â€˜In Malaysia we are not in great shape as well irrespective what our spin-masters, friendly blogger (mercenaries) and paid PR consultants tell us!
It is worst when our leaders, politicians, different shades and strands of NGOs and chest battering fist thumping political predators continue to behave like secondary school delinquents instead of behaving like statesmen!
The next few months will tell us who are the real leaders, who are political pretenders and other bunch of idiots masquerading as economist and financial planners!â€™ â€“ Dr Jacob George
CONSUMERIST: US INTO RECESSION MALAYSIAN POLITICIANS FIGHTING LIKE SCHOOL CHILDREN!
In the US powerful evidence were introduced to show that the current stock market is tracking very closely to the stock market in the 1930â€™s.
It was stated that the reasons could be two critical economic policies that might help trigger another Great Recession in 2011.
Even though the US National Bureau of Economic ResearchÂ announced a month ago that the recent recession was over not everyone is convinced as two critical economic policiesÂ that might propel the US into deeper waters are higher taxes and higher barriers to free trade!
And the recent spat and childish pranks by politicians in the US addressing the economy and debt did not help!
And according to The Wall Street Journal article, if the Bush tax cuts are allowed to expire in January, the average after-tax income of working Americans will be cut 3.3%.
Using a direct calculation, a 3.3% after-tax income reduction means thatÂ GDP in 2011 would drop about 2.3%.Â Â With such a drop in GDP, it is not a stretch to conclude another recession would begin in 2011.Â Added to that fact, it is believe that the US current recovery is very weak.Â So, another recession on the heels of the previous Great Recession might be particularly hard on Americans and rest of the world include 1Malaysia!
IfÂ thatâ€™s notÂ bad enoughÂ on the American economy, consider all theÂ talk about protectionism even though many consider and believe that protectionism is a recipe for economic decline and stagnation.
Now,Â I am advised by diplomat friends and consumerist in the US that some people in Washington want to pass a new law that would permit the Department of Commerce to regulate trade among nations based on currency interventions by foreign countries.
I am told that for example, if the Department of CommerceÂ does not believe aÂ foreign currency intervention by a foreign country is â€œfair,â€ it can decide to increase the costs of that nationâ€™s goods.Â Putting bureaucrats (even very well-meaning bureaucrats)Â in charge of determining whatâ€™s fair (or not fair) is not how a free market operates.Â It appears to be a backdoor tariff program that will most likely lead to reduced economic growth for America and other nations, as well asÂ potential ill will with other nations and you do not need to be a rocket scientist to know this!
And so the speculation so far is that the US is heading into another Great Recession in 2011/12 if they continue to maintain their current fiscal and monetary policies; if they allow the Bush tax cuts to expire and hurt economic growth; and ifÂ Â they create new barriers to free trade that also cut economic growth and increase prices of goods toÂ American consumers!
In Malaysia we are not in great shape as well irrespective what our spin-masters, friendly blogger (mercenaries) and paid PR consultants tell us!
Irrespective of the â€˜song and danceâ€™ routines and the â€˜feel goodâ€™ spins over the air waves!
It is worst when our leaders, politicians, different shades and strands of NGOs and chest battering fist thumping political predators/racists continue to behave like secondary school delinquents instead of behaving like statesman!
The next few months will tell us who are the real leaders all over the world – who are political pretenders and other bunch of idiots masquerading as economist, financial planners and political oracles!
Expect the crime index to rise – more of our women folk robbed by scums on motorbikes in daylight, in the presence of onlookers, with CCTV and what ever toys that are around!
Many of these scums are still at large and planning their next robbery against soft targets like our mothers, wives, daughters, grandmothers and so forth!
Why are they still at large is a RM100 million story perhaps?
On the consumer index and struggles of the common man and women expect runaway price for goods and services!
Expect challenges at the marketplace at each and every corner!
As for Consumers, the time is to be thrifty and to stretch your ringgit, save, do not waste precious ringgit as turbulently difficult days are coming ahead!