Thread: 30K Investment
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Old 11-01-2013, 11:59 AM   #21
GamerSg
Junior Member
 
Join Date: Jul 2005
Posts: 22
We're barely into it, but I believe we have a contender for dumbest comment of the year.

1. CPI figures are fake, but M1 figures supplied by MAS are 100% accurate and reliable.
2. Somehow you can find out about inflation by looking at M1, never mind the size of the economy, the actual prices of goods and services or anything.
3. ..and you can connect it to SGD too. The following is also from the 100% accurate and reliable MAS website:

7 Jan 2000
EUR 1 = SGD 1.7154
GBP 1 = SGD 2.7405
USD 1 = SGD 1.6635

10 Jan 2013
EUR 1 = SGD 1.6010
GBP 1 = SGD 1.9648
USD 1 = SGD 1.2268

My calculator must be broken, I cannot get 75% SGD depreciation.
1) Yes you have a point. Its possible that MAS is underreporting M1 figures, so inflation could be much higher.

2) Fiat currencies have 0 intrinsic value, ie you cannot use SGD for eating/manufacturing/etc... Their only use is as a medium of exchange and store of value, their market value is thus solely derived from the available supply.
More supply = less value = inflation.
Inflation is ALWAYS an expansion of money supply. My definition of inflation is based on austrian economics. Rising CPI is the effect of rising money supply relative to economy.

Ask yourself this simple qsn, if we have growth in the economy, how the hell can prices rise? The whole point of growth and advancement is to reduce cost, increase efficiency and improve standard of living. The entire net benefit of growth is negated by your central bank printing money and inflating away any benefit of growth from your hard work. The biggest tax anyone will pay in their lives is not your income tax, its inflation.

3) Lol, you are comparing one depreciating currency to other depreciating currencies. SGD depreciated less than USD so it appears to have appreciated against USD.
If you use something more constant like gold/silver, you can see how much real inflation is.

XE.com - XAU/SGD Chart

Trend looks pretty similar to the M1 figures, no?
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