Money printing (/borrowing) by Singapore government- how much is too much?

Money printing (/borrowing) by Singapore government- how much is too much?

Briefly, M1= printed SGD in circulation + some more, M3= quasi money= everything including government bonds (treasuries) etc (people will pay U money for these at whatever is market rate(much is sold to CPF so Temasek & GIC can invest the CPF monies etc) but too big to use at super-mart).

• Will so much printed money worsen the rate of inflation (even if it isn't captured by the CPI) in Singapore? ('Why CPI might fail to capture the true rate of Inflation in Singapore.'[HWZ, 11Jan2013])
• Will so much money 'printing' worsen the wealth divide?
• Will the supply inflation of the SGD ($ printing) also inflate the housing price in Singapore?
• Are CPI measurements in Singapore consistent over the years just as the luxuries enjoyed by the average Singaporean (who has been forced to become more and more 'productive') have alongside increased- is this 'productivity' readily translatable into quality of life improvements?
• What is the effect of Singapore's increase in GDP upon the environment- Singapore has already refused entry to boat people arriving as political refugees 'Singapore cannot accept Rohingya refugees' [CNA, 24Mar2009], will Singapore do the same for environmental refugees as sea levels across the world rise?

According to the chart on SG govt money printed, 1989-2011, M3, the broadest measure of Money created by the central bank has increased from
dollar notes created/ printed have increased from SGD71.0 billion (1989) to SGD 451.7 billion (2011)
Using compound interest(inflation) calculator [ink] with the input values as:
Input principle: $71,007.8 B
Input years= 22yrs.
Input total= $451,675.2 B
Result: Effective Annual Rate of increase = 8.7736% P.a.

The same calculation for years 2010 to 2011 period= Effective Annual Rate of increase= 10.135%

Thus if Singapore's GDP didn't increase by 10.135%, why is the government of Singapore issuing so many treasuries/ printing so much $$$???

In short, the government of Singapore should perhaps encourage its citizens to buy gold rather than pouring their $$$ into housing to avoid a large housing bubble and then the political instability following either such a bubble bursting or else the ravages of high inflation rates upon society that few governments can effectively control albeit postpone (which is what Paul Volcker, I think, did)

[pict source: https://secure.mas.gov.sg/msb-xml/Re...=I&tableID=I.1 ]

Caption: Currency to exchange for gold please- takers, anyone?[Image source]

important thing is whether S'pore's central bank is also private like Federal Reserve.......................and if it's private, who's the owner ?

GIMD... are you suggesting the MAS is owned by the Rothschild as well?

That is a scary thought... do they own Rivendell too?

Live Documentary: Fiscal Abyss of the 21st century, thanks to unfettered welfare libe

Live Documentary: Fiscal Abyss of the 21st century, thanks to unfettered welfare liberal democracy.

Haagen Diaz said:

Thread topic: Money printing (/borrowing) by Singapore government- how much is too much?
TS, where do you get the knowledge on this? Just from MAS website? I'm damn interested to know more. Thanks. I prefer to read a book in order to get the whole picture.

Click to expand...

Appreciate your expression of interest on this topic.

Suggest watching:
Inside Job (2010): https://vimeo.com/54817244

Inside Job (2010)
from THELIGHT
DOCUMENTARY : 'Inside Job' provides a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China.

Click to expand...

And perhaps:

Money, Power and Wall Street
Time : 10:30 PM
Duration : 29 mins
Desc : Since 2008, Wall Street and Washington have fought against the tide of the fiercest crisis since the Great Depression. What have they wrought? This special series finds out the inside story of the struggles to rescue and repair a shattered economy.
Buy: http://www.shoppbs.org/product/index.jsp?productId=12839182

Click to expand...

- the latter is still showing on CNA, 1030pm; think the 2 same concern.

In short, US bankers had succeeded in making congress, prior to 2008, permit them to buy, with various savings account monies transferred into their investment arms, CDO (collective debt obligations) which we all know, circa 2008, were renamed toxic debt whose opaque value was tagged to the burst property bubble in the USA.

Acknowledging their responsibility for the past lack of regulation over the now too big to fail (and too big to jail) banks, congress had thus no choice but to agree with Sec of Treasury Pall Hanson to BAIL OUT THE BANKS at the cost of (AFAIK: USD5T++) or else face public mayhem with a total collapse of the financial system with a run on practically every main bank.

So US congress did the necessary and patched the holes in the banking dam, using cash raised from the higher dam (US Treasury viz selling of treasuries).

And that's why China is now warning of a massive US collapse- turning a fiscal cliff into a fiscal abyss... ['China on ‘fiscal cliff’ deal: US kicking can towards ‘fiscal abyss’'(FPeconomy, 03Jan2013)]

Liberty found its way then lost it again... if U asked me, I'd say that the best way froward is religion without specifying as yet which (anyhow, I believe that the founding fathers of the USA were all deeply religious(Christian etc)).

Then again, all U asked about is the fiscal cliff/ abyss, and Nouriel Roubini writes well too.

Just my 2c,
All the best,
C6.

Singapore Money Supply(DBU),M1,2,3,1989 to 2012..JPG

bic_cherry said:

Money printing (/borrowing) by Singapore government- how much is too much?
...

Click to expand...

Update:
[alt site for SG Money Supply M1,2,3,(DBU) chart]
Chart source: https://secure.mas.gov.sg/msb-xml/Report.aspx?tableSetID=I&tableID=I.1

Definitions
Money Supply: Refers to the amount of money in an economy.
Narrowly defined, money supply (M1) consists of currency in active circulation and demand deposits.
A broad definition of money supply (M2) comprises money supply (M1) and quasi money. The latter includes fixed, savings and other deposits with banks as well as negotiable certificates of deposit in Singapore dollar issued by Singapore banks.
Money supply (M3) consists of M2 and net deposits with non-bank financial institutions.

Definition Source: Yearbook of Statistics Singapore, 2012 http://www.singstat.gov.sg/pubn/reference/yos12/statsT-finance.pdf
=========
Related pictures:

[alt img source]PictSource: 'Singapore Annual Inflation rate and CPI (1980-2012)/Singstat']

[alt img source][PictSource: SG official Foreign Reserves (YOS2012)]

[alt img URL][PictSource: Time Series on Population (Mid-Year Estimates)(1970-2012)]

[PictSource: Estimated global monetary Aggregates (1971-2010)]

[PictSource: SGD exc rates, finance (2001-2011), YOS2012]

LadyArwen said:

GIMD... are you suggesting the MAS is owned by the Rothschild as well?

Click to expand...

considering the Lee Clan are Ziuonist stooges like Hun Sen, Thaksin and Anwar................and Aung San Suu Kyi...............the Rothschilds may be indirect owners........

Concept is bit technical, isn’t it? what has to be done for the money printing, there are many rules for this?

bic_cherry said:

In short, the government of Singapore should perhaps encourage its citizens to buy gold rather than pouring their $$$ into housing to avoid a large housing bubble and then the political instability following either such a bubble bursting or else the ravages of high inflation rates upon society that few governments can effectively control albeit postpone (which is what Paul Volcker, I think, did)

Click to expand...

To: bic_cherry

If I were you I would refrain from giving suggestions to LEEgime on how to avoid this or seize that opportunity or work on this a little bit more, etc...unless I am paid multi-million $ to be advisor to Pinky or to the civil serpents.

There's no greater joy for me than for Old Fart to see a housing bubble formed and burst during his lifetime.

Why destroy a country that U serve NS to protect?

Why destroy a country that U serve NS to protect?

PrinceCharming said:

To: bic_cherry
If I were you I would refrain from giving suggestions to LEEgime on how to avoid this or seize that opportunity or work on this a little bit more, etc...unless I am paid multi-million $ to be advisor to Pinky or to the civil serpents.
There's no greater joy for me than for Old Fart to see a housing bubble formed and burst during his lifetime.

Click to expand...

Hi Prince,
I am Singaporean and would rather see a housing bubble NOT form for all the ill effects I have illustrated here and in other posts within this forum.

As for Ah Kong, guess I'm perhaps too young to comment too much about him, however, from my observations, the performance of Lee younger is nothing near half as good as the father.

As mentioned in my other threads pertaining to property, Lee elder was as morally socialist as perhaps socialist could go in so far as property prices and job creation was concerned (I make no comment about his treatment of political opponents here). In Lee elder case, he robbed the rich (land/farm landlords/ owners) to provide affordable housing at below market priced land costs plus affordable building costs. In the case of Lee junior, HDB land prices are now marked to market whilst little is being done to reign in the overall market price of land in Singapore... and all this whilst the PAP has prematurely decided to pay itself so handsomely as if they are successful entrepreneurs, especially when they have self admitted that Singapore is still in development stage- i.e. Sampan2.0.

Whilst I haven't yet mentioned about the need for either a definition of a minimum wage or the poverty line (just as political salaries are pegged), I cannot deny that I would rather see gradual political change in SG society rather than a revolution since Singapore really CANNOT survive a revolution. Why choose a revolution when you could improve thing by just holding discussions? Why destroy a country that U serve NS to protect?- unless you re not Singaporean to begin with that is...

To a politician, bubble or not, what hurts most is when the people vote them out- not because of pork barrel politics of course (I do hope that Singaporeans are above this sort of bribes and inducements).

<1989-2011, M3, the broadest measure of Money created by the central bank has increased from dollar notes created/ printed have increased from SGD71.0 billion (1989) to SGD 451.7 billion (2011)>
Brother bic_cherry,thank you for pointing out that our M3 increased 536% in 22 year( 89-2011),is the reason to maintain our reserve like China,where People's Bank of China print RBM to exchange the foreign currency to maintain their highest reserve?

Sampan 1.0= British colony, Sampan 2.0= American colony.

Sampan 1.0= British colony, Sampan 2.0= American colony.

Dreamer1 said:

thread source: Money printing (/borrowing) by Singapore government- how much is too much?
<1989-2011, M3, the broadest measure of Money created by the central bank has increased from dollar notes created/ printed have increased from SGD71.0 billion (1989) to SGD 451.7 billion (2011)>
Brother bic_cherry,thank you for pointing out that our M3 increased 536% in 22 year( 89-2011),is the reason to maintain our reserve like China,where People's Bank of China print RBM to exchange the foreign currency to maintain their highest reserve?

Click to expand...

In all manner of truth, I currently believe that the PAP/ China print SGD/Yuan (respectively), just following the Americans. The Americans print becos they want partly to show off (big military, get cheap Arab oil by giving Arab leaders free weapons n $$$ like to Mubarak(Egypt), Osama bin Laden(against Russia in Afghanistan) and also becos too many stupid people (esp Chinese/ Singapore Govt.) give them back USD in exchange for yet more 30 year USD treasury bonds (still very very easy for USA govt to borrow USD internationally (low bond yields)); (apparently USA isn't so democratic a country as the whistle blower E Snowden recently reveals, and we all know that USA politics is much driven by commercial companies lobbying govt etc)... But the Tea party is gaining ground in USA so hopefully the American people can stand up for themselves.

So all this while, had China, Japan and SG/ etc not printed $$$, then their currencies would have risen, which is bad for exports and most 3rd world countries wouldn't like to see their citizens jobless since hunger is a core reason for govt downfall in 3rd world countries/ dictatorship like states like China and perhaps SG... so as long as the respective govts can FOOL THE PEOPLE that inflation is good, then there would be quasi peace, just as there is seeming balance amongst currencies, it's just the M1,2,3 that goes up but average people don't know about it.

So if U ask me, the 536% M3 increase over 22 years is possible because without internet (fairly recent phenomenon) NOBODY could explain neither inflation nor what M1,2,3 was all about, people were all quiet in USA because despite inflation, the USA govt seemed doing okay with subsidized healthcare, pension plans, liberal social welfare et al, Chinese citizen of course cannot complain cos complainants disappear/ go to jail. Singaporeans in between did fairly well prostituting themselves to USA and Japanese MNCs, which due to Lee Kuan Yews foresight, enjoyed first mover advantage over Taiwan, China (maoZeDong) and S Korea(peri war period); also, happy in their affordable (at cost) HDB flats with improved amenities, Singaporeans were beholden to the PAP.

So perhaps it wasn't the case that the PAP was corrupt or anything, they were just stooges of the USA, going with the flow, depreciating the Singapore dollar to maintain export competitiveness. Fortunately, having printed so many SGD, they now have very much of foreign currency reserves which if they really do have, is much more than a peanut sum (region of 300 plus billion SGD iirc).

Only question is whether these reserves are excessive and whether Singapore should convert its foreign currency reserves (USD) into gold bars seeing that the USA is still printing $$$ (its M1,2,3/ proxy all go up with quantitative easing). Singaporeans should also be morally and politically 'up-skilled' urgently so that Singaporeans can be more wise and elect a government smart and strong enough to teach the world what proper conduct and governance is (e.g. Not allowing MNCs to lobby govt/ make political donations), better banking rules to avoid expensive bailouts that cost tax-payers $$$, better political administration, better reputation rather than titles like 'kiasu', 'spoilt', 'stuck-up/proud', 'greedy', 'uncouth', 'gold-digger' etc.

In Short, if Singapore is to survive in this world, we must do away with GRC (minority rep via NCMP system), no more PAP-PA political associations etc, politicians must win fair, square through regular TV debates and rallies, people must be more morally wise and not vote PAP just to get ahead in HDB lift upgrading schemes, swayed by pork-barrel political antics ... Otherwise we remain a colony (prostitutes) of the puppet-master USA just as we were once unquestioningly a British colony... And we all know what happens to people without a sense of personal dignity... when the going gets tough, they simply SINK.

Re: Sampan 1.0= British colony, Sampan 2.0= American colony.

The article is really good and it is true that the singapore government should refrain from too much of money printing.

Re: Sampan 1.0= British colony, Sampan 2.0= American colony.

iwishe sinkie was ran by rothschild, jew lovers!!! they sounda lot more cunning n wiser than our MAS and temasux holdings!!! in other words, keep dreaming with your stooopid angmoh conspiracy theories okay! i wished jews would rule us. they're far less stupid.