Friday, October 17, 2008

MM Lee says rethinking of global financial system needed

Singapore's Minister Mentor Lee Kuan Yew said when the current financial crisis is over; there will be a rethinking of the international financial system.

In the next 10 to 30 years, the Indian and Chinese currencies may also have to be figured into the equation.

Mr. Lee was speaking on Friday at a dialogue session that was part of the Global Indian Diaspora Conference held in Singapore.

He said: "You will have to factor in over the next 10, 20
years; India will be playing a bigger role. The Rupee will become an important world currency as the Indian community grows so will the Chinese Yuan or Renminbi.

"All these will have to be factored into the global financial system. I see that this has to be an inevitable trend - as the economy of the world, the central gravity, shifts from the Atlantic to the Pacific.

"It may take 10, 20, 30 years. Definitely by 20 years, 30 years, China will equal the US in total GDP. India will be bigger than any European country."


We shall know by then, sir?

For the moment, just tighten our belts.

One thing keeps puzzling us: Why is that when Wall Street tumbled, USD went up!


Kelana Sukardi said...

A small comment here: On what basis Is Mr.Lee talking about. Can anybody tell!. I am agnostic about what he said on China and India being the economic giant in currencies and GDP but I'm certainly sure that he wont be around the next 10,20,or 30 years to see these happening, My reason being the American and the European Jews who are in control of world economy would never allow this to happen for as long as they would want to treat these countries and others as their cash cows. said...

I have read LKY's two books: Spore: The Early Years and From Third World to First about 4 years ago. They are very interesting and thought provoking. Spore would not be what it is today if not for the far-sighted Harry Lee( Yes, he has a Christian name).He is not only a brilliant scholar ( a double first from Cambridge U ). but also a great statesman who is internationaly respected. He laid the foundation for a highly efficient civil service
and a corruption free administration. Spore is only a small island with no natural resources and during the 50s and 60s, its economy depended largely on the huge British Naval Base stationed there. Lee foresaw the inenvitable withdrawal of the Far East naval base as the British empire began to lose its shine as time went by and began to look for alternatives for its economy and survival. I followed his series of "Fight for Survival" radio talk over RTS every night in the 60s
and they were as exciting as James Bond movies. What LKY says now has merits. Asia is now a rising economic power house with giants like China and India waking up from their long hibernation and ready to take on the US and EU.
Japan, South Korea, Taiwan and Spore are aleady
advanced economies. China is overtaking Japan as the world's largest economy after the US. In sports, China has beaten the US to 2nd place in the gold medal tally and catching up in space exploration. If the new US President can overcome the present economic tsunami that hits the US now, the US still has hope to remain at the top in 2009 and beyond. If the US fails, many countries the world over will suffer great hardship bc of the spillover effect. In this era of globalisation, no country is safe if another is in trouble. So we don't want the US to fail. We want the US to succeed so that all nations in the world can prosper together and live in peace. Amen. said...

Many big businesses are facing financial problems and declining profits but not for Warren Buffet, now the world's richest man. He still makes money in these trouble times while others are retreating. He says, " Be fearful when others are greedy. Be greedy when others are fearful." He also advises, " If you wait for robbins, spring will be over." That's food for thought for our rusty brains.

Ghazanfar said...

As long as the financial system or money system is based on surplus money we will widen the gap between rich and poor.