Thursday, August 4, 2011

Defaulting CPF 9: Now US raise their debt ceiling, PAP is going to play sucker

On 1st Aug last Sunday, White House and congress have reached agreement on raising the debt ceiling. According to sources, under the deal, the US debt ceiling would be raised from the current US$14.3 trillion (S$17.2 trillion) by as much as US$2.4 trillion, enough to tide the Treasury over until after the 2012 elections.

That is to say USA are to to default again after 2012 unless there is around round of debt ceiling raise. Meanwhile, fully aware that USA are going down the road of default, PAP lend ever more monies to USA for the past one year, up by by 41% to US$57.4 billion in US treasury securities alone.

In my opinion a default today is a better solution for us. Our CPF will then be wiped out, and Singaporean will  be awaken to the fact that PAP has been trying to ruin us for these years. But right now,with ever raising debt ceiling, FED is going to print more monies amounting to stealth default. Not only the current CPF account holder will be wipe out, the future CPF is going to be worthless, and apart from that, we will going to have a hyper-inflation.

Worse, PAP may persist to lend monies again to deadbeat USA even though it is fully aware that we are not going to get back the monies. Right now, the main proxy of PAP that lend(give) monies to US is GIC, by means of buying the junk US government bonds. And a large chunk of GIC's capital come from CPF.

A few days ago, there are reports of Korean central bank has purchased gold. As a matter of fact, central banks has been hoarding gold for centuries, instead of setting up something like the worthless GIC. The day when GIC shut down and convert all its asset to gold, is the day we know our government is doing the right thing.

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