Eerie similarities with Japanese scheme 20 years ago suggests a future of white elephants, wasted money and corruption on a scale never seen before
By Tom Holland
6 Aug 2016
South China Morning Post
Facing a deep slowdown after years of investment-fuelled growth that culminated in a huge property and stock market bubble, the leaders of Asia’s largest economy come up with a cunning plan. By launching an initiative to fund and construct infrastructure projects across Asia, they will kill four birds with one stone.
They will generate enough demand abroad to keep their excess steel mills, cement plants and construction companies in business, so preserving jobs at home. They will tie neighbouring countries more closely into their own economic orbit, so enhancing both their hard and soft power around the region. They will further their long term plan to promote their own currency as an international alternative to the US dollar. And to finance it all, they will set up a new multi-lateral infrastructure bank, which will undermine the influence of the existing Washington-based institutions, with all their tedious insistence on transparency and best practice, by making more “culturally sensitive” soft loans. [i.e. bribes] The result will be the regional hegemony they regard as their right as Asia’s leading economic and political power.
Tuesday, May 30, 2017
How the free-lunch fallacy is hurting our government, health care and retirement
This is no free lunch. And our belief that there is holds the country back.
By Allan Sloan
Columnist, Washington Post
May 20 2017
One of the biggest problems our country has is the growing idea that there really is such a thing as a free lunch: that we can get magic money to pay for things we don’t want to pay for out of our own pockets.
I think the free-lunch fallacy helps explain why three of our nation’s biggest problems seem so intractable: having a rational health-care system; producing a reasonable federal budget; and dealing with the “retirement crisis.”
Let me explain how I came up with this linkage.
As a born contrarian — okay, as a stubborn old guy — I tend to do the opposite of what’s popular. So instead of rushing to opine about the newest excesses enveloping Our Nation’s Capital, I decided recently to spend quantity time reading two books that interested me, taking some deep breaths and doing some thinking.
Both of the books — “An American Sickness” by Elisabeth Rosenthal (Penguin Press, 2017), and “Dead Men Ruling” by Gene Steuerle (Century Foundation Press, 2014) — offer amazingly helpful history and insight into how our health care and federal budget systems, respectively, have turned into such messes.
In addition, I got a bonus. Because I read both books at the same time, I saw the “free lunch” link between them. That, in turn, led me to get some stock and bond numbers that help explain why we as a nation haven’t set aside enough money to pay for baby boomers’ retirement.
By Allan Sloan
Columnist, Washington Post
May 20 2017
One of the biggest problems our country has is the growing idea that there really is such a thing as a free lunch: that we can get magic money to pay for things we don’t want to pay for out of our own pockets.
I think the free-lunch fallacy helps explain why three of our nation’s biggest problems seem so intractable: having a rational health-care system; producing a reasonable federal budget; and dealing with the “retirement crisis.”
Let me explain how I came up with this linkage.
As a born contrarian — okay, as a stubborn old guy — I tend to do the opposite of what’s popular. So instead of rushing to opine about the newest excesses enveloping Our Nation’s Capital, I decided recently to spend quantity time reading two books that interested me, taking some deep breaths and doing some thinking.
Both of the books — “An American Sickness” by Elisabeth Rosenthal (Penguin Press, 2017), and “Dead Men Ruling” by Gene Steuerle (Century Foundation Press, 2014) — offer amazingly helpful history and insight into how our health care and federal budget systems, respectively, have turned into such messes.
In addition, I got a bonus. Because I read both books at the same time, I saw the “free lunch” link between them. That, in turn, led me to get some stock and bond numbers that help explain why we as a nation haven’t set aside enough money to pay for baby boomers’ retirement.
China’s ratings downgrade, explained
Keith Bradsher
May 26, 2017
BEIJING — Moody’s Investors Service downgraded its rating of China’s sovereign debt one notch on Wednesday (May 24), citing concerns over growing debt in the country, which has the world’s second-largest economy. In recent years, as China’s stunning economic performance of past decades has become difficult to sustain, the country has used debt to fuel growth.
Now, Moody’s says that China will have to borrow more and more to maintain the levels of economic growth the government wants. The concerns Moody’s raises will sound familiar to those who follow the Chinese economy closely. Expressed by one of the world’s top credit ratings agencies, however, the misgivings will be harder to ignore.
EVERY COUNTRY HAS DEBT. WHY IS IT A PROBLEM IN CHINA?
In short: China has a lot, and has accumulated it very fast.
May 26, 2017
BEIJING — Moody’s Investors Service downgraded its rating of China’s sovereign debt one notch on Wednesday (May 24), citing concerns over growing debt in the country, which has the world’s second-largest economy. In recent years, as China’s stunning economic performance of past decades has become difficult to sustain, the country has used debt to fuel growth.
Now, Moody’s says that China will have to borrow more and more to maintain the levels of economic growth the government wants. The concerns Moody’s raises will sound familiar to those who follow the Chinese economy closely. Expressed by one of the world’s top credit ratings agencies, however, the misgivings will be harder to ignore.
EVERY COUNTRY HAS DEBT. WHY IS IT A PROBLEM IN CHINA?
In short: China has a lot, and has accumulated it very fast.
Friday, May 19, 2017
Hot dog issue has made Malaysia famous for the wrong reason: The Star columnist
May 18, 2017
Wong Chun Wai
PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Looks like the monsoon season is starting soon. That is when it starts to rain cats and dogs. No, these animals will not fall from the skies, but it is best that Malaysians are well-prepared for the floods.
The authorities, we are very sure, will not let anyone be confused. Personnel from the Civil Defence Force and Fire Department are already on standby to face the wettest month of the year.
According to one report, tourists will almost certainly experience thunderstorms and floods - they have been predicted to take place on 83 per cent of the 25 days with rainfall. Light rain may also occur but is rare, being observed on only 11 per cent of those days.
This means our rescue teams can be expected to work really hard and as one will say - work like a dog.
Wong Chun Wai
PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Looks like the monsoon season is starting soon. That is when it starts to rain cats and dogs. No, these animals will not fall from the skies, but it is best that Malaysians are well-prepared for the floods.
The authorities, we are very sure, will not let anyone be confused. Personnel from the Civil Defence Force and Fire Department are already on standby to face the wettest month of the year.
According to one report, tourists will almost certainly experience thunderstorms and floods - they have been predicted to take place on 83 per cent of the 25 days with rainfall. Light rain may also occur but is rare, being observed on only 11 per cent of those days.
This means our rescue teams can be expected to work really hard and as one will say - work like a dog.
Understanding the UK’s strange Singapore envy
Justin Fox
April 12, 2017
A pro-Brexit argument that always makes me giggle a little is that leaving the European Union will allow the United Kingdom to become the new Singapore. That’s right — the land of hope and glory, home to the world’s fifth-largest economy, wants to emulate its steamy little former colony, population 5.4 million.
When you look at the per-capita income data, though, you can kind of understand it. Once-poor Singapore passed the UK in 2006, and the income gap has grown to almost US$3,000 (S$4,214) a year since then.
April 12, 2017
A pro-Brexit argument that always makes me giggle a little is that leaving the European Union will allow the United Kingdom to become the new Singapore. That’s right — the land of hope and glory, home to the world’s fifth-largest economy, wants to emulate its steamy little former colony, population 5.4 million.
When you look at the per-capita income data, though, you can kind of understand it. Once-poor Singapore passed the UK in 2006, and the income gap has grown to almost US$3,000 (S$4,214) a year since then.
How to figure out if an old HDB flat is worth its asking price
Chua Mui Hoong
Those looking to buy old resale Housing Board (HDB) flats would have cause for hesitation following comments by National Development Minister Lawrence Wong last month.
Perturbed by reports that Singaporeans were forking out big sums to buy old HDB flats, he said buyers should not assume that all old HDB flats will be eligible for the Selective En bloc Redevelopment Scheme (Sers).
Under this hugely popular programme, the Government compensates HDB flat owners for their old flats and acquires the blocks for redevelopment. Home owners can buy flats in the new developments.
Some savvy owner-investors are known to peruse maps of HDB towns to identify potential Sers hot spots and buy into them in anticipation of Sers. Precincts near MRT stations, built to low-density (think low-rise blocks with large surface carparks) that are 40 years and above, are possible candidates.
Opinion Editor
APR 8, 2017
APR 8, 2017
Those looking to buy old resale Housing Board (HDB) flats would have cause for hesitation following comments by National Development Minister Lawrence Wong last month.
Perturbed by reports that Singaporeans were forking out big sums to buy old HDB flats, he said buyers should not assume that all old HDB flats will be eligible for the Selective En bloc Redevelopment Scheme (Sers).
Under this hugely popular programme, the Government compensates HDB flat owners for their old flats and acquires the blocks for redevelopment. Home owners can buy flats in the new developments.
Some savvy owner-investors are known to peruse maps of HDB towns to identify potential Sers hot spots and buy into them in anticipation of Sers. Precincts near MRT stations, built to low-density (think low-rise blocks with large surface carparks) that are 40 years and above, are possible candidates.
Chinese deals in Malaysia under scrutiny
May 7, 2017
China's growing involvement in Malaysia has been praised and panned in recent years. The Sunday Times looks at how its widening presence is drawing increasing attention in the first of a two-part series. Tomorrow, why the promise of new ports in Malaysia with help from China may not materialise.
Shannon Teoh Malaysia Bureau Chief and
Trinna Leong Malaysia Correspondent In Kuala Lumpur
The slew of projects and investments by China's state-owned enterprises and their soft loans have been a major talking point in Malaysia since 2015, when they helped prop up state fund 1Malaysia Development Berhad (1MDB), which was burdened by huge debts.
China's deep financial involvement in Malaysia came under fresh scrutiny last week with the collapse of the Bandar Malaysia township deal.
China's growing involvement in Malaysia has been praised and panned in recent years. The Sunday Times looks at how its widening presence is drawing increasing attention in the first of a two-part series. Tomorrow, why the promise of new ports in Malaysia with help from China may not materialise.
Shannon Teoh Malaysia Bureau Chief and
Trinna Leong Malaysia Correspondent In Kuala Lumpur
The slew of projects and investments by China's state-owned enterprises and their soft loans have been a major talking point in Malaysia since 2015, when they helped prop up state fund 1Malaysia Development Berhad (1MDB), which was burdened by huge debts.
China's deep financial involvement in Malaysia came under fresh scrutiny last week with the collapse of the Bandar Malaysia township deal.
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