Re: Mahathir is more sensible out of government

"Ir. Hj. Othman bin Ahmad" <othmana@xxxxxxxxx> wrote in message
news:1122109861.787456.240570@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> An American Werewolf in London wrote:
>> "Ir. Hj. Othman bin Ahmad" <othmana@xxxxxxxxx> wrote in message
>> news:1122047390.688143.267320@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>> > Mahathir abandoned the US currency pegged RM, only when outside the
>> > government.
>> =============
>>
>> Actually, if the grapevine is to be believed, Malaysia unpegged for 2
>> reasons.
>> So really, it ain't got nothing to do with the change of heart in
>> Mahadey.
>
> The threats were made even when Mahathir was in Government.
> But why did he changed his mind when out of government?
=========================

I suppose, if indeed he changed his mind as most of us would like to
believe, then it must be because of the intensity of the threats, and the
probability of implementation. Look at it this way, even China, a
superpower in many ways, buckled finally. And to think that China has got
foreign reserves estimated at about US$1 trillion, compared to ours of mere
US$75 billion. Something real severe must have occurred in the background.

On the practical side of it, the USD will definitely collapse in the near
future. We dont know when, but the lesson of history has always been that
wars inevitably will destroy the economy of the winner, one way or another.

And it is almost an economic axiom that the winner's currency will devalue
following the end of a war. It happened to Britain, to France, to Japan, to
Russia, and to the US after the Vietnam war. In this respect, I don't think
that we have a bloody fool there in Putrajaya sitting at the PM's desk.
Even if it were Noh Omar or Shahidan Kassim, surely those clowns can sense
that the US is currently fighting two wars at the end of which it will lose
both. Just a matter of time. So why be irresponsible to continue propping
the value of the ringgit with the USD -- about 75% of total portfolio.

History will definitely reveal the reasons that we are now speculating, but
even before that, notice how the BNM still keeps the ban on offshore
physical / spot trade of the ringgit? Meaning beyond the RM10,000/person we
are legally allowed to carry and play with, banks can't trade
millions/billions of physical ringgit as pre-1998.

One theory that was furiously being traded via the SMS in the last few weeks
was that, it is true after all that Anwer spirited out a few billions in
hard cash, mostly in the RM500 and RM1,000 denomination. Hence the
cancellation of those denominations.

True or otherwise, for whatever it is worth, forget Mahadey, I salute Pak
Lah for being able to negotiate a "partial re-liberalization" of our
currency regime. Given Washington's mood of an arrogant bully, with the
attitude "all or nothing", I must say that Pak Lah has triumphed handsomely.

Notice also how Mahadey was conspicously absent from the big UMNO meet. May
be he knew what was coming before hand and wanted no part of it. So really,
in all, I dont think he hasn't changed that much.



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