Inflation is not going away.

Between inflation and deflation, governments would rather have the former. However, if inflation remains elevated over a prolonged period, then, we will have problems aplenty.

I am not an economist and this is not going to be an economic essay. This blog post is inspired by a report by Bloomberg which says how elevated inflation in Singapore is persistent and unlikely to go away. The repercussions are real and grim.

As the negative effects of inflation would affect middle to lower income earners more than the rich, it is even more urgent that we do something to at least protect our wealth.

Sections from Bloomberg's report:

Singapore is grappling with the elevated inflation that comes with years of economic growth and population expansion on an island smaller than New York City, with rising demand fueling record property and car prices.

Singapore has the highest inflation rate among 27 economies with GDP of at least $100 billion and classified by the International Monetary Fund as advanced. The island’s inflation has exceeded 4% every month but one since November 2010, more than double the 1.9% average in the past two decades.

Singapore, which uses the exchange rate to manage inflation, unexpectedly refrained from slowing the pace of its currency’s appreciation in its October policy review even after the economy contracted last quarter. The Singapore dollar’s 6.4% gain this year has done little to damp inflation stemming from domestic price pressures.
Higher car and property prices and the measures to tighten rules on hiring overseas workers are driving up the “overall cost structure” of the economy, spurring inflationary pressures that are a result of “self-imposed” policies, according to DBS Group Holdings.

I have shared my thoughts on wealth creation here on a regular basis. We want to grow our wealth but for many, taking the step to at least protect their wealth from being eroded by inflation would be significant and, in certain cases, it would be quite an achievement. All of us have different circumstances, after all.

It is more important now than ever before that we make sacrifices and put in place plans to secure our financial future in a world that is increasingly uncertain. People who still think Singapore will continue to do well simply because we are in Asia, the future global growth engine, should hedge their positions. Things could get worse.

Read Bloomberg's report: here.

Related posts:
Go to the right side bar and look for the box with the label "Wealth Creation: Beating inflation" for my earlier blog posts on the topic.

Don't build traps for ourselves. (FKA "The worst type of readers.")

We might have all heard of the saying that "no publicity is bad publicity". 

Well, it is generally for people in the entertainment industry since anyone who wants more people to recognise them and be aware of them would "benefit" from all forms of publicity.

After photos of his sexual escapades were made public, Edison Chen was able to land a deal with Carl's Jr. to be their spokesperson for the launch of their "Thick Burger" in Asia! 

What a boon from his indiscretion!





Well, in the last two days, off the top of my head, traffic to my blog increased by some 25 to 30% because of an edited version of an old blog post of mine appearing in Yahoo! Finance Singapore.

I am still trying to fathom if this is good news or bad.

Follow the link to Yahoo! Finance Singapore and you will see tens of comments and almost all are negative. 

Many are downright rude while most are dismissive. 

So, this is bad, isn't it?

I cannot draw the conclusion that it is bad because none of these negative comments appeared in my blog. 

So, the writers of the negative comments probably did not visit my blog at all. 




They made assumptions and passed judgement based on one edited version of an old blog post of mine.


Then, what about all the traffic that Yahoo! Finance Singapore sent me? 

These are probably people who are more open minded and who bothered to find out more about me and my ideas. 

So, this should be good, right? 

The willingness to find out more could be the first step to a new journey.

After blogging for almost three years, I have encountered many types of people. 

There are many who are appreciative of what I have done although I am not sure that I am all deserving. 

There are also rude ones who called me names and even questioned my motives. 

I am very sure I don't deserve such treatment. 





However, these are not the worst. 

Not the worst?

I believe the worst are those who pretty much dismiss what I have shared to be fairy tales.

The worst are those who think that I am a prolific fiction writer and that my claims that people can escape wage slavery are spurious.

Actually, for those sceptical readers of the edited version of that particular blog post of mine in Yahoo! Finance Singapore, if they would only make the effort to visit my blog and read the unedited version including the comments left by some readers, they would be able to appreciate how it is all possible.





A life with greater financial security for any regular wage earner who is not disadvantaged in any way is possible.

Often, the traps we find ourselves in are built by ourselves.










 

Related posts:
1. Article published in Yahoo! Finance Singapore.
2. Do you want to be richer?
3. Wage slaves should be fearful.
4. ASSI is an affiliate of BetterWorldBooks.