I expect a global economic turmoil within the next few years. My views are expressed here. I will be happy if I am wrong, but it is better to be prepared in case it materialises.
Well said Kin Lian. SG gov has failed to create enough good, meaningful and well-paid jobs for locals, PMETs and seniors > 40 years-old. Yet they want to raise retirement age to 62.
I see many young people become property agents, old people selling tissue-paper and university graduates pushing toxic financial products. Wonder if we had over-paid our MPs & Cabinet?
It is a speeding train that cannot be stopped or even slowed.
To stop it means world economy will grind to a halt. To slow it down would also be deterimental
Both scenarios are unacceptable because: Economies are in very much interlinked, any action from one country will affect another such as what has happened with QE1 and QE2
Solution? it has to be engineered like what has been agreed by countries ex USA not to allow their currencies to go haywire.
There is no turning back from globalisation since the 1980s.. since then the world poulation has grown, since then, each country depends on each other for either raw material( like China needs ) or labour ( like Singapore needs )
It has created a wide gap in income. This will be the agent of change. and it can happen very rapidly. As more and more poor or relatively poor people realise that the rich are getting richer without working with sweat, discontent will grow.
Unless there is real production of goods, with real increase in wages, more people will be left with less for savings and retirement.
Increase in salaries is confined only to the financial sector, be it stock markets, wealth management or investment banking. These do not produce goods.
If a pencil is produced and bought, it implies that someone needs it and will use it. If an eraser is included on one end, there is value added.
However, if it is sold with attractive packaging, value is not added, since the packaging helps market it only.
Worse, if the pencil is sold onwards to another buyer at a higher price, for no other reason except that the new buyer believes that the price will go higher based on the reason that there is no other product to buy, and that borrowing money to buy is veru cheap, than we are in deep trouble.. we are already at the edge.
Well said Kin Lian. SG gov has failed to create enough good, meaningful and well-paid jobs for locals, PMETs and seniors > 40 years-old. Yet they want to raise retirement age to 62.
ReplyDeleteI see many young people become property agents, old people selling tissue-paper and university graduates pushing toxic financial products. Wonder if we had over-paid our MPs & Cabinet?
It is a speeding train that cannot be stopped or even slowed.
ReplyDeleteTo stop it means world economy will grind to a halt.
To slow it down would also be deterimental
Both scenarios are unacceptable because:
Economies are in very much interlinked, any action from one country will affect another such as what has happened with QE1 and QE2
Solution? it has to be engineered like what has been agreed by countries ex USA not to allow their currencies to go haywire.
There is no turning back from globalisation since the 1980s..
since then the world poulation has grown, since then, each country depends on each other for either raw material( like China needs ) or labour ( like Singapore needs )
It has created a wide gap in income.
This will be the agent of change.
and it can happen very rapidly.
As more and more poor or relatively poor people realise that the rich are getting richer without working with sweat, discontent will grow.
Unless there is real production of goods, with real increase in wages, more people will be left with less for savings and retirement.
Increase in salaries is confined only to the financial sector, be it stock markets, wealth management or investment banking.
These do not produce goods.
If a pencil is produced and bought, it implies that someone needs it and will use it.
If an eraser is included on one end, there is value added.
However, if it is sold with attractive packaging, value is not added, since the packaging helps market it only.
Worse, if the pencil is sold onwards to another buyer at a higher price, for no other reason except that the new buyer believes that the price will go higher based on the reason that there is no other product to buy, and that borrowing money to buy is veru cheap, than we are in deep trouble.. we are already at the edge.
Mr tan how do u suggest we commoner on the street prepare for such eventuality
ReplyDelete