Apart from Bucking the Fuckeyes, something odd came across my mind earlier.
If Malaysian nominal interest rate currently hovers around 2.7% according to Bank Negara (Interbank interest rate), as it has been for many months now while inflation for October is around 3.2% according to Business Times, then wouldn’t that mean, according to Fisher equation, Malaysia had a negative real interest rate a few weeks ago?
Something is wrong here. Am I taking the right interest rate?
Base lending rate (BLR) however is 6%, according to Maybank while ABN Amro Malaysia offers 5.5%. If BLR is the benchmark, then it’s my mistake.
Nonetheless, if indeed Malaysia had a negative real rate just a month ago, then our current capital outflow might not entirely due to the current huge rate differential between the US dollar and the Malaysian ringgit.
p/s – dirty Republicans at work. But nothing less than an ingenious political maneuvering:
House GOP Seeks Quick Veto of Iraq Pullout
By LIZ SIDOTI, Associated Press Writer 4 minutes ago
WASHINGTON – House Republicans maneuvered for swift rejection Friday of any notion of immediately pulling U.S. troops out of Iraq, sparking a nasty, sometimes personal debate over the war following a Democratic lawmaker’s own call for withdrawal.
Just a day after Rep. John Murtha (news, bio, voting record), D-Pa., stoked a surging political fire over President Bush’s Iraq policies by proposing that troops return home now, Republicans brought a measure to the House floor urging that a pullout begin immediately.
The symbolic vote was intended to fail, and furious Democrats accused the GOP of orchestrating a political stunt.
Republicans’ call for vote for an immediate withdrawal of US troop from Iraq forces Democrats into a corner with no safe way to go.


