US living on borrowed money
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  1. #1
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    US living on borrowed money

    Friday December 3, 2004

    US living on borrowed money, says Dr M

    DUBAI: Tun Dr Mahathir Mohamad has described the United States as “a deficit state living on borrowed money” which owes huge sums to the rest of the world.

    “If people do not keep giving money to the US, it will go bankrupt,” he told local newspaper Gulf News in an interview that was published on Wednesday.

    He said the American giant had “feet of clay” and its biggest weakness was the dollar.

    Dr Mahathir said Malaysia had avoided losses to its foreign exchange reserves despite the decline in the value of the dollar by building its euro and gold holdings.

    “Why are we clinging to the US dollar when we know we are going to lose money?” he asked, adding that countries opposed to the “bullying” by Washington should use the dollar to force a change in American policies.

    He was here on Tuesday for a short visit. – Bernama

    http://thestar.com.my/news/story.asp...628&sec=nation

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    Wink Re: US living on borrowed money

    Err... wasn't he was the one peg RM with USD

    isn't he was the FM who borrowed alot during his time Now who is talking.

    If you have asset of one million, borrow one dollar still doesn't hurt in the short term.

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    Re: US living on borrowed money

    Err...WildBill ...each year Malaysian leader pays homage to Japan...since Dr. M's so called...'LookEast Policy'...n we ended up borrowing more morE n mORE!...ahem...now...the Yen has been at its peaks for last couple of decades or so...thus we are yet still sinking deeper...deePER n deEPER!

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    Wink Re: US living on borrowed money

    Err.. Orchi..

    That's why he is sooooo mad. Those damm American allow their dollar to slide and Malaysia have to re-pay more back to Japan. Mana ada duit lagi for cronies Susah loh

    By the way, do you know how much is Petronas external debt to Japan?

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    Re: US living on borrowed money

    Err...WildBill...please allow Orchi to take a wild guess...150 trillion Yen?

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    Re: US living on borrowed money

    U.S. NATIONAL DEBT CLOCK

    The Outstanding Public Debt as of 03 Dec 2004 at 03:14:36 AM GMT is:
    $ 7 , 5 2 9 , 3 9 5 , 6 8 3 , 4 6 2 . 1 4

    The estimated population of the United States is 294,955,169
    so each citizen's share of this debt is $25,527.25.

    The National Debt has continued to increase an average of
    $1.74 billion per day since September 30, 2003!
    Concerned? Then tell Congress and the White House!

    Err...this is how much USA owes...to the world

    http://rds.yahoo.com/S=2766679/K=tri...com/debt_clock

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    Wink Re: US living on borrowed money

    Err Orchi,

    The figure is correct but most of US debt in internal. I remember read one of the article in MSN or Yahoo on this issue few months ago.

    Govt. mentality, is you have millions, you don't feel that it is a problem to owes someone a thousand.

    This is how most of the countries in the world spend nowaday.

    Have we wonder, if US stop buying, what will happen to the world economy?

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    Re: US living on borrowed money

    Forgive me for my stupidity?

    Am I looking at the figure USD 7 trillion plus?

    I thought US debt is USD 700 billion only.

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    Re: US living on borrowed money

    Foreign Trade and the National Debt
    by Harun Rashid
    Sep 10, 2001


    [Much that happens in Malaysia relates directly to the deposed finance minister, Anwar Ibrahim. At the time he took the post in 1991, the national debt was around RM25 billion. Over the next eight years he was able to reduce this figure until it was under RM10 billion. At the time of the '1997 crisis' there was enormous pressure to sharply increase the public spending, especially in the large mega-projects favored by the prime minister. One was the Bakun Dam, which was suspended by Anwar along with other projects, which he considered a form of plundering the public treasury to enhance favored financial friends of the prime minister.]

    [[B]Since the removal of Anwar Ibrahim from his post in September of 1998, the national debt at the federal level has escalated to over RM200 billion. To this must be added the state and other lower level debt, plus the debt in the private sector. Much of this debt will never be repaid.[B]]

    [It has been quite a party. But that is not the whole story. In addition to this increased debt load, the government has cleaned out the large corporations under its control. Maybank, Petronas, Telecom, and especially Tenaga National are essentially overburdened to technical bankuptcy. Their debts and non-performing loans are now too heavy to survive a significant downturn, and the current level of default on interest will soon be a major factor in the financial embarrassment of the country.]

    [As if this were not enough, the pension funds of the public employees have been spent in the pump priming scheme, and it is impossible to get an an accurate accounting of the losses they have sustained. The financial arms of the government are broken, and the various funds under its control have lost their flexibility, along with the people's security.]

    http://rds.yahoo.com/S=2766679/K=mal...96Foreign.html

    [Harun Rashid is a scientist interested in the application of Islamic principles to international affairs. The promotion of goodwill through civilisational dialogue motivates his writing. The Worldview column is a personal analysis of Malaysian affairs from a global perspective.

    The content of all articles is the responsibility of the author. The intent is to provide thought-provoking analysis]

    http://rds.yahoo.com/S=2766679/K=har...s.com/harunrmy

    Err...anyone believes this is mambo jumbo?...or there might be some truth in it?....

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    Re: US living on borrowed money

    Malaysia Economic Overview (2002)

    Summary

    Growth slows to only 0.5% in second quarter. Electronics sector badly hit. But better than feared following Singapore's data. Most analysts put it down to Malaysia's more diversified economy. Government hopes to avoid recession by fiscal expansion and stimulating consumer expenditure through loose monetary policy. Significant announcement on restructuring of Renong group. Pressure on Ringgit relieved with timely boost to reserves through successful bond issuance.

    Key Data

    GDP growth (year-on-year)(Q2 2002) 3.8%
    GDP growth (Q2 2002 by sector):
    Agriculture -1.3%
    Mining -4.6%
    Manufacturing 5.6%
    Construction 3.4%
    Services 4.5%
    Real GDP growth for 2001 +0.4%

    Trade Surplus (Q2 2002)) RM 9.7 billion
    Balance on Current Account (Q2 2002): Not available
    Net International reserves (2Q 2002): RM 129.9 billion US$ 34.2 billion
    (5.6 months' retained imports; 5.1 times short-term external debt)
    External debt service ratio Not available
    Medium and long-term external debt (Q2 2002): RM 152.1 billion
    Short term external debt (Q2 2002): RM 24.1 billion
    Total external debt (Q2 2002): RM 176.1 billion (US$ 46.4 billion)
    KLSE Market Capitalisation (Q2 2002): RM 505.89 billion
    KLCI (Q2 2002): 725.44
    3-month interbank : 3.21% (average for Q2 2002)
    (11% in 1998)
    Average commercial bank base lending rate: 6.39%
    Net NPL of banking system (6 months Classification): 8.1% (July 2002)
    NPL of banking system (3 months Classification): 10.9% (July 2002)
    Unemployment (Q2 2002): Not Available
    Inflation (Q2 2002) 1.9%
    Exchange rate (Q2 2002): £1.00=RM 5.86
    Fixed peg rate: US$1.00=RM 3.80

    Source: British High Commission Kuala Lumpur Economic Report for Second Quarter 2002. Further information can be found on the British High Commission Kuala Lumpur website: www.britain.org.my or the Bank Negara Malaysia (National Bank of Malaysia) website: www.bnm.gov.my

    History and Political situation

    Malaysia's history has been one of continual interaction with foreign powers and influences because of its strategic position between the Indian Ocean and the South China Sea. Its location has made it the meeting place for both traders and travellers alike. Hindu-Buddhist influence was strong in the northwest before the coming of Islam. Archaeological findings in Kedah provide evidence of a Hindu-Buddhist civilization that dated back to 300AD.

    By 1400, when the Malacca Malay Kingdom was at the height of its power, Islam had become a major influence. By 1511, however, Malacca had fallen to the Portuguese. Meanwhile the Dutch had been establishing their influence and presence in Java. By 1641, the Dutch had also taken over Malacca but they in turn lost it to the British who had been slowly consolidating their hold on the Malay states, following Francis Light's arrival in Penang in 1786. By 1815 Malacca was in British hands and in 1819, Stamford Raffles founded Singapore. Thereafter, through treaties, relentless political pressure and diplomacy, the British slowly extended their control over all the states of the Malay peninsula.

    Sarawak, once part of the Sultan of Brunei’s Empire, had been ruled since 1841 by a British adventurer named James Brooke and his descendants. In 1888, Sarawak and North Borneo (Sabah) became British protectorates. By the 1920s, all the states that eventually comprised Malaysia were under British control. The first stirrings of Malaysian nationalism were felt in the 1930s and following the end of World War II, the momentum of nationalism picked up again, culminating in independence for the Federation of Malaya in 1957 and the formation of Malaysia in 1963.

    Today, Malaysia is a prominent member of the Association of Southeast Asian Nations (ASEAN).

    Malaysia has an elected constitutional monarchy. The Supreme Head of State is the Yang di-Pertuan Agong (King) who is elected every five years from among the nine Rulers.

    The Head of government is the Prime Minister, who must be a member of the Dewan Rakyat (House of Representatives) or Parliament. Parliament itself comprises two Houses: The Dewan Rakyat, which is fully elective, and the Dewan Negara (Senate) to which members are nominated by H.M. the King from among citizens who have rendered distinguished public service or have achieved distinction in the professions or are representatives of racial minorities or are capable of representing the interests of the aborigines. As Head of Government, the Prime Minister heads the Cabinet, which is made up of the various Ministers of Government. Each of the 13 states of Malaysia also has its own Chief Minister or Mentri Besar, who is also elected to office. It has its own (elected) State Assembly.

    The Prime Minister, Dato’ Seri Dr Mahathir Mohamad has announced his intention to step down in October 2003, and he has announced his successor will be the current Deputy Prime Minister, Datuk Seri Abdullah Badawi.

    Trade Statistics

    Statistics on world trade are available to consult for free at the UK Trade & Investment Information Centre. The Information Centre also holds an extensive collection of publications and electronic resources covering topics such as market research, economic country data plus international telephone, business and trade directories.

    The National Statistics Information and Library Service (NSILS) is a public library providing access to the statistical outputs of the Government Statistical Service (GSS). Tel: 0845 601 3034

    UK Trade Information supplies free basic four digit UK trade figures on a monthly basis. The site is provided by HM Customs and Excise so, as you'd expect, the information is both accurate and up to date. In fact one of it's unique features is that the data is available within 48 hours of publication.

    More detailed figures on United Kingdom overseas trade can be obtained from data retailers, for more information please contact:

    HM Customs and Excise, Statistics and Analysis of Trade Office
    Tel: 01702 367485

    Alternatively most public reference libraries normally hold United Kingdom trade statistics.

    TOP 10 MALAYSIAN TRADE PARTNERS IN 2001

    Ranking Country Imports (US$ mil) % Share
    1 Japan 14,575 19.3
    2 USA 11,991 15.9
    3 Singapore 10,232 13.6
    4 China 3,687 4.9
    5 Korea 2,936 3.9
    6 Thailand 2,907 3.9
    7 Germany 2,717 3.6
    8 Indonesia 2,260 3.0
    9 Hong Kong 1,884 2.5
    10 Philippines 1,831 2.4
    11 UK 1,765 2.3

    Ranking Country Exports (US$ mil) % Share
    1 USA 18,055 20.2
    2 Singapore 15,181 17.0
    3 Japan 12,130 13.6
    4 Hong Kong 4,077 4.6
    5 Netherlands 4,029 4.5
    6 China 3,758 4.2
    7 Thailand 3,277 3.7
    8 Korea 2,989 3.4
    9 UK 2,304 2.6
    10 Germany 2,130 2.4


    Source: IMF Direction of Trade
    DTI/ES Statistics

    UK TRADE WITH MALAYSIA JANUARY 2003
    TOP 10 SECTORS

    UK Imports

    Division £ Mn
    77 Electrical Machinery, Apparatus and appliances, N.E.S. and electrical parts thereof (including non-electrical counterparts N.E.S. of electrical household type equipment. £29,862,000
    76 Telecommunications and sound recording and reproducing apparatus and equipment £25,799,000
    75 Office Machines and automatic data processing machines £23,747,000
    82 Furniture and parts thereof, bedding, mattresses, supports, cushions and similar stuffed furnishings £11,530,000
    84 Articles of apparel and clothing accessories £10,150,000
    42 Fixed vegetable fats and oils: crude, refines or fractioned £8,051,000
    89 Miscellaneous manufactured articles N.E.S. £8,019,000
    63 Cork and wood manufacturers (excluding furniture) £5,025,000
    66 Non Metallic mineral manufacturers N.E.S. £4,655,000
    78 Road vehicles (including air cushion vehicles) £2,371,000
    Total £129,209,000

    UK Exports £ Mn
    77 Electrical machinery, apparatus and appliances, N.E.S. and electrical parts thereof (including non-electrical counterparts N.E.S. of electrical household type equipment £12,365,000
    75 Office machines and automatic data processing machines £6,317,000
    28 Metalliferous ores and metal scrap £5,799,000
    79 Other transport equipment £3,725,000
    78 Road vehicles (including air cushion vehicles) £3,721,000
    76 Telecommunications and sound recording and reproducing apparatus and equipment £2,918,000
    71 Power generating machinery and equipment £4,583,000
    74 General industrial machinery and equipment N.E.S. and machine parts N.E.S. £2,484,000
    59 Chemical materials and products N.E.S. £2,450,000
    72 Machinery specialised for particular industries £2,370,000
    Total £44,732,000

    Source UK Overseas Trade Statistics
    Business Monitor January 2003
    Prepared by DTI (Stats)

    UK Exports of goods (£Million)
    1997 1998 1999 2000 2001
    £1,205.3 £683.3 £940.3 £912.0 £1,033.2

    UK Imports of goods (£Million)
    1997 1998 1999 2000 2001
    £2,025.5 £1,990.8 £2039.8 £2,374.4 £2,012.2


    Source: IMF Direction of Trade
    DTI/ES Statistics

    Standard of living

    The standard of living in Malaysia is generally quite high. Local infrastructure is very good and property ownership almost universal.

    Public Expenditure

    Malaysia weathered the global slow-down through a mixture of government pump-priming of the economy, resilient consumer expenditure plus the fact that its economy is more diversified than others in the electronics exporting business. Growth slowed to 0.4% in 2001, narrowly avoiding a recession. But the rebound in 2002 has been strong. Growth in the Q2/02 was a robust 3.8% and most analysts have raised GDP growth forecasts for the year up to above 4.5%.

    http://www.trade.uktradeinvest.gov.u...e/03_economic/

    Err...looks like...malaysians are really standing on thin ice...

  11. #11
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    Re: US living on borrowed money

    Why is it of any concern to Dr. M if US is living off borrowed money? I can't see the reason for him to make such a statement let alone the tabloids to even publish it.

    My 2 sens.
    To Fly Like An Eagle
    You Cannot Think Like A Turkey

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    Re: US living on borrowed money

    China and Japan hold more USA treasury bill than anyone else..they are the ones pumping money into the USA..if they stop supporting than USA will go crashing and it will be a vicious circle that will effect all. Msia interest is small. And the USA borrowings are all this treasury bills issued in USA...end of the day it is both external and internal borrowings.

    as for Anwar, well his job was good as FM..but was it him or just good timing...it is during bad times that you differentiate boys from men(girls from ladies..being equal here )..if we took Anwar's direction in 1997 crisis, we would have gone down a deeper drain..it coming out of a crisis that give people the stripes..from battle wounds. Look at our reserve now and borrowings..this figures are public.

    http://www.bnm.gov.my/view.php?dbInd...te_id=1&id=482

    http://www.bnm.gov.my/index.php?ch=111

  13. #13
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    Re: US living on borrowed money

    Err...Aroki-san ...the latest figures say...

    1. We got 3.7 millions unemployed malaysians
    2. We got more than 250 billions worth of various external debts(10k/newborn as well)...much of it in rising YEN...
    3. We got 50 billions or so in reserves
    4. We got around 2% inflation rate

    n Bla...Bla...Bla...

    Ahem...as far as Orchi is concerned...we are broke!

  14. #14
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    Re: US living on borrowed money

    Malaysia is insignificant with its 24 million populations.

    The Dollar is owned by 11 private banks http://www.save-a-patriot.org/files/view/whofed.html and they issue paper tokens in exchange for goods which are real wealth manufactured in other parts of the world.
    They can issue endless and consume the goods for free.
    The dollar colonies can only reinvest those dollars into the dollar economy – who else would give you anything for them.?
    The largest reserve holders are Japan and China. They are very smart with excellent thinktanks.
    They are not reinvesting those dollar earnings in the US internal dollar market – but only in the external dollar market – i.d. commodities which are traded in dollars.
    Since 1974 all oil has to be traded in dollars only. So China is buying oil.
    Those increased prices in forward contracts reflect on the confidence in the dollar and also in the increased demand for oil. Supply and demand.
    As a result all commodities are getting more expensive and scarce.
    Malaysia is well advised to sit quiet and follow China and Japan who definitely have the better thinktanks to force the US in its knees.

    Japanese, European and American factories in Asia will be little affected by the Dollar's decline relative to the Yen & the Euro, because most of their currencies are pegged to the Dollar.

    Henry Liu opposes any change to the peg, arguing that "the financial imperialist economy imports value-added products from the colonies and pays for them with fiat paper" .
    If you don’t know yet Henry Lui – than read his 4 articles about China and the world economy and than look at the Malaysian perspective and your judgment again. For people interested in politics and economics those articles are a must.

    http://www.atimes.com/atimes/China/FL01Ad01.html

    I am not in all points in agreement with him, for instance the Tiananmen incident was in my opinion instigated by the CIA – just as it was in Balkan, Georgia or now in the Ukraine. The killer of mankind is ‘democracy’ as it kills the family and individual rights. Once ‘democracy’ is established – they can move in with their banks and make us dependent on their money via consumerism.

    P.S. I am not in favor to copy-cut-n’paste articles here. Rather bring links and own comments instead of brainwash.

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    Re: US living on borrowed money

    Before u judge money related matters u must understand money first and how it works
    For that I propose to read http://www.biblebelievers.org.au/jekyll.htm

    It works in Malaysia in a similar way - only Bank Negara is not directly owned by the 'Elite' . But the international participation is subject to the rule of IMF, WTO and BIS and all of those three institutions are controlled by the dollar issuing 'Elite'. Therefore Malaysia is just another 'dollar-colony' and subject to the 'Elites' liking.

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