instead of importing more goods, we are importing more Ftrash - IMF

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An honorable member of the Coffee Shop Has Just Posted the Following:

http://forums.asiaone.com/showthread.php?t=66169

IMF tells Singapore government to steal less money from ordinary citizens.

Basics:
- Every country govt prints money, its just a matter of more or less. All things being equal (productivity and consumption of each country being balanced, exchange rates should be constant if ALL countries print $$$ at the same rate.
- Though not commonly mentioned, such printing of $$$ is actually some form of theft since more circulating dollars means less buying power per dollar- an erosion of the hard earned savings of the average man.
- Chief printers of $$$ in this world are USA, China and Japan, everyone follows, that is why the M1 money supply (and other wider measures of $ (M2, M3 etc) is increasing annually too).
- Devalueing one's currency beyond international average e.g. Japan Yen/ (Abenomics) can make a nation's exports cheaper and its imports more expensive so the citizens have to produce more goods (work harder) for the usual amount of foreign imported goods (consumption).
- Tighten $$$ policy means print relatively less $$$ or lend printed $ at higher interest rates ( so that the value of one's currency increases relative to world currency/ gold prices etc.)
- The IMF finds that Singaporeans are working too hard and consuming too little. ("The island, which has a population of just 5.4 million people, enjoyed a current account surplus of $51.4 billion last year, which was a massive 18.6 percent of gross domestic product (GDP).")- Singapore island overproduced by $51.4b last year. IMF thus feels that Singaporeans need to enjoy themselves more by importing more foreign goods and asks that the Singapore government facilitate this by stealing less money from hardworking Singaporeans- more imports into SG can also help out with European joblessness, some of which exceed 50%(youth unemployment)- so as to assist the IMF with balancing out the world economy I suppose.

IMF "Singapore should consider tightening monetary policy further by letting the local dollar rise at a faster pace to aid external rebalancing"

Reference: 'QE: 'Hidden theft' or 'primary tool' for economy?'


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