Bleak economy and fiery politics

Blogging is hard. It's been a few days and I couldn't think of anything interesting to blog about. So I'm jumbling things I can think of.

First of all, I am going to answer my friend's question based on economy. Don't get me wrong. I am just trying to answer them based on the knowledge I have. And fyi, I have never taken the Economy subject when in Secondary school. So treat this like an exam to me. You economy experts out there be my teacher. Be sure to correct my wrongs.

"Based on the fluctuating global economy now, raising the interest rates could dampen growth further."

This is because a higher interest rate will encourage people to store their funds in the bank. It will discourage the people from exercising their purchasing power and cause the economy to look bleak. People will spend on what they need only, instead of what they want. And industries that thrive on producing goods which the people wants will experience loss. 

"A stronger currency would be a good monetary policy option to combat inflation."

As we all know, the global economy is in a big crisis. Well... I am not too sure actually but from the reports or news I've read, it is in a big mess. Inflation means the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling (I got this definition from www.investopedia.com). A stronger currency would reverse inflation. A stronger currency will result in cheaper exports and increase of purchasing powers. But it also pose a potential danger to exporting countries. A country with stronger currency means the exports are more expensive than the other competing countries with weaker currency. This could very well damage the income from the exports of that country. This relates to the last statement.

"Malaysia exporters have resisted a stronger currency as they worry that it will erode the competitiveness of their exports."

A stronger currency will cause the exported goods to be more expensive to the importers. And so, Malaysia exporters are resisting a stronger currency as to maintain a competitive stance against exporters from countries with weaker or near similar currency. This way the exports of Malaysia will be more guaranteed. If Malaysia's currency were to grow stronger, the importers would be importing goods from other countries with cheaper goods instead of importing from Malaysia.   


And then we move on to politics. The hot topic nowadays is the sad fate of GLCs (Government Linked Companies). Tajuddin is accused of plundering the funds and is being sued in court. But out of nowhere, all GLCs are to drop all claims. A jaw-dropper, I know. Now the GLCs have to settle the large debt by themselves. If you guys didn't know, Najib and Rosmah were in the court complex for interviews. I read a comedic sentence from Malaysiakini.com at here.

"Karpal described Rosmah as very tense when asked questions and at at one point, she said, 'Do not bully me, Mr Karpal.'"

LOL!! I don't know who dares to bully her but I know for sure that I don't have the guts. Her fists adorned with diamond rings pack a punch. 

Ezam with his blazing remarks about how rude the news portal are towards JAIS' action at DUMC. Everyone should be careful with what they say. If you're too rude, you'll be the target of the witchhunt.

Chaos... 2 more weeks to a very important day. How much more chaos can erupt in this period of 2 weeks time?

How many can see beyond trivial matters?