Lama Lama Jadi Bukit ( Konon )

March 04, 2024

when i grew up, i remembered this peribahasa ( proverb )

the elders will advise us to keep our hard earned cash for the rainy days. Didnt know that the rainy days turn out to be Covid virus, which our "compassionate" backdoor Prime Minister happily asked us to dip into our own EPF savings to survive while he and merry bands of bandits scrambled away billions of ringgit during the lockdown.

When we are in school, we are not taught with concepts and ideas of how economy works such as inflation rates, circulations and what not - all this important concepts we learnt it from MONOPOLY.

Imagine, we can make the Bankers go bankrupt, flipping tables and dealing with huge arguments, the potential of you being rich and poor depends on your luck from the dice.

But in reality, you dont need the DICE, you simply need to know the right people, the right connection, or best born in the right family with a silver spoon in between your butt to kickstart the economy race.

Just like when we step into the casino - the house always win. No worries as there are thousands of fools wants to challenge the odds. In the end of the day, the HOUSE wins and owns everything.

Our central bank will continue to print money.

an average of about a 10% increase in money supply every year.

In the 70's, from RM4.1 billion in circulation - now we have RM2.4 trillion.

This is 580-times increase in money supply in the span of 54 years.

Sure every country will dilute their currency, which making their populations poorer over time.

This means if you had RM100,000 ten years ago, its worth RM38,500 in real terms today. Almost two thirds of your money has been wiped out in a mere 10 years.

Keynesian economics-inspired loose monetary policy, will likely never stop printing money out of thin air. So fiat currencies, including the ringgit, will continue getting debased and inflated away.

Central banks are allowed to create paper money out of thin air. With this it reduces the purchasing power of money and destroys the savings of average people.

( not to forget - if any government wants to please the rakyat immediately, they will give out various cash aids - again the central bank will print more money )

circulated money left undeclared either stashed away mixing with newly printed notes therefore will make the economy stagnant.

so what you will do with your money as the value of the printed paper goes down?

Its entirely up to you.

with this, let me correct the proverb,

dah la sedikit,

lama-lama bukit pun takda.