Ringgit Is Toast – Here Are Proofs Malaysia Is The First Asian Economy To Hit Recession

Disclaimer : I did not write this. Someone emailed this to me. It is very interesting and informative of course. I have corrected punctuation, spelling and some grammatical errors. I have removed one reference to "devil".

At a ripe age of 89, the lucky Dr Mahathir is now having fun seeing the local currency closing in to the RM3.80 to USD1 exchange rate, which he pegged about 16-years ago. And when that happens, he has every reason to celebrate with a lion dance - Jho Low holding the lion’s head and Arul Kanda Kandasamy shaking the lion’s butt, while Najib beating the drum.

(My comments : The Ringgit is dropping like a stone but for a certainty Dr Mahathir is not having fun watching this happen. At the most recent meeting with Dr Mahathir we discussed this too. We are all worried to the bone.)

That would be one heck of a celebration, with tons of firecrackers thrown in. It would be a marvellous sight, representing the real harmonious multiracial society in Malaysia. Who would have thought that the country’s biggest scandal, 1MDB’s RM42 billion debt, has actors made up of a Chinese, an Indian and a Malay, a nice mixture of villains?

Sure, the strengthening of US dollar was across the globe, so the Ringgit should not be singled out. But guess what – all the major Asian currencies – Singapore Dollar, Thai Bhat, Philippine Peso and even Rupiah – appreciated against the Malaysian Ringgit in the same 1-year period. In short, the Ringgit has turned into toilet paper even within the Asean region itself.

(My comments : We are now the sickest economy in ASEAN. The Phillipines is barreling ahead with 6% - 7% growth. Indonesia is getting better organised.)  

Here’s a joke from a Malaysian tourist. This is the safest season for Malaysians to travel to China. No thieves would pick-pocket Malaysian tourists simply because the ringgit is guaranteed to drop in value overnight (*grin*). 

Amusingly, even the Chinese Renminbi has appreciated as much as 18% against the Ringgit over the last 12-months.

• Since central bank governor Zeti Aziz’s job is at the mercy of the prime minister, she has to do everything to parrot her boss. 
• She did practically nothing about 1MDB scandal. 
• She played down the inflation effect of GST. 
• She mentioned the weak ringgit was a short-term problem when it was RM3.45 
• and still says the same thing when it hit RM3.74 today.

The only thing Zeti can do is this – by hook or by crook, keep the ringgit below RM3.80 to the US dollar. That’s the psychology level. Once the RM3.80 level is broken, all hell will break loose. 

(My comments : That will be the craziest thing to do. First of all it will use up billions of Bank Negara's foreign currency reserves. Secondly it will NOT work. Then the Ringgit will crash some more. This time around the problem with the Ringgit is not George Soros. It is structural weaknesses in our economy. Our falling productivity, the increasing religious extremism condoned by the gomen, the religious creep into all sectors of the economy. Forexample factories are closing and moving to Thailand, Vietnam etc because Malay & Muslim factory workers are demanding breaks for five times a day prayers.  5 x 20 minutes = 100 minutes lost production per Muslim worker job slot per day. That is 600 minutes or 10 hours lost production time per Muslim occupied job slot per week. The Ringgit will continue to fall.)

Now, where are those so-called genius economists who claimed that GST is good for the country? Where are they now when the country needs them the most?
The Najib administration can also do its part to entertain the public about the toasted Ringgit.   Get his half-past-six minister to tell all and sundry how fabulous it is to have a weak Ringgit. 

The country can export more and attract foreign investments. Weak Ringgit also encourages tourists. That’s why Uganda, Madagascar, Siera Leone, Zimbabwe are such a paradise.

(My comments :  I dont know why these people are so stupid? If a weaker Ringgit is so good, then why not let the Ringgit fall to the same level as the Indonesian Rupiah? Isnt that better?  Then to buy  just one 'tudung bawal' in  Chow Kit,  you can carry a suitcase of cash money.) 

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