The flawed FX policy of LKY is going to wipe out our savings overnight. What is left after the inevitable collapse of USD is what Dr Goh Keng Swee has preserve through gold reserve.
After these years since 1968, Singapore has only increase our gold reserve by 26 tonnes. This is what the LKY has been doing. Lets hope I am wrong, and lets hope that LKY is secretly accumulating gold reserve for Singapore.
I am sure if Dr Goh is around, he will be doing that.
Dr Goh bought Singapore's first 100 tons - around 101,600kg - of gold reserves from the South African Finance Minister, then Dr Nicolaas Diederichts, in a private exchange at the World Bank meeting in 1968. The minister reportedly went to Dr Goh's hotel room and turned up the TV volume before discussing the deal.
After agreeing to sell the gold, he took out a United States dollar note and cut it in half, giving one half to Dr Goh.
This was used for verification of identity when the Singapore representatives - Mr Ngiam Tong Dow and veteran banker Wee Cho Yaw - later met the South African sellers in Switzerland.
And that's how Singapore obtained its first gold reserves, at US$40 per ounce.
As of March, Singapore had about US$212 million in official gold reserves, according to the MAS website. Gold price is now nearly US$1,250 an ounce. [link]