Saturday, October 29, 2011

Singapore inflation numbers 2011 September and comparison

On the month August 2011On the month September 2011, CPI increase as below
Singapore 5.5%
Malaysia 3.4%
Indonesia 4.61%
Thailand 4.03%

Again Singapore emerges as the most ugly among the contestant. Assuming CPF interest rate of 3%, more than half of the CPF savings will be wipe out after 30 years. This is assuming that PAP is honest enough to provide the correct CPI number. I suspect our real CPI may be around 8-10%.

Yingluck's asset enhancement
Since few months ago, Yingluck become a pariah in the opinion of world's elites for her promises to help the poor farmers by increasing the rice price. Given the recent horrible flood in Thailand, rice price may rise inevitably even without mandate from Yingluck.

Some people have started hoarding food in Thailand fearing food shortages due to crop destruction by the flood.

In the take of elites, land price must rise, stock price must rise, rice price must not. Today, the elites have become the enemies of people. Anything good to the people is bad for the elites, and they would rather see poor Thai farmers bankrupt rather than accommodate a little inconvenience of food price increase.

With the increase of rice price on sight and rampant inflation, it may reach a point where Singaporeans go out and clean all their savings on rice. When NTUC shelves are empty, more Singaporeans will be panic further inducing more rice hoarding. When foreign investors see this, they will bank run Singapore property and asset.

Property price will fall like crazy. No better way to punish our elites and early birds are sure to make a profit on that.

Asset enhancement is only welcome if the rich are holding those assets. That includes property and stocks. Enhancement that target to increase poor man's wealth is loathed by the rich. Rice price must not rise, wages must not rise.

1 comment:

Anonymous said...

A debt-based fiat monetary system desperately needs to create inflation to cover up its tracks, hence the Bernank's printing machine. How else would interest be paid without inflation in largely service-based economies like US and Singapore? How else can governments tax the savings of the majority of the middle class without inflation? But ours is all the more flagrant because it is not just based on debt, but also on the inflows of hot and laundered money to keep the banks afloat, property sector bubble going and paper assets booming. The higher exchange rate is failing to control inflation (which it was never meant to do). Worse, it is killing the SMEs, and make their bosses crave to hire more cheap labour (witness this week's ST propaganda from those useless SME bosses like ASM and Apex). All in all, a very well articulated economic policy if the intent was to overwhelm the locals with a new batch of immigrants friendlier to the rulers.