31
Oct
Posted by KH » 1 Comment »
Mahathir: Quantitative Easing is Printing Money
Tun Mahathir Mohamad recently blogged on Quantitative Easing under his entry entitled – QE II. In his first sentence, he explained that QE II is not the short for Queen Elizabeth II or does it has any relationship with the retired QE II Cruise.
^ Tun Mahathir Mohamad is Chedet
“3. What is quantitative easing? It is about printing and issuing money to overcome a financial problem. Lately Britain has printed 75 billion pounds to help distressed banks and others.”
He sarcastically commented that Malaysian would be damned if Malaysia were to adopt QE for our economic problems.
“5. We would be condemned. We would be told that the Malaysian economy would collapse. They would make dark predictions about black markets in dollars as the Ringgit would be useless. It would be rejected. It is not money!! etc. etc.”
It is funny to me how Tun Mahathir back-fired the West on their so-called “conventional wisdom”.
“8. We were told that the best way to handle a financial crisis was to let our banks and businesses go bankrupt. How that would help I do not know. What I could see were people being thrown out of jobs and many number of social problems. But that was the “conventional wisdom”. Why are the great institutions not advising Western Governments to let businesses go bankrupt?”
He commented that the West are now in deep state of denial and is predicting plenty of long cloudy days ahead.
“13. The great financial crisis will be with us for a long time. Even when it is resolved the aftermath will see slow recovery for the giants of the west. They will find difficulties in returning to doing real business of producing goods, providing services and trading.”
– Chedet
Previously, Tun Mahathir referred US dollars as toilet paper.
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