As I have said before the Central Banks and the US Federal Reserve can really screw things up when they play with interest rates. Sean Foo says this is what has happened. They hiked up interest rates and went into a kamikaze dive. Now the US faces risk of a recession. The US Federal Reserve better cut their interest rates asap. Otherwise the kamikaze plane is not going to come out of this dive. They will crash. I hope our local dunggus who raised our interest rates will take the appropriate action.
Folks, just use common sense. Have we suddenly started exporting an extra million tonnes of palm oil? The answer is no. Have our manufactured exports suddenly jumped through the roof? The answer is no. There is no change in our fundamentals. We are still bungling along. So the Ringgit has not strengthened of its own accord. The US Federal Reserve screwed their policies.
The American bungle over their interest rates is damaging the US Dollar. The US Dollar will stabilise again. It usually does. That is why Janet Yellen is still confident. Plus there will be a new president in November this year.
Just cut the interest rates. Otherwise we will also go into a kamikaze dive.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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