1. Someone asked me to give my views the articles written by Professor Christopher Balding regarding the finances of the Singapore Government. A summary of his article is shown here:
2. Here are the key points:
a) During a period of 20 years from 1991 to 2010, the Singapore government borrowed $250 billion and had a budget surplus of $262 billion, making a total of $512 billion.
b) If this money is invested to earn the average yield, it should accumulate to $1,000 billion, or $1 trillion.
c) The total assets of Temasek Holdings and GIC is estimated to be $500 billion, a part of which were accumulated prior to 1990. According to Professor Balding, there must be more than $500 billion in assets that are missing?
d) There are $300 billion in foreign reserves managed by the Monetary Authority of Singapore. Professor Balding argued that this is accounted by the current account surplus, and is not related to the $500 billion that is missing.
3. Can you identify some possible gaps in the reasoning given by Professor Balding? I do not agree with his reasoning, so there is the possibility that he is right, or maybe wrong.