Our Missing Billions ; There is no accountability in our CPF, every Singaporean already knows

In our last post, I gave a short and a long answer to questions about the importance of who owns the debt. The short answer is that it doesn’t matter who the government of Singapore owes money to, it still owes money to them.  Some readers and posters said that if the Central Provident Fund (Singaporean social security) owns the debt issued by the Singaporean government, then it doesn’t really matter.  Let’s examine that question in greater detail.
The CPF collects mandatory contributions from Singaporean citizens and pays a statutory rate of return to its account holders currently ranging from 2.5% to 4% depending on the type of account.  The contributions are intended to be used for old age income support and health care among other basic services.  The CPF holds $185 billion SGD of investment assets under management but also $185 billion SGD in liabilities in the form of member accounts with a net surplus $1.9 billion.  In other words, there is only a small amount of net assets under management at the CPF.
According to CPF financial statements, 95% of CPF investment assets are “special issues of Singapore Government securities”.  In other words, the CPF is the primary purchaser of the debt issued by the government of Singapore.
The CPF is then part of a large circle that takes money from the citizens pays them interest and lends it to the government Singapore matching the interests rates between the two rather closely.  This leads to three important and inescapable conclusions:
1.  The CPF has minimal net assets under management and cannot really add to our search for missing assets.  In other words, the CPF cannot add to our understanding of where we might find large amounts of net public assets.
2.  Singaporean citizens have provided enormous free cash flow to the Singaporean government in the form of structural budget surpluses and large amounts of lending. As I said in the last post, from 1991 to 2010 alone the sum of budget surpluses and net lending totaled $512 billion SGD.
3.  All roads still lead to the Singaporean government. The enormous volume of free cash flow in the form of budget surpluses and increased borrowing flowed through Singaporean government finances and was under their management.
Returning to the question I posed in the previous post, if the Singaporean government enjoyed free cash flow from budget surpluses and borrowing totaling $512 billion SGD between 1991 and 2002, where did the money go?
To be clear there is no public record of expenditures by the Singaporean government to account for the $512 billion SGD in free cash flow since 1991. Nor is there as public record of assets held by Temasek, GIC,  or other public body in large enough amount to account for such a large discrepancy. Remember if this $512 billion earned the 7% GIC claims to have earned there should be more than $1 trillion in assets.
The reason the CPF matters and should concern Singaporeans is simple.  The government of Singapore is borrowing money from its citizens through the CPF payed 2.5-4% and investing that money in other assets through GIC and Temasek hoping to earn a higher return. Publicly, GIC and Temasek claimed to have earned 7% and 17% since inception meaning they are earning a comfortable spread above the 2.5-4% they must pay for those funds. If Temasek and GIC earn less than the 2.5-4% they pay to the CPF, the government must essentially subsidize the losses to keep the CPF whole.
According to the data published by Temasek and the best estimates of GIC, they hold around $500 billion SGD essentially matching the $512 billion SGD in budget surpluses and increased borrowing or a total return of about 0%. This leads to two frightening conclusions:
1.  While estimated GIC and Temasek assets essentially produce a 0% nominal return, when factoring in inflation, this produces real investment losses of about 35%!!
2.  The government of Singapore has essentially been subsidizing GIC and Temasek losses by paying their implied obligations to the CPF even though the they have not earned a rate of return sufficient to cover the cost of debt capital. In other words, the government of Singapore is subsidizing GIC and Temasek losses to the amount of the rate of return earned by GIC or Temasek minus the 4% it pays to CPF account holders. Financial losses attributable to GIC and Temasek but covered by the government of Singapore, significantly increase the risk of CPF deposits.
There are two final points worth mentioning. First, we continue to search for enormous amounts of missing assets. For instance, it has been suggested that GIC and Temasek have not produced accurate accounts that would reconcile the difference.  Given that there is a minimum of $500 billion SGD in missing assets, I am very skeptical that this is simply due to sloppy accounting.  However, the fundamental point is to focus on locating in public records the missing assets.  There needs to be a bare minimum of $500 billion SGD in unreported assets to begin to bridge the gap between what exists and what should exist.
Second, due to the length of this post, I only covered the CPF today and could not cover the Monetary Authority of Singapore and its foreign reserves.  In the next post on Monday, I will analyze the MAS.  Needless to say, it doesn’t in anyway change the analysis.
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Christopher Balding
*The writer is a professor of business and economics at the HSBC Business School at the Peking University Graduate School.  An expert in sovereign wealth funds, he has published in such leading journals as the Review of International Economics, the Journal of Public Economic Theory, and the International Finance Review on such diverse topics as CDS pricing, the WTO, and the economics of adoption and abortion.  His work as been cited by a variety of media outlets including the Wall Street Journal and the Financial Times
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Come 2016, when PAP loses the elections, when our CPF board is unable to repay it’s obligations to it’s CPF members, everything will be exposed, but I have already prepared for such a possibility, everything has been hidden from the public for so long, it will be an attempt to blackmail every Singaporean to vote PAP again, or there will no longer be a retirement fund.
Don’t be too happy if you can squeeze goodies from the government, you may end up paying the price from your retirement funds in future, if I am not wrong, the damage over the years could total as high as S$300 Billions, and there is no way the government can recover this money.
When I get to the UN and change the concept of Swiss Bank accounts no longer private, the UN and other governments will have all access to once secret accounts, we will definitely see the whole picture.
– Contributed by Oogle.

The First Magnetic Car, later a Flying Saucer?

 
The People’s Car Project debuted in China last year. The Hover Car is a two-seater zero emissions vehicle that hovers above the ground using electromagnetic road networks. It has distance sensors that keep the craft from colliding with other vehicles on the road. The car will be controlled by a nice-looking joystick that, based on the video below, is quite easy to use. While Volkswagen’s Hover Car is very cool, it’s important to note that it is still a concept and that it is still a far cry from the actual “car of the future” that we want to drive, paving the entire roads of china using magnetic road networks is too costly and may not be feasible.

HTRE-3? In 1955, this program produced the successful X-39 engine, two modified General Electric J47s with heat supplied by the Heat Transfer Reactor Experiment-1 (HTRE-1).[5] The first full power test of the HTRE-1 system on nuclear power only took place in January 1956. A total of 5004 megawatt-hours of operation was completed during the test program.[6] The HTRE-1 was replaced by the HTRE-2 and eventually the HTRE-3 unit powering the two J47s. The HTRE-3 used “a flight-type shield system” and would probably have gone on to power the X-6 had that program been pursued.

 

“When mankind combines magnetic energy to control gravity, using H2O water to cool and power the next generation engine(Nuclear Fusion or Fission? We do not have the technology to even build a proper nuclear fusion device in a space craft to generate energy, how to kick start the ITER project? You want to control the sun’s energy, you must first build a gravity device so strong like a black hole to contain the sun’s energy and make sure it does not leak in a containment unit), we will not only have a “car of the future” but a machine to travel thru time and space. – Contributed by Oogle.”

The ITER project confronts numerous technically challenging issues. French Nobel laureate in physics, Pierre-Gilles de Gennes said of nuclear fusion, “We say that we will put the sun into a box. The idea is pretty. The problem is, we don’t know how to make the box.”[31]
A technical concern is that the 14 MeV neutrons produced by the fusion reactions will damage the materials from which the reactor is built.[32] Research is in progress to determine how and/or if reactor walls can be designed to last long enough to make a commercial power plant economically viable in the presence of the intense neutron bombardment. The damage is primarily caused by high energy neutrons knocking atoms out of their normal position in the crystal lattice. A related problem for a future commercial fusion power plant is that the neutron bombardment will induce radioactivity in the reactor itself.[33] Maintaining and decommissioning a commercial reactor may thus be difficult and expensive. Another problem is that superconducting magnets are damaged by neutron fluxes. A new special research facility is planned for this activity, IFMIF.
The ITER tokamak will use three interconnected cooling systems. Most of the heat will be removed by a primary water cooling loop, itself cooled by water through a heat exchanger within the tokamak building’s secondary confinement. The secondary cooling loop will be cooled by a larger complex, comprising a cooling tower, a 5 km pipeline supplying water from Canal de Provence, and basins that allow cooling water to be cooled and tested for chemical contamination and tritium before being released into the Durance River. This system will need to dissipate an average power of 450 MW during the tokamak’s operation. A liquid nitrogen system will provide a further 1300 kW of cooling to 80 Kelvin, and a liquid helium system will provide 65 kW of cooling to 4.5 Kelvin.

PowerJet SaM146 not designed for rapid climb due to fuel saving technology

AFP
Thursday, May 10, 2012

MOSCOW – Russian investigators opened a criminal probe on Thursday into possible misconduct during preparations for the exhibition flight of a new Superjet 100 jet which came down in Indonesia.
The Investigative Committee said it would probe “the procedure for preparing the flight crew and also the technical condition of the craft itself before its departure from Russia.”
The twin-engine plane vanished from the radar screens on Wednesday about 50 minutes into its exhibition flight. Rescuers at the scene said on Thursday they had found bodies but no survivors.
Initial reports on the number of people on board varied between 46 and 50.
Russia’s Investigative Committee said it believed the plane was carrying 48 crew and passengers of five different nationalities including eight Russians.
The Russian investigators said they would question the technical personnel who prepared the crew for the flight “and representatives of the Sukhoi Civil Aircraft company involved in making the plane and preparing it for operations.”
The Russian committee said it was also studying the option of sending a team to Indonesia “that could be present for the investigation being conducted by the Indonesian law enforcement authorities.”
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The PowerJet SaM146 is a turbofan engine produced by the PowerJet joint venture (not to be confused with Power Jets) between Snecma of France and NPO Saturn of Russia.[2] Snecma is in charge of the core engine, control system (FADEC), transmissions (accessory gearbox, transfer gearbox), overall engine integration and flight testing.[citation needed] NPO Saturn is responsible for the components in the low pressure section and engine installation on the Sukhoi Superjet 100 regional aircraft and ground testing.[citation needed]

The SaM146 design is based on the CFM56[3]. In keeping with the design and development of jet engines from manufacturers like Pratt & Whitney Canada, General Electric and Rolls Royce, the engine has been conceived to meet customer requirements regarding fuel burn, cost of operation and dispatch reliability.
The core was developed by Snecma, drawing on its M88 ‘hot section’ military engine experience and the DEM21 core demonstrator project – with its six-stage compressor and single-stage, high-pressure turbine with active blade-tip clearance control – and various other modern design features (such as single-piece bladed disks).
The SaM146 provides 62 to 77.8KN of thrust (6,200 to 7,700 kg). In April 2003, Sukhoi Civil Aircraft Company selected the SaM146 for its Superjet 100 regional aircraft, to be produced in 75 and 95-seat versions.
The SaM146 utilizes a single-stage turbine and as a new design has been developed to meet current and projected environmental standards, including regulations of the ICAO Committee of Aviation Environmental Protection Sixth Session (CAEP VI), set to become effective in 2008.[citation needed]
Blisk technology is used to improve fuel economy and lower maintenance.[4]
On 23 June 2010, it was announced that EASA certified PowerJet for its SaM146 engine.[5] It gained Russian certification in August 2010.[6]
As is usual with modern jet engines, PowerJet intends to offer the usual range of support services for operators.
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http://www.telegraph.co.uk/news/worldnews/asia/indonesia/9257601/Last-pictures-of-crashed-Russian-plane-emerge.html
Investigators are now examining taped conversations between the pilots and air-traffic control, particularly the pilot’s request to descend from 10,000ft to 6,000ft seconds before the plane disappeared from radar screens.
“The airplane crashed at the edge of Salak mountain,” said Indonesian president Susilo Bambang Yudhoyono. “An investigation must be done immediately and thoroughly.” Aerial pictures from the crash scene revealed tiny sections of wreckage from the wings and fuselage scattered down an exposed stretch of cliff surrounded by the dense forest.
Indonesia’s search and rescue agency chief, Daryatmo, said: “From the pictures we’re seeing it looks like it was a total loss.” Sukhoi has already won 170 orders worldwide for its Superjet-100 and was aiming to sell 42 in Indonesia alone, competing against similar-sized offerings in the passenger jet market from Brazil’s Embraer and Canada’s Bombardier.
If the cause of the crash turns out ultimately to be a pilot or air-traffic control error, the effects on sales might not prove too disastrous. But a technical fault in the jet that has already suffered delays could be catastrophic for orders.
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http://www.flightglobal.com/news/articles/superjet-100-flew-in-low-traffic-indonesian-airspace-dgca-371704/

Who selected the route of the ill fated aircraft, it is not designed to climb mountains with rapid acceleration due to it’s fuel saving technology. I supposed the pilot is experienced in flying larger jets but have no experience flying the Superjet 100. Other than that, there should not be any problems. – Contributed by Oogle. 

http://en.ria.ru/russia/20120511/173392847.html

On Thursday, Russia’s acting Deputy Prime Minister Dmitry Rogozin said experts believe “human factor” was the most probable cause of the fatal crash of the aircraft.
“Experts say that all [the aircraft’s] equipment functioned smoothly. In other words, it could be some kind of a human error,” Rogozin told journalists.

http://www.channelnewsasia.com/stories/afp_asiapacific/view/1201527/1/.html
Posted: 16 May 2012 0224 hrs
Indonesia team finds crashed Sukhoi’s black box
CIJERUK, Indonesia: A search team in Indonesia found Tuesday the black box of a Russian jet that could explain how a veteran pilot crashed the new plane into a dormant volcano last week, killing all 45 aboard.
“We found the black box at around 10 this morning (0300 GMT),” Ketut Parwa, head of the search operation, told reporters late Tuesday near the crash site at Mount Salak in western Java.
“It was found around 100 metres (328 feet) from where we located the tail.”

It's robbery and sadistic torture

New Straits Times
Friday, May 11, 2012

KUALA LUMPUR – While their father was claiming the body of their mother from Kuala Lumpur Hospital yesterday, the couple’s two children were at school sitting their first term examinations.
The children, a 12-year-old boy and a 10-year-old girl, had cried and grieved a day earlier after learning that their mother, real estate agent Chen Choi Mooi, 39, had been murdered before her body was dumped near Batu Dam, Gombak, near here.
Their father, Liew Yang Sei, 41, and family members had agreed that they did not want the children to dwell on their mother’s death and preferred them to sit their exams.
Liew and the rest of his family, were questioned by police while waiting for the post-mortem report at the mortuary yesterday.
Liew, also a real estate agent, later demanded answers for his wife’s murder.
“I want to know who did this to her, and why,” he said.”I cannot believe this could happen in broad daylight.”
Chen’s body was found near the dam on Wednesday night. She had strangulation marks on her neck, while her mouth, eyes and forehead were swollen.
Chen was last seen by her husband on Tuesday at 10am when he left their apartment in Jinjang Utara.
It was learnt that Chen had gone to meet a prospective tenant at 1pm.
She left after taking RM2,000 (S$818) from the couple who had wanted to rent a house, agreeing to meet them again at 3pm to hand them the house keys but did not keep the appointment.
Chen had apparently told the couple that she would be meeting the landlord of the house and another client before meeting them again later.
Her husband became worried when a neighbour dropped his children off from tuition as Chen, who was to pick them, did not show up.
He called his wife’s sisters but no one had seen her since that afternoon. He lodged a missing person’s report at 8pm.
At 10am on Wednesday, the family found Chen’s Proton Iswara in Batu 5, Jinjang. There was a pool of blood in the boot.
Later that night, Liew received a call from police, asking him to come to the KLH mortuary to identify a body.
Chen was still clad in the black T-shirt and black skirt which she had on when last seen on Tuesday.
Police had found a trail of blood, revealing that Chen had been dragged for more than five metres before her body was dumped.
The victim, the youngest of 10 siblings, was described as a religious person who was active in the temple and had many friends.
Gombak police chief Assistant Commissioner Abdul Rahim Abdullah said post-mortem results revealed that the victim died of strangulation. There were bruises on both her wrists, suggesting she was bound.
Her handbag, containing two handphones and an undisclosed amount of cash, was missing.
Rahim said they had yet to make any arrests. He declined to comment further.
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Evidence from her mobile records will identify the “client”‘s mobile number, and his most common gps location which he cannot hide, this person has a history of sadistic violence and must be put away for good.  
– Contributed by Oogle.

The World will not fall back into a recession

04:45 AM May 08, 2012
ROME – Several candidates opposed to austerity measures were making a strong showing yesterday in early projections from Italy’s local elections – the first nationwide test for Premier Mario Monti since he was named to save Italy from its debt crisis.
In Germany, a state election on Sunday could be an omen of worse to come for Chancellor Angela Merkel’s coalition.
Analysts in Italy were watching for signs of voter anger over austerity measures and towards mainstream parties that have supported them since Mr Monti took over from Mr Silvio Berlusconi in November.
Candidates for Mayor in Parma and in Genoa, who galvanised discontent with mainstream politics, appeared to gain enough votes to force a run-off, projections showed. The Mayor of Verona, whose Northern League party has strongly opposed a new housing tax, appeared headed to a first-round victory.
In Germany, voters in the northernmost state of Schleswig-Holstein appeared to have ousted their centre-right government made up of Ms Merkel’s conservatives and the pro-business Free Democrats, according to exit polls released by local broadcasters.
Although Ms Merkel’s Christian Democrats emerged as the strongest party in Sunday’s election, winning 30.5 per cent of the vote, that would not be enough to remain in power in the state with the Free Democrats, which slid from 14.9 per cent to 8.2 per cent.
The opposition Social Democrats gained about 4.5 per cent and secured 30.1 per cent of the vote, the Greens stood at about 13 per cent, followed by the Pirates with 8 per cent. It remains unclear which party will be able to form a coalition government.
The outcome of the vote was being viewed as setting the tone for next week’s election in Germany’s most populous state, North Rhine-Westphalia. It was also seen as a foreshadowing of things to come when Ms Merkel’s coalition is put to the test in elections next year. Agencies

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Updated 04:05 PM May 07, 2012

LONDON – Prime Minister David Cameron said today that the coalition government must “focus on what matters” in the wake of dismal local election results for his Conservative party.
Mr Cameron said his party cannot use “familiar excuses”, such as low turnout and economic downturn, for the dip in its popularity.
“I get the message, loud and clear. I know that the familiar excuses aren’t enough,” Mr Cameron said in an interview with the Daily Telegraph.
Voters punished the government’s leading coalition partner, for unpopular austerity measures that failed to avert a double-dip recession.
“The message people are sending is this: focus on what matters, deliver what you promise – and prove yourself in the process. I get it.”
Mr Cameron said the government must not be seen as a “bunch of accountants,” but must encourage the “strivers, the battlers, the people with aspiration” and stop their lives becoming a “daily grind”.
The re-election of Boris Johnson in the London mayoral race softened the blow, but there was no mistaking the message from voters to the Conservatives and their Liberal Democrat coalition partners.
“People want to know that we’re not just a bunch of accountants trying to turn around the British economy like it is a failing company, but that we are resolutely on their side as we do this vital work,” said Mr Cameron. REUTERS

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The work is done, there is only progress ahead, nothing will change what God has decreed, there is nothing no-one does that will change the outcome in 2012, everything has been predicted, even if France and Greece were to exit the Euro, all risks has been taken into account, everything will be on autopilot, the economies of US, China and Asia will recover and pull up the EU, everything will be cast in iron very soon, before the end of 2012.
Don’t take my words for it, watch how the public respond to Facebook IPO and you can relate to the “real investor’s sentiments”.
– Contributed by Oogle.