Printing Money

The root of any monetary collapse comes from a lack of faith in the stability or usefulness of money to serve as an effective store of value or medium of exchange. 

 

The moment people stop believing that a currency is useful, that currency is in trouble. This can be brought about through improper valuations or pegging, chronic low growth, or inflation. 

now - alot of people doesnt realize that economists like to project an idealistic inflation rates. Its completely bullshit - same goes with your yearly salary increment. If your management approves 5%, the market will go to 7%. 

Money will never be enough. That is why people will always chasing for money. Not the other way around. 

In 1998 - Tun pegged the MYR against USD from at MYR3.80 to MYR4.40. During the Asean Economic Crisis, Ringgit fall like any villains in any Mission Impossible films. The World Bank acknowledged this ballsy move after 10 years.

 

If Tun didnt do this, we became Zimbabwe long long time ago. 

 

Yesterday there is a "economist" asking Bank Negara to print more money to wipe off debts and etc. This "economist" is deputy Minister in Sports - goodness. 

 

Hello when we play Monopoly, we don't print our own money when we lose ok. US govt did this to buy back their own products and to kickstart their massive economy. 

 

Its called Quantitative Easing. 

 

What we have to buy back? 

 

palm oil? 

 

Semua bankrap. 

 

Now everyone is screaming and shouting at the KWSP to withdraw MYR10,000 as the pandemic screwed everyone. No doubt people wants extra money to live by, but the moment, they do this - the price of everything will increased like shit.

 

 

 

Tahniah