It's been a while since my last posting. Well, happy new year and happy chinese new year. Talking about CNY, there were few people who told me that the economy will kickstart after the festive season. I really don't care whether it's before or after as our business situation in Malaysia has paced to the speed of snail and those who have been relying on government's spoon-feeding are getting desperate.
The victor is always the one with no backing and great entrepreneurial spirit. Yeah right! We are cracking our heads now to ride the storm and trying to make opportunities in this troubled time. Physically and mentally, you have to be prepared for the worst.
But hey, our government has just announced that the Malaysian economy grew at 4% as of December 2009. OK!? Let's see what the tide can bring us this time around.
Monday, March 1, 2010
Wednesday, October 7, 2009
Oil Not Priced in Dollars by 2018?
Oil Not Priced in Dollars by 2018?
Some oil producing countries and big buyers are hatching a plan to move away from pricing oil in dollars—a potential blow to the greenback's prestige
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs.
Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."
This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.
The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.
Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.
China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.
Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.
Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.
The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."
Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.
The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.
"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."
Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq
Thursday, September 24, 2009
Upcoming by election
Who's in and who's out? Tan Sri Isa Samad is back in the picture and this would invite aggravated criticism from within the BN fold and the Opposition. Why should UMNO field a disposed figure when they can always groom a younger, clean and capable person to contest? Don't let anyone tell you that he is experienced and wanted by the Negri folks especially in Bagan Pasir. In the first place, I thought that this place was in Penang. Ooooops! My mistake for not knowing Malaysia enough.
Pemuda UMNO needs rebranding and restructuring. Strategic manouvre ought to be revamped to counter the Pakatan Rakyat's inefficiencies and turmoil. We need to focus on the economy and the strategic policies to withstand the global recession.
Pemuda UMNO needs rebranding and restructuring. Strategic manouvre ought to be revamped to counter the Pakatan Rakyat's inefficiencies and turmoil. We need to focus on the economy and the strategic policies to withstand the global recession.
Monday, September 14, 2009
Last Phase of Ramadhan
Wow, it's been 2 months since my last posting and I kind of missed it. Absence makes the heart grows fonder......ha!ha!ha! If you have been following political blogs, you might noticed that there's a storm brewing within the UMNO top-tiers especially when a Vice President can challenge the President of the party aka the Prime Minister.
This is the beginning of UMNO's revolt against the leader. Why now? As you may see that as a tradition of back-stabbing, head-stepping and the likes, the Prime Minister's camp is expecting to move up the ladder to be the next minister or chief minister. In order to award the prize among his people. the old guards need to be removed. However, the PM did not expect that the Chief Minister retaliated and mentioned that he would join the opposition if he is sacked from the CM post. Let's see the outcome of this.
To be con't..........
Friday, July 3, 2009
Splitville as in the Star
Well, here's another political movie that can be satired almost instantly by casts of Saturday Nite Live. Political journalists blamed the Chief Minister of Kedah and the Indian Penangites are after the Chief Minister of Penang.
Another blow to below the belt? I don't think so. This goes to prove BN stalwarts that the PR is not ready to lead a nation, let alone the states. But I am still positive on Kelantan. Maybe we need our politicians to be more like the Chief Minister of Kelantan. May not be his ideology but his method and wisdom on how to lead a state and country.
Despite the global economic slowdown, mostly to blame is the Wall Street and its Ponzi schemers, our local politicians still have time to squabble and put an evasive action towards their voters. What the heck are they trying to do here?! Businesses are slowing and more people will lose their jobs in due time, provided that the current Malaysian government put some economic action at micro level.
Instead of squabbling between parties and land grab by state government, why can't these politicians plan and implement for a massive agricultural revolution nationwide. At least this will get our economy in a faster spinning wheel.
Global food consumption is on the rise but production is stagnant or decreasing. With the drastic climate change that has severed countries like Australia and Bangladesh, food production will definitely need some fresh new players. Malaysia can fit into this.
Maybe it's just me thinking.....
Another blow to below the belt? I don't think so. This goes to prove BN stalwarts that the PR is not ready to lead a nation, let alone the states. But I am still positive on Kelantan. Maybe we need our politicians to be more like the Chief Minister of Kelantan. May not be his ideology but his method and wisdom on how to lead a state and country.
Despite the global economic slowdown, mostly to blame is the Wall Street and its Ponzi schemers, our local politicians still have time to squabble and put an evasive action towards their voters. What the heck are they trying to do here?! Businesses are slowing and more people will lose their jobs in due time, provided that the current Malaysian government put some economic action at micro level.
Instead of squabbling between parties and land grab by state government, why can't these politicians plan and implement for a massive agricultural revolution nationwide. At least this will get our economy in a faster spinning wheel.
Global food consumption is on the rise but production is stagnant or decreasing. With the drastic climate change that has severed countries like Australia and Bangladesh, food production will definitely need some fresh new players. Malaysia can fit into this.
Maybe it's just me thinking.....
Saturday, May 2, 2009
Gone AWOL
Well, it's been a while since my last blog. What's new in Malaysia? We got a new Prime Minister and a new cabinet. Congrats to the MPs from Sabah & Sarawak as two prominent MP got to be full minister, eventhough less popular ministries. But then, if they are a star, their ministry can be a progressive ones.
Just read another posting in Rocky Bru blog. Our PM is still thinking of the new LCCT in Sepang. It will cost some RM2billion, up from RM1.6billion from the Labu plan. This got me thinking. Do we REALLY need another LCCT? I don't think so. The current LCCT is capable of handling the current flux of passengers. Otherwise, they can always expand on the existing premise. Just look at Changi International Airport. Some people will say SIngapore does not have enough landbank to build a new airport. It is more than that.
Sunday, March 15, 2009
Economy Crisis
Well folks! What we have been waiting for is here in Malaysia. The government just announced a so-called mini-budget or a stimulus package whichever you want to call it. RM60 billion is the number in question.
Now, just where this amount is the government to get it from? And how this package is to be distributed effectively? Thru government expenditure? I might as well say that this amount will go to the coffers of the cronies and buddies of BN.
We the people will get zip from that package. In addition, the government is squeezing the life out of us by taxing and penalties of many forms like late submission of annual return etc. I got to know that companies which filed late for their annual return and audited accounts will be penalised to the maximum. But fortunately, some of the officers in the LHDN are quite sympatethic to the working class and small thriving companies like mine.
One way to overcome or to be resilient during this global crisis is to invest in gold. Yes the basic commodity that has been in existent from the dark ages. Maybe it is time that our currency to be altered to be based on the gold reserve instead of forex trading - demand & supply method.
At least we still have some dignity by owning some gold coins or jewellery during this troubling times. A lot of my business associates are screaming pain.
Well let's think to how to create opportunities from this crisis. If you have, do tell me. But please, I'm not interested in MLM!
Now, just where this amount is the government to get it from? And how this package is to be distributed effectively? Thru government expenditure? I might as well say that this amount will go to the coffers of the cronies and buddies of BN.
We the people will get zip from that package. In addition, the government is squeezing the life out of us by taxing and penalties of many forms like late submission of annual return etc. I got to know that companies which filed late for their annual return and audited accounts will be penalised to the maximum. But fortunately, some of the officers in the LHDN are quite sympatethic to the working class and small thriving companies like mine.
One way to overcome or to be resilient during this global crisis is to invest in gold. Yes the basic commodity that has been in existent from the dark ages. Maybe it is time that our currency to be altered to be based on the gold reserve instead of forex trading - demand & supply method.
At least we still have some dignity by owning some gold coins or jewellery during this troubling times. A lot of my business associates are screaming pain.
Well let's think to how to create opportunities from this crisis. If you have, do tell me. But please, I'm not interested in MLM!
Subscribe to:
Posts (Atom)