Tuesday, August 23, 2011

At 5.4% high-inflation and 2.5% CPF interest rate, Tan Chuan Jin is going to make CPF "last longer"

Singapore CPI hits 5.4% in July 2011. This is merely the official figures which often understate the severity. Our CPF accounts are raided.

Keeping CPF interest as low as 2.5%, Minister of State for Manpower and National Development Tan Chuan-Jin announced that "we are enhancing the CPF system to make CPF savings last longer for members".

PAP seems going for another round of CPF default to "take care us during our old age". PAP will implement nothing new from what I have described as CPF stealth default, in my previous article.

  • Inflate away CPF savings. (CPF interest is lower than inflation)
  • Refusing to pay full amount and let inflation do the rest of the job. (as in raising minimum sum to S$131,000)
  • extending the lump sum payment dateline and let inflation do the rest of the job.

With the recent stock market blood-bath and the impending crash of asset in the future rounds of crisis,GIC portfolio value is going to zero. Hence, I am confident that PAP will soon announce another round of CPF rape. 

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