THE CURRENCY WAR 2

THE CURRENCY WAR 2
By
Dr. Mahathir Mohamad
on November 18, 2010 11:30 AM


1. Malaysians, including Malaysian monetary authorities seem quite happy over the appreciation of the Ringgit against the US Dollar. We think that when our currency strengthens it must be because our economy is strong, Therefore we are doing well.

2. But are we doing well? Is it the Ringgit which is appreciating or is it the US Dollar which is devaluing?

3. Actually it is the US Dollar which is devaluing. It is devaluing against most other currencies, especially against China's currency.

4. Why is the dollar devaluing? Could it be due to the currency traders selling dollars? Could it be because the balance of payment is not in US favour?
5. Martin Wolf of the Financial Times, an expert on money have this to say. There is a global currency battle going on. "To put it crudely," he says, "the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition; there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world's surrender; the needed changes in nominal exchange rates and domestic policies around the world.

6. Our reserves are represented by the US Dollar, gold and other currencies which we keep in order to back the value of our Ringgit, The US clearly does not have to hold foreign currencies to back the Dollar. All the US has to is to create (print) money.

7. When we buy US Dollar bonds, we are in fact lending US Dollars to the US. When we redeem the bonds all the US has to do is to print more US Dollars to pay us.

8. How nice it would be if we can pay all our debts by just printing money.

9. There is something fishy going on and the fishy smell is very strong in the US. "Poor" China with 2.5 trillion devalued dollars in its reserve. Wonder how much Bank Negara has?

10. In the face of Governments devaluing their currencies in a currency war, what should Malaysia do? Keep the float or control? When we controlled our currency in 1998 we were called pariahs whose knowledge about finance could be wriiten on the back of a postage stamp. Now it seems many nations are using their magnifying glasses to read what is written on the back of the postage stamps.

Pengalaman Keemasan...Boleh Dikongsi Bersama.

Pagi tadi, sempat saya ke Pejabat Public Gold Taman Perling. Tujuannya ialah untuk ambil stok yang masih berbaki ekoran kehabisan stok suatu ketika dulu kerana sambutan yang di luar dugaan. Sementara di sana sempat berjumpa dengan rakan-rakan baru dalam urusniaga emas ini. Namanya Cikgu Nazrin dari sekolah menengah di Kulai. Hadir terlibat dengan urusniaga ketika itu isteri dan sepupunya yang difahamkan juga bekerja sebagai cikgu.
Sementara menungu proses pengambilan stok, saya dapat pengalaman menjual balik stok (untuk tunai) dengan Public Gold. Selama ni beli dari Public Gold dan jual kat orang je.Seperti biasa, 5% akan diambil dari harga semasa sebagaimana tercatat dalam blog pada colum "we buy". Manakala dealer pula akan diambil 3% sahaja dari harga semasa. Walaupun begitu, hasil dari 'jualan' itu sebenarnya saya telah untung hampir RM900 kerana semasa saya beli dua jongkong 20gram dan sedinar pada bulan 3/4 dulu harga baru RM 25** berbanding harga beli bar 20gram Public Gold sekarang RM 2981 (berubah setiap 20 minit) . Dari pengalaman ini saya harap pembeli emas jongkong dan dinar daripada saya tidak perlu risau lagi akan ke'sah'an  dan ke'boleh'an pencairan emas fizikal mereka pada bila-bila masa. Begitu juga dengan pajak gadai. Sepanjang berurusan Ar-Rahnu Agro Bank, sebanyak 3 jongkong 20g yang saya pajak itu disahkan tulen 20g dan 24k bertepatan dengan 'certificate' yang disertakan sekali  setiap kali pembelian dilakukan. Semua proses penjualan di Public Gold mahupun pajakan di mana-mana Ar-Rahnu akan dijalankan sedikit proses ujian ketulenan. Maklumlah, nilainya bukan seringgit dua.
Kebetulan semasa menunggu proses mendapatkan stok yang agak lambat (macam biasalah), sempat berjumpa Master Dealer Pendita Emas 999, En. Yatiman bin Kamsidin. Sepanjang perbualan dengan beliau dan En. Christ,orang kuat PG Taman Perling, difahamkan mulai tahun depan, untuk menjadi dealer belian mulai RM 100k bukan RM 20k seperti tahun ini dan untuk jadi master dealer mestilah mulai RM 1M ke atas bukan RM 300k seperti tahun ini.

Jadi kepada yang berminat mailah kita pakat simpan penat lelah usaha kita dengan pelaburan emas fizikal sebagai menghargai tulang empat kerat kita bekerja. Harapkan duit kertas, inflasi macam tiada kesudahan, apatah lagi harga minyak naik lagi ditambah dengan suntikan hampir USD 600 billion oleh Amerika Syarikat untuk meransang ekonomi negaranya.Sudah tentu harga barangan perindustrian, barangan perumahan, barangan dapur turut naik. Harga gula pun dah tambah 20 sen lagi..so, apa tunggu lagi?