Someone asked for my views about the impact of quantitative easing on the Singapore economy. I must confess that I am not an economic expert but I believe that most economists are also unsure about the likely impact of these measures.
My own views are pessimistic, as expressed in this article about the Global Economic Turmoil. The low interest rate, stimulus package and quantitative easing adopted in America is causing asset bubbles around the world. In the short term, stock markets and property prices have shot up, but these are likely to cause a lot of problems in the months ahead.
America hopes to create more jobs with these measures. They expect the jobs to be created with the recovery of economic growth. I expect that these measures will fail to create the jobs, due to globalization, wide disparity of income, uncertainty of the future and other factors. If America goes into a double dip recession, it will reduce demand for the rest of the world and cause problems in the emerging countries that depend on consumer demand in America. It does not make sense to ask give money to a debtor to spend.
The long term solution is an economic system that can provide jobs for everyone who is willing to work. This will not come with the current economic structure, which is based on competition. It requires a new approach to distributing the work opportunities in a fair and regulated market, which will continue to be a free market in giving choice to workers and employers. My ideas are contained in this article on Creating Employment.
In the short term, the asset markets are booming, due to cheap money. You can join the party for the fun. But, like all bubbles, the pain has to come afterwards.
Tan Kin Lian
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11/07 - 11/14
- Wisdom on How to Live Life - Dr. Tommy Wong
- Financial planning book - discount of 33.3%
- Recent events and financial literacy
- Invest in preference shares
- Youth gangs
- Product Highlight Sheet for DBS Preference Shares
- Preference shares - perpetual and redeemable
- Medishield for a pensioner
- DBS Preference Shares
- But agents exert powerful sway over buyer's choice...
- Gideon Lee: Buyers, not agents, decide the product...
- Churning of Life Insurance Policies
- Financial Planning Talk - 4 Dec 2010
- Talk to NTU Risk Management Society
- Visit to Masdar City
- Political parties and general election
- Choice of insurance plan and cost
- Resource materials in TKL website
- Past general elections in Singapore
- Extract the key information from a webpage
- MacDonald's Monopoly Promotion
- Financial Planning book at 40% discount
- Two key factors insurance buyers don't know
- What is "churning" ?
- Abu Dhabi and Masdar
- Win-win approach
- Capital controls to stop asset bubbles
- Interesting topics in SGEP
- Quantitative Easing - impact on Singapore
- Dubai - hassle free for travellers
- Water, Water Everywhere
- FISCA Talk - Consumer Guide to Insurance
- Different Types of ETFs
- Is life insurance good or bad?
- General Election in Singapore - latest news from t...
- How to say "No" to an insurance agent
- Consumer finance portal launches here
- Tangram and Shape Quiz
- Creating employment
- Bank interest rate - discriminatory practices
- Managing personal risk - importance of savings
- Cost of term insurance
- Online courses
- How to Pick Your Next Computer
- Guiding a child to financial independence
- Measure of economic progress
- Reply to Jeffrey Tan, President of IFPAS
- Bread Talk and Bread Life
- Cheated on inferior products
- Global Economic Turmoil
- How people vote
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