1. Malaysians, including Malaysian monetary authorities seem quite happy over the appreciation of the Ringgit against the US Dollar. We think that when our currency strengthens it must be because our economy is strong. Therefore we are doing well.
2. But are we doing well? Is it the Ringgit which is appreciating or is it the US Dollar which is devaluing?
3. Actually it is the US Dollar which is devaluing. It is devaluing against most other currencies, especially against China’s currency.
5. Martin Wolf of the Financial Times, an expert on money has this to say. There is a global currency battle going on. “To put it crudely,” he says, “the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition; there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender; the needed changes in nominal exchange rates and domestic policies around the world.”
6. Our reserves are represented by the US Dollar, Gold and other currencies which we keep in order to back the value of our Ringgit. The US clearly does not have to hold foreign currencies to back the Dollar. All the US has to do is to create (print) money.
7. When we buy US Dollar bonds, we are in fact lending US Dollars to the US. When we redeem the bonds all the US has to do is to print more dollars to pay us. We are actually exchanging hard-earned money for pieces of paper which some people call toilet paper.
8. I wonder what Malaysia is doing during this currency war. Are we still keeping US Dollars as our reserves? Have our reserves depreciated because the US Dollar has depreciated?
9. Many countries are now “controlling” their currencies. Are we going to go the other way – to remove the last remnants of our control?
10. As I said in a previous article, the daily trade in currency amounts to 4 trillion dollars. Are we going to contribute to that trade?
Salam Tun,
I recently met Anton Kreil, a professional trader who formerly, worked with Goldman Sachs.
His view is that the Fed is actually running out of ammunition. The US market is still bearish(in recession) and recently, the FED injected around $600 million into the economy, hoping that people will want to borrow money and spend more.
However, it is uncertain that people will take the incentive and some argue that there will be a double dip (second wave of recession in US). The market will go up but at some point in 2011, there will be negative real GDP.
Just sharing some ideas.
Anyway, i think US is just desperate.
Also, I support your idea of de-pegging RM from USD. As we know, US economy affects the rest of the world because they are the largest consumer. De-pegging will at least eliminate our exposure to that currency (esp if the above assumption materialise).
Oh, and cant we reserve some other bonds? I’m not confident with the current US economy.
But i guess if the US economy collapse, so will the rest of the world. So, it is unlikely. (Is it?)
At least we weren’t hit that hard in 2008. So Bank Negara at least is doing something right. Btw, Tan Sri Dr Zetty is commendable and a role model (awarded OMFIF Vision For Asia Award in June)
However, I do wonder about their inflationary control.
Hurm..
Assalamualaikum Tun,
Membaca komen-komen daripada saudar-saudara yang jauh lebih brpengalaman dan bpengetahuan membuatkan saya ragu-ragu untuk meberi komen…
tapi kata org klu tidak brtanya, kita tak tahu… klu tak memberitahu mungkin akan ada orang yang tidak tahu…so, biarlah saya mewakili rakan-rakan yg seangkatan membri komen dari sudut pandangan kami yang kurang pengelaman berkaitan isu kewangan ini.
Saya ingin berkongsi sedikit pendapat dan harap Tun dapat mengutarakan pandangan Tun :
Artikel
Dengan Izin
Asia softens criticism of US stance
By Alan Beattie in Washington, Kathrin Hille in Beijing and Ralph Atkins in Frankfurt
Published: November 7 2010 22:31 | Last updated: November 7 2010 22:31
Asian governments have slightly softened their criticism of the US Federal Reserve for pumping $600bn into financial markets, as the US backed away from the idea of setting targets for current account deficits and surpluses.
But hopes of international concord over currencies and monetary policy at this week
Dear YAB Tun.
Salaams
Dengan Izin.
1. US Congress backs action on renminbi
By James Politi and Daniel Dombey in Washington
Published: September 29 2010 19:30 | Last updated: September 30 2010 04:59
The US House of Representatives passed legislation that would punish China for undervaluing its currency and harming the competitiveness of US manufacturers and exporters, in a move that could heighten trade tensions between the two countries.
China quickly attacked the legislation on Thursday as contrary to WTO rules and
DR. M
You are a strong supporter of the Gold Dinar as a currency, and suggest that Malaysia adopts it.
I agree with you. But can you tell me how this will happen I have written to the Kelantan Mint twice and had no reply. I have called countless times and the phone simply rings off.
Dealers that I have spoken to seem uncertain as to how to obtain this coins either.
It’s difficult to take it seriously or see it as a major player if you can not even get someone to answer the phone never mind supply the coins.
Jason
Dearest Tun.
may I…
//By JoAuthor Profile Page on October 20, 2010 9:41 AM
When the ringgit falls, it’s the “penyangak matawang”. Ada saja lah dan semuanya tak betul. TDM saja betul… Tak pernah salah.//
Jo oh Jo
1-Apa saja Tun cakap semua tak betul.Jo saja betul…tak pernah salah.
2-Tapi Jo BNM pernah berhadapan dengan penyangak matawang dan mengalami kerugian berbillion pulak tu..sbb itulah Tun melalui penasihat beliau Nor Nat Yakob expert sangat sehingga kan currency controls yang dilaksanakan 1998 membuat Soros cabut lintang pukang!
3-Operasi yang menjadi bualan seluroh dunia ini pada masa yg sama telah berjaya menyelamatkan berbillion pula wang kita.Kesilapan Bank Negara yg awal tu kiranya dah ditebuslah.
4-Thailand telah melaksanakan currency controls beberapa tahun lalu dan kalau Jo ada mengikuti CNBC atau Bloomberg kini Korea Selatan dan Indonesia juga akan melaksanakan nya untuk menghadapi currency war ketika ini.
5-Namun ketika krisis ekonomi dahulu negara2 ini cuma ikut saja arahan IMF sbb mereka seperti juga Jo kurang ilmu dan tak faham ttg manipulasi penyangak matawang ini.Dengan tunjuk ajar Tun hari ni baru lah dunia faham.Cuma Jo yang tak faham faham.
6-Jo punya penglibatan menukar USD di Bureau de change tak sama Jo dengan pengalaman Tun berhadapan dengan penyangak matawang..macam langit dengan bumi.
Thanks Tun.
Dear Respected Tun Mahathir Mohammed
i would like to sher withe you what an Algerian philosophair said and predict about the depandence on US dollar, and he call it ” dolarization ” :
Reflections produced Malik bin Nabi in the reality of Muslims and backward countries has important consequences in the context of decoding progress. It is the race to warn of a link to the developing economies the dollar, and said that dollarization deepens dependency and impede investment, and warned of the futility of direct foreign investment is not completed these economies optimum utilization of the potential of the Interior, said that the real investment is generated from work and not vice versa as long as the work the meaning of social and investment the meaning of Mali, stressed men should have equal consumption of the nation produced, and said that excessive consumption leads to corruption and waste of resources, and accurately defined the elements of progress the key is the time and earth and man, and said as initial elements need religion to form a social network is generated by the system effectively, The difference between bin Nabi construction and accumulation, and said things that civilization to rubble and ideas to build a civilization, and that the money, work and thought are combined qualifies as a community, and work by an adult to be a means of livelihood. In the international relations, drawing a prophet’s son spectacle, the idea of “Afro-Asian” in the context of the establishment of farm independent from the center of the capital and expected future significance to China, because it is a secure capabilities inherent in Chinese culture, and expressed by the richly-fold Popularity: can a Chinese man mountain The whole is wanted, and there developed the idea of a prophet’s son “will make possible” so flustered on the theory of constraints in the economic models based on the thought of physical.
the muslim in economic world.
salam
Dear Tun,
On comment (3) – the USD did not devalue much against the Chinese Yuan as the Yuan is highly Pegged to the USD, but the USD did drop against many other major currencies,
I think the currency topic is a great topic to raise in your blog as it would probably occupy the minds of many people right now.
I think the US Fed is devaluing the dollar to:
1. Lower Its Trade Deficit
2. Increase Tax revenue from American companies
3. Lower budget deficit
U.S Exports increases and imports decreases hence reduces the long term trade deficit problem, also by lowering the USD global companies like Macdonalds , coca-cola , procter and gamble, johnson and johnson with huge overseas revenues and profits will report higher earnings in USD – hence the U.S government will have increased tax revenue (Most likely to clear its outstanding balloning budget deficit)
but I think many other parties in the global economy will fare badly, after the 1997 crisis many Asian nations kept huge amounts of USD as reserves – Taiwan / Singapore / Korea / Malaysia / China etc etc a devaluing dollar probably mean that the reserves will be worth less and a lower USD also mean that exporters in Malaysia will have a tougher time competing in the US/China/HK.
but that aside i think its a good time to go USA for a holiday!
Salam Tun & fellow bloggers,
By reading the responses from Chedet’s bloggers community on this topic, I am delighted that there are more rational, intellectual even constuctive comments and good ideas to think about. Bravo..I think the saying must be true that we will become more matured and wiser as we grow older. Keep it up Tun and fellow bloggers.
Anyhow I would like to add/touch on comments from some of the bloggers;
Kulupati – 25th Oct – When we talk about religion, again Tun can see the overall picture can question about issues that sometime doesn’t make sense. However knowledge about Islam can be well understood by studying ( NOT just reading ) the contents of Quran and Hadiths. It is clearly stated therein that ” don’t perform something you do not have the knowledge about it ” similarly we don’t expect somebody to operate on some patients when one does not have or been trained on practical knowledge on surgery. As simple is that. Nobody cannot prevent a person like Tun to question those supposed to have the “knowledge” about why Islam should have several “mazhab” or Muslim groups that clearly have divided Muslims ( as much as willing to kill fellow Muslim just because of Mazhabs ) based on their respective intepretation of Quran & Hadith. Since all Muslims submit to Allah as their ONLY GOD and accept Muhammad ( may peace be on him)as their prophet, must pray 5 times a day, must fast in the month of Ramadhan, pay tithe/zakat and go to Mekah to perform Haj. AND yet Muslim are divided and worst still now been label as terrorist. There is no reason nor too late for Tun to learn/study Quran & Hadith from the right source ( with humility I can be reached at othmanchecker@yahoo.co.uk ) and I believe Tun having stong mindfullness can be well-versed in imparting the true teaching of Islam and therefore can become one of the most respectable Muslim leader not only among the Muslim but non-Muslim globally as well, Insya’allah. Why not?
2- Parameswara 24th Oct – Well-explained scenerio as good reading material for ordinary people to understand about the issue.
3- Adikadik 24th Oct – Yes is it worth it? As Muslim we should believe that worldly “success” is only temporary and nothing compared to permanent rewards in the next world ( akhirat ). It is said in hadith that ” if you put your finger in the ocean, what stick on your finger is worldly wealth and in comparison, those ocean is the magnitude of wealth/rewards in the next world. So ask ourselves, is the fighting worth it?
4- Sultansyarifa 24th Oct – Many good ideas for us to think about in preparation for the expected global crisis which WILL come but not sure when.
5- rezekiasia99 22nd Oct – That is interesting and good foods for thought for those who care to think. It is not the question HOW MUCH you have/earn it is rather whether what you have/earn ( can be little )have give “Barokah/Berkat”. Having so much wealth doesn’t necessary guarantee you happiness and peace of mind like those experienced by some simple kampung folks, earning no regular incomes & with several children to care for can enjoy their happiness in life to the envy of many rich people. You are right – there is a great difference between what you EARN ( reward by man ) and Rezeki ( reward by Allah ). Think about it.
6. benLim 22nd – Selective capital control and ISA. That’s good comparison and you know what? both are disliked by USA. Is it just a coincidence?
7. Owlz 21st Oct – During Tun Razak time, government focussed on agricultural activities. Result we now have well-developed rubber and oilpalm industries. Not so sure why, rice ( the most important of all )does not achieve that status until today. When Tun time atention was diverted to industrialisation – manufacturing industries to led by Proton. It is considered a success eventhough a lot more are still need to be done. The unfortunate thing was that the development on agricultural industries during the “industrial developement” received less attention even to the extend, was almost ignored. That was a big mistake. Japan is fully aware that FOOD is most valuable commodity that for it own survival, a nation should protect at all cost. Until today for example, Japan do not allow the importation of rice eventhough it is cheaper to import and is also against WTO policy of open market. Our government should at least learn from this.
8.Alan 22nd Oct – “What if many, many countries stopped buying all Made-In-USA goods? Or goods has links with USA? Stop buying US bonds, US dollars and etc? Wouldn’t it force USA to declare itself a bankrupt nation? That would bring a different scenario to the world then” Very true indeed. It will be the crazy to do, not even thinking about, as USA will not just stand there but will fight back like crazy, with all the power it possesses because such a threat is much bigger than 9/11. That’s the reason why they cannot accept or even tolerate any country to disgree with them. Remember the case of APEC vs Asian Caucus during Tun’s time? Why do you they fight in Vietnam, Somalia, Afghanistan, Iraq and why they still committ to “protect” South Korea and Taiwan and force Japan to bear most of the cost to station USA army in Okinawa? Why they still calling the ” world community” to support their policy towards Iran. Why they need to expand their CIA network worldwide? Modern time colonisation is through the setting up of puppet governments in the name of democracy, human right, freedom of expression etc which easier and cheaper to manage than without. What happen to their stooges like Marcos, Shah of Iran some examples, who are not welcome to USA after they “failed” the task given by the US master. Maybe what happen during “reformsi” in Malaysia should ring us the bell, loud and clear. And now many fellow “Malaysian” tend to forget. Those who do not learn from history will likely to reapeat them. So coincidently, the PM’s recent announcement on making a compulsory subject in school is much welcome but please not to confine to learn about Malaysian histiory but the world history. My apology to repeat that all these can be learnt from Quran.
May Allah bless us all, ameeeen.
/// By clear conscience on October 20, 2010 12:45 PM
The culprit is actually China which holds about 60% of its reserves in US dollars. Imagine the 2nd largest economy of the world holding that much in the US & all these were the result of trading surplus against the US when China opened its doors for development in the early 1980s. ///
Your conscience and brain are not very clear. China is the culprit?
China is financing the US’s deficit, and China is the culprit?
Imagine your borrowed millions from the bank, and are unable to repay the bank. So, by your logic, the bank is the culprit because it lent you the money???
Salam Tun dan semua bloger.
Dalam era globalisasi dan dunia tanpa sempadan teknik perang menggunakan minda bagi mengatasi pihak lawan telah menjadi trend. Contohnya; Currency War, Idealogy war dan Cyber war telah mengambil tempat peperangan moden.
Semua jenis Perang Minda ini boleh meranapkan sesebuah Negara tanpa melibatkan perang secara fizikal ketika era sebelum tahun lapan puluhan. Selain perang idealogi yang telah lama berlalu, kini era currency war bagi menjaga kepentingan ekonomi masing-masing.
Selain currency war, yang paling membimbangkan lagi ialah cyber warfare yang boleh melakukan serangan dahsyat hanya dalam beberapa saat system komputer yang berkaitan kewangan dan pertahanan yang diguna bagi sesebuah Negara.
http://security.cbronline.com/news/uk-facing-growing-cyber-warfare-threat-181010 )
http://www.newyorker.com/reporting/2010/11/01/101101fa_fact_hersh
http://www.montrealgazette.com/technology/cyber+arrived/3722461/story.html ).
Currency war memang telah berlaku antara Amerika dan China. Dua Negara kuasa besar ini saling berbalas tindakan bagi mengatasi antara sartu sama lain untuk menunjukkan kekuatan. Amerika bimbang tentang perkembangan ekonomi China yang hampir mengatasi Amerika. Satu langkah menghalang telah dilakukan dengan tindakan beberapa strategi. Antaranya menurunkan nilai dollar.
Strategi ini mengakibatkan, Negara yang banyak menyimpan banyak dollar akan menerima padahnya, iaitu mengalami kerugian kerana nilainya telah menyusut beberapa peratus. Amerika pernah mendesak China beberapa kali supaya menilai semula matawangnya, tapi kedegilan China membuatkan Amerika mencari jalan pintar untuk mengatasi pihak lawannya.
http://www.ft.com/cms/s/0/52b8a8e4-d0b0-11df-8667-00144feabdc0.html
http://news.yahoo.com/s/ap/20101007/ap_on_bi_ge/us_currency_wars ).
http://www.channelnewsasia.com/stories/economicnews/view/1089266/1/.html ).
http://www.ft.com/cms/s/52b8a8e4-d0b0-11df-8667-00144feabdc0,Authorised=false.html?_i_location= ).
Malaysia harus mengambil langkah bijak dengan tidak menyipan banyak dollar Amerika sebgai cara untuk mengimbangi nilai ringgit. Sebaliknya ada lebih baik menyipan emas yang diketahui harganya telah dan kiang meningkat.
Tq.
Tun Mahathir,
The economic model need to be revoked. I have been told that the mere reason why most South American countries refuse to accept more loans from the IMF is because of the IMF policies that bend down all third world countries to far greater debts. At times not all Latin
American countries can afford to pay back their loans and most of their people are living in the state of extreme poverty. War wages among nations due to the fact that some governments willing to pay the war mongering industries hefty currency in order to gain control over borders and frontiers. The war still rages on and the paymaster will control their leaders and bend down all rules and regulations. “Give me a nation and I may not care of it’s law and regulations”.
I personally think that what is best for Malaysia is a new economic model that help to prosper it’s people and not to do otherwise……
my goodness…
clear conscience, what r u talking about…
it doesn’t matter the war is against who, between who…what matter is who’s gonna suffer…u got to do a lot more studies…
1 Ringgit par 1 Euro,nak beli tanah senang,rumah,
kereta mewah,invest di negeri jiran pun senang,nak dapat pekerja
jiran datang pun senang,nak menang undi lagi senang.Semua nya manipulate
aje, macam orang lain buat.
Dear Tun,
What you said is quite true. the world is in economic turmoil and uncertainty. It is spreading to Malaysia. Recession is coming. The just concluded UMNO General Assembly signals the fear for the economic future of the country. PRU 13 IS DUE ONLY ON 7th March 2013, two and half years away. But DPM predicted to be in a matter of months meaning March to May 2011.
Datuk Seri Najib is in a hurry to spring a surprise election. In fact, the opposition has read this earlier. Sodomy 2 may not be concluded by then.
BN will face tough time winning back the 5 states lost during PR12. But I am sure Najib wont make the same mistakes as his predecessor. If he waits longer, economic environment, business failures, bankruptcies and unemployment among the voters may be worse and untenable. Therefore now is the best time to hold election.
amin tan
Salam Tun dan semua warga chedet.
Artikel Tun kali ini juga amat menarik. Currency War dan Perang Minda dalam era globalisasi ini sebenarnya telah lama berlaku dan kian ketara masa kini.
Bahang ini telah benar-benar berlaku. Contohnya, mungkin antara dua kuasa besar iaitu China dan Amerika, manakala dengan Soviet Union telah lama berlalu dengan kemenangan memihak kepada Amerika yang telah berjaya menghancurkan empayar Soviet Union.
Artikel Tun Para..
salam Tun, Persoalan ini tidak ada kaitan dengan topik diatas cuma nak tahu apa komen Tun di sebalik berita hari ini di “utusan malaysia”. Sime Darby mencatatkan kerugian berbilion RM. Mengapa masih menganjurkan kejohanan golf yang melibatkan jutaan ringgit. Tidak pastilah jika kejohanan itu melibatkan sponsor luar. Sepatutnya Sime Darby melaksanakan langkah perlu bagi menampung kerugian yang telah dialami. Sime Darby perlu ada orang macam Dato Idris Jala bagi mengembalikan reputasi Sime Darby. thanks salam
Assalamualaikumwarahmatullahiwabarakatu.
This post strike my mind in an abstract way. How strong the impact of belief?. People’s belief in US currency so much until it gives them an unlimited privilage to print unlimited amount of money. They dont need to be hesitate to print their money.
We lend them our money which we work hard to earned, and they used them to create atomic bombs, nuclear bombs, tanks, helicopters, jets and many military equipments to create destruction and destroys life. Acting as if they are the police of the world, but they are afraid of a “small land”. Elephant afraid of rat. Obviously the world is a mess nowdays, the lender acting like they are the boss.
As for the what the goverment will do is an intresting thing to analyze too. We are like playing a chess right now. Except it jeopardize people’s life and dignity.
This one is out of curiousity.
You never make it clear ( or I’m the one who is a little bit slow) on how the “penyagak matawang” playing their cards back then on the financial crisis 1998?.I’ve tried to search on the internet but I cant find any.
I really hope you can share your experience on this one. Its for our knowledge. I dont think there can be anybody who is reliable enough to share what had happen except you.Sorry if I’m taking your time. I’m trying to think one good reason why you need to write a post for this, just because I’m the one who is requesting for it. My answer would be, maybe because you are Bapa Kemodenan, so basically you are my father too? Nowdays a father use to entertain his son’s question? 🙂
Apart from that, the PKR leader, accused the financial crisis was due to the corruption that happen during your days. Is that enough to bring down the economy?. He also can point out that, ” see! Abdullah’s ministers are also corrupted, so it can bring the economy down, the accusation that I put on Dr Mahatir is valid”. Is it true the Malaysia’s economy was down due to massive corruption or is it because of the bad decision made by the Minister of Finance?
Dearest Tun
1-It was just 2 years ago when the Sub Prime crisis of Sept 2008 caused an economic meltdown that almost brought the USA down on her knees.When US sneezes the whole world will get the flu.All her good friends notably England,Spain and France are still in economic pain and trying hard to heal via the easiest of ways,cutting down on expenditure measures.Britain is going to axe off half million of its Govt staff in 4 years .
2-Strikes and strife are going to be the order of the day.There are already people now living in makeshifts homes under bridges.A new poverty culture once seen only in the third world countries are now being adopted as a new culture of these once great colonial masters.
3-While all these nations are still struggling to survive, suddenly the Stock Exchange of the originator of all these problems have somehow been magically resurrected.At the Wall Street yesterday the Dow hit 11,200 points already and one CNBC analyst was bullish that another 800 points would be reached easily anytime now.
4-On what basis one would wonder is all this resilience?All we could see in reality is the ugly fundamentals of the US economy,the most non sensical one the World has ever seen.The Central Bank is owned by the private sector fully autonomous of any Govt intervention whatsoever.When you hand over a big money making machine this powerful to a group of greedy capitalist ,nothing but only evil can be expected of it.
5.Their economy would actually have already collapsed by the technology bubble burst in 2000.But FED Chairman Greenspan then was able to create a property boom to relay and delay that crash.The War on Terror was launched to demonstrate further a sense of superiority and at the same time distract the people of the actual state of their economy.
6-A very low interest regime was introduced to further give the American people a false sense of an economy flush with liquidity as well as to imbue continued confidence to the people .Due to the lower margin it forced banks to be really aggressive and creative to come up with all sorts of innovative products . To be profitable bankers must now go for volume.Desperate, these banks work together with credible rating agencies to give triple A ratings even to clearly are toxic assets to be sold around the World.
8-This property boom created by Alan Greenspan eventually also crashed out as what is known as this Sub prime crisis.Although The Wall Street collapsed the American economy somehow did not follow along – thanks to the massive bailout not seen before in our modern economics history.It survived for now, albeit only temporarily.Well if it had been any other ordinary country, USA would have ready collapsed so bad even ZIMBABWE would be seen as a success economy.
9-The great people of America will boast of how they have shown again and again their resilience to make a great comeback after every setback.But the question is how far is this true? Answer is of course, nonsense,they are only lucky because of they can create money from thin air.Whatever stimulus is needed..in whatever trillions.. can just be printed out.
10-No the bull is not coming back,only the bull shit is.The weakening of the USD that contributed to this notwithstanding, this artificial propping up of the economy is unfortunately unsustainable in the long run.The alternative media to Wall Street’s accomplices,partners in crime, CNN,CNBC,Bloomberg are now all here to expose and counter their lies and break their monopoly on public opinion.
11-The USA is obviously up to something desperate to remain the boss of the World and this is no conspiracy theory.The double dip that must come simply because a total collapse that is long overdue for its economic irresponsibility is bound to happen sooner or later.The leak on the economy somehow is just simply too huge that all the paste they are using will be bound to wear off anytime now.
12-My heart and head tells me when the Dow Jones actually hit 12000 points soon as it definitely will- that’s when we should all be nervous and be on the watch out.That will be the last straw that is going to break the camel’s back.Good luck has its limits and we really are at its edges…
13-If this doesn’t happen yet ,don’t be too happy for it will only mean that the disaster is being postponed for reasons only God knows, but never averted.The later it happen the worse its going to be for the whole world.Why is this so?Because the truth shall prevail and falsehood vanish for falsehood is bound to vanish eventually ,that’s why.May God bless us all.
Thanks Tun.
I think the best way to live is to be ourself.
Don,t bother much of the world movement,the currency,etc.
So,if we are not a rich country,so what!
As long as we can feed ourself,shelter ourself.
I find life is very much complicated with stupid human technology.
Now,everbody has to carry handphone.
Life is much complicated with outside world.
Do we really need to compete with each other.
It seems never ending process.
Life short,
filling life towards progress,
competing each other,fear of tommorow,
does it mean success
“Ya Allah, aku memohon pada Mu agar kami diberikan kekuatan untuk meneruskan perjuangan ini. Sesungguhnya kami ini hanyalah hamba Mu yang lemah dan tidak mempunyai daya untuk menjadikan sesuatu melainkan dengan izin Mu ya Allah! Bukakanlah pintu hati semua yang membaca blog ini agar dapat membantu menjayakan matlamat penubuhan Koperasi Kinta Utama Perak Berhad ini. Amin!” http://kerjaya-muslim.blogspot.com/
Salam Tun dan semua warga chedet.
Seperti Tun kata telah berlaku Currency War dalam era globalisasi masa kini. Bahang ini telah benar-benar berlaku. Contoh, mungkin antara dua kuasa besar(China dan Amerika).
Artikel Tun Para..
YABhg Tun
When you mention 4 trillion a day, you should not forget that the 4 trillion the next day is the same of the 4 trillion the day before. It’s just the same money changing hands again and again.
Is total economic collapse just around the corner? As the U.S. dollar weakens and the price of goods such as oil, grain and gold rise, many fear for the economic stability of the country. So how does one survive total economic collapse? The U.S. dollar is weak and it may be too late to save the finances of this debt-driven economy. However, it’s not too late to learn some basic survivalist skills. Following are some tips and resources. Here’s how to survive a total economic collapse.
this advise for malaysian
Make a plan for how to survive a total economic collapse. List your debts and assets. How quickly can you pay down your debt, while still purchasing necessary supplies? Your goals should include no debt and the procurement and storage of valuable assets. Your preparation timetable should be as short as possible.
Pay off debt and avoid new debt by paying with cash instead of credit cards. Concentrate on paying off high-interest debt, loans with adjustable rates and unsecured debts first. Sell expensive vehicles that have loans to pay off what you owe, and buy cheaper replacements using cash. In order to survive a total economic collapse, you need to have assets, not liabilities. (Note: storing food and resources are higher priority than paying down debt for families of modest means.)
Change liquid savings into silver and gold. If the dollar collapses, having precious metals will preserve your money and it can be used as currency or exchanged for a currency with value, such as Swiss francs. As the dollar continues to lose value, silver dollars preserve their value or go up in value, thus protecting your assets in the event of a economic recession, allowing you to financially survive a recession or depression.
Re-evaluate your stocks and mutual funds. In order to financially survive a total economic collapse, your investments must be secure. Consider putting some of your stocks into gold (GLD) or opening a precious metals IRA. Research stocks that will survive a total economic collapse through sites like Daily Reckoning Day.
urchase goods and valuables such as guns for hunting and personal protection, and basic food supplies such as whole grains and legumes, which are easy to store. Invest in water purification bottles and tablets, and keep some bottled water on hand to meet immediate needs in the event of a shortage. All of these will make it more possible to survive a total economic collapse.
Get to know your neighbors and build a community wherever you are. In the event of total economic collapse, life will become very local and survival will depend on working together with others, beginning with families.
Grow some of your own food and raise animals for meat. Chickens and rabbits are small and easy to tend. Chickens provide eggs as well as meat and are excellent sources of protein and fat, both critical for survival. In economic downturns such as a recession or depression, being able to produce food is a important skill to have.
Learn how to barter, and stock items to trade. Think about necessities (wool blankets, soap, boots, duct tape, ammunition) as well as luxuries (chocolate, tobacco, alcohol). Useful tools will be more valuable than money if there is a currency collapse. Useful barter items will be helpful to have on hand as you prepare to survive an economic collapse.
salam TUN,
saya ingin bertanya pendapat TUN tentang cadangan pembinaan menara Warisan yang bernilai hampir RM5 billion. Adakah ini wajar? Saya bertanya kerana hal itu mendapat tentangan dari kebanyakan rakyat yang menyatakan cadangan itu hanya satu pembaziran dan duit itu boleh digunakan untuk hal-hal kebajikan rakyat.
terima kasih TUN.
Dear Tun,
Peole say if we print money ex nihilo, it will eventually become zimbabwean/banana republic dollar. When a fiat currency is abused, it will be just like a ponzi scheme, which eventually collapses upon itself due to its unsustainability. America has trillions of unfunded liabilities (some people estimate it to be more than 60 trillions). Because of creative accounting, this huge debt is kept hidden, and the world is in complicity with this game, perpetuating “trade imbalance” at our own peril.
Maybe because the dollar is the world reserve currency, such huge trade imbalance were not so apparent previously, but now that the debt bubble is too gigantic, it cannot be hidden anymore, as the whole financial system is destabilizing.
World financial system is permeated with practices that are characteristics of gambling. That is why gambling is an essential income for western banksters. The trillion dollars transactions done everyday are not due to trade per se, but gambling. Because money is never enough for any greedy people, eventually such activity spawns into fraudulent ones, such as the mortgage backed securities fraud that is now so huge that it could not be hidden anymore.
It is claimed that the bankers were sloppy in handling the paperwork to secure the rights of the financer/buyer, but I believe they designed such instrument deliberately with such vagueness to camouflage their overleveraged and overinflated gambling activities. Now their housing industries are in jeapordy and who knows how much more trillion dollars USA will print to “save” /bail out their “too big to fail” gamblers. We should all learn a very good lesson from this crisis, that democracy simply does not exist when a country is being held ransom by the financial oligarchy that had taken a stronghold position in America. It is very very dangerous for a country to allow financial institutions to become too powerful and too important for the financial system/economy of a country.
Perhaps when the USD becomes the banana republic dollar, they will create a new currency, leaving those who hold hyperinflated USD with deflated wealth. At that time, such people can only blame their ownselves for their complicity/participation of such unsustainable scheme.
Assalammualaikum Tun and All Readers,
To understand a simple economy on what happens to US current economy and their Dollars, just visit the website below. It has a series of videos that explain what actually happens in US economy now and why is it impacted us. You do not need a degree to understand the course, as long as you can read and understand simple English. Christ has explained it in a well layman terms to all of us who do not know much about economy at all. Its free and why not try to understand it?
http://www.chrismartenson.com/crashcourse
Regards,
Emma Roslinda Edrus.
Salam ayahanda Tun,
An alternative Islamic economic system ie rizKonomi vs risk-economy…
Too much “RISK” involved when currency trade is not regulated. But “RIZKI” is a gift from God.
“Ya Razak” salah satu dari wirid yang baik dari nama2 ALLAH jika ingin di mudahkan rizki. Rizki umat Melayu berkembang di mulakan olih Allahyarham Tun Abdul Razak dengan polisi DEB yang diperkenalkan…..
…..does it ring a BELL our current PM Datuk Seri Najib Tun Razak!!!
Istilah EKONOMI berasal dari perkataan Greek
Assalaamualaikum Tun.
Di harap sihat dan ceria selalu di samping keluarga.
Hairan lah Tun negara kita ni.Pakar sendiri nasihat di perlekehkan,orang luar nasihat di ambil kira,
Siapa agak nya penasihat tu Tun?Dahulu kita dah mengalami sejarah hitam tetang maasaalah keewangan sehingga Tun berjaya mengatasi nya dengan cemerlang.Ada kah negara kita mahu mengalami nya lagi?
Tak tau lah Tun rasa macam dah give up dengan pemimpin kita.
Tun we miss u so much,make a come back Tun.
May God Bless You Tun.
true..indeed…
myb because we decided to close one door and open the other door which, in a way, not the right door for us…
What if many, many countries stopped buying all Made-In-USA goods? Or goods has links with USA? Stop buying US bonds, US dollars and etc? Wouldn’t it force USA to declare itself a bankrupt nation? That would bring a different scenario to the world then
Salam Tun, is it the currency war, yes its of course. The US says, in the name of survival economy, a currency war must starts. Where are the goods purchase in US Dollars now. Its in our supermarket and Low Yatt Plaza. Who buys them, the tourist especially Arabs during this holiday season. Tourists coming to KL today they are no longer spending like before, because from RM3.80 to RM3.15 is very expensive for the customer, its easily 20% more expensive. Our traders in Plaza Low Yatt are suffering now due to poor sales. This will stop the Arabs from coming here and to resvers to US the old destination. if the pice of goods are the same, why come to buy in Malaysia.
to those who do not understand what monetary system really is, please do not comment. It downgrades yourself!
US is making money out of paper, others are bartering it with their sweat, their hard earned income. Don’t you see how we are cheated? It is sooo convenient to the US when others give it gold and in return the US gives paper instead, yes the toilet paper with no intrinsic value in it!
Only mahathir understands this when others around the world couldn’t make it why it is so strange with the global economy. Watch here, you’ll understand what I mean.
http://www.youtube.com/watch?v=DTGqdgoY1Ks&feature=related
Selamat Sejathera Tun
Currency War is something beyond an ordinary man can understand in details. Even if we understand, it doesn
Dearest Tun
1-Great news to all Malays announced by One Malaysia Najib.Even though a 2/3 majority have been obtained ,without the consent of the Malay rulers the special privileges afforded the Malays cannot be terminated whatsoever.So in other words the Malays can keep their handicap for as long as the sun and the moon is in the sky.
2-The Chinese and Indians must learn to live with this fact forever too.If you want to be happy as a Malaysian you must accept this constitution that have been formulated by 5 commonwealth judges from England,India,Pakistan and Australia appointed by the Queen of England and the Malay rulers after consultation with the Alliance,the ruling party which had been democratically and overwhelmingly chosen by the people of all races of the then Malaya.
3-At that point of time everybody was so elated.So the social contract is a valid one.Nobody was trying to cheat anybody.All understood the significance of the social contract.The Malays enjoy special privileges in return for agreeing the non Malays to enjoy keeping their language and culture as though they are still living in their homelands ,a truly unique privilege they were extremely lucky to get.
4-So to my non Malay countrymen,there is really no choice,if you can’t live with this reality and or accept this destiny (not our choice nor can we change it)then it may be very wise that you should consider migrating to another country where you you could be happier.If you just do not have such an opportunity then you got to learn to make lemonade now that you perceived life have handed you lemon.
5-Is this problem with this special privileges really that big?Do people in other countries have bigger problem?”I had the blues for I had no shoes until upon the street I saw a man who had no feet”.Wisemen say the minds on its own can make a heaven of hell or a hell of heaven.You gotta manage your own thoughts since there is no other way.You decide whether you want to be miserable or not over this issue.
6-This special privileges afforded the Malays only mean that they the Malays fear and respect you,that they know you are a great people that will eat them up economically without the protection of the Government.So feel great about it man.After all you proud people actually don’t need it.So what is the big fuss all along about this help extended the majority yet less advantaged countrymen?
7-Life is short don’t worry be happy.Salam ‘retorik ‘ Satu Malaysia!
Thanks Tun.
A’kum Tun.
As of August 30, 2010 below is our International Reserves and Foreign Currency Liquidity as stated by BNM. Of all the reserves that Malayisa have, my only concern is our Gold Reserve which kept at +- USD 1.5 Billion that is indeed extremely low knowing that gold price is keep appreciating like nobody business and will surely keep appreciating for many years to come until end of time! (as stated in one of Hadiths).
Official Reserve Assets and Other Foreign Currency Assets
(approximate market value in US$ million)
A. Official Reserve Assets 95,247.80
(1) Foreign currency reserves (in convertible foreign currencies) 85,094.40
(a) Securities 78,665.50
of which: Issuer headquartered in reporting country but located abroad
(b) Total currency and deposits with: 6,428.90
(i) Other national central banks, BIS and IMF 1,532.00
(ii) Banks headquartered in the reporting country 0.00
of which: Located abroad 0.00
(iii) Banks headquartered outside the reporting country 4,896.90
of which: Located in the reporting country
(2) IMF Reserve Position 449.70
(3) SDRs 1,992.70
(4) Gold (including gold deposits and, if appropriate, gold swapped) 1,451.40
Assalamualaikum Tun.
Best tgk PM kita berucap hari ni.Bersemangat.
Sejuk hati dengar dalam berita ada selawat Nabi s.a.w sebelum bagi ucapan.Barulah ada rasa berkhidmat untuk agama dan negara.
Saya kira UMNO ada sedikit perubahan…mana saya tahu saya tak pergi.
Terima kasih Tun.
YABhg Tun,
…currency war??? I don’t mind being bombed by all those money….
Raining coins for once….instead of bullets…..that’s should be fun!!
Assalamualaikum Tun,
1. Another great insight from you.
2. First that comes in my mind is Japanese Yen. Pity them, their money are stronger yet it is not the best as an exporter. They were and still in financial crisis, this does worsen their wounds. I do think Japan is one of the first casualty in this war.
3. As an exporter country, we also should learn fast and act and smartly.
4. US can only control so much, which is just their own currency. Surely we should not peg direcly with USD any more.
5. I do trust Tan Sri Zeti for her floating strategy. She and her team has been great in managing Ringgit.
6. But somehow, rather than keep Ringgit floating, with proper implementation, your proposal on Gold Dinar might be the better solution in the future.
Dear Tun,
Reading the 19 comments already posted here, we can see that most of them DON’T get it yet.
No matter, what matters is Zeti’s and Najib’s views on this. I sincerely hope they got it and are doing something about it.
Cheers
Assalamualaikum Tun, Shalom to the Jews and Hye to everybody.
Inflation is a rise in the general level of prices of goods and services in
an economy over a period of time. Money? Money is just a tool. The tool is
to deliver the goods and services. Who knows if any country just print some
massive dirty paper money and buy any products with a huge amount, from
other countries and provide it back to their own ugly dirty money countries.
This is cheating, lie to other people, manipulating other people’s
stupidity. The best thing is, Malaysia has to try to be independent, freely
to decide our own decision, our policy makers and no need other people to
pull the string from behind to puppet our motherland. I give you a simple
example. Human needs protein. Protein come from the food and without
protein we can have the disease like kwashiorkor, Marasmus, osteoporosis
and so on. Specific type of food – milk, meat and bean-nuts. Our civillians
will pay for it.
Do we have to import it and send our money outside? Or do we have to
export it and other countries can give the money to us? Or other countries
can print the ugly dirty money and just pay us with it… The stupidity,
the naiveness, dunno-how-things-work and incompetency of us is going to
let the opponent taking an advantage of us, use us. I dont wanna be that.
I dont want. Better we build our own land of crops, we plant our own bean,
nuts, vegetable and use all of our biotechnology graduates to do some
genetic engineering in our crops, plants and anything. No need to rely,
please and being feeded by other nation. We stand on our own. Money – can
money create food? Create our doctors and engineers? Create our water and
oil? No. But it is just a tools.
The economy without activities (I mean, real job activities and not just
currency speculation) can only bring us down, make us bankrupt and
starving. Just improve our country and Im sure we are gonna be wealth,
rich, prosper and glory nation. Our rakyat are more concern about glory
Manchester United rather than our own fate. Damn!!!
p/s: Salam and Hye to pakbelalang, 6 Jahanam, nothefella, Wara, rarunasalam, akulaM, autoboy, TheMultitudinousOne, Mahamas Ambulance, NasiLemak, ben lim, S..Tan, fbm, bangsamalaysia, Kak Long SJ, austozi, hati.malaysia, saraswathy, Mis_bah, checker, jalil7, miorfaris, HBT, musafir akli and others. And Shalom if you are the Jews of Israeli. May Allah bless you.
– Mohammad Shafiq, ex-University of Malaya, Electrical Engineering Department –
Dear Tun
Congratulations to a great speech by our Prime Minister Datuk Najib during the opening of UMNO 2010 conference. It is in the audience of you looking straight at him symbolic as a concern father to his son. As the PM explaining to the whole nation the meaning, purpose and direction of UMNO in the existence of Malaysia i’ve noticed that you put on a very serious face during the whole speech. It is not easy to be a person of your stature coming to this conference even after that medical attention you’ve just had.
By all means Dr Tun, why are you not being straight to the point that selling our currencies to the world is really a financial suicide to our monetary system. Currencies Trading is a warzone.
Our government still in dreams.
Salam.
Bersyukur TUN dah kembali berblog dan meransang pemikiran rakyat Malaysia. Saya teramat meluat tengok ucapan Ketua Pemuda, rasanya UMNO masih tidak dan gagal berubah. Gagal di sini bermaksud gagal merasai denyut nadi betapa rakyat keseluruhan teramat bencikan KJ, Nazri Aziz, Hishamudin Amaran dan Noor Yaakob. Jika penjahanam ini di nyahkan dari UMNO insyallah BN akan menang PRU nanti.
To Jo on October 20, 2010 9:41 Am,
Yang anda tak puas hati sangat dengan Tun apahal, tindakan Tun untuk menghentikan urusniaga matawang ketika itu ternyata berjaya menggagalkan matawang Malaysia di manipulasi oleh penyangak matawang. Bagi anda semua yang pemimpin negara buat semua tak pernah betul, anda masih berorientasikan tanah besar China. Anda pura-pura tak nampak kesalahan leader MCA, Gerakan, MIC & PPP. Anda perlu datang ke Menara PGRM, Maluri Ceras untuk tahu apa yang dibuat Gerakan untuk mengkayakan parti, adakah anda sanggup mengakuinya..?
Salam kasih dan salam hormat Ayahanda Tun.
One time, you look bewildered and inquired who is this Khairy? That was back in 2006 and some quarters had even suggested you go and meet Khairy for any thing you may want to discuss. Then you look bewildered again when it was brought to your attention that a certain Menteri Besar would give Khairy the VVIP treatment when the Timbalan Ketua Pemuda UMNO comes by his state. You again asked: who is this Khairy?
Well sir, have you been to the White House? Yes you have for sure. Then you would have probably been greeted by the White House Chief of Staff upon arrival to the West Wing and then ushered into the Oval Office where the US President received you. You had some chit-chat, courtesy calls, some camera laughs and then the meeting was over. The White House Chief of Staff shall then rise and holds the door open for you as you leave. You may be mistaken and probably thinks that the President had a nice butler, major-domo, and concierge or so it seems. But sir, that man who held the door opened for you
Salam Tun & fellow bloggers,
USA is “economically strong” is more on perception rather than based on fundamental. USA has always been living on deficit in USDtrillion year after year and yet USA dollar still being accepted as currency used in major trading activities. Because of this dependency,when USA sneezes, the world will be coughing. So the world will make sure that US appear to be healthy so that the rest will not be coughing. US actually has no real worry. When they need money they just print it, raise junk bond etc and still the world accept. What TUN said that at the end, USD is worth a toilet paper is likely to be more true than otherwise.
When come the worst situation, they will create “wars” as to increase their revenue through selling of weapons ( unfortunately their old junks that they need to dispose of ), expertise etc. They like to keep the trouble spots in the world on status quo ( boilng forever )so that they can have permenant control/influence over the parties in “disputes”. To them this is only a game fought at the secret location at the Wall Street. Remember that our tin & rubber prices are controlled by London? Similarly price on other commodities. These capitalists control everything. Actually every country should try to have some control over their economy. Why Japan for example prevented at all cost, importation of rice, to the extend of defying the WTO agreement on open borders / globalisation? It is the question of strategic decision for their national interest on security and survival. Globalisation is invented by the stronger nations, appear to be good for the smaller economies but actually in the long term, it will do more harm than good. Will TUN agree to this view from simple minded guy like me?
NB –
I have received a suprise info through emails regarding the stagerring cost of maintaining ” Malaysian Philharmonic Orchestra”. Tun being the Petronas Advisor may have some knowledge about it. Personally, I am not in the habit to spread such information without knowing the truth. As such, I can extend the email direct to TUN if requested for your EYES ONLY. I can be contacted at orbee007@gmail.com
Dear Tun,
I am sorry to have to disagree with you on your analysis of the so-called ‘the currency war’. Forgive me for saying that it is an exaggeration and I can see most commenters are just apple polishing sycophants,so to speak. some even invoke the name of God Almighty.
You wrote no 7. ‘When we redeem the bonds all the US has to do is to print more dollars to pay us. We are actually exchanging hard-earned money for pieces of paper which some people call toilet paper’. First part is ok. But the second part is wrong. exchanging hard-earned money for pieces of paper which is useless(toilet paper). A country having big reserve of foreign currency means it can use the foreign currency to pay for imports. In the case of Malaysia, if we have big reserve in USD we can use the money to pay for Mara and JPA students studying in the US and Air Asia and Mas can buy BOEING 747. These are the best commerccial aircrafts in the world. In poor countries like Burma and Laos, USD can be considered legal tender, more widely used than local currencies. Dont ever underestimate the strength of the US economy. Big corporations of the world are in US like Dow chemical, Exxon Mobile, KFC and many more. Big institutions like Yale, MIT, Harvard University, John Hopkins University and many more are unbeatable. Even tha United Nations is in the US.
Undoubtedly, the US economy and the economies of the whole world are weak currently mainly due to weakness of US economy, in turn due to the weakness of and started by the junior Bush administration, a little bit quite similar to our previous government. Everybody knows the causes of the current economic problems of the US are subprime loan scandal and the war in Afganistan and Iraq. Stop the war immediately, then you can heal the economy.
There is no currency war. It is good and logical that America ask China to revalue its currency because balance of payment is hugely in China’s favour. America requested the same from Japan in the 70s for the same reasons.
Some commenters try to say using gold as reserves of a country. It will never be. obsolete. Gold is not functional. We never use gold to perform any functions in our daily lives. We still eat at KFC, fill our patrol at esso and mobile and travel with air Asia using Boeing aircrafts. I am not pro America. BUT we have to be realistic and truthful for our own good. People are smart now. Gold is only used by ladies to enhance beauty and attraction, so to speak. Men have very little use for gold. Nobody use gold as money to buy anything any where in the world, not even in China. They use paper money, cheap to produce because using same material as toilet paper and handy and convenient.
amin tan
Dear Tun,
I don’t think we should always be in the opposite camp as far as the US is concerned.
I am worried that one day, when they decide which people to rescue and send to another planet to continue life, they will ignore us.
Let us not forget that the PC and the internet and even the lamp that we use now, all these are their inventions. If we can’t beat them, just join them, like our neighbours do.
Assalamualaikum Tun,
Yes, there is indeed a currency war. All the ‘smart’ countries are devaluing there currencies.
The most important question to ask is why devalue the currency? It all has to do with China. You see Tun, China has become largest net exporter in world. It has the largest trade surplus. On the hand, the US, has become the largest net importer. The US also have a large trade deficit i.e it imports more than it exports.
Now the US is dumbfounded how China was able to sell its products to the US more than the US is able to sell its products to China. The reason is simple, cheap money i.e a devalued Yuan. With this devalued Yuan, China’s export has become very competitive due to lower price and its imports has become expensive, so importers would need think very carefully if they want to import.
Welcome to China Inc. The business model is quite simple. Have a devalued national currency. Investors will flock in droves because investment in China will be cheap. That’s why a lot of American companies like Apple, Nike, etc all have relocated their plants in China. China have cheap labor compounded with the cheap money i.e weaker Yuan. Lo and behold, almost all the major products of the world is now in China. Even the iphone, which consumers around the world are crazy about now, is made in China.
At the end of this spectrum is the US, whose products has become expensive and thus unable to penetrate China market.
And so having looked at China’s business model, what the US is trying to now is to emulate that strategy i.e make the US dolar cheap. They hope to emulate China’s success. That is why the US, together with the Europeans, have banded together to pressure China to revalue i.e appreciate the Yuan. They want a to have the cake that China is currently enjoying. Thus, begins the currency war. That is why many countries now are depreciating their national currency. The lower the value the better.
Malaysia on the other hand is appreciating its currencies due to “strong economic fundamentals’. I believe it is more to do with the US and other countries involved in the currency war that has caused the MYR to increase. The US WANTS the US dolar to be weaken. Due to higher MYR, it has caused our exports to become expensive and imports cheap. This will encourage our trade deficit to even widen.But then why are the foreign funds putting their money in Asian countries like Malaysia? Investors would prefer to go else where if they want to do business, like China, because it is cheaper. Which could only mean the current foreign funds coming into Malaysia is not about doing real business but more to make a quick profit i.e speculating purposes. Now with no controls to control these speculators, one has to wonder whether its deja vu, 1997 financial crisis in the making, AGAIN!
Only this time, we don’t have the charisma and leadership of Tun Mahathir to help us should these speculators attack our economy again.
That is on the Asian front, on the global aspect, what would happen to the world currency system if everyone is printing their currencies to make their national currency cheap. As you may have guessed, there will come a time when these money become worthless just like the Japanese Pisang Money used during Japan’s occupation of Malaya. Too much supply of money, causes the money to become worthless.
If the world currency system breaks down, what would happen? Will we turn back to gold i.e gold dinar? That would be the 1 trillion question to answer.
(It must be noted the US has the largest gold deposit in the world at 8,965.6 Tons, $286.89 Billion) refer http://socyberty.com/economics/world%E2%80%99s-largest-gold-reserves/
Dear Tun,
Alhamdullilah, Happy to have you back Sir.
Interesting topic.
1. We have heard US went to war in Afganistan and Iraq with no concrete reason. They have never win the war but one thing for sure others will suffer.
2. For the same reason they created currency war in order for them to have all of us suffer.
3. “6. Our reserves are represented by the US Dollar, Gold and other currencies which we keep in order to back the value of our Ringgit. The US clearly does not have to hold foreign currencies to back the Dollar. All the US has to do is to create (print) money.” Your are right they do not have to keep any reserved but they do have the highest gold reserve in the world i.e 8133 tonnes whereby we only have 36 ton ( according to some reports ) which less by 100ton to Singapore.
4. As the currency war escalated the only refuge shall be GOLD as wealth preservatives. coz US can print tons of currency but can’t do that with GOLD.
5. If the government didn’t do anything, then the objective to become high income society shall be meet much sooner since we will becoming net importer rather than exporter. At the end on the day the NET is ZERO.
6, Since you have been the Ex Finance Minister before. Can you comment on The BANK NEGARA right now? WHAT ARE THEY THINKING????
7. We should have not float our currency at the first place!!!
Wassalam.
Assalm mualaikum
Tun,
Saya berharap Tun sehat sehat aja. Just look after your health properly.
Problem nya Tun, setiap kali ada change of leadership in the Government, especially when the previous PM was in charge, he wanted ‘ His Way ‘ rather than to at least continue something that is good that u have done before. Sama juga dgn the present PM..he too wants ‘ His Way ” just to tell the world who is Boss in this country.
Seems these people either they hate History atau simply stupid in History lesson
Begini la org kita Tun ( sometime malu nak sebut ‘ org kita’ tuh )
salam Tun,
Yes you are right Jo,Tun saja betul.It is a proven fact bukan omong2 kosong.
Although you tried to sound cynical you are not good at it.
Org2 yg dulu kata “Dr. Mahathir’s knowledge of economics can fit the back of a stamp” sekarang kena telan ludah masing2.
The world is learning from Tun whether they like it or not.
Wassallam
Jeng3
This basic knowledge seems to be lost on our current gov.
The latest budget is a joke if you read the fine print.
Its just a matter of time before the ringgit gets whacked.
So I’m converting my savings in gold and mutual funds.
The US printing money like nobodies business, China devaluing their money on purpose and recently they raise the interest rate.
The telltale signs of global economic downturn and currency war following suit is getting ominous.
EU ie. Germany saved Greece from bankcruptcy. Now the former is saying that the mere 4 million immigrants are not integrated and do not speak the language. Put down Turkey first before visiting it – a scapegoat to blame.
France evicted the Romas back to their countries Romania and Bulgaria. They are gypsies numbering a few thousands, historically the blacksheep of Europe as they like to label them are blamed for the troubles in a country which was once the pinnacle of global power! It has become more racist than Germany. France is burning. The gypsy thing is a diversional scapegoat.
US wants to force China and the whole world to its knees to meet their unsatiable demands. The foreclosures, trillions of debt, unlimited dollar creation, many warfronts, defender of genocide (by Israel), foreign policy hypocrisy … are beyond sustainability for peace on mother earth. The tide of backlash is on them for the abuse of power on humanity. To regain their past glory they must declare war before total collapse of its currency. The scapegoat on Islam and Muslims is not enough.
The leaders of the country are solely to be blamed if they do not heed the global warnings and those by Tun to take proper steps to avoid falling into economic turmoil. At this juncture “bukan rakyat diutamakan tetapi pencapaian pemimpin”.
Salam YAB Tun.
I have been following your blog for a number of years now. It never ceased to amaze me how you seem to be able to grasp a particularly complex issue and present it in a more simplistic way, that is easily digestible to the average person on the street.
Of course a currency war is not simple and the outcome is far from certain, Martin Wolf’s over confidence notwithstanding. What Malaysia’s top fiscal policy makers need to do is formulate a policy where we are not going to lose out totally to the US “defacto” manipulation of their exchange rates via printing of money and other policy instruments, and neither will we lose out to China(in terms of trade being much less competitive) if our currency became much stronger vs the US Dollar but much weaker against the Chinese Yuan.
But hang on! For the past few years, I thought we had a good system going whereby our Ringgit is pegged to a “basket of currencies”? The exact composition known only to the highest people in Government and at Bank Negara. But I assumed it is related by some degree to the balance of trade that we do with each of our major trading partners and their currencies. If the US Dollar goes down, our Ringgit do not necessarily have to go up by the same amount as we are also tied to the Yuan, and other currencies. So why change something that works well?
I am committed into venturing into several large scale marine fish farms that will import raw materials from overseas in US Dollars and sells fish to China in Yuan. The worst outcome of the currency war for me would be if our Ringgit appreciated hugely against the US Dollar and depreciated by a large percentage against the Yuan. That would increase my cost of raw materials and decrease my future income. The double whammy could render my fish farms financially unviable before I even start.
Salam Tun yg di hormati,
1. “Currency war” dengar nya macam hebat, tapi rupanya cuma nak kan matawang negara masing-masing rendah supaya export barang tidak terjejas.
2. Jepun , China, Brazil semua nya pening bila matawang mereka naik berbanding US dollar, manakala, Malaysia dengan hebat gembira bila Ringgit naik, samada konfiden atau tak tau langsung apa berlaku di seluruh dunia.
3. IMF, Euro dan UK marah benar bila US mengenalkan polisi “quantitative easing” atau “printing money”. Kata nya polisi yang tak betul. Mereka mahukan polisi ikat perut, supaya deficit berkurangan. Tu yg berlaku protest di seluruh Perancis. Pening kepala Sharkozky di buat nya.
4. Martin Serigala memang la kata US tak betul, sebab polisi yg US gunapakai tak ikut UK. Dasar British kepala besar. Pelik cam mana Tun boleh terikut kata nya.
5. Sepatutnya Tun rasa bangga, selepas sepuluh tahun akhirnya US ikut polisi yang Tun guna masa krisis kewangan 1997-2000. Soros pun memang mahukan seluruh dunia terutama Euro kut polisi ini “berbelanja besar”.
6. Cuma rasa nya pembangkang masih nak ikut IMF, semua orang kena ikat perut, mega projek tak boleh, tapi “welfare” kena banyak.
SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T.
1) DENGAN IZIN MOHON TUN BENARKAN RIMBA EMAS INGIN MENGUTARAKAN SATU ISU YANG PADA PENDAPAT RIMBA EMAS PENTING UNTUK KESEJAHTERAAN KITA BERSAMA IAITU SOAL ” AIR “.
2) TIDAK KIRALAH BERAPA KAYA SESEORANG ITU BOLEH MEMBAYAR ATAU SEMISKIN MANA TIDAK MAMPU MEMBAYAR PADA RIMBA EMAS AIR YANG BERASAL DARI PUNCA ALAM SEPERTI SUNGAI , LAUT PERLULAH DI AKTAKAN IAITU TIDAK BOLEH DINIAGAKAN SESUKA HATI.
3) KITA TIDAK MAHU IA AKAN DIDAGANGKAN , KALAU SESUATU INSTITUSI KERAJAAN ATAU PERBADANAN DISWASTAKAN YANG INGIN BERNIAGA PADA KADAR YANG TIDAK TETAP (HARGA ASAL TAHUN 70 AN) HARUSLAH BERUNDUR ATAU USAHAKAN SEPERTI NEGARA SINGAPURA IAITU MEMBELI PUNCA AIR DARI NEGARA LAIN.
4) SETIAP KITA RAKYAT MALAYSIA SEPATUTNYA MEMPUNYAI SIFAT MENYELAMAT NYAWA MANUSIA DENGAN MEMASTIKAN AIR ITU BERSIH , SELAMAT DAN MURAH TERUTAMANYA AIR YANG DIBEKAL KEPADA RAKYAT AWAM YANG PERLU PULA MENGELUARKAN KOS UNTUK MEMASAK.
5) PEMURAHNYA ALLAH S.W.T MEMBERI AIR SECARA PERCUMA JUGA MEMERLUKAN MANUSIA YANG DITUGASKAN MENANAM SIFAT PEMURAH ITU DALAM MENCARI FORMULA MENYELESAIKAN MASAALAH.
6) DIKATAKAN MASAALAH SEKARANG HARGA BAHAN UNTUK BENDASING YANG DICAMPUR TELAH NAIK. MAKA MENJADI TANGGUNG JAWAB KITA SEMUA DENGAN AKTA YANG ADA MEMASTIKAN HANYA PEMBEKAL YANG SANGGUP DENGAN HARGA LAMA SAHAJA DIBENARKAN MENDAPAT KONTRAK INI. INI LAH PELUANG KEPADA SYARIKAT LAIN (PENGUSAHA BARU DIUJUDKAN-PENGUSAHA YANG MEMPUNYAI SIFAT PEMURAH)
7) KITA PERLUKAN PENDAPAT ATAU PAKAR-PAKAR YANG DAPAT MENYELESAIKAN MASSALAH DAN MEMPUNYAI SIFAT PEMURAH INI. BUKAN PADA KELULUSAN YANG DIA ADA SAHAJA.
8) KENAPA ? TELAH TERBUKTI KEBANYAKAN PEKAR-PAKAR YANG MATA DUITAN SELALUNYA DAPAT KITA FAHAM DARI PENDAPAT YANG DIUTARAKAN. ADA YANG MENYALAHKAN KITA SUKA MEMBAZIR.
9) RIMBA EMAS SENTIASA BERJIMAT SETIAP BULAN AGAR HANYA RM 36 SAHAJA UNTUK DUA BULAN. TIBA-TIBA BULAN INI TERPAKSA MEMBAYAR RM 42 IAITU KENAIKAN OLEH KADAR YANG DIKENAKAN. LAGI PUN YANG MEMBAZIR TELAH PUN DIDENDAKAN DENGAN BAYARAN YANG DIKENAKAN BUKAN PERCUMA.
10) BUKAN ATAS DASAR PILIHAN PARTI POLITIK (MEMIHAK PARTI TERTENTU) TAPI KITA RAKYAT PERLU INGAT PARTI YANG DAPAT MEMIKIRKAN KEBAIKAN PADA RAKYAT DENGAN PEMURAHNYA MERINGANKAN BEBAN SEPATUTNYA KITA PILIH. KITA TOLAK PARTI DAHULU SEBAB DI JANJIKAN KEPADA KITA. OLEH ITU KITA TIDAK HARAP JANJI LAGI SESIAPA YANG DAPAT MENGUBAHNYA SEKARANG PATUTLAH SESEORANG DI ANGGAP TELAH MENUNAIKAN JANJI ITU.
11) RAKYAT YANG RAMAI INI TIDAK SEMESTINYA DITIPU OLEH PARTI-PARTI POLITIK IKHTIARKAN CARA SATU RESOLUSI MENDAPATKAN AKTA BAGI PIHAK RAKYAT BERAMAI INI DARI MENUNGGU JANJI SELEPAS PILIHAN RAYA.KITA TAHU SIAPA YANG DAPAT MENGEMBALIKAN KEHARGA ASAL SEKARANG ITULAH PARTI YANG IKHLAS.
12) KALAU TIDAK DAPAT MENGUBAH NAMPAK KITA INI TIDAK BERKUASA HANYA DIGUNA UNTUK MEMILIH UNTUK SESEORANG ITU MENGIKUT KEHENDAK FIKIRANNYA.
13) SEMUA INI ANGGAPLAH SATU RAYUAN RIMBA EMAS KEPADA PENDUDUK BERBANGSA MELAYU , CINA DAN INDIA. KALAU KAUM ANDA MAKSIMUM DI KAWASAN ITU YANG PRIHATIN AKAN ISU ‘AIR’ INI BOLEH MENGUBAH SINARIO POLITIK YANG BERPAKSIKAN (MEMILIH BANGSA SENDIRI SAHAJA) KAUM.
WALLAHU’ALAM
Dearest Tun
1-Tough topic.But comment I must.Hmm???…Yup!!!! sudah mari..
2-Uncle Sam will desperately think up ways to strengthen its economy esp in trying to push China to reevaluate the renminbi..and the USD is the only weapons it could use.This is its elixir.But it could turn out to be its poison.
3.In their eagerness to contain the Dragon that seemed unstoppable since her awakening from her slumber,the USA may now be engaging in an affair that would only lead to her ultimate destruction.They scheme and they plan not knowing another party is also scheming and planning..are they sure that they are the best of planners?
3-All former great civilizations were ended not really by external forces but from forces within….now is this currency war that platform and is now time for that much debated collapse of the USD to manifest?Is Unc Sam ready to face the moments of reckoning?
4-Whatever is the outcome,holdings of USD in our reserves should be for what is necessary only and Gold make up if possible,should be at the maximum as this is also the time to be making money.
5-A big problem is also a huge opportunity.When this fiat money system eventually collapse the value of Gold is going to be worth GOLD!Those having trillions of USD is only holding billion pieces of toilet paper.
6-This currency war may be bigger than we think.Take cover.May God bless us all!!!
Thanks Tun.
Tun, it is very unfortunate that Malaysians today are not financially savvy as the elders use to be. The elder generations prefers hard assets and conventional investment instruments, in comparison to the younger generations. Globalization has opened the used to be conservative investors to newer and more exciting instruments, not forgetting the vanities that comes with it. Values are no longer of importance, but bank balances and style comes into priority.
Malaysia has taken an active role in developing Islamic Finance, but the way I see it, it has taken a slight deviation from the original concept of Islamic Finance and Banking. In the focus of creating exciting new Islamic derivatives, Malaysians loose focus on core fundamentals of finance… Enhancing and managing existing and new assets.
Tun, you were spot on when you tried to introduce the Gold Dinar, an alternative currency with sound underlying instrument. Somehow or rather, certain sects from the people of the book protests in silence over your actions. I personally don’t know where Malaysia is heading financially. We are too dependent on foreign financial experts, whereas there are better experts right here in Malaysia. The new Prime Minister Dato’ Seri Najib professes in his speech recently on the need for moderation. Yes, its true that moderation is the core essence of Islam but at the same time, its due to the extremist that moderation gets its way..
I know its a cliche’ for me to say that I missed your term of office and how you run the country. Economically and emotionally, we were stable back then. Now, with the new PM’s initiative to seek public opinions before implementing policies, I see a red flag. This simply shows that the leadership of the country can be negotiated and there is a lack of strategic leadership back-boning the country.
With that in mind, if I’m an investor, it would be a clear signal for me NOT to invest in Malaysia. Current investments are sentiment based, i.e. in-flow of funds from the Arab countries (OIC). Malaysia is boasting potential investment flows from Islamic nations, thus creating a biased economic balance. Yes, we’re trying to promote Islamic Finance here, but the fundamental of Islamic Finance available here are entirely correct.
Nevertheless, I sincerely hope and pray that the leaders of Malaysia today is able to realize these facts and come awake before everything is too late.
Anyways, Langkawi is a great place to chill and relax. Probably a good platform to establish a true Islamic Off-Shore Center??
Tun, the local media should inform us the real situation. Do they know the real situation? Do they care? Whatever…
Take care Tun. Please feed us more info like this. Thank you.
Salam Tun & fellow bloggers,
Sometime I smile myself with admiration to see that Tun being a medical doctor can understand the economy better than the so-called expert in economics. Tun also understand engineering better than the engineers themselves. That make you, TUN as the exceptional leaders of our nation of our time. How can that be? In my view you have a strong vision through having strong quality of mindfulness, always looking at the forest leaving the specialists to attend to the trees, having a bird’s eye view of the situation to arrive at better decisions than people at the ground will not have the advantage and with the power being the CEO of the country, you will be able to successfully implement program you initiated. That make the difference. You decisive actions more often slammed by those who have low leadership quality as dictatorship or abuse of power.
Now you raise again the Currency issue, ( everybody should by now accept readily your view with more respect based on the way you handle the last Asian financial crisis – just imagine MAHATHIR vs THE WORLD).
I fully understand what you are saying ( eventhough I am only an engineer ) and I wonder whether your views above will be noted by our current leadership. I am worried because there is a tendency for the current leadership to easily and willingly comply to the world views/standard rather than thinking what is good for the country, first.
May Allah bless us all.
Tun, you have described the US dollar correctly, to wit toilet paper. Am in total agreement with your views. Syabas
Good afternoon Ayahanda Tun,
Your point:
10. As I said in a previous article, the daily trade in currency amounts to 4 trillion dollars. Are we going to contribute to that trade?
Common sense:
I. If the 4 trillion dollars are contributed to trade including services base on real and anticipated demand and supply, then no currency war will be encouraged in the whole country.
II. However, if the 4 trillions dollars are used to build projects that are not viable, for example; recently, MCA party Vice President, DS Kong Chor Ha as the minister for MOT may encourage currency war if his ministry insists to build the undersea tunnel in Singapore Straight to connect Singapore.
III. Therefore, in order to prevent unnecessary currency war that may affect many businesses in Malaysia, it would be better off if the Federal Government gets the approval from relevant authorities first.
IV. When the sovereignty of a particular country is being harassed or terrorized, then currency war will be encouraged.
V. The latest case of the tension and conflicts in
TDM
You may be right in some ways but totally wrong in others.
First, yes there is a currency war going on…but it is between the US, China, UK, Germany, Switzerland & Japan.
The culprit is actually China which holds about 60% of its reserves in US dollars. Imagine the 2nd largest economy of the world holding that much in the US & all these were the result of trading surplus against the US when China opened its doors for development in the early 1980s.
With this large sum held & with the US trying to force upon China to revalue its yuan, of course China is resisting for any appreciation of the yuan would hurt Chinese exports.
So the Chinese, being smart sold down a large sum of US dollars & moved these reserves by purchasing the Euro & the Yen; forcing the Yen & Euro to appreciate & directly giving the added advantage the Chinese exporters have over their European & Japanese counterparts. Thus it also affects our reserves held in US dollars since we do have many years of surplus trade. It is who is mightier sort of game & Malaysia is caught in the middle…the saying goes “gajah sama gajah lawan, Malaysia mati di-tengah-tengah”.
Malaysia is different from China & even the US dared not antagonize China for the fact that China now had grown so economically & militarily powerful that no nation would want to offend China. This is sole due to the fact that China has its own domestic market…one that is self-reliant to sustain economic growth which no other country except India can do so & boastfully ignore what others had to say. Because of this depreciating US dollar value, the Ringgit appreciated. Let us not be fooled by the BN government that our Ringgit appreciation is due to a better-managed economy.
We are not…just look at the debts our nation is carrying. There has been many years our budget was in deficit-management. there has been no sincere will to narrow the deficit budget gaps that we had long been accustomed; all culminating from TDM’s days.
In the context of what TDM had said that many countries are controlling their currencies, it is absolutely nonsense. Nobody, including the national banks of China, Japan, England or the Fed can do so. This is where TDM is totally wrong about currency trade. He should jolly well know what happened to Malaysia when the Ringgit was attacked in 1998. Nor Mohd Yacop know even better that this staement is true…ie nobody can control or manipulate world currency. Malaysia’s Bank Negara lost so much of it that today we Malaysians still suffers as the narrowed-understanding people in Bank Negara & MOF know nuts about managing currencies.
It is a USD4 trillion daily transaction business that makes forex a boon or a bane to many; countries, hedge funds, banks & individuals alike & definitely out of their reach to “control”.
I suggest, with TDM’s article here, the Malaysian government would not go on to another ill-advised spree of dabbling in the oxymoronic
forex market; lest we will be burnt again. Japan lost so much recently trying to prop up its Yen from going too strong. But, the Japanese have deep pockets that malaysia doesn’t have & can’t afford.
Happy reading
Assalamualaikum Tun.
Are we doing well?
the answer is no.We are doing well because of PERKASA.Which i didnot noted in any my previous comments.
sorry takde kena mengena dgn currency war
terima kasih tun
By your argument, Malaysia should resort to barter trade. Period.
SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T.
1) JAWAPANNYA YA , NILAI WANG SIMPANAN KITA SEMESTINYA BERKURANGAN JIKA KADARNYA PADA ‘US DOLLARS’.
2) HARAP PENGAWAL EKONOMI (BANK NEGARA MALAYSIA)-ATAU PENASIHAT SEKARANG PERLU MEMBERI ALASAN ATAU JAWAPAN ATAS PERSOALAN YANG TUN PERSOALKAN.
3) BANYAK NEGARA LAIN SUDAH MENCONTOHI KITA MENGAWAL MATA WANG SEBAGAIMANA KITA MENGHADAPI KRISIS MATA WANG DAHULU. JAWABLAH !? ADAKAH MEREKA HENDAK BUAT CARA LAIN ? INGAT RAKYAT SEJAK AKHIR-AKHIR INI SUDAH MEMPERSOAL SEGALA KERUGIAN SESETENGAH BADAN KERAJAAN ATAU SWASTA SEPERTI ‘SIME DARBY’ .
4) ADA PAKAR-PAKAR YANG MEMPERTAHANKAN KERUGIAN ITU DENGAN MEMBALAS BALIK TIDAK PERLU RISAU SEBAB WANG RIZAB KITA KINI BERLEBIHAN.
5) KITA TIDAK MAHU PAKAR-PAKAR YANG MENJAGA KAPITALIS-KAPITALIS SAHAJA SEPERTI SESETENGAH NEGARA LAIN. TUN KERANA NILA SETITIK HABIS SUSU SEBELANGA IBARAT INI SAMALAH KEADAAN YANG DIHADAPI TUN SEKARANG.
6) RAMAI YANG MENYEBELAHI PEMBANGKANG MENILAI TUN SEBAGAI KAPITALIS SEDANGKAN TUN BOLEH MEMPERSOAL BALIK TINDAKAN SEPERTI MATAWANG INI, TETAPI SEBENARNYA IBARAT SETITIK SUSU MEWAKILI TUN BERBILLION TITIK SUSU (BERKERJA DIBAWAH TUN) MEMBENARKAN SETITIK NILA (KUASA ASING)TERKEPUNG DALAM KUASA KAPITALIS MEREKA (SECARA KIASAN).
7) JADI UNDANG-UNDANG DARI YANG MENCIPTAKAN DUNIA INI DAN MANUSIA YANG DIDALAMNYALAH YANG PATUT KITA IKUTI SUPAYA LEBIH ADIL DAN BERSIFAT BERKECUALI YANG DAPAT MEMBACA RAHSIA HATI MANUSIA INI.
WALLAHU’ALAM
Salam Tun,
Well it’s like the durian and the cucumber, sadly we are the cucumber. But if the US wants to print more money as they like, let them. For as long as the world still demand US Dollars, what reserves we have in USD is still in demand, and for as long there is demand we should be okay, is supposed.
May I say something about Bajet 2011 which Najib said is based on input he received from the rakyat. I just like to know who are the rakyat that requested the Warisan Merdeka? And did the rakyat requested the Permata program? to spend RM111M on the selected few is bit too much. To build new schools for them? They are rows of unoccupied shop lots available all over Malaysia.
Ahmad Husni Hanadzlah said we are facing financial strain. Well RM5B and RM111M to build these are certainly adding to the strain.
Tun, if you could comment on the Budget 2011 here, then we all can participate in the discussion here.
Thanks
Dear Tun,
We think that when our currency strengthens it must be because our economy is strong. Therefore we are doing well. But are we doing well?
And because our economy is strong, therefore there are mega projects. Interestingly these so-called mega projects “by private sector not Government” were mentioned in Government’s Budget 2011. What has government’s budget (i.e. taxpayer money) got to do with projects invested by private sector?
Anyways, opportunity for some to “jholowed” here? Read more for the definition of “jholowed”, “UMNO”, “PAS”, “PKR” etc here:-
KaBel In My Mind
senyum-senyum sikit, it’s good for our health..!! hehehe..
Salam sejahtera Tun dan Keluarga.
Dear Tun,
The US can be considered a “pariah” country or a “failed state”. They are on the brink of bankruptcy. Make no mistake about it. In fact, technically they are already a bankrupt country just like Greece. Almost half of their working class people are now jobless and homeless and now take shelter inside the baseball stadiums. Their homes are being auctioned by the banks for not being able to settle their monthly instalment.
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 20 Oct 2010 at 01:26:14 AM GMT is:
US$ 13,673,669,394,983.91
The estimated population of the United States is 309,324,732
so each citizen’s share of this debt is $44,204.90.
The National Debt has continued to increase an average of
$4.18 billion per day since September 28, 2007!
So now the U S economy is in a state of turmoil. They can even produce anything that can generate wealth for their citizen except producing weapons of mass destruction to kill peoples of other countries. That is what they are good at other than being expert in manipulating their dollars to con the rest of the world including Malaysia. They are making others SUCKERS!!!
Tun,
To me, in order for President Obama to stay in power, he has agreed on some critical matters, especially on the Middle East issues.
With such “agreement”, someone has helped Obama look good by manipulating the US Stock Market, as DJ Index has lately been “pushed” back up gain, to a 11,000 level.
Lately, someone has also been manupulating the currency market, in order to counter “China Market dominance”.
As I read late yesterday. “Surprise! China hikes interest rates”.
To me, this is no surprice. China is simply STRIKING back.
It will be a tough fight, as US will try and do all kind of “things”, including arm-twisting measures, in order to stay number one.
But, I think US will somehow be the winner on this “financial war”.
Well, it is up to readers to think if the above is a “conspiracy theory”.
Regards,
http://www.leading.com.my
786
Alhamdulillah
Selawat ke atas Nabi Muhammad S.A.W.
RAHSIA KRIS RIMAU
Greenpeace Ayahanda Tun et al,
Hypothetically:
Roll-over-programmes (ROP) = Bank Guarantee (BG) Pyramids = AMLA Hot Money
Potentially explains:
China wondering whether USA is “printing” money.
Potential Adverse Results:
End-borrower defaults, the whole pyramid falls down, financial crisis.
Potential Solutions:
Immediate – peg exchange rate to currencies of major trading partners.
Short-Term – Stop borrowing and trading in USD.
Medium-Term – Review ICC’s MT760 and MT799.
Issues to Ponder Further:
Which currency to use for trade?
Which currency is suffering the most from USD “devaluation”?
Revert when free, InsyAllah (have a deadline in 7 days!).
All ideas/inspirations from God, all errors mine the human, no offence intended to anyone, apologise for any inconvenience caused.
Salaam (greenpeace).
When the ringgit falls, it’s the “penyangak matawang”. Ada saja lah dan semuanya tak betul. TDM saja betul… Tak pernah salah.