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Thursday: 21 OCTOBER 2010 8:10am

ChannelNewsAsia

PROPERTY INSIGHTS

IP Global Tim Murphy

Only NORMALISED INTEREST RATE can CONTROL INFLATION

lOW interest rate leads to LIQUIDITY FLOOD which the RAW FUEL for INFLATION

7 to 14% of JAPAN commercial properties are EMPTY

Australian properties are too expensive

DUBAI has so many SCARY EMPTY BUILDINGS

DON'T buy SEXY properties

x 0

Thursday: 21 OCTOBER 2010 8:10am

ChannelNewsAsia

PROPERTY INSIGHTS

IP Global Tim Murphy

Only NORMALISED INTEREST RATE can CONTROL INFLATION

lOW interest rate leads to LIQUIDITY FLOOD which the RAW FUEL for INFLATION

7 to 14% of JAPAN commercial properties are EMPTY

Australian properties are too expensive

DUBAI has so many SCARY EMPTY BUILDINGS

DON'T buy SEXY properties

x 0

Thursday: 21 OCTOBER 2010 8:10am

ChannelNewsAsia

PROPERTY INSIGHTS

IP Global Tim Murphy

Only NORMALISED INTEREST RATE can CONTROL INFLATION

lOW interest rate leads to LIQUIDITY FLOOD which the RAW FUEL for INFLATION

7 to 14% of JAPAN commercial properties are EMPTY

Australian properties are too expensive

DUBAI has so many SCARY EMPTY BUILDINGS

DON'T buy SEXY properties

x 0

Thursday: 21 OCTOBER 2010 8:10am

ChannelNewsAsia

PROPERTY INSIGHTS

IP Global Tim Murphy

Only NORMALISED INTEREST RATE can CONTROL INFLATION

lOW interest rate leads to LIQUIDITY FLOOD which the RAW FUEL for INFLATION

7 to 14% of JAPAN commercial properties are EMPTY

Australian properties are too expensive

DUBAI has so many SCARY EMPTY BUILDINGS

DON'T buy SEXY properties

x 0

Stock

Code

i

Rmk

Ccy

Last

$Chng

%Chng

Vol

Buy Vol

Buy

Sell

Sell Vol

Open

Day Lo

Ind

MapletreeInd

ME8U

i

--

SGD

1.150

0.000

0.0

280,244,000

41,035,000

1.150

1.160

30,594,000

1.150

0.000

1.200

1.150

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may BREAK dOwn S$1.15 tOmOrrOw, iF nOt tOday ?

x 0

O V E R H E A R D :

MIT is Yield Stock [pUre Dividend]

GLP is Growth Stock [nO Dividend]

bladez87 ( Date: 21-Oct-2010 15:22) Posted:

o man. why MIT die out so fast? now no mood to see GSP at all.

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A snip in time saves lives

Letter from Chung Siqi

I WRITE in response to “Addict sterilised in Britain in exchange for cash” (Oct 19).

Despite accusations of the charity’s action being morally reprehensible and irrelevant, I feel that this controversial project is commendable as it benefits a majority of society.

Should addicts conceive, apart from the damage done to children, there is the damage done to society. Not only will addicts be unable to support their families because of their drug problem and criminal activities; social services may even take their children away. His or her family would ultimately be forced to survive on donations from the rest of society and the healthcare system.

The implementation of such a system is a win-win situation since a person’s autonomy to get sterilised (albeit for cash) is respected, plus there will be an overall reduction in risk and cost to society.

Perhaps the charity could look to other means of contraception which are less permanent in nature. Reproduction capabilities of its subjects will not be affected and detractors may be appeased.

Notwi thstanding the shortfalls which I have addressed, I feel that this movement is good for the majority of society in the long run and should be applauded.

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I keep trying to report dengue risk but no one is listening

Letter from Md Arshad

THERE has been a recent outbreak of dengue fever in Telok Blangah, where I live. According to National Environment Agency (NEA) flyers pasted at my lift lobby, there have been 64 reported cases in the estate.

NEA officers conducted a check at my unit last month and everything was in order. However, I soon realised that the flat directly above mine had developed a flooring problem and water was leaking down through my ceiling.

I reported the issue to the Housing and Development Board on Sept 16. In the weeks that have followed very little has been done.

An HDB officer told me the owner is dragging his feet on rectifying the problem. Now I am unable to contact the HDB officer as his phone voicemail has been full for weeks and my emails have been met with silence.

There is now a new wet patch on my ceiling adjacent to the first one. Water keeps dripping onto my floor.

I decided to alert the NEA as I believe this is cause for concern with the rising number of dengue cases in the estate.

I called the agency on Sept 27 and was told an officer would get back to me. No one called me back. I called again the next day and was informed that there was no record of my call the previous day. I was again told that an officer would call me but again no one did.

I also sent an email to the NEA that night but have not had a response.

Last week, I managed to ask an NEA officer, who was on an inspection round, to take a look at the situation. He agreed it was an issue but told me it fell under the jurisdiction of the HDB.

I contracted dengue fever last Friday, from which I am now recovering.

Must there be a serious incident before action is taken?

I am trying to do the right thing with regard to the dengue situation, yet I am left frustrated.

Why the seeming apathy?

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seems "undertaker"

is asked to support

the PRICE at S$1.15

at ALL COSTS ? ? ? ?

JJSeng ( Date: 21-Oct-2010 14:46) Posted:

39mil queueing to buy at 1.15

x 0

O V E R H E A R D :

MIP is Yield Stock [pUre Dividend]

GLP is Growth Stock [nO Dividend]

x 0

O V E R H E A R D :

MIP is Yield Stock [pUre Dividend]

GLP is Growth Stock [nO Dividend]

x 0

China hides rampant inflation in money binge

Patrick Chovanec

Money, money everywhere. At least that’s what it feels like at the moment in China. Awash in luxury cars, condos and expensive jewellery, the Chinese are enjoying what looks to be an unstoppable boom.Bloomberg

The writer is an associate professor at Tsinghua University’s School of Economics and Management and is an independent fund adviser. The opinions expressed are his own.

>> China’s rate hikesand Singapore B1

Inflation figures due today should give pause to those who assume China’s economy is on sound footing. To an extent few appreciate, China’s astonishing growth rates these past two years have been fuelled by an even more astonishing expansion of its money supply, by more than 50 per cent. Until now, the inflationary consequences have been largely camouflaged in the form of rising asset prices.

High-end property prices in dozens of Chinese cities doubled during the global financial crisis. Sales of gold bars have done the same this year. Fine pieces of jade are selling at US$3,000 ($3,950) an ounce, up 50 per cent in the past couple of months, while packets of certain types of Da Hong Pao tea are going for US$30,000 a kilogramme.

Art and wine auctions in China are pulling in record prices, while the Shanghai stock market surged 8.5 per cent last week to the highest level in almost six months.

Now there are signs that inflation is spilling over into consumer prices. China’s CPI has been climbing steadily all year and Chinese officials are making noises about raising their CPI target to 4 per cent or even higher. Food prices gained 7.5 per cent in August, from a year earlier. Economists estimate wages are rising about 8 per cent. The HSBC Holdings Purchasing Manager Index survey for August reported a marked increase in input cost being passed along in higher output prices.

As inflation comes out from hiding, the authorities may be forced to sharply rein in liquidity, turning China’s cash-fuelled boom into a bust.

If it seems like there’s a lot of money sloshing around the Chinese economy, that’s because there is. Over the past two years, M1 expanded by 56 per cent, M2 by 53 per cent.

Currently, even with much-touted “cooling measures”, both are still growing at an annual rate of about 20 per cent.

Unlike the United States, China never really had a fiscal stimulus, where the government spends its own money directly.

The funding for infrastructure and other projects to juice up the Chinese economy came almost entirely from a boom in lending by the state-run banking system.

Last year, those banks made almost 10 trillion yuan ($2 trillion) in new loans — more than double any previous year — expanding the country’s loan portfolio by a third. This year, they will probably lend 8 trillion yuan, almost twice as much as in 2008.

Where did all that money come from?

It came from Chinese banks being allowed to draw down on their reserves, which opened up a cascade of new lendable funds throughout the entire system. China’s lending boom was, in effect, a massive monetary stimulus, or “quantitative easing”.

The pressure behind this monetary eruption had been building for some time.

For years, China has been running big trade surpluses. To maintain the yuan’s peg to the dollar, its central bank must buy up the excess dollars earned by Chinese exporters, to be stockpiled as foreign exchange reserves, and issue yuan in exchange. Normally, that newly issued yuan would add to China’s domestic money supply and fuel inflation.

To prevent that, the authorities try to “sterilise” the monetary expansion by forcing banks to hold higher levels of reserve deposits and buy special central bank bonds. In short, there was a huge reservoir of liquidity bottled up in China’s banks, just waiting to be let out. The low loan-to-deposit ratio of Chinese banks, often touted as evidence of their financial solidity, is really a product of pent-up inflation.

The main tool used to boost bank reserves was the annual lending quota imposed by the central bank. Since banks could lend up to the quota, but no more, most had no choice but to hold excess reserves beyond their reserve-requirement ratios. Then last year, the lending quota went out the window. Actual reserve ratios fell from 21 per cent to about 17 per cent.

China’s central bank issued more “sterilisation” bonds, but effectively, it stopped sterilising. Trillions of yuan, formerly locked up in bank reserves, flowed into the economy.

The amount of yuan created far exceeds even China’s nominal, stimulus-fuelled gross domestic product growth for the period.

When money is created at a faster rate than real economic growth, the result is inflation.

Yet so far this year, China’s official statistics show consumer inflation at barely over 3 per cent. Those figures have many economists scratching their heads, wondering where the inflation went, while most people in China seem content to believe their country has found a fantastic new formula for prosperity.

In reality, there is rampant inflation in China.

It’s just showing up in asset prices.

The new money that was created entered the economy as loans, mainly to fund investment in fixed assets. When it finally reached consumers, they bought tangibles, like property, instead of spending on consumer goods.

Asset-price inflation is tricky because it doesn’t feel like inflation.

When the price of bread doubles, it feels like it’s getting harder to make ends meet.

When condo prices double, it looks like smart investors are getting rich. But it’s only a matter of time before asset inflation starts working its way through the rest of the economy as broader price inflation — and puts China’s policymakers in a serious bind.