pywong
11th March 2009, 07:18 AM
It is reported here (http://www.thestar.com.my/news/story.asp?file=/2009/3/10/minibudget/20090310161134&sec=minibudget) that Najib is proposing a RM 60 Billion Budget stimulus.
Let's have a quick look at the numbers:
Original 2009 budget: RM 206 B (budget deficit 4.8% GDP)
First Stimulus I: RM 7 B (1% GDP)
Mini-budget RM 60 B/2 years: RM 30 B (4.5% GDP)
Estimated revenue shortfall: RM 100 B (14% GDP)
(RM 50 B due to fall in oil price, RM 10 B due to fall in palm oil price, RM 40 B due to reduced exports in other sectors)
This is a budget deficit exceeding 24% of GDP.
The questions we need to ask ourselves:
1. Can we trust UMNO to handle our money honestly? Can we expect the money to be properly spent if UMNO still maintain their current patronage system of politics?
2. Why are we increasing the govt staff by another 63,000? At 1.2 million, our bureaucracy is one of the highest in the world and is suffocating private business with their red-tape and corruption. We can stimulate the economy much better by reducing red-tape.
As Isa Rahim has said, one of the big bug-bears is the customs department at all the ports of entry. Their inefficiency and corruption increases the cost to the consumer significantly.
3. RM 480 million is to be handed over to the Toll Concessionaires, which we know is a financial sleight of hand to pass money to the UMNO cronies.
4. RM 5 B to be drawn from the public through a Savings Bond with 5% interest rate. We, the Rats, will be suckers if we take it up. Inflation will reduce the value of the RM. That will depend on how much the USD crashes, and crash it will.
5. Why bother with tourism when the Federal Ministry of Tourism cannot even co-operate with the PR State Tourism because of their politics of revenge? Remove this impediment. That is a better indication of sincerity to help the tourism sector.
6. Who is going to pay for all these deficits? Our children and grand-children?
What is the solution?
1. Cut down on your expenses to the bare minimum.
2. Put all your savings in gold to protect its purchasing power.
Consumer spending usually accounts for a significant amount of the economy. If we stop spending the reduction in growth will squeeze the economy so hard that eventually, UMNO will fall.
Let's do it. Short-term pain for long-term gain!
Let's have a quick look at the numbers:
Original 2009 budget: RM 206 B (budget deficit 4.8% GDP)
First Stimulus I: RM 7 B (1% GDP)
Mini-budget RM 60 B/2 years: RM 30 B (4.5% GDP)
Estimated revenue shortfall: RM 100 B (14% GDP)
(RM 50 B due to fall in oil price, RM 10 B due to fall in palm oil price, RM 40 B due to reduced exports in other sectors)
This is a budget deficit exceeding 24% of GDP.
The questions we need to ask ourselves:
1. Can we trust UMNO to handle our money honestly? Can we expect the money to be properly spent if UMNO still maintain their current patronage system of politics?
2. Why are we increasing the govt staff by another 63,000? At 1.2 million, our bureaucracy is one of the highest in the world and is suffocating private business with their red-tape and corruption. We can stimulate the economy much better by reducing red-tape.
As Isa Rahim has said, one of the big bug-bears is the customs department at all the ports of entry. Their inefficiency and corruption increases the cost to the consumer significantly.
3. RM 480 million is to be handed over to the Toll Concessionaires, which we know is a financial sleight of hand to pass money to the UMNO cronies.
4. RM 5 B to be drawn from the public through a Savings Bond with 5% interest rate. We, the Rats, will be suckers if we take it up. Inflation will reduce the value of the RM. That will depend on how much the USD crashes, and crash it will.
5. Why bother with tourism when the Federal Ministry of Tourism cannot even co-operate with the PR State Tourism because of their politics of revenge? Remove this impediment. That is a better indication of sincerity to help the tourism sector.
6. Who is going to pay for all these deficits? Our children and grand-children?
What is the solution?
1. Cut down on your expenses to the bare minimum.
2. Put all your savings in gold to protect its purchasing power.
Consumer spending usually accounts for a significant amount of the economy. If we stop spending the reduction in growth will squeeze the economy so hard that eventually, UMNO will fall.
Let's do it. Short-term pain for long-term gain!