"Germany must accept higher inflation, says OECD":
http://www.telegraph.co.uk/finance/economics/10642228/Germany-must-accept-higher-inflation-says-OECD.html
It is BS to throw ur garbage to another country.
Also BS: "Deflation poses a threat to economies because falling prices encourage people to put off spending in anticipation of further declines. Retailers then cut prices, profits fall and salaries are reduced, which can quickly lead to a deflationary spiral."
Friday, February 21, 2014
Inflate, inflate, inflate
http://www.youtube.com/watch?v=KowPgFfQtwQ
Mums know more about inflation than govt. It is astounding that the US reports very low inflation when it is one of the largest money printers, when the US dollar is not strong relative to other currencies, and when other nations are reporting high inflation. After all, we all consume the same beef, oil, steel, zinc, etc.
Food, energy, education, healthcare, toll, stock etc prices are going up. Yet, traders and investors still believe the BS govt inflation numbers, which are fudged using hedonic adjustments and substitutions. They don't do their own shopping. Their butlers do it for them.
A friend recently told me he was shocked that the price of old ChangKee curry puff in Singapore has gone from 80 cents to $1.40, 75% increase in just 3 years. Why? Demand-supply dynamics play a role, but more importantly, MAS increased credit supply by 40% in the past 3-4 years alone, and more before that.
Mums know more about inflation than govt. It is astounding that the US reports very low inflation when it is one of the largest money printers, when the US dollar is not strong relative to other currencies, and when other nations are reporting high inflation. After all, we all consume the same beef, oil, steel, zinc, etc.
Food, energy, education, healthcare, toll, stock etc prices are going up. Yet, traders and investors still believe the BS govt inflation numbers, which are fudged using hedonic adjustments and substitutions. They don't do their own shopping. Their butlers do it for them.
A friend recently told me he was shocked that the price of old ChangKee curry puff in Singapore has gone from 80 cents to $1.40, 75% increase in just 3 years. Why? Demand-supply dynamics play a role, but more importantly, MAS increased credit supply by 40% in the past 3-4 years alone, and more before that.
Printing behind the scenes
http://www.testosteronepit.com/home/2014/2/18/fed-lying-about-qe-media-not-paying-attention.html
That's why I've said, even without qe, they are still printing behind the scenes!
That's why I've said, even without qe, they are still printing behind the scenes!
The taper bluff
The taper bluff. Guess what will happen when they stop the 'stimulus'?
In 2013 The Fed Bought 150% More Treasurys Than All Foreigners Combined:
http://www.zerohedge.com/print/485106
In 2013 The Fed Bought 150% More Treasurys Than All Foreigners Combined:
http://www.zerohedge.com/print/485106
Friday, February 7, 2014
Be realistic about taxes in Singapore
For those of us who keep complaining about indirect taxes in Singapore (including myself) such as COE, ERP, GST, etc.
Well, that's because everybody wants government to do this and that. The nation wants government to provide housing, transport, education, healthcare, social and welfare programs but all these have to be paid for. If you take out one component, say GST, from their budget, the government will have a budget deficit. I am not making this up. You can check their budget.
One thing the government can get rid of, however, is CPF. I believe people are better managers of their own money.
Regarding taxes, Singaporeans are not the most taxed citizens in the world. The western nations are way worst. Just for the record, I would like a 0% income tax. But that is impossible if you allow government to be involved in providing so many services.
The best solution is to let the free market provide the services I've mentioned: healthcare, transport, education, etc. Then we can get rid of stuff like COE, ERP, GST, etc.
America became a great nation 100 years ago with ZERO income tax. Why? It was because their federal government was not involved in all those services I mentioned above (not even in building highways!). Those services are solved locally. Over the decades, they start to politicise all those services, and this is one of the reasons why they are in a bad shape right now.
Well, that's because everybody wants government to do this and that. The nation wants government to provide housing, transport, education, healthcare, social and welfare programs but all these have to be paid for. If you take out one component, say GST, from their budget, the government will have a budget deficit. I am not making this up. You can check their budget.
One thing the government can get rid of, however, is CPF. I believe people are better managers of their own money.
Regarding taxes, Singaporeans are not the most taxed citizens in the world. The western nations are way worst. Just for the record, I would like a 0% income tax. But that is impossible if you allow government to be involved in providing so many services.
The best solution is to let the free market provide the services I've mentioned: healthcare, transport, education, etc. Then we can get rid of stuff like COE, ERP, GST, etc.
America became a great nation 100 years ago with ZERO income tax. Why? It was because their federal government was not involved in all those services I mentioned above (not even in building highways!). Those services are solved locally. Over the decades, they start to politicise all those services, and this is one of the reasons why they are in a bad shape right now.
Thursday, February 6, 2014
Government interventionism in the Depression
And this is one of the reasons for the Great Depression of the 1930s: Government interventionism in the market.http://bastiat.mises.org/2014/02/does-barack-obama-realize-how-indebted-he-is-to-herbert-hoover/
Of note is also the Depression of 1920, which no one talks about, because government actually stayed out of the market and it was over within 1-2 years. My article from feb 2013:http://silvernjin.blogspot.sg/2013/02/1920-depression-that-no-one-talked-about.html
Of note is also the Depression of 1920, which no one talks about, because government actually stayed out of the market and it was over within 1-2 years. My article from feb 2013:http://silvernjin.blogspot.sg/2013/02/1920-depression-that-no-one-talked-about.html
Monday, February 3, 2014
North Korea
Even though I've researched quite a bit on N.korea in the past year, this book is proving to be a page turner...
It confirms the info I've gathered, but with more details.
It tells of the entrepreneurial spirits of the N.korean people, when given the smallest of openings by their govt.
It tells of the thriving black market, which provides goods and services where govt had failed - yet another proof that free people provide for themselves best.
It shows the unprecedented public display of anger against the govt in 2009/2010 due to massive devaluations of the currency that wiped out a lifetime of savings. The govt supposedly did a public apology to contain the anger.
In many cases, this looks like what happened in East Germany right before the merger, something unimaginable just a little over 2 decades ago.
And etc etc.
I cant wait to get my hands on Nkorean gold coins. It's a bet that the current regime will not be around in the forseeable future.
It confirms the info I've gathered, but with more details.
It tells of the entrepreneurial spirits of the N.korean people, when given the smallest of openings by their govt.
It tells of the thriving black market, which provides goods and services where govt had failed - yet another proof that free people provide for themselves best.
It shows the unprecedented public display of anger against the govt in 2009/2010 due to massive devaluations of the currency that wiped out a lifetime of savings. The govt supposedly did a public apology to contain the anger.
In many cases, this looks like what happened in East Germany right before the merger, something unimaginable just a little over 2 decades ago.
And etc etc.
I cant wait to get my hands on Nkorean gold coins. It's a bet that the current regime will not be around in the forseeable future.
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