Saturday, 1 November 2025
3. WHY MALAYSIA IS HOLDING ITSELF BACK
2. MALAYSIA - COLONIAL LEGACY, MULTICULTURAL DILEMMA, FUTURE
1 November 2025
Malaysia is a story of compromise — between empire and independence, race and merit, politics and performance. Half a century after British rule ended, the country still wrestles with the question it inherited: how to build unity from diversity without losing either.
Tag these articles: SEATMS
2. MALAYSIA’S COLONIAL LEGACY AND MULTICULTURAL DILEMMA
Based on in-country interviews
1. The Colonial Blueprint
Modern Malaysia was built on British design. The Empire imported Chinese and Indian labourers to work in mines, plantations, and public works.
Malays were kept in agriculture and the civil service. This created a three-tier society: Malays on the land, Chinese in commerce, Indians in manual labour.
It was efficient for the colonial extractive economy but destructive for national unity. The British system separated communities into economic niches - what sociologists later called a plural society, where groups coexist without integrating.
2. The Ethnic Contract
Independence in 1957 handed power to a Malay-led coalition. The unspoken deal was simple: Malays would dominate politics, while the Chinese retained much of the economy.
In 1971, the New Economic Policy (NEP) formalised this through ethnic quotas for education, jobs and business ownership. It aimed for balance, but produced bureaucracy and resentment. This significant policy was developed following the race riots of 1969.
The 13 May 1969 "race riots" forced Malaysia into emergency rule, suspended Parliament and triggered the New Economic Policy, reshaping the nation’s race-based politics and economy.
Half a century later, the NEP remains entrenched. Economic growth slowed as talented Malaysians - especially non-Malays - left for Singapore and beyond.
3. Diverging Destinies: Malaysia and Singapore
Singapore, under Lee Kuan Yew, rejected racial quotas. Meritocracy became law. Exam results, not ancestry, decided your future.
Malaysia, by contrast, kept ethnic safeguards in exchange for political peace. Both succeeded in their own way: Singapore rich but rigid, Malaysia stable but slow.
The contrast today is stark. Singapore’s GDP per capita exceeds Malaysia’s fourfold - the price and the reward of meritocracy.
4. The Resource Illusion
Malaysia appears wealthy. It has oil, gas, palm oil and tin. Yet this prosperity hides dependence.
Government-linked companies (GLCs) such as Petronas dominate key industries. They fund development, but they also fund political networks.
Scandals like 1MDB exposed how state control breeds corruption. Malaysia remains stuck in the middle-income trap - too costly for low-end production, too risk-averse for innovation.
5. Forgotten Minorities
Colonialism also produced hybrid communities - the Eurasians and Kristangs of Malacca. They are small in number, rich in heritage, but largely invisible politically.
They represent Malaysia’s cultural depth, yet the country rarely rewards diversity beyond symbolism.
Eurasians in Singapore, though a very small minority, have an economic and cultural impact that far outweighs their numbers... . they are "punching above their weight". Their distinct identity stems from centuries of cultural blending - mainly Portuguese, Dutch, British and local Malay lineages - producing a community fluent in both Western and Asian worlds.
They tend to excel in education, languages, arts, and also public service, often bridging cultural divides with characteristically natural ease. This adaptability - a blend of European discipline and Asian pragmatism if you like. This creative spirit, though perhaps visible politically, gives them a significant influence in law, media, and academia.
In the future, as Singapore and Southeast Asia move deeper into global multiculturalism, the Eurasian model of hybrid identity could become a social prototype: cosmopolitan, bilingual, rooted yet open. They represent what small nations increasingly need: people who can move between worlds without losing their own identities.
6. Crony Capitalism in Socialist Clothes
Malaysia is often called socialist. In truth, it practises state capitalism. The government owns and directs much of the economy, but for patronage rather than equality.
The NEP’s ethnic balancing replaced class struggle with racial entitlement. There is no strong welfare state, weak labour rights, and underfunded healthcare.
Wealth flows upward through GLCs, not downward through redistribution. It’s capitalism with ethnic quotas - or, as one of the interviewees put it, “socialism for the connected.”
7. Singapore’s Counterpoint
Singapore’s model is the mirror image: small, centralised, technocratic.
Lee Kuan Yew enforced efficiency, not comfort. Civil rights were secondary to results.
Malaysia values pluralism; Singapore values performance. One protects identity, the other rewards achievement. Both exclude something essential - Malaysia lacks drive, Singapore lacks warmth.
8. The Malaysian Crossroads
Malaysia faces a defining choice:
- Continue with ethnic protectionism and risk long-term stagnation.
- Or shift towards meritocracy and risk social upheaval.
The brightest Malaysians are already voting with their feet. The country risks losing not just its talent, but its confidence.
9. Lessons from the Colonial Past
The British left Malaysia with roads, schools, legal system, accounting practises, a parliament even ... and also divisions.
The challenge now is not to erase difference, but to modernise it ie to turn diversity into "strength rather than suspicion".
If Malaysia can elevate merit over ethnicity, cooperation over patronage, its pluralism could become its greatest asset.
10. Conclusion
Malaysia’s struggle is not about geography or race. It is about governance.
Colonial structures still shape its politics, but they need not define its future.
The question is no longer who owns the soil
(Bumiputra = indigenous Malays given preferential rights in the name of national equity and stability),
but how to organise the future.
Friday, 31 October 2025
POWER AND THE GEOGRAPHICAL PIVOT OF HISTORY
Thursday, 30 October 2025
WHEN EMPIRES COLLAPSE... WHAT WILL "COLLAPSE" LOOK LIKE
Institutions stop functioning, governments lose authority and break their own as well as international rules
Currencies lose value, savings evaporate, at first there is a rush for the dollar and then it is abandoned, hard assets and necessities keep pace with inflation, trade freezes up
Elites turn on each other, Pinky and Perky become Punch and Judy, from consensus to chaos, while the public can only think "survival"
Infrastructure decays, borders blur, society fragments, the military fractures.
What we have is a dominant centre (the U.S./ West, maritime) that builds globalisation, then overspends and overextends, and now faces rival powers (China, continental) and structural fatigue.
The next crisis won’t be just economic this time... it will reflect a systemic shift to a multi-nodal global order, a moment where the US empire no longer holds the levers of power it once did.... and has shown no signs of being able to adapt to this kind of Order (they won't listen, they send in the military; where common sense suggests they should negotiate a losing hand).
The signs are with us. The collapse isn’t far, it’s set up already.... we have a sequence but no clear timeline. For sure, it won’t all fail at once, it'll unravel piece by piece, until a normal, stable and surprise-free life becomes a distant memory.... then there will be a recalibration and New Order of some sort.
Here is a five-stage sequence of collapse, with brief examples illustrating each step.
1. Fiscal Overstretch - Living Beyond Means
- Empires spend more than they earn — on welfare, wars, and vanity projects.
- Example: Late-stage Rome debased its coinage to fund armies; the U.S. will incur a $2 trillion deficit this year.
2. Market Rebellion - The Bond Revolt
- Investors lose confidence and demand higher interest to lend. Debt servicing balloons; new borrowing pays off old debt ("debt monetisation" aka a Ponzi scheme).
- Example: The U.K.’s 2022 gilt crisis forced the Bank of England to step in; Italy in 2011 nearly went insolvent on rising yields.
3. Currency Erosion - Printing and Panic
- Central banks print to cover deficits. Inflation eats savings, capital flees, gold and hard assets soar.
- Example: Weimar Germany 1923; more mildly, the post-Covid surge of U.S. money supply that fuelled asset inflation.
4. Social Fracture - The Revolt of the Debtors
- Prices rise, wages stagnate in real terms, services collapse. Trust in elites erodes; protests and populists fill the streets.
- Example: France’s gilets jaunes; U.S. polarisation and street unrest; collapsing faith in parliaments (in democracy) across Europe.
5. Institutional Breakdown - From Gridlock to Chaos
- Governments turn inward, bureaucracy freezes, corruption explodes, freedoms are restricted and the military or regions assert autonomy.
- Example: Late-Soviet paralysis in the 1980s; Washington gridlock and politicised justice today; failing states in West Asia from Lebanon to Libya; France's five Prime Ministers (5, sic) since 2022.
Summary
Collapse starts slowly in the bond markets, moves through money, and ends in public rebellion. Collapse is when people stop believing the system can fix itself.
That’s how empires die, that's how this Empire will die: first financially, then socially, then spiritually.
Wednesday, 29 October 2025
END-STAGE EMPIRES ARE RUN BY THEIR BANKERS
29 October 2025
Bessent steps in to protect profits of friendly investors.
FINANCIAL RESCUE AS IMPERIAL OVERREACH
The strange case of an American Treasury Secretary covering massive hedge fund losses with public money.
Bessent, Argentina, and the American Taxpayer.
1. Story – The Bailout Nobody Asked For
Scott Bessent, U.S. Treasury Secretary and long-time Wall Street insider, has brokered a US$20 billion rescue swap with Argentina.
Officially, it’s designed to stabilise a struggling emerging-market partner.
In practice, it protects U.S. hedge funds - notably BlackRock, Pimco and Fidelity - from heavy losses on their Argentine bond positions.
Bessent’s history with these hedge funds goes back decades. Many now see this as a bailout for his old financial friends, not a policy in the interests of the American taxpayer, who shoulders the inflationary and fiscal costs.
Argentina’s inflation, at over 250%, and its looming debt repayments make this a highly risky commitment of U.S. backing.
(Buenos Aires Times source)
2. Context – Empire’s Financial Reflex
This episode illustrates a deeper trend in late-stage empire economics:
- The financial and political centres of power have fused
- Wall Street gambles abroad, and when those gambles fail, Washington steps in.
Rather than allowing markets to clear the mess themselves, the imperial centre props up its own capital class, diverting public money away from domestic renewal.
This is not new — it is a recurring pattern in end-of-empire histories.
The centre protects capital flows outward, while the periphery remains indebted and dependent.
3. The Moral Hazard Machine
Such rescues create what economists call moral hazard:
- investors take reckless risks knowing they’ll be saved
- taxpayers face austerity measures (cuts in services) and/ or tax rises, to cover bailouts.
The results are predictable:
• Resource diversion - tax and Treasury support flow to global finance, not to Main Street
• Accountability collapse - bailouts happen and the press gives out diplomatically worded cover stories (aka propaganda) to keep us on board
• Erosion of legitimacy - meanwhile, ordinary citizens are not stupid and know very well when elite speculation has gone wrong.
How is it possible to reform a financial system when the stability depends on shielding the same insiders who caused the instability in the first place? ... reform becomes impossible.
4. End-of-Empire Paradigm
Historically, empires in decline exhibit three common traits:
- Finance captures the state - public institutions serve private capital
- Financial overreach - production is outsourced to vassal states, but instead of profits being reinvested into (real) resources and further productive capacity, they are put into financial (paper) assets like treasury bonds and stock markets and property
- Legitimacy loss - citizens sense the rules no longer apply equally - asset prices inflate for the rich, while High Street prices inflate for the remaining 95+%.
Bessent’s Argentina deal shows an imperial centre spending its dwindling credibility to protect its own network ie a short-term fix that further deepens long-term fragility.
5. Outlook - When Empires Become Credit Lines
This is what happens when finance replaces industry as the core of power. The global trade reserve status of the dollar gives America and its financial class immense power as we see in this case, but is also the cause of its undoing.
An empire once built on production and innovation now survives by extending credit (printing) to others and to itself - it monetises its debt ie borrows more and more at the short end and prints money to cover the mounting interest payments and debt rollover repayments.
Such cycles always end the same way:
the financial core overextends, confidence and trust erodes, the bailouts become bigger, the taxpayers angrier, the legitimacy thinner, until the system collapses under its own weight.
What does "collapse" look like?
At each deal like this one, policy-makers push the can a little further down the road, saving the system temporarily... but only for themselves.
References
• Buenos Aires Times, “Bessent steps in to protect profits of friendly investors in Argentina” (Oct 2025)
• Ray Dalio, Principles for Dealing with the Changing World Order (2021)
• Paul Kennedy, The Rise and Fall of the Great Powers (1987)
When Empires Bail Out Their Financiers, short term stability leads to chronic fragility.
Monday, 27 October 2025
HOW THE FOURTH TURNING WILL PAN OUT
RAY DALIO ON THE EMPIRE BIG CYCLE
Thursday, 23 October 2025
4. GOLD, THE DOLLAR, THESE FOREVER WARS AND GOLD'S FLASH CRASH
GOLD, THE DOLLAR, AND THESE FOREVER WARS
1. The Dollar Trap
It might seem utterly foolish for Russian companies such as oil giants Rosneft and Lukoil to leave assets in US dollar accounts, given the near-certainty of eventual confiscation.
But what choice did they have? The dollar remains the central clearing currency for global trade, especially in oil, shipping, insurance, and large-scale long-dated commodity contracts. To pull out would assure legal actions, fines...
Even when nations want to diversify, the reality is that the dollar’s network effect is overwhelming. It underpins the international payments system (SWIFT), and most trade finance is still denominated in USD. Cutting oneself off from the dollar is near impossible.
2. Gold's Flash Crash
Gold fell sharply last Thursday and again on Tuesday (today is Thursday 23 Oct 2025).
Analysts cited “easing trade tensions” between the US and as the US moved to compromise over the export of refined rare Earths from China) and speculation that the Federal Reserve might have to delay further rate cuts - both factors said to have strengthened the dollar, its relative strength.
But when we look at the data, the DXY (Dixie, the Dollar Index) barely moved - roughly from 98.8 to 99.0. This is hardly a “strong dollar rally.”
It raises a fair question: are markets being "over-interpreted" to fit policy-friendly narratives? Ie, are we getting propaganda even in our macroeconomic data? Is the significance of these forever wars being obscured?
The timing of these moves over the last week suggests something else.
Gold’s decline coincided with rumours of progress towards peace in Ukraine: fewer geopolitical shocks tend to depress safe-haven assets.
Then, when Washington sanctioned Rosneft and Lukoil, gold rebounded.
That makes sense: sanctions restrict oil supply, drive up prices, slow global trade, and threaten growth, which create exactly the conditions under which investors hedge with gold.
3. Central Banks Keep Buying
Step back and look at the long-term trend.
Central banks, especially in Asia, the Middle East, and emerging markets, have been accumulating gold steadily for two decades.
They buy as part of a de-dollarisation strategy, exchanging printed local currency for physical metal that can’t be frozen or sanctioned. And now selling out of U.S treasuries or at least not investing in in order to obtain dollars and with these by gold.
According to the World Gold Council (2024), central banks added over 1,000 tonnes to their reserves in just two years — the largest accumulation since records began.
China, India, Turkey, and Poland have been the leading buyers. Remember that since 1971 the US dollar as not been backed by anything other than a promise from the US treasury.
The logic is simple: monetisation of debt by printing expands the money supply while the supply of physical assets remains constant, causing inflation ie reducing the purchasing power of a fiat currency.
- Inflation erodes fiat money.
- Gold protects purchasing power.
- Plus, in an era of dollar weaponisation, gold is one of the few assets that is truly sovereign.
4. The Investment Gap
Ray Dalio (Bridgewater Associates) and strategists at J.P. Morgan recommend holding 15–25 % of total assets in gold as “wealth insurance.”
Yet institutional portfolios such as pension funds today hold less than 1 % of their assets in gold. Retail investors hold even less.
If institutions were to rebalance towards that 15 % level, it would represent a massive structural demand shock ...a tide of capital that could propel gold prices way beyond their current levels.
Gold is not only a store of value but also a reserve asset for trade ie a settlement medium between central banks.
In other words, it operates as a form of real money, even in a fiat world. "Gold is money, all the rest is credit", said J P Morgan himself back in 1912!
5. The Real Risks
For private investors, the question is not whether gold’s price will fluctuate - it surely will. It’s about sovereign risk (the risk of a state breaking its promise to repay by defaulting on its debt, freezing assets, imposing capital controls, or otherwise preventing investors from getting their money back):
- Will governments impose capital gains or sales taxes on gold transactions?
- Could they impose capital controls on moving bullion across borders?
- Could “anti-hoarding” or “windfall” taxes appear under the pretext of financial stability?
The danger isn’t in gold’s volatility — it’s in the system’s desperation for revenue.
When the debt burden grows too large to service, governments look for assets to confiscate or revalue.
6. The Takeaway
Gold remains the last refuge for those seeking no counterparty risk (the risk a bank, broker, or borrower will fail to meet their obligation) ie seeking a physical asset whose supply is limited and whose value cannot be "conjured" by printing presses.
Gold is in effect an anchor of trust in a world of promises.
As debt-to-GDP ratios soar, and money supply expands at “eye-watering” speed, currently:
U.S. GDP: ≈ $30 trillion
U.S. National Debt: ≈ $38 trillion
Debt-to-GDP ratio: ≈ 124 %.
The logic of holding gold grows clearer - there's no way that dirt is ever going to be repaid in full unless inflation can burn it away ie inflation about interest rates over many years indeed decades... but who would continue to invest in U.S treasuries?) or the system will fracture under its own weight. A structure - political, economic, or social - becomes so large, complex, and unsustainable that it collapses from internal pressure, not from outside attack, ie costs, contradictions or inefficiencies grow faster than the system's ability to manage them - debt, inequality, bureaucracy, or corruption grow faster than productivity and trust, so the system eventually implodes from within.
It breaks down naturally, like an overloaded bridge snapping.
Fiscal Dominance and Overstretch
The state’s debt burden grows faster than the tax base.
Interest payments consume a rising share of govt revenue.
Governments start to monetise the debt (print or issue short-term paper to fund themselves).
Investors lose confidence → rising bond yields → even higher borrowing costs → ... a vicious spiral.
In either case, those holding tangible, finite assets will sleep better!
References:
- World Gold Council (2024) – Central Bank Gold Reserves Data
- Ray Dalio, Principles for Dealing with the Changing World Order (2021)
- J.P. Morgan Private Bank, 2025 Outlook: Real Assets for a Real World
- YouTube: The Gold Story – Explaining the Numbers
Why Central Banks Keep Buying Gold
(This graphic shows the flows, incentives, and price linkages.)
Monday, 20 October 2025
1. WHAT IS ASEAN
1. WHAT IS ASEAN
Tag these articles: SEATMS20 October 2025
1. What is ASEAN
ASEAN stands for Association of Southeast Asian Nations.
It was founded in 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand to promote peace, stability, and prosperity in Southeast Asia.
Today it includes 10 member countries, with Timor-Leste preparing to join as the 11th.
2. The Members
Indonesia
Malaysia
Philippines
Singapore
Thailand
Brunei
Vietnam
Laos
Myanmar
Cambodia
(Timor-Leste - observer, expected to become full member soon.)
3. Why It Was Created
ASEAN was born in the Cold War era, when Southeast Asia was unstable and divided.
The founders wanted to prevent regional conflict, boost trade, and create a sense of unity.
It was also a way to keep outside powers - the US, China, and the Soviet Union - from dominating regional affairs.
4. How ASEAN Works
Decisions are made by consensus, meaning every member must agree.
The ASEAN Secretariat is based in Jakarta, Indonesia.
Annual Summits bring together leaders and partners such as China, Japan, the United States, and the European Union.
It operates through three main pillars: Economic, Political-Security, and Socio-Cultural.
5. Main Achievements
ASEAN Free Trade Area (AFTA) reduced tariffs and boosted regional trade.
The ASEAN Community (2015) encouraged closer economic and political integration.
The ASEAN Regional Forum (ARF) provides a platform for security dialogue.
Visa-free travel agreements among several members have encouraged tourism and mobility.
6. Ongoing Challenges
Economic gaps remain wide between richer states (Singapore, Malaysia) and poorer ones (Laos, Myanmar).
Human rights and democracy issues persist, especially in Myanmar.
The consensus model slows decision-making in times of crisis.
The region faces pressure from both China and the United States, each seeking influence.
7. Summary
ASEAN is Southeast Asia’s family of nations – a community built on peace, cooperation, and regional identity.
It has prevented wars and encouraged trade, but its slow, cautious style limits its global impact.
Glossary
Consensus – all members must agree before taking action.
Integration – combining economies or policies to work as one.
Regional forum – a meeting space for countries to discuss shared issues.
Bloc – a group of countries acting together politically or economically.









