Lots of misconceptions here , first of all you need to know what the Bretton Woods system is. In 1971 the Bretton woods system was ended officially ended by the US and hence the end of the gold standard. Before that, you could walk into an US bank and convert your dollar into gold.

Nowadays the greenback technically has no intrinsic value because so much dollar is in circulation compared to their gold storage in Fort knox. Ppl will ask why US dollar still so strong then, there are a lot of reasons but the major ones are being the USA has been a world power for the past 100 years most ppl see the dollar as a safe haven to store their assets although. Every pension fund in the world has some sort of exposure to USA treasuries, therefore the demand is there for the dollar.

When you buy treasuries you are lending the USA your precious money. Look at China's communist government for the past decades keep on investing in US treasuries. But since the US dollar keep on depreciating, after interest on their treasury investments they still losing 'real' value on their investment.
http://www.guardian.co.uk/news/datablog/20...ow-big-who-owns

For Malaysia, our currency/sovereign certainly does not contain demand anywhere close to what the dollar commands in the international market. Our central bank can definitely keep printing money but then our currency will depreciate quickly. You will see increasing food prices, house prices etc because so much currency is in circulation.

Lately, there's been talk of our debt approaching 55% limit set by our constitution but the UMNO minister say no problem 2% more still far away!! If you  travel a lot and go to other countries, you will find food prices in country like Singapore and Taiwan are cheaper than Malaysia although their GDP per capita is higher than us. This just shows you how uncontrolled spending and money printing creates inflationary economy.

Just look at Ah Jib gor, election near go every kampung and hand out money and promises for more $$. Where the money come from?? Surely our tax $$ already used up breeding cows, so the government issues sovereign bonds on the international market to borrow $$ to use.

First of all, you need to look at debt in the context of foreign & local debt. Singapore is very special in a sense that most of its government debt are owned by CPF, which is EPF in Singapore terms, they have virtually ZERO foreign debt. Using these debt, Singapore government companies like Temasek and GIC have for years generated outstanding returns on their debt. And that money will flow back to their retirees, benefiting their people.

And don't kid yourself Singapore's sovereign debt rating is AAA, the government has not sold bonds on an international market to raise funds since 20+ years ago. To argue that Malaysia's debt standing is actually better that Singapore just shows how myopic you are, really. 
Do you even know what you are talking about? Your example is poor at best, but I roughly get your idea.

In economics we can price something in the nominal or real terms. For your egg example, selling for MYR5 or SGD2.5 does not really matter, because surely you can compare food prices in real terms. You can convert price in Sin dollar into RM using today's exchange rate and compare which is higher. If something that sell for RM5, which is SGD2 retails for SGD1 in Singapore, is it not cheaper? So a country that has higher per capita GDP, but yet food prices in REAL TERMS are cheaper than Malaysia, do you NOT see what the problem is?? If you still don't understand, go enroll in a basic economics class.