Its Rm4 72 Now Failure Of Us War In Even One Theatre

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 Well today 17 October 2022, the Ringgit has hit RM4.72 against the US Dollar.

I was wondering how to analyse this feat in just a simple sentence. Here it is : We are going to die !!
How do we overcome this devaluation? Well we cannot overcome it in one week or one month. And I really believe it is NOT a job for Bank Negara to burn our Forex Reserves to support the Ringgit. 
And I hope Bank Negara will really keep their Forex interventions confidential. (If anyone can have "inside information" on when exactly and by how much BNM is going to intervene in the Forex Markets they can make a killing).

The great consolation is the Ringgit is not the only currency in the world which has depreciated against the US Dollar. Many other currencies have also declined including India, Taiwan, China and Sri Lanka is the worst with over 70% decline in its currency against the US Dollar.
Back to the question - what can we do. Well the biggest threat from a  devaluation is higher cost of imports. Imported finished products, intermediate goods, raw materials etc can all go up in prices. This will pump up inflation in our domestic market. Plus also increase the cost of our manufactured exports.

But if we import from countries whose currencies have also devalued plenty, then we can mitigate some of this "imported inflation". 
So lets buy more tea from Ceylon (example only - lets grow more tea in Camerons), buy more from Taiwan (whose currency has taken a bigger beating than the Ringgit), buy from China. What do we buy from India? I know folks whose imports from Turkey did become cheaper on account of the Lira crashing. That was before the Ringgit went down but the Lira has kept going down.  Just leave it to the private sector. They will know what to do. The government boys tak faham pun apa saya cakap.

But hold on to your seats folks, because according to Sean Foo the US Dollar will crash at some point in the not too distant future. That will be catastrophic not only for the USA but it will cause some chaos in the world too.
Ok here is a video about the dwindling fortunes of the war in Ukraine for the Americans and the Brits. Remember I keep saying that the Brits are the real culprits in this war in Ukraine. About 20,000 Ukrainian troops are being trained in Kent in England.
Do you know which country has (or had) the second largest Army in Europe? Answer : Ukraine. Their Army has over 600,000 troops. Russia has the biggest Army (850,000 + 300,000 men).




 




 
So the Americans are running short of weapons to send to Ukraine.
Bear in mind that the war in Ukraine is not an all out war.  Granted there is destruction but it is still a relatively low intensity conflict. There is no carpet bombing the whole country like the Americans did in Iraq or Vietnam.
Only after the Kerch Bridge (the Crimean Bridge) was attacked have the Russians retaliated with missile strikes and artillery barrages all along the front lines.
Yet the Americans are saying that they will be winding down their gun running into Ukraine. This should be another lesson for those countries who have depended on "American protection".  Sooner or later they will abandon you. 
Please recall this picture. This was the Americans suddenly abandoning Afghanistan AFTER 20 years. 
 




President Kennedy was shot dead by the CIA's anti-communist hawks  when the US Army suddenly abandoned support for Cuban counter revolutionaries.

Anyway the Pentagon has always boosted the "two-theatre" war strategy.


"two-theatre war, also called two-major-theater war or two-major-regional contingency strategy, a defense-planning model used to estimate the size and composition of U.S. forces necessary for optimal military readiness at any given time. The two-theatre war model held that the United States should be capable of simultaneously fighting two major conflicts in different parts of the world. 
What a joke.

The two-theatre war model held that the United States should be capable of simultaneously fighting two major conflicts in different parts of the world.
Now they cannot even keep a skirmish going in the Ukraine. The two-theatre war was just a con job by the Pentagon and by the weapons manufacturers to steal taxpayers money :  to estimate the size and composition of U.S. forces necessary for optimal military readiness at any given time
But the war in Ukraine may not come to an end so soon.  Mr Putin has his targets beyond Ukraine - to break up NATO, to break up the EU, maybe sign treaties with Germany, France and other European countries to ban all types of future sanctions, maybe get paid compensation for loss of gas revenues etc.

I hope Mr Putin will really stick it to them. They deserve it.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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