OMG the resilence package not all is drawn from reserve!! we need to loan!!! what happen to our reserve!!!! we the rakyat need ANSWER

[eatshitndie]

in this thread i will defend the rationale for sg to partially finance the emergency budgets from two sources, primarily at 69% (no joke) with reserve draw-downs and secondarily at around 30% with loans from "fiscally neutral" parties (and foreign banks - my insert). why not? the prime lending rate in japan is only 1.05% and in sweetzerland 2.53%. right now due to low prime lending rates in several fiscally neutral cuntries, it's wise to take advantage of loans from these cuntries' lenders. sg can lock in the loans at these low rates for several years, and within the next decade or so (my estimate is 6.9 years for the recovery phase, yes you hear it first here on sbf) will make up for it and even surpass the cost associated with the low rates through tax collection, levies and other revenues earned by the gov. this will also help preserve the reserve from drawing down too much (from the critical point of maintaining a healthy reserve ratio relative to gdp). any responsible gov just cannot draw down from its reserves indiscriminately without maintaining a healthy balance. but when there are international lending institutions that are reliable and long term with very low prime rates, why not borrow some during an emergency?

 

[LordElrond]

in this thread i will defend the rationale for sg to partially finance the emergency budgets from two sources, primarily at 69% (no joke) with reserve draw-downs and secondarily at around 30% with loans from "fiscally neutral" parties (and foreign banks - my insert). why not? the prime lending rate in japan is only 1.05% and in sweetzerland 2.53%. right now due to low prime lending rates in several fiscally neutral cuntries, it's wise to take advantage of loans from these cuntries' lenders. sg can lock in the loans at these low rates for several years, and within the next decade or so (my estimate is 6.9 years for the recovery phase, yes you hear it first here on sbf) will make up for it and even surpass the cost associated with the low rates through tax collection, levies and other revenues earned by the gov. this will also help preserve the reserve from drawing down too much (from the critical point of maintaining a healthy reserve ratio relative to gdp). any responsible gov just cannot draw down from its reserves indiscriminately without maintaining a healthy balance. but when there are international lending institutions that are reliable and long term with very low prime rates, why not borrow some during an emergency?

I hope they take a USD denominated loan to balance of the 151Bn in US bonds

 

[SalahParking]

Obviouly the rogue gov reason cannot be valid anymore.

When their own PAP enterprise is in deep shit, drawing from the reserves to save themselves first seem necessarily valid.

 

[eatshitndie]

I hope they take a USD denominated loan to balance of the 151Bn in US bonds

the current u.s. (fed) prime rate is 3.25%, thus unlikely for any usd denominated loans. euro denominated loan is better at 1.9% bank lending rate in germany. better than the swiss rate, but not the jippun rate.

 

[LordElrond]

the current u.s. (fed) prime rate is 3.25%, thus unlikely for any usd denominated loans. euro denominated loan is better at 1.9% bank lending rate in germany. better than the swiss rate, but not the jippun rate.

Hmm this is not good. By the time we get back the USD capital it would have depreciated beyond recognition. I hope Trump will have some success in bringing factories back to America and reduce its reliance on imports hence reducing external trade GAP. Otherwise Sinkies reserves would be flushed down the drain. It’s spare change for China and Japan but it’s our CPF money for Sinkie’s case.

 

[eatshitndie]

Hmm this is not good. By the time we get back the USD capital it would have depreciated beyond recognition. I hope Trump will have some success in bringing factories back to America and reduce its reliance on imports hence reducing external trade GAP. Otherwise Sinkies reserves would be flushed down the drain. It’s spare change for China and Japan but it’s our CPF money for Sinkie’s case.

u.s. are still the largest and richest market in the world for sg sexports. no choice. if sg wishes to sexport to u.s. must maintain u.s. securities.

 

[LordElrond]

u.s. are still the largest and richest market in the world for sg sexports. no choice. if sg wishes to sexport to u.s. must maintain u.s. securities.

Protection fee payment.

 

[mojito]

Borrow 22 billion and it’s a fiscally neutal loan?

Interests free loans? I also want to borrow leh...

Off the books lor. Return time also can off the books?

 

[eatshitndie]

Protection fee payment.

trade inconvenience but it's a reality no cuntry can avoid, including your motherland prc.

 

[vamjok]

in this thread i will defend the rationale for sg to partially finance the emergency budgets from two sources, primarily at 69% (no joke) with reserve draw-downs and secondarily at around 30% with loans from "fiscally neutral" parties (and foreign banks - my insert). why not? the prime lending rate in japan is only 1.05% and in sweetzerland 2.53%. right now due to low prime lending rates in several fiscally neutral cuntries, it's wise to take advantage of loans from these cuntries' lenders. sg can lock in the loans at these low rates for several years, and within the next decade or so (my estimate is 6.9 years for the recovery phase, yes you hear it first here on sbf) will make up for it and even surpass the cost associated with the low rates through tax collection, levies and other revenues earned by the gov. this will also help preserve the reserve from drawing down too much (from the critical point of maintaining a healthy reserve ratio relative to gdp). any responsible gov just cannot draw down from its reserves indiscriminately without maintaining a healthy balance. but when there are international lending institutions that are reliable and long term with very low prime rates, why not borrow some during an emergency?

 

[vamjok]

in the world where got such a thing as free lunch. I also want to find a bank that can give me a "fiscally neutral" of 20 billions loan.

 

[laksaboy]

in the world where got such a thing as free lunch. I also want to find a bank that can give me a "fiscally neutral" of 20 billions loan.

It's possible if you put up a substantial collateral. But us Sinkies will never find out exactly what that collateral was, will we?

 

[LordElrond]

trade inconvenience but it's a reality no cuntry can avoid, including your motherland prc.

Let’s see. Give it a few more years.

 

[mako65]

SIA alrdy signed da $billion$ deal for 39 Boeings 2-3 years ago! Hahaha..bought from our ally!

 

[zhihau]

1 question, are we able to see the itemised bill/invoice?

What are we exactly spending on?

 

[eatshitndie]

in the world where got such a thing as free lunch. I also want to find a bank that can give me a "fiscally neutral" of 20 billions loan.

of course no free lunch. it all depends on cost of loan, duration of loan, and rate of return on investment like cowbellc has mentioned. in this case the “investment” is keeping businesses afloat, staving off commercial and personal bankruptcies, and maintaining a semblance of an economy no matter how devastated in the short to mid term in order to reap their corporate taxes, income taxes, gst, rents, levies, fees, duties, conveyancies, etc., when they recover in the longer term. if majority of businesses and enterprises collapse, unemployment spikes, and more than 69% of the population lives in poverty, gdp sinks to zimbabwe level, sgd becums toilet paper, and what remains of the reserves is raided anyway, the point of no return becums inevitable, and this debate and sexercise becum moot or pointless. borrowing less than one third of total budget needed to overcum immediate cash flow issues on a massive scale at low rates is a small price to pay but is well worth it when economy recovers to previous level just before the onset of disaster. it’s not free but it’s cheap compared to the steep expense and or heftier price of going all-in and gambling solely with the reserves. many cuntries’ banks would love to loan sg $22b as sg is a well-oiled (no pun intended), efficiently-run, reliable, dependable, responsible, and credit-worthy borrower. in fact, $69b can be easily arranged. it will be so competitive that sg has to go through several proposals and pick the (lucky) winners.

 

[Confuseous]

Leave aside all the high finance talk. The issue is in all the
speeches and interviews, at no time HSK made mention of
taking any loan and that the money was there for use
because of past prudent policies. And the fact became known
because someone asked a question. Not exactly transparent.

 

[zhihau]

And the fact became known because someone asked a question. Not exactly transparent.

Anyone asked for an itemised bill/invoice yet?

 

[Confuseous]

Anyone asked for an itemised bill/invoice yet?

They have not even officially confirmed whether there
has been a loan. Don't be surprised if creative reasons
are given for the creative accounting and creative
presentations.

 

[zhihau]

They have not even officially confirmed whether there has been a loan. Don't be surprised if creative reasons are given for the creative accounting and creative presentations.

Altogether now!!! HUAT AH!!!