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Showing posts with label credible information & knowledge. Show all posts
Showing posts with label credible information & knowledge. Show all posts

Wednesday, May 24, 2023

The Bankrupting of America

 




 

US debt ceiling impasse and a default’s impact on Malaysia remains a concern

 

US debt issue may affect global demand


PETALING JAYA: With the United States currently being embroiled in a debate as to whether it should raise its debt ceiling before the June 1 deadline, concerns over the impact on Malaysia of the world’s largest economy defaulting on its borrowings were understandably raised among certain quarters.

This is all the more relevant when one considers the fact that the United States is Malaysia’s third-largest trading partner, with World’s Top Exports reporting that Singapore, China, the United States, Japan and Hong Kong contributing to more than half of Malaysia’s export revenue – 51.8% to be exact – in 2022.

The website also revealed that the United States accounted for US$38bil (RM173.5bil) or 10.8% of Malaysia’s export income in 2021, again behind only Singapore at 15% and China 13.6%.

Thus, it is not difficult to understand the oft-used adage, “When the US sneezes, the world catches a cold”, including of course, Malaysia.

Chief economist for HSBC Global Research Frederic Neumann had remarked on Monday that should the debt ceiling issue be drawn out of proportion, it could lead to a depression of US growth, and adversely impact Malaysian exports stateside, possibly even reducing global demand because of an increase in financial uncertainty.

The current debt ceiling is known to be at US$31.4 trillion (RM143.4 trillion), and reports from yesterday indicated that a resolution could be imminent.

Shedding more light on the matter, Centre for Market Education chief executive Dr Carmelo Ferlito said the debt ceiling can be raised again, but only if it can be voted through the House of Representatives, which has a Republican majority.

“The Republicans are trying to use the deadline to pressure President Joe Biden to agree to spending cuts.

“On April 26, the House approved a bill to raise the debt limit by US$1.5 trillion (RM6.85 trillion), but only on the condition that spending would be cut to 2022 levels and then capped at 1% growth per year,” he told StarBiz.

A simple analogy to illustrate the ceiling standoff is the case of a parent providing a teenage child with a credit card.

If the teenager exceeds the spending limit, and asks the parent for an extension of credit, it is only natural for the parent to go over the spending habits of the child before deciding to provide more credit, which has to be repaid.

If the ceiling is not raised and the US officially defaults, Ferlito said the consequences for other economies – including Malaysia – should be looked at more in the light of a general financial turmoil that the default could cause rather than the more immediate link with American bonds that firms or governments may have. 

“We do not see direct repercussions on Malaysia; rather, we foresee indirect effects in case of (a US) default, coming from a global financial turmoil,

He explained: “We do not see direct repercussions on Malaysia; rather, we foresee indirect effects in case of (a US) default, coming from a global financial turmoil.

“If there is a default, which is doubtful, there will be a financial shock and the entity of such a shock will determine how much it would impact Malaysia.”

He elaborated that a potential default and its effect on an exporting country like Malaysia can be seen as two separate phenomena, a sovereign debt default; and the business relationship between private entities.

Ferlito added: “Even if the US defaults, private companies can still transact independently from the scale of the mutual business relationship. What we have to fear more are the indirect consequences.”

Economists at Coface Services South Asia-Pacific Pte Ltd, Bernard Aw and Eve Barre, believe a breach in the debt ceiling would result in outlay cuts currently funded with borrowing while the US dollar would weaken, elevating yields.

“Such a default would also have an impact on global financial markets, which rely on the dollar as the world’s primary reserve currency and as a safe asset.

“For Asian exporters, a weakening of the dollar against their currencies would dampen their competitiveness, including for Malaysia as the United States represents its third-largest export market up to 2022,” they told StarBiz.

Although acknowledging that a negative impact on the US economy from reducing public spending would depend on the extent of those cuts, they pointed out that if an agreement leads to deep spending decreases, economic growth for the United States could be slower than the already sluggish 1.2% that Coface is forecasting for 2023.

Aw and Barre opined: “This would have a direct impact on Malaysia by reducing US demand for Malaysian goods but also on foreign investment.

“In 2021, the United States was the first source of foreign direct investment flows to Malaysia, accounting for roughly a third of the total.”

On the flipside, they projected that sharp cuts in US public spending are unlikely to be approved by the Senate, as it is controlled by the Democrats.

Meanwhile, approaching the problem from an investment perspective, chief investment officer for Tradeview Capital, Nixon Wong, echoed the economic view that a US default would have global ripple effects, including on the FBM KLCI.

“A default on US federal debt would disrupt imports of electronics and manufactured goods from Chinese factories to the United States, resulting in slower growth of orders in the entire supply chain that includes Malaysia.

“Reduced spending in the United States would lead to slower aggregate demand and import growth globally,” he said.

The effect could likely be seen on export-oriented companies on the local bourse, he said, including manufacturers of electrical and electronic and rubber products, as well as in the producers of metal, optical and scientific equipment.

He added that although Malaysia’s trade volume with the United States may be smaller compared to China, the repercussions from reduced US spending would still impact Malaysia’s exports, whether directly or indirectly.

History has shown that American political leaders have always managed to raise the debt limit before it becomes a crisis, and it is likely that this pattern will continue, Wong said.

“While there are debates and partisan divisions in Congress, it is expected that Republicans will seek spending cuts before supporting the raising of the debt ceiling.

“After all, the main agenda is to prevent a catastrophic event or severe fallout in the United States and global financial markets,” he observed. 

By KEITH HIEW

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After engaging in a protracted political showdown on raising the US national debt limit – capped at $31.4 trillion at the current stage – the White House and the Republican-controlled Congress reached an initial deal on Saturday which is heading ..

 

US President Joe Biden touted that the debt-ceiling deal will help the US avoid economic collapse, but experts warn that the US debt-ceiling crisis is a systemic problem that will erupt periodically, and that rising US debt is severely undercutting the credit of US assets and status of the US dollar.

 

 

 US urged against passing risks to world amid growing chance of a US default

A Chinese official on Tuesday warned of the significant spillover effect of US domestic policies and urged Washington to avoid passing on domestic risks to the rest of the world just to protect its own interests. The comment came after US leaders failed to reach a deal on the debt ceiling issue, with the deadline to avert the first-ever default approaching rapidly.

 

Related posts:

 

Will US debt ceiling deadlock push capital to yuan market?


Should we be worried about debt? 

 

US the biggest obstructer of global recovery in 2023, Ballooning US debt a ticking time bomb for world economy

 Washington’s unsustainable deficit hangs over global economy

 

The strong dollar should not become a sharp blade to cut the world, THE NEED FOR BRETTON WOODS III

 

Global de-dollarisation fast underway; US Printed More Money in One Month Than in Two Centuries, US$ is fast becoming Banana Currency

Tuesday, March 21, 2023

Keep your bones strong and healthy

 

Keep your bones strong and healthy - The Star

 BONES are a very important organ in our body and have many functions. Its role includes providing structure, protecting internal organs, anchoring muscles and storing calcium.

They also facilitate movement and are important for blood cell formation. Therefore, maintaining bone health is very important for everyone.

Normal bone metabolism is the complex sequence of bone turnover (osteoclast activity) and bone formation (osteoblast activity). The bones are continuously changing, where the old bones are broken down and replaced by new bones. This process is regulated by hormones such as parathyroid hormones, calcitonin, oestrogen, androgens, growth hormone, thyroid hormones, Vitamin D and steroids such as glucocorticosteroids.

Consultant orthopaedic surgeon at MSU Medical Centre Dr Ruzaimi Md Yusoff says, “Most people reach their peak bone mass around the age of 30. After that, bone remodelling continues, but you lose slightly more bone mass than you gain because of a decrease in osteoblast activity.

“The higher the peak of bone mass, the less likely for us to develop osteoporosis at a younger age.”

What affects bone health

The following are the risk factors which can affect bone health. Modifiable risk factors are:

Diet. A low calcium intake will cause low bone density and will lead to early bone loss causing a higher risk of fractures. Not getting enough vitamin D can also increase the risk of osteoporosis.

Physical activity. Not exercising and not being active for long periods can increase the chances of getting osteoporosis.

• Body weight. Maintaining an ideal body weight is important for bone health. This is because an extremely thin individual will have lesser bone mass.

Smoking. Research suggests that tobacco will increase the risk of osteoporosis. Women who smoke also go through menopause earlier than those who don’t smoke.

Alcohol. People who consume a lot of alcohol are more likely to get osteoporosis.

Medicines. Certain medications can affect bone health. Prolonged usage of corticosteroid medications such as cortisone, prednisolone and dexamethasone can be damaging to the bone.

Non-modifiable risk factors are:

Age. Advanced age causes thinning and weakening of the bone.

• Gender. Women have a greater risk of osteoporosis as they have less bone tissue than men. Women also lose bone faster than men because of hormonal changes that occur after menopause.

Ethnicity. Caucasian and Asian women are more prone to osteoporosis.

• Family history. A strong family history of osteoporosis predisposes an individual to develop osteoporosis at an earlier age.

Maintaining healthy bones

Maintaining bone health is important to prevent or slow down the process of bone loss.

Dietary calcium intake is extremely important. The recommended dietary allowance (RDA) of calcium for female adults aged 19 to 50 years and males aged 51 to 70 years is 1,000mg per day. The recommendation increases to 1,200mg a day for women aged 51 years and older and for men aged 71 years and older.

Good sources of calcium include dairy products, almonds, broccoli, kale, canned salmon with bones, sardines and soy products such as tofu.

Calcium supplements may also be prescribed by a doctor if needed.

Adequate vitamin D intake is important for calcium absorption. For adults aged 19 to 70 years, the RDA of vitamin D is 600 international units (IUS) a day. The recommendation increases to 800IUS a day for adults aged 71 years and older.

Good sources of vitamin D include oily fish such as salmon, trout, whitefish and tuna. Sunlight also contributes to the body’s production of vitamin D. Supplements may also be prescribed if indicated.

Physical activity especially weightbearing exercises such as walking, jogging and climbing stairs can build strong bones and slow the process of bone loss. Last but not least, avoid smoking and limit alcohol intake to help delay osteoporosis.

Signs of bone health problems

There are some signs of osteoporosis that we should look out for:

• Receding gums. A dentist might be the first person to spot signs of osteoporosis. Research suggests that if there is significant bone loss in the jaw, it could be a sign of bone loss in other areas of your body.

Chipped or brittle nails. Chipping a nail frequently could be a sign that other bones may also be brittle. Those who have low levels of collagen or calcium in their nails also do not have enough calcium in their bones.

Weakened grip. Have you started to notice that you cannot turn the doorknob easily? The strength of the handgrip and the density of the bones in the arms, hips and spine are directly related.

Fractured bones. The hips, spine and wrists are the most common body parts to fracture. Fractures occur from trivial trauma such as slight knocks, bending over or lifting items.

When to see a doctor

It’s important to seek medical attention for any type of bone pain, especially if the pain is severe, persistent, worsening over time or associated with swelling, redness, warmth, a fever, unintentional weight loss or a palpable mass or lump.

Since osteoporosis does not have any symptoms until a bone breaks, it is important to talk to your doctor about your bone health.

If your doctor feels that you are at risk for osteoporosis, a bone density test may be performedto measure the density of your bones, and assess for osteoporosis and risks of breaking a bone.

Doctors may prescribe medicine if your bones are weak and have a higher risk of osteoporotic fracture in the future. These include bisphosphonates, oestrogen agonists/antagonists, calcitonin, parathyroid hormone, oestrogen therapy and hormone therapy. 

By Dr Ruzaimi Md Yusoff. 

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Related:


Food for your bones | The Star

 

Bones need more than milk (and calcium) - The Star

 

Boning up on bones | The Star

 

Malaysians not doing enough to maintain bone health | The Star

 

Combating Bone And Muscle Mass Loss | The Star

Keeping the bones and muscles strong from an early age is crucial for mobility and independence later in life.

No bones about it | The Star


 
 
 
 

Wednesday, March 15, 2023

Know how this vital law protects you from fraud

 

Photo: 123rf.com

CONSUMER protection laws are designed to safeguard consumers and ensure they are not subjected to fraudulent or unethical practices by businesses. One such law in Malaysia is the Financial Consumer Services Act 2013, which aims to protect consumers from unfair or deceptive practices by financial institutions.

One issue that has received increased attention in recent years is “mis-selling” by banks selling investment products to its depositors. Mis-selling refers to the practice of selling financial products to consumers that are not suitable for their needs or financial situation, which can often result in significant financial losses.

Banks have been known to engage in mis-selling by aggressively pushing investment products such as mutual funds, stocks, and insurance policies to their depositors without adequately disclosing the risks involved.

The Financial Consumer Services Act (FCSA) seeks to address this issue by imposing strict requirements on financial institutions to ensure that they act in the best interests of their clients.

FCSA requires financial institutions to disclose information about their products and services in a clear and concise manner, to ensure that consumers can make informed decisions.

It also provides for the establishment of a dispute resolution mechanism to enable consumers to seek redress for grievances.

In addition, the Act requires financial institutions to obtain sufficient information about their clients’ financial situation and investment goals before recommending any investment product.

This is particularly important if customers do not have the same level of knowledge or experience as more seasoned investors.

The Act also provides consumers with greater protection in the event of a dispute. It establishes an independent dispute resolution mechanism that is fair and impartial to resolve complaints and disputes between consumers and financial institutions.

In addition to this, the FCSA provides for compensation for consumers who have suffered losses as a result of mis-selling. Financial institutions are required to establish complaint handling procedures that enable consumers to make complaints and seek redress. These procedures must be transparent and accessible, and financial institutions must take reasonable steps to resolve complaints in a timely and efficient manner.

The FCSA also provides for enforcement measures to be taken against financial institutions that engage in unfair and deceptive practices. This includes fines, penalties, and other sanctions that may be imposed by the regulator.

These measures are designed to deter financial institutions from engaging in practices that are harmful to consumers.

It is important to note, however, that consumer protection laws are only effective when they are enforced. Financial institutions that engage in mis-selling must be held accountable for their actions, and consumers must be empowered to seek redress when they are harmed. This requires a strong and effective regulatory framework, as well as consumer education and advocacy to ensure that consumers are aware of their rights and able to protect themselves.

The FCSA is an important piece of legislation that plays a vital role in protecting consumers in the financial sector.

It provides consumers with greater transparency and clarity in financial transactions, and ensures that they are not subject to unfair and deceptive practices.

The provisions of the Act relating to the mis-selling of investment products by banks are particularly important, as this is a problem that has affected many consumers in the past.

With the FCSA in place, consumers can have greater confidence in the financial sector and can be assured that their rights and interests are being protected.

- PROF DR ONG TZE SAN School of Business and Economics Universiti Putra Malaysia 

Source link

 

Financial Services Act 2013 - Bank Negara Malaysia

 


https://www.bnm.gov.my/documents/20124/820862/Financial+Services+Act+2013.pdf

 

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Thursday, February 23, 2023

World peace a top priority

 Core concepts and principles of the Global Security Initiative Concept Paper

Graphic: Deng Zijun/GT

China released "The Global Security Initiative Concept Paper" on Tue, elaborating ideas and principles, clarifying cooperation mechanisms and underscoring China's responsibilities and firm determination to safeguard world peace. 

 

 China issued a Global Security Initiative Concept Paper on Tuesday, elaborating on innovative core concept and principles, firmly supporting a UN-led governance structure and the UN's role in preventing war and forming peace: Chinese Foreign Minister Qin Gang

 China is ready to engage in bilateral and multilateral security cooperation with all countries, firmly upholding the consensus that "nuclear war cannot be won and must never fought" while rejecting an arms race and promoting the political settlement of hot spot issues: Qin 

 China will continue playing a constructive role in pushing forward dialogue and negotiation on the Ukraine crisis. We urge relevant countries to stop fanning the flames of war and provoking the claim that "today's Ukraine is tomorrow's Taiwan": Chinese Foreign Minister


BEIJING: China has issued a landmark document to explain in detail its proposed Global Security Initiative, a move diplomats and experts say will help the world better understand China’s approach to building world peace through coordinated efforts between countries.

“The Global Security Initiative Concept Paper” was released on Tuesday at a Lanting Forum event hosted by the Foreign Ministry in Beijing.

The initiative was proposed by President Xi Jinping in April last year. Currently, over 80 countries and regional organisations have endorsed or supported the initiative, Foreign Ministry spokesman Wang Wenbin said on Tuesday.

The paper elaborated on Beijing’s holistic thinking on the initiative’s background, core beliefs and principles and priorities for cooperation as well as platforms and mechanisms to serve such collaboration.

The paper called on nations to stay committed to the vision of “common, comprehensive, cooperative and sustainable security” and “take the legitimate security concerns of all countries seriously”.

Among detailed areas for greater coordinated work are preventing a nuclear war and “promoting political settlement of international and regional hotspot issues”.

China also vowed to hold high-level conferences on the initiative to strengthen policy communication and promote intergovernmental dialogue and cooperation.

Foreign Minister Qin Gang said while addressing the forum that “security should not be monopolised by certain countries”, as it is a legitimate right of all countries.

China has always been committed to promoting peace and dialogue, Qin said, adding that the paper demonstrates China’s sense of responsibility for safeguarding world peace and defending global security.He said outside attempts to suppress and coerce China have been stepped up, posing a serious threat to its sovereignty and security.

“China is a major country and its development will not be achieved without a secure international circumstance. Likewise, the world will not enjoy security without China’s security,” he said.

Siyabonga Cwele, South Africa’s ambassador to China, said what impressed him most in the paper was that China, as a big country, was still committed to not becoming hegemonic or bullying others.

“We hope all developed countries can follow that path of not using their economic or military strength to coerce others, but working with others for common prosperity for all,” he said. — China Daily/ANN 

Source link

Paper details way to achieve world peace - Chinadaily.com.cn

Paper details way to achieve world peace

By ZHANG YUNBI | chinadaily.com.cn | Updated: 2023-02-21 23:42
Foreign Minister Qin Gang addresses the Lanting Forum on Tuesday in Beijing. [Photo by Wang Zhuangfei/ China Daily]

 

Professor Richard Wolff: Dangerous Motives Behind US Aggression Toward Russia and China


 

 Professor Richard Wolff joins Julianna Forlano to discuss the danger to world peace posed by Biden's recent aggressive rhetoric toward Russia and China. He also unveils the true economic reasons for the attacks. Another must-watch interview. 

Professor Wolff is an American Economist, known for his work on economic methodology and class analysis. He is Professor Emeritus of Economics at the University of Massachusetts Amherst, and currently a Visiting Professor in the Graduate Program in International Affairs of the New School University in New York. Wolff has also taught economics at Yale University, City University of New York, University of Utah, University of Paris I (Sorbonne), and The Brecht Forum in New York City. 

For info on Richard Wolff go to: https://www.rdwolff.com/ 

And make sure to follow him on Twitter at: https://twitter.com/profwolff For more Julianna, follow her on Twitter at https://twitter.com

/juliannaforlano and @juliannaforlano on Instagram and Facebook!

 ——— 

act.tv is a progressive media company specializing in next generation live streaming and digital strategy. Our YouTube channel focuses on animated explainers, livestreams from protests around the country, and original political commentary. Main site: http://act.tv Facebook: http://facebook.com/actdottv Twitter: http://www.twitter.com/actdottv Instagram: http://www.instagram.com/actdottv YouTube:    / actdottv   Twitch: https://www.twitch.tv/actdottv @actdottv #DoMoreThanWatch

 

China urges Russia-Ukraine ceasefire, offers path to peace in position paper, shows sincerity in global governance

On the one-year anniversary of the Russia-Ukraine military conflict, China restated its calls for political settlement of the Ukraine crisis with more specific plans that accommodate the concerns of both Russia and Ukraine, in a neutral and consistent manner.

Absurdity behind ruthless wars

One year since the Ukraine crisis, it is worth looking into how the US kidnapped war with stories, used “hegemonic ...

 

 
Time will prove the enormous value of China's position paper: Global Times editorial

What this document shows is China's sincerity and goodwill in actively promoting peace talks.

How US manipulates Russia-Ukraine conflict with lies

One year since the Ukraine crisis, it is worth looking into how the US kidnapped war with stories, used “hegemonic ...

 

Saturday, February 18, 2023

Learn­ing is key to resi­li­ence in busi­ness

 

NINE out of 10 learn­ing and devel­op­ment (L&D) pro­fes­sion­als in this region believe that pro­act­ively build­ing employee skills for today and tomor­row will help nav­ig­ate the evolving future of work.

L&D helps organ­isa­tions thrive amid uncer­tain eco­nomic times and a people-cent­ric cul­ture recog­nises that organ­isa­tional suc­cess depends on people’s suc­cess.

  

Man­age­ment, com­mu­nic­a­tion and sales are some of the top in-demand skills that are highly sought after by com­pan­ies in Malay­sia, accord­ing to Linkedin’s latest “Work­place Learn­ing Report”. 

Since upskilling and reskilling are essen­tial, over half of those L&D lead­ers across Malay­sia, Singa­pore and the Phil­ip­pines sur­veyed expect to have more spend­ing power in 2023.

The report said reten­tion is a big issue as 93% of organ­isa­tions are con­cerned over it.

This is so since many organ­isa­tions grappled with unpre­ced­en­ted employee turnover in the pan­demic’s wake.

And even while some lay­offs have made head­lines in recent months, tal­ent devel­op­ment pro­fes­sion­als con­tinue to grapple with skills short­ages and turnover risk for crit­ical tal­ent.

It is not sur­pris­ing that attri­tion anxi­et­ies per­sist.

People who are not learn­ing nor­mally leave organ­isa­tions as they do not fit or grapple to under­stand the new ways of doing things. 

Com­piled by B.k. SIDHU bksidhu@the­star.com.my 

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