Why Pure Socialism Just Won't Work!

Read this thought provoking story and tell me what you feel after that.

An economics professor at a college made a statement that he had never failed a single student before but had once failed an entire class.

That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on socialism. All grades would be averaged and everyone would receive the same grade so no one
would fail and no one would receive an A.

After the first test, the grades were averaged and everyone got a B.

The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes the reward away, no one will try or want
to succeed.

Could not be any simpler than that.

So what is your reaction or response now on socialism?

What a profound short little paragraph that says it all!

Read also this quotation:

"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for
without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for,that my dear friend, is about the
end of any nation. You cannot multiply wealth by dividing it."

~~~~ Dr. Adrian Rogers, 1931

Does it possibly remind you of a failing state?

ADB Not too Bullish about Malaysia's Economic Recovery

Singapore's Business Times has this to report today(23 September 2009).

Asia’s emerging economies are proving to be more resilient than had been feared in the face of the global financial and economic downturn and will recover faster than expected, the Asian Development Bank (ADB) said yesterday in its latest Asian Development Outlook.

Led by China, the region as a whole will grow by 3.9 per cent this year, rather than the 3.4 per cent forecast just six months ago while next year it should reach 6.4 per cent against an earlier forecast of 6 per cent, the ADB said.

But Southeast Asia's “more open” economies will fare badly. Singapore is forecast to see its GDP contract by 5 per cent this year before returning to 3.5 per cent growth in 2010, the ADB said. Pulled down also by Malaysia and Thailand, Southeast Asian growth will fall to just 0.1 per cent this year.

“Despite worsening conditions in the global economic environment, developing Asia is poised to lead the recovery from the worldwide slowdown,” said ADB chief economist Lee Jong-Wha. The upbeat tone of the ADB report contrasted sharply with the view taken by the IMF in its latest World Economic Outlook published yesterday in which it warned that recovery from global recession “is expected to be slow”.

Warning of “concerns about the prospect of long-term damage to the path of global output”, the IMF said that some of the global output losses caused by recession could prove to be “permanent”, damaging government revenues and threatening future fiscal crises.

The prospects of a much hoped-for “V-shaped” recovery in the global economy, in which output quickly returns to pre-crisis levels, are not justified by evidence from previous recessions, especially where these are linked to banking system crises, the IMF suggested.

On a more optimistic note, the ADB said that “firm action by many governments and central banks, the relatively healthy state of financial systems prior to the global crisis, and the rapid turnaround in the region's larger, less export-dependent economies, have all enhanced developing Asia's growth prospects”.

The ADB's growth forecast for East Asia was upgraded to 4.4 per cent in 2009, from the 3.6 per cent projected earlier. In China, aggressive monetary easing and massive fiscal stimulus bolstered the region's largest economy, which is now forecast to grow by 8.2 per cent in 2009 and 8.9 per cent in 2010.

A shallower contraction in South Korea is also expected on the back of effective fiscal stimulus measures. Meanwhile, the economies of Hong Kong and Taiwan are likely to “shrink more sharply on account of the severe drop in the demand for their exports”, the ADB said.

Growth in Southeast Asia is projected to fall to 0.1 per cent this year, against expectations of 0.7 per cent growth as of March. “The more positive outlook for Indonesia and Vietnam failed to offset the deteriorating prospects for the more open (Malaysia and Thailand) and smaller (Brunei and Cambodia) economies,” the ADB said.

By contrast, forecast growth for South Asia has been upgraded sharply to 5.6 per cent this year. South Asia's “limited reliance on trade partly shielded it from the adverse effects of the global slump”, the ADB said.

India is now expected to grow by 6 per cent this year thanks to fiscal stimulus and an upturn in business confidence. Despite improved prospects, “the regional outlook should not make developing Asian economies complacent”, Lee said.

“A protracted global slowdown or the hasty withdrawal of stimulus packages can degrade the region's ongoing recovery,” he added.

So being an open economy and using the export model of growth seems unlikely to work for Malaysia.So it's back to pump-priming and more local civil engineering works to be funded by the government. But watch your imports!

Rubber Ball Genting-The Financing Poser

Shares in Genting Bhd rebounded from Wednesday’s selldown after analysts assured investors that the gaming group had the financial muscle to support its 55%-owned Singaporean subsidiary, Genting Singapore plc (GenS), in its fund-raising exercise.

Genting closed 10 sen higher at RM6.97, off its intra-day high of RM7.06, while GenS was down 5 cents to S$1.14.

GenS, which is developing one of two integrated resorts in the island-state, has proposed a one-for-five rights issue of up to 2.1 billion new shares at an issue price of 80 Singapore cents each to raise an estimated S$1.6bil, to be used for “strategic opportunities” and as working capital.

The theoretical ex-rights price is estimated at S$1.13 per share and GenS is expected to trade ex-rights next Friday.

OSK Investment Bank in a report estimated the rights issue to have a 20% dilutive effect on equity and 6% dilution on GenS’ theoretical rights price.
An aerial view shows the sprawling construction site of the Resorts World Sentosa casino on Sentosa Island in Singapore. - Reuters

Nonetheless, the dilution was not seen as excessive and would place the group in a stronger position to weather any operational uncertainties while providing a larger cash pile for future acquisitions, it added.

Meanwhile, parent Genting’s entitled portion, if fully subscribed, is estimated to cost some RM2bil. Given that its net cash amounted to about RM300mil at company level as at Dec 31, 2008 (FY08), Genting would have to raise the additional funds externally.

OSK said funding was not an issue for Genting as it could tap into bank borrowings, raising convertible bonds on its 49% stake in Genting Malaysia Bhd (GenM) or up-streaming cash from GenM via dividends.

Kenanga Research shared similar views, adding that GenS would make management and licensing fees payments to Genting after its operation commenced, which should enable the latter to repay any loans.

TA Securities believes bank borrowing is more palatable as Genting has a clean balance sheet with zero debts.

Assuming its portion was fully funded by borrowings, net gearing would be at a manageable 0.26 times, it said, adding that Genting’s underlying business fundamentals remained solid.

AmResearch said the interest expense, if Genting were to borrow 100% to fund its subscription, would reduce its FY10 estimated net profit by 7% to RM1.2bil.

The research house has revised upwards its assumption of visitors to Resorts World at Sentosa (RWS) by 18% to 12.9 million in FY11 and 15% to 14.8 million in FY12, due to the expected high number of casino patrons.

OSK said the competitive threat of RWS on GenM was likely to be muted due to the vast differing price points.

The average room rate at Genting Highlands is RM75 per night while hotel room rate at RWS is estimated at S$250 to S$350. The average spending per head at Genting Highlands is RM203 per day and S$460 at RWS.

The RWS project costs S$6.6 bil and is expected to have a soft opening early next year.

Wanna See Jojo Struys Strip?

That will be a sight to see! If, only it was true!

But Jojo did strip. Why and where ?

She did it for Harpers Bazaar’s October issue which is already out. This issue features 5 beautiful women in Malaysia. Each had to make a pledge. Jojo pledged to raise awareness of Breast Cancer to all women via her blog

This is what she said in her blog entry. “When I first got told I would have to take most of my clothes off for this shoot, I was like "What? but it's for a good cause...”. So she teasingly lied here. Not totally nude. There were some clothes she kept on!

Let’s hear what Jojo has to say about her assignment with Harper’s Bazaar.

“I've worked with Harpers Bazaar year after year on Breast Cancer and I know the statistics. Breast Cancer can be real scary! One in 19 women in Malaysia get breast cancer. In the US and UK, it's roughly one in 8 women!"

A woman should be checking her breasts at the same time every month from the age of 20 for the rest of her life.

Women can't afford to be slack when it comes to this. No excuses. So, lie down and check your breasts every month. It will only a few minutes of your time.

There were 5 ladies on this shoot; all supporting the Breast Cancer cause. They are Camelia,Stephanie Chai, Deborah Henry and Elaine Daly. And of course, Jojo!

So, this could be a collector’s copy of Harpers Bazaar. Go out now and get one!

Recovery in Seoul

Reuters reported that South Korean exports in September 2009 will probably post their best performance in almost a year and confidence among its exporters has surged to the strongest in almost six years, separate data showed today.

The figures come as optimism for a faster-than-expected recovery in Asia's fourth-largest economy emboldened the central bank to declare early this month that it would raise interest rates if needed to prevent asset price bubbles.

The Korea Customs Service forecast exports for the whole of September would fall 10.4 per cent from a year earlier to around US$33.5 billion (RM117.3 billion), the slowest annual decline since October 2008, while imports would fall 26.6 per cent to around US$29.0 billion.

As a result, the country would enjoy a trade surplus of around US$4.5 billion in September, it said in a statement.

The forecasts, based on the actual performance for the Sept 1-20 period, suggest average exports value per working day would rise to an 11-month high of US$1.40 billion in September from a revised US$1.26 billion in August, Reuters calculations showed.

Separately, the country's largest business lobby for trading firms said its survey index on exporter sentiment rose to 131.5 for the fourth quarter, the highest since the first quarter of 2004, from 108.5 in the third quarter.

A reading above 100 means most exporters expect business conditions to improve rather than worsen, the Korea International Trade Association (KITA) said in a statement.

Bank of Korea Governor Lee Seong-tae said on Sept 10 the central bank was ready to begin raising interest rates, becoming the first G20 central bank to shift to tightening, if the domestic property and mortgage boom continued.

But the government of growth-oriented President Lee Myung-bak has repeatedly said demand from advanced economies has not fully recovered and it is therefore too soon for a rate hike.

The central bank has held the 7-day repurchase agreement rate steady for the past seven months at a record-low 2.0 per cent after reductions totalling 3.25 percentage points between last October and February this year.

It next reviews the rate on Oct 9.

So, except for rumours that Australia will be raising its interest rate very soon too, what other countries will be doing it soon?

Malaysia?

Festival of the Hungry Ghosts

The Hungry Ghost festival, a popular period of festivity, falls on the 7th month of the lunar New Year. It is celebrated quite widely by the Chinese in Malaysia, Singapore and China.

During this month, the gates of hell will open to free the hungry ghosts. The ghosts will have 30 days to wander to seek food on Earth. Some believe the ghosts would seek revenge on those who had wronged them in their lives. Mostly the Chinese celebrate this festival to remember their dead family members and pay tribute to them.

Believing that the dead return to visit their living relatives during the 7th month, the descendants prepare sumptuous meals for the ‘hungry ghosts’ on the 15th day of the month. Some feel that by feeding the ghosts, they will come into good fortune in their lives besides warding off bad luck.

Offerings are made to the deceased by burning fake money notes, which are also known as ‘hell money’. Even paper television or radio sets are burned. Many families even burned paper houses and cars for their dead relatives, hoping that these will add comfort to them in their world.

An interesting superstition is not to go swimming anytime during the 7th month. They think that an evil ghost might cause you to drown in the swimming pool. In addition to this, children are also advised to return home early and not to wander around alone at night as wandering ghosts might possess these children.
After 30 days, the festival will be over as the ghosts return to Hell before the doors of Hell closes.

That is tonight at midnight.

How perceptive children can be!

This is from an actual science quiz for children. Look at the answers. I think they are just great, don't you agree? Giggle for all you want. No charge!

Q: Name the four seasons.
A: Salt, pepper, mustard and vinegar.

Q: Explain one of the processes by which water can be made safe to drink.
A: Flirtation makes water safe to drink because it removes
large pollutants like grit, sand, dead sheep and canoeists..

Q: How is dew formed?
A: The sun shines down on the leaves and makes them perspire.

Q: How can you delay milk turning sour?(Brilliant, love this!)
A: Keep it in the cow.

Q: What causes the tides in the oceans?
A: The tides are a fight between the Earth and the Moon.
All water tends to flow towards the moon, because there is no water on the moon,
and nature hates a vacuum. I forget where the sun joins in this fight.

Q: What are steroids?
A: Things for keeping carpets still on the stairs.

Q: What happens to your body as you age?
A: When you get old, so do your bowels and you get intercontinental

Q: What happens to a boy when he reaches puberty?
A: He says good-bye to his boyhood and looks forward to his adultery.
(The kid gets an A+ for this answer!)

Q: Name a major disease associated with cigarettes.
A: Premature death.

Q: How are the main parts of the body categorized? (e.g., abdomen)
A: The body is consisted into three parts -- the brainium, the borax and the abdominal cavity.
The brainium contains the brain; the borax contains the heart and lungs,
and the abdominal cavity contains the five bowels A, E, I, O, and U.

Q: What is the fibula?
A: A small lie.

Q: What does 'varicose' mean? (I do love this one...)
A: Nearby.

Q: Give the meaning of the term 'Caesarian Section.'
A: The Caesarian Section is a district in Rome.

Q: What does the word 'benign' mean?'
A: Benign is what you will be after you be eight.