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I take a pause on my next China post to ponder on this interesting development because it further enhances understanding of the "carry trade" of MAS and PBOC in my two recent articles. The next China post is about how the country did the plumbing to fix the problems of their financial system, how fixing one leak creates another leak elsewhere. It's about how errors in policy can lead to serious structural problems in the economy. This Japan story is a good prelude to the next post as it deals with the difficult tasks of plumbing the system. In early August US Treasury reportedly provided the bank of Japan USD5Bn-USD10Bn to help prop up the Yen. There are lots of rhetorical comments in legacy and social media. If a country sucks up to Donald Trump, the US will jump in to help. US helps Japan by printing money, and in the end, takes away Japan's US Treasuries, thus clearing the American debt without paying anything. Trump admin is fascist and bulldozing the Fed's i...

The post title is as audacious as Prof Jeffrey Sachs' prediction in 2019. Sachs' boast has about 3 years to go and there are no signs of anywhere near realisation. This post has about 15 minutes read time to try to convince you. In the past few years you have been pounded by media with one story after another of the RMB being used in oil trades and countries agreeing to invoice in RMB. It drives the sense of a serious rise in the adoption of the yuan as a world reserve currency.  Let's look at one metric to see the major currencies share as reserve currency in 2019 and 2025. True enough, USD has shedded 4.56%, but RMB has gained by only 0.09%. The shift to RMB stalled at the front door of Beijing's capital controls. The shifting allocation of global reserves away from USD is surprisingly into the smaller currencies This is a phenomenon called the "Stealth Erosion of Dollar Dominance." The driver is technology. The digitization of foreign exchange markets...

China has literally constructed a huge dam that is holding back a massive amount of sterilised renmenbi threatening to break out and devastate downstream. Many serious structural problems exist in China's financial system and this dam is a good analogy of one of them.  I am no Sinophobe, but simply trying to provide explanations of complex economic and financial situations in a way a lay person can appreciate. I want to go deep into the structural problems China's central bank, the People's Bank of China (PBOC), has been struggling with for decades. It's a long story to be spread over a few posts, at the end of which, it circles back to Singapore and you will understand in a connected world, how the Chinese problem filters down to money laundering incidents on our shores.  And for those who sing high praises of Chinese golden age and dedollarisation, difference of opinion is perfectly fine. But I hope you stick around and let's go down the rabbit hole together. I h...

MAS Managing Director Chia Der Jiun summarised the performance for y/e 31 Mar 2026: Before anyone brings out the champagne one has to understand that MAS is not a for-profit entity and therefore profitability is not a measure of its performance. As a central bank, apart from its regulatory function and leadership role in the development of the financial industry, its core mission is to manage the general price level (inflation) and liquidity in the financial market. The measure of its performance is not determined by its profitability. MAS could have managed inflation well and yet be making losses. Whether MAS has managed its mission well, I leave it to the reader's opinions. I just want to talk about its financials. MAS financial performance is fundamentally dependent on 2 factors: 1. The SGD exchange rate trend 2. Market Externalities - interest rates, equities market The FY2025/2026 financial results illustrate the profound tension between MAS’s domestic policy objectives an...

What does a headline like this do? It makes your mind see 2,596 ship-loads of military hardware -- riffles, bombs, bullets, tanks, suddenly leaving India for Israel after the war broke out. That is a massive arms shipment never seen before in history since Richard Nixon's Operation Nickel Grass in 1973 during the Yom Kippur War. One thing I notice on social media is the ummah and Jew haters will seize on a meme like this one and start sharing without bothering whether it is true or false, right or wrong. This is called biased confirmation and that's how truth gets destroyed and falsehoods get amplified. When adults refuse to compute and accept slogans and headlines for truth, and far worse - spread something they know not, I shudder to think what will happen to our kids. I like to use this example on how we need to think logically, use our brain righteously since we have been blessed with a working one.  To lazy and susceptible minds, you "ahem" them the Hormuz Strai...

"Well by quoting something called The Book of Esther which is in the Christian Old Testament, a controversial book for a long time, Martin Luther thought it shouldn't been there but it is there. And it's the story, among other things if a genocide of Persians. Oh yeah, 75,000 Persians." (Tucker Carlson) It seems things have gotten easier to explain for almost everything wrong in this world. It is the Jews, Israel, the Zionists, Mossad. The justification can be traced down to one of two writings - The Book of Esther and the Protocols of the Elders of Zion. It was only a matter of time that outspoken Israel critic Tucker Carlson aka Tucker Qatarson, will refer to one of these. He didn't disappoint, A short while back, he quoted The Book of Esther. Proof that the Jews are genocidal. The Book of Esther is a story of how Haman, the chief minister in ancient Persia, plotted against Mordecai, a prominent Jew, by tricking the King to annihilate all the Jews living in t...

Christopher Nolan's "The Odyssey" is in the theatres. Bring your kids to the movie and you indoctrinate them with a twisted version of what progressive Hollywood wants them to grow up with, not what Homer wrote the epic for. After decades of casting white actor J. Caroll Naish as the star detective in the old TV series "The New Adventures of Charlie Chan" with eyes "chinked" by makeup artists, Hollywood now uses black Lupita Nyong'o to portray the white Greek Helen of Troy, known as "The Face That Launched A Thousand Ships". And of course, they must tone down masculinity for the sake of the effeminated western liberal world. They can't have muscular leads to play Achilles -- no Brad Pitt, not Gerard Butler or any of those muscle-bursting actors in "300 Spartans". Why, of course, have transman Elliot Page portray Achilles!!! If you go watch the move, squirm in your seat as 5-foot skinny Page drags the weight of the Grecian a...

"The LORD will have war with Amalek from generation to generation:" Exodus 17:16) Throughout their 5,000 year history, the Jews have faced and survived major adversaries - the Egyptian pharaohs, Philistines, Assyrians, Babylonians, Seleucid Greeks, Romans, the Ottomans, and Nazi Germany. These people have been dealt with decisively and are all in the dustbin of history. Exodus 17:16 suggests the conflict with Amalek is a generational curse. Might this still be going on, an enemy that seeks the destruction of the Jews, a mystery that lurks behind the ceaseless conflicts in the Middle East in our own lifetime? The people whom the Bible describes as God's covenant people have been known by different names at different periods of history. They were Hebrews (for Abraham and his descendants), Israelites, or Children of Israel (for descendants of Jacob), House of Israel (the Northern Kingdom), House of Judah (Southern Kingdom), Jews or Yehudi (during Babylonian...