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How close are we to a financial collapse and who is at fault?

September 20, 2008

As and when this blog comes across a commentary or an article that may help us understand what is really happening around us – without the spin – it will not hesitate to reproduce it verbatim for the reader’s benefit. Here is another one of those financial exposés that is best not ignored. The message, i believe, is timely. What’s more, its author pulls no punches and also unashamedly warns us that we are now living in “dire and dangerous” times. What one chooses to make of it is essentially one’s decision. my wish for us is simply this: let us be better informed rather than be deliberately kept in the dark. Happy reading …

Why Tan Sri Nor Mohamed Yakcob, the 2nd Finance Minister, Should Be Sacked

By Matthias Chang
Saturday, 20 September 2008

If someone is slow in comprehension and or stupid, we should bend backwards and strive to assist such a person to understand the issues at hand.

But when a well-educated and qualified person lies and or misrepresents the facts for a political agenda, thereby causing financial loss and hardship to innocent people, we should not hesitate to demand his ouster or dismissal from his position of responsibility.

I have therefore no hesitation in demanding the dismissal and ouster of Tan Sri Nor Mohamed Yakcob as Second Finance Minister in the Badawi regime because it is abundantly clear that he has been, and will continue to be, an irresponsible minister. My reasons for demanding his dismissal are as follows:

1. Since December 2006, I have been warning the government of the global financial crisis as a result of the corrupt banking system in the United States. He may be forgiven for not taking action and or advising the sleepy Badawi in 2006. But when the crisis erupted in July and August 2007, and was headlines news in all the international mass media, this idiot took no noticeable action to prepare the nation.

2. When the crisis became full blown in 2008, both the Mid-Term Review of the 9th Malaysia Plan and the recent 2009 Budget [1] failed to address sufficiently the impact that the financial crisis will have on the Malaysian economy.

3. If sleepy Badawi and this idiot are of the view that the financial crisis will have little impact on Malaysia’s economy, I would like to know their explanations for the massive price inflation in Malaysia, the withdrawal of subsidies for petrol, the massive injection of funds in the public sector – more than RM30 billion for Operating Expenditure in the 2009 budget tabled recently in Parliament and the scaling down and or abandonment of the so-called “mega projects”. Additionally, the injection by Petronas of another 6% dividend to the government to enable the Badawi regime to have more liquidity to meet pressing demands.

4. On Wednesday, the Dow suffered a massive heart attack and this immediately caused the KLCI to breach below 1,000, the first time in two years!

5. Yet, our Second Finance Minister dare state, and as reported in the Star newspaper on 20th September 2008 at page 4, that “Malaysia will not be vastly affected by the financial crisis in the United States because of its strong economic fundamentals.” It has been often said that when the US sneezes, Malaysia catches the cold.

Yet, in the same report, a few paragraphs later, this idiot contradicted himself by acknowledging that: “Malaysia as a country which was well integrated into the global economy would not be spared from the US financial crisis.” I can come to one conclusion and one conclusion only – Nor Mohamed Yakcob has been infected by the Badawi flip-flop disease and is totally overwhelmed by the crisis and is at a loss as to how to cope with the worsening situation. Is he not an idiot?

6. Like Badawi, he is only too glad to have Najib take over the finance portfolio so that whatever blunders committed thus far (for which he shares equal responsibility with Badawi) and all future financial chaos as a result of the mismanagement of the economy will fall squarely on Najib’s shoulders. This scumbag will then hide behind the convenient excuse that he is only the Second Finance Minister and cannot be held responsible as the buck must stop with the Finance Minister.

7. But the public are not fools easily taken in by such rhetoric. This is because when Badawi was the Finance Minister, it was known to all that Nor Mohamed Yakcob was the man running the ministry. This will not change when Najib assumes the responsibility of Finance Minister. Najib has little or no experience in this area and it takes at least a year to settle in any ministry and get to grips with the policies and strategies necessary to keep the ship in good order. It is a given that Najib, like Badawi, will rely heavily on Nor Mohamed Yakcob.

8. Nor Mohamed Yakcob cannot deny and or state that he was unaware that on Wednesaday, all major international mass media were of the view that the global banking system was on the verge of total collapse and that the massive US$85 billion bail-out of AIG temporarily halted the massive collapse of the global stock markets and run on US banks!

9. Major central banks collectively injected a massive US$180 billion into the market – this is on top of the US$ 1 trillion injected betweern 2007 and the first half of 2008. This was part of the package of the US$247 billion rescue structure – ECB giving US$110 billion, the Swiss National Bank up to US$27 billion, the Bank of Japan up to US$60 billion, the Bank of England up to US$40 billion and the Bank of Canada up to US$10 billion. And yet this idiot says that Malaysia will not be affected by this massive financial crisis. This is either height of arrogance or downright stupidity. Whichever may be the case, it is clear that he is incompetent and utterly irresponsible!

10. So let me ask all Malaysians the following question:

Given the past performance of the Badawi regime in economic matters (for which Nor Mohamed Yakcob played a critical role) and an inexperienced Najib assuming the responsibility of Finance Minister (and his inevitable reliance on this idiot), do you have any confidence in the Badawi/Najib regime to steer the country in an orderly fashion out of the financial mess that will impact massively on our economy before the end of 2008?

11. If your answer is a resounding NO then it is obvious that Nor Mohamed Yakcob must be dismissed and replaced with a more suitable person. Malaysia’s economy is like a ship without a captain. This is bearable if we have a good and experienced chief mate [2]. But Nor Mohamed Yakcob has been proven to be utterly inadequate. And unless we address this critical issue within the next two months, we will be beyond rescue.

Let me explain why the situation is so dire and dangerous.

Since Wednesday, when the financial shits hit the ceiling fan, I was hoping that the so-called leading economics and financial commentators and opinion makers would explain the situation to the Malaysian public via the national dailies, the blogs and the TV network. I came across not one article or broadcast that explains the underlying reasons for the inevitable dire consequences.

Sure there were articles on the crisis, but they were merely describing the rescue of the largest insurance company in the USA (A.I.G.) if not the world and the amount involved. No explanation whatsoever, as to why only a few days earlier the Fed and the Treasury allowed the 4th largest bank, Lehman Bros to fold up but rushed in to rescue AIG with an unprecedented US$ 85 billion.

In my various articles published in my website and my final volume of the Future Fast-Forward Trilogy – The Shadow Money-Lenders and the Global Financial Tsunami – I explained in great detail the corruption within the global banking system and how these financial leeches through fraud and political protection created and amassed a global financial fortune in excess of US$500 Trillion.

Let me assure you that this is not a typo error. You got it right. It is not billions but a whopping US$500 trillion.  I have been advised that as of the Q2 of 2008, the figure may have reached US$565 trillion.

This is a complex subject but I shall endeavour to make it as simple as I can.

Starting Point

The Ponzi Scheme

The crux of the fraudulent Ponzi scheme is the twin pillars of:

1) Fannie Mae & Freddie Mac – the two giant mortgage corporations of USA

2) The Derivative financial tool known as Credit Default Swap (CDS)

Once you have a grasp of these two concepts, you cannot but agree that we are facing total global banking collapse. Why? Because the entire global banking system has been built on these two financial pillars! But the system became irreparable in the last 7 years when CDS became the linchpin in the massive expansion of derivative trading and financial engineering.

The Mechanics

1. Banks became greedy and were unwilling to earn safe and steady profits from mortgages for housing and commercial properties which usually spread over a period of between 5 to 30 years.

2. Banks wanted massive profits in the shortest period of time and the ability to lend massive amounts and not be regulated as to how to do it.

3. The crooks devised a scheme. It was a simple idea.

4. Banks will provide mortgages to all and sundry.

5. I am going to use a simple example and using small numbers to illustrate for ease of calculation. Thus, assuming the Bank gave out US$1 million to finance mortgages, bearing interest at 10%.

6. The bank then sold the mortgages to Fannie Mae and Freddie Mac at a discount. Fannie Mae and Freddie Mac being Government Sponsored Companies (GSCs) are able to get cheap financing to purchase these mortgages as they were assumed to be “guaranteed by the US Government”.

7. Fannie Mae and Freddie Mac then package these mortgages into all sorts of structured financial products and these were sold to investors (private as well governments). Central Banks hold massive amounts of dollar reserves and they need to find a safe haven for them. Hence, and invariably, Central Banks invest their reserves in US Treasuries and financial “mortgage-backed” products issued by Fannie Mae and Freddie Mac as well as other US financial institutions.

8. With the payment of US$ 1 million by Fannie Mae / Freddie Mac, the bank by law, can lend ten times the amount after keeping 10% reserves i.e.US$100,000. Therefore, the bank can lend US$9 million by “creating money out of thin air” i.e. by crediting the borrowers in their loan accounts in amount of the loans extended. These US$9 million loans secured by mortgages are then sold to Fannie Mae / Freddie Mac again.

The cycle keeps repeating and the banks keep creating more and more loans.

It was so easy that the banks decided to create dubious loans called “Liars Loans” whereby the borrower need not state the actual income and or ability to repay.

9. As more and more of these loans were created, investors (government and private) demanded assurances that these loans were good for investments. The rating agencies (e.g. Moodys, Standard & Poor and Fitch etc.) who in collusion with banks, gave AAA ratings to what were essentially junks. This fraud led investors to believe that these financial products were good investments.

10. The rating agencies were only too aware that this scheme needed something more concrete to prolong the fraud and induce the investors to part with their monies.

11. The insurance companies like A.I.G. came into the picture. They were seduced by the idea that if they can insure against risks of accidents, storms etc., they could also insure risks against default by the mortgage holders. Thus was born the financial innovation – Credit Default Swap (CDS). Any financial product with a sound CDS would be rated AAA. It was as good as being guaranteed by Uncle Sam. Assholes the world over, especially central banks, fell for it – hook, line and sinker. Bank Negara was no exception.

12. The scheme works out like this – AIG sells protection – i.e. in the event there is a default, AIG will pay out to the buyer who buys the protection (the CDS) in exchange for the payment of premiums covering the period of protection not unlike your usual insurance policy. It was easy money for everyone.

The banks get to sell their loans and have the liquidity to create more loans.

Fannie Mae / Freddie Mac and other financial institutions get the opportunity to repackage these loans / mortgages and sells them to investors with a tidy profit.

The investors are happy with their so-called guaranteed returns. The insurance companies, investment banks and other players get their premium income for selling protection. It was old fashion mafia loan sharking and protection business dressed up in modern financial jargon and everyone was too arrogant and greedy to see through the fraud.

13. When loans default and continue to be delinquent, the law (depending on each country) provides that if the loan is in default for 90 days or more, it should be declared a Non-Performing Loan (NPL) and banks must provide reserve to cover the loss.

14. What happened was banks were covering the defaults and kept them on the books for two years or more in the hope that no one would be wiser and interest income from new loans would cover the defaulted old loans – the classic ponzi modus operandi.

15. When the two years default reached critical proportions starting with the sub-prime loans, the fraud began to unravel. Investors began demanding their protection money for the losses arising from these defaults. It has been estimated that the market value of the CDS was in excess of US$60 trillion but the capital of the insurance companies like AIG are only in the billions. It is therefore a physical impossibility to make good the demand for payment for the defaults.

16. If AIG the No. 1 insurer in US and the world is in default, it means the rest are in deep shits. You can take it as a given that no one and no one has good coverage and protection anymore.

17. When there is no coverage and protection, how can there be AAA ratings for new issues of such financial products? Fannie Mae/Freddie Mac etc. cannot package these products for sale to investors and if they cannot sell, they will have no funds to buy more dubious mortgages from corrupt and fraudulent Wall Street banks. With no additional funds, these crooks in JP Morgan Chase, Goldman Sachs, Citigroup, Lehman Bros., Morgan Stanley, Merrill Lynch, Bank of America, UBS, Barclays, HSBC, Deutsche Bank, Credit Suisse, etc. will have difficulty extending new loans.

The “Musical Money Chair” will have to come to a complete halt. The entire system gets into a gridlock.

Given the above explanation, can the US government and the Fed continue to bail out banks and other financial institutions? When US is in deficit in both the budget and current accounts, where else can they get the extra monies except by creating out of thin air (virtually by keying digits into computers) or print more dollars.

If you are a sovereign lender or a private hedge fund, knowing the situation, would you lend more monies to the US Treasury knowing that each dollar issued (whether digitally or in printed notes) are not worth the value stated therein.

These dollars ARE NO BETTER THAN TOILET PAPER.

The bulk of our reserves are in US dollars. Our trade – petroleum products, palm oil and other exports are mainly traded in dollars. When the dollar dives into the cesspool of waste, what then?

This is the impending mess that Malaysia will be facing as early as end of 2008.

Have you heard anyone other than this writer talking about it?

Has anyone got the faintest idea as to how we are to cope with the social disruption arising out of this mess?

Has anyone advised you what alternatives you can adopt to save your family and your hard-earned money from the devastation?

YES, I AM BLOODY MAD THAT THIS STUPID GOVERNMENT HAS DONE ABSOLUTELY NOTHING TO PROVIDE A SAFETY NET FOR THE RAKYAT.

WHEN THE TIME COMES, ARE YOU PREPARED TO STAND IN LINE WITH ME IN THE TRENCHES TO HUNT DOWN THESE CROOKS AND SCOUNDRELS?

This is a decision you have to make.

I hope that you will make the right choice and decision.

End Notes

[1] The Malaysian Budget is tabled before Parliament in the Q3 of the year. Hence, the 2009 Budget is tabled in Q3 of 2008 and the 2008 budget was tabled in the Q3 of 2007.

[2] The chief mate is responsible to the captain for the safety and security of the ship. Responsibilities include the crew’s welfare and training in areas such as safety, firefighting, search and rescue. The Chief Mate is second in command.

18 Comments
  1. I same opinion for Yakcob too in http://wangsamajuformalaysia.blogspot.com/2008/09/i-regularly-scan-foreign-news-reports.html.

    No one is working (doing real work that is) in Putrajaya.

  2. james loh permalink

    no one understand no one care no one ask question…let it hit the ceiling fan….without blood there wont be lessons learned ..after all evil prevail when good men do nothing..let it come come hard

  3. Drachen permalink

    Matthias Chang, Dr M’s lawyer? Probably pushing some agenda for the old fox. I’ll take everything he says with a pinch of salt.

  4. Sunday morning, 21st September ’08.

    Instead of some light readings, I had to blog surf… and,

    after reading Malik Imtiaz’s analysis on the Malaysian constitutional crisis and Matthias Chang’s global financial meltdown,

    I think a fishing trip to Tioman is waaaaay overdue, bro.

    Hmmm.. suddenly, even Nibiru isn’t so morbid anymore.

  5. oneworldmaybenot permalink

    MC should be asking his boss why then Nor Yakcob was Tun M’s economic adviser then considering Nor Yakcob lost RM30 bil in currency speculation during his tenure in Bank Negara using the country’s reserves. Malaysia became the laughing stock when no other central bank in the world speculates with the country’s reserves. Yet he was rewarded with a post as Tun M’s Economic Adviser, now as Second Finance Minister & a Tan Sri-ship to boot. The pot shouldn’t call the kettle black lah. I cringed when he was appointed Second Finance Minister-a forex speculator holding the country’s purse.

    As for the misery in the US, MC is being disingenuous (I am being polite here) to insinuate that Fannie & Freddie was the major player in the crisis & with US government as the twin’s implicit backers, also had a sinister role. Truth is its plain & simple greed & easy money thanks to Greenspan which caused it. Players from mortgage brokers right up to investment bankers chasing extraordinary returns using incredible leverage & derivatives which became weapons of mass destruction. I could go on with the causes and an epilogue of the financial crisis but will take up too much space but I am tired of MC’s nutjob analysis with questionable agenda.

  6. JSS permalink

    So what do you suggest for an average person to do to protect his family and meager savings?

    This is distressing…

  7. Dosa Dosa Khir Toyo-Malaysiakini

    Wak juga orang Jawa tapi wak tak suka apabila orang Jawa jadi sombong dan khianati bangsa Jawa.. Wak lega apabila Khir Toyo tidak lagi menjadi Menteri Besar tapi wak tidak puas hati bila dia tidak di bawa ke muka pengadilan dan terlepas dengan segala dosa yang dilakukan semasa menjadi Menteri Besar dahulu.

    Kita renung kembali dosa-dosa yang telah dilakukannya dahulu :

    1. Meluluskan projek pembina jalan merentasi bendang termahal, di Sekinchan, sejauh 20.5 km, bernilai RM92.5 juta kepada kontraktor yang hampir disenaraihitamkan, Meram Holdings. Menurut taksiran JKR, kos jalan itu tidak boleh melebihi RM50 juta. Subkontraktor yang menjalan semua projek berkenaan, Cabaran Wangsa, di miliki Pua Kim An, 27 tahun, tuan rumah yang pernah disewa oleh Khir, manakala seorang lagi pengarah syarikat, Ahmad Tarmizi Tajjeury adalah kroni Khir yang juga mendapat 100 ekar tanah yang memberi keuntungan minimum RM20 juta.

    2. Meluluskan tanah 400 ekar di Shah Alam, pada 20 Disember 2000 kepada empat syarikat berbeza (Layar Kekal/ Tirai Gemilang, Samasys, Usahasewa Sdn Bhd), tetapi seorang nama pengarahnya (Samsuri Rahmat) hadir dalam semua syarikat tersebut, iaitu seolah-olah Khir meluluskan tanah berpontensi tinggi itu kepada seorang sahaja. Nilai tanah di kawasan berkenaan boleh mencapai RM1 juta untuk satu ekar. Samsuri boleh untung minimum RM300 juta dari tanah tersebut.

    3. Meluluskan tanah kepada kroninya secara berulang kali dalam tempoh masa singkat. Daripada hanya dua mesyuarat Exco Kerajaan Negeri yang diambil secara rawak, iaitu pada 20 Nov. 2000 dan 4 Julai 2001, sekurang-kurangnya empat nama bertindan yang mendapat 100 ekar setiap orang, Ahmad Tarmizi Tajjeury, A.Rahman Mokhtar, Suzilawani Mustaphin dan Ali Nordin. Semua mereka ada hubungan, sama ada dengan Khir ataupun Setpol, Dr Karim Mansor. Sebahagian tanah ini telah dijual, dan pemiliknya boleh mengaut keuntungan RM200,000 seekar tanpa mengeluarkan modal walaupun satu sen.

    4. Meluluskan tanah seluas 50 ekar setiap seorang kepada empat pemohon yang hanya baru berusia 20 tahun (Ahmad Azmir, Noor Ashikin, Mardhiah, Azril Yusri).Salah seorang darinya adalah anak pegawai Daerah Kuala Langat, di mana lokasi tanah itu dikesan. Difahamkan sebahagian anak-anak muda ini tidak tahu pun yang mereka mendapat tanah berkenaan kerana mereka hanya penama bagi pihak yang rapat dengan Khir. Mereka ini hanya menjadi pengarah syarikat, tidak pun sampai 40 hari sebelum Exco meluluskan permohonan mereka. Beberapa syarikat terbabit dikenal pasti mempunyai pemegang syer yang sama, yang terdiri dari dua wanita yang ketika permohonan diluluskan baru berumur 24 tahun.

    5. Bagaimana Khir, pada bulan Mac 2001, hanya selepas 5 bulan menjadi MB, boleh membayar semua baki pinjaman rumahnya sebanyak RM150,000 secara tunai kepada BBMB Kajang. Kalaupun beliau tidak membelanjakan langsung elaun MBnya, beliau tidak mampu membayar semua pinjamannya itu.Rumah itu juga diubahsuai dengan kos yang besar, ini belum lagi dikira kos membina rumahnya sekarang di Simpang Lima, Tanjung karang, yang menelan belanja lebih RM300,000.

    6. Menggunakan kuasa dan pengaruhnya sebagai Pengerusi PKNS untuk mendapatkan sebidang tapak banglo di Lot 14, Jalan 2/1G, Seksyen 2 Tambahan, Bandar Baru Bangi dengan diskaun hebat, 50%. Khir berbohong di Dun Selangor pada 31 Oktober 2001 apabila mendakwa beliau tidak membeli tanah itu, kononnya kerana tidak mampu dan dia juga menafikan pernah menerima dua tawaran dari PKNS dengan harga yang berbeza-beza. Salinan pembayarannya telah diperolehi.

    7. Khir memberi sumbangan peribadinya, berbentuk telur ayam, ayam dan peralatan sekolah kepada pengundi di kawasannya, di Sungai Panjang pada 25 Disember 2000. Nilainya hampir RM200 ribu. Apabila dipersoalkan dari mana sumber kewangannya, beliau, melalui akhbar Malay Mail pada 15 Januari 2001 mendakwa sumbangan ayam diperolehi dari Lintang Bistari Sdn Bhd sebuah syarikat bumiputera yang menurut Khir adalah syarikat ternakan ayam terbesar di Sungai Panjang. tinjauan menunjukkan bukan ayam atau reban tidak ada di kawasan berkenaan, malahan bulu dan tahi ayam pun tiada.

    8. Pada 17-18 April 2001, meluluskan kawasan kayu balak Kompartment 78 Hutan Simpan Hulu Langat kepada Fungsi Mewah Sdn. Bhd, seluas lebih 1200 ekar. Fungsi Mewah dimiliki oleh Pua Kim Seng, adik Pua Kim An, yang mana rumahnya bersebelahan rumah sewa Khir di Sekinchan dahulu. Pua Kim An juga dikesan mendapat tanah 100 ekar di Shah Alam. Keluarga Pua ini menyumbangkan dana kewangan yang besar kepada Khir semasa kempen pilihan raya 1999 dahulu.

    9.Projek membekal dan memasang paip air besi keluli MS1200mm, dari Semenyih ke Banting sejauh 37.3 km, bernilai RM82,385,182.. Projek ini terlalu mahal dari taksiran awal, yang tidak boleh melebihi RM40 juta. Dan jika sumber air diambil dari Pekan Dengkil kemungkinan jaraknya dapat dipendekkan menjadi hanya 20 km dan ini lebih menguntungkan. Ahli keluarga terdekat Khir didakwa mendapat imbuhan berpuluh juta daripada kontraktor LBH Engineering.

    10. Meluluskan konsesi membekalkan peralatan paip air untuk jabatan Bekalan Air Selangor kepada syarikat milik Naib Ketua Umno Tanjong Karang, JAKS Sdn Bhd. Harga paip JAKS 50% lebih tinggi daripada harga kilang. Bayangkan, untuk 1 meter paip, harga JAKS adalah RM900 sedangkan harga kilang hanya RM600. Selangor mahu tukar 5,000 km paip,jadi berapa untung JAKS?

    11. Meluluskan kawasan balak di Kompatmen 78, Hutan Simpan Hulu Langat, seluas lebih 1,200 ekar kepada Fungsi Mewah, milik Pua Kim Seng, iaitu abang kepada Pua Kim Seng, bekas tuan rumah yang pernah disewa Khir di Sekinchan. Keluarga Pua ini juga mendapat kontrak membina jalan termahal (RM4.6 juta untuk 1km)merentasi sawah padi daripada Meram Holdings, kontraktor yang hampir disenarai-hitamkan.

    12. Khir membayar RM10,000 sebulan bagi tapak banglonya, di Lot 14, Jalan 2/1G, Seksyen 2 Tambahan, Bandar Baru Bangi, yang dibelinya daripada PKNS dengan harga diskaun 50 peratus. Sumber pendapatannya dipertikai kerana sebelum ini beliau membayar tunai RM150,000 untuk selesaikan pinjaman rumahnya di Kajang, selepas lima bulan menjadi MB.

    13. Beliau mengarahkan Pengarah JKR Selangor, melalui nota pensil (agar dapat dipadam jika timbul kontroversi kelak), agar menyerahkan projek yang membawa keuntungan lumayan kepada kontraktor kroni. Antara projek terbabit ialah pembinaan jalan di Sabak Bernam, masjid di Puchong Perdana, kem wataniah dan kuaters kakitangan SUK di Shah Alam.

    14. Khir mempunyai hubungan rapat dengan kontraktor yang memohon projek kerajaan negeri, misalnya beliau bersama keluarga pernah bermalam di sebuah resort mewah di Janda Baik milik kroninya. Majulia Sdn. Bhd. Ini bercanggah dengan surat akujanji yang ditandatanganinya di depan Sultan Selangor.

    15. Menswastakan kutipan tunggakan pembayaran ansuran bulanan rumah awam kos rendah seluruh Selangor kepada syarikat kroni, Noble Nexus Sdn Bhd melalui perjanjian konsesi pada 27 September 2001. Untung lumayan dapat dipungut secara mudah kerana tugas Nobel Nexus hanya menghantar notis saman dan 30% kutipan menjadi miliknya.

    16. Meluluskan pembelian kenderaan rasmi kepada Exco Kerajaan Negeri Selangor dan Menteri Besar (dirinya sendiri) melalui mesyuarat Exco ke 25/2001 pada 26 September 2001, tanpa melalui prosedur yang lazim digunakan. Usia kereta rasmi MB belum sampai lima tahun (didaftarkan pada Jun 1997), dan tempoh Khir menjadi MB baru setahun iaitu tidak sampai lima tahun seperti sepatutnya. Beliau juga tidak merujuk kes ini kepada Perbendaharaan dan Ibu pejabat JKR di Kuala Lumpur. Meskipun menyentuh kepentingannya, di mana kereta rasminya Merc S320L, no. plat BGF7337 ditawar untuk dijual kepadanya, Khir masih mempengerusikan mesyuarat dan tidak mengisytihar kepentingannya.

    17. Khir mengarahkan agar semua minit dan kertas mesyuarat exco dikutip semula selepas mesyuarat tamat, manakala segala bahan-bahan penting mesyuarat Exco yang dipengerusikannya sejak Ogos 2000 tidak dibenarkan disimpan oleh Exco lain. Selalunya kertas-kertas penting itu diedarkan kepada anggota Exco sehari sebelum mesyuarat, iaitu pada Selasa, tetapi selepas isu rasuahnya terbongkar, ia hanya diserahkan selepas setiap Exco duduk di kerusi masing-masing. Maknanya, “Exco Selangor masuk mesyuarat berlenggang, keluar pun berlenggang.”

    18. Meluluskan hampir 11 ekar tanah di Bandar Baru Bangi, yang diwartakan sebagai kawasan rekreasi, kepada syarikat kroni, Bestarama Sdn Bhd. Masyarakat setempat membuat bantahan kerana setakat ini banyak kawasan hijau dibangunkan demi mengejar keuntungan lumayan. Bestarama boleh untung segera lebih RM14 juta. Menariknya, pemegang syer Bestarama juga pemegang syer Noble Nexus. Kedua-dua wanita itu hanya penama bagi suku-sakat Khir.

    19. Menggunakan ratusan ribu ringgit wang kerajaan negeri untuk membeli iklan dua muka penuh berwarna dalam Utusan Malaysia, sekurang-kurangnya pada 1 Feb, 16 Mac 2002, bagi menjawab serangan Lutfi Othman yang mendakwa Khir mengagihkan tanah (yang luas dan mahal), pelbagai projek besar, balak, buat kroni dan suku-sakatnya.

    20. Mengeksploit mesyuarat Majlis Tindakan ekonomi Selangor (MTES), untuk meluluskan segala tanah & projek kepada sesiapa yang disukainya tanpa kehadiran Exco lain. Mesyuarat Exco esoknya (pada setiap Rabu) hanya mengesahkan saja. MTES, menurut bekas penasihat undang-undang negeri, adalah tidak sah dari segi legal kerana ia merampas kuasa mesyuarat Exco.

  8. Mr Chang

    Such coarse language for presumably well-analysed academia

    Do tone down a bit on the ‘idiots’ , “scumbag” bits ; It really does reflect on the person who uses these words

  9. Born2reign permalink

    To Drachen and Allan Wee,
    Matthias Chang is not my favourite guy, with his links to the Madhatter. But put aside emotions, this guy has his facts right. You can do your own research.

    However, having studied the financial events the last 24 months, esp the last 6 months, many Malaysians are still not taking responsibility for their own wealth. They are so used to govt helping and bailing out the banks. Our very own Bank Negara has been printing paper money to bail out GLCs and their cronies. There will come a time no matter how much paper money they print, the currencies will be devalued from toilet paper to coal substitute.

    For the everyday folks, imagine your RM50,000 in the bank – now zero because the bank fold up.

    Imagine the cash on hand RM10,000 now worth RM1,000 – why? because your plate of chicken rice has gone from RM5 to RM50. This is called inflation or devaluation, same outcome.

    In summary, any paper currencies with the face of some Sultan or President on it, will be toilet paper. That is because Central Banks of many countries, China, Russia, Japan… has few hundred billions of US-financial instruments.

    Love him or hate him, Matthias has a point and for once I agree with him (because I read many alternative financial views). I don’t want to see us all suffer, and I believe even Anwar can’t do much with this global tsunami. (Sadly my family still does not believe me, thinking they have survived the last crisis, what could be worse?)

    What to do? Convert 55% of your paper currencies while you still can. Currently only the shares are tumbling (safe for those who holds no shares), but once the paper money crumbles, hardly anyone will not be spared.

    If paper money is UNSOUND MONEY (value is lost due to events), then check out SOUND MONEY (does not lose value in the long term). Keep out of debts and 55% of current assets in SOUND MONEY.

    Gold Chart since 1982:
    http://www.the-privateer.com/chart/gold-pf.html

    Have a safe landing, guys.

  10. Alan Liow permalink

    Firstly one should applaud MC for taking the initiatives in attempting to explain to the public the intricate inner workings of the global finance situation.

    Secondly, this is a blog and MC is entitled to his personal views of certain individuals that is or was responsible for the running of Malaysia’s economic/finance policies.

    Now, i’m interested to know of the mentioned ‘safety net’ or alternative policies given the situation?

    As quoted, Central Banks including our own Bank Negara holding large amounts of U.S reserves invariably buys (questionable) U.S financial instruments as a safe haven. Are there alternatives?

    Doomsday prediction only causes panic which in turn spirals into self prophecy. Instead, propose possible solutions and let the experts argue over it transparently?

    As a layman, whats my relevance other than my RM turning into toilet paper?

    In jest, perhaps if you’re the many like me who has not amassed millions in recent years then a reset and an even platform may not be such a bad thing :)

    Alan Liow

  11. Bajet 2009 ceriakan petani

    ALOR STAR – Sebagai negeri pengeluar padi yang menyumbang kepad lebih 40 peratus pengeluaran beras negara, kenaikan harga bahan bakar baru-baru ini sememangnya menekan para pesawah di Kedah.

    Pendapatan mereka menjadi berkurangan gara-gara terpaksa menanggung kos mengerjakan sawah yang dikatakan meningkat hampir 50 peratus berikutan kenaikan harga minyak tersebut.

    Malah sejak musim 1 2008 yang bermula pada pertengahan Julai lalu, pelbagai isu timbul berkaitan kos operasi, harga dan penjualan padi yang mengundang keresahan di kalangan petani.

    Bebanan yang terpaksa dipikul oleh pesawah sebenarnya bermula sejak menjejakkan kaki ke sawah lagi apabila kos baja dan racun melonjak tinggi melebihi seratus peratus, manakala kadar upah menuai padi pula meningkat antara 25 peratus hingga 30 peratus.

    Justeru apabila padi ingin dituai, timbul permintaan agar harga tanaman itu di negeri ini diselaraskan seperti di Selangor. Ini berikutan wujudnya perbezaan harga di antara negeri-negeri yang mana harga padi yang dibeli dari petani di Kedah dikatakan sekitar RM900 setan sementara yang dibeli daripada petani di Selangor pula RM1,280 setan.

    Bagaimanapun permintaan itu dianggap sukar untuk dilaksanakan keran harga padi dipengaruhi beberapa faktor yang berbeza mengikut kawasan. Antaranya ialah kualiti hasil tanaman itu, harga beras import dan jumlah keuntungan yang diambil oleh pengilang.

    Namun tercetus rasa lega dan gembira di kalangan pesawah dengan langkah kerajaan memansuhkan duti import ke atas baja dan racun seperti diumumkan oleh Perdana Menteri, Datuk Seri Abdullah Ahmad Badawi dalam Bajet 2009 pada Jumaat lalu.

    Menurut Pengerusi Penyelaras Pertubuhan Peladang Kawasan (PPK) Lembaga Kemajuan Pertanian Muda (MADA), Ahmad Radin, 68, pendekatan yang dilakukan kerajaan itu dapat meningkatkan pendapatan para petani sebagaimana yang diharapkan oleh mereka selama ini.

    Menurutnya, pemansuhan duti import baja dan racun dapat membawa kepada pengurangan harga bahan itu di pasaran tempatan, sekali gus membantu meminimumkan kesan kenaikan kos input tani yang ditanggung oleh mereka.

    “Kegelisahan para pesawah ketika ini ialah merekadibebani dengan peningkatan kos operasimengerjakan bendang setiap musim selain kos sara hidup yang semakin tinggi.

    “Kami menyambut baik langkah kerajaan memansuhkan duti import ke atasbaja dan racun perosak kerana ia akan membantu mengurangkan kos input pertanian,” katanya kepada Utusan Malaysia di sini hari ini.

    Ahmad Radin berkata, para petani turut gembira dengan pengumuman Perdana Menteri bahawa sebanyak RM475 juta diperuntukkan bagi bantuan input pertanian, baja dan racun perosak untuk meringankan beban mereka.Langkah itu, katanya, menunjukkan keprihatinan kerajaan untuk memnasib para petani.

    “Oleh itu, kami berharap peruntukan berkenaan dapat digunakan dengan sebaik mungkin agar ia benar-benar memberi manfaat kepada pesawah,” katanya yang menjadi Pengerusi Penyelaras PPK MADA sejak 25 tahun dulu.

  12. Born2reign permalink

    Alan Liow,
    As a layman, if you just have 2 savings and FD accounts, and do not play shares or property speculation/ investments, then the only relevance for you is
    1) losing your job – if your company’s debtors are not paying and cannot get bank loans to continue paying salaries, and drop in sales,
    2) inflation is now about 15-25% as far as I am concerned – I still have no idea how our BNM calculates our national inflation rate, hence if you spend RM1000 monthly on food, next year it’ll be RM1250, and
    3) personal loans and mortgage loan interest may go up – eating into your savings.

    Panic is a state of relevance..Warren Buffet has been waiting for this very moment…he knows that a system of credit and indiscriminate printing of paper currencies can only survive with more & more borrowings and lendings…
    Hence Buffet is not panicking now, he’s in shopping mood. Those who look up to their bosses and govts for livelihood are (panicking).

    Look on the bright side, gold and silver are still undervalued…

  13. aenemy7 permalink

    The US government already secretly sending 800 billion Amero’s to some China banks….yes, some of the elites already prepared these well planned economic crash a long time ago!! create problems-react-solutions

    Just wait for their announcement about the new currencies which is AMERO ,the Dollar’s successor!!!! America,Canada and Mexico will merged as one country! if everything goes according to their plans, the US economies will completely crash by this February 2009!

    Robert F. Kennedy once said in the 60s(1968)…
    —————————————————————————–

    “Attorney General Robert F. Kennedy told the World that the United States – despite Alabama violence – is moving so fast in race relations a Negro could be President in 40 years. … “There is no question about it,” the Attorney General said. “In the next 40 years a Negro can achieve the same position that brother had.”

    ——————————————————————————

    what is the role of OBAMA in these sayings???exactly 40 years after!!! what happen to this guy when he said this?? boooommm! just like his brother JFK!! America and the rest of the world is heading towards FASCISM, that’s the only way to control the riot and rebellious people….look at China and North Korea, that’s the kind of world we going to live in the future…May Allah prevent this!

    By the way, the Oil price’s is heading USD 38 per barrel by the end of this year and maybe even lower, some of the elites in Italy said the oil will lost their political force in the future, hmmmmmm…Taiwan will finally becomes part of China again by hook or by crook in the near future!

    The Gold and Silver thing was totally controlled by those elites(Illuminati ancient family’s(the GOG and MAGOG descendants from central Asia such as the CAUCASIAN-CAUCASIUS),the real JEWS(not the majority KHAZARS in ISRAEL!) and the Vatican through their JESUITS agent..we have some in M’sia if you all know’s how to identify them!!look for the “SJ” title at the back of their name), they can play the price game anytime they want, so nothing can be done right now…

  14. Paklulu permalink

    Alan Liow,
    Everytime I read MC’s books or blog I have the urge to go to toilet.You can say he is an angry old man.He has a point though. The religeous always say that God is fair. How can that be when you are in a RR and I am on Modenas? Well not forever my friend. Every once in a while God make sure that there gonna be a Reset and we are all back on level ground. So dont work so hard lah…

  15. WELCOME TO THE NEW WORLD ORDER

    OBAMA IS ANOTHER PUPPET

    CHECK THIS OUT

    http://profile.myspace.com/index.cfm?fuseaction=user.viewProfile&friendID=278620409

  16. Obama is not a puppet. He is an outstanding President.

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  2. Open your eyes « Chen Grounded Here

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