Heng Swee Keat

According to the Monetary Authority of Singapore (MAS), the Singapore dollar will not be allowed to rise in what it calls a “zero appreciation” stance. The news confound most Singaporeans and nobody bothered to give a second look, and there is no article in Singapore explaining the significance of devaluing SingDollar.

Clearly, this episode again proved that keeping Singaporeans stupid is the only way of ruling the dictatorship. Singaporeans must not learn more than the need to place blind trust in the PAP government.

This article will debunk the fake news propaganda published, and reveal the true intent of devaluing the SingDollar.

Here’s a little background, the Singapore government has always maintained that it determines the currency value by measuring it against a basket of currencies, but this is not true. The Singapore government has been guilty of currency manipulation for decades, and it was in recent years called out by US President Donald Trump. Dishonesty? Checked. Now let’s go into the details:

Why devalue the SingDollar, according to the government

The Singapore government said the devaluation will increase exports and minimise the impact of the recession. No further explanation, and you can trust the PAP government to do the right thing because Lee Hsien Loong is a mathematician and Heng Swee Keat is an economist. Trust these millionaire ministers and don’t ask more. Keep it simple stupid indeed.

Why devalue the SingDollar, in reality

Two major reasons: debt and currency manipulation.

1) Singapore’s economy is fully funded by domestic debt, which is literally CPF accounts of Singaporeans. Devaluing the SingDollar will alleviate pressure off Temasek Holdings and GIC, to its creditor, the CPF Board. The recent Coronavirus Budget becomes really dangerous now because the base asset that is generating income are now being taken away. It is akin to killing the goose that lays the eggs.

The Singapore government has to pay back the base asset plus the rolling interest rates in our CPF accounts, through 9% GST increase and harder tax raises to come. Budget surplus today is unachievable because we have to pay for Lee Hsien Loong’s vanity projects like Founders’ Memorial, Terminal 5, Tuas Mega Port, High Speed Rail and “climate change”. Or, Lee Hsien Loong can just raise the Minimum Sum further and get everyone to withdraw only at 75 years old. Or, nobody gets to touch their CPF for the rest of their lives.

2) Sovereign wealth fund companies GIC and Temasek Holdings are beginning to liquidate their overseas assets to fund the S$48.4 billion Coronavirus Budget. Sounds like a good strategy to sell when currency is lower? Yes, you get more bang for the buck but hear yourself again: sounds like a good strategy to sell now when prices rock bottomed in today’s market?

They bought high and they are now selling low. This means massive double-digit losses in tens of billion dollars, is going to make those few percentage in currency manipulation look like loose change. It is just another case of being penny wise, pound foolish.

The real problem of devaluing SingDollar now: Inflation

Since the SingDollar is weaker now, import-dependent Singapore is going to see massive price rise of food and goods. This means common Singaporeans are going to pay more for groceries and goods imported, which is literally everything.

Price inflation is very bad timing at a time of rising unemployment and job losses. The government state media did not report more than necessary, because this may trigger another round of panic buying and stockpiling.

Is what I’ve written above fake news? Nope, Finance Minister Heng Swee Keat validated everything in an interview with CNBC today:

“Our monetary and fiscal policy need to complement each other. We look at how to maintain price stability and the conditions for longer term growth.”

For the average person, monetary and fiscal policy means the same thing. Nope it isn’t, this again goes back to the point of keeping Singaporeans stupid.

What then is the solution and how should the currency be handled in the best of Singaporeans’ interests above?
 
My answer back to you is, you voted for the corrupted PAP ministers, and you pay the price for it. I am not your MP or minister, and I owe Singaporeans no accountability because I am not in power. If anyone insists on a solution, remove the PAP first and we talk about why should I help to clean up the mess created by others, stupid.

Alex Tan
STR Editor