATIONS

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(This is the first instalment in a series on the trends that
led to the present financial crisis)

1. We all believe that the great
economically developed countries achieved prosperity through their genius in
economic management and their skills in business. They are also seen to be able
to govern their countries well.


2. They had developed various indices to indicate the level of prosperity they
had achieved. And gleefully they compared these indices, especially per capita
incomes and Gross Domestic Product, with those of the poor countries, to show
how competent they were in the management of their economies. The poor are poor
because they did not learn how to manage their countries. They should be
regarded as failed states.


3. The claim by the rich that they were good in management and governance is
only partly true. They did produce goods, provide services and they traded
domestically and internationally. But their wealth from these activities is not
as big as they made out to be. If the per capita and GDP are based only on
these real businesses they would not be as rich as they claim to be. Certainly
the United States and Britain would actually be nearly bankrupt.

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BY-ELECTION

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1. I went to Bukit Gantang and Bukit Selambau to campaign for Barisan Nasional. We lost in both places; lost with bigger margins.

2. The papers reported that an independent post mortem will be conducted. I hope the people doing this will question me also.

3. In case they won’t, can I give my opinion via this blog. There were lots of banners and posters in Bukit Gantang. A lot of them showed the portraits of the candidate. But quite a lot showed the picture of the Menteri Besar.

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