From: zxa5@po.CWRU.Edu (Zulfakar Aspar)
Newsgroups: soc.culture.asean
Subject: Re: VAlue of money
Date: 8 Jan 1993 21:47:28 GMT
Organization: Case Western Reserve University, Cleveland, OH (USA)
Reply-To: zxa5@po.CWRU.Edu (Zulfakar Aspar)
NNTP-Posting-Host: slc5.ins.cwru.edu


In a previous article, othman@ntrc25.ntrc.ntu.ac.sg (othman EEE/Div 4)) says:

>Zulfakar Aspar (zxa5@po.CWRU.Edu) wrote:
>: 
>: This is not one of the main reason the BN won the election. However, I think it
>: influenced educated people decision.
>
>I think you are wrong here. The really educated ones, i.e. those who are
>successful financially, put their money in property or overseas.
>
>: 
>: >It strikes me as though the billions actually come from my savings. It is a
>: >licence to steal/tax people's money efficiently. But is it fair to the majority?
>: 	Could you explain this?
>
>If the value of your saving/salary becomes less, someone must have taken it
> then? For example if your saving is $100 ringgit which is originally 
>equivalent to 25 US$, what happens if that $100 ringgit become only 20 US$?
>5 US $ has gone missing.
>	Who has the power to decide the value of the money if not the guy who
>create it in the first place, i.e. the government? After all money is just
>a piece of paper, not a physical object.
>
	Of course government has the power to control the currency but as 
you know it cost alot to maintain it high in the market.  However, the daily
value of the currency is mostly determine by the market demand.

: 
>: 
>: >Those who borrow a lot will gain during a devaluation because property prices
>: >remain high after all physical objects and imports will be priced realistically.
>: 	And this?
>
>The rate at which you pay your mortgage is the same so if the value of money
>has dropped, you are actually paying less, but the house/car remains the
>same, and you are using it. And you'll notice that the value of the house/car
>will actually go up because you will not accept the original price since 
>money buys less physical objects than before(actually it is also due to the
>larger number of people who have more paper money to offer for physical 
>objects). 
>
>: 
>: >Singapore has chosen the strenghtening of its currency. the same with Germany.
>: >Britain tried to do it but it is too expensive for them becuase it has too much
>: >government deficit.
>: >
>: >The ringgit starts to drop again in liew of the current royalty battle. Could it
>: >be the government spending money campaining?
>: >
>: >I can bet that during election time, the ringgit will drop in value again,
>: >with the government printing more money.
>: >
>: >
>: 	And I bet the ringgit will increase at lease slightly when a big
>: government company is opened to public like the TNB.
>: 
>Thanks for this tip. I missed it completely. Now I can explain the ups and
>down of the ringgit. You know how important it is for me here in Singapore
>who has to send money to Malaysia regularly.

>
>As a tip, DCA(airport) has just been commercialised but its shares are not
>yet offered to the public but it will.
>
>At the moment the ringgit is dropping in value. The value will only go up
>if DCA were sold to the public.
>
	I think you have a wrong idea here.  There are  other factors to
be consider such as how big the company and how important the service. Then
we have to consider the stock price. You know what I mean if you are smart.
You can just compare the DCA and TNB or TELEKOM.  After all, I heard a lot
educated man know about it!

	---> Zulfakar Aspar
	     Case Western Reserve University