Why would oil drop when the central banks provide more stimuli ? Or are you saying that stimuli are given because of poor economic activities, which in turn cause less demand for oil, subsequently causing oil price to drop ?

Well certainly they can raise anytime they wished to in future,... but if they are really cruel, then I would believe raising GST during a budget ann't would be a very good time to announce this.

OKay,... demand poor from China, that's why the PBOC needs to initiate more stimulus. Demand poor means oil price can't go up. Hence, it's oil price drops causing the PBOC to cut rates.

So you are saying PBOC cuts rate -> RMB drops -> other currencies follow and drop -> USD rises -> crude drops because of the inverse relationship.

The last two loops in the chain is known by everybody. But the rise in USD is not because of its own strength, it is because of the other currencies weakening. The inverse relationship between USD rising and crude dropping only comes into play if USD strengthens because of its own qualities.

HOw many currencies will follow the RMB and drop at the same time ?

AND,... don't forget, China is now coming out very strongly with their offshore funds. Their offshore RMB could strengthen because of the world markets strengthening due to this stimulus.

It's pretty confusing now.

Read-up on the offshore funds of China.

Could be part of the oscillating trend in the mid-forties seen recently. If it's really because of the China rate cut news, then there would be a spike seen. Look at the charts of SGDMYR and AUDJPY,... the upward and downward spikes respectively are very clear if you referenced the spikes against the time axis.

That why I said I'm still relieved that they have not raised the GST at this ann't. The longer they hold back, the more tax-collection they will stand to lose out on.

There is no free lunch,... something must give way. If the GST is raised too high without proper monetary and fiscal monitoring, then economic activities will slow down, and with less activities, there will be less GST collected. Less GST collected means higher deficit again.

Okay,... but even if bit by bit, still there will be increase, and if the purchasing power parity does not increase in tandem with GST increase, GDP growth will definitely be affected too. THe problem here lies in the income level of the people.

AV,... reached 43.39 now !!

Does the term 'Malaysians' include the EPF too, or only for individuals and corporates ?

'Malaysian rules are more humane and enforcements are more laxed' - so I was told by the foreigners.

So long as we have money, cheap labour is abound everywhere.

Mkt really regards the Fed rate hike as the over-engulfing entity of all economic events. The PBOC dropped its interest rates and reduced its bank lending requirements last Friday, but this did not manage to overcome anxiety of the Feds rate hike event.

Major indices around the world still dropped today.

The RM has weakened further as predicted,... all factors are pointing the further weakening of the RM. PM's budget has managed to hold the RM up for the weekend only. In future, when there are such events which allow us to buy within a small window, we gotta act quickly.

I managed to buy at floating rate, bulk price of 1.015 level against the SGD last weekend.

AV,... stable for today, but has weakened against last Friday's price. ...

As of this moment, and from what I was told by my RM since this morning, the world press is now detecting that : The feds are hinting of a December hike.

What I watched and detected early this morning at 2+am was : January 2016. The reading of the hint has since evolved to December now.

Getting a bit tired of this,....

This post has been edited by Hansel: Oct 29 2015, 02:27 PM

Tq, prophetjul.... I have not much to comment anymore except for some observations.... I have been infected with investor lethargy.

Let me guess,... I have not checked personally,... in the testimony to the US Gov't economic committee early this morning, Msian Time, Auntie Yellen hinted that they MAY NOT raise rates by end-2015, though the data-dependancy philosophy still stands,... right or wrong?

Good time to convert into the SGD today - 3.0500 now.

This post has been edited by Hansel: Nov 4 2015, 10:30 AM

Wil,... you are quite keen to see the RM weakening. Are you hoping to profit by converting the USDs you have in-hand into the RM ?

Convert only if you need to use the funds. Otherwise, invest the funds somewhere in USD-denomination,... the USD has more upside vs the RM compared to downside.

Off the top of my head for one month investment, it would be FCFD - USD Foreign Currency Fixed Deposit.

Will it ?

Finally, if 1MDB truly gets re-capitalized and all assets are disposed-off eventually and all debts paid-up, the RM will re-strengthen to 3.80 vs the USD ?