Obama's job creation plan

After reading about the proposal for job creation with a policy, I think that it seems unsustainable.

Just going back to basics, it seems like giving a man fish rather than teaching him how to fish.

Hypothetical statement

If America is to head into a lost decade like Japan did in the 1990s, I believe it America would be in a worse state than Japan as the rate of savings is not like Japan. Americans would spend more than they can create ultimately transferring the wealth out.

Point of view

People chase high salaries in order to get rich, however, does it really make one rich? It is not the high salaries that would make you rich, it is the savings that does the trick.

For example, some child celebrities end up spending all their new found wealth on drugs and other vices and end up penniless, while you have some exceptional cases where a floor cleaner saving 2 dollars a week and investing it end up donating a few million dollars at the end of her life.

So don't fall into the trap of single-mindedly chasing high salaries without thinking of a saving and investing plan.

China's economy

I recently got back from China. It was a real eye opener as I noticed that the local tourists consist of about 80% of the total market (just an observation and not an actual figure). This goes to show that China is improving the quality of living for its citizens at an exceptional rate.

If the government can keep doing the right things, China will undoubtedly overtake the US as the biggest economy in the world.

Gold purchases (Malaysia)

For those who wants to invest in gold in Malaysia, it is good to ask either Public Bank or Maybank. They have this services that allows you to buy direct from them.

This is only for the people who:
1) Knows the market
2) Believes you are getting it at a right price
3) Know when to sell

Book review: Freakanomics

Freakanomics by Steven Levitt is a good read as it make economics interesting by fusing it with pop culture.

It is a light read and would be good as a travel companion to your holiday places.

Pip

A pip is the smallest change in an exchange rate. Most currency pairs are quoted with 4 decimal points. For instance, today's AUDMYR is quoted as 3.1565. So it means that the pip for it is 0.0001 or 1/100 of a cent. Another name for it is a basis point.