CPF-OA should relax 10% limit for investment in gold ETF/bullion/ UOB etc

"The survey's composite five-year-expectation is 4.97 per cent - just below the 5.2 per cent predicted in the survey in September. "(see report: 'Singapore's inflation may remain elevated for years to come: survey')
S$100K in CPF OA @int.2.5%, inflation 5%(proj): value @ end of 5 years??...
S$100,000, net interest over 5 yrs (CPF OA 2.5%interest, 5% annual loss to inflation= nett -2.5% interest):
S$100K *0.975 *0.975 *0.975 *0.975 *0.975= $88,110 (i.e. loss of nett S$11,890) to inflation due to the SG govt printing extra SGD [see: Money printing (/borrowing) by Singapore government- how much is too much? ].

Live Documentary: Fiscal Abyss of the 21st century, thanks to unfettered welfare liberal democracy.

Haagen Diaz wrote:

Thread topic: Money printing (/borrowing) by Singapore government- how much is too much?
TS, where do you get the knowledge on this? Just from MAS website? I'm damn interested to know more. Thanks. I prefer to read a book in order to get the whole picture.

Money printing (/borrowing) by Singapore government- how much is too much?

Briefly, M1= printed SGD in circulation + some more, M3= quasi money= everything including government bonds (treasuries) etc (people will pay U money for these at whatever is market rate(much is sold to CPF so Temasek & GIC can invest the CPF monies etc) but too big to use at super-mart).

Why CPI might fail to capture the true rate of Inflation in Singapore.

GamerSg wrote:

Discussion thread: '30K Investment'
I cannot predict what MAS will do this year or tomorrow.
Maybe it will do the "right thing" and stop printing and inflation maybe go to 0%, or maybe it will jump down the cliff with Abe and friends.
But the M1 and gold price are clear that in the past 12 years, SGD has had a net inflation of 400%. Also note that there are years where MAS kept the money supply relatively constant. Your actual experienced price rise in food may be around 200%-300% due to mitigation by increased food production/efficiency. Property OTOH may have increased more than money supply due to government policy of allowing large influx of foreign labour and restrained housing supply.
I use gold/silver as a barometer because its supply is relatively fixed in the world, unlike housing where more can always be built or food which is consumable and can be affected by weather, increased production.
I don't know what DBU is either [bold font added]

'10year swap spread' means what?

"With the persistence of Europe's sovereign-debt crisis, safe-haven effects have driven the yield of 10-year US Treasury bonds to their lowest level in 60 years, while the 10-year swap spread - gap between a fixed-rate and a floating-rate payment stream - is negative, implying a real loss for investors." Source: 'The real interest rate risk' [TODAY, 10Jan2013] by Zhang Monan (a fellow at the China Information Center and China Foundation for International Studies, and researcher at China Macroeconomic Research Platform.)

When the banks fail, everyone else will follow....

rebeccasu4 wrote:

Thread: Future World in 2030?
Hmm I dont think hyperinflation would be an issue in singapore in 2030. Yes inflation is on the rise and will continue to be. But hyperinflation is one of the most extreme forms of inflation and I think the government would be able to control it.
An issue in 2030 could be outflux of talent. If singaporeans dont feel a strong enough sense of belonging and ownership to the country and the grass gets greener on the other side.
Robots seem to far a stretch too i feel?
What do the rest of you think?