YOURSAY | Money, money, money - Economics 101 for Wan Fayhsal

 

YOURSAY | ‘Malaysia, under PN, seems determined to outdo Zimbabwe.’

'Printing money' - Fayhsal says critics don't understand, make false assumptions

Dr Raman: Actually, Youth and Sports Deputy Minister Wan Ahmad Fayhsal Wan Ahmad Kamal does not get it because he reads these things elsewhere, as in the Bersatu Youth Economic Bureau post, and broadcasts it to the public as his brainchild.

You can't blame him because he himself does not understand simple economics despite the hundreds of comments and explanations, so his only defence is that he read it elsewhere.

To be fair to him, let me explain in the terms he could understand.

Let's say he's used to buying a packet of nasi lemak for RM1. One day he gets smart and tears the ringgit note into two (equivalent to doubling money supply), and demands that he gets a packet of nasi lemak for half a ringgit.

The nasi lemak seller takes pity on him, accepts the half ringgit note and sells him a packet of nasi lemak. He then gets even smarter and tears the dollar note to four pieces, hoping to buy four packets of nasi lemak.

Of course, it's well beyond him to understand that the supply of nasi lemak packets should have instantly doubled or quadrupled to avoid hyperinflation or the ringgit losing value.

Come to think of it, he's not the only one who thinks like that. It's the result of perpetually giving handouts without a commensurate increase in productivity or hard work.

This is the kind of younger generation the nation has produced over the years. We should thank Wan Fayhsal for unashamedly manifesting such deeply ingrained malaise of our nation. Probably that's his deeper message here. Work hard, don't expect easy money anymore.

Public Transit Is Better Than Highways: Anyone with a brain can understand that printing more money would basically make the currency worthless since it floods the market with the currency itself, devaluing the currency since there is an abundance.

It’s very simple - one luxury Birkin “Rosmah” handbag costs at a hypothetical RM2,000 ringgit. If one day, someone floods the market with lots of the “Rosmah” handbags, wouldn’t the mass amounts of handbags into the market cause the bags’ value to decrease since there is an abundance of it? It’s the same with money.

It’s a no brainer, but yet Wan Fayhsal still claims otherwise. Good thing he isn’t in the Finance Ministry. Or worse, governor of the central bank.

Newday: Try again, Wan Fayhsal. You are the one that needs some schooling in banking and economics. Modern monetary theory (MMT) is flawed as far as the Malaysian model goes, in that it depends on people being industrious and working hard.

You still have not taken into account our currently cheap currency either. It would not take much to push us over the edge to hyperinflation.

If this money printing had some substance for our Malaysian situation, don’t you think the central bank would have already headed down this path? Bank Negara understands our weaknesses.

You? Work hard, sweat and toil - it does wonders to clear the brain of accumulated mush.

Cogito Ergo Sum: However, you explain it, Wan Fayhsal, you still look foolish. Printing more money does not solve anything except to lower the value of that currency.

But what is frightening is the moral dilemma of not working hard to earn money. That seems to be the theme of the previous regimes for the past 63 years. And the end product is a person who advocates printing money to ease the nation’s economic woes.

I am not sure who to thank for leading us to this point of hopeless no return. There are so many out there.

JusticeNow!: While Zimbabwe is slowly coming out of their hyperinflation, Malaysia, under the Perikatan Nasional (PN) government is determined to outdo them in destroying the country and make it a Zimbabwe of Asia.

Just A Malaysian: First, our politicians spent all the money we obtained from natural resources like tin or oil. Trillions that can be invested are lost. Then our politicians borrow to spend. 1MDB is a good example of how unchecked power can borrow billions and pocket billions.

If we allow printing money in the hands of the kleptocrats, they will print and steal. This final stage is the nail in our coffin. Malaysia’s currency will collapse, and we send our children overseas as cheap labour.

Malaysiansatay: Wan Fayhsal said his critics had "misunderstood" his points and made false assumptions.

YB, when most people talk about economics and/or economic policies, the assumptions are set out so that people don’t “misunderstand” and make false assumptions.

Did you make it clear what you were talking about? Or are you now backtracking on what you said? Or is it a case of “terlepas cakap” (misspoke) and now trying to recover by saying: “Honestly, this is a technical topic and needs further discussion on the origins of money and modern banking.”

Siva1967: This is the standard answer each and every politician has regardless of which side of the aisle they are sitting.

The moment their stupidity is pointed out, their first response is, I was misquoted, or misunderstood or misinterpreted.

But no one will admit that they made a ‘miss take’ (‘miss take’ is deliberately misspelt to stress the mistake).

Eagle: It’s a brilliant theory, Wan Fayhsal. I need some help here. Can you print me RM500,000 to help pay my housing loan?

Before I forget, I owe RM85,000 on my car loan to the finance company, need RM3,000 monthly for household expenses, and my son needs RM350,000 for his tertiary studies overseas. Can please print money to help me pay these expenses?

Worried Sick: I am just wondering, instead of asking Bank Negara to print money and give it directly to us, why doesn't Wan Fayhsal consider letting us photocopy our money and use it (of course, after the necessary legislation is passed)?

Imagine, we can photocopy any amount we want and use it at every opportunity and revive the economy to be the most vibrant among all the countries.  - Mkini