Thursday, April 16, 2009

The Dollar Is Still King

Hantu Laut

In November 2008 I wrote on the dominion of the US Dollar in world trades and currency reserves after some pundits predicted the crash of the dollar and its eventual replacement with other currencies. Below is the relevent article:


Will The US Dollar Crash And Be Gone ?

Hantu Laut

Will the US dollar crash and become an insignificant currency? Some pundits have predicted that the use of the dollar would decline and eventually be abandoned as an international currency.

At the moment the dollar is the most important international reserve currency.Many countries pegged their currency to the dollar and some even used it as their de facto currency.It is the currency used most in international trade transactions.Most countries kept their international reserves in dollars.

I believe the world is not yet ready to abandon the dollar or move to a multi-currency monetary system.The next most important currency after the dollar is the Euro which had taken over some of the dollar's role but were not big enough to displace the dollar significantly.Even Airbus, a consortium of European corporations still uses the dollar in its pricing. Read more.........


Below is a recent article written by Philip Bowring of Asia Sentinel:


Hostage to the Dollar
Although everybody would like a different reserve currency, the once-almighty dollar will probably prevail

Positioning and propaganda in the lead-up to the recent G20 meeting in London are at last focusing attention on the role reserve currencies play and the dollar in particular. But change is going to be very hard to achieve.

China has been in the forefront of this by arguing for a greater role for International Monetary Fund units of account, Sor pecial Drawing Rights (SDR) and a big new issue of SDRs. It has also begun to prepare the ground for its currency, the yuan, to play a role by agreeing currency swap deals with central banks of several countries including Malaysia , Indonesia and Argentina. And it has publicly raised concerns about the safety of its US investments in the wake of massive bank bail-out and stimulus deficits to which Washington is committed.

The US, for obvious reasons, is less than keen on changes that would reduce the role of the dollar and hence its ability to fund its deficits in its own currency. Europe may like to see a greater role for the euro but is worried that any move out of the dollar would push the euro too high and damage its trade, and the cautious Germans in particular are worried that a big SDR issue would simply boost future global inflation.Read more.......

Wednesday, April 15, 2009

Splitting Hairs:The New Kingmakers

Hantu Laut

Malaysian media, opposition leaders and those who are bent on making waves have found a new game called 'Splitting Hairs'.

Some from the Chinese community had taken the new DPM to task for his statement that the Chinese have been unappreciative of what the government have done for the Chinese community all this while and the Chinese were trying to be kingmakers.


The reality is, what Muhyiddin said is true and those who are quick to draw the gun and shoot him down and put him in a bad light were those who likes to split hairs and fish in troubled waters. He was right in his analysis that the Chinese and Indians have deserted the BN, otherwise, how could the BN lose miserably in 4 by-elections in the Peninsula. The bulk of Chinese and Indian votes did go to the opposition coalition. Majority of Malay votes are still with UMNO with exception of certain areas where PAS influence is strong and small section of disgruntled Malays supporting PKR
.

Saying the Chinese were trying to be kingmakers was not untrue. The solid Chinese votes for PAS candidates are reflective of their role as kingmakers. Majority of Indians have voted in the same pattern. Muhyiddin was quite right in what he said and I am surprised people like Dr Toh Kin Woon and those from both the oppositions and BN components, MCA and Gerakan took exception to his honest opinion.

There is no fair play in politics and being called a kingmaker is not an insult. It's more a compliment of one's ability.

Thanks to Anwar Ibrahim, the Malays, Chinese and Indians are more divided now than ever before. His 'Bangsa Malaysia' is a call in the wilderness and a pipe dream.It can only happen if he forms one multi-racial party.How can there be racial unity and one bangsa if he uses the same formula as the BN.

For Muhyiddin it may be good for him to know that 'unappreciative' and 'ungrateful' can carry the same meaning depending in what context it is used and as politician, sometimes, these words are better left unsaid.


Those who are hell-bent on making trouble will have their own suternine concoctions of shit stirring.

Diberi Betis Nak Peha : Three Ministers and Five Deputies ?



Diberi betis nak peha.

After being trashed at the polls.This guy must be joking !

Tuesday, April 14, 2009

Jebat Must Die's Most Profound.

I have been meaning to post this article for the past couple of weeks but had decided to wait till today where I think the political atmosphere is much calmer. Anyway, a month ago I received this comment from Mojojojo regarding what he / she theorise as Malaysian Democracy and what constitutes and differentiate between our own social political structure and with those of other countries. I believe his / hers is a valuable insight into what the current mindset of some Malaysians have regarding this country of ours . I must thank Mojojojo for writing an excellent brief analysis for us to read and also, I am putting this out as a prelude to a future article of mine, God willing.

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I feel compelled to comment only because i find it difficult to comprehend the sheer naivete or perhaps it is the scarily fervent belief of the followers of certain political leaders in the almost messianic qualities of those leaders, who in the eyes of their followers can apparently do no wrong.

To those few who are so ‘taksub’ or fixated on the exaggerated and over-rated concept which is ‘ketuanan rakyat’, i wish to offer my take.

Going back to the original conception of democracy by the Greeks, the etymology of which comes from 2 words, i.e. demos (people) and kratos (initially power, force, strength, etc. Over time, evolving to mean rule or government), it would appear that the precedent for ‘ketuanan rakyat’ is clearly established.

However, even the brightest of them, i.e. Socrates, Plato and others were united in their belief that to hand over rule to the people would result in utter chaos for the greek city states. In essence, they considered that rule or governance was best exercised by a group of learned men. Of course, this may be simplifying this account to a great extent - but the foundations and precedents laid then reverberate and continue to ring true even today.

Thousands of years later, and in Malaysia no less, the prescience concerning the fallacy of rule by the people is being played out.

Unfortunately, the serious lack of political and administrative leadership of the present administration has resulted in a vacuum in which a pretender - supported by a cadre of fearsome and narrow-minded enforcers, purports to be the only saviour of the country to bring about a so called new dawn for Malaysia. The cult of personality around this person defies belief, which urgently brings to my mind the important lessons of Orwell’s Animal Farm.

I do not claim to have any solution to the seemingly intractable differences at home, only wishing to share my observations. In my view, the leaders of PR, despite the public shows and utterances of solidarity with the man in the street are in my humble opinion no different than the so-called crooks which they claim to have been in power for too long. It is now their time they say, their time to perhaps plunder and drive even deeper divisions.

It should not escape attention that the rise of violence in Malaysian politics coincides with the rise of PKR. Instead of cooling down the flames of animosity, certain PKR leaders appear to be fanning those flames, with scant regard for the consequences of their actions, as long as it yields them the seat of power.

In terms of what i believe constitute the primary elements of democracy, i am of the view that its definition hinges on its interpretation and more importantly, its implementation. I believe that we first need to have a clear idea of what democracy itself should mean for us. In our case, i believe that the best democracy for Malaysia takes into account the particularities of Malaysia’s social, economic, demographic and political landscape, among others.

In this regard, i am of the view that the kind of democracy that Malaysia should be is the one that has been decided by our leaders who negotiated Malaysia’s independence. I believe that the agreement then was acceptable to and endorsed by all communities and stakeholders.

The success of the approach mapped out then, particularly in terms of balancing and accounting for the interests of all communities is evidenced by the fact that now, 50 or so years on, Malaysia is no longer the colonial backwater it once was. Equally important is the fact that since independence, Malaysia as a country has been able to maintain a more or less independent approach, both in terms of its economic planning and foreign policy. In this context, you will find me staunchly opposing any section of our society that seeks to renegotiate the terms agreed by our founding fathers.

I do not pretend that the prosperity which has and continues to be bestowed on Malaysia has benefitted all communities equally, some have benefitted more than others. However, the fact that there remains pockets of marginalised and underdeveloped segments of society do not in any way justify the blatantly racist, poisonous and prejudiced accusations such as those espoused by HINDRAF leaders.

In my humble view, People Power, wielded injudiciously as we have witnessed in the Philippines and continue to witness in Thailand, cannot work. I believe that while it can function as a preliminary catalyst, it ultimately fails when its principles eventually need to be translated into practicable policies and actions. To me, people power inevitably spawns populist policies and measures which in turn require and rely on populist politicians to see them through. Given the flip-flopping posture and populist pandering, and not to mention the divergence and inconsistencies in positions among PR components themselves, i’ve become even more convinced that it would be an unmitigated disaster if PR were to helm the federal government . Read more......