Adventures in Alternative Currency

I published an epic 4200 word article on alternative currency in Aeon magazine. Take a read if you're having a lazy weekend afternoon and wish to casually reflect on the nature of economic reality. I believe that coming to basic grips with money itself is a good foundation for making further explorations into the financial system, and economic systems more generally. As I say in the article:

"The financial system exists, above all, to mediate flows of money, not to question what money is. Investment banks create financial instruments that steer money from one place to another, with built-in sub-conduits to siphon it back... To draw an analogy with computer coding, we might say that financial instruments are analogous to ‘high-level’ programming languages such as Java or Ruby: they let you string commands together in order to perform certain actions. You want to get resources from A to B over time? Well, we can program a financial instrument to do that for you... By contrast, money itself is more like a low-level programming language, very hard to see or to understand but closer to gritty reality. It’s like your computer’s machine code, interfacing with the hardware: even the experts take it for granted.

The piece has been pretty well received. I'll leave you with some Twitter recommendations, to convince you to read it. The first comes from Izabella Kaminska of FT Alphaville

Nice and very accessible piece by @Suitpossum on the nature of our modern monetary universe... http://t.co/15Gc2oGc2l
— Izabella Kaminska (@izakaminska) August 30, 2013

So you want to invent your own currency http://t.co/wiaUyB0xTd truly amazing post by @Suitpossum that helps you understand #money
— Simone Cicero (@meedabyte) August 30, 2013

Mind-blowing article on the future of currencies - by Brett Scott http://t.co/gso1hmObvG
— Matteo Bianchini (@matteobianchini) August 30, 2013

Work Ethic of 70s, 80s, 90s

Different generations have their own view on working. You like it or not, working is part of our live. No work = No life. However, this equation has since changed to "Working = No life". Do you agree?

Generally, those born in 70s were perceived to be loving their job. They work hard mainly because of 3 meals/day. For them, a secured life means having a stable job with stable income. They believe that with every efforts you put in, that will reward you back later. As such, over time (OT) is nothing for them.

As a responsible 70s, losing their job is a serious matter they tend to avoid. That's why they usually found another job first, before resigning.

How about 80s?

Other than chasing for stable income, those 80s working adults will also look into the job scope, opportunity for promotion, or working environment. They will take initiative to find for better job. Hence, job hopping is very common for them.

Notably, 80s are reluctant to sacrifice their quality of life because of work. So, don't expect them will OT without paying extra.

Free and easy 90s?

Just because almost all of them are graduates, 90s always hoping to find a "reasonably good pay" kind of job. However, employers reluctant think in contrast. This is why many fresh graduates still unemployed, while employers facing difficulties to find suitable candidates.

Other than salary, they also emphasize on working environment and their interest. Otherwise, will they resign? Yes. They don't care and will resign straightaway, maybe, because of their wealthier parents. Why want to force themselves into job? They can become boss and entrepreneur anytime.

What do you think?

How Much You Need To Save If You Ever Want To See Your Kids Graduate?

In an age where the common degree has become a pre-requisite and not so much an advantage, ensuring that you have enough to see your children through a reputable university has inadvertently become one of the most important responsibilities you’ll face as a parent.

Unfortunately, knowing how much to save for your kids’ tertiary education is not an easy question to answer.  In fact, it is downright complex in view of the vast differences in costs from degree to degree, university to university, and country to country.  And even for those who do have a number in mind, there is still the question of when you should start saving, using which savings / investment vehicle.

If you have been wondering about your financial capabilities to finance your kids’ tertiary education, or you have been seeking a workable method to save a sizable study fund for your children; allow iMoney to shed some light on this matter with their latest infographic:

Courtesy of iMoney.my

Lesser Amount can be Withdrawn for EPF Members Investment Scheme effective January 2014

Are you an EPF member who withdraw money out for investment scheme? Then, this is a very important news to you.

Effective January 2014, the minimum basic savings required in Account 1 was revised upward. This will affect all of YOU who withdrawn certain amount from EPF account 1 for eligible investment purpose. Higher limit means lesser money you can withdraw from EPF in the future.

How much will be increased?

Based on the chart below, the percentage increased can be as high as 64%. Generally, the increasing amount was at least 50% once you're age 27 onward.

How to calculate how much can I withdrawn from EPF account 1?

What's the different or impact?

Depending on your age and how much savings in account 1, the impact varies by members. For better explanation, please see example below:

Finance Malaysia hopes this post can enlighten you on EPF members investment scheme withdrawal. You may share this to your friends. Thanks.

Should or Would Government Privatizing MAS? (Aug 2013)

Both of our ex & current Prime Minister already voiced their views regarding this matter. Yesterday, our ex-PM said Government should SELL MAS if it can be run more effectively by private sector. Meanwhile, when asked, our current PM said there was no plan to privatize MAS now because it was on track to its turn around plan under the helm of new management. So?

In fact, this was like a million ringgit question for many speculative investors. Maybe, they or YOU were hoping for the deal to materialize if you bought the shares just recently. Anyway, it won't be as easy as you might think.

1. MAS is a national carrier. It carries the national flag wherever it goes. (Some more, national day is approaching now)
2. How much to privatized? Especially for a still loss-making company... Definitely, Government won't get much if MAS being privatized now.

However, everything is possible given the facts below:

1. National company is just a company anyway. We have just witnessed the privatization of KTM, POS and PROTON few years back.
2. Government's coffer is more important. You can't keeps on letting the pumping money to save a company. Why not let go the 'vampire' of money?

The score now is 2-2. Anything to add?

* Hint: RHB research puts in a target price of RM0.43 for MAS in its report dated 25th July 2013. It this was the offered price, would you satisfy?

Conclusion:

It depends on whom being asked this question. If posted to share investors, the answer would be YES because you most probably can profit from it (if higher premium was offered). However, the answer might be the opposite if posted to Government.

Detroit, Belle Isle and the Libertarians!

Some years ago I suggested that Greece should try to solve its problems by selling some of its islands (If Greece wants my money then I want their islands!). The idea was picked up some German parliamentarians but otherwise (not surprisingly) sank rather quickly. Now, in another part of the world of debtors facing ruin, a similar island-idea has been launched. The trouble spot I am referring to this time is the city of Detroit. This old gem at the border between USA and Canada, once called Motown (after its huge motor industry) by cognoscenti and Rock City by the rock group Kiss filed for bankruptcy some weeks ago. This was the largest bankruptcy of a US municipality ever.

What is the promising idea I am talking about? Well, a group of billionaires, with Rodney Lockwood at the lead, is proposing Detroit to sell off Detroit's downtown island ”Belle Isle” to them. In return, they would promise to turn the island into a private city-state! This private bastion of free market capitalism would have a population of 35000 people, print their own money, write its own laws and so on.

To me it sounds like a wonderful idea. Just the kind of thing that could turn around a city such as Detroit that otherwise seems destined to fall further down its self-dug hole. A thriving Monaco at the centre of an, actually fairly healthy down-town area, could be just the kind of motor Motown needs to power its problem-struck belt of suburbs out of its current misery. Of course, nothing will ever come out of this idea! It never does. Instead the state of Michigan (with the help of Washington DC and the Fed) will have to continue tax and inflate their citizens to bail out Detroit from the worst of its pains and leave the rest of its aching body to a continuing descent into rent seeking, conflicts of interest and agency problems. As always....

Interviewing 非常好歌 Superstar - Quek Shio Yee

Learned piano and violin since young, started writing songs when in high school. This is the background of new born superstar - Quek Shio Yee. After wining the BEST SONG with Lexi Chan, Finance Malaysia blog managed to grab the opportunity to know her better.

When asked about her future direction, the UCSI undergraduate yet to plan for it. Hmmm... I guess her fans out there for sure would loved to see her on stage again. Right?

Full Interview here:

1. When did you realized that you're in love --- with music? How did it started?
   I started my music lessons since I was 4 years old. Since then I've always been musically active. It has been important to me. My parents led me into the world of music. 
   
   
2. On the BEST SONG you won with Lexi, what goes into your mind when she find you to sing in the first place?
   I was introduced to the program by my friend and auditioned. The producer gave me a few demo songs to try, and I was chosen to sing Lexi’s Mission Incomplete. I was happy to sing it because of its sad and powerful meaning. I’m very thankful for the opportunity.
   
   
   
3. Since then, do you feel that you're a superstar now? Any changes/funny things happen in your life?
   I don't feel like a superstar at all. I'm not worthy of that title, and I have a lot more to learn and improve on at the same time. Sometimes I feel self-conscious and anxious in public, especially when someone recognizes me. I am still not used to it yet, but I'm always excited when people just come and say hi and tell me they like the song, I’m sure Lexi would be very happy to hear it too. 
   
   
4. Will you venturing into music industry after graduates?
   I haven't made a final decision yet, but I'll most probably take up a career that involves music. I compose music too, so I will also be taking that into consideration.
   
   
5. Between Passion and Money, which one you prefer in future?
   Passion is more important to me, it is what I need to pursue what I love and to maintain my determination. Money is something that I need to get by with, in life, and it is a necessity after all.
   
   With this, Finance Malaysia would like to thanks Shio Yee once again for the interview. We are confident that she will do well in the future, judging by her excellent voice and talents. All the best!
   
   
   
   
   
   
   

LSFA crowdfunding update: Meet the Hedge Fund Gamblers & The Three Hackers

PICK A CARD

A few months ago I ran a campaign to seedfund a London School of Financial Activism on the crowdfunding site Indiegogo. That was a great success (here's a post I wrote about some crowdfunding tips I learned from the campaign). Then my book got released, which has since swallowed up much of my time, but now I've hired some interns (that I'm paying in alternative currencies like bitcoin, barter and Brixton Pounds), so I've now got more space to refocus back on developing the School.

I've met some awesome people over the last few months, exchanging ideas over Skype with campaigners, entrepreneurs and academics in Oz, Hong Kong, China, USA, Germany, South Africa and various other places, all informing my designs for finance campaigning courses.

In the mean time though, I wanted to share some photos of the crowdfunding rewards that came with the Indiegogo campaign, and one short video which shows one of the reward's magical secret. (More photos can be found on The Heretic's Guide Facebook Album)

The Guerilla Brokers, Junior Traders and Hardass Cityboys

HERETIC IN SOUTH AFRICA

First on the list were 18 sets of Chartered Financial Activist stickers that I sent out to the Guerilla Brokers who contributed under £10. If you see these plastered on the toilet wall of your local City pub, you know where they came from.

Then I sent 100 signed paperback copies of my book for those who opted to be Junior Traders, and 25 hardbacks for the Hardass Cityboys series (each representing one of the wards of the City of London). These books ended up all over the world, admittedly costing me a small fortune in postage fees (note to self for next crowdfunding campaign - it matters where you're posting to). Here's a photo of a mate in South Africa with his copy (Thanks Tim!)

The Hedge Fund Gamblers

Now onto the higher end rewards. Five generous individuals opted to be Hedge Fund Gamblers and as part of their package they received custom poker cards from Steve Shedden of Ivory Graphics. These cards are fit for James Bond, with non-stick coating to ensure super-fast shuffling. I've agreed to go play poker with two of the recipients of this reward, so I imagine I'm going to lose more cash on this than I made from the crowdfunding.

The Three Hackers

DADARA COVER, STIDY COVER, & THERMOCHROMIC COVER

The top rewards were 'The Three Hackers' , three hardcopies with bespoke handmade covers that went to my three top contributors. Locating the right people to design the limited edition covers took some time, but in the end I ended up with fantastic designs from:

1. The Dutch artist Dadara, who is featured in the book for his fantastic Art as Money designs. He very kindly lent me two of his black and white money drawings
2. The brilliant South African political cartoonist Stidy, who also happens to be my uncle. He drew a classic scene out of Moby Dick, set against the backdrop of the City of London
3. My amazingly talented friend Jessi Baker (designer, coder, augmented reality guru, onsultant to peeps like Will.I.Am), and the textile alchemist Lauren Bowker, who designed a cover which literally changes colour as a person holds it (see video below for demonstration)

MY FRIEND CHRIS WORKS HIS PRODUCTION MAGIC

A LOOK INSIDE THE THIRD HACKER

AND NOW, the Hairdryer in Action
Ok, to fully appreciate Jessi and Lauren's cover you've got to watch the end of this video. Enjoy!