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anonymous:
December 16, 2010 at 2:28 am (Quote)
I’m surprised so many Sinkies don’t know about this. S’pore govt really otang more than 1 whole year’s worth of GDP. The big difference between Sinkie and other countries is that almost all the debts is otang to the people i.e. our CPF, i.e. almost all the debts are INTERNAL debts including the 3 local banks. So PAPies can just go their merry way, as they have us all by our balls. This is why PAPies keep on moving the retirement age and the withdrawal age later & later — they may not have enough money to give back your CPF. That’s why PAPies love for HDB prices to be sky-high, becoz this means total transfer of our CPF money to govt or the banks — govt don’t need to give us back so much CPF 20, 30 years later.
For other countries like Ireland, Greece, Iceland, most of the govt debt is otang to other countries and foreign banks (EXTERNAL debt), so it is other countries that have them by their balls. Of course Ireland, Greece and Iceland govts can just say fuck you and default on their debts, tear up all the legal contracts and dare you to invade their countries to take back your money. But if they do that, their local economy will undergo a depression, their stock markets will crash, nobody will lend them a single cent, Greece & Ireland most probably kicked out of Euro-currency, and their local currency will be useless, inflation will shoot up thru the roof e.g. how you feel if 1kg rice cost $500 etc etc. In fact Iceland, being independent of the Euro-currency, did a partial default (all their big banks) and inflated their external debts away by printing money and massively devaluing their currency. It’s a real severe hit — many of their finance / IT / services people are returning to their parents & grandparents roots — fishing in order to make a living. But they are slowly crawling out of the hole. Greece & Ireland, being part of a rigid Euro-currency bloc, cannot do the same thing. They are now being propped up by even more loans from other Euro countries & IMF. They are basically like the walking dead and will experience same economic zombie-land as Japan.
Japan was similar to Singapore — most of it’s 200% govt debt are owed to its citizens, as A LOT of middle-aged Japs buy & save their money in Jap govt bonds. This saved the Jap govt but caused them to prop up dead banks and companies, creating a zombie economy. But over the past 5 years, the percentage of external debts has been increasing as the Jap govt forced to sell more of it bonds to foreigners (borrow from foreigners instead of borrowing from Jap citizens) due to massive structural changes in the Jap population — ageing & retiring people need to sell off & redeem bonds for retirement purpose, less people in good-paying full-time jobs who can afford to buy so much govt bonds, less working people with sufficient disposable income generally etc. It’s a matter of time before Japan also faces similar problems as Ireland, Greece, Portugal, Spain and Italy as the foreigner creditors become alarm by the huge Jap govt debts and lose confidence in the ability of Jap to pay back.
December 16, 2010 at 2:28 am (Quote)
I’m surprised so many Sinkies don’t know about this. S’pore govt really otang more than 1 whole year’s worth of GDP. The big difference between Sinkie and other countries is that almost all the debts is otang to the people i.e. our CPF, i.e. almost all the debts are INTERNAL debts including the 3 local banks. So PAPies can just go their merry way, as they have us all by our balls. This is why PAPies keep on moving the retirement age and the withdrawal age later & later — they may not have enough money to give back your CPF. That’s why PAPies love for HDB prices to be sky-high, becoz this means total transfer of our CPF money to govt or the banks — govt don’t need to give us back so much CPF 20, 30 years later.
For other countries like Ireland, Greece, Iceland, most of the govt debt is otang to other countries and foreign banks (EXTERNAL debt), so it is other countries that have them by their balls. Of course Ireland, Greece and Iceland govts can just say fuck you and default on their debts, tear up all the legal contracts and dare you to invade their countries to take back your money. But if they do that, their local economy will undergo a depression, their stock markets will crash, nobody will lend them a single cent, Greece & Ireland most probably kicked out of Euro-currency, and their local currency will be useless, inflation will shoot up thru the roof e.g. how you feel if 1kg rice cost $500 etc etc. In fact Iceland, being independent of the Euro-currency, did a partial default (all their big banks) and inflated their external debts away by printing money and massively devaluing their currency. It’s a real severe hit — many of their finance / IT / services people are returning to their parents & grandparents roots — fishing in order to make a living. But they are slowly crawling out of the hole. Greece & Ireland, being part of a rigid Euro-currency bloc, cannot do the same thing. They are now being propped up by even more loans from other Euro countries & IMF. They are basically like the walking dead and will experience same economic zombie-land as Japan.
Japan was similar to Singapore — most of it’s 200% govt debt are owed to its citizens, as A LOT of middle-aged Japs buy & save their money in Jap govt bonds. This saved the Jap govt but caused them to prop up dead banks and companies, creating a zombie economy. But over the past 5 years, the percentage of external debts has been increasing as the Jap govt forced to sell more of it bonds to foreigners (borrow from foreigners instead of borrowing from Jap citizens) due to massive structural changes in the Jap population — ageing & retiring people need to sell off & redeem bonds for retirement purpose, less people in good-paying full-time jobs who can afford to buy so much govt bonds, less working people with sufficient disposable income generally etc. It’s a matter of time before Japan also faces similar problems as Ireland, Greece, Portugal, Spain and Italy as the foreigner creditors become alarm by the huge Jap govt debts and lose confidence in the ability of Jap to pay back.
