Article: Youth bankruptcy
MMJ
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Young and broke: Addressing youth bankruptcy in Malaysia
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MMJ Comment.
Another expert who is out at sea. This is what we mean when we say the nation including its so called experts are in a molasse of ignorance, miseducation, deep in structural misthinking and unthinking dementia. When youths are bankrupt it is always about their lack of financial literacy. What about the illiteracy of the experts to understand the real root cause?! When people started work in say, 1982 their starting salary is about RM1000 pm. A Ford Laser Hatchback 1.3 car is just RM14,000. If they bought a house in TTDI it would cost just about RM60,000. RM40,000 is the cost of a BMW then! Today that is the price of the cheapest car. A house now? RM400,000 would be considered cheap! Starting salary? RM1500-RM2000 pm. And you want to talk about financial illiteracy of youths. What about your own financial literacy in understanding why these has happened? The answer is in our website.
But let us summarize for you. 95% of money in the country is created by banks when they give loans.(see International Movement for Monetary Reform website https://monreform.org/ )
Notes and coins only 5% in total. Same in all countries. Bank lends 80% to personal loans and personal sector, creating unending permanent increase in prices! Banks lend only 16% to the SME sector which creates 70% of jobs in a nation. So too little jobs in the country is created. Leading to too many people chasing too few jobs. Leading to stunted, inadequate salaries for youth and actually for everyone also.
Then banks push credit cards under the youth' noses. Low salary plus high daily prices, they struggle to lead normal lives. With baby in family they start to take credit cards to survive as a family. Costs of living continue to increase, too high they cannot pay credit cards. Banks sue them they go bankrupt. That is the reason. The illiteracy of experts to understand the real causes; not the illiteracy of youths to manage money!
Further questions and answer on above comment by MMJ
QUESTION: The rationale why banks are reluctant to provide financial assistance to SMEs must be examined and addressed .
MMJ ANSWER: As usual our final proposal does include an overhaul of the banking system to replace debt lending with Musyarakah financing. We have a full Musyarakah Investment House Proposal to implement for the nation. We don't believe in unrelated small tweaks here and there. However to answer your question the Riba Masters owned Federal Reserve, and Bank of International Settlements, want banks to be risk free!(easy to make money!) So they promote only debt lending and implement that via BIS Basel where Central Bank Governors go for policies twice a year.
SME carries more risk than big corporations. So SME to banks is a troublesome class they don't like. (Definition of SME Companies with sales RM50 million and below). Risk weight SMEs is high. BNM will reprimand and BIS will reprimand BNM. So better to focus only on big company lending, and personal loans and personal sector.
Personal loans, housing loans, car loans, credit cards is plenty and relatively small. So their risk weight is low, banks earn pats on the back by BNM, and BIS very happy. But 70%-80% to personal sector and 16% only to SME sector burdens the nation with permanent inflation, and puny stunted wages and salaries. So that is why we must have the realisation and intention to disengage from BIS. To do that we need to wake up those in tranced and enchanted by BIS. So they can start putting nation first above blind obedience to BIS.
Not an easy job but if the top tier have the smallest realisation we can in sya Allah begin already to regain our mental independence from the Riba Masters. Only then we can call ourselves the Vice Regent of God on Earth. Samiqna wa athoqna. We hear and we obey.
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