this downward spiral..

I wasn't playful when I said Najib was trying to emulate ('to ape' would be a more appropriate verb) the US style of government. Do you believe it is a coincidence that our national debt is increasing alarmingly in the trend that the US national debt has sky-rocketed ? Some 'new economics' proponents believe that a deficit balance of payments account is nothing to worry about. That's why Najib is not worried ? Honestly I don't know. This is just a 'thinking aloud' kind of a post.

In  deficit spending and credit expansionist policies, inflation is caused by the government's intervention in the monetary relations. Inflation is an increase in quantity of money in circulation that surpasses the demand for money for cash holding. Inflation will cause depreciation of the purchasing power of the nation's monetary unit and this in turn will cause an increased demand for foreign exchange. Similarly, the government's policy of lowering the market rate of interest will also cause a demand for foreign exchange.

Have you noticed occurences of new RM100 notes in circulation lately ? I have not, but I read somewhere someone made that remark, that new RM100 notes are in circulation 20 times as before.

Inflationism cannot last.  Inflation has to stop, or the monetary system is doomed. We don't practise pure capitalism.  The market will not correct itself to regain new equilibrium.

Ever wondered why it's getting too volatile ?


Question : Will the Bank Negara Malaysia disclose to me all the relevant facts and figures if I were  to request for them in a letter ? I envy those with influence, who need only text the right person for the required info to fill in their piece.


Ini adalah siri posting : Menyampah Dengan Najib

Dah tak rasa nak muntah ? Anda tak rasa loya lagi sebab semua angin dah keluar. Sekarang masanya untuk berfikir dan luahkan secara lebih rasional dan cari jalan keluar. Bukan untuk diri sendiri semata-mata tetapi untuk semua orang.