(This is the fourth instalment in a series on the trends that led to the present financial crisis)
1. The business done by the hedge funds are more complex. But they too can borrow up to 30 times the investors' money they hold. They are therefore able to earn for the investor the profits from 30 times the investors' money. Even after paying interest to the banks and taking their share or commission, the earnings to the investor from 30 times his money would be very big - certainly far bigger than if the investor were to invest directly himself.
2. It is estimated that the 8000 hedge funds manage a total of 620 trillion dollars. Such is their game that the investors are assured of high profits. How they invest is often shrouded in secrecy. Much use is made of tax haven where they need not submit accounts of their shady business.
3. The poorer countries are not much involved in the shadow businesses and their indices would reflect their economy much more accurately.
2. It is estimated that the 8000 hedge funds manage a total of 620 trillion dollars. Such is their game that the investors are assured of high profits. How they invest is often shrouded in secrecy. Much use is made of tax haven where they need not submit accounts of their shady business.
3. The poorer countries are not much involved in the shadow businesses and their indices would reflect their economy much more accurately.
4. The present crisis is brought about by the right to create more money by the banks being too great that despite securing their business through insurance etc, their losses could not be covered even by the bank.
5. For example when they invest 30 times more than the money invested with them, the losses too would be 30 times more. They would still have to pay back to the banks the huge loans they had taken. There is no way they can do this. The money invested with them would not be enough. They would therefore drag down the banks with them.
6. Although the poor countries will be less affected, the crisis would still impoverish them.
7. The United States and other rich countries are trying to restore their wealth by trillions of dollars in bailouts. The world must know the trillions are not from taxes and other revenue collected by Governments. They are created.
8. Unfortunately the bailouts with this created money will not succeed in reviving the failed banks and businesses. This is because they cannot redeem themselves through normal legitimate businesses. The earnings would be too small. They can only do so by the same kind of dubious shadowy business they had been doing. But if they do this there would be another crisis, far worse than the present.
9. Because we allowed a group of selfish greedy people to abuse the system, this is the inevitable result.
5. For example when they invest 30 times more than the money invested with them, the losses too would be 30 times more. They would still have to pay back to the banks the huge loans they had taken. There is no way they can do this. The money invested with them would not be enough. They would therefore drag down the banks with them.
6. Although the poor countries will be less affected, the crisis would still impoverish them.
7. The United States and other rich countries are trying to restore their wealth by trillions of dollars in bailouts. The world must know the trillions are not from taxes and other revenue collected by Governments. They are created.
8. Unfortunately the bailouts with this created money will not succeed in reviving the failed banks and businesses. This is because they cannot redeem themselves through normal legitimate businesses. The earnings would be too small. They can only do so by the same kind of dubious shadowy business they had been doing. But if they do this there would be another crisis, far worse than the present.
9. Because we allowed a group of selfish greedy people to abuse the system, this is the inevitable result.
Salaam and may Allah Bless Tun and family,
May I share this article with all, about hedge funds, IMF and Asian Tigers
http://www.jahrbuch2000.studien-von-zeitfragen.net/Weltfinanz/Hedge_Funds/hedge_funds.html
Thank You Tun for the Hedge Fund topic awareness to the people
deserve the know how. However who will achieve the bonds for the stock markets aligning with the banks? I wish every single citizen
deserve the hedge fund benefit.
With thanks and regards to you Tun.
YABhg Tun,
I would like to suggest to YAB Dato Najib to have a Malay Reconciliation Event among all Malays of different political background in Malaysia.
If you have the time its worth reading and concentrating on this fictional story to get an idea of what financial markets are all about
Once Upon A Time (A short Story)
Once upon a time, in a village, a Man appeared and announced to the
villagers that he would buy monkeys for $10 each.
The villagers seeing that there were many monkeys around, went out to
the forest, and started catching them.
The Man bought all monkeys offered at $10 each but as supply started to diminish, the villagers slowed their efforts. He further announced that he would now buy at $20. This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back
to their farms. The offer increased to $25 each and the supply of
monkeys became so little that it was an effort to even see a monkey,
let alone catch it!
The Man now announced that he would buy monkeys at $50! However,
since he had to go to the city on some business, his Assistant would
now buy on behalf of him.
In the absence of the Man, the Assistant told the villagers.
"Look at all these monkeys in the big cage that the man has collected.
I will sell them to you back for $35 and when the man returns from the city you can sell them to him for $50 each."
The villagers rounded up all their savings and bought quite a few monkeys. In addition, some of them approached their local village savings Bank to borrow funds to buy even more monkeys.
The Bank was quite keen to lend as the village accountants at the Bank figured there was a 30% margin over collateral security, (Monkey Futures (MF’s). But the problem was the villagers had withdrawn most of their savings to buy existing monkeys, thus presenting the village bank with a liquidity problem.
So, the bank had a fantastic idea to Collateralise Monkey Debt on MF’s (CMD’S) thus enabling the borrowing of money from both other village banks, and the central bank, supported by these CMD’s, to lend yet further monkey loans to eager (and greedy) villagers.
But monkeys were extremely scarce now, so a few Ultra Smart Villagers (USV’s) came to a view that it may not be possible to catch all these new monkeys or buy new monkeys to sell to the Man or his Assistant using CMD’s as a gearing vehicle, as by now there was a distinct shortage of same, so they therefore purchased monkeys they did not have, to sell to the USV members backed by a promise note, to deliver monkeys at a future date, at a slightly discounted price. These ultra smart villagers figured they would make a profit on the promised monkeys, selling to the Man. The commission (contained within the slightly discounted price) covered the borrowing cost of moneys borrowed from the Village bank, together with an additional immediate margin for the owners of the USV consortium This further commission incentive was possible because the village bank gave a bulk discount on loans to the USV consortium of villagers. These transactions were possible because the captured monkeys were having sex and breeding new monkeys from thin air. In essence, these became known as Sexual Monkey Futures (SMF’s)
Some villagers coined a name for this and called it Quantified Easing,(QE) other villagers happily saw it as Printing Money for Nothing )PMN)
At the same time, a few Even Smarter Villagers (ESV’s) pondered upon all these transactions and had grave doubts the USV consortium would be able to deliver on all these MF’s. They also pondered on if the Man or his Assistant would actually deliver on his contractual obligation to buy future monkeys thus causing problems for all CMD’s and the Bank. They therefore borrowed some existing monkeys that were contained within the cage awaiting the return of the Man and his Assistant, by offering to feed them, and return them on demand at the call in date. They then lent the Monkeys Potential Profit (MPP) out to any villagers who wanted to buy them for a 10% deposit with the rest on margin, charging interest on the outstanding balance paid daily. In essence, they (the ESV consortium) were betting the price of monkeys would fall, and were taking a contained duration risk in feeding the borrowed monkeys in the meantime, more than offset by interest paid on the margined balance by the villagers, who had purchased Margined Monkeys (MM’s) in the hope they would appreciate in value by more than the interest they were paying daily.
It was rumoured some villagers had borrowed the money to purchase MM’s from the village Bank, although strictly speaking this was not permitted by the village Bank en mass because it effectively meant double gearing. However, some of the richer villagers were able to borrow money from the Village Bank for MM’s by certifying their income was sufficient to cover the interest. These became known as Self Certified Margined Monkeys (SCMM’s)
There was great debate around the village campfire every night, some villagers pondered the eventual price of monkeys would rise, and others thought it may fall. Some villagers even started speculating on this debate short term, facilitated by both the USV and ESV consortiums, which saw a chance of quick easy profit by Monkey Price Manipulations (MPM’s). A few Technically Minded Villagers (TMV’s) kept records and charts of these price fluctuations, and sold predictions of monkey price movement to the villagers and the USV and ESV consortiums.
This caused the village elders to establish a committee to ensure some fairness in all these transactions to preserve tribal peace, this committee became know as the Monkey Investments Trading Futures and Options Board (MITF-a-OB) or Mitaob for short.
But there was one small problem with all of these frenzied financial transactions in monkeys, monkey futures and options, monkey day trading, and monkey information transactions. Neither the Villagers, nor the Banks, or the Ultra Smart Villagers or even the Even Smarter Villagers, ever saw neither the Man nor his Assistant again as they had done a runner
All that was left was loads of (now worthless) monkeys in a cage, or in some cases on loan, having sex with great gusto and enthusiasm, breeding new baby monkeys, eating their hosts out of village hut and home by growing fat, being in no danger from natural predators, and costing a great deal of time and effort to maintain. The villagers and all the Banks were insolvent because the Man and his Assistant had pocketed all the money
Now you have an understanding of how hedge funds, assets and property prices, banks, options and warrants, and stock markets work.
chedet,
The hedge funds are not all bad. There are many strategies that underlie hedge funds - some are focused on buying distressed or defaulted debts and some are focused on long-short equity ie pure arbitrageurs in equity that buys undervalued stocks and shortsell overvalued stocks. These are players that help keep costs down, and sanity in the market up. Otherwise, no one would be interested to buy our local banks NPL and help keep the NPL levels low. And the overvalued stocks remain out of reach for people like us if no one is putting selling pressure on them.
The only hedge fund that has no value to us is the macro hedge - the strategy coveted by the notorious Quantum fund in George Soros' family of funds. Like long-short equity, they shortsell overvalued countries' currencies and/ or bonds. These things caused havoc on earth, like the one we experienced in the last crisis in 1997. The thing is, they dont feel remorseful about this, simply because it is their computers and models that tell them to be long or short, based on some historical trends or perceived relationship between macro variables. To be off their radar, all we can do is to make sure our macro indicators are strong.
My 2 sen.
I'm sorry Ezani but your comment about saving kids from "sembah berhala" smacks of lack of politeness and consideration to our fellow non-Muslim Malaysians.
Selamat pagi Ayahanda Tun,
Yes, the United States and other rich countries are trying to restore their wealth by trillions of dollars in bailouts. The world "MUST KNOW" the trillions are not from taxes and other revenue collected by Governments. THEY ARE CREATED. Unfortunately the bailouts with this created money will not succeed in reviving the failed banks and businesses. This is because they cannot redeem themselves through normal legitimate businesses. The earnings would be too small. They can only do so by the same kind of DUBIOUS SHADOWY BUSINESSES they had been doing. But if they do this there would be another crisis, far worse than the present BECAUSE we (as human beings without realizing the aftermath incurred in future) allowed a group of selfish greedy people to abuse the system, this is the inevitable result.
China Communist Party Mr Wen Jia Pao stressed clearly that although China is still able to reach a growth rate of 6.8% this year, the road to recovery and future will be long and "torturous" (amat sukar). I believe their rules and regulations on investement and businesses, especially on the Foreign Diplomacy and Defense Ministry, will be tightened, closely monitored and controlled to prevent any unrest occured in China.
The world cannot stop US and the rich coutries in practising these dubious shadowy businesses (their so-called double standard policies), however, they can control and regulate these unhealthy practices in their own backyard to minimize the inevitable result due to GREED in the name of Capitalism, a FREE MARKET model base on HEDGED/BALOONED/CREATED Supply and Demand through speculations and manipulations in order to create money.
Just take for example of AH1N1 flu, if we did not learn from SARS, we will ended up killing pigs (babi) blindly. We paused, "wait and see" for few days before taking any drastic actions that will indeed cause misery and uneccesssay lost, and now we know that this flu has nothing to do with this animal. PBB now is charging Israel in commiting 9 crimes and asked Israel to pay for the damages caused to PBB, Israel, aren't PBB suppose to make sure peace and justice to be done in the world??????
To me, these are the Created DUBIOUS SHADOWY BUSINESSES. Pakatan Rakyat is doing this too by "hedging rakyat sentiment" to make sure they win next PRU13, and they keep on telling Malaysians that the world is watching us, in the "Bernie Madoff" exclusive way because they think that Malaysians are shallow minded who are crazy to look exclusive, clean and fair in the eyes of the world.
Chinese says, "It is difficult to prevent thieves, thieves who are from the family members will be much, much, much more difficult to prevent!!!!" And now FIL is MAS Adviser, this is an inevitable result because the family of UMNO allowed it. I am wondering is this a HEDGE POST created by the young and famous (dangerous ke?) SIL, to make the family look exclusive in the name of "tradisi kekeluargaan UMNO" yang outdated and need to be replaced?
Good day Ayahanda Tun.
P/S: S..Tan, open up your eyes before you comment. Japan is also one of the rich countries which is located in EAST. Aiyah.... west (barat) and east (timur) pun tak tahu, nak jadi "taiko" Keadilan Rakyat just like PAS's Nik Abdul (anak Nik Aziz) kata nak ambil alih jawatan Finance dan Education Ministers if PAS unite with UMNO, ha...ha.... This laughter is not from the world, it is from the Malaysians!
Kamal Ahmad, young people will opt for Conventional Investments and our KLCI has a chance to go up to 2,100 points 2 years from now, ONLY when the voice of the OPPOSITION PARTY & "UMNO LAH IS THE FAMILY" are lowered to 1/3 from the total volume in succeeding concept 1Malaysia.
Salam kasih dan hormat Ayahanda Tun. Minta izin sedikit. T.K.
Saudara Samurai Melayu, mungkin Pak Lah boleh nasihat Idris Jala berjala-jala dalam hal MAS Catering? Ye lah, nak sediakan makanan susah juga, kena ada outsourcing juga kut hal penyajian makanan ni? (teng teng teng)- Juga mungkin synergy antara Air Asia dan MAS? Lain dari nasihat semacam ini, saya rasa tak kan Pak Lah nak bawak kapal terbang kut? Tapi...saya akan amalkan tanya kaunter check-in Pak Lah ka Captain la pulak. Saya pun akan hantar resume pada D.S Najib, minta jadi advisor Zoo Negara & Taman Ular. Sebenarnya, jawatan itu lebih mulia saya rasakan.
Dearest YAB Tun,
I do not know much about hedge funds, but then I believe fund managers must diversify their investments and NOT to be GREEDY (“ORANG TAMAK SELALU RUGI”), and always invest in companies with strong fundamentals; apply VALUE INVESTING by Graham and Warren Buffet.
Two important rules with regards to investing suggested by them :
Rule #1: Never lose money
Rule #2: Never forget Rule #1
-- May Allah SWT bless Tun and family --
salam buat ayahanda Tun dan ibunda Tun Siti Hasmah,
Saya amat bersetuju dengan penjelasan ayahanda Tun berkenaan dengan situasi sebenar eknomi sejagat.Cuma saya ingin mengemukakan cadangan untuk negara-negara Islam dalam menangani krisis ini berasaskan dua faktor utama:
1)Sistem kewangan Islam telah disyariatkan sejak dari kerasulan Rasullah SAW lagi.Tetapi yang ada sekarang tidak lebih dari terjemahan di atas kertas tanpa suatu perlaksanaan yang konkrit.Jadi saya rasa sistem kewangan Islam perlu sepatutnya diperwajibkan perlaksanaannya, bukan lagi sebagi satu alternatif tetapi sebagai suatu keutamaan.
2)Faktor bilangan umat Islam boleh dijadikan satu dorongan utama untuk menggerakkan ke arah penggunaan sumber berteraskan Islam secara optimum.Maka kerjasama yang erat antara negara Islam perlu diperkuatkan.
Disini saya juga ingin membuat sedikit teguran kepada sekalian bloogers...walaupun kita bebas bersuara di dalam dunia internet ini,ia bukanlah satu lesen buat kita untuk membuat kecaman dan tuduhan melulu terhadap individu lain.Saya yakin anda semua maklum dengan siapa yang saya maksudkan.Ayahanda Tun Abdullah tidak lagi menjadi Perdana Menteri Malaysia.Sebagaimana setiap bekas perdana menteri yang lain termasuk Ayahanda Tun Mahathir sendiri sewajarnya kita memberi penghormatan kepada beliau.Kalaupun kalangan kita ada yang tidak suka dan tidak bersetuju dengan dasar beliau ia bukanlah satu kesempatan untuk kita menjadikan medan internet ini sebagai medan membelasah beliau.Pernahkan sekalian mendengar beliau membalas segala tuduhan dan kecaman yang dilempar kepada beliau,yang kadangkala tak sepatutnya kita sebagai insan yang berpendidikan bergelagat sedemikian?Pesan saya ingat-ingatlah dalam memberi komentar.Kalau benar pandangan dan kritikan yang dilontar,InsyaAllah kita tidak akan menanggung hutang yang besar dan berat.Tetapi sekiranya tidak benar,sempatkah kita untuk memohon ampun sekiranya umur kita pendek?
wassalam...
Tun,
Rasa-rasanya pisang dah nak berbuah dua kali dah ni....
Dear Tun,
As an aside: For those interested to know more about Hedge Funds, "real" hedge funds - the investment/trading/hedging philosophy behind them, their operating principles and practises, their tricks of the trade; perhaps you can follow Veryan Allen's blogspot - Hedge Fund - @:
http://hedgefund.blogspot.com/
Then, at least we would know what the heck they're up to....!
Assalamualaikum Tun,sila lawat laman blog saya anakmelayu30.wordpress.com,kalian2 yg lain juga di jemput melawat laman blog saya..TQ
http://www.paperchaseproducts.com/catalog/images/EX085717.jpg
Salam kasih dan salam hormat Ayahanda Tun. If Tun may kindly follow up on that http link above, Tun would see the kind of perforated collegiate exercise book like the one I had been writing about for use by our school going children as exercise books. One book, could actually serve as a writing book for all subject, thus greatly reducing the weight of their school bags. They just write-in their home work assignments and then proceed to tear along the perforated lines and hand them in to their respective teachers. Teachers would also benefit from this practice I think.
This is no free product advert in any way what so ever. I may go for counting beans at times, but I won’t stoop that low. I am just copying and pasting the best example I could find on Google image search Tun. Thank you again Tun for this blog page. I think that this has truly becomes the voice of Malaysians now.
Dear Tun
I agree with what you have been saying. However, when the American Government poured in multibillion dollars to bail out the economy. The money cannot be considered "created". If you wish to use the term created, it actually means it was created from government bonds issued out as IOU.
In layman terms, it means the American has dipped into their overdraft facility to raise the money. They still have to raise the sum of money to repay the money back from future tax revenue.
I don't think it is fair to say the money we use from our overdraft facility is free money, money created from thin air. We still need to repay the money back to the bank at some point or otherwise we will be incurred interest on the money loaned.
Similarly, America needs to repay their loan at some point in the future, i.e. to China who bought most of their government bond issued.
--
Simon
By samuraimelayu on May 6, 2009 3:23 PM
SALAM AYAHANDA RAKYAT TUN
IZINKAN,
By ,Melayu merantauAuthor Profile Page on May 5, 2009 3:31 PM
"Pak Lah made MAS adviser"
PETALING JAYA: Former Prime Minister Tun Abdullah Ahmad Badawi has been appointed as Malaysia Airlines (MAS) adviser effective May 1.
...
Pelantikan yang membuang masa dan wang kerajaan.. Apakah Pak Lah mampu dan boleh nasihati MAS ..? Beliau tidak mampu memikirkan permasalaan didalam MAS..Setakat bagi Penerbangan percuma kesana-sini boleh laa.....
Fikir-fikir lah ..
SDR. MELAYU MERANTAU,
KAMI RASA KURANG MANIS KITA MERENDAHKAN KEMAMPUAN TUN ABDULLAH AHMAD BADAWI (MANTAN PM) YANG TELAH BANYAK JUGA JASA NYA KEPADA NEGARA. JANGAN KATA TIKET, KAPAL TERBANG MAMPU DIA BELI..KALAU DIA MAHU.
SEKURANG2 NYA BOLEH JUGA DIA MENASIHATKAN LEMBAGA PENGARAH MAS TENTANG AMALAN ISLAM HADHARI DAN MENDOAKAN MESYUARAT..ASALKAN JANGAN IDRIS JALA BACA DOA, CUKUP LAH.
ALFATIHAH, AMIN.
Salam Tun
Again I must say you made a very brave and timely statement that Rulers have no power to remove Government leaders such as the PM or Menteri Besar except only to approve or recommend their appointment and this applies if Perak constitution is the same as the Federal Constitution. There has been too much uncertainty and abuse of the appointment and forced removal of Nizar until I felt that the Sultan of Perak had nearly been biased but we all know he is very well-versed in law. But still he removed Nizar.
Anyway, I would like you to strongly condemn the actions of Nazri on the conversion of children from a family where one of the spouse has converted to Islam, because Nazri says the children must remain within the earlier religion whether Hindu or Buddhist or any non-Islamic religion. As Muslims, we know the only religion is Islam and we must save the child. Later on, when the child has grown up, the child can think for himself about all the religions in the world and he will surely find the truth in Islam but we don't want to jepoardize the child's line of thinking by allowing him to be brought up in a Hindu or Chinese environment and sembah berhala.
Lastly, I would appreciate if you could make available your speech on The Role of the Executive, Legislative, Judiciary and Constitutional Monarchy conference. It is very interesting to read about your opinion on these 3 components that make up the running of Malaysia especially many people has accused you of weakening the judiciary and weakening the rulers by giving away their immunity. However I understand the situation you removed the Sultans' immunities after many stories surfaced about the Sultan of Johor's melampau beahaviour on Gomez, the hockey coach and also the beating of an Indian caddy with a golf stick. I have heard the story and will never forget it and have marked this Sultan for life.
Tun maybe you can write about protectionism and cronyism in our economy just to be fair.
Salam kasih dan salam hormat Ayahanda Tun.
Forgive me if I am about to comment off topic again here. But I would curtail it along the lines of economics as best as I could.
Many are keenly observing on deliverance of the new government. Among the key points includes the education section. Many ministers have come and gone many lines we have heard but unfortunately less or next to none had been done. If we look back on the many promises of education ministers, many have promised “to check on the burdens of heavy school bags”. We may rope in foreign experts for this task, but I feel that Malaysia has enough back home to make these changes.
Lets see things for real here, many agendas has remained on the back burner now, we know what kind of solutions they are needing and we can start by tackling that first before moving to the foreign players for inputs. To cramp all in one go, would no doubt makes things impressive – but could it be done?
I applaud Tan Sri Muhyiddin’s continuous assessment of the education needs in Malaysia. We are beginning to see pro-active scenarios now in the Education Ministry. That is very good indeed. But may I humbly suggest to the education minister on removing the plight of heavy school bags first. Because that is very real and each days our children lugs sometimes around up to 3 kg in the name of education. Even as adults, we go for the lightest notebooks and mobile phones to complement our mobile needs, now let us put pity on these deserving children of ours.
I have a humble suggestion, why not we just do away with all exercise books? You know, each year parents/guardians are burdened financially at each new school term with buying exercise books. Some exercise books never even get used at all. In all subjects, teacher requires 3 kinds of books at least: 1) Comprehension, 2) Composition, 3) General exercises. In my (our) observations, schools, some PIBGs and some MSSN are affiliated to the printing business (one way or another). They print their own writing books. I also notice that it’s the book shops that benefit the most from this present practice. Maybe the roles of book shops in schools should be given back to the school admin. Let their co-op run things maybe. Or is it already in practice that way now? I don’t know at this point in writing.
Any how, going back to topic, these children take all three exercise books to school daily and only on would be use. I propose, we just use the US system here. We get the children to go by with the “collegiate perforated” kinds of text books. All subjects, could be done on that book, and then the children would tear along the perforated lines and hands in their works to their respective teachers. Introduce filling systems for the children both for school and home. I think, teachers would like this too as it mean less weight for them to lug around just as well. Mother Nature would smile upon us in her own ways too I reckon.
That is just my humble suggestion. I am the kind of person who always goes for high efficiency out-puts. And I think that the good Tan Sri may well be on the right track now with his pro active stance and unrelenting assessments in line with total improvements and efficiency. Let’s do something cheap and impressionable, let’s go for low budget max efficiency exercise. Let’s just shave off some kilos here.
And kindly stop wasting the rakyats time on issues like "re-writting" history dear deputy education minister. You should put focus on this kind of cross board result oriented deliverance and less on narrow polemic politics at work. You are now a deputy minister of the Malaysian rakyat after all; and no less we do expect.
P.S: And school canteen – why not the Education Ministry run it themselves? Or create Unified School District teams to handle that. All staffs government salaried and I believe foods would be better, and cheaper – present practice of tendering out canteen service is outdated and you know it as well as I do: it’s the doorway to corruptions.
I apologize Tun, for this off topic comment yet again. But I greatly hope you would kindly let it through anyway Sir. Thank you Tun, warmest regards and bright blessings from all of us.
http://thestar.com.my/news/story.asp?file=/2009/5/6/nation/3843087&sec=nation
PUTRAJAYA: Local and foreign experts will be asked to assess the country’s education system.
Education Minister Tan Sri Muhyiddin Yassin said this was to ensure the education system was effective and to identify any weaknesses.
“Quality is the key word here as we can’t compromise on our children’s future,” he told reporters after delivering his first message at the ministry’s monthly gathering.
Muhyiddin, who is also Deputy Prime Minister, said the assessment would be headed by an individual within the ministry.
“But I would want to find some experts in education from within the country and outside to assess how good our system is or how can we make it better,” he said.
Muhyiddin said time management and decision-making were very important.
“If we can correct any problems, we must do so. Otherwise, those who lose out will be all of us,” he said.
On the 1Malaysia concept in education, Muhyiddin said it was already in the existing syllabus.
“What we want is to give a new understanding for education to integrate people of different races, cultures and religions. Schools are the best platforms to promote integration among students.”
Asked about his deputy Datuk Dr Wee Ka Siong’s statement on reviewing history books, Muhyiddin said he was open to ideas.
“People can make propositions. I am always open to ideas and we will see whether the propositions are reasonable and (if) there is a need to make changes to books, it must be based on certain principles of correctness.
“People cannot re-write or re-invent history. What is past and has been recognised as part of history of this country should be recognised and of course hopefully written in a manner that is correct,” he said.
Asked about Dr Wee wanting all races’ contributions to be noted, Muhyiddin said no one stated there were no contributions to history or development of this country.
“We do recognise contributions of various races in the development of Malaysia from before, during and after independence but what is important in history is to recognise whatever the races have done.
“Malays fought for independence first, joined in by leaders of other races,” he said.
It was reported last month that Dr Wee had said a review was timely to correct the “selective representation of facts” in history textbooks.
TUN.
1.Harapan rakyat kerajaan dapat memulihkan ekonomi negara secepat mungkin. Dan harap TUN dapat menyumbang kepakaran TUN kearah itu.
2.Menyentuh pula pekembangan Di Penanti. Ramai yang menanti keputusan BN samaada bertanding atau sebalik nya. Nampak nya di peringkat awal ini pun dah kecuh dalam PR antara PAS dan PKR untuk meletakan calun. Pada hemat saya biarkan saja mereka bertanding sesama sendiri.
3.Amat menarik sekarang dalam PAS menjelang nya Persidangan agong PAS bulan depan. Ramai pemimpin2 nak berebut jawatan. Dah pasti panas dan sengit kali ini. Apa tidak nya, Tuan guru Hadi Presiden pun dah ada yang nak mencabar nya. Timbalan pun dah ramai menyatakan untuk bertanding.
4.Tapi yang jelas perebutan jawatan tertinggi dalam PAS ini ada kena mengena untuk membuat persediaan awal menjelang PRU13. Konon nya ramalan mereka(PAS) Tok Ajib akan membubarkan parlimen lebih awal untuk mendapatkan mandat baru.
5.Dan mereka PAS amat yakin PR akan dapat menubuh kerajaan selepas PRU13. Maka mereka pemimpin2 tinggi parti sudah pasti lah akan menjawat kerusi2 menteri kelak.
6.Presiden PAS dah tentulah akan jadi PM.(Ikut Formula Perak) Annuar Ibrahim cuma jadi "Penasihat" saja.....Tak tau lah....Atau sebalik nya. Itu lah yang war2kan oleh akar umbi PAS, sembang2 di warong2 kopi.
7.Dan siapa pulak akan jadi TPM1 Dah tentu lah Mr.Karpal. TPM2 LKS.
8.Tidak kurang hebat untuk timbalan president PAS. Mat Sabu amat berminat. Jawatan ini dah pastilah akan dikurniakan jawatan Menteri dalam negeri atau pun menteri Pelajaran.
9.Oleh yang demikian UMNO dan BN semestilah bekerja keras dari sekarang untuk mempertahankan kuasa kerajaan hari ini. PAU dah tamat. Pemimpin2 dah pun dipilih. So, turun padang jumpa akar umbi dan rakyat. Jangan cakap berdengar2 saja. Tunjukkan diri. Saya kagum TOK Ajib bergitu selesa bertemu rakyat tanpa sambutan protokol. Pergi melihat sendiri kekawasan rakyat untuk menilai kehidupan dan permasaalah rakyat.
10.Kerajaan BN berhati2lah permainan poltik PR. Mereka nampak nya sedang merangka strategi baru untuk mengajak BN menari bersama. Mereka cuba mengadakan seberapa banyak pilihan raya kecil dikawasan panas mereka. Ini bertujuan unruk mereka berpeluang terus bekempen sehingga PRU kan datang. Mengekalkan momemtum semangat rakyat yang menyokong mereka.
Salam kasih dan hormat Ayahanda Tun. Well maybe America has a black president now and maybe the Washington politicos have finally come to accept indiscrimination - just like what the Right Reverend Jesse Jackson Jr. has been saying. But does that opinion extends into boardroom America - is anyone’s guess really. Tun, do you suppose Yahoo’s Jerry Yang could have gotten a better deal if he had spelt his last name as Young? Yes, it sure seems like Yang miss calculated on many things in the past year at Yahoo. But the more I look at circumstances around Jerry Yang and Yahoo, the more I see the carpet being yanked from under his feet in concerted efforts. Yahoo has always been a sore thumb for some table cloth KKK ever since 1994. And it looks like the US “informal” DEB raiding committee has done a great finishing job over at Yahoo Inc at long last.
that is why God says Riba' is haram & won't sustain...
Saya bersetuju dengan pandangan kawan kita yang mengulas tentang perlantikan Abdullah badawai sebagai penasihat MAS. Memanag Abdullah Badawai tak layak dilantik apa2 pun ..buat membazir duit sahaja. Ramai lagi orang melayu yang pandai untuk dilantik sebagai advisor mana2 GLC. Kenapa dipilih Abdullah Badawi ?? adakah kerana beliau pernah bernasib baik menjadi PM malaysia?? Apa lah nak jadi dengan negara kita ni??
Ds Najib dah mula membuat silap sikit sikit lama lama jadi banyak. Kita tunggu lagi la tengok apalagi selepas ni.
Dear Tun, salam sejahtera harap sihat selalu. Kiriman saya untuk tajuk ini..
..............DUA KALI LIMA
There is no denying the abuses of the western financial systems. While gloating the west's failure, don't forget to look at these reflections of ourselves...
>>Hedge funds
Remember Umno's 100 plus divisions are M'sian potential dangerous hedge funds themselves. They have massive funds and borrowing power.
>>Currency trading
Currency traders manipulate and trade currency same way Umnoputeras manipulate and trade bumi privileges. Currency trade is a non real contributor to country's wealth just as privileges.
>>Banking system and false economy
Banks have power to create money out of thin air like Umno create wealth with a stroke of the pen. Privatisation, monopolies, concessions, approved permits, licenses are given in mysterious circumstances. Can you see thru the transparency?
>>Economic indices and wealth
Manipulating the stock market as economic indicator of a country not far off manipulating ownership of shares as indicator of bumiputera wealth. The shares dont reflect the true economy of the bumiputeras. It is used by the greedy and savvy to rip off the working people.
They get the shares, sell off the shares or business for cash (to buy a mansion, get a 2nd wife, 3rd Umrah, 5th car, 6th overseas vacation) and come back later to claim bumiputera share is still below 30%.
..............SYSTEM ABUSE
Are you as gung ho about these as you are about the western financial horrors painted by Tun? Or you want to be like the west last time. Cos it was the Asians that suffered they saw no wrong with the system. Since it is a bumiputera who benefits from the cheating, let it be!
Jangan jadi mcm mrk, dah terantuk baru nak tengadah. Kalau kamu fikir tak apa krn bumiputera juga yg untung dari perbuatan mrk, tunggu azabnya.
If you see everything wrong in the western system, hopefully you see the same in our privileges management system. To paraphrase Tun, "When you allow a group of favoured people to abuse the system, you will suffer the inevitable result'
akum TUN dan semua
saya baru balik dari pusing2 bandar KL, memang terasa lenggang sekali tak ramai orang dijalan Bkt Bintang dan Jln jalan utama. Saya terfikir apakah ini kerana kemelesetan ekonomi sekarang atau apa? Kalau benar bermakna kesan nya sudah mula dirasa oelh orang ramai.
Apa yg dicakap oleh TUN memang benar dan tepat dan ahli ekonomi menamakan keadaan yang berlaku sekarang sebagai "greed phenomenom". Kalau krisis kewangan 1998 disebabkan ketelusan maka corporate governance di perkenalkan. Maka masalah sekarang apa lagi yang harus diperkenalkan??
Persoalannya di Malaysia adalah apa yang di ambil oleh DS Najib belum begitu nampak hasilnya kerana ini mungkin disebsbkan ianya berkait rapat dengan kemampuan negara negara lain untuk bangkit dari permasalahan ini.
Saya rasa amat wajar TUN dilantik sebagai penasihat ekonomi negara dan membuat langkah2 yang drastik dan lebih bersifat domestik daripada terlalu bergantung harap pada nekonomi luar spt US dan europe kerana berdasarkan fakta fakta yg TUN nyatakan ianya amat sukar bagi barat untuk bangkit semula.
Satu lagi soal pembelian kereta proton buatan malaysia kenapa kadar faedah untuk pembelian kereta nasional lebih tinggi daripada kadar faedah untuk membeli kereta impot?? heran bin ajaib, saya berpendapat bank bank malaysia seharusnya utamakan barangan malaysia kerana ianya memberi kesan multiplier yang bagus untuk rakyat ramai.
wassalam
IMF, World Bank , Hedge Fund, semua siapa yg control agaknya ya?. Kita semua kena bodoh bodoh aje dgn diaorang.. betol tak?.
Salam to Dear Tun DM,
Come to think of it, these hedge funders and currency traders must be the dajjal as prophesied. If one expects dajjal as someone who are blind one eye especially the right eye or both eyes, such a person must be kidding.
Prof Madya Dr Abdul Rani Bin Kamarudin
Lecturer IIUM
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
As there is no better solution..or...any better system of trading
in modern world international..or outernational economy.........!
Therefore , all kinds of paper have been allowed for trading days by
days by A Group Formed & Backed By"The Highest Authority Regulators"
In The World Of Power..!As a citizen of the world..we are always
being told to abide by the Rule Of Laws..Mainly because All kinds of
laws be imposed to regulate and succumb "The Unorthodox Outhinkable
Minds To The VETO POWER " resulting "The Unobedient Mankind
Development" to develop irregularities until onto a "New World
System Of Economy for Mankinds..........."
It may take 100 years or more to happen to make it perfectly right.!
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
Dear Tun,
We as Muslims has had more than ample warnings on the follies of Man when what they do is based on GREED. Whatever systems that Man created whether financial or otherwise were first and foremost intended to oil the wheels of industry and commerce, domestic or international, to make them more efficient and hence able to serve as many people as possible. Its done in the name of creativity and innovations of which Man are richly endowed with. However, when greed becomes part of the equation, all hells broke loose.
Hedge funds start to leverage to the hilt to profit as much as possible from their positions, hence the billion $ paydays for successful managers on the one hand, and the spectacular (also billions $) blow ups eg. LTCM in 1998, on the other. (In the 2008 financial and economics meltdown, 5,000 out of 8,000 (Tun's figure) hedge funds operating worldwide lost money and many of them were totally wiped out. The other 3,000 did well as if theres no crisis or inspite of it, with their managers continuing to enjoy multi-million/billion $ pay and bonuses - as usual per previous years).
Innovations lost all sense of purpose except to enhance profits, hence the mess left in the wake of the subprime mortgage, the CDOs, CSOs, and the trillions of unresolved credit swap derivatives positions which now hang like the sword of Damocles over the head of the already precarious global economy.
Take out the greed factor (as well as a host of other evil and parasitic devilish factors), then whatever systems developed under whatever "ism" will work out right and will serve mankind as intended. What more, if its based on Islamic principles and practises. Its the only way forward!
Can we safely say that the Malays are now a failed race? They are just hopeless in every aspect of life. They are naive and gullible lot. Their mentality is far from matured. They can't take care of themselves.
Some of the Malay leaders UMNO/PAS/PKR and the Malays themselves seem to be "bodoh sombong" and dah "bodoh stupid". Are they suffering from cultural shock with the "limited" success they have achieved thus far that make them become arrogant? Are they having difficulty to adjust themselves with the fast changing environment?
There must be something wrong with their state of mind. It is very obvious that they really do not know what they want in life.
Politically, they are not united and they are now "terombang ambing" without direction.
Mereka pandai cakap dan komen saja tapi akhirnya pi mai pi mai tang tu je. Haprak and HP6 !!!
Hanya masa sahaja yang akan menentu ke arah mana Melayu hendak pergi.
Dalam situasi Melayu dah kena "main" seperti di Perak tidak heran Melayu akhirnya akan terjeler lidahnya mengeluarkan air lior sahaja mengharap belas kasihan dari orang lain.Itulah hakikatnya yang akan berlaku dalam masa yang terdekat ini.
Melayu masih belum sedar lagi dan mungkin tidak akan sedar langsung dari terlena.
Melayu mesti bersatu kalau inginkan perubahan untuk bangsanya. Jika tidak terimalah padahnya nanti kepada anak cucu kita.
Pandanglah anak cucu kita puas-puas dan fikirkanlah apakah nasib mereka akan datang kalau kita tak bersatu. Janganlah biarkan mereka merempat dinegaranya sendiri Persekutuan Tanah Melayu !!
Dear Tun,
The created money is actually an IOU taken by the governments to be paid in the future. It is a loan the future generations will have to pay back. And as you have rightly pointed out these future generation will need to indulge in the same deceit and abuse to pay the IOUs. If they can't then they will be frustrated and angry for the present (older generation) for making them poor. In which case the goverment of that day may just decide to go to war with the rest of the world. Just like what Hitler did in World War 2!!!
Now is the BEST opportunity for Muslims to introduce and practice a just international monetary and financial system.
Lets start with an international currency that will be fair as follows;
International trading
One issue which we need to explored is cross border trading. This will also cause us to examine the currency. At the national level currency is straight forward and within the control of the government.
But international trading using the national currency becomes a problem. At present a company in country A will buy the currency of country B to buy a product from a company in country B. This process has created the act of currency trading. Currency trading is good for international trading but once the currency itself is traded as a commodity it becomes a problem. As we have seen in the Asian economic crisis overactive trading or speculation in Asian currencies finally caused their values to drop astronomically. It had nothing to do with international trading and business it was pure gambling with the piece of paper called currency.
Another situation that had caused human suffering is pegging a nation’s currency to another’s currency, such as the US dollar or gold or such. The problem with this is that such things are not stable and are subjected to supply and demand forces which cause their value to fluctuate as well. How do you peg to a moving target?
Options for an equitable international trading medium
All currencies are supposed to be valued against what the country has - its assets/resources, just like a company. A nation’s economic value is what assets/resources it has that other nations want - in other words, the exportable assets/resources. Assets/resources that are in excess of what the nation needs.
There has to be an arbitrary unit of exchange (lets call it a UN$) between currencies. All currencies will be valued against it. Each national currency will declare its assets/resources and than decide what value they want to affix it against the UN$. Such value is the prerogative of the said nation(Central Bank). With that prerogative comes the responsibility for the well being of its nation in terms of foreign exchange and export earnings to use for their own imports.
The UN$ is just a medium of exchange to be used in international trading and is not the real value in itself. There is no need to buy the foreign currency to trade across borders; however, we need to buy the UN$ from the exporter country based on the set rate. The rate may be that my Euro is equals to 10 UN$ and you declared that your Dollar is equal to 2 UN$. So we trade against this bench mark. The UN$ will be the international currency.
Who is the custodian of the UN$? It has to be an international body, consisting of all legitimate countries in this world, whose members are amongst equals. It is not like the UN or the Security Council or the World Bank or IMF which are not of equals. The UN$ don't need to be a physical currency. It can just be a store of information of UN$ that a country has as asset.
Tun yang di hormati,
Betul ke 'Hedge Fund' ni beroperasi macam pembangkang dalam politik.
Betul ke Hedge Fund ni merobek - robek ekonomi sesebuah negara macam pembangkang merobek-robek fahaman kerajaan sesebuah negara.
Betul ke Hedge Fund ni selalu berfikir berlawanan dengan perancangan ekonomi sesebuah negara. Macam pemikiran pembangkang yang berlawanan dengan ideologi kerajaan di sesebuah negara.
Betul ke Hedge Fund ni buat gitu untuk membetulkan kesilapan atau kekurangan perancangan ekonomi sesebuah negara. Macam pembangkang membetulkan kesilapan atau kesalahan pentadbiran kerajaan.
Kalau betul, ada baik nya juga ya Tun.
Orang putih kata "check & balance' ya.
Dr Mahathir,
1. On Monday, 27 April 2009, PM DS Najib has announced
moves to liberalise the country's financial sector.
2. One of the moves is to accord the Labuan offshore
players greater flexibility.
3. Another is to issue banking licences to world class
players in setting up Islamic and commercial banks
as well as family takaful companies to be set up
between this year and 2011.
4. These moves among others are said to be more than
the country's obligations to AFTA.
5. My question is, what happened to Malaysia's stand in
capital control?
6. Is Malaysia converting Labuan into another Cayman
Islands i.e an epicentre for hedge funds
and derivatives trading?
7. No wonder WTO have not yet give an indication
to Malaysia as to when they are resuming talks
on AFTA agreement.
"Pak Lah made MAS adviser"
PETALING JAYA: Former Prime Minister Tun Abdullah Ahmad Badawi has been appointed as Malaysia Airlines (MAS) adviser effective May 1.
MAS chairman Tan Sri Dr Munir Majid said the airline’s board welcomed Abdullah, with his wide experience and extensive contacts, to the non-executive appointment.
“We look forward to a beneficial association with him,” he said in a statement yesterday.
Abdullah stepped down as the fifth Prime Minister on April 3 after helming the Government for six years. Datuk Seri Najib Tun Razak took over the reins in a smooth transition.
(The Star 5/may 09)
Pelantikan yang membuang masa dan wang kerajaan.. Apakah Pak Lah mampu dan boleh nasihati MAS ..? Beliau tidak mampu memikirkan permasalaan didalam MAS..Setakat bagi Penerbangan percuma kesana-sini boleh laa.....
Fikir-fikir lah ..
Salam Tun,
To CSL 5May 2009 12.38AM.... On Car Prices in Asia Pacific
1) Instead of asking the government to reduce the price of cars you should just encourage Malaysians to follow the gwailos. Buy what you can afford and be practical.
2) APs change hands for RM30,000 to 40,000 because there are those who are willing to pay for those stylish cars.
3) It is about supply and demand.
4) You should ask why do Malaysians go for fancy cars when travelling is a basic need and the public transport is not that efficient.
5) Despite the high price you can see more imported luxury cars on Malaysian roads than in Jakarta or Bangkok.
6) Malaysians are not as practical as the gwailos and they don't buy cheap cars or a Malaysian made cars simply because they are cheap or Malaysian made.
7) Remember not long ago we only bought more expensive continental cars instead of the cheap Japanese cars, why?
7) The prices of cars will go down if we stop buying those so called expensive cars.Full stop!!!!!!
Wassalam
Assalamualaikum.
1. Tun telah menjelaskan kepada kita semua tentang keburukan sistem kapitalis ini dengan mudah tapi jelas. Lihatlah tiada apa yang istimewa dengan sistem ekonomi dan kewangan ciptaan manusia ini. Kesudahanya hanyalah kemusnahan yang sukar untuk dibayangkan.
2. Adakah kita masih ingin mengikuti jalan ini? Sesungguhnya mereka amat pandai mencipta keadaan ataupun suasana agar kita gembira bersama mereka sehingga mereka berjaya mencipta keajaiban kelapan dunia iaitu 'compunded interest'. Wang anda akan berganda tanpa anda perlu bekerja, biarlah wang anda bekerja untuk anda.
3. Beruntungnya kita sebagai MUSLIM kerana ALLAH telah mengurniakan kepada kita satu sistem yang dijamin selamat dunia dan akhirat. Sistem yang tiada penindasan dan penipuan, yang membawa kepada TAKWA kepada ALLAH. Sistem yang memupuk sikap amanah dan tolong menolong, menghindarkan dengki khianat dan kebencian sesama insan.
4. Kita tak perlu belajar di Oxford ataupun LSE untuk mengamalkan sistem ini kerana ianya dicipta untuk memudahkan manusia. Kekayaan adalah untuk ibadah bukan untuk bermegah dan menindas sesama insan.
Bila mati nanti satu senpun kita tak bawak masuk kubur. Begitu juga kuasa akan hilang bila terputusnya nafas terakhir. Carilah sekadar yang perlu dan janganlah berbuat kerosakan di muka bumi ini dan berlaku adillah kepada mereka yang lemah. Itulah tugas kita sebagai khalifah.
5. Sistem kapitalis ini akan hancur juga, cuma masanya kita tidak tahu. Marilah kita sama-sama berubah atau lari dari malapetaka ini. Bangsa Melayu akan selamat dan menjadi Bangsa Agong jika sanggup berubah dan lari daripada kerosakan ini. Kita akan memimpin dunia satu hari nanti.
6. Segala usaha hendaklah bermula dari kecil dan akan menempuh berbagai kesukaran. Jika kita bersatu tenaga dan usaha tiada apa yang mustahil dalam dunia ini. Persoalannya adalah mampukah kita bersatu. Kita gagal mencapai kata sepakat jika rakan kongsi kita Melayu. KENAPA?
7. Marilah kita bina AGAMA dari individu, keluarga, masyarakat dan seterusnya Negara. BANGSA tanpa AGAMA tiada erti dan begitu juga AGAMA tanpa BANGSA. Keduanya perlu ada seperti syariat dan hakikat. Jangan kita keliru dan dikelirukan oleh fahaman politik sekular ini. Tiada bezanya UMNO dan PAS pada pandangan saya, cuma retoriknya saja berbeza tapi matlamatnya tetap sama. KUASA yang sementara dan tiada nilai jika bukan kerana ALLAH.
Assalamualaikum Dear Tun,
Perhaps its time to present a sustainable economy proposition, there are some very early infant stage of discussion here. hope this help..
http://forum.lowyat.net/topic/1012737
Indeed, it is easy to criticise the system.
But we need to note that without the vibrancy of the financial system created by the West, the world would not have enjoyed phenomenal growth so far. Without the wealth created, who has the money to buy the millions of vehicles produced by the Japanese and the vast electronics or other goods manufactured around the world. It is a system that we have condoned all these years thus, everyone should share the blame.
We also need to understand that wealth creation takes many form. The form as critised by Tun is just some of the several examples. When prices of goods are determined, they constitute a form of wealth creation too. I mean, like the price of oil, commodities, goods etc., Who is to determine the value of those goods? Why are they price the way they are? Can we peg them. Obviously not.
Thus, when financial system are created to determine value of currency, it's just another form of how the system works. If one day, price of our palm oil becomes so high that it affects the whole world economy for some reason, perhaps, with a stretch of imagination, when palm oil is the only source of biofuel when crude oil diminishes and soya bean and other oil cannot be produced, are we there to stop the sale of palm oil to free the world of such turmoil.
We borrow to buy house. Who is to determine that we pay 10 % and the rest is to be financed? Who should have a say that this is most equitable. Why should the peg be 10 : 90 and not 10 : 9000, like the hedge fund's borrowing as correctly pointed out by Tun. It is the system that determines it. Over time, the system need to be corrected based on prevailing circumstance. Leverage does help economy because it creates wealth and generates economic activity. With better economy, the poor can sell their goods / services and prosper.
I think the system is far complex than what Tun has envisaged. We need to study beyond the simplisistic analysis as offered by Tun.
SALAM AYAHANDA RAKYAT TUN
IZINKAN,
By zamanAuthor Profile Page on May 4, 2009 2:57 PM
Salam Sejahtera Untuk Tun dan keluarga.
Tun first of all I would like to thank and greet you happy annivesary
for your Chedetblog which started on 1 may last year.
What a marvellous blog it had been almost 20 million visitors visit your blog in such a short period.ITS SIMPLY MIND BLOGGING FEAT.
Kalau lah Tun charge 50 sen pervisit wow.dah jadi multi millionair Tun.Nevertheless, we know you are a person money cannot buy.
YES, OUR AYAHANDA TUN IS ALL RAKYAT AT HEART. BUT PERHAPS, WE SHUD TAKE THE CUE AND ESTABLISH AN ANAKANDA CHEDET.CC 'FACILITY FUND' WITH NO 'HEDGE' ON THE CONTRIBUTIONS WITH THE SIMPLE OBJECTIVE TO 'FACILITATE' THE MAINTENANCE OF THE BLOG AND/OR ORGANISE AN ANNUAL GATHERINGS AND WHERE IT'S DEEMED NECESSARY AND/OR APPLICABLE.
WE BELIEVE THE 'SUMURAIS/MUSKETEERS' OF THE IMPERIAL COURT OF CHEDET.CC TOGETHER WITH THE BLOG ADMINISTRATORS CAN BE ENTRUSTED TO MANAGE THE 'FACILITY FUNDS' IF AYAHANDA TUN WUD GIVE THE BLESSINGS.
OUR SINCERE THOUGHTS TO ALL ANAKANDA RAKYAT CHEDET.CC. AND PARDON US IF THE IDEA IS 'DISTURBING' THE AYAHANDA RAKYAT.
ALFATIHAH, AMIN.
Tun,
Printing money US Dollar trillions by Fed is to recover the US Government bail out. Well, who owns USA actually and who created a piece of paper become a valuable commodity? Let's see how smart they are in recovering their manipulated profits & losses.
Dear Tun M,
I am of the opinion that Anwar Ibrahim is a very irresponsible politician. He is a very desperate person who will do anything for his self-interest and political survival.
Anyway, whatever strategy he has something up his sleeve will not be totally successful. Yes, he might win some by having continuous by-elections but "pandai-pandai tupai melompat akhirnya jatuh ke tanah juga".
I am very confident that his dream to be the 7th prime minister of Malaysia will never materialise. He will continue a dreamer!
Every year the date 16th Sept. will continue to haunt Anwar, biting his fingers like a crying baby with feeling of frustration and anger for not getting what he wants.
At the end of the day, his political career will fate away and gone into infinity. He will be floating into the twilight zone as UFO (Unidentified Flying Object).
Actually, it is a blessing that he is not our Prime Minister. Or else I think the tendency for him to be like Sukarno is very great indeed.He will behave exactly what Sukarno did when he was in power as President of Indonesia.
Anwar is a man having split personality. Today he can be an ulamak and tomorrow he can be a devil.Having such personality as a leader is very dangerous indeed. He will sell all of us to Husin Lempoyang, the Saudagar Unta jadi hamba tukang urut !! kah,kah,kah.
On the contrary, it is after all a market created by the capitalists for the capitalists. No one forces anyone to get involved in it knowing the risks it involves. Just let them play in it all by themselves. Some will lose up to 30 times and some will gain up to 30 times so that balances it all up anyway. It is after all a games of risk and there will be winners and losers. Nobody asked for Malaysia or any other country to be involved in the hedging of funds.
Closer to home, didn't Malaysia during TDM's time decide to print its own money thus making it currency printed out of will with no gold reserves actually backing it up. That was the factor that caused the RM to slide against the Singapore dollar and other currencies. Where is all the gold now?
Speaking of money out of thin air, there can be no comparison to money made out of corruption. Mega projects with kickbacks amounting to billions, hedge funding and forex trading transactions apparently conducted by Malaysia's central bank without the knowledge of the Finance Minister (sic). This has caused Malaysia so much more loss than anything else.
Malaysia mudah lupa...
Assalamualaikum Tun
Thank you for the informative pieces.
Now I know a bit more on why the financial crisis is happening.
Looking forward to learning more from you.
Best regards.
Zaki
YABhg Tun,
"..one day the bottom will drop out...." - Bob Marley
YABhg Tun,
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
EVERYDAY IS 9/11 IN PALESTINE!
Salam Tun,
If the trillion of dollars are created by the greedy and selfish people, bailing out of banks, other financial institutions etc becomes possible because money begins to flood for people to swim (sink) in it!
And this could create many other possibilities : the value of money kept in banks becomes less due to inflation, low interest fee will be charged by banks to borrowers and this could result in more companies to expand and more people to spend till such time when the created (printed) money has been exhausted and deflation will now begin to cause havoc!
We are now faced with another man-made misery! What next?
Assalamualaikum Dear Tun,
Well, seems like somebody is really making a huge comeback this time. Congratulations Tun. Anyway Tun, with regards to the present economic situation, it can be safely said that the money circulation has been much reduced at a national as well as at the global level. The most important question is that where have all these money gone....? Certainly, it can't just dissapear like that. I mean, we are not talking about genie in the lamp here. 'They' must have kept it somewhere right ? And am sure Tun is the man who really know these guys inside out, and their 'common' playing ground....? Please Tun M, enlighten us on this..... Wassalam.
Assalamualaikum. Salam kasih dan Salam hormat Ayahanda Tun. Kira-kira 2 minggu lepas saya dah tulis kepada Tun bahawa Abdullah akan dilantik Chairman Air Asia. Nampaknya tersasar landasan sedikit anggaran saya Tun. Dia di lantik sebagai Advisor MAS akhirnya. Boleh kah begitu Tun? Tak ada "conflict of interest" kah? Apakah ini ada kena mengena dengan sebarang (jika ada) langkah-langkah awalan untuk sebarang jenis platform diantara MAS dan Air Asia? Umum tahu siapa Air Asia. Terima kasih Tun.
Salam kasih dan hormat Ayahanda Tun. As per my low budget disclosure on the perils of “kaki” fund manager routines in Malaysia somewhere earlier in the comment section here, we have been inundated with quite a lot of emails on the subject. “Don’t write anything I am not prepared to repeat in a court of law”, - I’m afraid is old text book syllabus. It’s toothless and doesn’t bite anymore. “Don’t hatch anything they are not prepared to hear in a court of law” is more apt to things. Going on to our topic Tun, how they operate is like this Sir, these kaki all believes themselves (in all their honesty) to be legit and valid in going about “soliciting” these funds on behalf of their pedigree owners. They after all have “a valid and registered Sdn.Bhd company” for that platform. These companies of theirs are registered with the ROC and they go about getting all sorts of sub license from Kementerian Kewangan. Perkhidmatan Membekal Makanan Bermasak, Perkhidmatan Membersih Banggunan, Perkhidmatan Membekal Alatan Menulis and so much more. They then have certificates issued to them by relevant authorities. And they themselves jump into any (questionable) cert bearing short courses (local/overseas) on fund markets as to lend credence to their scam. Then they drive fancy wheels and run errands overseas for their bosses so as to make their “client” think that it’s really them the fund managers. But they are not. They only go about soliciting funds on behalf of their managers. Why don’t the government call up on all licensed fund managers/banks and just do a check to see how many “consulting companies” are actually under them? Or affiliated to them running this kind of fiddle? Determine exactly what is the actual role of these “consulting companies”. Correct me if I am wrong, but are they allowed to act as a deposit taking body? Sometimes funds get transited in their company accounts first before making its way to the main licensed channel. Anything can go wrong here. This entire selsema babi episode is really making everyone edgy; I don’t blame them for emailing us aplenty.
Salam Tun,
Write a book about it My Bro Tun. I have been reading all the books you had written since; including the books written by your admirers and otherwise.
Wassalam.
Aldeenor aka Orang Minyak- oilmanster@gmail.com
just wonder...
did hedge fund is same with IMF?
how to differentiate both of them?
maybe...our government need to print trillion of paper money everyday to boost the stock market over 10,000...
just wonder...
SALAM AYAHANDA RAKYAT TUN
IZINKAN,
...
7. The United States and other rich countries are trying to restore their wealth by trillions of dollars in bailouts. The world must know the trillions are not from taxes and other revenue collected by Governments. They are created.
...AND YET THEY HAD THE CHEEK TO CONDEMN AYAHANDA TUN'S ACTIONS TO SAVE THE FINANCIAL INSTITUTIONS DURING THE 1998 CURRENCY CRISIS.
WE WONDERED IF AYAHANDA TUN STILL RECALLED THE LETTER WE WROTE THAT YOU ARE ON THE RIGHT TRACK AND THE ALMIGHTY ALLAH SWT WILL BLESS YOU WITH SUCCESSES AGAINST ALL ODDS?.
JASA MU TIDAK TERDAYA BAGI ANAKANDA RAKYAT MEMBALAS NYA.
HANYA YANG KAMI MAMPU MEMOHON KEHADRAT ALLAH SWT MELIMPAHKAN ZAT SINARAN KASIH SAYANG NYA KEATAS AYAHANDA TUN DAN BONDA TUN.
ALFATIHAH, AMIN.
Dear Tun,
Starting from the false economics indices, the jews have succeeded to nurture our greet towards the false wealth, happiness and the actual needs for every mankind. Tun, you also have explained the economics instruments used to deviate our dependent only to the Al-Mighty. There is a common phrase to describe the economy, "When America sneeze, everybody will catch the cold."
I do hope other readers able to distinguish one common feature between all the economics instruments introduced by the modern world. Banking system that provides loans, credit cards, currency and the hedge fund that just introduced by Tun are all purchasing power or money created without any base value (After 1971 President Nixon).
Another large part of Nixon's plan was the detachment of the dollar from the gold standard.[71] By the time Nixon took office, U.S. gold reserves had declined from $25 billion to $10.5 billion. Gold was an underpriced commodity, as the dollar was overpriced as a currency. The United States was on the verge of running its first trade deficit in over 75 years.[80] The price of gold had been set at $35 an ounce since the days of Franklin Roosevelt's presidency; foreign countries acquired more dollar reserves, outnumbering the entire amount of gold the United States possessed. Nixon completely eradicated the gold standard, preventing other countries from being able to claim gold in exchange for their dollar reserves, but also weakening the exchange rate of the dollar against other currencies and increasing inflation by driving up the cost of imports.[72] Nixon felt that the dollar should float freely like other currencies.[81] Said Nixon in his speech:
"The American dollar must never again be a hostage in the hands of international speculators.... Government... does not hold the key to the success of a people. That key... is in your hands. Every action I have taken tonight is designed to nurture and stimulate that competitive spirit to help us snap out of self-doubt, the self-disparagement that saps our energy and erodes our confidence in ourselves... Whether the nation stays Number One depends on your competitive spirit, your sense of personal destiny, your pride in your country and yourself
The other economics instruments that also operate actively without a base value for the past 50 years are Stock Exchange and Company Long term profit Bond. By definition any economics system either in Macro or Micro scale are gauge by using the following accounting algorithm.
1) Equity = Asset – Liability.
2) Profit / Loss = Earning – Operation cost.
Without a base value, money created from thin air becomes the purchasing power to expose the natural resources to superficial demand. That’s how the Jews introduced the imbalances to the Equity equation. This is how mankind made to think that they initiate the development of modern civilization. The world satisfied with the erected material developments becomes proves of human intelligent and dynamics.
The false development and its damage cannot be certain at the beginning, as the Profit/Loss formula surely can be earn and justify the greet of mankind. But later, with higher earning and operation cost that is prone to the influence of inflation the 2nd algorithm too is imbalance.
I have tried to introduced this as Riba, but the usury term is too harsh for the Islamic world. Maybe you can lead us from the Economics Series introduced in your Blog, please call all the economics instrument as RIBA/USURY. 2ndly, Tun, please help me to do activity mapping for the following four economic instruments ; Currency, Loan, Stock Exchange and Bond.
I am looking for the explanation for the activities mapping for the past 8 years. Its looks like the issue I tried to raise here is too sensitive to be mentioned. The last clue I get from a friend ; “ Hazrin , you can seek for clarification on Ringgit currency circulated from a Singh working in Bank Negara Malaysia”. Maybe Tun can help me out on this matter.
Hazrin Salim Marjan
019-2856285
hazriin@hotmail.com
Asalamualiakum bapak....
oooo...kaedahnya gitu ya.....baru faham sikit....
tapi ni nak gitau isi hati saya jer lah ni...lari topik lah...
naper pulak lah saya rasa najib n pak lelah same jer ek....
dulu pak lelah tak abis2 potong kek...la ni najib tak abis2 buat lawatan...idak ker masalah ekonomi lani perlu perhatian pm eh....
ye lah mcm pm yg ke 4 dulu buat kan....sanggup tak tido...demam pun keje gak sampai berjaga mlm.....ntah lah...sabar jer lah....
Tun,
It was nice that tun posting some about economic topic to share with us so more Malaysian will understand more about economic nowsdays.Malaysia people is lack of knowledge and some is lazy to read or even care about anything that around them.This is why Malaysia is not able to develop for became better country.
Regards,
Wallace
016-3535790
www.g-seed.biz
Tun Abdullah Appointed As MAS Advisor
comment:
Just to put on record, what does he know about airline industry to make him eligible to be MAS advisor? How much he is being paid as an advisor?
Anyway, if it is just a political appointment then it is really a waste of company's fund. Well, it looks like it has become part of a tradition for ex-prime minister to be given a so-called lifetime "high profile" job with all the "mind boggling" perks attached just to "acknowledge" his vast contribution to the nation.
Is there an annual KPI assessment for an advisor or the job is exempted from it? What a lucky guy he is !!
Hopefully, he would be able to learn fast the trick of the trade and contribute to the profitability of the company. Jangan pulak tidor je?
Don't get offended Tun M. I know you are also advisors of Proton and Petronas but I think you deserve it and you are involved in the in determining that the policies of the two companies are in the right track.
Sounds like robbery to me.
agak-agaknya lah apa akan jadi duit yang kita simpan skarang pada 20 tahun lagi... berbaloikah kita terus berjimat menyimpan kalau susutnya melebihi dividen yang di berikan.
apa gunanya lagi ASB, ASN dan tak apa mak nenek amanah saham.termasuklah juga yang baru di lancar baru2 ni ye...
oh ya kenapa agaknya PUNB tergesa2 sangat melancarkan amanah saham baru dan dibuka untuk semua kaum tu... adakah ini satu lagi cerita ponzi....
atau kita tak cukup duit nak naikkan lagi nilai saham di bursa malaysia...
Selamat Pagi Tun,
Quote
"9. Because we allowed a group of selfish greedy people to abuse the system, this is the inevitable result."
It is FACT that the selfish greedy people controls and manage the sytem. They playing the system to manipulate the weaker.
http://malaysiafinance.blogspot.com/2006_03_01_archive.html
Car Prices In Asia-Pacific
Topping The Charts As The Costliest Place To Buy Cars
If you live in KL, Singapore, Bangkok or HK, time and again you will find some gwailo driving around in a beaten up car. We are talking about someone probably on an expatriate package driving around in a cheap car. Mostly its because they cannot envisage paying for a new car at those ridiculous local prices. They have bought and driven many cars in Australia, USA, UK or Europe but never could they imagine that cars in Asia-Pacific could cost so much. If you look at the average per capita income of these countries, you'd be surprised at how most Asians even manage to buy a car! Just have a look and compare the recommended retail prices of the following cars - the first price is in the local currency, followed by a converted price into USD for comparison sake. Not all prices or car models were available in all countries. I just selected from Malaysia, Australia, Singapore, HK and Thailand. And to think that the Malaysian government just lowered the car prices some more, Malaysian car prices cited are the "new lowered prices".
AUDI A6 2.4 Multitronic (Auto)
MYR368,000/US$100,000
AUD80,600/USD57,500
HKD431,000/USD55,500
THB4,170,000/USD107,400
SGD188,000/USD116,100
AUDI TT Coupe 1.8 Turbo (Auto)
MYR338,000/USD91,700
AUD81,200/USD58,200
HKD433,000/USD55,800
SGD186,000/USD115,000
BMW525i (A) E60
MYR398,000/USD108,000
AUD93,900/USD67,300
HKD565,000/USD72,800
SGD222,500/USD137,500
BMW 645Ci COUPE
MYR808,000/USD219,400
HKD1,298,000/USD167,200
SGD345,000/USD213,000
BMW Z4 ROADSTER 3.0
MYR468,000/USD127,000
HKD533,000/USD68,600
AUD93,400/USD67,000
CITROEN C2 VTR SENSODRIVE (Auto)
MYR130,000/USD35,300
HKD148,000/USD19,000
AUD23,000/USD16,500
HONDA CIVIC 2.0 VTi-s (a)
MYR124,000/USD33,600
HKD185,000/USD23,800
AUD26,500/USD19,000
SGD79,000/USD48,800
THB1,020,000/USD26,200
HYUNDAI SONATA 2.4L (a)
MYR122,000/USD33,100
HKD159,000/USD20,500
AUD31,500/USD22,500
SGD65,000/USD40,100
LAND ROVER 4.4 V8 (A)
MYR772,000/USD209,600
HKD1,250,000/USD161,000
AUD141,900/USD101,600
SGD368,000/USD227,500
THB8,450,000/USD217,500
MERCEDES BENZ CLS350 STANDARD (a)
MYR688,000/USD186,800
HKD935,000/USD120,500
AUD139,400/USD99,900
SGD289,000/USD178,500
THB8,600,000/USD221,400
MERCEDES BENZ S350 (A)
MYR1,230,000/USD334,000
SGD329,000/USD203,300
PROTON WAJA 1.6 (A)
MYR63,000/USD17,100
SGD56,000/USD34,600
Generally Singapore car prices tops the bunch but there is still the COE for the Singapore buyer to pay for. The COE is an entitlement for buyer to buy certain type of cars, the bigger size the engine c.c. the higher the COE. But since the COE is tradeable, it is not a full expense item. The funny thing is that the Protons and Peroduas are so much more expensive in Singapore - take it from me, don't buy the Malaysian cars if you live in Singapore, its just not worth it. The argument that cars in the US are cheap cause they have the volume is shallow. Just look at HK, its a small place, expensive place, high per capita income, great infra even, but cars are very decently priced.
The car prices have to be seen in light of the average per capita income of the residents in the respective countries:
HK - USD36,800
Australia - USD32,000
Singapore - USD29,700
Malaysia - USD10,400
Thailand - USD8,300
So, if we take the BMW 525i (A) E60, a HK resident would take 1.98 years to pay it off. An Australian would take 2.1 years. A Singaporean would take 4.6 years. While a Malaysian would take 10.3 years. That is why so many gwailos would never ever buy new cars while living in Asia cause its ridiculous. The even more astounding fact is that, you will find an even higher ratio of the luxury cars being driven on the roads in Asia-Pacific!!!
While it is certainly cheaper (relatively) to buy in HK, the cost of maintaining a car in HK is very prohibitive when it comes to fuel, parking fees and parking spaces. For Malaysia, even with the recent price reduction, it is silly to have such high car prices when mobility is so important in Malaysia and the country do not have such congested city streets (relatively) when compared to Singapore, Bangkok or HK. It is downright embaressing when Malaysia even produces cars on its own. Countries that do not enjoys cheaper car prices??!!
To further emphasise how high car prices are for the general public in Malaysia, we have the Approved Permits (APs) which are basically rights for special car import permits. It used to be sparingly issued to some royalty or people coming to live in / coming back to Malaysia. A decade ago, the APs got issued in abundance - to magnify the distortion in prices, AP holders can import cars from overseas (reconditioned or new) and pay all the necessary taxes and duties, and still end up making tons of money selling to Malaysians. Why issue so many APs when car prices are artificially held up already. Its like raising the price of cigarettes to an artificially high US$8 a pack and at the same time giving APs to certain well connected groups to import on their own. These people, after paying all the taxes will still make supernormal profits selling at US$7.80! Where is the logic of the NAP? The fact that APs have been changing hands at RM30,000 to RM40,000, after the holders just paid a few hundred ringgit for it, further pisses the entire nation (except those connected enough to get those APs).
It is still OK for the average citizen in HK or Singapore as many do not own cars as the public transportation system is good. However, the situation is very different in Thailand and Malaysia, you need a car to move around. Even the massively subsidised fuel prices do not come anywhere close to curtailing the negative effects caused by the high car prices. While Thailand's fuel prices are slightly higher than Malaysia, at least when you drive in Thailand, you don't have to pay toll. Try driving from Johor to Kedah, and compare that from south of Thailand to Bangkok. For more than 1,000 miles in Thailand leading to Bangkok, not one toll station. So, what is so precious about Malaysia that we have such notoriously high car prices, low fuel prices but tolls everywhere... all on a per capita that is in the bottom half of the world, but with car prices at the top ten percent in terms of cost in the world??!!
Cars are a necessity not a luxury in those two countries. As for Malaysia - the opportunity cost, loss in purchasing power, loss in economic wealth, impairment in the strive for efficient utilisation of resources - just to protect the unimpressive (inefficient) local car manufacturers, is just too much to bear. Get this over and done with already!
People, cars have always been one of the worst type of investment you can get into, the depreciation value starts accelerating the moment the car moves out of the showroom. Whether you drive the car or not, it will still lose value with every passing minute. When the governments of these countries imposes high taxes and duties on cars, they are basically eroding the purchasing power and allocation of resources of their citizens. Its high time the price of cars need to come down a lot further in Asia-Pacific.
What goes around comes around. The balance never tipped one side.
DEAR TUN AND ALL,
IT IS TRULY A GREAT TRIBUTE TO A PERSON WHO DEDICATED ALL HIS LIFE TO POLITICS AND A BACKGROUND AS A PHYSICIAN COULD PLAINLY DESCRIBE "HEDGE FUND" TO US IN JUST NINE POINTS.
DR M MUST REALLY UNDERSTANDS THE SUBJECT.
I MUST CONFESS THAT NOT MANY ARE WILLING TO SPEND TIME TO UNDERSTAND ABOUT "HEDGE FUND", EVEN THOSE COMING FROM WITHIN THE INDUSTRY. IT IS JUST PLAIN COMPLICATED, AND ITS FOR THE SO-CALLED "BIG TICKET BOYS!"
WHAT DR M IS TELLING US IS THAT THE SO-CALLED DEVELOP COUNTRIES SUCH AS UNITED STATES, ENGLAND, FRANCE, JAPAN AND AS WELL AS SINGAPORE ARE GIVING PROTECTION TO THE BIGGEST FINANCIAL THIVES OR CRIMINALS OF ALL TIME.
THE "GREAT TRAIN ROBBERY" IN BRITAIN SEEMS LIKE A PETTY THIVES.
THAT IS WHY ONE WILL NOTICE THAT COMMENTS OR FEEDBACKS ARE COMING FROM ALL CORNERS OF THE WORLD, EVEN FROM FINANCIAL GURUS FROM RE-NOWNED COLLEGES AND OUTSTANDING UNIVERSITIES TO CHEDET.CC.
THE WORLD MUST KNOW THE FINANCIAL CALAMITIES THESE HEDGE FUNDS MANAGERS BRINGS ONTO EACH AND EVERY NATION. THE TAX-PAYERS BEARS THE BRUNT ALBEIT UNKNOWINGLY.
WHEN THE HEDGE FUNDERS, BANKERS AND GOVERNMENTS WERE IN CAHOOTS OVER THE BAIL-OUT DEALS, IT MEANS THE CURRENT DELICATE SITUATION WILL ONLY LEAD TO "FINANCIAL DOOMSDAY".
CLUELESS NATIONS WILL SUFFER AS AN INNOCENT BYSTANDERS!
"BARBARIANS AT THE GATES"
JAMILMALIK88
Rogue traders are using the hedge funds to pump trillions of dollars in the equity bond derivatives curreny markets to distort their prices deceiving naive investors to throw all their hard earned monies into such investments without realising that these traders are timing the markets to pull out when they have realised their profits. Poor investors, governments, companies, pension funds etc all watch and gape with horror to see their wealth evaporate overnight. The US made it all the worst because they keep on repeating the same mistakes- lowering interest rates, encourage banks to lend more, than inflation comes, increase the interest rates,the consumer cannot pay their loans give rise to mortgage collapses and cause the credit crunch, reduce the interest rates to stimulate lending and spending ...it goes in cycles!
Dear Sirs,
Greedy politicians cannot be trusted. They can use and abuse others to get what they want. Of course they are those that had been brought up spoiled, learned not to care and share. They are our Malaysian BN leaders for a large percentage of them to look out for them. Sometimes it’s the survival of the fittest, like untruths in the media, poor laws in our justice system, poor government, abuse of authority and on and on it goes so it can be hard to trust some people.
BN political survival, sometimes, in order to survive, this political culprits have to be selfish. If they were never selfish, they would have almost nothing. Because we allowed them since we are peaceful people who are very much frightened. Malaysians must be united and not to be frightened in order to disallow politically survival selfish people. Malaysians will be better without this kind of political selfish and dirty people.
Before the 12th general election, UMNO political leaders said openly in speeches clearly that they do not need Chinese, Indians and East Malaysians’ votes to win the general elections? Too greedy, you call that 1Malaysia? What happened after they lost? Culprits and cannot be trusted isn’t it?
Lately, you see what happened in PERAK? Greedier and more selfish!
Yours truly.
Dear Tun,
Hedge Funds have been around for quite a while. However only now the USA SEC requested more power to regulate and monitor these funds. They should have done it earlier after the Asian Financial Crisis but since they were not affected then, they defended the hedge funds as a very important component of the "free market".
Let us go back to my earlier comments to your earlier articles. As money is now a commodity especially the US dollar, it is naturally being controlled by the developed countries. Developed countries become a "safe" place for governments and rich individuals to put their wealth and savings. One could see the purchase of US Government Bonds and Treasuries by countries as an example. In addition the rich from developing countries open USD or Euro Accounts to place their savings in a "safe" place.
The banks who received the money now need to invest it to get returns. However since there are not many investment with spectacular returns, they are hard pressed for investment opportunities. Else they will be sitting on a non-productive assets. Investing in developing countries is deemed as risky. Hence developing countries find it difficult to get money unless in the form of a loan from IMF, World Bank or developing countries with strings attached.
Hedge Funds then became a channel for banks in the "free" and developed countries to obtain "safe and good" returns. However the so call "free market" is actually not so free. It is being control by a few people who knew one another like cronies. So hedge funds could gain easy access to such huge funding support or borrowing.
The current financial crisis has shown that wealth in the form of money should not be fully placed in the developed countries. In addition, we must not allow the so called "free market" to effectively allocate the money or wealth because the poor will be left out. There is only a free flow of money but not goods and people.
At this time we need a regional solution. Government has to play a bigger role since they are elected by the people. Government could be changed by election but people behind the hedge funds are not elected.
Regards
Salam buat Tun berdua moga dirahmati Allah s.w.t.
1.Betul semua sistem perkhidmatan yang ditawarkan seperti "hedge fund'boleh dimanipulasikan oleh mereka yang tidak mengenal dosa samaada oleh pelabur atau pemberi perkhidmatan itu.
2.Situasi ini ibarat 'gameling' masing-masing mengharapkan durian runtuh.Modal sikit keuntungan besar.Pemberi perkhidmatan ini umpama membantu membina titi tetapi bayangannya jerat yang tersirat.
3.Jelas kalau resiko tinggi marjin modal labur di jerat dengan keuntungan besar.Sementara resiko kecil marjin modal labor kecil pula keuntungannya.
4.Sebenarnya ketakutan kita terhadap kejatuhan ekonomi di Amerika ialah kesannya terhadap pekerja-pekerja di negara kita.
5.Dasar kita mengharap pelabor memberi peluang pakerjaan kepada kita oleh negara Cina pula kini.. adakah jaminan tidak akan berlaku situasi yang sama dengan pelabor Amerika ?
6.Sejarah telah membuktikan kejatuhan empayar-empayar besar oleh manusia yang menyalah gunakan kuasa memimpin,agama,wang,alam semulajadi,tanah,lautan,tumbuhan,binatang dan tuhan.
7."Hedge Fund" adalah mainan si degil hukum Allah s.w.t.Sabarlah kedegilan mereka pasti terhapus oleh yang maha berkuasa suatu hari nanti.
8.Jatuhnya Bank of Amerika pasti tiada bezanya bagi mereka sebagai pencipta yang terkesan pasti pengguna serta pengamal ciptaan mereka.
9.Perbezaan kaum negara ini adalah lubang utama musuh Allah s.w.t kalau jenerasi sekarang membuang pakatan moyang mereka dahulu yang sanggup hidup bersama mengikut kerukunan agama Islam.
10.Satu Malaysia hanyalah indah khabar dari rupa kalau kerukunan moyang dahulu dibuang jenerasi sekarang mengikut kedegilan satu bangsa yang rancak mengalirkan pengarohnya melalui budaya masing -masing.Siapakah bangsa itu? Bangsa yang membolehkan amalan yang merosakkan itu oleh agamanya.Anda semua bijak cari dan kajilah..
11.Hukum Allah s.w.t adalah sebaik-baik kepada umat bernama manusia.
Anda akan mengakuinya sendiri jika mengkaji untuk Allah s.w.t dan mengimamkan Nabi Muhammad s.a.w.
12.Allah s.w.t sentiasa menanti manusia yang diciptanya kembali menyembahnya dan mengikut hukumnya.
13.Wallahua'lam.Maaf dan terima kasih kepada yang sudi membacanya.Sesungguhnya ilmu yang lain di miliki oleh anda yang berakal.
Dear Tun,
It is all due to greedy, that why a government should have a role to supervise and set the rule in order to avoid these capitalist from manipulating the system without thinking the affect might happen. During Asian financial crisis on 1997 to 1998, you the only one who willing to criticize these capitalist but the rest of the affected Asian countries shut their mouth. Again, you open your big mouth to wake we up from these greedy capitalist, and again nobody have listen to your big mouth, what a shame. It sound of tight-lipped being put on to these affected countries by certain greedy capitalist in order to ensure they keep going doing their business as usual in manipulating the current system for their own benefit.
Your draconian idea to let these financial organization and banks to collapse sound very harsh and pretty weird, but for longer run it would probably beneficial because you let this greedy capitalist to collapse which mean stopping them from making further detrimental to the whole world. By putting new system would give new chance for economy back on track while preventing this virus from slip through is necessary.
Clearly, the idea to bail out these failed banks and financial organization would mean help them to do further detriment to current crisis since these government have already use a lot of created money to bailed out these failed banks and financial organization. In the end the people would suffer (affect) but not this people who already rich.
BUSTANUL BISTARI BEY
Salam kasih dan hormat Ayahanda Tun. I have mentioned before that hedge fund operators in Malaysia too needs a more rigid monitoring by the authorities - and I prefer that to be singular; less bureaucracy and time wasting toothless policies. A previous fund manager I knew only speaks two words in the times we knew him: fees & funds. All kinds of gila funds. See it’s like this with them, first they recommend you to invest this and that. When you have some dough to spend, they tells you to go buy a new car, they recommend the car sales (of which you don’t even need) with their kaki and they also gets you to take up finances with the banks they may be attached with. That’s not the only way they go about making “side income”, they also deals the same with condos and landed properties. Funny thing is, they don’t have fund manager license. In all fairness I must mention that not all of them are like that. Some are decent and sincere. But it’s the other 95% of them that’s giving the remainder 5% a bad name here.
They are just merely “kaki” themselves who works for the managers -with license- who just assumes the role of corporate big wigs 9 to 5 in plush offices if not in KL maybe in London today NYC next week. Big funds, big monies Tun. The world is just a flight away. I have insisted on their credentials and they could not come up with any. And yet they tell their “clients” to just hand them the money and they would take care of all investments for them. They then take the money back to their bosses for investment. They then get the “fees” both ways. Don’t you think this is dangerous and down right a dozen of loopholes frolicking all in one here?
I feel that a licensed fund manager MUST interact with clients on a one to one basis. And no reputable establishment should condone the “kaki” service routine. This “kaki” doesn’t even know what hedge fund is all about really. They don’t even know if their bosses would invest the funds that they have collected in buying distressed debts or what not. They don’t even know what leverage multiplication is or even what short selling really is. As I have said before, all they know is: fees and funds. Two simple commands and they are set free to roam for big bucks. The government must do a check on this and see for themselves if its real or just my sleep deprived hallucinations here.
Imagine the amount of trade these kaki handles Tun? Now imagine the kind of damages they can inflict with that kind of fire power. Hedge fund has come to be applied on many funds that are not really hedging any of their investments. They wont hesitate short selling’s with greater risk exposure to the whole economy in anticipation of “bigger” returns. The kaki can only say: fees and funds. More explanations I’m afraid it’s the Wiki – as licensed managers, are frolicking thousands of miles away. Something has to be done in our very own backyard first I’m afraid.
Free the media, Govt urged
By ROYCE CHEAH and LESTER KONG
PETALING JAYA: The National Union of Journalists Malaysia (NUJM) has urged the Government to open up media space in line with the global trend that called for a freer press.
It asked the Government to scrap the Official Secrets Act (OSA) and instead enact a Freedom of Information Act.
NUJM president Norila Daud, in a World Press Freedom Day statement on Sunday, said the mainstream media suffered from a negative public perception as a result of being restricted by the OSA, the Printing Presses and Publications Act and the Internal Security Act.
She said the Government needed to be sensitive to the global information trend that called for a more open press and a policy of integrity, accountability and good governance.
comment:
I think the present status of our press freedom is adequate. I don't think the govt. is so restrictive to hamper the work of local journalists.We still need all those Acts that are perceived to be restrictive in order to protect the peace and security of our country. We have not reached to a stage where we could claim ourselves as civilised society at par with developed countries. A long way to go. Being a multi- racial society there are a lot of sensitivities that the govt. has to monitor. We are still not matured in our thinking to have total freedom of speech and expression. The most glaring is that there are some journalists who are still inclined to champion certain issues based on racial lines.Make no mistake about it. Prevention is better than cure!
7. The United States and other rich countries are trying to restore their wealth by trillions of dollars in bailouts. The world must know the trillions are not from taxes and other revenue collected by Governments. They are created.
boehkah tun perjelaskan pekara di atas?..apa maksud they are created?...apa akan jadi pada matawang,hedge fund and others jika suatu hari kejatuhan dollar terlalu tinggi...apa kemungkinan matawang dunia akan ditukar kepada euro?..minta tun perjelaskan...
faizfakhirin.
http://indicators-forex.blogspot.com
http://bankami.blogspot.com
To tell the world about the economic failure due to their own mistake is easier than telling those giler kuasa UMNO/BN about their own rasuah hand destroying Malaysia.
Tun,
It's gambling, it's quick yield, it's riba. Who desn't want to get 30 times profit within a week or month without capital? So...... forget riba!!! Forget about other people suffered losses! Huge profit is now, riba penalty is later!
This is my 1st comment on your blog, Tun! I'm really impress on your point of views & wise thoughts... In respect to "the hedge funds", pls kindly share with us if you have any comment in term of our domestic perspective... Well done & continue your great efforts!
Tun,
Firstly, congratulations on your first anniversary as a blogger. With over 18 million hits over the past year, you are no doubt the leading blogger.
You are right, the hedge funds were too highly leveraged, and they brought down the banks together with them in the event of failures. Hedge funds were also too involved in games of chance in their investment schemes.
We need to look at the virtues of the shahriah-based principles for conducting business and investments, in order to have a more solid and stable financial/economic model. Businesses should be transacted based on tangible wealth, with the absence of pure speculation.
http://www.jurublog.blogspot.com
Dear Tun,
Agreed that the current financial crisis is because of the banks and hedge funds invested in financial derivatives without being regulated. Sub-prime crisis is just a spark that triggered the bubbles created by financial engineering for higher returns by fund managers.
But Tun, Do you agree that we are doing the same in this country. In fact do you agree that many of the structured warrants offered by brokers and securities companies are just papers without any real business. That is why if you buy warrants and keep it it will be valueless. It is just speculative instrument and the price would be zero after certain fixed date. But why Bursa Malaysia allowed such products being offered?.
To me it is a form of gambing, just like buying a magnum tickets or lottery tickets. After drawing dates the papers are useless. For firms offering the papers they are doing legitimate business. They are offering you a piece of paper with promises to pay you if you strike. ( They also use the word "strike price" in warrants)
Gambling is also legal in Malaysia. We cannot say that fund managers are running a ponti scheme while in Malaysia we still allowed MAGNUM, Sport TOTO, Kuda and Lottery to run a gambling business.
The GOVERNMENT OF MALAYSIA is the biggest shareholders in this gambling companies if we are taking into account all the gambling taxes. Government also own shares in Bursa.
Therefore, in final analysis it is the money games that smart and powerful entity are playing with the small players. At international level the fund managers are offering it but in Malaysia we have the Government and gambling companies offering it to the rakyat. The banks going burst investing in those derivatives. Many poor folks also going broke gambling with Malaysian government.
Salam Tun,
Sistem ekonomi dunia sekarang yang berasakan sistem ekonomi yahudi/barat haruslah ditukar dengan sistem ekonomi Islam. Nilai matawang haruslah berasaskan nilai emas, bukannya nilai US dollars.
Diantara ciri-ciri ekonomi Islam yang sepatutnya boleh mengelakkan berlakunya krisis ekonomi sekarang ialah didalam Islam, seseorang itu tidak boleh menjual sesuatu barang yang bukan milik atau kepunyaannya, contohnya "short selling".
For free productivity tips, visit http://usefultechs.wordpress.com
Dear Tun Dr Mahathir,
The hedge funds are there to be used as a last resort. So, even if that too is invested, and that too are unsafe investments,then it is akin 'digging their own grave'.
If the bailout funds are created funds and are subject to the same risk as that of the other investments, then, if anything goes wrong with the financial institutions after such bailout, it is going to be a disaster.
Because of some vulturous, greedy, selfish and arrogant people around the world the other innocent people are facing severe financial risk.
Anyway to stop this Tun?
Dear Tun
A agree with you 100% that the shadowy modus operandi of Hedge Funds (HF) should be arrested, the sooner the better
But this cannot be done by smaller nations like Malaysia or even through the concerted efforts of Asian countries. It needs the involvement of the USA, Britain, France, Germany, Japan and the more influential Western nations.
Efforts by the USA to register these HF has proven futile. The one thing all these HF's and freemarket operators fear most is TAXATION. The Central banks and Securities Commissions of all the nations in the world should therefore act together to bring these HF under control whereby these HF should mandatorily:
1. Register, like limited companies, with their country of domicile and reveal who the real owners and investors are, and make clear their business models and issue proper prospectuses.
2. They should not be allowed to operate from off-shore tax havens.
3. The maximum funds any 1 HF can operate with i.e. the capital, should be restricted by law.
4. Their leveraging should not exceed Debt:Equity ratio of say, 2.5:1, similar to mortgages where you put down a deposit of 30% and borrow 70% from the bank.
5. They should not be allowed to trade (speculate)in foreign curriencies and futures trading.
6. Their profits should be taxed heftly, say 50%, so that they contribute directly to society.
As to the wealth of the USA, their Govt generates some US$$3 trillion receipts every year (from taxes etc) and coupled with business incomes and profits, they have a lot of avenues to tackle the $700 billion TARP rescue funds deficit. A 1 off tax on individuals and corporate profits is clearly there as an option. There is still a lot of unexplored resilience within the uS Economy.
But who will set the ball rolling?
And I don't think that by partying with Ahmadinajad or Gadaffi, Africa and Middle East reps of shadowy reputations themselves, you will be tendering your credentials for the job in a mannner that will make the West sit up and take notice or be receptive to your views!
http://donplaypuks.blogspot.com
Assalamualaikum Ayahnda Tun n Bonda Toh Puan,
Alast! After 5 days waiting...glad to see the continuity of this issue.
The rich n famous in the rich countries, these people know the tricks n also those unscrupulous manipulators will forever gain all the profits in global money schemes. Ayahnda has made their activities so tranparent and I become envy at their capability in gaining easy access in the money trading yet I thank God that being handicapped in this area, I have not indulged myself in the manipulation of money.
A commoner like me can never buy shares, bonds, get fat credits from banks or finance companies...but I use real money (even it is only a small amount) when buying things and of course I get real items, not the virtual investment marketed online with the profit promised somewhere in the near (far?) future...
Alhamdulillah, eventhough I'm not rich, I am still able to do my job daily without any serious health problem. I have been able to raise my children with my small income n hope to see them succeed one day. I really appreciate the life I have in this country, almost free health service (just pay RM1.00 for some medicine if concerned). Try getting your health treatment in the so-called developed countries, and you are bound to be kicked out, unable to pay for the health insurance n so on. That's the price you have to pay to be in rich countries...
I am grateful to Allah, being able to learn since young in our moderate education system in the 60's - 90's n went overseas to pursue my studies, came back as graduate teacher n still work to help my students see their future, too.
I am grateful to live in this country...n never want to live elsewhere....
May Allah bless both of you, beloved Ayahnda Tun n Bonda.
Wassalam...
Assala alaikum
YABhg Tun and all CheDet's "fellow"
Without hedging funds, the business no longer can vulnerable or insulates itself from the future uncertainties and the effect of economy sick. This hedge is done in order to for future sake. The system is consider correct and right.
Do we remember Gandhi quotes? "The world is enough for the ordinary man but not the greediest one." As point no 7 indicates, yes, though the system is consider correct and right, but it can be used as a stepping stone to create more wealth by cheating and manipulating ways. Wealth might be piled up untill trillion, quadrillion, or quintillion. So that's why such investors can be discribes as "The godfather of economy troublemaker."
Hedges funds interwoven with manipulating and speculating were the main contributions of rich group country that leads by the United States. This also was the culprit of United States banks industries going down, spiral to the ground. This puppeted by the such investors. They always worked in marathon to create the never-ever existed financial complex spinning with thier comrades, and the rich country leaders are thier "court jester."
Salam,
Pengagihan dana dalam negara biarpun sedikit tapi biarlah semua hamba rakyat yang berhak dapat diberikan,tidak mahu berlaku penyelewengan.
http://zoompanas2.co.cc
This is as bad as people in power to abuse their power to gain personal interest off national resources.
Dear Tun,
The rate of closure of Investor is alarming & many of us are loosing our WORK.. PLEASE HELP
Salam Tun
A very big thank you for sharing your experience and this article with the Malaysian public ala CheDet readers. I have found all your blogs very informative and you certainly have a brilliant brain and a lot of experienced that have enlightened me and the many other readers at Chedet. I was surprised to read that the uS1 trillion dollars bailout by Obama is with created money. Initially I thought it was with actual, physical money. It appears they have not learnt their lesson if their want to pour more oil to the fire, instead of water. And you are right, with another splash of a bucket of oil, the fire will certianly be bigger. Thank you very much once again for sharing your thoughts, Tun!
ezanih
Salam Sejahtera Untuk Tun dan keluarga.
Tun first of all I would like to thank and greet you happy annivesary
for your Chedetblog which started on 1 may last year.
What a marvellous blog it had been almost 20 million visitors visit your blog in such a short period.ITS SIMPLY MIND BLOGGING FEAT.
Kalau lah Tun charge 50 sen pervisit wow.dah jadi multi millionair Tun.Nevertheless, we know you are a person money cannot buy.
TUN JUTAAN TERIMA KASIH GOD BLESS YOU INSHA ALLAH
Tun,
An execellant articles for us to be aware and take the necessarry precautions.Keep enligting us on the happening which resulted in the world to be faced by the financial crisis.Admire and have great confidence in Tun Dr. Mahathir Mohamed, to save the poor country from the greeds of the so called rich country.Take care Tun. Salam.
Salam YAB Tun,
Terima kasih atas penerangan dan pandangan ringkas tetapi jitu dan jelas dalam siri-siri 'crash course' tentang ekonomi dan kewangan serta penyebab berlakunya krisis kewangan dunia sekarang ini.
Bagi mereka yang tidak bersetuju dan cuba memperkecilkan penerangan dan pandangan tersebut atas sebab-sebab tertentu harus mengakui bahawa dengan sedikit ilmu yang telah anda perolehi itu menjadi penyebab utama penghalang kepada kamu untuk melihat kebenaran.
Memanglah sesuatu kebenaran itu adalah amat pahit. Tetapi jika dianggap sebagai ubat, pasti mampu ditelan untuk kebaikan dan kesihatan diri anda sendiri.
Mereka yang menyokong dan bekerja didalam sistem kewangan yang sedia ada pasti gelisah dan cuba mencari berbagai helah dan memberi berbagai pandangan, sebab dan cuba memperkecilkan penerangan dan pandangan Tun yang ternyata ada kebenaranya malah mudah difahami oleh semua.
Janganlah kita berasa iri-hati terhadap seorang Doktor perubatan hanya kerana dia lebih memahami bidang ekonomi dan kewangan daripada mereka yang telah bertahun-tahun didalam bidang itu sendiri tetapi masih kurang arif atau tidak mampu melihat secara menyeluruh bidang tersebut.
Satu hakikat dan kesimpulan yang rasanya tidak keterlaluan untuk diperkatakan ialah hampir setiap orang dewasa yang bekerja di dunia masa kini sebenarnya sedang bekerja keras untuk majikan atau tuan mereka yang sebenar iaitu pihak bank dan peluang untuk membebaskan diri adalah teramat tipis kerana sistem yang ternyata tidak adil dan amat meragukan.
Setiap manusia harus cuba membebaskan diri dari terus menjadi hamba kepada sistem yang diciptakan oleh manusia lain. Janganlah sampai manusia terus hidup lalai dan terbelenggu dengan pelbagai tipu-daya sesama manusia dan terus melupakan segala nilai-nilai murni kemanusiaan serta tanggung jawab kita sesama manusia dimuka bumi ini.
Wassalam.
Salam Tun,
satu artikel yang menarik dan membuka minda.
Tahniah... harap lebih ramai ahli politik diluar sana (tak kira parti mana sekali pun) berfikiran seperti Tun.
www.sembangsembangunittrust.blogspot.com
For as long as bank notes or currencies do not represent real value, these problems will persist. Wealth generated from thin air is not sustainable, more so when business capital is worth much less than what is stated on paper.
The problem is, most of the 'educated' scholars learned the theories from the countries which initiate these type of financial system. The theories and implementation are adopted from them.
Hence it is very difficult to convince the so-called learned scholers, bankers, policy makers, government, etc as most of them learned the monetary policy and economics from the same school of thoughts. There is probably a single capitalism and money market concept available in books and research papers.
Until an economy is proven to be successful using a completely different model of money market (which is almost impossible given US and western Europe dominance), I see the effort to change the approach and change of mindset impossible indeed.
Perhaps introducing a gold dinar concept shall be a good start, but how many leaders would be interested in this, and much less will do it out of their knowledge or faith.
For us Malaysians (an other developing countries) - this is a 'price' we have to pay for being 'ignorant' and being very slow in discovering knowledge in finance such that we had little choice but to always follow the global financial trends.
Well done again Tun,you hammered the Capitalists Heads including Malaysians Capitalists,whose Loyalty is to make money without Integrity and Patriotism to Malaysia.These Malaysians will always blame the Government if the Policies are not to their advantage.The blames were always on you during your terms as PM.The Capitalists will always find ways to blame others of their failed scams.
Salaam to you and Tun Asmah.
p/s: that is why the Quran did warn humans on 'Duit Halal' & 'Duit Haram'.
They need 2nd Lie (more fake money/bailout money) to cover their 1st (already made) Lie (they way money system moves today). Money is the real face of Satan. even the existing True/Solid money can slowly pluck out the Earth resources, just imagine how the FAKE/Evil Money(huge money created from nothing) can do to PLUNDER the EARTH today? those Evil money is actually killing the Earth now. the more the Fake money created into the world, the faster it will Plunder the Earth.
Salam Sejahtera Untuk Tun dan Keluarga.
secara peribadinya saya tidak seberapa faham sesetengah ayat yang Tun guna kan di entri ini...Boleh tidak jika Tun tulis dalam bahasa melayu dibawah entri ini??
-boleh tak jika saya hendak tanya pendapat Tun, mengenai "bagaimana nak menangani masalah sosial sekarang?terutamanya golongan belia yang masih bersekolah"
kerana sekarang ni terlalu banyak kes2 yang teruk. Dan orang2 diluar sana seperti dah x boleh buat apa dan cuma membiarkan saja ia belaku.Apa pendapat Tun cara yang terbaik untuk memperbaiki masalah sosial ini?
Sorry kalau lari dari tajuk yang Tun poskan...
SALAM AYAHANDA TUN, SAYA HARAP TUN AKAN MENJADI PENASIHAT EKONOMI MALAYSIA!
WAHAI DATO SERI NAJIB, WE NEED TUN DR MAHATHIR!