People had asked me how the United States can overcome the sub prime crisis they are in right now. As speculated, the sub prime crisis has transformed itself into a major economic crisis in the US. It’s tentacles have reached many other areas in economic superstructures around the world. In my humble opinion and also the opinion of all Pakatan Rakyat’s supporters, there is only one way to overcome the economic crisis in the United States.
Get Anwar Ibrahim to be the US economic adviser.
Due to his brilliant economic background, he will shorten the NPL criterium to 3 months, increase the interest rates to 20% or more so that the dollar can appreciate, and of course, he will stop the US government from bailing out companies. His austerity measures and creative destruction approach will surely rejuvenate the world’s economy and bring back the bull into the stock markets worldwide.
Not only that, he will get the US to stop giving subsidies to the wheat farmers in the US and other forms of subisidies in that country. This will definitely kick start the economy on the right track.
I’m sure if he has not already been appointed as their economic adviser, Anwar Ibrahim is working really hard and cracking his head on how to save the world from this potential economic disaster never been seen since the Great Depression of the late 20’s. How else could you explain his silence and absence for the past week or so? Maybe he is in Washington D.C. right now!
Since the US will be in the good hands of the Darling of the Western Media, their economy will rebound in no time. Take this excerpt in an article by the International Crisis Group for example;
In the midst of Asian Financial Crises of 1997, Anwar was hailed for guiding Malaysia through this period of instability. He backed free market principles and called for “creative destruction”, highlighting the need to reconsider the proximity of business and politics in Malaysia. He advocated for greater accountability and refused to offer government bail-outs to companies facing bankruptcy. He also instituted widespread spending cuts and cut government expenditure on mega projects. These prescriptions saved the Malaysian economy and earned Anwar many accolades, including the title “Asian of the Year” by Newsweek International in 1998.
Thank God we have Anwar Ibrahim at that time to save our economy and propelled Malaysia into greater heights after 1997! Without him, we may have found ourselves deeply indebted to the IMF and our strategic local businesses and industries may be pried open for corporate raiders to feast upon.
His uncanny ability to articulate his economic credentials is a breath of fresh air when comparing to other economic expert wannabes like Dr Mahathir or Paul Krugman or even Henry Paulson.
Anwar, as the adviser will definitely tell the American government why waste USD700 billion just to bail out their banking industry? In Malaysia back in 1998, Anwar was against any government bailouts. Citing creative destruction, the prospect of letting huge banks like Maybank and Hong Leong Group etc with thousands of workers go bust was vital in the pursuit of good governance and being market friendly.
Unfortunately, Malaysia went ahead with the setting up of special vehicles such as Danamodal and Danaharta. These SPVs were responsible in buying all the NPLs and help free the banking industry from the credit crunch and pumped the much needed liquidity in the market. How irresponsible the government was!
Coming back to the matter at hand, Anwar will also tell the US SEC (equivalent to Malaysian SC) to not impose capital control ala Malaysia or China. There are plans that the SEC are going to extend the ban on short selling in the share market. This is a big no-no in the free market economies. Why penalise the fund managers in doing their jobs? After all, they are selling the shares and only making small gains from their own selfless deeds.
Anwar, with his credentials as the economic adviser for the Republic of Turkey will definitely prove a boon for the US economy. Turkey, with him as the adviser since 2005, had progressed to greater heights economically. Their borrowing rate is currently 16.75%! This will not last long as due to high inflation (over 10%), the Central Bank of Turkey will increase it by 50 basis points to 17.25% soon.
Thank God Anwar was there!
With his help as a bridge between Turkey and the IMF, the country managed to secure new loans from IMF totalling USD10 billion (RM34 Billion). This is on top of the outstanding loan of USD16 billion they received much earlier.
As the result, their budget deficit increases from 0.6% in 2006 to about 2.5% – 3% in 2008-09. A job well done for Turkey’s brilliant economic adviser.
So you see, the solution is simple. Anwar Ibrahim, the greatest saviour of Malaysia will use his expertise in economics and help save the world from the worse economic crisis since the Great Depression. We should definitely elect him as our Prime Minister.
Bush and Lee Kuan Yew will be so proud.