They have that in sinkieland too its called the CPF.a devilishly clever designed ponzi sinkhole.20% of ur income disappears and u never see it again till ur one foot in the grave.even then u get to see a dribble of it which is pathetic considering Aussies get $800 pension without contributing anything.
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Is financial discipline a personal or government responsibility or both?
- Thread starter scroobal
- Start date
i think is both. but here one policy that backfire on the poor and rejects from cheap fundings
Financial discipline is both a personal and joint responsibility.
1. A person must exercise financial prudence in his personal life
2. If he has a family, he and his wife must not spend beyond their means
3. The govt has a responsibility not to over burden Singaporeans, SG families with excessive levies, taxes nor charges
4. The govt must exercise financial discipline and ensure that citizen's monies are well spent. Spending $390m for an event budgeted for $90m is irresponsible
I've had no problems whatsoever with my CPF funds. They have come in extremely handy. I used them to buy a nice beachfront holiday home 5 years ago. I still have money there but it is a small sum which will be good for a rainy day.
lol u staying in a tent at east coast park?
No it was a bach at the Coromandel. Property values are on the way up there as everyone likes beachfront properties.
The CPF might have started out to help Sporeans save for their old age but the PAP has turned it into a tool to enrich themselves.
Where else but in Spore do you "rent" a HDB unit for hundreds of thousands of $. It's all possible because of the CPF scam. CPF is nothing more than the Lees piggy bank for all their invstments.
I doubt that there is anything left in there & that is why they refuse to release any information on where it is invested.
Leave it to the wife !
As is the case with ALL policies, the key is to see how you can make the policy work to your advantage.
In the case of CPF it comes in very handy when buying property. Whenyou sell, you only have to put back what you took out plus interest. The profit is yours to keep. CPF funds helped me realise a huge capital gain.
Had I not been able to use CPF funds, I would have had to resort to taking a loan which would have been more risky and a lot more expensive.
The only thing you've proven is that emigration is the way to unlock CPF funds. That does not mean the current CPF OA structure is good for Singaporeans.
Reaching 55 is also an excellent way to unlock your funds.
not anymore.
not when the 55 becomes a higher figure as and when the estab wants it to.
What financial discipline? Sinkies are already screwed for life when they take the mortgage loan for their first HDB flats. PRs are able to take similar loans for re-sale HDB flats but then, they can sell off the flats, clear their CPF and walk away from SG.
Sinkies can also sell off their HDB flats but the proceeds go back to their CPF for another house or flat. You don't want to buy? Camp at East Coast or West Coast beach. From youth to old age, every sinkie is screwed even he has the best financial discipline in SG.
what you said is very true.
But read my post#24 again. I also said that it is a joint responsibility. while we need to exercise financial prudence, the govt must also not over burden Singaporeans (S/N 3)
not anymore.
not when the 55 becomes a higher figure as and when the estab wants it to.
The figure is adjusted for inflation which is a prudent thing to do. It can easily be estimated simply by plugging an inflation rate of 2 to 3%.
http://mycpf.cpf.gov.sg/CPF/my-cpf/reach-55/Reach55-2.htm
One of my relatives just withdrew more than $600,000 from his CPF at 55. He was very happy and has invested in property in the South Island of NZ.
What does Ho Jinx and TemaSICK have against Andy?
Knowledgeable, articulate and dares to speak truth to power?
In China the "Communist" party uses monetary policy
Sinkieland's Lightning is much more sophisticated
But one cannot expect to fool all people all of the time
Using CPF to rob people eventually triggers mass unrest
China is right to try to end its bubble addiction
Andy Xie says China has recognised that tightening the money supply is the way to rein in the excesses of the past, and, along with curbing corruption, is good for long-term economic health
China's economy is slowing. It is good news. It reflects that China's economy is finally ending its bubble addiction. Even better, the central government remains calm over the slowing news. All signs point to China's new leadership taking the plunge to digest the excesses from sometimes crazy stimulus policy under the previous government.
From 2004, China pursued a bubbly path by refusing to rein in monetary growth despite inflationary pressure and an emerging labour shortage. The bubbly path was amplified by a slow but steady appreciation of the renminbi against the dollar.
The perception of a sure winner enticed a huge amount of hot money to flood into China. The resulting liquidity orgy caused one asset bubble after another.
After China joined the World Trade Organisation, it became the factory for the world. The success is due to the competitiveness of Chinese workers. China's wealth is created at factories and construction sites by workers who are as productive as their counterparts in the West but paid one-eighth to one-tenth as much.
A consequence of China's bubbly path is wealth redistribution to the vested interests, who can line their pockets from negative real interest rates. As the credit bubble lasts, the credit-to-GDP ratio has surged. China's credit is twice its gross domestic product.
The real interest rate should be equal to total factor productivity. In China's case, it should be 4-5 per cent. Instead, if one uses a GDP deflator as the real gauge for inflation, China's real interest rate is about minus 5 per cent. The macro policy redistributes a percentage of GDP from the people to vested interests. This is the biggest reason that China's household consumption is one-third of GDP instead of a normal 50 per cent for such an emerging economy.
The state-owned enterprises [in Sinkieland read GLC, GIC, TemaSICK] are the biggest beneficiaries. They have grown their assets massively in the past decade. But their returns on assets have deteriorated. Fast growth of an inefficient sector could only be made possible by massive subsidies. In China's case, it is done through monetary policy.
Financial transactions have become a major money spinner for those who can control them. When the subsidy is so big, the demand of course exceeds supply. Hence, who gets credit becomes a privilege. Those who can arrange access can take a cut.
Redistribution through manipulating finance seems like a victimless crime. Few people are willing to fight a battle against a predatory monetary policy. There are no names for people to focus their fury on. Hijacking monetary policy to enrich vested interests appears to be the favoured form of corruption in the 21st century. Sicilian-style mobs are definitely passé.
China's property bubble is really a tool for the monetary bubble. It is where the printed money is warehoused. Local government debt is another sinkhole.
Real rich people are cash rich. For some to be cash rich, there must be an equal amount of debt for others. Hence the unique discussions in China on where to sink the printed money to contain inflation. Wouldn't it be nice to print less to contain inflation in the first place?
Deflating the monetary bubble and implementing an anti-corruption campaign are the only effective means to restore China's vitality and resume its course to becoming a developed economy. China has been talking about rebalancing the economy for a decade. But the economy has become more unbalanced. The reason is the policy that puts short-term growth above all other objectives.
The excuse is the necessity to create 10 million jobs a year. Otherwise, unemployment will trigger social instability. This mantra is being repeated in all quarters despite a widespread labour shortage for all factories and construction sites. There is little doubt that the propaganda is to prolong a macro policy that favours a few at the expense of all others.
China is well positioned to absorb the fallout of a deflating credit bubble. A cooling economy removes some pressure in the labour market. It gives exporters more breathing room. An unemployment crisis is highly unlikely, removing the most important concern over a slowing economy.
A deflating bubble makes things cheaper. It increases household purchasing power and, hence, consumption. Wages are rising, probably faster than labour productivity. As long as the consumer price index doesn't rise even faster, the share of household consumption in the economy will rise. Stimulus prevents market forces from rebalancing the economy. Letting the market go is indeed the right recipe.
Corruption imposes a significant cost on the Chinese economy, and the burden is spread among people through an inflation tax. An anti-corruption campaign can remove most of the cost. In the short term, some rue the negative effect of deserted luxury entertainment venues on the economy. The business consumption, about one-tenth of GDP, is declining. But, as the money is not there, it goes to the people at large. A falling mao-tai price, for example, restores the demand from the middle class. In the end, mao-tai is consumed. When it is consumed by ordinary people, it goes into household consumption. The economy becomes more balanced.
China is at the crossroads. It must not allow speculation and corruption to continue. Using monetary policy to rob people eventually triggers mass unrest. The new leadership has shown determination to revive the country. And tightening money supply is the only way to restore China to its only path to prosperity: rewarding hard work.
Andy Xie is an independent economist
How to? Nothing is free in sinkie land. Sinkies can be mindful about exercising self financial discipline but will the pappies make housing, education, hospital, etc more affordable for low income and middle income sinkies? Every sinkie is mired in financial commitments once he enters the market to work.
If PR buay song, he uproots and goes back home with his CPF savings, personal savings, etc and start a new life, rich and free. Sinkies are stuck for life.
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That's rubbish. There are plenty of Sinkies with money to spare. The only ones who struggle are those who live beyond their means and this applies to anyone in any country not just Singapore.
Neither a borrower nor a lender be
Do not forget stay out of debt
Dealing with banks on the other hand
Is fine provided you exercise
Due diligence and fair arm's length terms
Allowing yourself to be forced to lend
To Gahbraments or TemaSICKS
Without proper due diligence and accountability
Is StewPIGdity worthy of a Sinkie
