Thursday, October 6, 2011

The lies of PAP's foreign talent marketing 4: The truth of aging society economics Part 2

In my previous blog, I wrote that in theory aging is not a great issue for Singapore but rather a big gold mine. Unfortunately, that gold mine has been cleanly emptied by PAP and you will soon know why after further reading the passage below.

In essence the old man savings are claim checks whereby some debtor will have to pay. Who is our debtor?

Most people have never connected the dots whenever they come across the headlines
  • USA is in debt which burden their future generation. 
  • Asians are savers and creditors of USA
What these sentences means is the future generation of USA will pay for the retirement of our old people when we show up at their doors with our dollar reserves. Being a world reserve currency, SGD is a derivative of USD. Hence, our savings are either back by USD, or assets of GIC.

I am going to bet USA is going to default either by inflation or by haircuts to their debt instruments. The next portion of savings comprises of assets hold by GIC, but we knew that its value is going to zero, thanks to those idiots fund managers there who draw high salary. 

Beside savings in cash or CPF, how about the old man's property? Its back by ponzi and it will go down the same way as Bernie Madoff
Our property are back on top on rents extracted from the offspring. In fact the higher the yield of property, the greater the vampire the old become. PAP's asset ponzi has in fact shifted power to the unproductive old against the productive young man.

For every holiday in Caribbean or the young Thai wife the old retiree relishes by unlocking his property, his grandson has to labor 30 years to fully pay back the mortgages.

It become increasing clear that the young Singaporeans are unable to cope with such ponzi by showing dismal fertility rate. Hence the FT comes into picture to hike up our property. It is not difficult to see how much more FT can the little red dot still accommodates.

The Singaporean old is still a goldmine now until the music stops. 
Historically, the unproductive old survives by creaming off surplus from productive young people (their counterparties), through holding titles of capitals. Very soon, our old faces the problem of counterparties default (USA) or ponzi blow up (FT policy running into walls)

Those who cash out early count themselves lucky.

PAP's crazy suicide economics policy and plundering of our savings is the problem
First, we have too many dollar reserves, and once QE started our savings will be vaporize. Even without QE, the worthless GIC once headed by President Tony Tan is going lost all our monies by trying to be talent in stock market casino.

The pillar of our retirement is CPF and property. The former is viable if USD is sound, the later hinges on FT ponzi. 


Stop the buck... said...

What you are saying is that the money in the CPF, despite being denominated in S$ and guaranteed by the CPF act is subject and sub-ordinate to the US$?

So, am I to make my claim to the FED or to the CPF?

The dots can be connected, and by extension you and I are also related when we look deeper.

But I make my claims with the CPF and that is all that matters. No one else will entertain me.
That being the case, if I do not get my monies back, they will hear less of my voice but feel more of my actions.

If anarchy & chaos is the scenario, so be it.

Its hardly any point in halting the train now, unless we want the chaos to begin in the next week.

Lead the way.

Anonymous said...

What actions do you propose that they feel from you? 60% still voting for them, and face it, they are playing this CPF - Housing Pionzi because they can print Sing dollars. See even when all your CPF is being invested in IOUs from US governments and certain European sovereigns, and regularly you hear blow-ups like Stuyvesant Towns, UBS, Wamu, and even when the USD and Euro are tanking, they have skillfully maintained a facade of fiscal prudence. How? By taxing the sheeple more. Not only that, the hot money inflow boost the "foreign reserves". And your CPF, just like unca Sam's IOUs, will theoretically not default because of the "printing press". Butb like Doraemon said, when you finally get your CPF money, assuming you are not already one-feet in the hole, they will be grossly devalued vis-a-vis hard commodities like rice, gold, petrol prices. So don't worry, you will get your CPF, except it will not be worth what you you had put in when you were working.