Thursday, 9 June 2011


Ding is concern that the "recovery" on our economic is stalling. With current economic turmoil, the element of catch up in Foreign Direct Investments are just Memorandum of Understanding and the damage of the previous two years economic meltdown wasn’t half repaired and the country was inflated with pretend borrow money and most of the growth of the last two years came by way of individuals and government borrowing not as a result of earned wealth.
We probably could argue that a substantial part of the past decade growth has been artificially pumped up by borrowed money, meaning that those "good times" were actually an illusion.

Now, the result of this will be a rocky growth. Our Government has spent from tomorrow’s earnings by giving people pleasant living yesterday and today and therefore that money is not available to create growth.
My argument that our monetary system is based on credit or debt and without constantly continuing issuance of debt, the whole thing falls apart. Our system of fractional reserve banking gives commercial banks a license to literally create money out of thin air and then charge interest on the money they created. Therefore, fractional reserve banking is the cause of spiraling debt. 
We can’t effort to see the next generation inherited a national debt and deficit of unimaginable proportions and too much subsidy for today living –political and economical stability and now at whatever cost our government must reduce or imposed cut on unnecessary subsidy or next few years our country's economy will never be the same again. The public sector will never be as big again. The Nation will never be as generous again. Things are going to get much worse before they get better or never get better. We must act or we are copying the mistake done by spoiled Greece, Ireland, Portugal or Spain peoples and their mistake is inevitable to this beautiful nation.

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