Ramjade,

1) What makes you think that China and Greece can fix their problem quickly?

<<As the saying, what goes up must come down. Anything can happen in 1 year time.>>

2) Remember the Titanic. It was sunk.

Do not invest based on your FEELING. Look at the actual data. Even better, make sure that it works under ALL circumstances. Make sure that you can "go to sleep for 5 years" with your investment.

Dreamer

AVFAN,

You do know that Petronas is under control of the finance minister. It is not under control of the prime minister. So, if the pm is not the finance minister, he / she will have no control of Petronas and Petronas does not have to report anything to him / her.

Now, a PM with no control of Petronas aka number #1 source of THE GOVERNMENT's money is powerless.

Dreamer

Folks,

As RM is crashing down and no end in sight, DUMMIES are dumping money into ASX and thinking that this is buying opportunity. I guess it is not possible to save anyone that insist on putting all their eggs into ONE basket.

Dreamer

Folks,

This is for people that do not understand how RM drop affect fixed price ASx. And, they still dump money into ASx.

1) Most of your savings are in EPF and they are invested in GLC and Malaysia Government's Bond. Now, you put money into ASx, you are putting all eggs in ONE basket. For bumi, due to political reason, it is SAFE for them to invest in ASB. For non-bumi, if anything went wrong, your ASx will be used to bail out ASB.

2) With RM crashing down, how does the fixed price ASx help you?? The depreciation of RM will wipe out any dividend that you get.

3) KLSE is crashing down. ASx is invested in GLC and MGS. So, how can it be fixed at RM1?? There is a buffer. So, whoever withdraw and can be paid out at RM1 will have the money. So, what happened when the buffer run out and the ASx need to sell the actual share that had went down??

Do not put all your eggs in ONE basket. This problem is not going to be fixed any time. Oil price is not coming back up any time soon.

Dreamer

MGM,

What suffering?? The 3 millions UMNO members do not think anything is wrong.

"Don't worry, be happy!!!"

and

"Not too bad!!"

There is NO PROBLEM.

Civil servants will probably get a pay raise to cover the inflation.. Ditto for GLC employees and FELDA settlers...

Dreamer

Folks,

1) You do know that EPF does not have enough money to buy ALL of the MGS and finance the increasing government's debt. This is why 30% of the MGS is owned by FOREIGNER.

2) So, GST increase or get the GLC like TNB to raise electric bill and so on.. THE GOVERNMENT will have to find more money else where.

3) If MGS yield stay high and going up for quite some time, it is just a matter of time before BR went up. If THE GOVERNMENT is borrowing at 5%, RAKYAT will have to pay a lot more for their car loan and housing loan.

Dreamer

This post has been edited by dreamer101: Aug 26 2015, 09:26 PM

AVFAN,

If BR went up, many people will go bankrupt due to increasing housing loan payment...

Dreamer

prophetjul,

THE GOVERNMENT is running a budget deficit of 40 to 50 billions per year. So, THE GOVERNMENT has to borrow money. EPF cannot supply enough money. So, THE GOVERNMENT has to borrow from FOREIGNER. It has NO CHOICE.

Or else, it will have to

A) Cut government's budget

or

B) Stop paying the debt aka default

Dreamer

prophetjul,

A) Okay. That can be done. But, it is still not enough.

GST of 6% ~ 20 to 30 billions. Petrol subsidy is only 20 billions.

B) It is a cash flow problem. There is not enough annual cash in from EPF to finance THE GOVERNMENT's budget. Please note that EPF is only 500 to 600 billions. THE GOVERNMENT's annual budget is 250 to 300 billions per year.

Dreamer

prophetjul,

To stay in power, THE GOVERNMENT need to spend and borrow more. Raise interest rate will make many people bankrupt. But, THE GOVERNMENT will have more money to spend and stay in power.

Dreamer

prophetjul,

1) THE GOVERNMENT usually has a deficit of 40 to 50 billions even with normal income.

But,

2) Given the drop in Oil Price, THE GOVERNMENT will collect a lot less from Petronas this year..

So, in summary, even increase GST by another 6% to 12% and cut all petrol subsidies is NOT ENOUGH.

Dreamer

This post has been edited by dreamer101: Aug 27 2015, 10:09 AM

Folks,

Wake up!!!

It is going to get even worse in 2016. It is NOT going to get better.

It is VERY SIMPLE.

Petronas is going to contribute significantly less money to THE GOVERNMENT due to low oil price. So, THE GOVERNMENT has to borrow more and tax more. 200+ billions of THE GOVERNMENT's budget is operational. It cannot cut unless it layoff civil servants. It won't do that due to political reason. And, to stay in power and bride those MP, there will be more capital spending some where. For example, more allocation to BN MP next year.

A) Petronas going to give less money

B) THE GOVERNMENT is going to spend more.

C) There will be more taxes and price increase by GLCs.

Dreamer

Folks,

http://www.thestar.com.my/Business/Busines...ysia/?style=biz

<< LNG's adverse impact on Petronas and Malaysia

Not only would that have implications on Petronas earnings, but Petronas’ contributions to government revenue could be impacted. Petronas contribution had dropped to about 22%, from 30%.

In 2012 and 2013, when the going was still good and Brent crude stood above US$100 per barrel, Petronas had contributed RM80bil and RM73.4bil respectively to the Government.

For 2014, that contribution has been estimated to drop to around RM68bil with Brent averaging US$99 a barrel. The contribution for 2015 would decrease further with Brent oil now hovering at the US$60 level.>>

66 billions at US$99. If you follow the same ratio, it will be 40 billions at 2015. So, Petronas will contribute to THE GOVERNMENT (66 - 40) = 26 billions less.
>>

Enjoy the show!!!

Dreamer

http://www.malaysiakini.com/news/309078

<< KINIBIZ It looks like that the oil crisis is biting Malaysia’s energy giant Petronas harder than it thought it would.

Last week, during its financial results announcement for second quarter of financial year 2015 (2Q15), chief executive officer (CEO) Wan Zulkiflee Wan Ariffin admitted that the company is having cash flow problems that will force Petronas to dip into its RM126 billion cash reserves.

Could it be the final straw that breaks the camel’s back for Petronas’ controversial US$30 billion (RM123 billion) liquefied natural gas (LNG) venture in Canada?

Read more: https://www.malaysiakini.com/news/309078#ix...1JqojtJ>>

Folks,

Petronas only has RM126 billions in reserve.

As I had said before,

"Don't worry, be happy!!"

"Not too bad!!"

You can count on DUMMIES to top up ASx to bail out THE GOVERNMENT.

Dreamer

Folks,

The DUMMIES are still arguing whether the Fixed price ASx will change to Variable Price. And, whether the dividend rate of 6+% will continue.

But,

1) The RM continue to drop and wipe out any gain that they have. THE REAL INFLATION is more than 6%

2) And, KLSE is crashing but somehow ASx that invest on GLC will be fine??

They are LOSING MONEY even if ASx stay as FP and delivering dividend of 6%.

Dreamer

This post has been edited by dreamer101: Aug 28 2015, 09:06 PM

endau02,

Still does not change my point. An increase in petrol tax is still not enough.

Dreamer

Folks,

<<For Malaysian residents who invest in Ringgit denominated assets, there's absolutely no currency risk. Why do you bother about the value of Ringgit againts other currencies when you would spend most of it on local products?>>

More comment from DUMMIES on the other thread. There should be enough smart people on this thread to understand the fallacy of this comment.

Dreamer

Mr Gray,

<<For Malaysian residents who invest in Ringgit denominated assets, there's absolutely no currency risk. Why do you bother about the value of Ringgit againts other currencies when you would spend most of it on local products?>>

Are you SMART ENOUGH to understand the foolishness of your own comment?? If not, no rational discussion is possible. The mark of an intelligent person is the ability to THINK.

Dreamer

Ancient-XinG-,

You have money to invest in ASx but no money to buy foreign currency??

Dreamer

Ancient-XinG-,

Are you trying to be funny??

<< how I spend groceries in Tesco giant aeon big? Life in selangor not good. Petrol station dint accept usd >>

Those places do not accept ASx unit as payment. Only RM. If you do no take out the ASx units, you cannot pay them.

Let's be honest..

You put all your eggs into ONE basket.

<<Who also wish to have usd in hand but having the ability to have it is another point>>

Do you mean that you DO NOT KNOW how to take a few thousands RM and exchange them into USD at the money changer??

Dreamer

This post has been edited by dreamer101: Aug 30 2015, 08:26 PM