Truth Exposed why PAP reduced CPF returns from 6.5% to 2.5%

[frenchbriefs]

bro let me tell u the real reason,after albert wisemeus,dutch economist retired after working for singapore for nearly 20 years,the PAP starting engaging in this type of fuckaroo economics.....why the fark would they use the nation's savings to create such a crazy HDB ponzi bubble?what if one day the bubble were to burst due to mass hysteria say economic downturn and poor market sentiments.....the price of HDB flats will collapse and the hundreds of billions from CPF used to fuel this HDB bonanza will disappear into thin air like the housing crisis USA in 2008 because the "value" of HDB flats is essentially nothing but a few slabs of concrete and "land costs".

basically the government took the sinkies for a joyride took all ur money to play this game of lets see how high we can make the housing market go,lets make everyone a millionaire.....these fucker PAPees need to tried for treason and hang like those bankers in 2008.

Topsage, you have shown the numbers, but you have not exposed anything. Your theory is that once the old guards were replaced, than CPF interest was cut because these old guards were the champions of the people. This is cockameemee bullshit. The old guards were Lee Con You's henchmen and they stood shoulder to shoulder with that asshole to fuck sinkies with the ISD act, lawsuits and bankruptcy against opponents, suppress and terrorize sinkies with their laws, etc. Don't succumb to this type of sentimentalism because the PAP never did. If u think the old guards had the sinkie's best intentions at heart you are dreaming.

Let me tell you the real reason. It has to do with the HDB flat pricing. After 1993, the HDB decided that it will switch to a construction cost based and market land based pricing, even though the HDB never paid anywhere near market price for the land it acquired. Prior to this, the HDB had charged a construction cost based plus land cost (with no markup) when it priced the flats for sale. By using a market land cost, the flats immediately doubled in price from 1993 onwards. At the same time, CPF reduced the interest rate to 2.5% as per your diagram to discourage CPF plan holders from keeping the money in their account and instead use it to pay for their HDB down payments and monthly mortgage payments. CPF holders realized that if they left their money in the account, with the rate of inflation higher than 2.5% (some years it was 6% or more, and some years the inflation rate was double digit) they will have a negative return and it will result in less purchasing power when they retired. If the CPF interest was kept at 6.5%, people will be reluctant to take it out to buy a flat.

By allowing and encouraging the CPF to be used this way, the PAP has be able to charge a much higher price for the flats than could have be done otherwise. So, the question becomes why would the PAP want to raise the price of "affordable" HDB flats this high? The reason is that CPF money represents a liability to the govt. There is easily over several hundred billion $ and govt has to pay it all back upon retirement. To reduce this liability, they can allow things like HDB down payments and mortgage payments to siphon off as much money as possible, hence reducing their obligations.

 

[escher]

bro let me tell u the real reason,after albert wisemeus,dutch economist retired after working for singapore for nearly 20 years,the PAP starting engaging in this type of fuckaroo economics.....why the fark would they use the nation's savings to create such a crazy HDB ponzi bubble?what if one day the bubble were to burst due to mass hysteria say economic downturn and poor market sentiments.....the price of HDB flats will collapse and the hundreds of billions from CPF used to fuel this HDB bonanza will disappear into thin air like the housing crisis USA in 2008 because the "value" of HDB flats is essentially nothing but a few slabs of concrete and "land costs".

basically the government took the sinkies for a joyride took all ur money to play this game of lets see how high we can make the housing market go,lets make everyone a millionaire.....these fucker PAPees need to tried for treason and hang like those bankers in 2008.

HANG THE FUCKING PAPs LIKE THE DOGS THAT THEY ARE
HANG THAT BASTARD LKY TO DIE LIKE THE MAGGOT THAT HE IS AND NOT LET HIM DIE OF OLD AGE
LKY SHOULD BE HANG BY THE FUCKING NECK UNDER LAMP POST TO DANCE TO ENTERTAIN SINGAPOREANS WHILE WE ALL YUM SENG TO THE SIGHT OF LKY DANCING




GET RID OF THE POISON IN SINGAPORE
HANG ALL THOSE FUCKING PAPs AND THEIR COLLABORATORS
BBQ THE BASTARD PAPs

AND SINGAPORE CAN BE AS GOOD IF NOT BETTER THAN SWITZERLAND

OR REMAIN HEAD DOWN DOWN AND ARSEHOLES UP HIGH HIGH TO BE FUCKED TO BE TIEWED TO BE KANNED BY THE PAP MAGGOTS COCKROACHES
Kill them all PAPs
Let GOD sort out the good from the really bad ones
The good PAPs can then eat joss sticks and candle wax from time to time
The bad PAPs like smear of shit on sole of shoe LKY will be raped and tiewed and kanned by legions of ghouls and demons and not ever
get time off to eat joss sticks and candle wax

Hang those PAP maggots cockroaches with piano wires from lamp posts to make them dance before it is too late and we have no more CPF to get back.

BBQ those PAP maggots cockroaches before it is too late and we have no more CPF to get back.

Cut a few more arseholes into those PAP maggots cockroaches to let out their shit before it is too late and we have no more CPF to get back.

Make those PAP maggots cockroaches eat joss sticks and candle wax before it is too late and we have no more CPF to get back.


None of those in PAP work for anyone but that smear of shit on sole of shoe LKY, to help him hold down Singaporeans to screw and fuck hundreds of BILLIONs from us all into smear of shit on sole of shoe LKY stinkapore sovereign funds.

They are there in PAP because LKY know that they are a bunch of self serving greedy bastards and scrapings of scums of society. To call them maggots cockroaches will be to insult real maggots and real cockroaches.
LKY will never allow good decent people into the PAP and good decent people will not want to get into the PAP.

Those in PAP are the most corrupt and moral degenerates and moral bankrupts and moral filths that are being presented to stinkaporeans as moral compasses.

Despite the leeching and fucking of singaporeans by the cheebye PAP and LKY, Singapore still managed to survive to date.
Despite their being hung as a fucking millstones around the necks of Singaporeans and the idiocy and corrupt manipulations of PAP and LKY, Singapore still not dead yet.

WE ALL ARE NOW WAITING FOR THE DEATH OF LKY IN COMING DAYS OR WEEKS.
WE ALL WILL YUM SENG AND YUM SENG AND YUM SENG AGAIN AND AGAIN DANCING SINGING ON TABLE TOPS AND STREETS

WE THEN WILL SEE THOSE IN PAP WITH SHARPENED KNIVES HOOTING ARSEHLOON A DOZEN NEW ARSEHOLES AND THE DEATH OF THE ENTIRE LEE KWA CLAN

WE THEN WILL PICK UP PIANO WIRES AND HANG ALL THOSE REMAINING PAP AND THEIR COLLABORATORS FROM LAMP POSTS AND SEE THOSE BASTARDS AND BITCHES DANCE.
AND HAPPINESS WILL RETURN TO OUR LAND.

AND STINKAPORE WILL BECOME SINGAPORE ONCE MORE.

 

[eErotica69]

I find it strange that Topsage, who is usually objective about numbers only show one side of the coin.

 

[winnipegjets]

Your CPF is eroding every year as the returns is below inflation rate. Why sinkees let he government steal from them in so many ways, I don't understand.

 

[TopSage]

I find it strange that Topsage, who is usually objective about numbers only show one side of the coin.

Please look at your own chart. If 1977 and 1997, the US fed funds rate is the same, but cpf rate is already more than halved from 6.5% to 2,5%. The lowing of rate simply means returns come from other types of instruments like stocks which yielded more that 6% per annum and cpf should be invested for the best possible returns.... the worse strategy in a falling rate environment is fixed return.