“I thought my card had been compromised. I thought somebody had bought Europe with my credit card,” Muszynski told the station. “It was very concerning.”

May I refer to HBT456. Can we meet up some where so that we can iron out misunderstanding on racial harmony, islam, Malays and government. You just name the place and time, and I will go alone.

amin tan

If they unfortunately unable to resolve the debt, they just need to release the gold and boom! their debt gone!

Please let me quote your post here:
//Maybe you would think twice when you have seen this passage before you assert US is poor country.

“As a US based mining company, Freeport principal assets are our reserves. At December 31, 2009, consolidated recoverable proven totaled 37.2 million ounces of gold. ” Now, 37.2 million times US 1700 dollar is US 63.24 trillion. Last year, the company reported to produce 54000 kg Gold, which means 1 kg= 32 ounces, 54000kg times 32 ounce times US 1700= US 2.93 trillion dollar. ” //

The result of your calculation should be in billions (10-figure sum) and not trillions (a 13-figure sum). Even that amount of gold is still a drop in the ocean compared to the total US debt…

//Onlooker Politics
August 11, 2011 at 8:52 am | Permalink

Sorry Tun,
I could have been misled by the outdated data being released by Singapore’s Department of Statistics and thought that Singapore was still a debt-free nation.

According to the latest CIA Factbook released in 2010, Singapore has the 8th highest public debt to GDP ratio (namely, 113.10) in the world after bankrupt states Zimbabwe (1st, ratio 282.60) and Greece (6th, ratio 126.80).//

1-Thanks for this very interesting and truly shocking information that has escaped me.

2-It seems to me that just like the USA , the great things about Singapore too maybe more a myth than a reality.There are many more things that may have been concealed.Nonetheless Singapore is still enjoying a triple A ratings as for now.

3-I believe however in a situation of the Western economic fallout like the one unfolding now with this sort of debt exposure and its high dependency on the Western economy Singapore will be a very very vulnerable nation,triple A or not.

Thanks Tun

The excerpt below may be of help for us to understand further about the sources of a Currency Crisis.

Onlooker Politics

***************************

The relationship between external debt and economic growth is somewhat complicated. Whether external debt is good or bad for economic growth depends largely upon how we make use of it. For a developing country, usually lacking in capital, external debt plays a key role in the promotion of economic development and during the last thirty years, for example, many East Asian economies have benefited greatly from external debt. Conversely, many of the East Asian countries worst hit by the financial crisis were those that were already saddled with heavy external debt. From the end of 1995
through until June 1997, the sum total of short-term debts in Korea accounted for 68.2%, in Thailand 66.6%, in Indonesia 60.9%, and in Malaysia 52.2%. These countries clearly have too much short-term external debt, which they must repay, together with the accrued interest, within one year. In any country where short-term debt accounted for a large proportion of total external debt, there would be greater sensitivity to changes in financial conditions.

In addition, as noted earlier, many of these East Asian countries have taken advantage of short-term lending for use in long-term investments. This is simply the worst high-risk measure they could possibly take.

If the highest proportion of external debt is long-term, then this is mainly used for direct investment, which is helpful for the debtor’s economic development. Correspondingly, if most of the external debt is short-term, it is mainly used for indirect investment. The importance of external debt lies not in its absolute value, but in its proportion of GDP. But even if the
external debt accounts for a large proportion of GDP, this is still not a sufficient condition for the country to become drawn into financial crisis.

An example of this is Australia where, from 1990 through until 1995, external debts accounted for 46.1 percent of GDP, larger than that of Korea, Thailand or the Philippines. And yet, Australia was able to virtually ignore the penetration of the East Asian financial crisis. If, however, the short-term
external debt accounts for a large proportion of total external debt, under a condition of relatively low foreign exchange reserves, this would deepen the financial crisis. This was the case in Korea, which had the largest proportion of external debt, and which also felt the worst effects of the financial crisis.

Among the four Asian tigers, the Philippines had the largest external debt in terms of its proportion of GDP, but it suffered far less than Malaysia, Thailand and Indonesia, as well as Korea. In reality, Korea’s external debt was not large in comparison to the ASEAN countries. A further example is
Vietnam which has been following market economy policies for about ten years, but which was affected much less by the financial crisis.

The question arises, therefore, if a country is equipped with large foreign exchange reserves, is it in a position to avoid financial crisis? From the experience of 1997-1998 Asian Currency Crisis, the answer is inconclusive. For instance, Thailand’s exchange reserves were equivalent to 6.9 months of its imports during the period 1990-1995, and were larger than any one of the other Southeast Asian countries. Therefore, it follows that Thailand should have suffered much less from the financial crisis, however, Thailand was the one country most affected by the financial crisis!

Excerpt:
FROM CRISIS TO RECOVERY – East Asia Rising Again?
© World Scientific Publishing Co. Pte. Ltd.
http://www.worldscibooks.com/etextbook/4534/4534_1_5.pdf

Monetary plus Derivatives have shrouded sense of the Physical World!

Don’t Let Monetary Delusion destroy you Physical Civilization!

Rome are not Destroy because the World is Dead. They just forgot how to build a Civilization.

Money is not Wealth, Physical Goods is!