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2. The US Government is in debt to the tune of US$14 trillion. He wants to borrow more in order to repay the loans. If he cannot repay he will be in default. When a country fails to repay loans, it will be declared bankrupt just like anyone else.
3. What is one trillion dollars? We write it down as one billion with three additional zeros after it. Thus 1,000,000,000,000. It is not such a big figure. You add three zeros or three nothings and the figure increases by 1,000 times. But if we write down one billion as 1,000,000,000 one thousand times, we will have a better idea of what one trillion means. We would be horrified at the size of one trillion if we write the figure 1, one trillion times, which really is what one trillion means.
4. We now talk about these huge sums of money without really appreciating the real amount. Even in Malaysia we talk of billionaires now, not millionaires who are dime a dozen. We are losing our sense of proportion.
5. Just consider $14 trillion in Rupiahs or even in Yen. The figure would spill over the edge of a million sheets of A4-sized paper.
6. Malaysia is one of the countries which lent money to the US. When we buy US bonds we are in fact lending money to the US. Now the US dollar has depreciated from 3.8 Ringgit to one US Dollar to 3 Ringgit per US Dollar. We have lost 80 Malaysian sen for each dollar we lent to the US, if we redeem our bonds. Incidentally we will not be allowed to redeem all our bonds as the US has no money.
7. However, if we keep gold we would be rolling in wealth. Gold was fixed at US$35 per ounce by Bretton Woods in 1943. Now it is US$1,400 per ounce. Even at the depreciated US Dollar of 3 Ringgit we would have 4,200 Ringgit worth of gold for every ounce. Even if we had bought gold say 10 years ago we would have made a pile.
8. A US report says that the US war in Iraq, Afghanistan and Pakistan has cost the US more than US$3 trillion. This is being financed by the loans given by other countries through buying US bonds.
9. The US shows no signs of cutting back on military expenditure. Billions of Dollars are spent on researching, developing and producing more efficient means of killing people. Some 60 military bases are maintained all over the world.
10. By all accounts the US is a debtor nation which will never be able to settle its US$14 trillion debt. In other words the US is a poor debtor country, unable to discharge its loans. And it will remain a poor debtor country unless it is willing to cut back massively on its expenditure, particularly its military budget. When one is poor one lives like a poor men.
11. I remember reciting Humpty Dumpty when I was a child. That is the US today. And not all the Nobel laureates in finance, economics and accounting can put it back together once it falls.
12. Far better to admit you are poor and behave like a poor man than to wear flashy suits and throw your weight around. People will soon learn what you really are.
A New Hampshire man was shocked to learn that when he purchased pack of cigarettes he also got charged $23,148,855,308,184,500, or more than $23 quadrillion — a number that rivals that of the national debt.
“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.”
Dear Tun,
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
Malaysia also finance US military expenditure for killing people, by paying commission on income from McDonald, Kentucky Fired Chicken, CoCacola, Pepsicola, just to name a few big conglomerates. Just 1% of the income from Malaysia, US can use it to make bombs or bullet, if not fighter jet. Why can’t we promote alternatives such as Yeos, Sudirman drinks, HPA fried chicken, our own coffee brand, rather than Starbuck, coffee bean etc etc. promotes more kopitiam. The only way to hit US where it hurts is in their economy. IF countries would listen to you back then, based their currencies to Dinar emas not us green paper money. Then Obama would have to cut down on military spending and the Americans can lives more in a sober manners not arrogant like now..
In these recent years, ‘GOLD’ is our topic. So many benefits abut keeping gold and the government still doing nothing/or little about it. The real doer in keeping gold is still championed by the US government. Yes it is true that US accumulating debt, but on the backstage, US is the one and only government in the world with the real sum of gold in hand.
If they unfortunately unable to resolve the debt, they just need to release the gold and boom! their debt gone!
Dear Hendrianto,
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…
plz read financial terrorism in http://www.globalresearch.ca/index.php?context=va&aid=25967
Dearest Tun’
//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
Tun,
I still think that your rating the United States as a bankrupt nation is premature. So long as the Currency Crisis is not happening in the United States, the US Government will most likely not run into the insolvency in the near future, as there are still ample rooms for the US Federal Government to resort to debt-financing through borrowing much more from the investors who find that the US still has great potential to grow in terms of science and technology, and in terms of exploration of its natural ore reserves. Tun you may not have confidence in Americans, but there are plenty of genuine investors out there (including the investors from mainland China) believe that Americans have been bred with the good sense of instantaneous spontaneity. Americans are not like many Malaysians, who always harp their hope on the Government for spoon feeding them with some free subsidies or with upfront payment from a government projects which are being awarded to a crony.
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 Mumbo Jumbo.
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!
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).
[Source: http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt
Public debt to GDP ratio is a measure of a country’s public debt in relation to its gross domestic product (GDP). By comparing what a country owes and what it produces, the debt-to-GDP ratio indicates the country’s ability to pay back its debt. The ratio is a coverage ratio on a national level.
This measure gives an idea of the ability of a country to make future payments on its debt. If a country were unable to pay its debt, it would default, which could cause a panic in the domestic and international markets. The higher the debt-to-GDP ratio, the less likely the country will pay its debt back, and the higher its risk of default.
The shocking result does not seem to commensurate with Singapore’s ’spectacular’ growth of 14.7 percent in 2010 which was harped on non-stop ad nauseam by PAP leaders and the mainstream media.
As expected, the above findings are not reported by the Singapore media which continue to churn out tonnes of ‘good news’ to give the public an erroneous impression that the Singapore economy is ‘booming.’
An updated UBS study published last year August revealed that Singaporeans now have lower domestic wages and purchasing power after four years of PAP rule.
Another economic indicator in which official data is lacking is Singapore’s ‘household debt to GDP ratio’ which will give us a better idea about the economic conditions on the ground.
No nation in the world can survive with huge amounts of loan versus their production capacity. The old saying is “don’t spend more than you make” Hope Malaysia don’t walk down the same path either.
Tun M,benar ke rizab emas malaysia hanya 4 percent??and bon US yang dimiliki dlm 80 billion?what happen to RM if US collapsed??
Dearest Tun
May I..
//Onlooker Politics
August 8, 2011 at 11:35 am | Permalink
Tun,
Malaysia’s considerable large amount of national debts, which consist of 54% of the nation’s GDP, is not something we can celebrate about, if taking into consideration that our neighbour Singapore is basically a debt-free nation. ..//
1-I agree its best not to borrow at all.But do you know any business around that only use their money to do business because if there is many,most banks will be out of business.If countries only depend on their hard earned cash to do business and do not borrow at all their growth will be greatly hampered and there will not be many things they could do also.Borrowing is OK as long as you have the means to pay it.
2-So who told you that Singapore is debt free?Lee Kwan Yew?For your information Singapore has external debts to the tune of USD21,660 Billion or 10% of its GDP with a per capita external debt of USD$4,194.
3-Only Brunei,Macau,Palau and Leichstenstein has no external debts but there are also not so much development in these countries.
4-For your info S&P has downgrade its credit ratings for the USA from AAA to AA + and the stock markets have begun to tumble with DJIA is already now below 11000 points this morning.Lets hope this is not the beginning of Armageddon.
5-In a CNBC interview with the American people yesterday to obtain their sentiment over all these economic uncertainty one pensioner said that he is truly worried if he would still continue to receive his pensions in the years to come and said that he is now even afraid to read the morning papers.
6-I think its about time that you begin to get a second opinion to all the things that you have been hearing from your obviously anti BN and strongly pro US sources.
7-In South East Asia,except for the Singaporeans and the Malaysians who are Singaporean at heart like you,most of the countries here think that our economy is something worth celebrating.To them our achievements is truly awesome considering our size is 500 x bigger than Singapore.
8-Of course there is a hell a lot of room for improvements but over time,we would prevail if all Malaysians could keep the peace that we have secured so far and not create so much lies about our own country.
Thanks Tun
YABhg Tun,
…people are dying due to starvation in Somalia and I cannot hear any pre emptive strikes from the US to help these people out. Bomb them with missiles full of foods or use their B52s to drop carpet bombs full of foods…maybe
well….they seems to care so much about the Afgans & Iraqis….
why not the Somalis??!!
Franklin D. Roosevelt, New Deal Economics!
Production in Physical Goods is the Economy!
Credit System, creating Credit Money For Production!
Economic plan, More Power Plants(Hydro, Geothermal, Nuclear), More Electrified Railroads, Advance Organic Agriculture, Machine Tool Production, More R&D on Machinery science & technology.
Money is not Wealth, Physical Goods is!
Money is not Food. Rice is Food.
Fight the Monetary Empire!
Fight for Physical Economy!
Dear Tun…
Could u explain a bit more what will happen to Malaysia..if US goes bankrupt?It quite complicated..I suppose..
Tun Mahathir,
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 billion. 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 billion. ”
Tun, i am young in knowledge and wisdom but I do know that gold is far from the safest place in the future. There are too much speculation in the market and the one that control both the supply (which is US reserve of gold) and the demand (US mechanism to fluctuate dollar which means more demand for gold), will eventually gain when all of sudden GOLD that been invested by global countries and citizens, drop in value.
Tun, the sum being told is only “reported” but we have not underline the cumulative sum that has yet been “reported”. That is just one of the mining company of US.
Tun, no matter what someone is sick, poor or rich. Personally, I still believe that one should still hold others in good goodwill and kind concern. After all, it is just US “politicians” who throw the weight around and not representing US “common citizens” who had suffered through from this crisis.
Yours Sincerely,
Hendrianto Tjang
Tun Mahathir,
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. ”
Tun, i am young in knowledge and wisdom but I do know that gold is far from the safest place in the future. There are too much speculation in the market and the one that control both the supply (which is US reserve of gold) and the demand (US mechanism to fluctuate dollar which means more demand for gold), will eventually gain when all of sudden GOLD that been invested by global countries and citizens, drop in value.
Tun, the sum being told is only “reported” but we have not underline the sum that has yet been “reported”.
Tun, no matter what someone is sick, poor or rich. Personally, I still believe that one should still hold others in good goodwill and kind concern. After all, it is just US “politicians” who throw the weight around and not representing US “common citizens” who had suffered through from this crisis.
Yours Sincerely,
Hendrianto Tjang
YABhg Tun,
…” and I got thrown in jail…!!! ” , says Mr. Madoff…….
Tun,
Malaysia’s considerable large amount of national debts, which consist of 54% of the nation’s GDP, is not something we can celebrate about, if taking into consideration that our neighbour Singapore is basically a debt-free nation. It is always a temptation for the incumbent Prime Minister of Malaysia to spend and spend without taking into the consideration of how to pay back the national debts in the future. Basically, Malaysia has a very poor or rather ineffective system of checks-and-balances. Our rural people can be fooled easily by the Barisan Nasional politicians because RM100 cash reward will carry the meaning of best incentive for the rural people to cast vote in favour of Barisan Nasional during the General Election. The vote of the rural people is just too cheap for the resourceful Barisan Nasional and too exorbitant for the Opposition who is lack of ways and means. If the RM100 is continuing to be what the rural people want, I really have no further say about it. However, I do believe that the education will play an important role to call up the political consciousness of the rural people someday in the future. I hope one day the rural people will wake up and find that they have been deprived for too long with the lacklustre reward of only RM100 per vote from Barisan Nasional.
As for the debt situation of the United States, there should be not much of a worry for the typical American. I believe the brilliant son of Tun, Mr Mokhzani and the bright daughter of Tun, Miss Marina (both of them studied in the United States before), will be able to advise Tun that even though the Federal Government of the United States is poor, majority of the U.S. citizens are rich. Frankly, there are about 6 million U.S. citizens suffering from long-term unemployment. (The U.S. has more than 300 million population and 6 million is just 2% of 300 million). Notwithstanding, these unemployed people are still drawing the food stamps from the Social Security Office of the United States Federal Government. They will not starve to death. However, in Malaysia I usually find some Orang Asli (aborigine people) who can only afford to survive in subsistence level by consuming a tea pot of “Teh O” for a family of 4 in one whole day, with the supplementary food of some sweet potato or tapioca. It is indeed depressing for me to see that those innocent people have to be punished by continuing to live in abject poverty even though they have pledged their loyalty to Barisan Nasional for the past 54 years. Sometimes, I just find that it doesn’t pay to be a good man in Malaysia because Barisan Nasional will never appreciate it. What Barisan Nasional is showing much more concerned about is the religious matter and not the pragmatic matter: It is the concern about whether some muslim people who suffer in the long-term from financial predicament have already violated the Islamic Law by receiving the much needed financial aids from a non-Islamic religious organisation.
Come back to the U.S. Sovereign Debts, I think the debt situation will be soothed by 2012 when the 10 years’ Investment Tax Rebate Scheme (which was implemented by the Administration of former U.S. President G.W. Bush) is due to expire in 2012. The US Federal Government will then be able to collect trillion of US Dollar of Income Taxes from the profit-making businesses. Furthermore, the pressure exerted on the currently due US Sovereign bonds will be eased easily so long as the Joint Board of the Federal Reserve Banks agrees to resort to “Quantitative Easing” Measure for the third round during Obama’s Administration in order to print more US Dollar notes for debt repayment. I think Tun will be over-worry about the adverse effect of the US debt situation on Americans. What Tun should pay much more attention to is the possible happening of another round of world-wide inflationary pressure, which would be exerted by the US Federal Reserve Banks’ printing much more US Dollar Notes for release to the market. The Malaysians could never be spared from receiving the bad influence of the depreciation of the US Dollar because Malaysia relies too much on the export incomes and on the import expenditures, both of which are quoted in the US Dollar. We rely too much on the US Dollar in the financial settlement of the international trade. The world commodity prices will soar if the US Dollar depreciates. When the inflation problem is to be worsened off, many unprepared city dwellers of Malaysia will be sent to the hell of bankruptcy and abject poverty when a considerable amount of their monthly income has to be eaten up by spending on the staple food and daily home-and-workplace commuting, of which the prices have already escalating most recently.
The economic plans of Dato’ Seri Najib’s infrastructure projects will most likely be jeopardized by the anticipated next round of inflationary pressure, as the inflation-adjusted figures of the fiscal budget have always been underestimated in the mind of the PM cum Finance Minister, Dato’ Seri Najib. Many hard-working but slow-to-respond Malaysian people have lost the love of God since Barisan Nasional rules.
May God bless Malaysia and the peace-loving Malaysian people!
Salam Tun…
Saya amat tertarik dengan isu kebankrapan US ni. Saya sebagai orang yang tak berapa pakar dalam ekonomi… saya nak komen sikit dan memberi beberapa pendapat mengenai krisis mata wang dunia. Saya memperlihatkan nilai ringgit ni semakin kukuh semenjak kita menjadikan perbankan Islam sebagai tunjang ekonomi negara. Namun begitu, saya amat pelik, kenapa nilai ringgit ini tidak ditetapkan (pegging) dengan harga emas… Malah harga emas tidak akan menurun seperti matawang lain… kalau lah kita mulakan cara ini… tidak ada negara yang berani mengeksploitasikan ekonomi dan kewangan negara kita… Pengukuhan nilai emas ni disokong pula dengan sistem perbankan Islam… Nampak ekonomi kewangan negara seperti kubu besi yang tidak boleh di tebuk oleh “anasir ekonomi” luar… Malah kesannya dapat dilihat bukan sahaja membantu mempertingkatkan pendapatan, malah pengukuhan matawang itu dilihat lebih stabil… Malah akan terus meningkat nilainya… Perdagangan dunia kebanyakannya menggunakan US dollar, tu yang saya pelik kenapa kita juga menggunakan US dollar sebagai matwang perdagangan kita… sepatutnya kita perlu menentukannya dengan harga emas… contoh harga nilai dagangan diletakkan sebagai US Dollar 20 juta (RM60 juta)… tentulah nilai tersebut akan ditulis di atas kertas (cek) sebagai bayaran dalam US dollar… dan masa akan datang US Dollar 20 juta itu boleh berubah menjadi RM 65-70 juta kerana dengan turun naik nilai matawang dollar… mereka boleh mengeksploitasi keadaan ini, kerana merekalah yang menguasai matawang dunia… kebanyakannya keuntungan lebih memihak kepada kuasa besar… mereka boleh menentukan…
bukankah dengan cara perdagangan emas lebih stabil malah tiada penipuan… contoh sesuatu nilai harga tersebut ditulis di atas cek dengan nilai berat emas dan bukan US dollar… maka masa akan datang harga tersebut tetap tidak berubah kepada nilai berat emas… dan terus kekal… urusan perdagangan lebih sempurna… nilai emas terus meningkat seiring dengan nilai matawang ringgit… sekiranya negara-negara Islam menggunakan sistem ini… saya yakin… anasir matawang sudah tentu tidak akan dapat mengeksploitasi ekonomi negara2 Islam… malah, negara-negara Islam akan menjadi hub kewangan dunia dan sebgai rizab dunia berteraskan sistem kewangan Islam… Mereka akan beralih dari IMF atau Bank Dunia ke Bank Islam… Sy lebih yakin pada sistem ini berbanding sistem matawang yg kita gunakan skrg…
Dan saya tertanya-tanya kenapa pemimpin-pemimpin dunia Islam yang sedar akan keadaan ini terus menggunakan US dollar… Saya sarankan negara-negara Islam juga perlu jadikan emas sebagai matawang perdagangan, kalaulah kita ingin menjadikan negara sebagai hub kewangan Islam dunia, sy yakin hanya dengan cara ini sahaja yang dapat merelisasikannya… dan kenapa kita masih tidak memulakannya…
dear ‘ali’, if you are even a malay, you are the example of our failure – you blame everyone else but yourself on your incompetence to lead a better life. you expect the government to feed food to your mouth? i am a malay; i studied without government scholarship; i never received government grants; i work hard and smart and i am successful. you and your self sympathetic pathetic mindset will never go anywhere no matter what government malaysia has. don’t further insult the malays with your backward mentality and laziness. get a grip!
dear ‘onlooker politics’, get your facts right before speculating inaccurately or people will that that you are an idiot. and don’t insult our intelligence. malaysian foreign debt is USD86 million as at the end of quarter 1 this year. maybe u get the USD400 million from ‘malaysiakini’ or other speculative opposition backed portals.
Dearset Tun
May I..
//Onlooker Politics
August 6, 2011 at 4:18 am | Permalink
Tun,
I think it is the pot calling the kettle black again…. I believe the Malaysian sovereign debts will not be less than US$400 billion. How many percent is US$400 billion in comparison to the Gross Domestic Products of Malaysia? Why don’t Tun you tell us more about it? The Americans owed a total debt of about 110% of the nation’s GDP size and Tun you call the United States a bankrupt nation. Why don’t you take a mirror and make a reflection on yourself, Tun? And see for yourself now whether your pet Politician Dato’ Seri Najib has really brought the Malaysian Nation to the verge of bankruptcy?//
Malaysia has a national debt of rm400 billion or USD130 billion (source BNM latest)which is 54% of the GDP.Our Foreign Reserves stood at usd135Billion or RM409Billion.Our current account balance is consistently showing a surplus of USD 30 billion indicating that we are a responsible nation still living within our means.Our borrowings are mainly for infrastuctural and other productive development projects needed for our current and future growth.
The USA’s national debt on the other hand is excess of 100% of its GDP.Its current account has been consistently showing a USD500 billion deficit pre crisis(source CIA fact book) and almost a USD trillion post crisis-its expenditure is more than its income consistently for almost more than a decade,indicating clearly and obviously that it is living way beyond its means.And there is no evidence at all that it can generate any other income to settle its debts.If the Congress refuse to raise its debt ceiling the country is already bankrupted.About 31 of its states would already not able to pay the pensions prior to this ceiling raise.To make things even uglier it continued to indulge in trillion dollar wars to dominate over the oil rich countries and support its allies.
Thanks Tun
Dearest YAB & diKasihi Tun,
I hope the Malaysian Government will NOT BE LENDING anymore money to the US Government. I don’t think we should let a bankrupt nation to borrow money from us.
I should have invested my money in GOLD when Tun suggested that we use the Gold Dinar. Now I am worried about the stock markets.
I agree with the following statement: “When one is poor one lives like a poor man.” Even in Malaysia, we have people who live beyond their means. “Biar papa, asal bergaya..” Sebab itu ada yang asyik berhutang keliling pinggang, walaupun kemampuan untuk membayar tiada…berhutang untuk membayar hutang…sampai bila-bila pun takkan habis membayar hutang…
Thanks Tun.
*** May Allah SWT bless Tun and family ***
Dear Tun,
Selamat Berpuasa kpd seisi keluarga Tun.
On the issue of the US being nearing bankruptcy and what’s not, I would think that the situation will not happen simply because the US itself have ample of natural resources that it could use to sustain itself both local and overseas.
In addition, the US now may want to start “collecting” its dues from foreign countries that it had or is helping whether to rebuild the country or otherwise.
It has a strong allies in cash rich middle-east countries that it could rely on.
Internally, consumer confidence is still high.
Yes, I do think that its about time for the US to pull back its military presence overseas. In country that the US’s presence is needed, the expenditures of this military presence must be shared by the host country too.
For Malaysia and the impact of a US economy fall-out? Significant, but its just a surface scratch as compared to the impact it will have on China. And this will have a domino effect on Malaysia. I guess it is about just too late to start wanting to keep gold as preferred value keeper at the moment.
14 trillion kalau dibahagikan dengan semua penduduk dibumi ini, agak-agak seorang boleh dapat banyak mana ye. saya rasa tiada kemiskinan lagi di negara sudan. wallahualam.
Good morning Tun,
369. He knows deep in his heart what will happen if Mr Obama, the Democrat party, the representative elected by Americans, is in default.
370. Will Mr Obama be re-elected for 2nd term in 2012 with less than 20% solid votes in his 1st term from the American population?
371. Bush Junior was re-elected for 2nd term by his Republic members and he was not able to solve the terrorism crisis after 911 due to his “comboy” attitude, how cowboy is defined in Malaysia culture?
372. Comment by SYAMiLLiONAugust 5, 2011 at 1:44 pm Can u elaborate the effect to Malaysia if US declare bankruptcy?
373. If US Democrat president, Mr Obama cannot push the deal through, then, Mr Obama, may have no choice but declares default, not The US of America.
374. He who spent and borrowed money onto him will not be able to get the money back and that’s for sure.
375. DS Najib may be in default if Mr Obama cannot get the deal approved.
376. He should never put all eggs into one basket if he really believes in “Humpty Dumty effect” with the correct attitude reflected in our established culture, tradition, KLCI Index, Forex, Commodity especially gold, property, financial services and entrepreneurship.
377. By the way, Tun, as Malaysians we welcome Hanan, the Jews and Zionist, to visit Malaysia cyberspace anytime, anywhere.
378. However, if there is only 1 complaint from us that Hanan is suspecting of promoting “hatred and revenge” activity among religion bodies, MALAYSIA KDN will take action because the government follows strictly to national security act in dealing with them.
379. MOT is also very strict in Competency Driving Test, if you failed in 1 step, then you are failed.
380. Don’t get yourself mess out with the “Authority” if you trust and know them.
381. Whatever I wanna say about Amin Tan is my basic personal right which will be translated into votes in GE13.
382. I am an ethnic Chinese and that’s for sure because I will always remember that the water which I drink is from Air Paip MALAYSIA no matter where I am in Peninsula or Borneo region of Malaysia.
383. Whatever he wanna say is his right as Chinese to me though he is converted into Muslim.
384. What he did in the past, his 2nd generation may be able to correct him as time moves on with deeper understanding of Islam Civilizations as Malaysian when she is chosen to serve the country.
Good day Tun.
Salam Tun,
A Trillion is nothing. Try Quadrillion.
“When Josh Muszynski checked his bank account online, he didn’t expect to find a $23 quadrillion debit.”
Story Link is here
Tun,
I think it is the pot calling the kettle black again. Many South-East Asian nations are debt-ridden as bad as the United States. For instance, the foreign debts of Republic of Indonesia now stands for more than US$600 billion. Tun should have told us how much debt the Malaysian Federal Government does owe to foreigners as at todate, before Tun started a sarcastic criticism on the United States. I believe the Malaysian sovereign debts will not be less than US$400 billion. How many percent is US$400 billion in comparison to the Gross Domestic Products of Malaysia? Why don’t Tun you tell us more about it? The Americans owed a total debt of about 110% of the nation’s GDP size and Tun you call the United States a bankrupt nation. Why don’t you take a mirror and make a reflection on yourself, Tun? And see for yourself now whether your pet Politician Dato’ Seri Najib has really brought the Malaysian Nation to the verge of bankruptcy?
Askm Tun & fellow bloggers,
I always believe that USA has already a bankrupt country for a long time. Their economic and military ventures into many countries in other parts of the world using whatever convenient reasoning that they can use, are in fact their way to just delay for that total collapse to take place.
They have survived so far because they have the marketing skill to create good perceptions for others to retain confidence in the USA economy. The jewish lobbyist who in fact hold control of the US economy will be eventually be the master who is holding the key or the “gun to the head” of the US administration to dictate the world new order through diplomatic, politic, economic, social and finally military means to ensure the world to submit to USA.
How this can possibly happen? well if Hitler is still alive, he may say the reason why he did for what needed to be done. He left some just to allow history to judge him.
What will happen to Malaysian economy? well the result will be self-explanatory. If only we use gold instead of US dollar as visionary man you are, had promoted the idea again and again but with no response/support from others, local or foreign. Your “magic” solution to address the previous asian economic crisis should be good credential but most economic experts are not daring enough to admit their mistake.
May Allah bless us all.
Dear Tun,
Bravo Tun. What a beautiful posting. I concur 100%. You are truly brilliant and original.
There is only one way out. The US must withdraw or cease all offshore military operations immediately, including Iraq, Afghanistan and Pakistan. Huge military bases in Okinawa, Japan and military bases in Germany are taking out huge annual budget from the US. Besides annual financial aid to Israel to garrison the Palestinian in Gaza, to the tune of US$4 billion annually. These are all big budget commitment, but it takes courage to swallow its own pride.
The US should emulate the British when the British withdrew all commitment East of Suez in 1967 to reduce financial liability.
The US must eat humble pie and be Islamic. Islam is all about humility. That is the meaning of Al-Fatihah. Takabur is a sin in Islam. Otherwise, we will surely see the destruction or demise of the only superpower in the world today not unlike the fall of the Roman Empire and subsequently the British empire. Allahuakbar, Allahhuakbar, Allahuakbar.
amin tan
Dear Tun,
Bravo Tun. What a beautiful posting. I concur 100%. You are truly brilliant and original.
There is only one way out. The US must withdraw or cease all offshore military operations immediately, including Iraq, Afghanistan and Pakistan. Huge military bases in Okinawa, Japan and military bases in Germany are taking out huge annual budget from the US. Besides annual financial aid to Israel to garrison the Palestinian in Gaza, to the team of US$4 billion annually. These are all big budget commitment, but it takes courage to swallow its own pride.
The US should emulate the British when the British withdrew all commitment East of Suez in 1967 to reduce financial liability.
The US must eat humble pie and be Islamic. Islam is all about humility. That is the meaning of Al-Fatihah. Takabur is a sin in Islam. Otherwise, we will surely see the destruction or demise of the only superpower in the world today not unlike the fall of the Roman Empire and subsequently the British empire. Allahuakbar, Allahhuakbar, Allahuakbar.
amin tan
Assalamualaikum WBR to Ayahnda Tun & Bonda,
please allow me,
US is going to be bankrupt soon if they cannot pay their debts. but we are in debt with US too when we purchase the US bonds and in a way, letting US to take our money. why should we rely solely on US bonds? can we not negotiate with other rich nations like korea, japan or china and have their stake instead?
and yes, if US goes bankrupt, what will happen to Malaysia, Ayahnda Tun?
May Allah bless you both Ayahnda Tun & Bonda…
Wassalam.
just my brain waves…
Why we are worried ? We are poor as well right, do not you agree? It is been long since and now as well our self Government keeping up to improve rakyat but never succeeding the attempt, well it is improved but how the rakyat faced. Well I strongly agreed with your self . “Far better to admit you are poor and behave like a poor man than to wear flashy suits and throw your weight around” We should admitted these.
then perhaps we should persuade Central Bank to sell the US bonds and buy more gold for the reserve… if they are willing to hear us…
The American is like robbing paul to pay peter. They should reconsider their military deployment in the gulf states and reduce their huge defense expenses.
Good writings Tun. Selamat berpuasa
ha..ha…us1.000.00 = 100.00 jepun dollars chop pokok pisang bersama kerbau pada tahun kerajaan jepun perentah tanah melayu
salam tun,
Apa yang kita tengok sekarang adalah kemiskinan us. Namun, saya berpendapat mereka tidak kisah pun dikategorikan sebagai miskin sebab mmg itu yang mereka mahu. Selepas ini mereka akan bawa sekali negara2 lain bersama mereka. Mereka ada agenda lain kot. Apakah tindakan Malaysia pula bila mengetahui perkara ini?
Dear Tun,
I would to address my fear on the new development in public transportation. I hope Tun could express your thought on this matter in the near future.
The Star on 05/08/2011 reported that Konsortium XXXX Bhd. requested for them (and other express bus company) to be allowed to hire foreigner as bus driver.
My concern is, as we understand, this move will allow bus operator to reduce their operating cost (i.e. paying lower salary). In other word, the move will increase their profit margin. But again, why on earth they face the difficulty in getting the local bus driver?
I guess Malaysian are reluctant to work in this industry for the reason of low monthly salary, minimal benefit (i.e. low medical coverage against long cycle work period etc), less time with family as a result of long travel period. And yet, the pay is just too low. To make it even worst, the inflation is keep on increasing, cost of living increases, therefore the demand for better salary is understandable. Family with 3 children will require a minimum of RM3000 a month to live comfortably.
It is appreciated if the government to look into details of this proposal of hiring foreign worker as express bus driver.
Obviously this is where the Israel and the Jews lobbyists had their control over US. Many of the Jews are rich.
But US still can sell their used weapons, arsenals, etc.
And they should have learned with what happened to the Soviet Union.
Researchers or students should be warned to think about going to Germany or other European countries, Japan or somewhere else, rather than to US.
Zimbabwe today has trillion dollar notes. So all these paper currencies are just a game waiting to end.
Azlan
KL
Dearest Tun
//10. By all accounts the US is a debtor nation which will never be able to settle its US$14 trillion debt. In other words the US is a poor debtor country, unable to discharge its loans. And it will remain a poor debtor country unless it is willing to cut back massively on its expenditure, particularly its military budget…//
1-Totally in concurrence with you on this one.I just don’t get it how America inspite of all its terrible balance of payment situation could still enjoy a triple A rating from their rating agencies.
2-Its expenditure has been more than its income by over a trillion for the past two years.It has been living beyond its means for almost more than a decade already.So every year their debt will obviously only snowball.
3-The interest on these debts alone is already min USD250 billion per year which mean to say every 4 years a trillion more is added up to its national debt as they only borrow more to pay their interest.
4-But what to do,they have a responsibility to keep the world free from terrorism so they must maintain their military budget,at all cost beg,steal or borrow.Maybe,who knows, they must maintain a strong military so that they can continue to intimidate nations that may refuse to lend them more money in future .
5-The national debt has indeed reach catastrophic levels now.Due to exponential growth of interest and the compounding effect,their debt level have now hit the dangerously explosive levels.In just 2 years of Obama,he single handedly have upped the debt by USD4 trillion.When he took office from Bush the Great it was USD10-4 trillion.With every passing moment the level is only rising.
6-The ceiling has been approved by the Congress and it is now 2.4 trillion higher.Let us just see how soon they would breach this ceiling again especially in this recessionary period when not much revenue would be coming in.I don’t think they can do anything about the tax cuts already given the rich by Bush administration.
7-I think the world should brace itself for a potential economic fallout like we have never experienced before.When America sneezes the whole world will get the flu.
8-And seriously I think the signs of it about to sneeze is most evident now as compared before.Yes for anyone with the cash,Gold will be our only safe haven.
9-Good luck to all of us.
Thanks Tun
Can u elaborate the effect to Malaysia if US declare bankruptcy?
Tun M, thanks for the article..i was looking in local news about this but i couldnt find any..i got few questions..whats gonna happen to Malaysia if US declare bankruptcy?how about value of Ringgit?is our money in the bank will be safe?and what is the solution to this..should we start to buy dinar and dirham?is there any possibilities for the worst recession in history??what normal person should do?just wait and see for the worst inflation ever?
Agree with Tun on this statement:
Far better to admit you are poor and behave like a poor man than to wear flashy suits and throw your weight around. People will soon learn what you really are.
At the same time, same scenario also:
Some people are rich but pretend like poor man, in order to get priority and business with racist approach … the family is so rich already but still complain every day need help and privillege … at the end the real poor communities do not gain any help and privillege which suppose to provide to them … but hijacked by these group of cronies …