Have anyone managed to figure out what's hidden in the commemorative notes printed recently?
"A total of 20 million pieces of $50 notes and 75 million pieces of $10 notes - "
This translates into
SGD$50 x 20,000,000 + SGD$10 x 75,000,000 = 1.7 billion dollars.
Singapore might have been using SG50 commemorative notes to mask the fact that they are doing a Quantitative easing program by printing much more money to cover their expenditure of the government. Without directly admitting to an official program, it does not add selling pressure to the Singapore Dollar which is pegged quite loosely to the USD.
The Singapore government rarely runs into a budget deficit throughout its history, as the taxes collected are often self-sufficient.
- 1990: 10%
- 1995: 20%
- 2000: 12%
- 2005: 5%
- 2010+: -0.13
Next month, Singapore Savings Bonds will be issued for the first time to retail investors with an annual close to the average .
Why is there such an urgency to raise money? How bad have the economy deteriorated internally? It is almost impossible to guess from here and I think the worst have yet to come.
At the coming election in 2015 fall/2016, if People Action Party wins I should expect no change to their strategy of stimulating the economy demand/supply via increasing the population. 10 million population in the coming 5 years is a big possibility to prevent a bigger collapse. The same will apply for the other stronger opposition party, Worker's Party. (in other words, too big to fail)