Show me the MONEY!! Heee.. It's been over a year, almost 2 years i'm 'away' from economics, a subject i took in KMB. Me likey econs soo much! =p So, i feel like writing about the current issue regarding Malaysian's economic situation, currency, to be precise. As i'm not into writing in Malay, i prefer writing in English. *koya molek* ngee
CURRENCY WAR.. ala2 jet pejuang gitu. hehe
Malaysians, including Malaysian monetary authorities seem quite happy over the appreciation of the Ringgit against the US Dollar. We think that when our currency strengthens it must be because our economy is strong, Therefore we are doing well. Hoho
But are we REALLY doing well? Like for REAL?? Is it the Ringgit which is appreciating or is it the US Dollar which is devaluing? Hrmm..
Actually it is the US Dollar which is devaluing. It is devaluing against most other currencies, especially against China's currency. So, dont' be so excited that our FDI increases. (if i not mistaken laa, FDI is also increasing)
Why is the dollar devaluing? Could it be due to the currency traders selling dollars? Could it be because the balance of payment is not in US favour? *masuk bab balance of payment pulokk* heee~
Martin Wolf of the Financial Times, an expert on money have this to say. There is a global currency battle going on. "To put it crudely," he says, "the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition; there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world's surrender; the needed changes in nominal exchange rates and domestic policies around the world."
Our reserves are represented by the US Dollar, gold and other currencies which we keep in order to back the value of our Ringgit, the US clearly does not have to hold foreign currencies to back the Dollar. All the US has to do is to create (print) money. *sigh*
When we buy US Dollar bonds, we are in fact lending US Dollars to the US. When we redeem the bonds all the US has to do is to print more US Dollars to pay us.
How nice it would be if we can pay all our debts by just printing money!! Nahaha
There is something fishy going on and the fishy smell is very strong in the US. "Poor" China with 2.5 trillion devalued dollars in its reserve. Wonder how much Bank Negara has? Ermm...
Back to the question of US dollar. I think it's time the dollar no longer considered as the world trading currency. The dollar has no real value, it's has become plain paper due to the wanton printing of US dollar like nobody's business.
The US can print the dollar because it is their right to print. It is the world nations and national banks that I don't understand that is addicted with this no value US money. What if i say... It's time to start using dinar and dirham. Weee~
In the face of Governments devaluing their currencies in a currency war, what should Malaysia do? Keep the float or control? When we controlled our currency in 1998 we were called pariahs whose knowledge about finance could be written on the back of a postage stamp. Now it seems many nations are using their magnifying glasses to read what is written on the back of the postage stamps. Hah!!
Fight for money.yeah! Tatkala dunia jadi tujuan...
Just sharing. What do YOU think?? Blurr?? Or..
"do i need to know all this??"
"LIKE I CARE! daa~"
"Biaq pi org besau2 la uruskan bnda2 negara nih"
"dop pehe la gapo awop bobok nih"
"saya bukan budak econs la.."
"So??"
Haha.. Stop being ignorance. Maybe there's nothing we can do. Floating currency or controlled currency. If only we can decide. But at least we know what happened. Owh by the way, as for me we should impose CURRENCY CONTROL. Since our money reserve is mostly in USD, by imposing control on our ringgit, the value of the reserve in ringgit will not decrease further. Hehe. Just thinking. Who'll care what i say anyway =p
Some might not really understand. Ok ok.. The point is simple.. CORRUPTION is everywhere. You know what i'm saying? I wrote too much am i? No further comment. Nanti they said i'm political. Hua3
Some might not really understand. Ok ok.. The point is simple.. CORRUPTION is everywhere. You know what i'm saying? I wrote too much am i? No further comment. Nanti they said i'm political. Hua3
It reminds me of a hadith, Abu Huraira narrated that the Prophet p.b.u.h said:
A time will come upon the people when one will not care how one gains one's money, legally or illegally. (Bukhari)
Here is another one, Ibn Masud said I heard the Prophet p.b.u.h saying:
There is no envy except in two: a person whom Allah has given wealth and he spends it in the right way, and a person whom Allah has given wisdom (i.e. religious knowledge) and he gives his decisions accordingly and teaches it to the others. (Bukhari).
Ottoke??? Open our eyes, open our heart, open our minds. What you say is what you think, what you think is who you are *ade kaitan ke??* Hehe
Only Allah knows what's best. An-nyŏng-hi ga-se-yo! =D
2 comments:
wah,rjin update blog..
explain sket agi nee.. x pehe..
hebbat awop speaking.aja la sy etep
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