The PAP’s Entrapment Plan Caused Household Debt In Singapore To Spiral Out Of Control
But let me show you one final deal – this one takes the cake.
If Singapore is so rich, why are Singaporeans still in debt? First, as explained above, the PAP pays us only enough wage to pay for the CPF and then pay them back the essential services. (For the low-income, they aren’t even paid enough and are forced to go into debt right from the start.)
But you would still need to spend, right? That’s where the banks are in on the game – make you take on debt to fund any additional purchases. So, because of the PAP’s devious entrapment plot, Singaporeans are forced into personal debt to fund additional purchases.
As Jesse Colombo had pointed out, “Singapore’s ratio of household debt to gross domestic product recently hit approximately 75 percent, which is up from 55 percent in 2010 and 45 percent in 2005. (Chart 74)”
Moody’s had also highlighted that, “household debt increased to 77.2% of GDP as of March 2013 from 64.4% at end-2007 (Chart 75).” If you understand this, this means that the PAP’s entrapment plan is going out of control. Two possibilities – either they have lost control of how to keep this entrapment plan in its place, or the PAP has embarked on a plot to cut down further on Singaporeans by using spiraling debt to entrap them.
The PAP Created Debt For Singaporeans And Made Us Pay For It
But still something more sinister. Above, this is only household debt.
But there’s another debt that the PAP has created – the government has created debt for Singaporeans by making Singaporeans lend them money (against our wishes). By doing so, the government has also driven Singaporeans further into debt.
This debt that the government is borrowing from you is from your CPF.
What is happening is that the PAP has created debt for Singapore, then make us take on this debt and pay it back (Chart 76).
How is this done?
By last year, the Singapore government has gone into a debt of $390 billion last year. National Debt Clocks calculated that this would have reached $404 billion this year. According to the government, none of this debt is debt owned by the Singapore government to other countries. All of this debt is owned domestically.
What this means is that the Singapore government is actually borrowing money from you. But where is this money coming from? It’s a hell lot of money! As explained, the PAP has borrowed money from your CPF to invest in GIC and Temasek Holdings. This debt of $404 billion is money they are borrowing from you via your CPF for their own investments (Chart 77).
So, why is it important for you to understand why the PAP forces you to lend them your CPF for their investments?
Here’s why – in a normal scenario, when someone wants to borrow money from you, they have to give you a collateral, or a form of security, so that you would know that they would not run away with your money.
But when the PAP borrows money from you to fund Temasek and GIC, did they give you any collateral? As far as I am aware of, there is none.
Now, what this means is that Temasek and GIC are free to use your money in any way they want, and they are not liable to you. They don’t owe you anything if they make bad investments, since there is no collateral (Chart 78).
So, there is no collateral? Well, not really.
If there are bad investments or if there is not enough money, the government would still need to find money somewhere, right? That is where you come in again, and many Singaporeans have already figured this one out.
You become a collateral for the debt that the PAP has created for you. What is happening is the PAP, pretending to carry a mandate for Singaporeans, have borrowed money from Singaporeans, then make Singaporeans pay for the debt. And if you cannot pay for the debt, then you have to pay for the debt (Chart 79).
You see, if the government were to borrow from another country and if the government is not able to pay the debt, then Singaporeans would have to pay off the debt by paying higher taxes and/or receive lesser subsidies so that we can save enough surplus to pay off the debt, right?
In Singapore’s case, if the government cannot pay for the debt back, similarly Singaporeans would have to pay off the debt. Importantly, if they are already borrowing from us and we have to pay them the same amount to clear the “debt”, then aren’t we double-paying (Chart 80)?
But the mess-up comes in that the PAP is borrowing from us, but yet we have to pay off the debt. The PAP owns us our money, but makes us pay for what they own us (Chart 81).
Thus on top of the Wage-CPF-HDB Trinity to cut down your wages, through the monopolisation of essential services and banks, the PAP is able to create another triple debt lock-in mechanism to tie you into chronic personal and national debt.
Mind you, this debt is now 115% as a proportion of GDP. Add together the household debt of 77.2% of GDP, are Singaporeans forced to hold on to a debt of nearly 200%, or more than twice our incomes?
Not only that, because the government borrows $404 billion from our CPF for their investments, and we would need to pay this $404 billion back to them since this is our debt, does it mean that Singaporeans are actually in a debt of $808 billion, or 230% of GDP?
Is the government not only making Singaporeans double-pay for essential services but also double-locking us into debt? If this is the case, is our debt actually more than 300% of GDP (including household debt)? In short, are Singaporeans actually made to hold on to a debt of 3 times the GDP, or in other words, have we been triple-locked into debt created by the PAP (Chart 82)?
To put this into perspective, the government expenditure on social security, healthcare and welfare is only 2% of GDP. What this means is that the PAP has created a scheme that forces Singaporeans into such heavy debt but they are willing to shoulder only a paltry less than 1% of this debt that they have created for us (Chart 83)!
If so, since Singapore’s GDP is $370 billion last year, does this mean that Singaporeans are actually in a debt $1.14 trillion (Chart 84)?
This would mean that each Singaporean would be locked into a debt of more than $360,000. If each Singaporean were to pay back 100% of what we earn to pay off this debt, it would take us 8 to 9 years to finish paying off this debt. If we were to take half our wages to pay off this debt, it would take us almost 20 years to do so (Chart 85)!
Perhaps it is clear now why most Singaporeans would never be able to save and retire. Assuming that we want to retire at 65, we would still need to work for another 20 years to pay off the debt that the PAP has trapped us in, such that by the time we reach 85, if we haven’t already pay off the debt, we would die by then (Chart 86).
And this is what I call the Triple-Debt Lock-In.
The PAP Forces Singaporeans To Work Longer To Lock Us Into Debt
And because the money that they borrow is from “your” CPF, what is the best way to get you to give them more CPF? Several ways, one of which is for you to earn more so that you can pay more into the CPF.
But since they won’t pay you more as part of the Wage-CPF-HDB Trinity, then what else? They either get more people to work, as they are doing by importing foreign labour, or they make you work longer. Why else do they you think they are planning to increase the retirement age to 67?
You see what is happening – there is indeed a collateral from the borrowing of “your” CPF – it is your labour, and your extended labour at that.
And to increase the retirement age, there are many ways to do it – Dr Linda Low had explained that, “In 1984 the government tried to increase the CPF withdrawal age from fifty-five to sixty. The attempt was very poorly received, as people viewed the government as having broken a promise.” She then revealed that, “One way of getting around this problem has been to institute a scheme minimum sum, which softens the impact. Under this scheme, one can still take out a lump sum when one reaches the age of fifty-five, but one must keep a certain minimum amount in the fund, which can only be withdrawn as an annuity when one reaches the age of sixty. (Chart 88)”
And as I had written in the previous article, it was from 1996 that the CPF Minimum Sum was suddenly spiked up and has been growing much faster than inflation ever since (Chart 89).
But there is only as much as the CPF minimum sum can prolong their eventual aim of extending your retirement. At some point, they would need to actually extend your retirement age, and the time is soon, and thus the talk of extending the retirement age to 67 (Chart 90).
This is the final trick in the book – the CPF-Debt-Labour Bondage.
The Magic PAP Plan To Stab Singaporeans In The Back
Do you see the whole plan now? This Stab-You-In-The-Back Plan is a mix of the Wage-CPF-HDB Trinity to undercut your wages, the Double-Paying Trickery, the Triple Debt Lock-In Mechanism and this CPF-Debt-Labour Bondage to entrap you into a massive Ponzi scheme which has become so entrenched that all they need to do is sit back, shake leg and extract the wealth from you (Chart 92).
It’s all so easy now for the PAP. They have now created and institutionalised an automated wealth extraction plan that entraps your labour into a locked-in cycle, pay you low wages, extract the wage via CPF and HDB then take back the rest of the wage through monopolising essential services, increasing prices, creating debt and mortgaging your CPF for your labour which forces you to work for eternity. There is no more cleverly thought-out plan than this anywhere in the world that forces its citizens into thinking that they are liberated – yes, but slaves who have been led to think that they have been liberated.
Singapore never gained independence. We gained independence from the British but have become colonised by the PAP (Chart 93).
Now that you know this complete entrapment plan that the PAP has concocted to stab you in the back, there is one final thing that you need to know.
So, does this mean that all Singaporeans have thus been made to suffer? Well, obviously no. Some statistics will give you a clue as to who gets better at the expense of us.
As I had mentioned, the richest in Singapore earns one of the highest salaries in the world (Chart 94).
And pays one of the lowest taxes in the world (Chart 95).
Meanwhile, the poor and middle-income in Singapore actually pay much higher tax and CPF than the rich in Singapore. For a low- and middle-income earner, we actually have to pay up between 37% and 38% of our wages into tax and CPF, whereas high-income earners only need to pay 25% (Chart 96). This is because there is a maximum cap as to when a person needs to pay into CPF – if you earn above $5,000, you only need to pay CPF on the first $5,000 of your wage. The rest of your wage is CPF-exempted. How come the rich gets to be exempted from CPF but not the poor and middle-income who are more in need of this exemption, especially since the CPF is a bottomless pit?
Meanwhile, Singaporeans earn the lowest wages among the high-income countries even as the rich earn the highest wages among these countries (Chart 97).
Only about 13% of the richest Singaporeans are able to meet the CPF Minimum Sum. The richest 10% of Singaporeans have seen their income grow from 30% in 1995 to 42% in 2011. The richest 15% earns as much as the poorest 85% in Singapore (Chart 98).
So, who gets ahead while the rest of us Singaporeans languish. You can put the figure safely at 10% to 15%. Meanwhile, the Singapore Prime Minister belongs to the richest 0.1% in Singapore and the PAP politicians belong to the richest 5% (Chart 99).
Perhaps it might also be revealing that WealthInsight’s Singapore 2013 Wealth Book found that the richest 3% in Singapore owns 85% of the wealth in Singapore (Chart 100).
Thus it is honestly very irresponsible when Lee Hsien Loong had said that, “if I can get another 10 billionaires to move to Singapore and set up their base here, my Gini coefficient will get worse but I think Singaporeans will be better off, because they will bring in business, bring in opportunities, open new doors and create new jobs, and I think that is the attitude with which we must approach this problem. (Chart 101)”
Today, Singapore has the 4th largest concentration of billionaires in the world and the largest concentration of millionaires (Chart 102).
And we also have the largest concentration of millionaires in the world (Chart 103).
But for the rest of us Singaporeans, things have gotten so bad that Singapore is now ranked the most expensive place to live in the world (Chart 104).
But the PAP had the audacity to generate their own report to claim that Singapore is actually only the 60th most expensive city in the world (Chart 105).
But what does this all mean, when we also have the highest poverty rate among the high-income countries and countries in the region (Chart 106)? It means nothing. In fact, it means that Singaporeans are worse off.
In fact, do you know what this really means? The rich are getting richer, but there are now more and more poor people in Singapore.
Which is why it is utterly irresponsible that the PAP is resisting calls to define a national poverty line, claiming erroneously that this will result in a “cliff effect”, when it is clear that poverty is now a strikingly important issue in Singapore (Chart 107).
Mr Leong Sze Hian had also highlighted that, “middle-skilled jobs are disappearing, while demand for high- and low-skilled workers grows”.
If you understand what this all means, this means that the PAP is squeezing the middle-class out, to either become part of the poverty class or to move out of Singapore. Indeed, more than 300,000 or 10% of Singaporeans have already moved out of Singapore. This means that what the PAP is hoping to create is a super-rich class and a growing down-trodden poverty class who are then left to pick up the pieces. As of today, the poverty class forms the bottom 30% of the Singapore population and is still growing (Chart 108). I had warned of this previously.
Any wonder why the PAP is discouraging Singaporeans from receiving a degree education then (Chart 109)?
Perhaps now you will understand why the PAP has been erasing statistics and fudging statistics, and how they had also explained how it is not necessary to be completely transparent (Chart 110), 0r that it is not in our interests to know too much (Chart 111). Once you are able to put the statistics together, you will realise how the whole plan that the PAP has concocted to cut Singaporeans down actually work, and they cannot afford for you to know this at all.