The MAS just came out with their policy statement today, so it’s probably being reported on official news outlets and being analysed by “economists” and what not. I’m sure that they will be spinning it positively and focusing on stuff like “still positive future outlook”, how low inflation is great and whatever other stories they like to come up with. But I’ll just summarize what it says to me.

First off, the SGD is not longer gradually appreciating. MAS has decided to scrap our currency appreciation policy and instead target zero appreciation. Honestly, this isn’t a bad policy, since all other major currencies are competitively devaluing. In this crazy world, zero appreciation is relative appreciation already. However, in other words, if you view this relatively, we’re basically devaluing to remain competitive. Fuck the Euro, fuck the USD and fuck the JPY. If everyone else can devalue, why can’t we too? …