To Raise Money May I Suggest The Government Issue 'Rakyat Bonds'

government may need new taxes to pay off its debts, says Tun Dr Mahathir 
Another way is to sell government's land to raise new funds
problem finding money to pay off huge debts left by previous administration
He said that it had been suggested that the government should introduce new taxes.

My comments : 

My advice is PLEASE do not raise taxes. 

There is also no need to sell government assets.

Before I go further what happened to all that fund raising from the rakyat to pay off the 1MDB debt? I believe an account was set up and a few million was collected.

Then it went silent.  But the people are still willing to help the government.

May I suggest that the government draw DIRECTLY on the people to "refinance" its debt. Well a portion of it, not all of it. 

Refinance meaning restructure the debts with a slightly longer payback so that there is less pressure on the government's cash flow.

The present situation in the country is unprecedented. This is a serious crisis where government debt is very high and the money (that was borrowed) has been stolen by the previous kleptocrats. Or money was borrowed by the kleptocrats to pay back other money that has been stolen by them. 

Since it is an unprecedented situation may I suggest that the government turn to the people again. 

I believe the people are still willing to help their government with its debts. 

May I suggest that the government issue bonds - to be subscribed directly by the people? 

Say a 10 year bond with a fixed interest rate matching or slightly better than the current 12 month Fixed Deposit rates.  (Which are about 3.6% or thereabouts). 

The bonds can be issued at 'face values' RM1000 each for easy buying, keeping  and / or selling.

The bonds should be made as user friendly as possible - meaning easily tradeable among the people without having to go to the bondmarket, stockmarket etc.  Buying and selling can be just by an endorsement between seller and buyer on the back, maybe witnessed by  a Commissioner of Oaths.  This would make them as easy as Bearer Bonds. 

What will actually happen is people will buy such bonds and keep them and earn the 3.6% or 4% per annum for 10 years or 15 years. It is an investment for the people. They can even pass on the bonds to their children. 

Again this idea is not new. During the Second World War countries like the US issued bonds that were directly subscribed by the people. They called them War Bonds.

Issuing Ringgit bonds directly to the people will also do a few other things:

i. It will certainly remove some cash floating in the economy.  This will reduce inflationary pressure (because there are less Ringgits in the marketplace). Prices of goods may come down. This will help the people.

ii. It may help to strengthen the Ringgit - again because there are less Ringgits in the market.  (However this point may trigger the economists 'two hands argument' -  'on the one hand, versus on the other hand'.)

Yes the government will still be in debt but to the people. 

Plus the longer repayment period can give the government more breathing space in managing its cash flows.

The government need not raise taxes or sell assets.

Whatever the government does, PLEASE DO NOT raise taxes. 

And please do not impose ANY EXTRA prices or any extra financial costs, any extra out of pocket spending on the people.

✍ Sumber Pautan : ☕ Malaysians Must Know the TRUTH

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