Wednesday, October 17, 2012

Mechanics of US Federal Reserve Quantitative Easing as financial warfare

http://www.todayonline.com/Business/EDC121012-0000075/MAS-to-maintain-monetary-policy

MAS to maintain monetary policy
Updated 08:45 AM Oct 12, 2012

SINGAPORE - The Monetary Authority of Singapore (MAS) unexpectedly kept monetary policy on hold this morning, saying it will continue letting the Singapore dollar appreciate at its current pace as inflation remained a worry.


Insights share by EDMW forum member, sleepyhealer how a strengthening SGD will dampened exports, leading to contraction in the economy

http://forums.hardwarezone.com.sg/70750096-post31.html

Singapore government not thinking.

By allowing the currency to continue to appreciate, it means that our export will be more expensive than before while our import will be cheaper. We are net exporter in nature not net importer. So when it means that it is more expensive, other people will source for cheaper alternatives. This drives down the demand for growth for the companies.

When the demand for the export drops, net profit after tax dropped and it means that in order to retain the same profit, the companies either have to bank on the fact that they will retain the same demand now as they raise price or cut cost. When they cut cost, labour cost will be one of those that they seek to be cutting as it should made up the main bulk of the flexible cost component. They could also be cutting their supply import as they foresee a slower demand on their goods.

When it happens, it will further drop in demand as the domestic will not likely to demand for more given that more consumers are jobless or had a reduced income or companies reduced their demand of raw materials.

Also that when no one want export, you will find your currency facing depreciation as you now have abundance supply of money. You will likely to reduce the money supply to keep up with the appreciation policies.

When money supply shrink, interest will go up when business borrow money. (Opportunity cost) which result in higher expenses due to higher finance interest.

Those that is on margin financing will find themselves having to top up additional assets to continue their funding limit. I think call pledged assets or something cannot remember.

Eventually some companies will go bust as a result and the whole thing will spiral out of control.

Sunday, October 7, 2012

Mindshare, a global media and marketing services company, conducted an anonymous survey involving over 2000 respondents early this year to find out about Singaporeans’ confidence in the future of Singapore.

The results have not been too optimistic:

http://www.tremeritus.com/2012/10/07/the-real-national-conversation/

In the survey:




• 65% said they don’t think they will be able to retire comfortably in Singapore
Most Singaporeans have less than minimum sum in CPF on retirement – HSBC survey

• 72% feel that the medical costs are getting too high
Singapore govt only pays US$825 out of the average US$2,273 (i.e, 36.3%) health spending per person, making it the most stingy govt among the first world economies. Hence, Singapore’s private spending on healthcare as a percentage of total health spending is the highest among the first world economies at 63.7% (‘PM: Raise individual’s Medisave contributions to cope with healthcare costs‘).

• 73% think that public housing prices are getting out of control
The HDB Resale Price Index (RPI) rose two percent to a new record high of 197.9, according to HDB’s flash estimates for the 3Q of 2012 (‘HDB resale prices hit all-time high‘).

• 75% said they should not be spending their entire working life paying off their housing loans
E.g. if a couple take a 35 year loan at 30 years old, they will only be able to pay off their mortgage right at retirement age of 65, thereby working their entire life to pay off their housing loan.

• 62% believe that Singapore leaders are paid too much these days
It’s not just our political leaders are the most highly paid in the world even after their so-called ‘pay cuts’ following GE 2011, our civil servants are also paid very highly. For example, the salary of the ex-permanent secretary in the French cooking saga is more than the U.S. President Obama’s (‘Perm Sec who went to France to learn cooking retires as millionaire‘).

• 69% think too many foreign workers are taking up job opportunities in Singapore today
To make things worse, some of the foreign managers are currently hiring their own kinds, directly discriminating Singaporeans.

• 73% said Singaporeans should be granted priority in employment
Singaporeans in Singapore today are not granted any priority in employment. It is very possible for a company in Singapore to employ 100% foreigners to work in the company since there is no quota limit for employment pass holders.
In other countries, they have labour laws to protect their citizens and put the interest of their citizens first. For example, in the U.S., employers must “attest” to protect U.S. workers [Link] so as to ensure that foreign workers do not displace or adversely affect wages or working conditions of U.S. workers. Failure to do so will render the employer liable

http://www.businesstimes.com.sg/premium/top-stories/singapores-emigration-conundrum-20121006

Published October 06, 2012
Singapore's emigration conundrum
By
Joyce Hooi

In Singapore's Consumer Price Index last year, the cost of housing rose 8.3 per cent year on year, a rate of increase bested only by that of the cost of transport - another national bugbear - at 11.9 per cent -PHOTO: FILE PHOTO

IN the anonymous freedom of surveys, away from the glare of the National Conversation, more than half of us apparently do not want to be here - "here" in the geographical sense of the word (Singapore) instead of the existential, even though the two concepts have lately coiled themselves around each other in this country.

A Mindshare survey carried out early this year found that 56 per cent of the 2,000-odd polled agreed or strongly agreed that, "given a choice, I would like to migrate".

It is tempting to dismiss an amorphous and ill-defined wish in the carnival land of surveys that allow for split-second whimsy, especially when it's not clear if people have in mind leaving for the short term or emigrating - a permanent kind of departure.

Brenda Yeoh, a migration specialist and dean of the National University of Singapore's (NUS) Faculty of Arts and Social Sciences (FASS), is not surprised by the figure but is hardly alarmed, especially if the direr of the two possibilities - emigration - is considered.

逾半数国人想移民 本地房贵是主因
http://news.omy.sg/News/Local%20News/Yu-Ban-Shu-Guo-Ren-Xiang-Yi-Min-Ben-Di-Fang-Gui-Shi-Zhu-Yin-96523

《新报》报道,一项由媒体研究机构MindShare进行,访问2000多名本地人的调查显示,有56%的 人表示,如果有得选择,会想要移民。

调查显示,让最多本地人想离开的原因包括“不该耗尽一生付房贷”(75%)、“公共房屋的价格太离谱”(7 3%)、“新加坡人没有优先获得就业机会”(73%),及“医药费高涨”(72%)。

其他让本地人不满的原因包括“太多外国工人抢机会”(68%)、“不相信能在新加坡享有舒适的退休生活”( 65%)及“政治领袖的薪水太高”(62%)。

最多人不满的原因,大多与高涨的生活费和竞争激烈的就业市场有关。

国人移民,首选马国;国人离新后会回流。完整报道,请07.10.2012《新明日报》。

Saturday, October 6, 2012

Only 35.19% of Singaporeans supports the PAP/YPAP/PA/RC/NTUC consensus

From the Presidential election results

http://news.xin.msn.com/en/singapore/article.aspx?cp-documentid=5207403
Tony Tan wins Singapore Presidential Election 2011 by narrow margin

Dr Tony Tan is the next president of Singapore.

After a tight race and a recount of votes, the Elections Department has confirmed him as the winner of the presidential election.

Announcing the results, the Returning Officer Yam Ah Mee said the local votes counted are conclusive and that the overseas votes will not affect the results of the election.

5,504 Singaporeans have registered as overseas voters and their votes will be counted on Tuesday, August 30.

Dr Tony Tan beat his closest rival, Dr Tan Cheng Bock by a margin of 7,269 votes
The winning margin was about 0.34 percent of the vote

Dr Tony Tan had 744,397 votes or 35.19% of the valid vote

The majority that do not support their views, do not hesitate to counter/challenge their minority views/ideas as they have no legitimacy what so ever

Friday, October 5, 2012

Why prices of new HDB flats shot up so much


In 1991-1995 98,994 flats were built
In 1995-2000 157,919 flats were built
In 2001-2005 55,135 flats were built
In 2006-2010 26, 319 flats were built

Is it a surprise that prices of new HDB flats shot up so much?




http://www.todayonline.com/Print/Singapore/EDC120727-0000051/Many-new-PRs,-citizens-young,-well-qualified
Many new PRs, citizens young, well-qualified

Experts note the rising number of Singaporeans marrying foreigners; say spouse, kids should get PR or citizenship
Updated 01:43 PM Jul 27, 2012
by Ng Jing Yng


SINGAPORE - Immigration statistics revealed by the Government for the first time showed that, between 2007 and last year, the majority of those granted citizenship and permanent residence were not economically active - with the number of dependents outstripping working individuals.

During this period, there were 259,040 new permanent residents (PRs) and 92,310 new citizens. Working individuals accounted for 48 per cent of the new PRs and 38 per cent of the new citizens.






Tuesday, October 2, 2012

Why Singaporeans can't set aside enough CPF for retirement

In 1992, CPF contribution was 40% capped at $6000.
HDB prices in 1992
4rm $70k
5rm $110k
EM $160k

2012 Now CPF contribution 36% capped at $5000
HDB prices in 2012
4rm $300k
5rm $380k
EC $ 800k

Price of housing increased by almost 4 times. Yet CPF contribution has been reduced.


Monday, October 1, 2012

This 2 tables almost vanished from internet. Decided to go back to back to the source and get a screen capture of it before it starts vanishing again

Breakdown of building cost of HDB flat in 1981