Inflation and Currency Devaluation
When it comes to a falling dollar, what the government is telling these people is that the problem is inflation. What the government does not tell them is that the problem is really devaluation.
How so? Take Japan for instance:
If the yen increases in value, Japanese exports become too expensive and unemployment increases in Japan.The more dollars Japan buys trying to push the value of the yen down, the more the US will print, trying to make the dollar weaker so that the world will buy US exports. All this does is make life harder for the world’s workers because they work for a currency that the world is trying to make weaker, not stronger.
In the money war, nations are devaluing their money because if they don’t devalue their currency, their exports will grow too expensive and unemployment will rise. But devaluing a currency means people suffer because a weak currency causes inflation, which makes life more expensive.
So, the choice is do you want a job or do you want inflation? What a great choice.
If you cannot comprehend why your money cannot go further in feeding your family (a very similar situation to 5 monkeys, a banana and the dampened dreams), then it may be time to re-look and re-invest in your financial education.
Related Quotes:
If we’ve done something for five years, it must be a great decision. But if we understand that long-term, repeated behaviors might reflect our habitual decision- making in the face of complex financial decisions more than they reflect what is truly best for us, we might first examine our old habits and carefully consider whether they indeed make sense or not. ~ Dan Ariely, Rethinking Money for the New Year
There is a major shift. some people will benefit enormously from the shift, some people will suffer but that’s the way history is always work. You always have some people doing better and some people in decline. ~Jim Roger
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. ~ Henry Ford (an old, but relevant quote today)
"Paper money always returns to its intrinsic value -- zero" ~ Voltaire ... Buffett Warns on Dollar
"When reward is at its pinnacle, risk is near at hand." -John Bogle (founder of Vanguard)
“You cannot solve a problem from the same consciousness that created it. You must learn to see the world anew.” ~Einstein
Knowledge doesn't make you rich. What you do with the knowledge does. btw, you don't need to know everything to do something.
Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. ~ Donald Trump, "Trump: Art of the Deal"
Related Readings:
Steve Forbes Predicts Gold Standard in US in 5 Years
When it comes to exchange rates and monetary policy, people often don’t grasp what is at stake for the economy. If the dollar was as good as gold, other countries would want to buy it. I've talked with a number of smart people about the gold standard, and they simply believe it is impossible. Trying to explain that paper money has always failed throughout history typically does no good. They have it beaten into their brain that the gold standard is "crazy". ~ Steve Forbes (founder of Forbes Magazine)
http://www.wealthwire.com/news/headlines/1128
潔蒂：大馬風險通膨升高
2011-05-13
市場確實存在高通膨風險，而這是全球現象，即高原產品和能源價格開始轉向高食品和燃料價格。現在一切非常不明朗，特別是油價會否繼續居高不下，並再上攀。
http://www.sinchew-i.com/node/214803?tid=27
It is still not enough
What have made the country fall into the middle-income trap? The recent Singapore general election is a very good lesson to be learned. The Singapore economy has been expanded by 14.7% and it has increased by 5.8% in the first quarter of 2011. However, 40% of voters still voted for the opposition because of price hikes and the increase of living costs.
http://www.mysinchew.com/node/57400
Be clear on fiscal policies
An increase in prices of daily items further burdens the man in the street who cannot comprehend why his ringgit cannot go further in feeding his family. As long as people can still go hungry in this country, “development” – which is often used to trim budgets and benefit certain individuals and corporations – will continue to be a dirty word.
For all one knows, we could end up having to fork out more than annual taxes with GST. This is where the government must come clean and tell us exactly how its fiscal policies are going to elevate our status to a developed nation, and more importantly assure the most vulnerable of our society that they will be able to put four square meals on the table.
A trained and well-remunerated workforce will result in a better delivery system, especially when it comes to the men and women entrusted with protecting our streets and borders.
http://sun2surf.com/article.cfm?id=60716
