Heyzz, now's nt the time to complain- about the price rise.

Well, after 3 weeks, the exercise with the infantrymen is finally over. Lucky they have some conscience, and gave us a week off, so here I am with a week ahead of me.. free with little to do, except to try and fully immerse and enjoy civilian life. And that means going out once in a while, reading, playing computer, good bed, absence of the need to wake up at obscene hours, absence the need to do saikang. Sadly the rest of the guys are in camp now, even the guy that was awarded leave for dunno wad reason(that means you, yh) is now back in camp starting his jog for the 3rd chevron stripe.

In the span of these 3 weeks, alot of things have occurred in the outside world. There are things that have remained status quo. Things that have changed are the occurrence of the natural disasters. Things that have not changed is that prices are rising, and growth is slowing.

Raising money to aid disaster relief is undoubtedly a nobly affair, if the money goes to whoever that needs it. Except there really isn't any effective mechanism to regulate this. More than likely, the money is being very inefficiently used, and may even end up fattening certain private pockets. I dunno how to we regulate this charity money, maybe we need a set up an independent institution to watch over the institutions the receive these charity, but that sounds like more bureaucratic inefficiency to me. Besides, who will watch the watchers? Quis Custodiet ipsos Custodes..

It was not very long ago, that a very rosy picture was painted for the economic growth rate. Indirect taxes were raised (7% GST), and the reasoning was well explained. After all, the govt. is entitled to a little fruits of the labour. The timing could not have been 'better'. General price level rose a little, but it was considered to be ok. But the winds started to change, for several things are to happen at the same time, with the result of gaining momentum. US economy started to slide, after taking a hit from a credit crisis. The weakening of the US economy meant that demand for US dollars has dropped*, leading to a weaker US dollar. Oil, which is priced in US dollars, is now rising in price. Thanks to the weaker US dollar. Enter the stage, the rapidly growing China, with its rapidly rising consumption(inefficiently) of energy. And this serves to bump up the prices. Now, the with the oil price gaining momentum, enter the speculative tendencies of investors, who further pushes up the price of oil.

Result? We have the start of an inflation. Pile on the fact that US economy growth is slowing, it looks like we are facing a double whammy on both sides. The only outlet is to hope that China's and India's economic growth remains strong, and that the Euro Union's economy remains stable. But the stock markets are hot enough already. It looks set to cool off already. At that means lower money supply. And maybe the Chinese are then less willing to consume.

It looks like a damned if you do, and damned if you don't-kinda situation. The best that we can do, is to take the price rise more astutely, and reduce unnecessary consumption, and hope that incentives to attain greater efficiencies are finally here.