Rising asset prices good? Think again!

[hockbeng]

We've been told by the Gov many times that rising asset prices are a good thing cos it builds wealth. (Esp home prices).

Those guys should return to study economics. If creating wealth through inflation is so simple, then Govs around the world can just print money and flood the economy with cash and everyone gets rich. Exactly what is being done now.

The truth is someone has to pay for it:
1. The new graduates or those just entering the workforce. They will see their purchasing power wiped out. Doctors, lawyers, engineers, teachers cannot afford to buy what these professions could 20 years ago.

2. CPF money gets wiped out: it will buy you nothing; even if you get a chance to spend it. (again the younger generation will be affected most).

3. Insurance policies/plans get wiped out: When asset prices rise, everything rises like a rising tide including healthcare. If you fall sick, your payout will buy you less and less with time.

Again our Gov says they dont worry about income gap but their focus is just to create jobs.

Agian they dont understand what is it about a job that people are after. It's not about work; its about consumption.
We get a job so that we can consume, and the more we consume, the higher the standard of living.

We may get paid more in nominal values but if our consumption stagnates or declines, then our standard of living declines.

Having a job without consumption = modern day slavery. That's whats happening in china and I'm afraid spore is heading that way.

 

[cheekenpie]

My econs not v good but i think rising asset price does not equal inflation. I thought inflation is determined by money supply??

 

[Leongsam]

Those guys should return to study economics. If creating wealth through inflation is so simple, then Govs around the world can just print money and flood the economy with cash and everyone gets rich. Exactly what is being done now.

The Singapore govt has not created wealth by printing money. It has created wealth by harnessing resources and adding value.

Had it not been for rising asset prices PLUS the appreciation of the SGD vs the rest of the world over the years, I would not have been able to retire before 40.

I am truly grateful to the PAP for their ability to create real wealth thus enabling me to cash out of Singapore and settle down in OZ in relative luxury. I have Malaysian and South African friends who wish they were as fortunate as I was. Their currencies went south along with their asset values and they still need day jobs to make ends meet.

Count your blessings and stop whinging and whining. It makes you appear really pathetic.

 

[tonychat]

Exactly, The sg currency is one of the tops in the world. But the sinkie character sort of polluted it.

 

[tonychat]

high price so what?

sell already live where?

Your brain is only within the 640 sq km, of course you dunno where to live. So sad.

 

[Leongsam]

high price so what?
sell already live where?

I'm running low on server resources. If you haven't got anything worth saying, please shut the hell up or I'll be forced to purge all your one liners.

 

[Leongsam]

Your brain is only within the 640 sq km, of course you dunno where to live. So sad.

Sinkie frogs can only be happy in one well. Leaving it would be far too daunting a journey.

​

 

[tonychat]

((Your brain is only within the 640 sq km, of course you dunno where to live. So sad.))

is this also a 1-liner?

why you double standard? so now I have 2 lines. should be acceptable right?

What Sam is trying to imply is that even if it is a one liner, it must be in some way intelligent and educated.

Not some sinkie polluted sentence that put a shame to your PAP education that you have received in your sinkieland.

 

[hockbeng]

The Singapore govt has not created wealth by printing money. It has created wealth by harnessing resources and adding value.

Had it not been for rising asset prices PLUS the appreciation of the SGD vs the rest of the world over the years, I would not have been able to retire before 40.

I am truly grateful to the PAP for their ability to create real wealth thus enabling me to cash out of Singapore and settle down in OZ in relative luxury. I have Malaysian and South African friends who wish they were as fortunate as I was. Their currencies went south along with their asset values and they still need day jobs to make ends meet.

Count your blessings and stop whinging and whining. It makes you appear really pathetic.

Read what I wrote carefully you twit!

Money supply has indeed increased through the printing press. The USA has exported inflation to the rest of the world since the gold standard was dropped in 1971. When the USA prints money, we print as well cos they are our number 1 trading partner. We get their USD and they get our stuff that we make.

Like I said: you benefitted from high asset prices and sold out. Someone else has to pay for it and nothing is free.

Morons like youself should go read more since you have so much free time.

 

[Leongsam]

Money supply has indeed increased through the printing press. The USA has exported inflation to the rest of the world since the gold standard was dropped in 1971. When the USA prints money, we print as well cos they are our number 1 trading partner. We get their USD and they get our stuff that we make.

Every country prints money. Well run countries are careful about how much they print. Poorly run countries like Zimbabwe print with reckless abandon.

When I was a kid, 1 USD cost 3.5 SGD. 1 GBP cost 8 SGD.

When I retired, 1 USD cost 1.3 SGD. 1 GBP cost 2.4 SGD.

I believe that wealth is NOT a zero sum game but even if it was, who the hell cares if someone else paid for it. There are more than 6 billion people on this earth fighting over ever dwindling resources. You can choose to win the fight or you can spend your time crying for your mummy in a cyberspace forum. The choice is yours. I've already made mine.

 

[hockbeng]

My econs not v good but i think rising asset price does not equal inflation. I thought inflation is determined by money supply??

Money supply has incrased massively since USA dropped the gold standard.(The last country to do so).

Now without the discipline that Gold imposed, Govs throughout the world printed money like crazy cos they could never balance the budget.

Spore being export driven had no choice but to print along as well otherwise our currency would have strengthened even more and make our exports too expensive.

So when USA prints, we must also print.

Remember in the past where families could depend on 1 family member's income to survive but its not possible today. Our salaries just hasn't caught up with the increase in money supply.

 

[hockbeng]

Every country prints money. Well run countries are careful about how much they print. Poorly run countries like Zimbabwe print with reckless abandon.

When I was a kid, 1 USD cost 3.5 SGD. 1 GBP cost 8 SGD.

When I retired, 1 USD cost 1.3 SGD. 1 GBP cost 2.4 SGD.

I believe that wealth is NOT a zero sum game but even if it was, who the hell cares if someone else paid for it. There are more than 6 billion people on this earth fighting over ever dwindling resources. You can choose to win the fight or you can spend your time crying for your mummy in a cyberspace forum. The choice is yours. I've already made mine.

No one is crying for anyones mummy asshole.

Maybe we should meet in the cul-de-sac and I'll make you cry mummy. You game?

 

[Leongsam]

Remember in the past where families could depend on 1 family member's income to survive but its not possible today. Our salaries just hasn't caught up with the increase in money supply.

The poorer section of Singapore society never survived with one bread winner even way back in the fifties and early sixties. The middle income earners could.

Exactly the same situation exists today. The difference is in the fact that middle income families have the desire to display the trappings of wealth. Husbands and wives both work so they can enjoy the luxuries of slave labour, fancy watches and handbags, flashy cars and overseas holidays.

If the middle class were willing to live the simple life, they'd find that one income would be more than enough.

 

[Leongsam]

No one is crying for anyones mummy asshole.

Maybe we should meet in the cul-de-sac and I'll make you cry mummy. You game?

Typical sinkie mentality. Can't win a debate so you start talking like a two bit gangster. :oIo: Go away Shoo! You've lost it big time.

What's the point of starting a thread if you can't accept challenges to the validity of your statements. What do you expect from your threads???? a long list of "I agree with your wholeheartedly" statements of affirmation to prop up your limited self esteeem?

 

[hockbeng]

Typical sinkie mentality. Can't win a debate so you start talking like a two bit gangster. :oIo: Go away Shoo! You've lost it big time.

What's the point of starting a thread if you can't accept challenges to the validity of your statements. What do you expect from your threads???? a long list of "I agree with your wholeheartedly" statements of affirmation to prop up your limited self esteeem?

Meet in cul-de-sac gangster meh?
Someone else's quote not mine.

You sure you're in OZ land? How you survive there man.

You man or woman by the way?

 

[Watchman]

We've been told by the Gov many times that rising asset prices are a good thing cos it builds wealth. (Esp home prices).

Those guys should return to study economics. If creating wealth through inflation is so simple, then Govs around the world can just print money and flood the economy with cash and everyone gets rich. Exactly what is being done now.

Having a job without consumption = modern day slavery. That's whats happening in china and I'm afraid spore is heading that way.

I am afraid everything you said is true .
And it be a constant reminder and warning to all
who wants the short cut out .



The only way to limit their expansion is stop spending and not letting them have it easy .

Lets see if they everyone will try to bail themselves out or ask government for assistance .

If government give assistance then we are done for and doom in a sense .

Too big to fail and too small to be saved .

 

[DrPanacea]

We've been told by the Gov many times that rising asset prices are a good thing cos it builds wealth. (Esp home prices).

Those guys should return to study economics. If creating wealth through inflation is so simple, then Govs around the world can just print money and flood the economy with cash and everyone gets rich. Exactly what is being done now.

The truth is someone has to pay for it:
1. The new graduates or those just entering the workforce. They will see their purchasing power wiped out. Doctors, lawyers, engineers, teachers cannot afford to buy what these professions could 20 years ago.

2. CPF money gets wiped out: it will buy you nothing; even if you get a chance to spend it. (again the younger generation will be affected most).

3. Insurance policies/plans get wiped out: When asset prices rise, everything rises like a rising tide including healthcare. If you fall sick, your payout will buy you less and less with time.

Again our Gov says they dont worry about income gap but their focus is just to create jobs.

Agian they dont understand what is it about a job that people are after. It's not about work; its about consumption.
We get a job so that we can consume, and the more we consume, the higher the standard of living.

We may get paid more in nominal values but if our consumption stagnates or declines, then our standard of living declines.

Having a job without consumption = modern day slavery. That's whats happening in china and I'm afraid spore is heading that way.

I agree with your points.

 

[hockbeng]

Typical sinkie mentality. Can't win a debate so you start talking like a two bit gangster. :oIo: Go away Shoo! You've lost it big time.

What's the point of starting a thread if you can't accept challenges to the validity of your statements. What do you expect from your threads???? a long list of "I agree with your wholeheartedly" statements of affirmation to prop up your limited self esteeem?

No one is interested in your comments, esp from some half-baked Oz/Nz.

 

[Leongsam]

No one is interested in your comments, esp from some half-baked Oz/Nz.

That's a bit rich coming from someone who has responded to every single one of my posts in this thread.

 

[hockbeng]

That's a bit rich coming from someone who has responded to every single one of my posts in this thread.

Are you really a man?