Lim Guan Eng put the most spectacular spin on the United States Treasury’s move to put Malaysia on its watch list of potential currency manipulators.
According to him, all countries with total trade above US40 billion a year with the US are assessed by its Treasury for closer inspection.
However, India’s trade with the US amounted to US74.3 billion for the financial year ending 2018, and yet, the US treasury went right ahead and removed it from the monitoring list.
TANJUNG MALIM: Lim Guan Eng put the most spectacular spin on the United States Treasury’s move to put Malaysia on its watch list of potential currency manipulators.
Yesterday, the man some say modelled as Nobita for creators of popular Japanese series Doraemon, claimed the inclusion of Malaysia wasn’t bad as it reflected on the country’s economic strength and role in the global arena.
“All countries with total trade above US40 billion a year with the US are assessed by the US Treasury for closer inspection.
“Malaysia is included in the monitoring list due to two factors. Firstly, Malaysia has a trade balance with the US of more than US20 billion a year. Secondly, Malaysia has a healthy current account surplus of more than 2% of its GDP,” he said.
Strange, considering that India’s trade with the US amounted to US74.3 billion for the financial year ending 2018, and yet, the US treasury went right ahead and removed the bustling Asian economy from its monitoring list.
China, however, was retained due to its currency being “persistently weak,” which probably explains the real reason the US put Malaysia on its radars.
And that’s not a good thing.
Reports by established ratings corporations strongly indicate that our economy is blowing a “debt bubble” that’s rapidly expanding against the GDP due in part to massive investor pull-outs from portfolio and direct investment markets.
It was only on the 13th of May 2019 that Morgan Stanley Research forecasted the slide of the ringgit against the greenback compared with current levels for the whole of 2019.
Days earlier, UOB Research revealed that Malaysia had recorded a RM11.2 billion portfolio outflow in April that comprised RM9.8 billion in debt securities and RM1.4 billion in equities.
And that’s discounting the 7.6 per cent soar in the national debt and the RM300 billion outflow from the stock market since Pakatan Harapan took over government.
So you see, Guan Eng isn’t really telling you the truth, which is hardly surprising, given that its coming from a man who tells you one day that the national debt is RM1 trillion, another day that its RM725.2 billion before coming back all over again to the RM1 trillion bullshxt.
Fact is, the US put Malaysia on its watch-list simply because its treasury is cautious of the sudden plunge in the country’s portfolio driven investments, the pathological weakening of its ringgit and the questionable manoeuvres by several government linked entities, including Petronas, Permodalan Nasional Berhad, Tabung Haji, Felda and Felcra.
And let’s not forget the RM1.4 million that Bank Negara helped ‘smuggle’ into Clare Rewcastle Brown’s London account by misleading the United Kingdom central bank.