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Financial Engineering #4

December 16th, 2009 ray Leave a comment Go to comments

In the land of Mahreishia, it is a country rich with natural resources and multiple ethnicity. In the year 1980 and before, they were so rich that their money is even bigger than Kiasuland currency and buying a Toyota Camry(Corona) was only $30,000 Renggit. Prior to 1980, they had accumulated a lot a lot of money by selling tin and rubber and timber. It was a great place to live in and peoples are living comfortably and everyone was happy. Windfall struck when Mahreishia found black gold (Oil) in 1980’s. So relatively they had plenty of reserve, they can spend however they want and when you say “Ada Wang Ada Amoi” a lot of marriage and population is increasing.

Since the government is so rich, they started spending lavishly with billions of renggits. But it’s still ok, because they got money. Then there were some companies and bank went ‘gulung tikar’ but it’s still ok, government got money, they pump in billions to ‘rescue’ these banks. Manatau, they ‘gulung tikar’ (bankrupt) again, it’s still ok, government got lotsa moolah, pumped in billions, yet again. With so much money, so much reserve, so much resources, there comes so much foreign direct investment too. The guai lous from Cheeserland started setting up companies and investment in Mahreishia.
Government more happy, everything was so liquid that time. No problem wasting money too. So they started mega projects wanna show off they is the keng.

Year 1990, gomen waste even more money than 1980s. Instead of billions, gomen wasted tens of billions each year.
Cheeserland become ‘red-eye’ of this region, so 1997 financial crisis has the happened liao.
Becoz the gomen of Mahreishia spended so much money and now found itself not enough $$$ liao.

So, it started to gorek Petrollnutz. USD 30 Billions from Petrollnutz was used to save a lot of the *ahem* gomen buttocks, including *ahem* son. All funds from EPF, Haji Fund, Retired army fund, all those other “funds” which is controlled by gomen also kena tapped until everything habis lah.

That was 1997, 12 years ago; which means, for 12 years already, the country is technically ON BORROWED TIME
Gomen still found itself short, so in 1998 the big boss of Mahreishia gomen started selling FUTURE PROFITS to foreigners. He sold 25 year contracts of NATURAL GAS SUPPLIES to Taiwan, Hong Kong and Korea; the contract won’t end until year 2023

Which means, up to year 2023, every single tanker of NATURAL GAS we ship to Korea / Hong Kong / Taiwan is FREE.We only charge shipping fee (and someone punya son untung that too !) and STILL … gomen still not enough money. So they started something called “saham nasional” and sold them to the citizens. By doing so, the pokai gomen started to suck money out of citizens’s saving accounts AND WASTE ALL THOSE MONEY AS WELL !

by buying submarines
by building all those white elephants
by fattening their own pockets

But the stupid citizens still don’t know. They say “look, gomen gip us so high interest, we go buy la”. Yeah, all they gave you is a PIECE OF PAPER and you gave them YOUR HARD EARNED MONEY

It’s a ponzi scheme -> a great promise of the future WITHOUT any ability to repay

And now it’s Year 2009, even Petrollnutz, the only cash cow of the gomen, is emptied

so what now? raise tax? kenot, ppl will revolt
lie? citizens can only take so many lies, too many and citizens will revolt too
so … they start raising FEES

like RM 50 fees on credit cards
like GST
like cutting subsidies on petrol
like raising electricity bill
like raising water bill
and so on
And obviously all these still NOT ENOUGH

so what else can gomen do?

cut back on services

less police patrol on the street

less gomen hospital service

and MORE FINES

you will start noticing JPJ / Polis giving out more and more speeding tickets

and local gomen will also step up their enforcement, hawkers, business, residents will be kacau more and more

rent will rise

as well as the brand new “garbage disposal fees”

and so on

all in all, it’ll put tighter and tighter squeeze on the citizens

just so that gomen can get the $$$ to WASTE

like … the proposal of building the world’s TALLEST BUILDING in mehrehshia

like … sending yet another monkey to outer space

like … building a bridge to sumatra

like … RM 290 Million per year to keep the 2 submarines afloat

… and so on

So, What can the citizens of Mahreishia do?
Nothing, it’s too late
even if the opposition wins tomorrow, it’s still too late

the country is already pokai

do u know how much we owe others?

do u really want to know?

the samurai bonds issued by petrollnutz alone totalled USD 12 Billion

the gomen owes foreign banks / foreign gomen moneh too !

a lot of moneh !

and one day they will start collecting back from gomen

and that one day we will be like dubai

default

first they wasted the money saved before 1980’s

then they wasted the money from FDI

then they wasted the money from epf and all the other gomen controlled funds

then they wasted the money they borrowed from foreign banks / gomen

and they wasted money they borrowed from the citizens

nao … oil is drying up

the gomen has painted itself to a corner

it has no way out

there is no money tree to shake anymore

nada !

but it can’t stop its own bad habit of wasting moneh

so it keeps wasting moneh …

tell me, how long can this go on?

how long?

like a story of a kid with a very rich dad

dad gave kid moneh

kid wasted the moneh

dad gave more

kid wasted again

dad gave until dad pokai

kid wasted everything

then kid starts to gorek dad’s company (petrollnutz)

until dad’s company is empty

then kid starts to gorek dad’s bank accounts (epf and so on)

now dad’s bank accounts also empty

then kids borrow moneh from ah long (cheeserland)

still not repaying the ah long, while interests pile up

where else that kid gonna get moneh?

from dad itself la !

gorek from dad’s own pocket, gave dad piece of paper say “IOU”

so stupid dad (country/citizens) gave moneh to kid in exchange for that worthless “IOU” (saham nationalay)

kid goes to waste moneh again

please tell me

please tell me how long can this continue?
What do we do when shit hits the fan?
NOTHING. Run? It’s too late by then.

by that time, mahrehshian renggit will have the same worth of zimbabwean dollar

which means, se-keping roti might cost 150 million mahrehshia renggit
mehrehshia is pokai

crime will rise

inflation will shoot up

unemployment will rise

racial strife will rise

gaji? if you are lucky enuf to keep a job, gaji might even go down

there is nothing the gomen can do since it’s pokai

our epf is kosong

so is many of our so-called ‘funds’

all emptied already
it started decades ago

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