Issues in the Malaysian economy. Part 3. Sontoloyo series 90.

1. It's not that we are kaypoh, but we are also bitchy to know how (if one person)many wives he has, how is his collection of patek phillibpe watches, his fleet of Bentleys and how many 5m houses he has.

2. But usually in a clandestine operation like this , there's a cartel, a commission in which there is a boss brahmin

3. The cartel will decide which crony companies to provide soft loans, where to give capital injections and bail outs and which zanny projects to finance.

4. So apart from the issue of a fictional deficit, claimed to be the result of the much noised tatakelola, is the issue of a fictional deficit hiding many nefarious dealings

5. It's the issue of CONCEALMENT or to be more Islamic, the VEIL as it were, hiding many evils

6. Do you see what the bureaucratic brahmins are doing? They are prolonging the lifespan of inefficient and badly run economic agents and funding less useful projects. But money making for them.

7. They are actually sabotaging the economy by allowing incompetent economic agents to drive our economy.

8. By allowing incompetent economic agents to operate, they crowd out the more competent ones.

9. Because of them, our economy is performing below par.

10. The role of these bureaucratic brahmins proved the existence of a deep state not just in MOF but across all ministries.

11. A deep state is the collusion between decision making civil servants and business people.

12. They are in effect, comprador capitalists. Agents for both foreign and local businesses to exploit us .

13. Off with their heads. Cut off their goolies. Declare war on the deep state. Remove them in all ministries.

14. Do account and lifestyle audits. Unleash the SPRM hounds on them.

15. Let me illustrate the issue in another way. It will serve to show my latent scepticism about the deficit.

16. Suppose our revenue is 10b. Suppose further, our liabilities excluding overpaid taxes is 4b.

17. Now, we include the overpaid taxes to the liabilities - our liabilities is now increased. Assume the overpaid taxes as 3b. Our liabilities is now 7b.

18. If our revenue stays at 10b,we have less debt free funds to go around with.

19. If we have only 3b debt free funds, we limit the range with which to spend

20. We have to be very thrifty in spending on public amenities like health care, public transport, public housing etc.

21. Because of the reduced debt free funds, we are going to wear ourselves thin spending on the various public amenities I mentioned

22. We must be conscious of the fact that this state of affairs has been brought because the bureaucratic brahmins have manipulated the concept of deficit and treating the IOU as revenue. You can't postpone indefinitely, not paying the taxpayers .

23. With increased liability, the percentage of debt to GDP will increase. Further you have to pay higher interests.

24. What do you do to compensate the reduced revenue? You borrow additional funds, hiding behind the concept of deficit

25. This a double whammy. You increase national debt and pay additional interest .

26. Eventually, the bubble will burst and the chickens come home to roost.

27. The public will know that you have been dishonest, scamming with the deficit.

28. Reduced revenue will also constraint the government from reinvesting into the economy. As a result,the PPC is pulled backwards

29. So apart from being dishonest and scamming about the 'deficit' which is an ethical issue, there are a number of adverse economic effects.

30. Also we are weary about the possibility of deficit manipulation, opening the doors of bureaucratic corruption and the consolidation of the Deep State.