Unbelievable Or Irresponsible?

SalariesUp?

What are these guys smoking?

I read this article (above) in disbelief and made a posting of it in Facebook … and that got a lot of attention. Why would anyone publish such an article based on such loose statistics such as a survey that obviously doesn’t reflect the sign of the times. Is this irresponsible reporting or was it designed to give Singaporeans a false sense of security? If it is the latter, then this report is surely insulting our intelligence.

Let’s take a realistic look at the current state of Singapore’s economy and you’ll see how ridiculous his report is. First, have a close look at the employment situation … or should I say, declining employment status …  from some of the clips I gathered just over the last two weeks;

Bankers worryScreen Shot 2016-09-26 at 11.25.26 PM Screen Shot 2016-09-26 at 11.25.51 PMScreen Shot 2016-09-26 at 11.26.02 PM Screen Shot 2016-09-26 at 11.26.11 PMScreen Shot 2016-10-04 at 7.48.11 AM Screen Shot 2016-10-04 at 7.48.45 AM

That’s just in the banking sector alone. I daren’t even consider the other industries such as the Oil & Gas businesses, Retail, Shipping and Manufacturing sectors. Plus 75% of employers surveyed don’t plan on hiring in Q4.

For the first time since June 2012, there were more jobseekers than job openings during the second quarter …”

Screen Shot 2016-09-26 at 11.27.48 PMEmployers

To add to the employment woes, property prices have been falling since 2013, reducing the value Singaporeans’ main investment asset.

Property

An index tracking private residential prices fell 1.5 percent in the three months ended Sept. 30 from the previous quarter, the biggest decline since June 2009. Prices fell for the 12th straight quarter, the longest streak of quarterly losses since prices were first published in 1975 … “

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Property prices have always been a reliable barometer for The Little Red Dot’s economy. Thus if the current general downtrend in valuations versus the ridiculous prices people are willing to pay for a resale HDB is anything to go by now, it’s time to sell.

Plus all the familiar signs of an oncoming slowdown including defaulting financial instruments, (remember Lehmann Mini Bonds and Pinnacle Notes?), well hidden scams now coming to light such as Wells Fargo as well as local corporations defaulting on their financial obligations to wipe out investors’ life savings. All we need now is a Pandemic to complete the picture.

BondFailSwiberFail

Where the catalyst comes from is anybody’s guess. But the reasons are many for why the global economy needs to recess and soon. Oil remains stubbornly below $50p/b to continue taking its toll of many nations who depend on it as a reserve … Switzerland, Sweden, Denmark and Japan continue to hold its benchmark interest rate in negative territory … slowly but surely, growth amongst some of the major economies have slowed with Argentina, Brazil and Russia extending their period of recession while Canada, Chile, Mexico and France have already registered their first quarter of negative growth …

All this is piling up a global debt so huge that the IMF is starting to sweat with the main concern being China who’s real debt is obviously much worse than they’ve been reporting.

GlobalDebtBalloonsScreen Shot 2016-09-26 at 11.26.28 PM

Then comes Singapore’s main worry, for which the government has still yet to openly admit, for which businesses are already feeling the effect of, for which its citizens are starting to realise what Japan has known for 25 years – the effects of a full blown Deflationary cycle.

After taking into account Singapore’s inflation forecast of 0.8 per cent, salaries in the city-state are expected to rise 3.2 per cent …”

And they are expecting inflation to rise when we don’t even have inflation but rather 22 straight months of DEFLATION?

Deflation

Seriously, what is the purpose of publishing such an idiotic report when the obvious is already so clear? Do they think that the public can be THAT ignorant or naive to believe that 2017 is going to be that great? Tell that to the guy who lost his job last week. Tell that to the lady who has been looking for work for the last six months without so much as a second interview even at half her former wages.

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