Today, I finished studying econs at 1 am. I decided to stay up to watch Liverpool vs Aston Villa and found out that Starhub preview channel stopped airing for free yesterday. Tired,I went back to sleep and was late for my exam, couldn't finish the paper and found out Liverpool lost. FML
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"
I wish I could go back because I can't stop myself, from falling in love with you."
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I really wondered, how come I always couldn't get to sleep one day before the start of any examinations. I really tried to hypnotize myself to the extent of counting sheeps but nah, couldn't do it. I ate drowsy pills, not working too. I tossed and turned for at least one hour I believe before unknowingly falling asleep and the next thing I know, I have to wake up like NOW.
GP was alright and I did the question on whether the next few decades, Asia will dominate. Obviously yes and I talked about abundance of labour (think China), political stability (think S'pore) and can't remember the last point. Just bullshitted my way through with some random facts to support my arguement blah blah.
History's tomorrow,damn I don't know why I suddenly suck at History but I will try my very best to memorize everything that happen from 1945 to 2000 in my brain by tonight and a slight revision tomorrow morning and off I go, TO VICTORY!
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I can't post pictures on blogger, again. A blog without pictures is like Rome without pizzas, okay I tried to make it rhyme, obviously I failed. Maybe I should join haikal at tumblr, sorry blogger but if things don't return to normal soon I might abandon you.
I have to watch my words from now on because someone of higher authority *ahem* knows my blog haha. Are you reading this sir? But making the blog private is so redundant, it defeats the whole purpose of a blog! Unless you want to write something so personal that ohhh noo, you guys can't read it because I am afraid that you don't deserve to know such stuffs. I strongly believe that blogging should be done.. liberally and this form of new media is a good way of expressing your thoughts that even our prime minister is encouraging it.
Political sensitive content or any that can destroy our beloved multi-racial society is a no-no.
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What will it be like to be jailed in your own house? If you guys happen to be more aware of the current affairs happening in the world right now like just today, Aung San Suu Kyi will be under house arrest for 3 more years. Non-history students or any laymen out there will be like: Who is this Suu Kyi guy?
Actually, it's a she. Daughter of the great nationalist Aung San of Burma who single-handedly led Burma to independence after world war 2. Aung San Suu Kyi was on her way in becoming the prime minister of Burma after the 1990 general elections but screw those military bastards, they actually placed her under house arrest.
You think under house arrest not so bad right, you think again ah. No forms of communication with the outside world, even if there is it will be monitored by the authorities. Thats it, no Facebook, no DotA. Moreover, Aung San Suu Kyi charges were not justified!
Talking about politics, I happened to stumble upon a interesting fact about our Prime Minister. He is the number one politician who has the highest pay of all, even higher then Barack Obama with a whooping annual salary of S$3.76 million. Now I know where my burger fine end up to...
Labels: mind-boogling thoughts
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Does depreciation or devaluation (by the way, they mean different things) always work to correct a BOP or Current Account Deficit??
Well, assuming Marshall Lerner condition applies, it works – but only in the long term.
Why does this happen?
Let’s take the example of Singapore, which buys raw materials from China, and sells the finished products to USA.
China and Singapore
Let’s say before depreciation of Sing dollar, the exchange rate was 5RMB to 1SGD; after the depreciation, it was 4RMB to 1SGD.
This means that previously, 1SGD can buy 5RMB worth of goods, but now? Only 4RMB. There is a decrease in the external value of Sing dollar.
Still, due to contractual obligations, Singapore firms must continue buying from China until the contract expires. Furthermore, the Chinese will still want to be paid at 5RMB – the previously agreed upon terms. (It’s a bit like giving tuition to foreign students – no matter what the exchange rate in their country is, high or low, the tutor still gets the same fixed, agreed upon fees.)
But previously, Singapore firms were forking out only 1SGD for 5RMB, now they have to fork out 5/4*1 = 1.25 SGD instead – to buy the SAME AMOUNT OF RAW MATERIALS from China.
Imagine Singapore firms paying Chinese partners SGD 1m in the past – that means a whopping 1.25m now! Another $250,000 more! Due to depreciation!
THIS APPLIES TO THE IMPORT SECTOR OF S'PORE! THUS THE DEMAND FOR IMPORTS IS PRICE INELASTIC IN THE SHORT RUN
Singapore and USA
Let’s say before depreciation, the exchange rate was 1SGD to 0.75 USD; after the depreciation, it was 1SGD to 0.5 USD.
The Americans need to pay so much less in order to pay us the same 1SGD (remember, they always pay us in SGD – and to do so, they convert their currency into our currency).
Buying goods from Singapore is so much cheaper now for Americans. Obviously, they are going to demand more since lower prices mean A LOT MORE quantity demanded (it’s technically called more than proportionate – remember, I assumed ML condition holds).
But the problem is, it takes time for the new contracts to be drafted, and it also takes time for the Singapore firms to pool resources e.g. hire more people to meet the new orders (in short run, supply is inelastic).
THIS APPLIES TO THE EXPORT SECTOR OF S'PORE! THUS THE SUPPLY OF EXPORTS IS PRICE INELASTIC IN THE SHORT RUN
So that means, in the short term:
1) We are converting more Singapore dollars to pay China, honouring our contractual obligations.
2) We are still selling the same amount of goods to USA, hence getting the same number of Sing dollars (not more).
Obviously there will be a worsening in the current acc deficit in the short run.
In the long run, however, Singapore firms will be negotiating to decrease raw materials costs (or changing the Chinese suppliers to find cheaper alternatives), and increasing the output to meet new demand from USA.
Thus, assuming Marshal Lerner condition holds, depreciation will improve current account deficit, but only in the long run.
Special thanks to aceitall.wordpress.com
Labels: my life as a student
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I was flabbergasted when Macus told me that TPJC JC2s will not join the JC1s in celebrating national day like what all schools did on Friday. They are seriously damn scared of their current batch doing badly for the 'A' levels where they implement the 7pm-9pm structured revision period for those doing badly.
Well..SRJC is also kiasu but not to that extent. We hold our 3rd Thanksgiving concert on Friday in conjunction with the national day celebrations. Even though the early morning math lesson was unnecessary as all it does is spoil our day, we are expected to be in school by 5pm. As expected.. we are late, AGAIN. This time is my fault because I met Haikal late at his bus stop. Mr Nahar gave me a good dressing down about my late-comings and attitude problems but hey, i don't give a damn about what you think about me Mr Nahar.
When we were slowly ushered into the hall, it was like walking into a night club. The school invited some IT professionals to set up the hall and the sound systems was like in a club and the atmosphere with the dimmed lights and stuffs. They even played club songs like "Boom boom pow" and "Just Dance". The concert was a blast, the GP and Lit dept performance of "And all the Jazz" was sweeet and also the Humanities dept was the cutest! Super Mario and Sonic was damn epic, I WANT THAT MARIO SUIT HAHA.
The Science and PW dept performance was one of my favourites too. Which performance I don't like ah? The PE and the Math dept. Seriously are they taking this concert seriously like the other dept? After the concert was photo-taking time and everyone was snapping away with their best friends,teachers and loved ones. I took a few only as I don't know where the rest of our class went to and thanks to someone who pushed me to ask someone for something, I am going to treasure it ;)
Labels: my life as a student
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The root of all evil, meritocracy. The mention of it send shivers down my spine, why am i being constricted by it? There are too many loopholes in this meritocratic system we practiced. I am disgusted by the fact that the government just finds that exams is the easiest way to sieve out the talents and that's just retarded. Are we going to just study what the government deemed as 'important'? Indeed it is important for the government as they require people with such skills from the talent pool but is this what we want?
Instead, they should let people choose what they really want to do and giving guidance along the way so that our society will not be flooded with mathematicians or economists. Look at the number of math and economics teachers in Singapore, is teaching these subjects what they wanted? Try lowering the salary and assurance and I can assure you the iron rice bowl of teachers will shatter and there will be lesser teachers-wanna-be.
We need people like YOU, to voice out.. to do what you really wanted.
Want to be a top chef, go ahead.
Want to be a porn star, go ahead.
Want to be a film maker, go ahead.
Don't limit yourself because of the circumstances you're in, just do it.
Labels: mind-boogling thoughts
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http://www.fmylife.com/
Tuesday, August 25, 2009