COVID-19: Heng Swee Keat to announce third round of support measures in new ‘Solidarity Budget’
Stock market will receive another lifeline on Monday!
It’s gonna be another drawn down from the reserves.
And if Covid-19 persists longer, it will be 4th, 5th, 6th …. where does it ends?
Let’s hope Covid-19 will end soon.
Heard from non-reliable source that our Government has reserves of trillions and trillions of SGD, so no worries! Again, the one who said this is non-reliable Singaporean source. Our PM already expressed his concern, but typical Singaporean is always optimistic.
Not that optimistic is not good, but there are two kinds of optimism. 1) Cautiously optimistic preparing for the future and 2) Blindly optimistic and just deceiving oneself that everything will be fine.
A) Covid ends before June, and everything goes back to normal for Singapore. Everyone is happy and stock markets rally again, and Government back to budget positive and able to retrieve our budget spendings this year just within the next 1-2 years.
B) After Covid-19, the aftermath of this pandemic is so big, in which it is going to be even worst than Covid-19 itself. The entire USA and EU will be licking on the wounds of the shut down. So many people unemployed which give rise to protests and unrests all over the world. Singapore being an open economy who depends so much on USA and EU got really hurt, and more and more businesses shut gradually.
Government announced another, and another, and another rounds of stimulus.
C) Worst of all, eventually the Currency Crisis come. This is because Fed and ECB been printing too much money, that the abundance of liquidity can only inflate asset pricing, but cannot trigger spendings of the masses. Next, countries will start to send money direct to our bank accounts. Even if this happened, middle or lower income will be cautious of spendings as they are struggling with survival. Still unable to stimulate spendings. Also, since the small percentage of rich controlled a wealth of global wealth, the rich will only gets richer and richer with the stimulus. The poor will gets poorer and poorer which is also the majority. So the rich can only increase spendings by that much. They do not need to buy 10-20-30 extra houses if nobody is going rent. They do not need more TVs, more Furnitures etc.
And since spendings is one’s income in today’s economy, with reduced spendings, the entire economy which is built of the basis of debts will eventually collapsed.
Then the million dollar question is really “how much we have in our reserves?”
Can our government saves every business and prevent them from being broke.