Najib (economist my ass!) finance minister asserted that EPF Valuecap loan is guaranteed by government! Yeah, great aint it? What a load of bollocks. He is talking cock again. The government has no moral right to guarantee the loan. The government itself lost it legitimacy to govern when it won the March 08 election via fraudulent means.
When the government lost its credibility, whatever they say is doubtful and always, and I repeat, always have ulterior motives and full of deceptions. The government will definitely guarantee the loan and when the time comes for Valuecap to pay the loan, time extension is given and then a further deliberation and additional roam and finally when all else fail, they will resort again to reaching into the same coffer and then other alternative coffers. This is the issue. Modus operandi is same and very predictable. It is the people again and again been taken for a ride.
The country is broke and these idiots are still running around looting again! What do we do? We are sitting on our butt watching the world go by and wonder why such a misfortune befalls us! What a sorry lot! It was this slightly over 40% of the population that voted these morons to get to rule us that get us into this mess. We must drum this fact into these 40% or so sleepy lot to wake up and see what is happening around them. Their own livelihood is at such a great risk and they are still dreaming of a white Christmas.
We have been saying that the budget needs a review. This “British-trained” economist is saying that it is not necessary to do so. He went to table RM7 Billion stimulus package to boost the economy. A budget will address income and if there is no bloody income, how on earth is he going to pay for all these sweet goodies? If an earlier budget was a deficit, read carefully, expenses is more than income and now almost half of the so called revenue is going to come from “oil revenue” that has dropped from almost USD100 to slightly above USD50 per barrel!
Let us see the goodies promised. Aha… our EPF contribution! He is assuming that he is going to get a boost from a-50% takers for a reduction of EPF contribution, giving him RM2.4 Billion. This additional income from the 3% reduction in EPF contribution will get you and me to spend it and hence we live happily ever after when collective additional RM2.4 Billion is circulating in the economy. This is coming from our pockets, not his bloody bank.
Then there is RM1.2 Billion “allocation” to construct affordable houses. This will definitely get screwed up by the cronies. They will get the projects, houses not completed and the cronies will have overseas vacations or most likely get villas in the South of France or both! We will be back to square one.
Next is the magic RM7 Billion figure coming from savings due to reduction in subsidy of petrol price! This is the mother of all bulls. The UMNO lots are going to have a real feast with this RM7 Billion. Shoddy roads will be built and newly repaired ceiling for schools and public buildings will collapse. Bridges will get washed away and public amenities get screwed up. Hail this greatest economist (my ass!) ever roamed the earth! Problems are opportunities in disguise. They will continue to skin us alive.
Goodnight Malaysia, just go wherever you bloody like to go.
Showing posts with label Malaysian Economy. Show all posts
Showing posts with label Malaysian Economy. Show all posts
Tuesday, 4 November 2008
Monday, 3 November 2008
a sure thing?
Is there such thing as “a sure thing” I watched a movie way back 1985 titled as such. It was about a college kid who worshipped and longed to bed a girl of his dream. Throughout the movie he went on chasing this dream. At the end of it, he had the girl on the palm of his hand only consciously choosing not to bonk her instead. To digress a little, it had this George Benson’s (who?) song that had a line about the singer doing his best but his best was not good enough. A lovesick friend crooned this song his entire six months abroad idolising a girl he chased, only to lose her to another friend (He will cringe if he reads this piece!).
Back to current topic, Malaysia’s move to prop up the share market with an RM5 Billion “loan” from EPF was a stupid move and a futile effort. Opposition leader’s quip that 90% of that fund would swiftly flow out of the country was a sarcastic remark but nevertheless spot on. The fact that the first (economist my ass!) finance minister came up with this answer to the so called impending economic woes due to credit crunch in itself is beyond comprehension. He must have got his priority upside down and topsy-turvy. Not to mention that the British would curse like hell if he is bent on claiming he is a graduate economist from their prestigious university.
Valuecap Sdn Bhd saw the opportunity in the wake of the credit crunch, to kill two birds with one stone. These daylight robbers are getting out of dilemma of paying old loan by borrowing another almost an equal amount under the pretext of saving the nation from stock market loss as a result of capital flight. The old loan was in the first place obtained via issuance of bonds that are not able to be transacted or traded. EPF and other suckers were duped into buying these valueless bonds and continue to hold onto them and watching in vain as the papers transmogrify into junks quicker than the eyes can see.
Is Valuecap trying to redeem old bonds with this new loan? Or are they are using this loan for another (mis)adventure? Whichever way it goes, you and I are made fools in this game of political satire and comics in this social quagmire. Our hard earned monies are being thrown to the wind while these idiots continue to rule the country as they please.
Where are those champions of transparency and good governance and corruptions’ chief whip? He must have been wallowing in his massive collections both in cash and kind.
So the moral of the story in the opening paragraph above is that there is no such thing as a sure thing. But figuratively speaking, one thing for sure, all the money thrown in would go down the drain. The drain flows downstream to a collection point disguised as thrash-trap that hauls in freshly minted notes. One man’s loss is another man’s gain. The general public continues the rat race. It surely is a dog-eats-dog in this rat race. And as the late Freddy Mercury’s put it so accurately, it leaves you bleeding lying flat on your face.
And once again, goodnight Malaysia, wherever you may be and wherever you may wish to go.
Back to current topic, Malaysia’s move to prop up the share market with an RM5 Billion “loan” from EPF was a stupid move and a futile effort. Opposition leader’s quip that 90% of that fund would swiftly flow out of the country was a sarcastic remark but nevertheless spot on. The fact that the first (economist my ass!) finance minister came up with this answer to the so called impending economic woes due to credit crunch in itself is beyond comprehension. He must have got his priority upside down and topsy-turvy. Not to mention that the British would curse like hell if he is bent on claiming he is a graduate economist from their prestigious university.
Valuecap Sdn Bhd saw the opportunity in the wake of the credit crunch, to kill two birds with one stone. These daylight robbers are getting out of dilemma of paying old loan by borrowing another almost an equal amount under the pretext of saving the nation from stock market loss as a result of capital flight. The old loan was in the first place obtained via issuance of bonds that are not able to be transacted or traded. EPF and other suckers were duped into buying these valueless bonds and continue to hold onto them and watching in vain as the papers transmogrify into junks quicker than the eyes can see.
Is Valuecap trying to redeem old bonds with this new loan? Or are they are using this loan for another (mis)adventure? Whichever way it goes, you and I are made fools in this game of political satire and comics in this social quagmire. Our hard earned monies are being thrown to the wind while these idiots continue to rule the country as they please.
Where are those champions of transparency and good governance and corruptions’ chief whip? He must have been wallowing in his massive collections both in cash and kind.
So the moral of the story in the opening paragraph above is that there is no such thing as a sure thing. But figuratively speaking, one thing for sure, all the money thrown in would go down the drain. The drain flows downstream to a collection point disguised as thrash-trap that hauls in freshly minted notes. One man’s loss is another man’s gain. The general public continues the rat race. It surely is a dog-eats-dog in this rat race. And as the late Freddy Mercury’s put it so accurately, it leaves you bleeding lying flat on your face.
And once again, goodnight Malaysia, wherever you may be and wherever you may wish to go.
Thursday, 23 October 2008
bracing for difficult times ahead of us
It is going to be a grim outlook indeed. The American credit crunch as it is called is contagious. The fault lines apparently pass through Europe and are heading towards our shore. That is what the economists are saying. Our number one economist aka Najib Razak and his bunch of merry-men of lawmakers turned lawbreakers are saying otherwise. Malaysia’s economy is as solid as a rock. Funny though, secretly they are ransacking treasury for some leftover dough.
Will it hit us hard? Well, the extent depends very much on how fast we can instil measures to lessen the impact. If our response is fast enough, we may not have to resort to putting in money into the vacuum created by defective financial system of the IMF the world subscribed to.
Financial institutions’ penchants for creating innovative products that has subjective values and widely distribute them further increase their risks. As these products are not inside the balance sheet of the financial institutions, we are not able to detect them. We do not know who is badly exposed and by how much and who is credit-worthy and who is not. The flow of funds between banks stop as money market respond by freezing credits. Financial system becomes totally without credibility. People will chose to hold onto their money instead of dealing with banks. Governments scramble to guarantee savings to prevent massive withdrawal.
A new system has to be founded and that would mean a total reconstruction of existing financial system. Not an easy feat to achieve.
Already we are seeing prices of commodities, steels and other raw materials and oil come spiralling down. Cost of manufactured goods would be lower but demand falls a lot faster and hence recession sets in.
When we, a general public are grappling with these complex issues, we will be at a loss and require a caring, competent and responsible government to see us through these difficult times. But in our case, when our pilot and co-pilot are engaged in a power struggle, the country is running on auto-pilot en-route Bora-Bora, a sunny carefree holiday destination.
We are seeing a panic move by the finance minister and proposed for a propping up of the share market with a view of saving a few companies. This is a classic piecemeal solution that is devoid of aggregate effort and highly likely to be flawed.
Let us for God’s sake forget our differences and sit down together on a discussion table to finding solutions to these conundrums. We have to get passed this self-denial and look again at our budget and the country’s financial planning. A revisit is crucial in response to an already changing circumstance and new playing field. We must act fast enough and brace ourselves for an arduous spell ahead of us. We are indeed living in the most challenging period. This global village is small enough and Uncle Sam sneezes, we catch cold and if not attended to we will die of high fever.
Good night and good luck Malaysia, wherever you are.
troubadour
Will it hit us hard? Well, the extent depends very much on how fast we can instil measures to lessen the impact. If our response is fast enough, we may not have to resort to putting in money into the vacuum created by defective financial system of the IMF the world subscribed to.
Financial institutions’ penchants for creating innovative products that has subjective values and widely distribute them further increase their risks. As these products are not inside the balance sheet of the financial institutions, we are not able to detect them. We do not know who is badly exposed and by how much and who is credit-worthy and who is not. The flow of funds between banks stop as money market respond by freezing credits. Financial system becomes totally without credibility. People will chose to hold onto their money instead of dealing with banks. Governments scramble to guarantee savings to prevent massive withdrawal.
A new system has to be founded and that would mean a total reconstruction of existing financial system. Not an easy feat to achieve.
Already we are seeing prices of commodities, steels and other raw materials and oil come spiralling down. Cost of manufactured goods would be lower but demand falls a lot faster and hence recession sets in.
When we, a general public are grappling with these complex issues, we will be at a loss and require a caring, competent and responsible government to see us through these difficult times. But in our case, when our pilot and co-pilot are engaged in a power struggle, the country is running on auto-pilot en-route Bora-Bora, a sunny carefree holiday destination.
We are seeing a panic move by the finance minister and proposed for a propping up of the share market with a view of saving a few companies. This is a classic piecemeal solution that is devoid of aggregate effort and highly likely to be flawed.
Let us for God’s sake forget our differences and sit down together on a discussion table to finding solutions to these conundrums. We have to get passed this self-denial and look again at our budget and the country’s financial planning. A revisit is crucial in response to an already changing circumstance and new playing field. We must act fast enough and brace ourselves for an arduous spell ahead of us. We are indeed living in the most challenging period. This global village is small enough and Uncle Sam sneezes, we catch cold and if not attended to we will die of high fever.
Good night and good luck Malaysia, wherever you are.
troubadour
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