by the end of this year... US Dollar will devalue 30% - 50%
pengecatbintang Post at 5-11-2010 00:13
FED Reserve yesterday dah announce Quantitative Easing2, additional $600B gradual purchase of bonds within 8 months and subject to review...outlook remain bearish for currency USD for the near term..
EUro central bank pula kekalkan cash rate at 1.00% ...
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.
4. Why is the dollar devaluing? Could it be the currency traders are selling dollars? Could it be because the balance of payment is not in US favour?
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?
sedangkan kat US... aset depa macam real estate alami deflation..
pengecatbintang Post at 5-11-2010 02:29
nak kata deflation pun tak tahu laa..
bukan nya ada increase in value of money pun kat sana sampai property jadi murah...
sekarang nie dah jadi crisis of confidence...
worst sekali kat florida
ramai foreigner invest in florida for their summer house
bank bagi finance 110-120% of the house dulu...
collateral.. rumah tu jer..
sekarang value dah reduced by 50-70%..
so apa yg jadi.. instead of paying.. foreigner nie malam2 cabut
neighbour pun tak tahu.. lepas 2 tiga minggu baru perasan
rumput tak potong.. swimming pool penuh daun..
now they can buy similar house for 30-50% of the price jer
rumah lama tu biar laa bank ambik balik....
I was in florida recently.. kat orlando, sarasota..
banyak rumah cantik2 kena tinggal macam nie..
sesaper banyak duit bleh laa invest.........
China's Hu tops Forbes 'most powerful' list
November 4, 2010
(CNN) -- Chinese President Hu Jintao has topped the list of Forbes magazine's list of the world's
most powerful people, besting U.S. President Barack Obama who slipped to the second spot.
The magazine said it used four criteria to define power -- whether the person has influence over
a lot of people; whether they have significant wealth compared to their peers; whether they are
powerful in more than one sphere and whether they actively wield power.
In that respect, said the magazine, the editors picked Hu as the most powerful man in the world.
The annual list was released Wednesday evening.
hmmmmmmm.. round 1.. menang
apa reaction agaknya.....
Post time 4-11-2010 08:17 PM
.. diorang angry kat obama. Anyway I tengah nak baca pdf file nih.
