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Sakmongkol ak 47

Saturday, 27 October 2012

Vote for UMNO means more misery and enslavement

The battle for freedom, democracy and the triumph of the common man, must be won over and over again. That is why we must repeat, for the benefit of new readers, our agenda to replace the corrupt UMNO government. When Dr Mahathir implored the public to continue voting and supporting UMNO, the road he offers will bring Malaysians more misery and enslavement.
What has UMNO done while being government? Each year since 1988, the government has been spending more money that it earns. That was just a year after Mahathir emerged victorious in the UMNO civil war of 1987. Since then, contrary to what Najib said upon ascending the throne, the government has got bigger and moving towards more command economy and concentration of power.Najib now has more similarities with the Kim's of North Korea than Obama or western democrats.
Concentration of power, if Malaysians care to remember is the preferred way of old aristocracy. Believers in aristocracy and the dictator share the same faith in the rule of command. Since 1987 to 2003, it has always been Mahathir commands, you follow. Najib is just continuing what the old man has laid down.
It has borrowed increasing larger amounts. Next year, government indebtedness is going to reach almost the ceiling of 55% of GDP. If we include the contingent liabilities that it has been hiding from the public, government indebtedness has exceeded 55%.
The country is going bankrupt if this continues. The source and reason for this is UMNO-because it has not acted responsibly as a government. It’s time we remove the source and that means, we must kick out UMNO and its partners. This is a cocky government that contemptuously dismisses and ignores the legitimate concerns of the majority.That cockiness is reflected for instance by a stupid statement by a minister that Singapore borrows more than Malaysia forgetting that Singapore has larger cash reserves and is able to pay.
The above explanation would of course be a simple sales pitch. That kind of reasoning would be typical and much liked by UMNO sponsored cyber writers. It follows from our earlier explanation, that UMNO prefers appealing to the emotions. That would require as we said, self-praise and emotional bonding. Simply link any misfortunes to UMNO including even when the chicken in the kampong road gets run over by the UMNO van. UMNO is the source of all evils.
That approach assumes people are just unthinking digits something which UMNO people are accustomed to thinking. We differ from them. We respect people and regard them as capable of thinking and reasoning. If we convince people by way of reasoning and thinking, their allegiance to us stays firm. That will explain why the 12% swing of votes for the opposition in 2008 will not be cancelled out greatly despite millions of bribe that UMNO /BN have doled out. Even if they recover 5%, UMNO/BN will lose.
Let us now take our analysis a step further. What has the government achieved through increasing indebtedness and spending? By the way, that growing indebtedness means taking away large chunks of the economy through taxes, contributions, regulation fees, licenses, royalties, premiums etc.
What the government is doing is to enlarge its involvement in the economy through indirect means- through licenses, quotas, regulations and so forth. What it has done is to execute so many transfer programs extracting money from A to make grants to others. What it has done and hasn’t revealed to us is to cater to special interest groups- contractors, chosen individuals, IPPs, so forth.
What is UMNO’s hidden agenda by encroaching ever deeply into the economy? What is has done insidiously it to take Malaysians down the road to serfdom. This is especially so to Malays who are led to believe that responsibility of taking care of themselves rest with UMNO. Let us state at the onset- the UMNO idea is simple but FALSE- the primary responsibility lies within us.
The way UMNO handles the economy is a sure recipe for creating a society consisting of a select group of super-rich Malays and a majority consisting of Malays fighting to make ends meet.
Mahathir has confirmed the road to serfdom for Malaysians and Malays. UMNO and Mahathir especially have created a society consisting of a few millionaires and billionaires while more than 8.5 million Malays live with a monthly income of RM1500 and a further 3.2 million non-Malays living on the same monthly income. 40% of the population lives under that same monthly income level. It’s the direct result of the Mahathir’s way of managing the economy and now Najib is continuing the same thing.
And Najib is trying to pull wool over our eyes. His early promise of downsizing government was a lie. When he said the age of big government is over, that hasn’t turned out to be true at all. Government has grown bigger ever since as reflected by its growing indebtedness and deficit spendings. His NEM- new economic model, which he takes to mean market-driven affirmative action remains- you use discretion to select who will get rich or poor. He hasn’t got anything new to offer the Malaysian public.
What should be the agenda for the majority of us? We must move towards a creating a society that embraces free enterprise where the bulk of our economic activities are organized along voluntary cooperation, competition and limited government. The idea of big government is a threat to our freedom most noticeably to the destruction of personal responsibility. The responsibility of taking care of ourselves rests primarily with us. Relying on the government which then justifies its totalitarian inclinations will serve to enslave us.
Actually UMNO is a closet communist. Old school communism means state ownership of the means of production which can be sustained only through central planning. The two main features of communism or a totalitarian state are state control of the means of production and central command.
In modern terminology- it means control of sources of wealth or wealth making resources either directly or through business proxies/cronies and creation of monopolies through the.
The results are the same as in direct communist rule of the old school- control of the economy through a network of a cabal of cronies and the gradual enslavement of the people. Mahathir’s and Najib’s economic policies are a sure recipe for the road to serfdom.


Anonymous,  27 October 2012 at 09:37  

Singapore borrows more than Malaysia!

Of course this is true, the guy must be given bonus marks for genius.

The Singapore Government does not need to finance its expenditures through the issuance of goverment bonds.
Singapore Government Securities (SGS) were initially issued to meet banks' needs for a risk-free asset in their liquid asset portfolios

The guy knows his audience, and it is both cynical and insulting.

bruno,  27 October 2012 at 10:10  

The only time regimes can stay in power for an extended period of time is when its citizens are surpressed.Surpressed in a matter of ways in terms of economic deprievation,political persecution,controlled press freedom and others using the draconian internal security laws.

It is just a matter of how the authorities interpret the two sets of laws.Out the ISA,in another law different in name only.It is like throwing away the blackened pot,only to bring in the blackened kettle.

Anonymous,  27 October 2012 at 10:30  

Ordinary Malays are too insecured to come out of the ' protected ' and confort zone to change and move forward.

Liberating the ordinary Malays' potential will have a significant impact on the economy with increase productivity, competition and real growth.

Anonymous,  27 October 2012 at 10:50  

Mariam Mokhtar had a good comment on why UMNO failed with NEP and why it will continue to fail - they just no good developing human resource.

The Malays don't lack capital anymore. Its all about skill development and honestly not only must Malay walk away from UMNO for that, they have to go global - take the best from everywhere. Its not about Mara accepting non-Malay students, its about Mara accepting teachers and students from the WORLD...

walla 27 October 2012 at 10:53  
This comment has been removed by the author.
walla 27 October 2012 at 17:08  

My humble apologies to 09:37. Seems my time is coming up.

Meanwhile here's the interesting paper on the effect of government debt on growth:

It suggests the following:

"While temporarily desirable in war and recession, large deficits potentially cause two separate but related problems — shifting the bill for financing the current generation’s consumption to future generations and crowding out of private investment.

How does a high debt-GDP ratio slow growth?

Higher debt ratios eventually crowd out investment, as holdings of government debt replace capital
in private portfolios.

The lower tangible capital formation reduces future income. To the extent the reduced capital formation slows the development and dissemination of new technology, this effect will be amplified.

Every dollar borrowed requires future interest be paid, whose present discounted value equals the debt. So future taxes must go up to cover the interest unless future spending is cut.

The prospect and then reality of higher tax rates, plus increased uncertainty about future fiscal
policy, slows growth and also raises the specter of higher inflation eroding the value of the government debt and/or a financial crisis, which might sharply raise interest rates."

Thanks and maaf again.

OneMalaysian,  27 October 2012 at 18:30  

Dear Sakmongkol

You are right about that brainless minister who said the Singapore government’s debts are higher than ours. Malaysian government debt is about RM450 billion, or about 55% of GDP, before counting another RM100 billion in guarantees to GLCs, that is, the contingent liabilities. The Singapore government explains its debt position this way:

“For a country like Singapore which does not borrow to spend, the use of gross debt figure alone may not provide an accurate or meaningful representation of the country’s net liabilities or more importantly, its fiscal strengths. For example, the level of Government debt outstanding at S$312b (December 2010) or 103% of Gross Domestic Product (GDP) appears large on its own. However, it does not take into account the ability of the Singapore Government to service the debt through factors such as a strong asset position, robust economic growth, and prudent macroeconomic policies. Proceeds from the Singapore Government’s borrowing are invested. The Government’s assets include investments in the Government of Singapore Investment Corporation and the Temasek Holdings. The investment returns are more than sufficient to cover the debt servicing costs. The Singapore Government also has a strong balance sheet, with assets well in excess of its liabilities.” Singapore Accountant-general’s report July 2011. (Emphasis mine).

Can you see the difference of Malaysia versus the Singapore debt positions? This UMNO government borrows to spend, whereas the Singapore government borrows to invest for a return higher than what it pays out in interest. In other words, the Singapore GLC’s are well run and gives good returns, and the market is prepared to lend the Singapore government money at low interest rates (lower than investment returns) because the Singapore dollar is strong and the government is responsible and well run. We cannot hold a candle to Singapore when we have such intellectually challenged ministers in the cabinet.

Anonymous,  27 October 2012 at 20:08  

Perhaps Bruno could teach Sak, Wall, us the bloggers, guests, to say these numbers at the speed of lighting and Eureka the precise date of GE 13. Enjoy keeping the mind sharp to break the
goons’ codes and modes to vote for real changes by staying more united.

2001 林子祥 數字人生
30624700 30624770 534202 13942 43140624 30624700 30624770 534202 13943 13424……
30624700 30624770 536202 13942 43160624 30624700 30624770 534202 13942 431606243
02320232 06460646 08780878 05150515 02420242 06960696 02720272 02320232 06460646 08780878 05150515
02420242 06960696 02720272
30624700 30624770 ((534202 13943 13424)輕聲)by benilam.

Read about a popular singer singing for LCW's big day, so just did a quick search, this masterpiece is incredible ! Enjoy ;)

OneMalaysian,  27 October 2012 at 20:12  

Dear Sakmongkol

“The battle for freedom, democracy and the triumph of the common man, must be won over and over again.”

Whenever you say something like that it depresses me. I do not have another 55 years to see that come true, and neither have most adult Malaysians. It must come quite soon.

We do not know what real freedom is like until we go overseas to see for ourselves how good governments behave. Even in a place like Hong Kong, Filipina maids have the freedom to march peacefully through central Hong Kong to protest against employment policies. Maids, not Hong Kong Chinese nationals, mind you. No water canons, tear gas or razor-bladed barricades await them. Of course in places like London or Washington DC, such rights are normal. They could burn the effigies of their president or PM without being arrested. Here if you so much as stamp on the PM’s picture you can get arrested and handcuffed because the PM is a demigod like North Korea’s late Dear Leader, and not the people’s highest public servant as he really is. He is to be revered, never belittled.

Yet our basic rights to assemble and to associate are guaranteed under the Constitution. But this government does not respect the Constitution. So our basic freedoms are denied to us. Without those, how can we possibly have democracy? Democracy is not just an opportunity to vote in a rigged election once every 4 or 5 years. Democracy means that the people have an unhindered right to collectively choose, without coercion, a government that serves them, not lord over them. Ministers and the PM telling the people to be grateful for what the government has done for them always perplex me. Grateful? We put them there to serve us using public funds raised from our taxes. Why should we feel grateful for receiving benefits paid for by our own money?

A very large portion of our population, the poor, who depend on government handouts and subsidies, cannot possibly appreciate esoteric concepts like freedom and democracy. They live literally from hand to mouth. We must first liberate them from their desperate condition before such terms can have meaning to them. This UMNO government wants to continue to enslave, not free them to think. That’s why our only hope lies with the Pakatan Rakyat alternative. I am not sure if these enslaved Malaysians have the courage or ability to make that choice come GE13. Our future lies in the hands of these Malaysians.

bruno,  27 October 2012 at 21:20  

In case regimes and authoritarian gomans do not get it.The following is a good example.

A long time ago,in fact a very very long time ago,the USA,one of the planet's most powerful nations in terms of firepower,economic power and wealth was the planet's biggest creditor.Todat it is the planet's biggest debtor.

In case the planet's regimes and authoritarian gomans still do not get it,and ask why feel free to ask the Umno.As the Umno is steering the country into the path of the Pigg's nations.

Anonymous,  27 October 2012 at 23:25  

.....'It has borrowed increasing larger amounts. Next year, government indebtedness is going to reach almost the ceiling of 55% of GDP.'....

But this doesn't alarm Najib and friends at all. If anything, it emboldens them knowing full well they don't need to explain the debt to anyone. New borrowings and new taxes will have to pay old debts, ad infinitum. If and when PR takes over Putrajaya it is this mountain of debts that will give it the biggest headache. PR can send as many BN people to Sungei Buloh Welfare Home for the billions lost but it will still not get one sen from these malevolent creatures.

Hard times are coming no matter what Najib says in his 360-page book,'Meneroka Perubahan Memperkasa Pencapaian'. Big dreams, brave words, giant hopes, but still I find it thoroughly scary if Najib and friends believe even half of what he says in the book.

For now never mind, since the rakyat have always counted for nothing in UMNO's scheme of things, not of course until a General Election is in the offing, then some stale crumbs with lots of fanfare. So while UMNO's set of beautiful people prance and prattle when given the slightest excuse to have a good time, let us compare real good times with real illusion, excuse the oxymoron.

Good times: in January 2006, on Allan Greenspan, Chairman of Federal Reserve who had retired on 31st Jan 2006: ‘….During much of his 18½ years in office America enjoyed rapid growth with low inflation, and he successfully steered the economy around a series of financial hazards.’…..

Illusion: in January 2006; ‘….Part of America’s current prosperity is based not on genuine gains in income, nor on high productivity growth, but borrowing from the future’…..

What is wrong with borrowing from the future, one may ask, after all like the genius in the Cabinet stated that Singapore borrows more than Malaysia, and they are doing more than fine. Nothing wrong if, as Dato’ has stated, there is a mountain of real cash piled up somewhere to pay for the borrowings at will. Everything wrong if the borrowing is done by making real promises to pay from an illusionary mountain of cash piled up nowhere, and the borrower still feels he has created real wealth from thin air - something for nothing. But illusions exact a price. As recounted by someone of a warning by Ludwig von Mises, an Austrian economist of the early 20th century that, “ It may sometimes be expedient for a man to heat the stove with his furniture. But he should not delude himself by believing that he has discovered a wonderful new method of heating his premises.”

Pray Najib and his advisers, especially Nor Mohamed Yakcop, do not for even one moment believe that they have found a new method of heating their super-cold offices in Putrajaya with their bond certificates; overheating can burn Putrajaya down. Don’t burn it down because the next occupants need the space to create real wealth.

Real wealth means strong gains in personal incomes and not just increases in house prices and credits.

three trees,  28 October 2012 at 09:48  

Dato Sak, I have this nightmare,come PRU 13,BN win again,but then I don't have another 55 years.I am from the LOST Generation,we lost everything to the cronies put up by the man who can walk on water.He stole everything from us more than 100 billions .When we graduate we have so much hope for ourselves and our belove nation.But now everything is gone,kaput.I really don't know how 40 percent of our population survive on RM 1500 a month,I have income higher than that but after slogging thru 30 years of blood sweat and tears and putting my children tru university and now on the verge of retirement I felt impoverished by all this mismanagement of our country.

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