tag:blogger.com,1999:blog-6833372664905554734.post7104616560988811823..comments2024-03-23T03:41:27.086+08:00Comments on Corporate Governance in Malaysia: 15th Budget Deficit in a rowM.A. Windhttp://www.blogger.com/profile/16833927103193297126noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6833372664905554734.post-30824697344653148412011-10-20T23:36:38.182+08:002011-10-20T23:36:38.182+08:00The only good thing is that Malaysia is borrowing ...The only good thing is that Malaysia is borrowing in RM. In other words, Malaysia can simply print money to pay back the money it owes, so it does not need to go bankrupt. Printing of money will lead to more inflation. The poor anyhow have next to nothing, the rich will have parked a part of their money overseas, but it will be the middle class that will suffer. <br /><br />It is not yet hopeless I think, but things simply have to change, no wealth is created by running deficit after deficit, in the contrary.M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-58153736914510518662011-10-20T22:53:02.766+08:002011-10-20T22:53:02.766+08:00Deficit means one is spending beyond his means. In...Deficit means one is spending beyond his means. In my case, I had to cover by borrowing and charge my properties as securities. If I continue the habit my property will be auctioned or finally be made a bankrupt. If government spend beyond their earning capacity they will have to borrow and borrow and pass on the burden to its citizen through myriads of taxes or withdrawing subsidies with promises that next budget will be better. With debts snowballing year after year for 15 years and the citizens are always at the receiving end who will guarantee that the country will not go bust? Solution? Citizens should act before it's too late. How? .........Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-29253316884443014812011-10-14T17:44:09.833+08:002011-10-14T17:44:09.833+08:00Hmmm... I suspected as much.
You're right. Ma...Hmmm... I suspected as much.<br /><br />You're right. Malaysia, unlike the US can't go on a printing spree without severe devaluation on the ringgit. Spending more than one earns is an unsustainable path.<br /><br />Unfortunately, I doubt things will change at all until it's too late to do anything about it like Greece.Avatarhttps://www.blogger.com/profile/03247832621693405810noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-15386203444047782182011-10-14T16:44:10.986+08:002011-10-14T16:44:10.986+08:00I did see the numbers somewhere, forgotten where, ...I did see the numbers somewhere, forgotten where, there were indeed a few years with a surplus before, but before that also lots of deficits.<br /><br />Interest rates are currently low, so there are not yet real problems, but what will the interest rate be in 3, 5 or 10 years? Nobody really knows, I would not be surprised if it is much higher, in which case it would be much more expensive to roll over the debt, and the problems do start. Just imagine 10% interest rate, just servicing the debt alone would already cost 40 Billion per year.M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-7270671532649981132011-10-14T15:11:24.322+08:002011-10-14T15:11:24.322+08:00Dear M.A. Wind,
How was the budget like in the ye...Dear M.A. Wind,<br /><br />How was the budget like in the years prior to 1998? Were we ever on a balanced or surplus budget?<br /><br />I'm worried we're likely headed the same way as Greece when our natural resources run out.Avatarhttps://www.blogger.com/profile/03247832621693405810noreply@blogger.com