The 3 currencies to hold for the future
- The Canadian Dollar (CAD): Canada is a close neighbor, but distinguished from the United States in having a sound banking system, a much smaller budget deficit, and huge energy and mineral wealth. The Canadian dollar had risen as high as $1.06 in the early part of 2011, but has since drifted back down to about 98 cents. At that level, it has further to rise and is an excellent hedge against any severe problems in the U.S. economy.
- The Chilean Peso (CLP): Like the Canadian dollar, the Chilean peso benefits from rising resource prices. Better still, Chile is by far the best-run country in Latin America, with a Transparency International Corruption Perceptions Indexrating better than that of the United States. The next election is not until December 2013, so political stability is assured. The peso has fallen about 8% this year on fears about emerging markets, but Chile's current account deficit is less than 1% of GDP. It has virtually no government debt and a large trust fund to cushion against shocks (such as last year's earthquake, for example).
- The South Korean Won (KRW): The won is a hedge against problems in the United States, but also against a collapse in commodity prices. Contrary to the Japanese yen, the won has fallen about 20% against the dollar since 2007, and is flat on the year. However, even with high commodity prices, Korea runs a substantial current account surplus. It also runs a budget surplus with the lowest amount of government spending in the Organization of Economic Cooperation and Development (OECD) group of rich nations. So it is fabulously strong economically. The only potential weakness comes in the form of an election next April, but even the opposition in Korea is thoroughly pro-market and should cause few problems.
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Good news is if you have the money and gold you get to survive in Malaysia. Now with the increase of 17% salaries for civil servants, prices of goods, fuel, transport etc will shoot up. It has happened before and this time round there is no difference. The salaries of civil servants decides on how much the goods will increase. It is the same with bonus.
So where will the Government steal and borrow the money from to pay these civil servants. Taxes, levies, EPF, your electricity bill, telephone and TV. Semua naik. Where do you think the Government is going to borrow the money from? China. Yes the Chinese. Yet at the recent UMNO Assembly all the bangsat condemn DAP indirectly at the Chinese. And those Puki Ma - Ibrahim Ali, Mahathir, Hasan Ali, Mydin, Johari etc. who blame the Chinese for every wrong in this country, behind our back are begging like beggars. Yes the UMNO Government has been sending Tun to beg the Chinese for money. You think the Chinese Government don't read the news or internet. What does the Malaysia Government got to offer in return for the loan?
So the middle class will see their bowl of rice being empty. And the poor will continue to live in poverty not knowing when they will see their next meal, losing all hope of survival.
And the UMNOputras and blind supporters continue to live without thinking.
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