Originally posted by maurizio13:
BUTWhy is it that only Singaporeans are feeling the "harsher" (not discounting that other countries do experience it, but in dilution, based on data from inflation)
effects of the price hike?
Exchange rate policies by MAS of managing the exchange rate within a trading band?
Singapore's inflation is not solely due to agricultural products, if you look at the first post, we have increases in all other sectors (housing, transport & communication,
food, healthcare), only clothing is spared from inflation.
If the reason for increases is due to just higher oil prices thereby affecting tranportation cost, shouldn't the price of clothing increase in tandem with food and
transportation?
Maybe because the mark up for clothing is already extremely high (always more than 100%)
And when those fashion houses come up with new designs and set a high price to it, people will still buy and because designs defer you can't really do an actual comparison.
Originally posted by maurizio13:
If the reason for increases is due to just higher oil prices thereby affecting tranportation cost, shouldn't the price of clothing increase in tandem with food and
transportation?
Transportation is definitely a big cost component for perishable items such as fresh vegetable, seafood and meat stuffs. And being a nettimporter, a rise of transportation cost will have a bigger impact on cost of goods than countries with their own primary industry.
Reasons for the reduction of price of clothing could be
a) Currencies of textile exporting countries such as Vietnam and China have weaken against S$ over the past 12 months
b) More competitions
c) Consumers are delaying or reducing their purchase of clothing due to uncertainty in economic growth.
Originally posted by TCH05:
1) What it means is that the price of PORK in Gemany are selling below the farmer REAL cost and the reason why the farmers can afford do it is because they are getting subsidies from the government who is using the income tax revenue to pay for the subsidies.
2) May I know what are you trying to tell us with that supply and demand curve because in the real world, it can never be a straight lines and since farm subsidy is regulated by government hence it cannot see how you can represented it such simply S&D chart.
It's ok. I'm not going to bother to explain to you the flaws in your understanding of economics. Somehow it seems that you would think all €10,000,000,000 goes to help in reducing pork prices.
farmers in Germany are getting about €10,000,000,000 worth of financial aid from the government each year and that is the reason why the pork prices in Germany can be cheaper than in Singapore
Go confirm with an economist.
Originally posted by eagle:It's ok. I'm not going to bother to explain to you the flaws in your understanding of economics. Somehow it seems that you would think all €10,000,000,000 goes to help in reducing pork prices.
Go confirm with an economist.
€10,000,000,000 is FARM subsidy, not PIG subsidy.
Originally posted by TCH05:
€10,000,000,000 is FARM subsidy, not PIG subsidy.
farmers in Germany are getting about €10,000,000,000 worth of financial aid from the government each year and that is the reason why the pork prices in Germany can be cheaper than in Singapore
You yourself said €10,000,000,000 worth of financial aid is the reason for cheaper pork prices mah.
Originally posted by eagle:You yourself said €10,000,000,000 worth of financial aid is the reason for cheaper pork prices mah.
Yes, I said FARMERS, not PIG farmers.
Originally posted by TCH05:
Yes, I said FARMERS, not PIG farmers.
so you are saying farmers getting €10,000,000,000 worth of financial aid as the reason for cheaper pork prices
Originally posted by eagle:so you are saying farmers getting €10,000,000,000 worth of financial aid as the reason for cheaper pork prices
my discussion with you on the subject is over.
Inflation in Singapore Hits 6.7% for Feb 2008? Singapore is really experiencing GOLDEN period claimed by LKY.
High cost of living, low security, outright exposure of corruption were the causes that brought a dramatic change to the Malaysian political landscape with the Badawi Government losing its majority grip in Parliament.
Singapore may see the same Malaysian political tsunami to sweep into Singapore politics with a new wave of politiicians from the Alternative Parties to clean up the government.
This may happen in the next election now that over the last four years, Singaporeans are faced with a continuous upward trend of high cost of living, absurd governmental insecurity that leaves little space for citizens to excercise our political rights to express our dissent and concerns that goes unheard, and the continued public resentment with this Government in engaging in its own form of legitimised self-gratification with the million dollar payouts to themselves from a treasury that is bloated from an over-taxed population.
interesting headline today in The Today newspaper, "Rich Bear The Brunt".
headline with a purpose.....
Originally posted by redDUST:interesting headline today in The Today newspaper, "Rich Bear The Brunt".
headline with a purpose.....
only the newspapers in SG will print this kind of craps.
so long the workers are drawing salaries from the 80/90s, the rich are still rich.
Originally posted by fishbuff:only the newspapers in SG will print this kind of craps.
so long the workers are drawing salaries from the 80/90s, the rich are still rich.
you can almost read it as a jibe for the have-nots.
KNN...kopi O price oso up !
interesting headline today in The Today newspaper, "Rich Bear The Brunt".
headline with a purpose.....
The State controlled media really think can turn the massive inflation into good news...
They forgot they have no credibility to begin with... i have never bothered to finish their lengthy pieces of propaganda..
I suggest start purchase Business Times and see the commodity contract section...
and using your votes to get the govt to step into a open market system is simply asking for trouble.. later blame govt why impose quota these and tat...
whole day complain this complain that...
Originally posted by sbst275:I suggest start purchase Business Times and see the commodity contract section...
and using your votes to get the govt to step into a open market system is simply asking for trouble.. later blame govt why impose quota these and tat...
whole day complain this complain that...
We wouldnt dare dream of govt stepping in. We would be very grateful if they stop overcharging us and making exorbitant profits on essential services such as utilities, convervancy and transport for a start.
Originally posted by elindra:
Those are just theories and will not happen irlLess subsidies does not mean the government will reduce the tax on the products
Where demand way surpasses supply you will see prices spiking up like crazy. That is what is happening to all the cash crops right now.
Ermmmm......
Isn't it a basic economic phenomenon (when demand outpace supply, prices will rise to equilibriate to market clearing price)?
This basic law still fails to explain why our inflation is higher than other countries.
Why is it that our inflation is higher than the other countries I posted in page 1?
Would you accept the explanation that the increase in housing prices was due to the recent government's policy in immigrants?
The increase in present immigrants and future immigrants led to a shortfall in housing, thereby leading to prices of housing to increase.
The increase in immigrants also resulted in an increase in the money supply thereby exacerbating the effects of inflation (transport & communications,
food and healthcare).
Taiwan's CPI 3.89%
http://eng.stat.gov.tw/point.asp?index=2
New Zealand's CPI 3.2%
UK CPI 2.5%
http://www.statistics.gov.uk/cci/nugget.asp?id=19
Germany's CPI 2.8%
France's CPI 2.8%
http://www.insee.fr/en/indicateur/indic_conj/indconj_frame.asp?ind_id=29
Ireland's CPI 4.77%
http://www.cso.ie/statistics/cpi2008.htm
Japan's CPI 0.7%
http://www.stat.go.jp/english/index.htm
Malaysia's CPI Feb 2008 ( year on year) was 2.5%.
http://www.statistics.gov.my/english/frameset_cpi.php?file=cpifeb08
Originally posted by elindra:The problem in SG that we see crazy increases in prices is because the price increases over the years have been absorbed by the suppliers. However, these companies can no longer absorb the price differences and when they do a price increase, of course we will see a larger spike in price.
Are you trying to tell us that suppliers withheld price increases in the past and now increase prices to equate to price levels in the market?
Does this mean that suppliers were making losses before and are trying to recuperate their losses by increasing prices excessively?
Do you have any evidence to substantiate that the price increases by suppliers are above past normal increases?
Or are you speculating for an explanation for the economic doldrums that doesn't implicate the P4P government?
Like I said before other countries seem to suffer less inflation compared to us, maybe you can provide an explanation for inflation in housing, healthcare
and transport & communications too.
Try to provide an explanation why other countries suffer less inflation when compared to us.
Originally posted by sbst275:
do you know the tax rate in Malaysia is 28% just to feed for the subsidy you are pushing the PAP for
Is the tax rate of sub 20% in Singapore beneficial for the common man on the street?
The loss of the 8% top tier tax bracket in Singapore resulted in an increase of 7% GST, it's more like a deranged Robin Hood robbing the poor
to give to the rich.
The rich benefited from the 8% reduction in taxes, while the poor contend with 7% GST.
Originally posted by TCH05:
1) What it means is that the price of PORK in Gemany are selling below the farmer REAL cost and the reason why the farmers can afford do it is because they are getting subsidies from the government who is using the income tax revenue to pay for the subsidies.
2) May I know what are you trying to tell us with that supply and demand curve because in the real world, it can never be a straight lines and since farm subsidy is regulated by government hence it cannot see how you can represented it such simply S&D chart.
1) Whether the REAL cost is above the global market price or not, is irrelevant to the discussion about the price of pork, because only one price clears the market
it's the global market price for pork. If the price of pork in the global market is $30 per kg, the pig farmer can only sell at $30 per kg to clear the market. If the
government removes the subsidies totally, the REAL cost of production of pork ends up being $100 per kg.
Do you think suppliers will pay $100 per kg to the pig farmer when they can source for cheaper alternatives in the world market at $30 per kg?
Subsidies is an act of protectionism, because the government deems that the particular industry is critical to it's future survival and self sustenance.
2) Whether it's curved or straight line, the basic principles of demand and supply is the same. Maybe you can tell us what purpose be it if the demand & supply is
not a straight line?
Originally posted by TCH05:
Transportation is definitely a big cost component for perishable items such as fresh vegetable, seafood and meat stuffs. And being a nettimporter, a rise of transportation cost will have a bigger impact on cost of goods than countries with their own primary industry.
Reasons for the reduction of price of clothing could be
a) Currencies of textile exporting countries such as Vietnam and China have weaken against S$ over the past 12 months
b) More competitions
c) Consumers are delaying or reducing their purchase of clothing due to uncertainty in economic growth.
Do you have the figures to substantiate your point about transportation being a major cost component?
Or are you just pointing in every direction you can except the P4P?
a) Since you say that currencies from these countries have weaken against the Singapore dollar, shouldn't the price of our foods be cheaper too as we also
import food from these sources.
b) You mean there is no competition in the food & agricultural industry? I am flabbergasted.
c) I thought according to the P4P Ministers, they said that the growth for Singapore in 2008 is 4% to 6%.
Your statement also contradicts with your fellow P4P supporter elindra who said:
"And when those fashion houses come up with new designs and set a high price to it, people will still buy and because designs defer you can't really do an actual comparison."
I guess what all you guys are doing is just pointing the finger in all directions except the real cause of it all.
You guys are in denial.
Originally posted by kilua:interesting headline today in The Today newspaper, "Rich Bear The Brunt".
headline with a purpose.....
The State controlled media really think can turn the massive inflation into good news...
They forgot they have no credibility to begin with... i have never bothered to finish their lengthy pieces of propaganda..
The usual pro P4P propaganda from the government controlled media mouthpiece.
Originally posted by kilua:
We wouldnt dare dream of govt stepping in. We would be very grateful if they stop overcharging us and making exorbitant profits on essential services such as utilities, convervancy and transport for a start.
Temasek needs to show a good profit at the end of the year to make itself look good.
With the losses in some of our overseas investment, where else can they look for to increase profits to cover the losses and still show healthy profits.
According to some pro P4P supporters, they say that Temasek don't even belong to Singaporeans.
So why would a profit motivated company bother about Singaporeans who has no connection with it.
Sometimes I wish Singaporeans would just wise up.
Originally posted by maurizio13:
Ermmmm......
Isn't it a basic economic phenomenon (when demand outpace supply, prices will rise to equilibriate to market clearing price)?
This basic law still fails to explain why our inflation is higher than other countries.
Why is it that our inflation is higher than the other countries I posted in page 1?
Would you accept the explanation that the increase in housing prices was due to the recent government's policy in immigrants?
The increase in present immigrants and future immigrants led to a shortfall in housing, thereby leading to prices of housing to increase.
The increase in immigrants also resulted in an increase in the money supply thereby exacerbating the effects of inflation (transport & communications,
food and healthcare).
Taiwan's CPI 3.89%
http://eng.stat.gov.tw/point.asp?index=2
New Zealand's CPI 3.2%
UK CPI 2.5%
http://www.statistics.gov.uk/cci/nugget.asp?id=19
Germany's CPI 2.8%
France's CPI 2.8%
http://www.insee.fr/en/indicateur/indic_conj/indconj_frame.asp?ind_id=29
Ireland's CPI 4.77%
http://www.cso.ie/statistics/cpi2008.htm
Japan's CPI 0.7%
http://www.stat.go.jp/english/index.htm
Malaysia's CPI Feb 2008 ( year on year) was 2.5%.
http://www.statistics.gov.my/english/frameset_cpi.php?file=cpifeb08
1) increasing population->increase demand->increase prices.
2) no natural resources->everything imported->naturally higher prices
3) Biased reporting. Please post the countries that have HIGHER inflation rate than singapore as well.
4) reverse engineering of facts. You cannot quote inflation rates and then start looking for problems. Problems emerge as well when a country suffers from DEFLATION. But I don't think you'll be outraged when prices come down, would you? What is good for the common man is not always good for the society.