Did we hear a similar tone from the Malaysian government or Bank Negara or prominent think-tank institution last year when Obama with his Jewish economic advisors and treasury secretary were destroying Malaysian economy by printing trillions of dollars?  Did our media, the so-called Forth Power, make headlines about the financial terrorism of the US government?  No, all silent.  On the contrary, we just saw the prime-minister of Malaysia, Mr. Najib, going to the United States at the expense of Malaysian taxpayers - some USD25 million were reportedly paid to an American PR firm to arrange the visit - to get photographed with the American president at the side-lines of Nuclear Security Summit.  As Najib and Obama were chatting about Iran and other utterly irrelevant things, outside of the White House americans were rallying with banners:  Shut The Fed, Jail Bernanke, Give Our Gold Back! 

Happy and full of optimism Najib didn't say a word to Obama about the criminal monetary policy of USA which set off dangerous unpredictable consequences to the whole world and especially to small productive economies like Malaysia.  Nor he mentioned about it during his lengthy speech in Washington DC at the seminar themed "U.S. - Malaysia Relations: Looking Ahead at Key Pillars of Cooperation"; in the words of an eye-witness it was "a boring repetition of stale slogans by a lost bureaucrat".  Mahathir in such situation would at least gain some respect from American audience by bashing the US for unfairness; by the way, it was that courage of Dr. M to speak his mind on urgent matters in a well-thought manner which earned not only him but Malaysia the image of a leading voice in the Muslim world.  Well, that is history. 

George Bush - who has been arguably rated as the worst president in the US history - increased the National Debt by 4 trillion dollars in 8 years, but Barack Obama in 1 year and 4 months of his presidency has already added 4 trillion dollars to the national debt thus making it in total almost 13 trillion which translates into staggering debt of 115,000 dollars per taxpayer or 40,000 dollars for every American including old, woman and child.  Taking into account low federal revenue and chronic budget deficit - it was 1.4 trillion in 2009 and projected at 1.1 trillion in 2010 (although according to sober heads like Congressman Ron Paul it may easily hit 2 trillion as the government's revenue is unpredictable when the economy is in depression) - it is mathematically impossible for the US government to serve the interest on the national debt, let alone to ever pay off the principle amount.   National Debt is actually a very confusing term, it should be called instead Political Debt since it is the government who makes it and the congress/parliament that approves it, hence it should be paid off by  politicians and if they can't pay they must go to jail with their assets confiscated.  But in Democracy politicians have privilege of freedom from responsibility. 

After tripling the deficit Obama immediately promised to cut it in half by the end of his term, what a ‘great' accomplishment to achieve.  But even that ‘achievement' nobody can figure out how Obama is going to do as he committed to continue fighting in Iraq and Afghanistan (US military budget is 1 trillion a year) and just pushed through an expensive healthcare reform (which will require from the government trillions of dollars in the next several years).  But even if Obama somehow reduces the deficit by the end of his term it only means less borrowing, but it is still borrowing and it is still adding to the national debt which, incidentally, increases by 4 billion a day.  Growth of national debt means a further increase in the amount of interest to be served on the principle amount (today the interest on the US national debt has already reached half of the size of the federal revenue).  So it is the end-game, and the government is perfectly aware of it.  Yet they have cheeks to promise they will make people's lives better.  How?  By borrowing again! 

According to their own economists, the honest ones, the current economic crisis in the US has already reached the level of the Great Depression and the worse is yet to come because unlike in the 30-s the US economy today is totally devastated in terms of productive industries and public debt.  The same is true about UK and most of European Union.  Millions of people in the West who were recently regarded as middle class citizens today are loosing jobs, houses, cars and begging for aid from state agencies and charity organizations; perhaps now they begin to understand how people in Africa or Latin America feel.  And it is this middle class, nation's backbone, which every democratic Western government proclaims to treasure and protect.  And it is this middle class Obama is going to betray.  

If the alcoholic doesn't get alcohol for one day he feels depressed, his organism collapsing, so giving him alcohol will certainly make him feel better for the day but the day after the diseased condition will return; this kind of treatment "Happy Now, Worry Later" results only in exacerbation of health damage in the long-term.   There was only one right thing for Obama to do when he took the office - to let the Wall Street collapse and cut the budget spending, i.e. let all the troubled financial institutions go bankrupt at the same time reducing government size at least by half.  Had he done so he would have stopped giving alcohol (credit-money) to the alcoholic (entire system), such measure wouldn't of course jump-start the economy but it would have laid possibility for future cure.  Alas Obama has done exactly the opposite: he bailed out Wall Street and further increased Federal government spending.  

It must be clear for us, the US economy didn't suddenly die in 2007, it was killed by Riba (usury) during the last 100 years and particularly in the last 4 decades within which two profound tendencies took place: on one hand, monstrous growth of the financial sector or better to say speculative economy; on the other, equally disproportionate government involvement.  Both events were fuelled by fiat credit-money: the first was financed by commercial banks, the latter by Federal Reserve.  Therefore the US economy can't be jam-started with bail-outs, tax incentives and stimulus programs, it can only be born again in a system which is free from Federal Reserve and government intervention.  Since such a cardinal change is not happening and will not happen in the next 3 years of Obama's regime the economy will continue be dead thus making government revenue yet lower, deficit yet bigger and the national debt escalating, this will eventually shoo off foreign investors from lending the US government.  So what will happen after that?  Only one thing - USA government will MONETIZE DEBT, i.e. they will print new dollars to pay off all its operating expenditures, they might default on some foreign debts (especially to countries they don't like) but they must pay their obligations to the public sector (medicare, social security, civil servants, armed forces, and all those on the budget payroll).  That will create hyper-inflation in the US similar to that of Zimbabwe whose Central Bank (called Reserve Bank) has printed a single note of 100 billion Zimbabwe dollars which by the way can fetch you 3 eggs, chicken eggs not golden.  What will happen then?  It is not too fanciful to imagine that bloodshed will engulf the United States as people will have no money to buy food or warm their homes in winter.  It is hard to believe that the American government "of people, by people, for people" can do this to its very own people who elect them!

What happened since 1971 everybody knows: more than 400 financial crises (sovereign debt default, currency crisis, banking crisis) broke out all over the globe setting everywhere the common systemic pattern with three main features - unprecedented inflation, unprecedented monopolization and unprecedented state control. 

Already in the early 80-s it was evident that the whole system of the United States was unsustainable and had to be revamped but prostitute-politicians, both democrats and republicans, decided to continue ‘business as usual'.  So the show had to go on: Wall Street - booming, Main Street - starving.   In the early 90-s the size of US financial economy or properly speaking Speculative Economy was already 20-40 times bigger than the size of its Real Economy. Speculative economy is where stocks, bonds, securities, currencies and other forms of debts are gambled; the real economy is where tangible goods are made and traded and real services rendered.  Then there came the spectacular expansion of a new level of speculation, Derivatives, best described as ‘gambling upon gambling' which rocketed throughout the 90-s.   The fall of the Soviet Union and Eastern Block in the early 90-s was just in time to create huge demand for the dollar hence strengthen it for another decade.  9/11 terrorist attack in 2001 conveniently helped to continue with dollarization of the planet through global War On Terror.  But now, finally, the game is up, the entire world begins feeling nauseous, it can't absorb dollars anymore.  In fact the world demand for US Treasury bonds along with demand for US dollars is rapidly declining in the recent months.    But Masters of Riba are not grieving at the death-bed of their good friend, Dollar, they have prepared a substitute, Euro, and are underway preparing other regional fiat currencies.  And their servants, central banks, too will not have hard feelings about sending the greenback to the bin of history and replacing it with Euro.  

Why am I telling you so much about the phoney economy of the United States and their fake money?  Because Malaysian system and money and politicians are absolutely same.  Hence knowing how the richest nation on Earth within several decades turned into the biggest debtor on Earth is very relevant to us as we aspire to ahieve Malaysian Dream by 2020.   Yes, RM is the same worthless paper as USD, a toilet paper printed at will and backed by nothing except by signature of the Governor of Bank Negara (Treasury Secretary in the case of dollar) with only one distinction - we can't shop around the world with ringgit; in other words the dollar's tyranny is borne by world's entire population while the ringgit's one only by Malaysians.

Of course, when the dollar is finished, Bank Negara will try to protect its worthless currency from exposure by switching to another toilet paper as the reserve currency, probably Euro, and assure us that everything is fine and under control.  Are we going to be fooled again?  Do we need another 30-40 years to see to it that Euro is the same fraud as US Dollar?  Have we all got Down syndrome?   

Despite mounting concern around the world over the global financial-economic crisis Malaysians seem to remain blissfully ignorant about the danger of the present situation.  Malaysians, thanks to politicians and media, are under impression that their country is an oasis of economic stability and political tranquillity immune from outside turmoil, that somehow Malaysian system is better than others.  They couldn't be more wrong than that.  Malaysia is integral part of the global capitalist system and is well on the way to her Greatest Depression.  The time-bomb is ticking.   The national debt of Malaysia steadily grew from less than 10 billion in 1970 to more than 360 billion ringgit in 2009 saddling every citizen including newborn babies, crippled and old with the debt of RM14,000 (USD4,300).  This is a huge debt.  "But not as big as in USA", - some would say.  Yes but don't forget Malaysia didn't fight any war in the last 50 years or had many natural calamities of great magnitude.  At the time of peace a nation is supposed to accumulate savings not debt.  If an average family in Malaysia consists of 5 persons, then every Malaysian family incurs a debt of RM70,000 and this debt is growing by day due to accruing of interest.  This is enormous indebtness which cannot be paid off.

In addition to national debt - just like in the case of the US - increasing budget deficit aggravates the situation: Badawi doubled the deficit during his tenure and Najib is likely to triple it this year.   But just like Obama, Najib too promises to reduce budget deficit, nobody knows how.  The double-digit annual inflation (don't be misled by CPI, I am talking about the actual devaluation of ringgit), shrinking private business sector and declining standard of living in Malaysia doesn't hamper the Prime Minister from saying that the country is on the right track and everything is just wonderful.  It is like a bus full with passengers heading to a destination and the driver says, - "All good, dear passengers, we will soon arrive", - when in fact he knows he lost the way and has no clue where he is going.     

Hardly a day goes by when we don't hear or read in the media that optimistic Najib expects 5-6% GDP growth in 2010.  GDP figure is the most absurd tool in assessing the economic health because: firstly, it counts spending on credit; secondly, it includes government spending with borrowed or printed money; thirdly, it doesn't discount real inflation; and lastly, it doesn't show from who the nation's output is coming from - from 5% of rich or 95% of poor.  It is a ‘numerical abstraction' that has little to do with welfare of people, the RAKYAT.  GDP growth doesn't mean that more Malaysians own debt-free houses, cars and motorbikes; or more Malaysians can afford eating organic food, or more Malaysians spend their holidays on beautiful beaches - this country is endowed with - instead of jostling in Tescos or Carrefours; nor GDP growth means that more Malaysian families with one bread-winner can live comfortably.  But it is this GDP that our economists are so fond of using in their language, note how they always talk about budget deficit in terms of Deficit-To-GDP index, they do so because it sounds more ‘innocent', e.g. they say "the budget deficit in 2009 fiscal year was 7.4% of GDP" - so that common folk would not understand how big is the actual amount, whereas in human language it should sound "last year our government spent 50 billion more than it received".  The establishment avoids human language because RM50 billion is an astronomic amount, it could feed all people in Malaysia for 4 months.

The only difference between US and Malaysian fiscal policy is that Malaysian government can still borrow from Malaysians whereas in the US all savings (including pension funds) have been eaten up long ago and US Treasury has to sell its bonds to foreign clients - among the US biggest lenders are the central banks of China, Japan and Arab oil states.  But like in the US, in Malaysia too the government borrowing is not enough to sustain the huge public sector and fund ever emerging mega-projects, so instead of increasing taxes which people will certainly oppose the government turns on the printing press, thus still taxing people but through inflation.   So the Malaysian government is set on the same path to disaster as the US - Print and Spend.   Only last year RM67 billion, largely new money, was pumped into economy and  we already hear the Malaysian Institute of Economic Research (MIER), nation's biggest think-tank, suggesting that "more extra spending may be needed to prop up the economy given that two stimulus packages worth RM67 billion, already in effect, will only start having an impact during the third quarter and beyond".  Did you get it, folks?  But MIER doesn't say where the government will get the money from if it has 360 billion debt and running 50 billion annual deficit??  Right, borrow again!  Can't borrow?  Just print! 

The New Economic Policy (NEP) solemnly announced by the Malaysian government last month is hilarious and outrageous at the same time: "Prime Minister Datuk Seri Najib Tun Razak will drive the nation towards a high-income economy through bold proposals to raise private equity, invigorating the stock market, further developing Islamic finance and micro-credit programs", - trumpeted the media across the country.  High income and more equity for who?  For bankers, politicians and their corporations!  Oh yeah, also for a few high-profile economists, a few mainstream media and a few entertainers so that they carry on doing their job - keeping the public ignorant. 

New Economic Policy requires a lot of money which Najib's government doesn't have, indeed it owes 360 billion.  But Najib knows he must either continue the "Neverland of Wawasan 2020 reality-show" or else he has to declare government's bankruptcy which would be the right and possible thing to do since most of the government debt is locally owned.   But to do the right thing requires enormous courage because then Najib has to reduce the public sector by 2 or even 3 times of its current size.  University of Nottingham-trained economist, Najib, of course doesn't beleive that rather than having big government there is a better way  to regulate the economy:  JUST LEAVE IT ALONE.   "We cannot do this! How about the public servants who will be laid off, what they will do?" - exclaim politicians when they hear me saying this.  I answer: first of all, they are not public servants, they are public burden.  Secondly, it is up to them what they will do, they have to discover that Rizq is from Allah not from UMNO; one option I can imagine is they go back to kampungs where land is idle and start growing vegetables and rear goats which this country is lack of;  incidentally, in kampungs the air is cleaner and living is cheaper than in Kuala Lumpur.

To boost economy by borrowing is a contention of economists, bankers and politicians who have vested interests in these so-called stimulus programs.  For everybody else to spend more than you earn on a regular basis is called wastefulness, extravagance or irresponsibility which sooner or later leads to disaster. Living beyond means by individual or society is immoral and denounced in any culture, religion, and most certainly in Islam.  Running continuous budget deficit - particularly at the time of peace - by means of borrowing or printing the difference is state tyranny, full stop.  And every now and then politicians present to us a ‘new growth strategy' without explaining what happened to the previous one whose bill  has not been paid yet.  Listen, folks, one doesn't need a PhD to understand that Najib's New Economic Model is a century-old political farce that has brought nothing except further indebtness and currency debasement.  It didn't work in Europe, it didn't work in USA, it didn't work in Japan and of course it will not work in Malaysia. 

Dear Malaysians, - especially those who are in the private sector, those who sell nasi lemak or pisang goreng, those who grow chili or rice, those who repair shoes or cars, those who build or sew, those who teach or heal, those who trade in pasar malams or shops, and all those who earn their living in honest way - I take off my hat before you, for it is your sweat and tears which have kept this country from falling apart.  But now you have to stand up and say NO to this insanity.  The first and most urgent thing we have to do is to return the role of money to gold and silver as it has always been until Banksters said that paper money is better.  I know most of you don't have savings.  But those who have please do not lend it either to government or to banks because if you do you are helping to dig your country into deeper hole "until your children wake up homeless on the continent your fathers conquered", as Thomas Jefferson warned his people some time ago, and today his warning came true for millions of Americans.   Do not buy Najib's 3-year bonds with annual 5% interest, your government is bankrupt, they will just print money to pay you back, and after 3 years when you collect back your money even with 15% increment it will be less valuable than the original sum invested 3 years ago.  It is a ponzi scheme.  Instead of being victim of such scams, keep buying gold and silver, bit by bit.  You must understand, when gold and silver in the hands of Rakyat reaches a critical mass Malaysian Capitalism will collapse by itself.  Yes, the collapse of this system won't be a pleasant experinece for many, getting off from drug stimulation is painful at first but before long the health will start returning and with it strength.   

It is my great hope that more Malaysians will pay heed to these calls of freedom if not for the sake of yourself but at least for the sake of your children and grandchildren.

I thank you on behalf of future debt-free citizens of Malaysia.