Singapore Govt New Private Jet?
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the fact that sg government is borrowing to pay money. deficit spending or so its called. is spending beyond our means.
looks like when you grow up lionnoisy , you probably have to pay something like 10% GST and higher taxes thanks to our government's deficit spending. im glad you so wholeheartedly support it.
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Originally posted by sgstars:
LOL... did i just fail my maths or did i see lionnoisy attempting to justify a 115% of GDP public debt held by sg as better than a 15% of GDP public debt held by australia ?
either 2+2 =3 and im seeing flying pigs outta the window.
congratulations lionnoisy, u never fail to dissapoint. a new level of self pwn. you only need 1 post only and to make yourself look like sheer stupidity. dont even need people to point that out to you.
i wonder whats next, you smashing your head into a computer monitor before you start posting
i think u overlook my key sentences...
''Pl note that this heavy debt come from the intentional debt
''borrowed'' from CPF.gov.sg to give risk free interest to CPF members.
Other countries,incl Oz,borrow for spending.SG is not...''
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To refresh your memory,i quote below for your references---
I must admit u will tell me GIC pay cheap interest to CPF members and
earn high return.LKY said GIC Temasek funds do not come from CPF!!
Believe or not?
''The CPF Board invests the bulk of CPF balances in Government bonds. These bonds pay a rate equal to the rate that the CPF Board has to pay to members. ''
5.06 pm. Mr Siew Kum Hong
CPF REFORMS AND OTHER MEASURES FOR A SECURE RETIREMENT 
[Sitting Date: 2007-09-18]
[Vol: 83]
[Start Col: 1727]
[End Col: 1829]
[Rel: 47.90%] View this report at: [Full] [Section] -
Originally posted by lionnoisy:
i think u overlook my key sentences...
''Pl note that this heavy debt come from the intentional debt
''borrowed'' from CPF.gov.sg to give risk free interest to CPF members.
Other countries,incl Oz,borrow for spending.SG is not...''
LOL, are you dumb or what ?
debt is debt. debt incurs interest. debt means the government owes someone else interest. debt means deficit spending and the government is spending beyond its tax revenue. debt means a greater burden on the citizens and future spending.
i didnt overlook your sentences. your sentences are completely irrelevant. the government still owes someone money.
your sentence illustrate how the money is kept within a internal system and experiences internal circulation. but you ignore or do not understand the concept of interest applied here.
think of it this way. company A borrows money from the workers, to pay its workers. the workers continue to get their pay and earn interest from the money it loans to the company. internal transfer of money within a system.
but the company still incurs a debt, it has to find some means to repay that additional interest incurred. assuming all else remains constant, the company has to earn extra money to repay that interest. and so what does it do t?
it can either, cut the pay of its workers or make them work harder to improve their efficiency.
same thing here. deficit spending places the burden on the taxpayer, making the tax payer suffer from less government spending on social programs (cutting pay), e.g healthcare, defence and other stuff that commercial companies will not provide
or requires the taxpayer to pay more in taxes to assume the same level of services provided (making people work harder)
this is really just ignorance on your part and not real stupidity for once, its a common misconception of deficit spending that it dosent have consequences. i
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Don't even pretend to be an economist, you dumbass. For the last 15 years or so of growth, Australia paid off all its public debt ie debt owed by govt.
The debt you are talking about is private debt and it's not necessarily a bad thing to be in debt. The use of debt to finance projects for example is a good thing. Companies use their skills to try and create money from debt.
At this point in time, I have one simple question dumblion, which country is officially in recession?
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Originally posted by Asian Aussie:
The debt you are talking about is private debt and it's not necessarily a bad thing to be in debt. The use of debt to finance projects for example is a good thing. Companies use their skills to try and create money from debt.
lets not complicate things by bringing in private debt.
u are talking about borrowing to ease and free up more money for cashflow and other fisical purposes right in the sense of corporate debt ?
He isnt talking about private debt. what the stupid lion is trying to justify is that we have a CPF (central provident fund). its kinda like the state run pension system, where everyone has to chip in a % figure of income , a portion by employers and a portion by employees.
the government manages this amount of CPF money and guaruntees an interest rate for the $ in these accounts. recently, in its move to encourage more savings for long term savings, the government up the interest rate of certain CPF accounts to 4% interest on the first 50,000 SGD in that account.
basically means the government is giving out 2k in annual interest for every singaporean citizen that has 50k in that account.
to pay out this annual interest, the SG government has issued SG gov bonds with the CPF board (the bureaucracy that manages the CPF accounts purchasing them)
he is trying to argue that the heavy government debt is because of this (which is a partial reason only since SG government has been running budget deficits these past couple of years)