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Wednesday, 23 November 2016

How Much Confidence do People Have in The Ringgit?


1USD=RM4.44 (sei sei sei/ 死 死 死)




Joe Fernandez
 
Joe Fernandez says : 
 
The ringgit is not legal tender outside M'sia.

Why should it be accepted by money changers abroad?


RM can be converted into local currency via ATMs abroad.

Money, like knowledge, is intrinsically worthless.

What gives it "value" is an idea (paper money) based on confidence.

The idea stems from the confidence that if I were to accept your paper money, for goods and confidence I give you, I would be able to exchange it for goods and services that I need.

The greater the confidence, the higher the "value" of the money against other currencies.

This can be seen in supply and demand.

If everyone goes through the banking system, the central bank would be able to calculate the actual amount of physical notes and coins that should be in circulation. This gives the currency "value".

If the majority of the people deal in cash and avoid the banking system, the money will have less "value".

The "value" of money is also affected by corruption, politicians plundering the treasury, the lack of democracy and free and fair elections, detentions without trial, selective prosecution, persecution, tainted judiciary, Parliament being reduced to a rubber stamp, violation of workers' and human rights, nepotism, cronyism, collusion and the loss of sovereignty.

Investors will not come.

Existing investors will flee.

Knowledge, like money, is intrinsically worthless. It's skills that matter.

The highest skill is the ability to connect the dots.