Philips Curve : Inverse Correlation between Unemployment Rate and Inflation

Philips Curve states that the higher the Unemployment Rate in a Country (for example Recession), the lower the Inflation. This makes absolute sense as the less people working, the less they will eat out and buy luxury or even basic things and hence the demand of such goods must go down and hence the price point of many things will come down and hence inflation will ease.

Of course, in the presence of cheap or plentiful money, more loans will be taken out and that would push up diescretionary spending. Hence the Central Bank raising interest rates is a must do, so that there will be less spending and inflation will come down. 

I am re-reading the Prinicples of Economics as well as the Principles of Accounting to equip myself with the better understanding of how companies, and Governments manage their money.

Principles of Economics - The Circular Flow Diagram

Why no PCR or ART tests for inbound tourists from China ?

I read with some disbelief that inbound tourists from China (who are allowed to travel from today Jan 8th 2023) will not be subjected to any kind of tests PCR (taken normally within 48 hours before departure) or the ART (antigen rapid test) upon arrival.

Over a dozen countries have imposed such tests to protect their healthcare and their citizenry.

Singapore and many other ASEAN countries have not. Is this a foolish act ? 

While I welcome tourists to our sunny island, China has recently experienced a wave of Covid infections running into the (hundreds of) millions, and there may very well be a next mutation from the Omicron originating from China. We may very well see the X- version of the COVID. Our health care providers are stretched to the maximum these past few years (kudos to them) and can they withstand another onslaught ?

SARS and the last COVID - 19 which hit the world with such force was from there.

While the logic is that the virus wanting to stay alive and propogate, will be highly transmissible, it will mutate and emerge as a mild form, and not endangering the host, the fact of the matter is that in early 2020, the first wave of COVID -19 did come from China or was detected from that country.

We are putting our health care infrastructure up to the mammoth task, with this opening without any kind of safeguard, to boost the economy via tourism.

Has this been thought out thoroughly or is this some foolish disregard to present 'business as usual' ?

I really hope there is no 'next wave'. 

  

The shocking COE prices ; what is this due to ? Inflation ?

The certificate of entitlement of the last 9 months for cars above 1600 cc has been hovering over the $100,000 level.

This is a totally unsustainable or untenable if, going forward for ordinary citizens like me.I do not intend to buy a new car, but the after June 2024 (10 year use), my car will either go to scrap and I get back the ARF (additional registration fee) and use that amount (S$ 55K) to buy the PQP 10 year (COE), so that means I will need to cough up an additional $50,000 IF I want to drive the car (E 250) for another 10 years.

For 5 years, I will need then to pay half the amount or about $25,000.

This situation is exacerbated by inflation and the rising costs of living caused in part by the war in Europe, US Fed Reserve raising bank interest rates, and the worsening global economy.

I believe that with the influx of new migrants with wealth, especially from certain parts of Asia, could be one of the reasons why the price of cars above 1600cc (the more luxurious sedans) since if the car costs (for example) S$ 800,000, then $100,000 is 16% of the total cost of ownership of the car. So, for the owner of a Ferrari , Maserati or Rolls Royce,  the total cost of ownership is increased by 16%. But for people who can barely afford $ 60,000 for the basic car, then another $80,000 (for cars below 1600 cc), then it is an additional 125% of the car cost.

Hence, the COE system benefits the more well off.    

Honestly, if the situation continues like this for 6 months or more, (high COE prices, high rental prices, and the new BTO flat prices are easily S$ 350,000 and above for a basic 3 room flat), there will be unhappiness amongst the ordinary folk, its just a matter of time. 

  

2023 Goals

I have several goals to achieve for 2023. 

Business 

Goal 1   

Achieve US$ 3 million in Gross Revenue for FY 23/24 (July - June) ; 

Currently is US$ 500K for FY 21/22. 

How to Achieve it 

We need to sell 2 - 3 Athletic Chambers Internationally. 

Goal 2 

2.EBITDA : (trade secret), enough. 

Goal 3 

Achieve US$ 2 million in gross revenue for calendar year Jan - Dec.

Since company goals are made public, the strategies have to be private, but it entails getting new markets set up, new staff and (potentially) new equity partners in the short run.

Personal 

1. Lose 5 kg (from current 75 kg) 

I plan to do this through a combination of strict dieting, willpower, prudent exercising and cutting down on the 'luxuries' such as alcohol, chocolates and crisps. Not easy but goals are meant to be challenging.

The motivating part, will be I will look trimmer, and feel much better, as well as sleep better.

2. Run a marathon overseas 

I've said this numerous times,and numerous times, I have failed. This time I mean it.

3. Training using high technology equipment to achieve my best health and peformance.

Our company builds athletic chambers ; the purpose is to enhance athlete performance by improving body VO2 max uptake by simulating high altitude environments and forcing the athlete to perform at 80 - 90% of his previous work rate at sea level.

It entails proper nutrition, sleep and DISCIPLINE.

Will I achieve my goals ? 

Damn I am 60 years of age. 

How much longer do I need to kid myself ?