GDP: An Imperfect Measure of Progress

GDP: An Imperfect Measure of Progress
By the Editors Jan 31, 2013 7:30 AM GMT+0800
Q
Which is better for a country’s well-being: $10 million spent constructing a jail, or $10 million spent producing a line of smartphones? How about clear- cutting rain forests to produce $10 million in lumber? Or a storm that requires $10 million in repairs?

Why It Makes Sense To Buy Gold

Why It Makes Sense To Buy Gold
by Ritesh Jain
Gold is the most under-invested asset but it still makes sense to buy it
“The desire for gold is not for gold. It is for the means of freedom and benefit.” These words by Ralph Waldo Emerson sum up the reason why the yellow metal continues to hold favour among investors across the globe. While retail investors seek freedom from inflation, large buyers (read Central banks, hedge funds) seek freedom from currency devaluation. In this era of Quantitative Easing (QE) and artificial monetary support, markets are rewarding gold for its sheer quality of maintaining purchasing power. If one cuts off the incessant money printing across the globe, gold would be reduced to a worthless asset in the end. To put it simply, it is not the value of gold that is going up, but the value of currencies that is coming down.

Singapore Government, Money printing, 1989-2011.

GamerSg wrote:

Please lah, the CPI stats is produced by the very ppl who cause inflation. You must be damn naive to believe the inflation figures.

Its a open secret that CPI is many times lower than real inflation. You want real inflation figures, go MAS website, see M1 money supply since 2000. In last 12 years, SGD has lost 75% of value.

Whose future is it anyway?

Whose future is it anyway? [alt link (original)]
By BRYAN R. LAWRENCE
The Washington Post
To fix Medicare and Social Security, look to Singapore
NEW YORK — Singapore's paternalistic government is unappealing to many Americans — media restrictions, one-party rule, harsh penalties for gum-chewing.
But Singapore's retirement system is a model of honesty and transparency compared with U.S. Medicare and Social Security.

USD/Euro 'Rating downgrade - beginning of the end, hyperinflation next'

USD/Euro 'Rating downgrade - beginning of the end, hyperinflation next' [alt link]

- comments?

[CPF Min Sum] Govt can't have it both ways

The Straits Times, Published on Jun 23, 2012
CALIBRATING INFLATION FOR CPF MINIMUM SUM
Govt can't have it both ways 
IT IS difficult to understand how the Ministry of Manpower's reply ('Increase doesn't fully reflect total inflation'; June 15) addresses the point made by Mr Young Pak Nang ('CPF Minimum Sum should reflect 'true' inflation'; June 8).

[CPF] Increase doesn't fully reflect total inflation

The Straits Times, Published on Jun 15, 2012
CPF MINIMUM SUM
Increase doesn't fully reflect total inflation
MR YOUNG Pak Nang inquired about the use of the headline consumer price index inflation rate to adjust the Central Provident Fund Minimum Sum ('CPF Minimum Sum should reflect 'true' inflation'; last Friday).
As he noted, increases in imputed housing rentals on owner-occupied homes and certificate of entitlement prices for private cars contributed to higher-than-normal headline consumer price index inflation last year.
For the majority of retirees, these are not items that would lead to increased cash expenditures.

Singapore's growth expected to slow in next decade

Singapore's growth expected to slow in next decade
08 June 2012 2246 hrs (SST)
SINGAPORE: Singapore's economy will experience growth slower than in the last 10 years.
This, against the backdrop of a more developed economy, internal resources constraints and fierce competition from the region.

Ruben Wang's 5 min summary on the Eurozone Financial crisis- what do U think?

The Eurozone crisis in 5 minutes: By A Singaporean Cynic, dated approx late May2012
The following is a salvaged cache version (previously posted at personal [blog] but now unavailable, see reasons @ bottom).

Perpetual securities not the same as perpetual bonds

The Straits Times; Published on Apr 16, 2012
Perpetual securities not the same as perpetual bonds
THERE are major differences between perpetual capital securities and perpetual bonds, and these terms should not be used interchangeably ('Genting S'pore reaches out to retail investors', last Tuesday; and 'Genting may be a sure bet but know risks of perpetual bonds', last Wednesday).

'Customers who still prefer ATM cards can visit any branch to replace their debit cards.'

The Straits Times; Published on Apr 14, 2012
Bank's reply
'Customers who still prefer ATM cards can visit any branch to replace their debit cards.'
MS OOI HUEY TYNG, Senior Vice-President & Head, Unsecured Lending & Cards, Consumer Banking Group (Singapore), DBS Bank: 'We thank Mr Chia Chee Keong ('DBS debit card'; Monday) for his feedback.

Finance Ministry can borrow S$170b more

Finance Ministry can borrow S$170b more
by CHANNEL NEWSASIA
04:46 AM Apr 10, 2012
Parliament has authorised the Ministry of Finance to borrow a further S$170 billion, raising the ceiling for issuing government securities to S$490 billion.

There should be a rule prohibiting banks from issuing cards that customers do not nee

The Straits Times; Published on Apr 9, 2012
DBS debit card
'There should be a rule prohibiting banks from issuing cards that customers do not need.'
MR CHIA CHEE KEONG: 'After the recent ATM security breach, DBS Bank sent me a new ATM debit card instead of an ordinary ATM card, claiming the former had more security features. The terms and conditions seemed to imply that the bank had the right to impose charges in the future. I do not need a debit card but was forced to use it because the bank required my original card to be replaced.

67 questions, 5 Bills when Parliament sits on Monday

67 questions, 5 Bills when Parliament sits on Monday
04:45 AM Apr 06, 2012
SINGAPORE - Parliament will sit on Monday to debate issues on housing, public transport and education, as well as five Bills.

Inflation data

[Source]

Excluding housing cost distorts capturing actual inflation rate

The Straits Times, Published on Feb 15, 2012
Excluding housing cost distorts capturing actual inflation rate
I COULD not agree more with Mr Adam Le Mesurier that as a country, we should include the cost of housing in arriving at our cost of inflation ('CPI, inflation and the elephant in the room'; Monday).
Singapore appears to be the rare country that excludes housing in the 'basket of goods' used to determine inflationary cost.

CPI, inflation and the elephant in the room

The Straits Times, Published on Feb 13, 2012
HOUSING COSTS
CPI, inflation and the elephant in the room
THE Ministry of Trade and Industry's reply ('Consumer price index: MTI rebuts ST commentary'; last Thursday) to Mr Aaron Low's commentary ('The dollars and sense of inflation'; Feb 1) prompts an important broader debate about how to measure 'real' inflation in Singapore.

The dollars and sense of inflation

The dollars and sense of inflation
Source: The Straits Times© Singapore Press Holdings Limited.
Author: Aaron Low; 01Feb2012
IF THE latest report card on inflation in Singapore could be summed up in one word, it would simply be this: confusing.

Greece, creditors struggle to avoid costly default

Greece, creditors struggle to avoid costly default
01:45 PM Jan 18, 2012
ATHENS - Greece goes head to head with its creditors today in a renewed attempt to break a deadlock in negotiations to slash the country's debt and stave off default.
International private sector creditors represented by the Institute of International Finance (IIF) are set to meet the government in the afternoon. Talks broke down on Friday over the interest rate Greece will offer on new bonds and a plan to enforce investor losses.

Greece: Clinch bailout or face euro exit

Greece: Clinch bailout or face euro exit
12:18 AM Jan 04, 2012
ATHENS - Greece will have to leave the euro zone if it fails to clinch a deal on a second, €130 billion (S$217.8 billion) bailout with its international lenders, a government spokesman said on Tuesday.
It was an unusually public stark warning from the embattled country, aimed at shoring up domestic support for tough measures and possibly also at the lenders themselves.