One day after the Russian central bank dramatically raised its key interest rate to 17% from 10.5%, Apple today halted online sales of its products in the country due to “extreme” Ruble fluctuations. The latest stunt by Putin administration didn’t work. In fact, the whopping 650-points increase in interest rate only worsen the situation. The Ruble simply crashed as much as 19% yesterday alone. Ruble was traded as much as 77.46 Rubles to a USD.

You can basically see panic Russians everywhere, and these 140 million people are dumping their own local currency Ruble in favour of U.S. dollar or Euro. Panicky Russians are now rushing to buy whatever home appliances before they became more expensive. Imported cars, refrigerators, TV sets, washing machines and other appliances were being snapped up, simply because stores will put a higher new price the next day.

Even if the Russians were not buying home appliances, the crisis of confidence was enough for ordinary citizens to protect their bank savings by exchanging Rubles for U.S. dollars or Euros. The demand for the dollars and euros simply overwhelming rubles. Nobody wants Ruble except Vladimir Putin himself. But will there be a regime change in Russia after Putin’s 15-year-rule? The answer is: only Russian people can decide that.

We’ve written how the Russian economic crisis mirrors the same meltdown that hit Malaysia during 1997/1998 Asia Financial Crisis. But make no mistake about it – the same 1997 crisis could come haunt Malaysia again, as early as next year, 2015. Oil equates to about 45% of Russia’s budget revenues, while Malaysia’s dependence is 29.5%. The palm oil industry which accounts for 5% – 6% of Malaysia’s GDP is not helping the situation either.

The price of Malaysian palm oil has lost more than 24% of its value, shrinking from US$961 early of the year to the current US$727.50. This speaks volumes about fragility of the country’s economy. With the freefall in oil prices, average Joes and Janes today are subsidizing PM Najib Razak administration after the abolishment of petrol subsidies. The local stock market has lost more than 100-point this month alone.

 

Ask former premier Mahathir Mohamad and he will tell you how frustrated he is with his clueless protégé, prime minister Najib, in preparing the country for the next recession. If you weren’t lucky enough to experience the 1997/1998 Financial Crisis, next year could be your lucky year. One should not mistaken 2008 as a global recession. It was the America recession, not an Asia recession and definitely not a China recession.

Depending on how long the capitalism warlords in U.S. and Saudi Arabia prefer to punish Russia, Iran and all other evils who depend on oil revenue, many other “innocent countries” could be dragged into a real “global recession”. And Malaysia is, unfortunately, one of them. Consider it as a collateral damage if you like, but the Americans cannot help Malaysians, no matter how much PM Najib tries to suck up to President Obama.

 

But is there any blessing in disguise to have a recession, and to a certain extent, public unrest due to GST next year? That’s what opposition parties and even Mahathir hope for. Sure, PM Najib may not lose his premiership in an election, but he certainly can be made to vacate his position in a very gloomy economic situation. Najib only knows how to borrow money and bribe voters. That’s why the country’s actual debt is very close to RM1 Trillion.

When was the last time you heard UMNO minor leaders urge their own supremo – Najib Razak – to quit? These parasite minions do not simply open their mouth unless they hate money. And if no action is taken against them for insulting a prime minister in such way, that’s because someone very rich and influential is behind the drama. This is the best time preparing to unseat the prime minister.

 

Of course, the same old question comes to mind. Who will replace Najib if he quits? Forget about former meter-reader Muhyiddin. He’s too pussy to take on Najib, not to mention his English proficiency is as good as extremist and racist Ibrahim Ali. Vice president Zahid Hamidi is courageous but could only command merely UMNO-Malay support due to his extremism approach towards the Chinese voters.

Have you ever wonder what has become of “Kerisman” Hishammuddin Hussein? Ever since he handled the missing MH370 crisis, he has remained silent. He has stopped playing daggers, rifles or racisms like a terrorist, the same way he did when he was the UMNO Youth Chief. He has gone through the baptism of fire – hunger for blood – the same way his cousin, now-PM-Najib Razak, threaten to “bathe the keris (dagger) in the blood of the Chinese” in 1987.

 

So, after cleansing himself with a Perrier bottled water, he’s a born again Saint, ready to take over the premiership. Of course, the agreement is for Hishammuddin to “take care” of Mahathir’s son – Mukhriz Mahathir – to be groomed as the next prime minister. With Mahathir’s endorsement, extremists such as Perkasa and Isma are expected to sing songs of praises about the new prime minister. Racisms and extremisms would temporarily stop.

And Mahathir hope the Malaysian Chinese would throw their support in droves behind Hishammuddin. After all, the Chinese are a bunch of dummies who would make a U-turn the moment UMNO extremists say nice things about them. Perhaps something about how hardworking and patriotic the Chinese are, not to mention their contributions in developing the nation. Awesome – that should do the tricks.

 

Hence, GST and recession are mostly welcomed to kick the prime minister out of power. Mahathir needs both items to paint a picture on how useless and clueless Najib is. Cooks another story about 1MDB’s RM42 billion debt and twists how it was created as his personal vehicle in plundering nation money, and voila, you’ve found a recipe for Najib’s resignation. The plunging Ringgit adds more spices to the nation’s economy instability.

 

Other Articles That May Interest You …

• Meet Mahathir, The Only Person Who Can Save Russian Economic Meltdown
• Meet UMNO, The Obnoxious Scrounger Worse Than Communist China
• Dollar Bull Run Could Wreck Havoc In Asia, Particularly Malaysia
• If Hadi Is Under UMNO’s Payroll, Could Zahid Be PKR’s Biggest Mole?
• Hishammuddin, Greatest Leader Since Nelson Mandela
• Missing Jet – Results of Endless Corruption, Incompetence, Extremism
• What Are The Lessons Learned from Sabah Invasion?

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December 17th, 2014 by financetwitter

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