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Showing posts from January, 2009

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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

EPF vs KLCI - Part 2

I'm continuing from where I left last year regarding this topic ..... links. No doubt, EPF is the safest bet for our retirement besides FD, which is why it is necessary for us to save some money in EPF. So this means that EPF is necessary.....only as retirement fund in which I would assume it will not be sufficient as well. The debate on EPF and KLCI is actually started when our DPM announced that EPF contribution by employee can be reduced to 8% where the extra 3% can be use to spur the economy ....as if the 3% would make a different. Unless your annual income is more than RM75k, reducing to 8% only benefits the government. You only pay more income tax by reducing it to 8%. Take the following scenario:- Annual income = RM55 000 a) EPF contribution (11%) = RM6 050 (max income tax deductable capped at 6k) b) EPF contribution (8%) = RM4 400 (RM1 600 extra is taxable) From the above scenario, by just changing the EPF contribution 3% less, you will have RM1600 extra, which is taxable,...

Boycott American goods to save Palestine? Think again

Malaysia former PM, Tun Dr. M urge the Malaysian to boycott US goods ( source ) in order to save Palestine. So what is your take for this? Well, it is always very easy to such call.....and with his influence as the PM in Malaysia for the past 20 years before the current PM, Abdullah Badawi, I'm sure some will follow suit. There are those two face bloggers or internet users who might have call for the same action via blogging, Facebook. Little do they know that Google, Facebook also from the States. And we will actually see some of them at Starbucks, McD etc. If Dr. M call for the boycott action, is he going to lead by example first? Will he stop using Google? Is he going to stop blogging? Because if he voice it out, he should lead by example. Don't use laptop or PC. Those CPUs are American products. Google also from the States. Next, if he has a Facebook account, he should stop using it totally. For those who are wondering whether to follow or not.....think again. First of all,...

Year 2009 - To Spend Or To Save

It's been about a month since I last update this blog as I was busy with my work, my other blogs as well as planning ahead for Year 2009. Year 2008 ended with stock markets all over the globe almost collapse (I'm using the word almost since we never really know whether we have reached the bottom or there's still downside risk). Then the word RECESSION, STAGFLATION, INFLATION, VSS, etc started to creep out and people have FEAR in them. Why FEAR? We do not know how long this financial turmoil will last and how long it takes for the business to see the bottom or recover. We can never know. No one in the world will know about it except, well, GOD, of course. Domino effects will be seen as one business will cost another business to collapse or successful. Once a business is affected, it will affects others as retrenchment and major cost cutting will take place in other business. And this will continue to go in a loop until an equilibrium is achieved, that is when the global econ...