Hantu Laut
President Bush appealed to the nation on Wednesday night to support the bailout financial package of $700 billion to avert a financial meltdown on Wall Street and a prolonged recession that could have serious repercussions on the nation and American people."Our entire economy is in danger" he said.
America is now in early stage of insolvency.Without the rescue package it would be a bankrupt nation.
In the 1997 East Asian financial crisis almost the entire East Asian countries were not spared the effect of the meltdown.The crisis was triggered by the collapse of the Thai baht in July 1997 which led to currency and financial crisis with domino effect that eventually affected other countries in the region.The financial anomaly led to recession in most of those countries.
However, the Malaysian economy and population were not as badly affected by the recession as compared to Thailand,Indonesia and South Korea.Although Malaysia indebtedness was quite high at that time the foreign debt was much lower and unlike Indonesia was not in default of its repayment.Its foreign liabilities did not exceed its foreign exchange reserves so the country was not in dire need of emergency credit facilities including those from IMF (International Monetary Fund)
The meltdown was due to highly speculative currency trading that was traced to one of the biggest fund managers and currency traders George Soros as the culprit who speculated in currency of the regions making billion of dollars for his hedge funds and himself and caused those currencies to collapse.Subsequently, the stock market collapsed and the KLSE Composite Index which stood at 1300 in early 1997 dropped to a low of 262 by September 1998. Mahathir the prime minister at that time blamed Soros and took defensive action to avert a financial disaster by pegging the ringgit.The peg slowed down the flights of capital and ended with war of words between Mahathir and Soros and criticism by the Western media and Western governments of Mahathir's unilateral action.Even his own finance minister at that time didn't agree with him and was one of the many things than that drove them apart.
The 1997 financial meltdown caused the Malaysian government to restructure and amalgamate its financial institutions and bailouts some of the troubled government linked companies
The American government was highly critical of Mahathir's political and financial policies at that time and didn't foresee that they would one day face even worse and more embarrassing situation.They accused Mahathir of bad governance,corruptions and a government that is not accountable to the people.
What causes the financial meltdown in America.A number of things and GREED is top of the list.
Highly speculative trading on Wall Street, over extended sub-prime sector, pay for failures CEO with huge paychecks, over-innovative financial system, poor financial governance and a society that live on credit.
The American stock markets and financial system are tailored to make the rich get richer. Short selling which is a dangerous form of share trading is rampant on Wall Street and financial institutions are willing to finance this risky business because they are conducted by big hedge funds and investment banks.
Britain is contemplating a permanent ban on short selling after the bashings of bank shares in the past weeks.Prime Minister Gordon Brown defending the recent ban said "when a group of people are exploiting a difficult economic situation, it is right to stop it." and said "I think you'll find new rules come in for the future...We have very unusual and volatile financial markets . It would be wrong for good companies to be brought down by speculators."
This will be the most expensive bailouts in the history of the US.Where are the money coming from ? Print more greenback, sell more Treasury Bills or go to war and sabotage the economy of other countries ?
If the American economy collapse and the greenback become useless many countries would go down with America. Their foreign reserves would be devalued and become almost worthless.
Mahathir was the only man who foresees this coming over a decade ago and the West ridiculed him and branded him as anti-Westerners.They condemned him for pegging the ringgit and the bailouts of some of the troubled government-linked companies during the Asian financial crisis.The man certainly has vision 20/20.
George W.Bush is going to put the money where his mouth is and hand over a very shattered economy to his successor.
The rest of the world have no choice.Rescue America or go down with it.
Hantu Laut
The flight on Air Asia was uneventful like most flights are.Yesterday was my third time with the airline and being frequent flyer with MAS and other airlines before I must say it takes a few flights to make the adjustments from being pampered on full-pledged airlines and to no frills flight on this astounding airline.
My flight was at least 20 minutes late out of Kota Kinabalu but managed to land 15 minutes ahead of time at the LCCT at Sepang. My previous flight to Miri a few months ago also arrived ahead of scheduled time.Other then having a good tailwind how the pilot managed to do that frequently I really have no idea.
The aircraft turn around time seemed to be much faster than MAS and other normal airlines.To most airline time is money and time saving means saving costs.What I learned on this trip may sound very scary to some people and for very good reason.
After taking my seat on the aircraft and while still on the tarmac waiting for take-off the cabin crew announced over the intercom that the aircraft is still in the process of refueling and requested all passengers not to buckle their seat belts.It was probably a precautionary measure in case of incident of fire they could do a speedy evacuation of the passengers.Of course they only tell you the aircraft is still refueling but didn't tell you of the danger.
Could they do a speedy evacuation in the case of fire ? Not likely. In the unlikely event the aircraft caught fire while refueling there would be very little time for all passengers to escape as the highly combustible fuel would engulf the plane very quickly and evacuation using the steps would be much slower than using the emergency chute.
However, before you jump to conclusion just think over the years how many million times air crafts had been refuelled. Such incident is rare, therefore, the probability of it happening is as low as your plane falling off the sky.
Air travel in this country had taken a new meaning.With airline like Air Asia and their 'now everyone can fly' motto, most people especially the lower and middle income groups can afford to travel by air, previously the domain of those with money.The airline had also taken off the hassle of air travel by simplifying the whole process from its online booking to its paperless check-in, making it as simple as shuttling on a bus.Another plus for Ais Asia is in its online booking web page.It is more straight forward and faster than that of MAS.
The only drawback with the airline is it has no mercy on heavyweight travellers.Just to warn you no matter how little your excess baggage is you have to pay.To give you an idea on how much it cost for a kilo of excess baggage between KK-KL so you wouldn't make the same mistake as I... ..well not me, it's my wife who decides to bring some Hari Raya goodies for my sister, it's RM15.00 a kilo.It's not the airline fault and I have no complaint against the airline.You get what you pay for, no more no less.
I used to read complaints about the airline from people who pay peanuts and wanted excellent service.I think the airline is wonderful and is good for what it's intended for and for those who wanted more just go and fly the normal airlines.
For Sabah and Sarawak where roads are bad making road travel a torturous journey this airline has provided what MAS failed to do all this while, cheap domestic air fare.
Now MAS copy it in an unfair competition.
Hantu Laut
It's still a cat and mouse game with the opposition PKR claiming they are in negotiation with Abdullah's ruling party for a smooth transfer of power.
Anwar has been keeping silent the past few days but has appointed PKR Information Chief Tian Chua as spokesman.
Meanwhile, Prime Minister Abdullah Ahmad Badawi scoffed at the story and said " it's the craziest report I have ever heard"
Malaysians in general are now fed up with the charade from both sides, one is a hound dog and the other a bulldog.Both are responsible for creating the unstable political and economic atmosphere in the country.While many countries are trying to find solutions to their economic woes, this government is busy defending its 'Fort Knox' from falling into the hand of the oppositions.This is not the metaphorical 'El Dorado' but one that truly exists and must be defended at all costs.
On the other side, the opposition is still recklessly playing their mind game and refused to end their psychological warfare even after they had failed to deliver their promise of taking over the government by 16 September.
Until now none of the BN MPs had come forward to announce their change of allegiance. Even SAPP which recently resigned from the BN had declared to stay independent.It can only mean they are unsure of Anwar having the 'numbers' and would adopt a wait and see game.
Meanwhile, Parti Keadilan Rakyat leader Datuk Seri Anwar Ibrahim arrived at the Sessions Court in Jalan Duta at 9:50am this morning for the hearing of submissions to transfer his sodomy case to the High Court.The outcome of this case will decide his fate, whether he can pursue his dream of becoming prime minister of the nation or end up in Sungei Buloh again.
If you think Anwar's sodomy allegation is disgusting consider Sarah Palin, John McCain's running mate of even bigger nightmare where the media alleged her husband of incest. The husband had been accused of having sex with the couple's own daughters.
Politics is dirty even in the Bible Belt of America'.Homosexuality,bi-sexuality and kinky sex are no big deal in the West.Screwing your own daughters is akin to an animal, the lowest crime, worse than murder, that a man can be accused of.Anyone who wish to join politics just make sure you have a clean bill of health.
Malaysians waiting for the good news whether there is going to be a reduction in the price of petrol and diesel need not have to wait much longer.With Hari Raya Idilfitri round the corner and in spite of the fact that the price of crude has gone up again I can foresee the government reducing the price.
This government has become so predictable you can actually read what they are going to do next.It has lost all its aces.
After all there, maybe, some good news before the weekend.
Read also:
By RAHMAN MOHD332
The most important political development in town has very little to do with Anwar Ibrahim. Instead, it is about the dynamics of the relationship between the Prime Minister and his deputy and how they approach the UMNO party elections that are set to commence with the divisional meetings on 9 October.
Neither Abdullah Ahmad Badawi nor Najib Tun Razak wants to fight the other. They know that this would be disastrous for the party and even prove to be the final nail in its coffin. Both want to honour the spirit, if no longer the exact letter, of the transition plan which originally intended for Najib to take over the premiership and party presidency in June 2010. It was a deal brokered directly by the two men and endorsed by the party Supreme Council.
But things began to fall apart after the loss at the Permatang Pauh by-election even though this had very little to do with Abdullah's leadership (in fact it was seen more as a battle between Anwar Ibrahim and Najib). There was a resurgence of dissent within party ranks led by vice president, Muhyiddin Yassin, and egged on by Mahathir Mohamed from the outside. This was an opportunity to renew the pressure on Abdullah to go now rather than later. But the spark that lit the fire was Najib's statement a couple of weeks ago that although he was committed to the transition plan, he would also leave it to the divisions to decide whether they want to support it as well. Politics is all about signaling. For many in the party, that statement by Najib was a signal that he would contest the presidency against Abdullah.
Opportunistic dissenters like Muhyiddin latched onto Najib's statement and instigated the grassroots to create a groundswell effect against Abdullah in order to pressure him to bow out in December. For Muhyiddin, this would be a dream scenario with him walking into the deputy presidency of the party probably unchallenged and thereby becoming also the Deputy Prime Minister. Everything came to a head at last week's UMNO Supreme Council meeting where three members – Muhyiddin, Shafie Apdal and Rafidah Aziz - came out to ask Abdullah to hand over power to Najib earlier than the scheduled timetable. Pro-Abdullah forces in the council were told to stand down during the meeting in order to not worsen the situation.
So what does Najib do now? For all intents and purposes, he is still outwardly committed to the transition plan and does not want to fight Abdullah. He knows that if he digs his heels in with Abdullah, the top job will be there for him by mid 2010 at the latest but in all probability much earlier since Abdullah himself has said that he is willing to be flexible about retiring sooner. The only thing that worries Najib is that if he sticks with Abdullah and there is a challenge from a Tengku Razaleigh Hamzah-Muhyiddin team, he might get swept away along with Abdullah. However, these fears are unfounded. Party leaders know that if Najib swings his support totally behind Abdullah and their forces work together on the ground, there is no other alternative combination that can beat them.
For Najib, if he decides not to honour his word to Abdullah, he knows he will be stuck with Muhyiddin as his deputy. This would be a problem for him later because the two men are suspicious of one another having once been rivals for the job of Abdullah's deputy. Muhyiddin has also demonstrated via his dissent towards Abdullah that he is a man who has no qualms stabbing his boss in the back, and may do the same to Najib especially in a time of political crisis. Muhyiddin will also not be beholden to Najib because he will think that his elevation to deputy premier and deputy president of UMNO has little to do with Najib. So for these reasons, Najib will not want Muhyiddin as his deputy.
Najib would be in a much more comfortable position if he goes with the transition deal with Abdullah, and then when the time comes for Abdullah to step down, Najib would have three vice presidents to choose from as his deputy. Not only does this give him the luxury of choice but it will most certainly make the person he selects as his deputy completely beholden to him because it will be entirely Najib's decision unlike the scenario of having Muhyiddin forced on him.
There are also other reasons Najib should stick with Abdullah. As far as UMNO members are concerned, Najib may be popular. This is courtesy of a solid network that he has cultivated for the last three decades. But his image and credibility publicly is something else. For many people Najib is synonymous with the brutal murder of the Mongolian woman, Altantuya Shaariibuu. Regardless of Najib's repeated religious oaths that he never even met Altantuya, the taint refuses to go away especially since the man accused of abetting the murder, Razak Baginda, was a close advisor and friend to Najib. Apart from the Altantuya case, Najib is also dogged by shady arms purchases notably the procurement of Sukhoi fighter jets and submarines in which Razak is suspected of pocketing hundreds of millions of Ringgit worth of commission direct from the principal. So with the SAS (Sukhoi, Altantuya, Submarine) scandal tarnishing his public image, Najib still needs Abdullah as a shield of sorts. In fact, Anwar is relentless in his attacks on the SAS issues exposing it as Najib's vulnerable Achilles' heel. So long as Abdullah is around, Najib can use the time to rehabilitate his public image especially with his new portfolio at the Treasury where he can enact popular policies to deflect the public's attention from the SAS issues.
Finally, the last thing Najib wants is to go through a bruising fight with Abdullah. Najib may ultimately win the battle with current sentiment against Abdullah and his formidable network in UMNO, but could lose the war because of a damaged and divided party.. Abdullah may be against the ropes but he's not going to be a pushover. His supporters will use every advantage of incumbency to fight any challenge and it will significantly split UMNO. This is something that Najib can ill-afford. Even if he takes on and beats Abdullah, he will be left with a party ruined. The implications of this are serious. If BN component parties see a broken UMNO, they might just take it as a signal to jump ship and join Anwar. That could prove to be the final act on the demise of UMNO and it will be on Najib's watch.
So although Najib may feel insecure about taking his chances with Abdullah for the fear of going down with him, he stands to gain more from sticking to the transition plan and fighting it out by Abdullah's side. It will give him the freedom to choose his deputy, a shield against attacks, time to rehabilitate his battered public image and it will avoid a damaging contest that can destroy UMNO. It must also be remembered that the next few months will be crucial on Anwar front. The sodomy trial will get under way and Najib will not want to be alone when all the sordid details of the case are revealed given his association with Saiful Bukhari Azlan who accuses Anwar of having sodomized him. Without Abdullah, the focus will be entirely on Najib and this could damage further his public image.
Given these arguments, Najib should come out soon to give a categorical statement to support Abdullah's candidacy for party president. It may not only appear to be the wisest choice but also one that will make Najib most secure in the long run.
Note:
The above article was contributed by Rahman Mohd332, a regular reader of this blog who is also a writer.This blog is not responsible for the content and opinion expressed therein.
