tag:blogger.com,1999:blog-6297413898275266606.post6776314238006642372..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: What Happens When Public Debt Gets Too Highhishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6297413898275266606.post-24373190812148941042012-07-18T08:40:25.659+08:002012-07-18T08:40:25.659+08:00Because Singapore can retire nearly half its debt ...Because Singapore can retire nearly half its debt tomorrow - the government is sitting on a cash pile equivalent to 45% of the outstanding debt. Japan doesn't have that option. (Interesting side question: why are they doing this?)<br /><br />Also, unlike Singapore, Japan suffers from periodic bouts of deflation, which increases the real burden of debt.<br /><br />Japan's population is hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-63214775402166975872012-07-18T06:00:04.671+08:002012-07-18T06:00:04.671+08:00Yes, why is Singapore AAA whilst Japan keeps getti...Yes, why is Singapore AAA whilst Japan keeps getting downgraded. In both cases, almost all of their debt is domestically held and they control their own currencies.farmland investment in Australiahttp://www.greenworldbvi.com/alternative-investments-options/agricultural-farmland/australian/noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-15102456546297580682012-07-17T20:31:36.792+08:002012-07-17T20:31:36.792+08:00Spork is a con job about to go awry. International...Spork is a con job about to go awry. International forex piranhas are being held back by the safety net of geopolitics. Triple A ratings are essentially mirages to buttress Spork's corny claim of being a fortress of fiscal responsibility and monetary stability.These are the very same agencies who rated the sub-prime junk bonds as investment grade paper worthy of accumulation.<br /><br />If Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-29373482328883897822012-07-17T16:34:05.670+08:002012-07-17T16:34:05.670+08:00I'm working on the numbers right now.
The ma...I'm working on the numbers right now. <br /><br />The main reason for Singapore's AAA credit rating is that there's really zero threat of a default - all debt is domestic and held largely by residents, backed by forced savings such as represented by CPF and ample liquidity in the banking system (not to mention SGD150 billion in govt deposits).<br /><br />The interesting question posedhishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-21231618711590128132012-07-17T16:03:07.800+08:002012-07-17T16:03:07.800+08:00If Singapore's fiscal position is "absurd...If Singapore's fiscal position is "absurd", then why does it have a "triple-A" credit rating and an "absurdly" strong currency (1Singapore Dollar = 2.51 Malaysian Ringgit")?<br /><br />Surely, the credit rating agencies would have marked any evidence of fiscal weakness by downgrading Singapore's credit ratings, wouldn't they?<br /><br />And the forexGaius Viniusnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-63848781444756861602012-07-17T11:26:12.129+08:002012-07-17T11:26:12.129+08:00Sorry, in the first para it should be:
"...t...Sorry, in the first para it should be:<br /><br />"...the decline of manufacturing has <b>not</b> had a big impact on Chinese incomes either."hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-79552213782887449142012-07-17T08:32:07.333+08:002012-07-17T08:32:07.333+08:00@warrior 231,
I'm working on an update to tha...@warrior 231,<br /><br />I'm working on an update to that post - I believe I actually said that commodity prices were a factor, but not entirely. Employment data appears to bear out the view that agriculture matters, but ownership data however says the opposite. The latter in fact also suggests that the decline of manufacturing has had a big impact on Chinese incomes either.<br /><br />With hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-8844299765556137032012-07-17T01:53:23.175+08:002012-07-17T01:53:23.175+08:00Allow me a brief digression before I comment on th...Allow me a brief digression before I comment on this post.<br /><br />1.You may remember in your recent income inequality post, you nixed the idea that gains in agricultural prices accounted for the catch-up in Bumiputera income:<br /><br />http://econsmalaysia.blogspot.com/2012/04/documenting-income-inequality-malaysian.html<br /><br />Bank Negara data reveals that to be the case as there was a Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-79499093203896270272012-07-16T15:35:10.725+08:002012-07-16T15:35:10.725+08:00@anon,
An economy can be viewed as having a suppl...@anon,<br /><br />An economy can be viewed as having a supply side (what is produced) and a demand side (what is bought). Aggregate demand in an economy can be further divided into two components - public and private.<br /><br />If total demand exceeds total supply, you get either demand-side inflation (in a closed economy with no trade), and/or higher imports (in an open economy).<br /><br />hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-65636979671742429782012-07-16T15:23:16.591+08:002012-07-16T15:23:16.591+08:00Could you please explain the last bit about rising...Could you please explain the last bit about rising imports?Anonymousnoreply@blogger.com