Different political systems

In a communist country, the communist party is the highest authority. The country may have a legislature but it is ultimately under the control of the communist party.

In a monarchy, the sovereign (king or queen) it the highest authority.

In a democracy, the legislature is the highest authority (but sometimes they are not able to control the President who is elected separately).

Within the communist party, the leaders are elected democratically by the party members.

In a democratic country, the legislature is elected by majority vote of the people. However, in many countries, the democratic process is flawed and is controlled by big money or corrupt practice.

Each system has its strengths, weaknesses and flaws.

There are also hybrid systems. For example, the system in China is socialism (i.e. communism) with market characteristics. They have socialist principles at national level and allow the free market at the enterprise level. However, their political control is under the communist party.

Many people have the impression that the communist system is bad, but their view is colored by the western media over the past decades. They do not realize that the media is also controlled by big money and has not been truthful.

We should not just blindly believe that democracy is good and communism (or socialism) is bad.

The best test is – which system actually produces the leaders that work in in the interest of the country and the people and make the most economic and social progress.

 

Tan Kin Lian

 

 

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57 Responses to “Different political systems”

  • Flabbergasted:

    without the communist party and Mao, China would have been torn into hundreds of parts, she would have been owned by western corrupts.

    The Chinese people would have been massacred and decimated like the red-indians, the Australian Aborigines, the Maoris and many more races around the world.

    The problem is not with communism or democracy or any form of government, the problem lies in corruption.

    Corrupt leaders sell out their people and let, in fact help foreigners take over and bully their own kind.

    Corruption breeds “走狗“ at all levels.

    The manchus did precisely that that’s why China was divided into zones, there’s even places within Chinese soil that have signs that says “Dogs and Chinese are prohibited”.

    We are going that direction, how many instances that foreigners get away with “murder” while citizens are sued until their pants drop?

    I repeat , THE PROBLEM IS NOT WITH COMMUNISM OR ANY FORM OF GOVERNMENT, THE PROBLEM LIES IN CORRUPTION.

    Fellow Singaporeans, you decide and vote wisely.

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  • oxygen:

    THIS ARTICLE IS PRETTY SHALLOW – its conceptualisation of communism, sovereign and democracy is too broad and simplistic, unfortunately.

    In Down Under, Canada, NZ, USA, UK even in India, the judiciary CORRECTS the failings of the legislature in judgment decisions but in corrupt democracy – better don’t mention here of where this regularly happening – the judiciary merely toe the line of corrupt legislature and its bent laws. MONEY TALKS.

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  • patriot of TUMASIK:

    Tan ahhhhh!!! are you teaching the sheeple and 30% people about democracy or you writing for writing sake??? there is a CI CONtributing the same leh!!! and ones is enough lah!!!

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  • UniQ:

    R u very sure that the commie model that you reflect above, allows free market enterprises n not an entirely authoritarian system ?

    LoLoL!!

    I guess my question poses an answer.

    Who r u trying to kid Mr Tan ?

    Told u so many times, do your home work n dont be lazy. Little info here n there, and then do a cut n paste job without proper analogy carried out is an utter insult to your countrymen.

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  • vincent tan:

    wow!,wow !, wow!!
    tre editor allowed this self confessed communist to
    push his agenda.
    tkl is selling hard communism several times this 2 short
    weeks.
    Are Tremeritus commie advocates too ?

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  • YouAreSin:

    Try not to confuse yourself and others with academic discourse on political issues meant to mislead. All system has fallen under the power of the mighty dollar and created a market place for bloody meat and the souls of men.

    Your leaders lied about international trade which will prevent war. Well, the truth is out for all to see now.

    And there are many lies which come out of Singapore to get to where they are today – a Babel-like city with crappy people and crappy leaders and their hypocritical corrupt stinking mouths and breath!

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  • Talking Rooster:

    “In a communist country, the communist party is the highest authority. The country may have a legislature but it is ultimately under the control of the communist party.”

    By your definition, Sillypore is a communist country?? Just try replacing communist with PAP in your statement above.

    “…. However, in many countries, the democratic process is flawed and is controlled by big money or corrupt practice.”

    Which countries are you referring to? This is such a sweeping statement.
    We paid big money to our cabinet. So you implied our democratic process is flawed?

    “We should not just blindly believe that democracy is good and communism (or socialism) is bad.”
    You have facts to back up your statement or observation?
    Sillypore professed to be a democratic society, So you want Sillypore to be a communist state?

    Who is the real blind here?

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  • Simpleton Talk:

    You analysis is good only for a RC forum, where minds are easily bought with a pack of chicken rice.

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  • I think hoh:

    “In a communist country, the communist party is the highest authority. The country may have a legislature but it is ultimately under the control of the communist party.”

    Do people know that the legislature in Singapore is ultimately under the control of the PAP?

    That MP simply raises his whip and 90% of the legislature shall behave according to the party?

    So, is Singapore a communist country?

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  • Dr Tan Tai Wei:

    Mr Tan’s last sentence seems to have missed what in the history of liberal political education is widely concluded to be most crucial tests of a good political system. It’s not just whether we have good leaders but whether should we haven’t, or should some good ones turn bad, say became mad, whether the system has built into it peaceful means of removal and change. Also, whether the system has built within it guarantees such as obligating leaders to need to be people orientated – say where even ‘corrupt’ leaders who are prone to lying had still to reach out to the people with the lies in order to get elected at the next elections.

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  • Dr. Chan:

    @TKL
    Every system has strengths and weaknesses – Yes.
    As long as there are mechanisms for checks and balance, that allow people to voice their opinions freely, together with total transparency and accountability by the government. Be it communism, socialism, capitalism or demoncratic. Most importantly, fair, just and equal under same set of rule of law with fair trial by independent judiciary. No trumping up of charges. Sue opposition but not sue ‘own brother’ nonsense.

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  • TruBlu:

    Whatever $ystem,GRC is the most disgraceful n cowardly system of election.

    Remove GRC first.
    We can decide HOW TO GOVERN later.
    No need names that sound nice,we just need POLICY ACTIONS THAT SERVE THE COMMON GOOD.
    Even in CHINA where BILLIONAIRES ARE BEING CREATED in huge numbers,many still experience poverty n hunger.

    What we need are LEADERS who SERVE THE PEOPLE N NOT JUST HUNGER FOR MORE $$$?

    TKL,you seem to be in limbo?

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  • TruBlu:

    Btw,DT says he and KIM JONG-UN(KJU) are bros.
    He often says KJU sends him love letters.

    Well,they are both alike,indeed,like bros?
    KJU ASSASSINATES HIS FORMER AIDES WHOM HE FAVOURED BEFORE.
    TRUMP ASSASSINATES THE CHARACRERS OF THOSE AIDES HE ONCE THOUGHT HIGHLY BUT LOST FAVOUR?

    Both are nuts.

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  • Haigen-Diaz:

    The problem with Tan kin Lian is that his analyses are all over simplified, in some cases bordering on the naive.

    East Asian nations have spawn a new institutional arrangement(structure) at the governmental level: rule by the neo-mandarinate (meritocratic) technocratic bureaucracy – especially for industrial policy. This first occurred in Japan and spread to Taiwan, Korea, Singapore, then to China. It’s technocratic, and so, ideologically it is operates on pragmatism, i.e. non-ideological: they do whatever works and don’t worry about ideology. It is democratic in nature because the bureaucrats are selected by blind examination system – the best rise to the top, from every quarter and class and corner of the nation, and so their only interest is the national interest, not some subset special interest.

    While your Socialist book may be wonderful in your view. When it has been implemented in real life it always fails. It has been proven time after time that whenever you try to have equality in a world where there are more intelligent than YOU, more motivated than others that strive for success an equal world never works. The socialist motto is if it has just been implemented a different way it would do better. It never will and never has, socialism has been and always will be a failure.

    Democracy in the U.S, has been trivialized for several reasons. First, there are so many forms of populist movements that an individuals vote has really became irrelevant. Second, the candidates are not chosen by the electorate but by big moneyed interests.

    As the slack comes out of the economy, the big firms are going to have unparalleled power to raise prices while concentrating the monopoly profits in the very top strata of the wealth distribution. At which point, the Congress will act very surprised and then blame the Fed.

    You have it all topsy-turvey and backwards. The objective is to try to take the power away from the plutocrats and put it back in the hands of the government elected by and supposedly representative of THE PEOPLE. Of late there has been little success. Our government has been sold and bought by those plutocrats and THE PEOPLE have been left bereft of their rightful legacy of power – a horror story of governmental ownership/monopoly up and down the supply chain, spiraling costs and limited access – a known fact that laissez-faire capitalism is caustic and self-defeating.

    No doubt political systems are critical in promoting both economic and human development. Also vital is the working of the institutions. Whether that institution is democratic or autocratic?

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  • Rabble-rouser:

    Tan Kin Kian’s political thoughts are so outmoded! His thinking so common with S’poreans are the typical “thinking within the box” type of mentality. To transcend such mental limitations, one need to think “outside of the box” & adopted a far reaching outlook of life! One needs to discard old beliefs over time by being observant with the happenings to form your own conclusions, never reading from newspapers & seeing the Mainstream news then regurgitating. And you can’t adopt a Static View of Life itself!
    There are NO perfect political system in the world because everything is relative. Each & every political mechanism are flawed because every politician you vote for (under democracy) or any authoritarian regime you lived under are all motivated by their own self interest & driven by their thirst for more power & authority to subjugate the masses. Every political system are dynamic in nature thus one can’t assume that what holds in the present will continue indefinitely into the future!
    Truth is that all politicians are ultimately:
    * Crooks in nature;
    * Sycophants;
    * possessed histrionic personality disorder;
    * possessed machiavellian personality;
    * Manipulative & devious; &
    * Power hungry & egotistical.
    Once you are skeptical & cynical enough to realise that, you’re on your way to a better live free from political conniving & being constantly lied to. The only way is to “hedge” your presence between 2 economies (dual citizenship or citizen/PR) or among several countries – accepting the best aspects of living while rejecting the worst political restrictions.
    Of course, you’ll need to be able to achieve financial independence. How to get there depends on your own capability & streets smart! No one will help you to get rich! With financial independence, you’ll have more options!
    I see S’poreans being so obsessed with real estate holdings the last decade. They are barking up the wrong tree – Property Investment is an unproductive pursuit especially towards the end of the cycle. In truth, property isn’t an avenue to financial freedom unless you’re lucky enough to get an EnBloc sale. The 50 to 60 year S’pore Property Supercycle is nearly over! Brick ‘N Mortar businesses are under “Creative Destruction” to Internet businesses with very few survivors. S’pore’s high cost of living structure is totally unsustainable – failure to adopt renewable energies & dependency on energy intensive water purification (instead of rainwater harvesting) are just 2 reasons why S’pore can’t bring the high living cost down. A 3rd element is the intense population growth on a limited geographical footprint. We’re onto the Age of Extinction!

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  • Rabble-rouser:

    Haigen-Diaz said: “To quote Brecht, “Would it not be easier in that case for the government to dissolve the people, and elect another?”

    empty calorie this one expanded:
    “Die Lösung” (The Solution) is a famous German poem by Bertolt Brecht about the uprising of 1953 in East Germany. Written in mid-1953, it is critical of the government …

    The Solution
    After the uprising of the 17th of June
    The Secretary of the Writers’ Union
    Had leaflets distributed in the Stalinallee
    Stating that the people
    Had forfeited the confidence of the government
    And could win it back only
    By redoubled efforts. <a<Would it not be easier
    In that case for the government
    To dissolve the people
    And elect another?

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  • Chiak Liow Bee!:

    Mr Tan : A lesson in Political Systems will not help me find a job to feed my family. I am interested in bread and butter issues not your lectures. If you want to give a lesson on politics or how a country should be run, please go and tell it to the PAP. Don’t use this platform to sell your ideas or whatever they are. Go and talk to them directly. So please don’t “chiak liow bee”. Hope you understand.

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  • Rabble-rouser:

    Cont’d..
    Bertolt Brecht “Would it not be easier in that case for the government to dissolve the people, and elect another?”
    Isn’t this the case with the S’pore govt? Slowly pushing out those less compliant/obedient (read: well-educated & foreign schooled) out of the country while “the PAP likes them uneducated, gullible, naive and easily scared into voting against their own best interest” [credited to Haigen-Diaz]. Added to the equation, the conversion of foreigners into newly minted citizens to boost the odds of election victory!
    If you can’t understand this, you might as well be dead!

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  • mike:

    Mr TKL,

    That’s it! i am done with you. You deserved being screwed by those despised u.

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  • Talk Kok LP:

    But who outside the party selected the communist party to lead the country?

    Within the communist party, the leaders are elected democratically by the party members.

    You also forgot one important word – “keep”

    “The best test is – which system actually keep produces the leaders that work in in the interest of the country and the people and make the most economic and social progress.”

    In democratic system, when one leader failed, another can take over easily, systematically and expectedly.

    Communistic leader are presupposed they will never ever fail? Such that they are empowered indefinitely to be the leader ?

    How’s that not like an emperor ?

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  • tan kin lian, what a pea brain:

    don’t be so ffffing stupid, tan kin lian.

    there is no such thing as pure communism or pure whatever. everything is a diluted mixture of expedient contrivance for political advantage.

    if you are able to topple clown pap and form New Government and you choose to call your system tan kin lian system, we support you and shall agree that tan kin lian system is better than communism is better than clown pap BS system.

    remember communism in clown pap BS system is a coined word to put into jail without trial those who threaten the clown pap BS system.

    don’t be so ffffing stupid, tan kin lian and get hung up on such non issues.

    why not focus on OPPO alliance to topple clown pap so that New Government can form with new agc with new police chief with new bank negara chief with new cpib chief to properly pursue clown pap S$m gang for their S$m wrongs?

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  • Haigen-Diaz:

    Rabble-rouser:
    Cont’d..
    Bertolt Brecht “Would it not be easier in that case for the government to dissolve the people, and elect another?”
    Isn’t this the case with the S’pore govt? Slowly pushing out those less compliant/obedient …..Added to the equation, the conversion of foreigners into newly minted citizens to boost the odds of election victory!

    @ Rabble-rouser

    Bro,
    The story was deliberately written in an open-ended way to start a conversation. You filled in the blanks. Sheer genius!. A dystopian nightmare few recognized.

    I understand the disgusts @Tan Kin Lian & @empty calorie, erudite toadying. But TRE and its readers should understand that they didn’t write this for our audience, but to impress the ‘rulers’ with their fealty.

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  • Nobrainnoblame:

    Don’t blame him. He has never live in a democratic country. He doesn’t knows the pride and joy of being equal and free.

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  • Rabble-rouser:

    @ Chiak Liow Bee!:
    Precisely what I had written about “glorifying” political narratives which don’t fill the stomach – only economic management does. On this respect, S’pore is failing badly under the present govt. From democracy to communism, it doesn’t matter so long as the mechanism can allow people to ” bring home the bacon” so to speak! Politicians who enriched themselves at the expense of the masses are an affront to whatever political mechanism. They are supposed to serve, not enrich themselves! People who don’t understand this fact deserve their own fate! Like KJ once said, “You get the govt you deserved”!

    Chiak Liow Bee!:
    Mr Tan : A lesson in Political Systems will not help me find a job to feed my family. I am interested in bread and butter issues not your lectures. If you want to give a lesson on politics or how a country should be run, please go and tell it to the PAP. Don’t use this platform to sell your ideas or whatever they are. Go and talk to them directly. So please don’t “chiak liow bee”. Hope you understand.

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  • Half Truth Half Lies:

    You forgot the Indians in the Indian subcontinent, today are they weak? decimated?

    You forgot the Malays in Malaysia, will their religion, custom, language be what it is today under communism?

    The manchus were driven out by democratic minded Chinese where 主权在民and not communist party or Mao.

    Without communist party and Mao, China today might very much like Taiwan. Tibetan might even get their own nation. At the least China won’t need to open their door so wide to let so many “western corrupts”, just to prevent the Chinese people from massacring, decimating and tearing themselves into hundreds of parts.

    The problem with corruption is usually power corrupts. Absolute power corrupts absolutely.

    Communism and China today is power absolutely to a very small number of people

    So without proper check and balance, can you tell the difference or dare voice out illegal corruption and legal corruption, even when you actually witnessed it ?

    Flabbergasted:
    June 19, 2019 at 9:38 am

    without the communist party and Mao, China would have been torn into hundreds of parts, she would have been owned by western corrupts.

    The Chinese people would have been massacred and decimated like the red-indians, the Australian Aborigines, the Maoris and many more races around the world.

    The problem is not with communism or democracy or any form of government, the problem lies in corruption.

    Corrupt leaders sell out their people and let, in fact help foreigners take over and bully their own kind.

    Corruption breeds “走狗“ at all levels.

    The manchus did precisely that that’s why China was divided into zones, there’s even places within Chinese soil that have signs that says “Dogs and Chinese are prohibited”.

    We are going that direction, how many instances that foreigners get away with “murder” while citizens are sued until their pants drop?

    I repeat , THE PROBLEM IS NOT WITH COMMUNISM OR ANY FORM OF GOVERNMENT, THE PROBLEM LIES IN CORRUPTION.

    Fellow Singaporeans, you decide and vote wisely.

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  • BK:

    I think beyond politics, you must ask what kind of ppl do you cultivate given your political system.

    Are your ppl humanitarians? Are they careful with the world? The top NGO is from Denmark, the rest of the top 10 are from the US.

    I still remembered a conversation with a young Chinese gal working for a Lebanese company based in China. She said they used to believe in Mao, now they believe in money. Recently, I find that more young Chinese are exploring the spiritual aspects of their lives, hopefully this translates to a more global outreach.

    Just yesterday, Trump said, HK is China’s business. China is happy about that. As US withdraws from the world, how will that affect their outreach to the refugees, health etc? Can China replace that?

    We must be careful not to be captured by a discourse that frequently now
    circles the West vs East dichotomy. It is polemical, but not that useful for a bigger world.

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  • Haigen-Diaz:

    I read in the Times this past week that Donald Trump’s priority goal is to strike a deal with China–any deal–to convince Wall Street that the tariff issue has been settled at the G20. He wants to goose the market for his re-election. If this is what he’s telling his trade representative, well, it makes sense given how he pursues his own interests over the country’s. So, if the changes proposed herein get enacted, American workers will suffer twice, continuing to pay higher prices for Chinese goods while American industry relocates even more jobs overseas. Some deal, you’ll know who’s been played.

    If members of the G20 this week are finally waking up to the reality that America is no longer a reliable ally with a claim to moral exceptionalism, I think this is a potentially positive thing in the long run, if they learn the right lesson that the postwar era, when the allies had to rely on America, ended long ago. The European Union, along with Canada, Japan, and other reliable democracies, need to strengthen the ties among themselves and contribute equally to an alliance which does not depend on America as the foundation.

    The Trump administration’s withdrawal from global leadership is also particularly unfortunate in its failure to recognize the real existential threat to humankind posed by global warming. This trend is simply not reversible given that the world is not doing enough to stop the warming. At some point the Atlantic will be moving into NYC but before that happens, droughts, floods, and heat waves will wreck parts of the world’s agriculture. These extreme weather events will shatter parts of the world with insufficient resources to deal with it. This will bring food shortages which will be a destabilizing element to world economies.

    Global debt has also risen to the point of unsustainability. The U.S.’s government debt is rising due to the $1.5T tax giveaway which is yielding far less than the promised growth. The administration’s economic policy team has almost no serious macro-economic thinkers; these people are businessmen who understand how to make life easy for their peers, but will be out of their element in a financial crisis or battling a recession. Trump of course is clueless; if a recession is imminent he’ll blame the Fed and everyone else.

    Maybe it’s time to get serious about trying to do something to stave off a global disaster? Maybe people around the world could really learn to work together?

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  • BK:

    Trump is the symbol of US middle class revolt against globalization. The economic efficiency of the global division of labor, has reduced the ‘scarcity of labor’ in US, as labor is now global.

    Consumer goods are cheaper, but has not offset costs in housing, education and health.

    This revolt is threatening to not only deprived the world of the biggest market, but cause deep divisions in the US.

    Has US hit its peak? Historically, the British pound hit its height in the late 19th century during the US Civil War, then finally losing its status about 50/60 years later in WW2.

    There is no indication that US dollar and its stock markets have reach the peaks yet. Singapore must adroitly manage this transition while solidifying as Asean hub.

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  • Rabble-rouser:

    @ Haigen-Diaz:
    The world order is changing for the worse at a time when the established order & developed economies like the US, the EU & Japan whom are engaged in financial growth shenanigans re: Negative yield process & their “Central Banks pumping steroids & HGH into their comatose system” & their private sector counterparts engaged in financial engineering & dubious practices (artificially induced markets & unsustainable price setting re: asset bubbles). The US are also engaging emerging economic giant, China in both trade & territorial disputes in a desperate attempt to exert their fading power. To me, the world order had degenerated into Ponzi schemes, the Greater Fool Game & Poker Bluff using a poor hand.
    At the same time, weather patterns are becoming unpredictable & swings from one extreme (Polar vortex, heavy snowfalls, rainfalls, flooding) to the next (drought conditions, dust bowls, etc). In addition, the severe weather patterns bring on pestilence & new challenges in drug resistant viral problems, pests & new diseases/renewed old ones.
    Humanity is at the crossroads! The biggest threat to humanity are that the global political leadership are afflicted by politicians’ growing self-interest, collusion with corporate interests & wealthy small interest groups (resulting in crony capitalism & growing market distortions) & increasingly, “beggar my neighbour” policies that not only are zero-sum games but even negative outcomes as lose-lose propositions.
    I have never been so pessimistic about the future because the next generation will be facing an existential threat. Yet many Millennials are typically the Strawberry Generation or worse, Snowflakes (with neither gumption nor a stiff backbone) unable nor possessing the tools to face the uncertain future. Mass Technology Adoption have become an opiate [stealth weapon of social destruction] for the masses – You can see it everywhere; eyes firmly fixated on the small screen, a selfies generation, enchanted by social media tools, shallow thinkers without much depth in thoughts & basically, “sheepies” or groupthinkers with herd mentality.
    Mate! Where do we go from here? What can we do?

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  • All things considered TKL?:

    https://www.dsausa.org/

    (extract)
    Capitalism pits us against each other and workplaces are fundamentally authoritarian unless workers can self-organize and build collective power. This is why people build unions, and why employers undermine them. It is also why the capitalists as a class constantly work to undermine unions and promote narratives about unions that frame them as unnecessary, undemocratic or ineffective. We are forming a national project to fight back and build power in the economy, since outside of Wall Street, workplaces are the place where the owning class extract resources from the working class.

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  • Rabble-rouser:

    @ BK & Haigen-Diaz:
    Great reading your respective comments. They’re like a breath of fresh air pushing out the stale, predictable narratives out the window. Politics have reached their crossroad because in reality, the global economy have reached their growth limitations some 5 decades earlier (circa the 1980s). The 1990s were actually, a Paradigm Shift of epic proportions (Cold War end, China’s rise, Financial shocks…). The last 4 decades had been a process of Wealth Rationalisation (ie. Globalisation, Corporatisation, MNCs & Income Inequities, a Wealth Gulf); Technology Breakthroughs & Disruptions (ie. PC, Internet, Smartphones, etc) & Distorted Market Structures (Crony Capitalism, Price Cartels, Unethical Business Practices, etc). Wealth Creation these days are not based on the general prosperity of Masses but instead, wealth redistribution from many to only a few.
    I’ve noticed that current Politicians are increasingly Geriatric People ie. over 70 years of age. For the forthcoming 2020 US election, the front runners are incumbent Donald Trump (73 years old), Joe Biden (76 years old) & Bernie Sanders (77 years old). Ask yourself, who do they actually represent for the US? The Millennials or the Status Quo? Why the US are in such a steep decline?
    The Central Bank cohorts are no better; Jerome Powell (66 years old); Mario Draghi (71 years old) & Haruhiko Kuroda (74 years old). Who do the Central Bankers represent for their respective economies? The Corporations & Wealthy Interests people with access to cheap funds, or the savers, retirees, govt pension funds, etc?
    Yet today’s Millennials are pretty apathetic about politics & very confused about their future. They are like floating driftwood vulnerable to the ocean riptides & like lalang grasses bending over to where ever the wind blows! Contented with social media exploits, taking selfies for self-glorification, I fear for the worst when the s**t hits the ceiling fan!

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  • Haigen-Diaz:

    BK: Just yesterday, Trump said, HK is China’s business. China is happy about that. As US withdraws from the world, how will that affect their outreach to the refugees, health etc? Can China replace that?

    Bro, BK
    I fear for their future. Think Singapore and Hong Kong under British rule – both aren’t even close to democratic ideals politically, but prospered under the British-style rule of law. Hong Kongers have never enjoyed true democracy – whether under British colonial rule or as a Chinese special administrative region.

    The proposed extradition bill threatens Hong Kong’s judicial independence, and hence the rule of law itself, by removing the legal firewall between the city and mainland China – a key competitive edge of Hong Kong as an international financial hub.

    The United States has no puppy in this fight. In this case, the more Trump get involved,(and the more US Congress get involved), the more evidence it will provide to the HK government that this campaign is directed by external forces. My heart and my sympathy are with the Hong Kong people who marched in the hope of defending their rights. Realistically they are fighting a losing war even if they win every battle.

    When the best of the western media cite the Basic Law (the one that governs the return of Hong Kong to Chinese control) they often cite the so-called “one country, two system” and “high degree of autonomy”. Deliberately or not, but always fail forget the “50 years” part of the Basic Law:
    “The socialist system and policies shall not be practiced in the HKSAR, and the previous capitalist system and way of life shall remain unchanged for 50 years.” (BL Article 5)

    The metaphor doesn’t work because HK is already under China rule, unlike the koreas/germanys which are actually separate countries.
    Sad all around to see HK in this state though, it seems inevitable that it will just end up as a Shanghai if we fast forward another 20 years.

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  • BK:

    Usual crystal clear thoughts from @ Rabble-rouser & @Haigen-Diaz.

    I concur with the fears, explained by both of you. And to that we seem to have possible war scenarios. Iran shooting down the US drone is bound to elevate tensions in the Middle East.

    Iran’s problems is not just with the US. In fact, it has deep internal divisions as well. Starting a war, maybe a way to coalesce the population.

    I don’t believe a mercantile Trump wants to start a war, but he is embedded in a Judeo-Christian narrative, which comes from his base.

    He will be barking loud and hoping to avoid being forced to bite.

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  • Rabble-rouser:

    @ BK:
    No Mate, Trump actually represents the Status Quo. His recent actions especially his undue duress (twits, temper tantrums, unsubtle coercion) on US Fed Chair Jerome Powell to prematurely cut interest rates in a Global Liquidity tightening phase & yield inversion cycle just for his 2020 reelection bid. This has artificially extended the late cycle US Stockmarket bull run which to any fundamental investor, has reach epic proportions of absurdity & ridiculous valuations. There’s no more investment monies in the system to “pretend & extend” this artificial US asset bubble market. In truth, Trump had ramped up the market systemic risk to even higher levels by his self-indulgent behaviour for power.
    In all honesty, the Global Economy has been broken by Trumps’s actions; escalating US-China trade wars, War rhetoric against Iran (possible false flag attack on tankers), (Tariff) Threats against Mexico, (US-lead black ops) interference in Venezuela, etc. It points to a Megomaniacal man (Trump) & someone who is conflicted, messy & who opens up issues but is incapable of cleaning up after his own mess.
    The US$ reserve currency status is facing existential threat due to Trump’s high-handed actions. The truth is that the US economy had been enjoying a high standard of living far beyond their natural ability to consume. Export-oriented economies eg. Germany, Japan, S.Korea & China had been subsidizing their exports to US consumers by a long shot simply to stockpile US$ holdings. This is done to buy essential commodities priced in US$ especially oil (Petro-dollars).
    Yet the hollowing out of the US Manufacturing & Industrial base (due to Globalization) had impoverished the middle-class. The reality of their consumption were through using cheap but unsustainable debt, not higher disposable income.
    Bro, the US is in steep decline!

    BK:
    Trump is the symbol of US middle class revolt against globalization. The economic efficiency of the global division of labor, has reduced the ‘scarcity of labor’ in US, as labor is now global.

    Consumer goods are cheaper, but has not offset costs in housing, education and health.

    This revolt is threatening to not only deprived the world of the biggest market, but cause deep divisions in the US.

    Has US hit its peak? Historically, the British pound hit its height in the late 19th century during the US Civil War, then finally losing its status about 50/60 years later in WW2.

    There is no indication that US dollar and its stock markets have reach the peaks yet. Singapore must adroitly manage this transition while solidifying as Asean hub.

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  • Haigen-Diaz:

    @ Rabble-rouser & BK

    The 2020 election will be the ultimate, consequential test of the presently stressed trade tariffs. Four more years of Trump will not only produce a level of executive authoritarianism America has never previously experienced but, I fear, encourage his successors to follow a similar path, with all of its ugliness, strategy of victim hood, persistent lying, purposeful class division, and accountability.

    The Economist calls his tariffs “counterproductive and dangerous” because they can inflict long-term damage not only to trading partners but also to US economy. “The risk of a clumsy mistake that triggers a financial panic is high,” it warns. China, meanwhile, remains the Cheshire Cat down the rabbit hole that we all over the world now inhabit, patiently biding its time.

    Trump is playing a very dangerous game with the world. The global economy could very well fracture, leading to regional separations. If the schoolyard taunts become an all out war will anyone in his administration or the GOP be willing to step in as an adult rather than continuing to let Trump get away with playing President Bully? The financial markets may be ignoring Trump’s threats for now, but the real economy is not.

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  • Rabble-rouser:

    @ BK (@ Haigen-Diaz, too):
    The US$’s reserve currency status (& also Petro-dollars status) are currently being under serious threat by various alternatives (Precious metals wealth store, cryptocurrencies, alternative trade settlement schemes outside of the current SWIFT settlement infrastructure, Bilateral trade settlement agreements, etc) are all emerging options to replace the US$ reserve currency status & the US$ denomination for many traded commodities.
    Even FaceBook is launching their own cryptocurrency called Libra as a subtle strategic move to eventually displace the declining US$.
    China’s BRI are also a subtle strategy & a financial move to displace the US$ reserve currency status & eventually US$ denomination for many global traded commodities. Because the direct trade links to be achieved through China’s BRI, it would be logical to assume that future trade routes would eventually replaced the US$ with the use of the Chinese ¥.
    A lot of people (including S’poreans) aren’t aware of China’s technological huge leap with various technological advancements & their firm national resolve to be ahead of advanced industrialization including full factory automation & the use of robotics.
    Look at California’s proposed High Speed Rail system whose construction couldn’t be completed & basically was a White Elephant. In contrast, China’s High Speed Rail National network system was constructed & completed within 2 decades. US Industrial might is fading fast & losing worldwide credibility eg. Boeing’s 737 Max undercooked development & eventual tragedy. Even for electric cars, China is ploughing ahead with this emerging technology for the masses while Tesla are plagued with production issues, quality control & high prices. In truth, the US can’t match China’s Industrial prowess & growing manufacturing know-how!
    Frankly, I don’t see any significant role for S’pore in China’s scheme of things. And ASEAN members aren’t particularly fond of S’pore anyway re: Cambodia/Vietnam over insensitive “Invasion” comments. The schematics of the S’pore political situation is particularly sad – self interest motivations & power obsession clouding over national interest & mass prosperity for the electorate. “..adroitly manage” seems more like heading towards a waterfall situation with no firm hand on the navigational system. S’pore is heading towards crisis!

    BK: There is no indication that US dollar and its stock markets have reach the peaks yet. Singapore must adroitly manage this transition while solidifying as Asean hub.

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  • BK:

    Yo @ Rabble-rouser, I definitely don’t see Trump the way u do. For now, I really don’t see any currency being able to challenge the USD as reserved currency.

    The Euro was meant to be an alternative. And this was supported by the US, coz they wanted a lower valued USD to support trade.

    China needs major reforms in their capital markets, before it can even be considered a reserve currency.

    I agree, the world is getting more chaotic, but this supports the USD even more. Are u going to park your extra cash with uncertain Europe or a restricted regime in China?

    The FED is careful about raising rates, not coz just of Trump, but because of Euro. The EU is buying its own debts, and it cannot afford higher rates. In any case, for me the debts in EU is waiting to collapse, and with that the whole EU project.

    I enjoy your perspectives and arguments bro!! At often times brilliant (:

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  • BK:

    @ Haigen-Diaz

    I think, the global system as we had known before Trump is gone. US vs China is an inevitable showdown. From China’s perspective, better Trump than Obama leading this friction. Obama would have been able to coalesce the allies, while Trump is breaking with everyone.

    Even as Trump proudly said US will send 1000 more troops to Poland, he emphasized that Poland was paying for it.

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  • Haigen-Diaz:

    @ BK
    Trump is trashing those relationships in a way that may be irreparable in favor of obsequious advances to brutal dictators. The facts and implications lead to China calling the shots and commanding its bidding. Obama is the classic and useful GOP scapegoat, tattered and worn–but nothing like the sell out of Trump.

    As far as the foreign policy argument, President Obama had a coherent foreign policy that can be summarized as just peace pragmatism outlined in his Nobel Lecture. Thus, he was able to achieve the Paris climate accord that every nation on earth now supports except the Trump administration. He brokered the TPP, a deal that is going forward without the US, thanks to Trump.

    President Obama brought European nations together with China and Russia to craft the Iran nuclear deal that Iran kept and the United States violated thanks to Trump. He organized sanctions against Russia for its military theft of Crimea and put it out of the G-8. Now Trump wants to allow Russia back.

    The audience co-stars, Trump and Kim, made it to Singapore, Kim on a China-borrowed, American-manufactured plane. Fittingly, they arrived at a golf resort whose beach was built with imported sand. They spoke alone. They spoke with staff. They signed an agreement of general principles written before the meeting to denuclearize the Korean peninsula, a position long sought by North Korea. The moment has been declared as “defining,” “historic,” a “new chapter.”

    Thanks for their alt-right foreign policy perspective!
    In media reality, essence was replaced by appearance. Appearances overwhelmed a myriad of details, and missed descriptions and comparisons — even the media’s joyful shame.

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  • BK:

    @ Haigen-Diaz, I loved the way u write (:

    Trump seems to me, to be an easy target of ridicule and hilarity. His character doesn’t help. But if he is not elected, will the problems go away?

    US middle class has been waning since the 1980s from Reagonomics and supported by Thatcher; the shift from manufacturing to the financialization of the US economy. This is coz by 1970s, US started to be a trade deficit country. So, to remain on top, they make sure the surpluses of the world is routed through the US banking system. This banking system is the artery of globalization, how, who and when to deploy the surpluses/ capital of the world.

    As u can see from Singapore’s example, labor, cheap and plentiful labor infused into both US and throughout Western Europe. Wages are stagnant or depressed, returns on Capital grows on account of less for labor.

    So, we have ‘alt-right’ political parties flourishing in US and Europe. The liberal agenda, while always well-meaning had serious side effects. And the side effects of social disintegration, aging population, high debts etc, cannot be wish away.

    Even before Trump, global trade has been slowing since 2011/12 in relation to global GDP. My take is that technology is shortening supply chain, and allows more countries DIY. A small example is Singapore trying to be more food sufficient through technology.

    I just hope that as the world resets, there will be no war.

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  • Rabble-rouser:

    @ Haigen-Diaz & BK:
    An Advanced Economy like the US goes through several stages [...Early Growth, Exponential Growth, Maturity, Stagnation & Eventual Decline]. But over time [especially during the Stagnation & Decline Stages], the following signs become evident:
    1. The native working population grows complacent & lazy [benefits driven vs contribution];
    2. The people who didn’t participate in the early to exponential growth stages in developing their economic success grow arrogant & self-centred; &
    3. The govt & public administration grow self-indulgent & power-hungry making themselves above the laws that they had passed & immunity from criminal & fraudulent acts they committed.
    If one noticed carefully, S’pore also have parallels with the US especially on the 3rd point. The past Economic success (&/or high, unjustifiable pay) creates a false sense of confidence resulting in seeking entitlement & privileges. Sometimes this bring with it absolute arrogance & gross insensitivity. Go overseas, you can hear the Mainland Chinese talking very loudly attracting negative attention from the locals; White Australians & white caucasians making a fool of themselves in Asia – Bali, Phuket, inciting envy & hatred, etc; some TRE commenters forever dissing, putting down M’sia in comparison to S’pore re:1:3 forex rate. This is a natural byproduct of arrogance from MSM (& state media) selling national economic success. State & mainstream media, even Hollywood films are guilty of fostering conditioning methods, idea indoctrination of an inflated national identity & blind following – creating a false sense of overconfidence & arrogance within the population. But the world doesn’t stand still! You need to work for it!
    Trump come into power in the 2016 US Presidential Elections on the backs of the American disaffected & displaced voters. MAGA was just a convenient tagline for Trump to swing votes towards his direction. But in reality, the US had already gone past the path of no return.
    Trump was simply creating an irretrievable illusion just to get power. His recent bullying of Fed Chair, Jerome Powell to take a dovish interest rate policy reaffirms that Trump is the “Status Quo”, not an alternative. The continuation of the Central Bank’s low to zero interest rate policy simply affirms that the govts are keen to protect the wealthy to the detriment of the masses. Nothing have changed!

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  • Haigen-Diaz:

    BK: @ Haigen-Diaz, I loved the way u write (:
    Trump seems to me, to be an easy target of ridicule and hilarity. His character doesn’t help. But if he is not elected, will the problems go away?

    @ BK, that’s cringe worthy! :)

    If Trump’s not elected. Many of the problems we have now may not had existed. Anyway, let me get back to you with another comprehensive narrative. Need to condense and put on my economic thinking cap. lol

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  • patriot of TUMASIK:

    After digesting BK Hagen & Rr take on TRUMP…all I can say after watching him on FOX and occasionally other NewsNetwork…

    The TRUMP is really THUMPING the world for the Good of His Nation & People…calling a spade a spade but @ times over the TOP calling Kim his friend/buddy and that includes Shi too… I don’t think that is too bad compared to our Foreign Genius serving Tea & Coffee for Trump & Kim at our expense like an IDIOT and No Thank you for acknowledgement with a President to ashamed to be Presented…

    After TRILLIONS in Foreign Aid …to consider his Nation & People 1st seem the right way to go leh!!!

    Compare that to the Promised Swiss Standard-Elite & Aristocrat Standing for the privileged and FTs and the day to day survival for most with the elderly working till they DROP DEAD

    I will Stand UP for TRUMP anytime without even BLINKING!!!

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  • Haigen-Diaz:

    BK: US middle class has been waning since the 1980s from Reagonomics and supported by Thatcher; the shift from manufacturing to the financialization of the US economy. This is coz by 1970s, US started to be a trade deficit country.

    @ BK & Rabble-rouser & patriot of TUMASIK:

    Rabble-rouser’s Advanced economy stages above:[Early Growth, Exponential Growth, Maturity, Stagnation & Eventual Decline] is a gem to read addressing your take on the US economic dilemma.

    Fair or not to Americans in general, the damage has been done. Regardless of how much longer Trump actually remains in office, I suspect that it’s going to be a very long time before American food, beverage and wine producers recapture the market share. The trade war isn’t taking Trump where he thought it would, both on the personal and the national trade levels.

    Midwestern farmers are realizing that part of the Chinese market for their soybeans may never come back. US Taxpayers got stuck with the bill for Trump’s $12 billion dollar bailout of American farmers and that a total of 84 farms in the upper Midwest filed for bankruptcy between July 2017 and June 2018.

    Tariffs are intended to make foreign goods more expensive and therefore less competitive with domestic goods. Example: Foreign steel costs $10 a pound, domestic steel costs $15 a pound. A $6 per pound tariff is imposed on foreign steel. Buyers now have a choice between $15 a pound steel and $16 a pound steel. To me it sure looks prices just went up for all the buyers who used to buy that $10 a pound foreign steel. In fact, it looks like they just got hit with a 50% increase in costs.

    There is no way Americans can make that stuff here at anywhere near the prices the Chinese can. Just in from Apple & INTEL – Apple Inc. urged the Trump administration not to proceed with tariffs of as much as 25% on a new slate of products imported from China, saying it would reduce the company’s contribution to the U.S. economy.

    It’s also become clear that after last year’s NAFTA-2 “negotiations” and the misinformation, outright lies, tantrums and serial insults directed by the President and some of his officials, many Canadians are going out of their way to avoid buying American products. And as the American products don’t sell — or at least don’t sell as well as they used to — the stores stock less of them.

    In the meantime Trump keeps everyone in the audience distracted and exhausted and entertained with his side-patter that is really meaningless bloviating. You have to watch his feet, not listen to his words.
    There’s no business like show business.

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  • BK:

    Yo bros,

    This trade/tariff thing happened with Japan before. The US workers then, threw Japanese made tv from the top floor of their apartments.

    This resulted in the Plaza Accord that drove USD down. The appreciation of the Yen drove global capital to Japan. The bubble then caused the 1989 economic meltdown of Japan. Then the 1997/98 Asian crisis…

    The problem today is more complicated, it is widespread across the developed world, Trump, Brexit, Marie le Pen, etc…. It is how the disaffected classes are rebelling against the so called, ‘Center of politics’.

    It seems the Thucydides trap, social fragmentation and multiple hotspots are brewing into a perfect storm.

    I’m not saying Trump has the answers, but the problems precede him. There is a tendency to say globalization is the only way, but trade seems less important to GDP growth than before, and technology may point the way.

    Business cycles exists and I buy into Joseph Schumpeter’s ‘creative destruction’. The segmentation of such cycles can be retrospectively refined. But it is the ‘mother’ of economic evolution.

    Economic efficiency is rudderless without an agreed and renewed social contract. It is broken, and it cannot be business as usual.

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  • Rabble-rouser:

    @ BK Et al:
    S’pore’s quoted media reporting on (the govt & their state supported economic initiatives) aiming to grow food through technology – isn’t this another incredulous “statement of intent”? Aren’t they aware of the huge impediments confronting this primary industry?
    Not when the most important factor of food production ie. land & the next most important factor ie. labour are all so-so-expensive! Added to it, high electricity & water costs – this “boat” simply can’t launch & sail out of the harbour!

    BK: Even before Trump, global trade has been slowing since 2011/12 in relation to global GDP. My take is that technology is shortening supply chain, and allows more countries DIY. A small example is Singapore trying to be more food sufficient through technology.

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  • BK:

    @Haigen-Diaz, Rabble-rouser & Patriot of Tumasik, gentlemen, thank you for the chat (:

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  • patriot of TUMASIK:

    [email protected]…many thanks for your enlightened comments on the American farmers and steel industry…Cheaper goods from China without Tariffs are MORE profitable than locally made goods in the USA…the ones enjoying the PROFITS are Corporations mostly with the Local ordinary folks hurting most… let us look at Singapore and the FW & FTs…who will build your HDB and run your corporation if not for the FW & FTs??? so say GCT…

    at slave wages suppressing local wage and jobs and levies amounting to Billions for the govt coffers but $200 for PGs Medishield…

    NTUC…for you with you the workers 2% & 3% elderly discount on Mondays & Tuesday…Compare two necessities with ABC outlets…Toothpaste Colgate $1.90 to $3.60… soap, top brands differences between 50 to 80% and my Favourite Dettol 500ml @$2.90 and $6.40 @NTUC and their for you and with you shit!!!

    Even with the tariffs in place, the Basic necessities for the ordinary working class is affordable in the US…MOST important the Ordinary folks’ welfare is seen as 1st in Priority not forgetting the war veterans…

    Singapore??? the Elites are in Line for all the Benefits with the working class holding the wrong end of the STICK…so much for the Going into the Rainbow to land on a Pot of SHIT!!!

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  • BK:

    @Rabble-rouser

    Yes, the constraints are real. I have a cousin in this biz. And for domestic consumption it is doable. Some of the ideas into vertical farming and technology are really interesting. Even Japan with more arable land is doing it. And if you look at domestic eggs production, it is getting significant.

    And I agree with @Haigen-Diaz that food prices will rise in the near future. I also believe, we must try to have as much food sufficiency as possible.

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  • Haigen-Diaz:

    patriot of TUMASIK:
    [email protected]…many thanks for your enlightened comments on the American farmers and steel industry…Cheaper goods from China without Tariffs are MORE profitable than locally made goods in the USA…the ones enjoying the PROFITS are Corporations mostly with the Local ordinary folks hurting most… let us look at Singapore and the FW & FTs…who will build your HDB and run your corporation if not for the FW & FTs??? so say GCT…

    at slave wages suppressing local wage and jobs and levies amounting to Billions for the govt coffers but $200 for PGs Medishield…
    NTUC…for you with you the workers 2% & 3% elderly discount on Mondays & Tuesday…Compare two necessities with ABC outlets…Toothpaste Colgate $1.90 to $3.60… soap, top brands differences between 50 to 80% and my Favourite Dettol 500ml @$2.90 and $6.40 @NTUC and their for you and with you shit!!!

    Even with the tariffs in place, the Basic necessities for the ordinary working class is affordable in the US…MOST important the Ordinary folks’ welfare is seen as 1st in Priority not forgetting the war veterans…

    Singapore??? the Elites are in Line for all the Benefits with the working class holding the wrong end of the STICK…so much for the Going into the Rainbow to land on a Pot of SHIT!!!

    Bro patriot, the Merdeka package is also an insult. Keep one crystalline object (use for paper weight) and throw the rest into the waste bin.

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  • Rabble-rouser:

    @ BK Et al:
    Bro, not trying to be a pessimist here but I doubt the real intention of the PAP govt. This PAP govt whom I believe are still trying very hard in maximizing (reaping revenues from) their state land holdings over any other National Land Strategies ie. executing National Food Sufficiency. Their 10 million population target is for real. No doubt some % of food sufficiency is “doable” but I doubt it. FYI S’pore is already on a path of no return ie. Path of “unsustainability”. Under the PAP govt, S’pore is already configured (some 2 decades back) on a very narrow economic pathway of reaping certain competitive advantages (Financial Intermediation of global capital flows, Trade Globalization on trade-agreements/corporate tax havens, Money laundering activities via casinos, wealth mgmt, etc). But the serious side-effects from undertaking such financial competitive advantages were:
    * Gross Income Inequalities;
    * Horrible asset bubbles (for properties & land prices) – Super Rich Parking Wealth;
    * Creation of a “Showroom” Economy with ostentatious monuments without any ROI analysis;
    * Encouraging rent seeking activities & implementing a crony capitalist economy; &
    * Serious high cost of living & a highly inflationary eco-system via “govt cost-push inflation”.
    The bulk of sustainable food production still rest on grain mass production & on animal pasturing, not just vertical farming & production through using technology. At the end of the day, it’s still about vast lands, ample water resources & either cheap labour or capital resources invested on farm automation. There are no other alternatives.
    S’pore’s economy is extremely fragile. The focus on senseless population growth simply to maximise land revenues (using leasehold) & regenerate recycling possibilities had become bankrupt. The sooner that S’poreans realised that, the doomsday possibility would be averted. If not, prepare your exit strategies ahead of time. It’s no joke!

    BK:
    @Rabble-rouser

    Yes, the constraints are real. I have a cousin in this biz. And for domestic consumption it is doable. Some of the ideas into vertical farming and technology are really interesting. Even Japan with more arable land is doing it. And if you look at domestic eggs production, it is getting significant.

    And I agree with @Haigen-Diaz that food prices will rise in the near future. I also believe, we must try to have as much food sufficiency as possible.

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  • Haigen-Diaz:

    Rabble-rouser: But in reality, the US had already gone past the path of no return.
    Trump was simply creating an irretrievable illusion just to get power. His recent bullying of Fed Chair, Jerome Powell to take a dovish interest rate policy reaffirms that Trump is the “Status Quo”, not an alternative. The continuation of the Central Bank’s low to zero interest rate policy simply affirms that the govts are keen to protect the wealthy to the detriment of the masses.

    @ Rabble-rouser, et al:
    The problem is, Trump has few economic levers left to pull. He has already slashed taxes to the wealthy and corporations during a time of historically low unemployment and relatively robust economic numbers, and as a result the government is borrowing money at or near record clips. So badgering the Fed into reducing rates is truly the only he has tool left to try to stimulate an economy which shows ominous signs of a coming downturn, if not a recession.

    I would suggest this is because of the instability and uncertainty he has wrought, all at the same time—the China trade dispute, tariffs or threatened tariffs against other countries, his termination of or withdrawal from various treaties, saber-rattling at Iran, Venezuela and North Korea, insulting our allies in Europe, Canada, Mexico and elsewhere, a manufactured immigration crisis and the overall lack of confidence in his ability to competently run the government.

    The coming recession, and it is coming, will be triggered by global consumer fear which will cause a huge pullback in spending. And, rising prices from the tariffs which will also reduce consumption and supply chain disruptions which will cause layoffs and reduced investments. (I mean real investments that produce goods and services, not trading stocks).

    So basically, to me, it looks like we are going to have a recession no matter what the Fed does. Trump will have no problem blaming Powell and everyone else.

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  • largest debtor nation:

    //I agree, the world is getting more chaotic, but this supports the USD even more. Are u going to park your extra cash with uncertain Europe or a restricted regime in China?//

    yar lor. now the world economic environment is more jiaklat with USA being the largest debtor nation, more so by the day (if not seconds), somehow hor still see USD getting stronger leh. why leh ? some currency paradox leh ?

    https://www.usdebtclock.org

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  • extracting value:

    //S’pore’s economy is extremely fragile. The focus on senseless population growth simply to maximise land revenues (using leasehold) & regenerate recycling possibilities had become bankrupt.//

    like that how ? rent-seeking (indirect tax) highly and yet sinkies have to compete for good paying jobs from white idiotic open-leg policy and white idiots got the cheek to say for you with you and whatnot ?

    and this rent-seeking (extracting value rather than adding or creating value) gets filtered down to higher cost of living in everyday’s lives ?

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  • BK:

    largest debtor nation:
    //I agree, the world is getting more chaotic, but this supports the USD even more. Are u going to park your extra cash with uncertain Europe or a restricted regime in China?//

    yar lor. now the world economic environment is more jiaklat with USA being the largest debtor nation, more so by the day (if not seconds), somehow hor still see USD getting stronger leh. why leh ? some currency paradox leh ?

    https://www.usdebtclock.org

    Currency is relative. To go by Lim Sweet Say’ rhythm: US is bad, China is badder, EU the baddest.

    EU again cannot hit its inflation target. Another round of QE to support countries liked Italy.

    Is ECB going to be the lender of last resort liked the Fed? But ECB is a union of differefnt nationalities, will Germany willingly through ECB saves Italian banks?

    German tax payers will ask why? But if ECB doesn’t save Italy when the time comes, the only logic left is for Italy to break from EU to go back to its Lira, in order to control its economy.

    China is still dealing with capital outflow. Why is the 2nd biggest economy in the world capping individual remittance to USD 500?
    b9By some accounts

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  • Haigen-Diaz:

    largest debtor nation:
    yar lor. now the world economic environment is more jiaklat with USA being the largest debtor nation, more so by the day (if not seconds), somehow hor still see USD getting stronger leh. why leh ? some currency paradox leh ?

    https://www.usdebtclock.org

    Government “debt” is unlike household debt. It’s like bank debt. Your bank account is your asset, but the bank’s liability (i.e. debt). Writing a check is assigning a portion of the bank’s debt to the payee. Currency is just checks made out to “cash” in fixed amount. The amount of currency in circulation is a component of national “debt.” The rest is bonds and bank reserves. Reducing the “debt” means reducing people’s savings. When their obligations come due, if they don’t have savings, and can’t borrow more, then asset forfeitures and foreclosures follow.

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  • BK:

    Cont…

    Why is the 2nd biggest economy limiting the individual remittance to usd 50k? By some accounts, the reality is alot less. This shows no real confidence in the country. Alot of smuggling is done through HK.

    By default u are left with the USD.

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