If you can convince, you make them confuse. And Mahathir’s latest answer is to confuse the public that forex intervention by government is accounted as forex loss.
It is merely reduction in forex reserve. It is unlike money totally lost from speculative activities.
To make his cheap propaganda work, he uses Goebell technique to create a bigger lie. One helping him is the facebooker who helped perpetuate his lies on 1MDB.
Problem is he has no locus standi to talk. He graduate on shipping from Liverpool.
Pakatan blogger Mohd Hanizam Bin Yunus aka Blue Ocean has started the ball rolling to confuse the people in order to hide Mahathir’s crime.
He has just made a police report asking Police to investigate why Malaysia’s FOREX reserves have “lost” US$39.6 billion (RM160 billion) between 2013 to 2016 claiming why this is a bigger “loss” compared to Mahathir’s BNM Forex Scandal’s loss of RM31.5 billion (or RM100 billion).
There is a big difference between Mahathir’s BNM Scandal and what BNM did between 2013 and 2016 as part of their move to stabilize their market.
It is complicated but in its most basic form, can be ultra-simplified as follows:
_1) Mahathir’s FOREX scandal:_
You have US$10 and zero RM. You borrow another US$10. You buy US$20 worth USA’s lottery tickets. You lost all your money.
You now have zero US$ and zero RM and owe another US$10.
Your net loss is US$20 or RM80. You are now bankrupt.
Not only is this gambling breaking the rules (this is not your father’s money but belonged to the rakyat) but you made it worse by hiding the losses and lying to the people that you had lost all your money and went bankrupt.
_2) BNM’s operations between 2013 to 2016._
You had previously purchased US$20 at RM3.80.
You have US$20 and zero RM. You sell US$20 at the money changer at the rate of US$1 to RM4 – making a profit of RM4.
You now have zero US$ and RM80, made a profit of RM4 and do not owe anyone anything.
In both cases, your US$ holdings have dropped but in case 1, BNM made a big loss while in case 2, BNM made profits as part of their JOB to reduce volatility of our exchange rate – which was what FOREX reserves were meant for in the first place.
In fact, for the period 2013 to 2015 which Pakatan bloggers allege that BNM had lost money, BNM reported substantial profits of RM5.5 billion (2013), RM6.4 billion (2014),, RM7.8 billion (2015) and RM6.5 billion (2016).
This is very different from the 1992 to 1994 period of Mahathir’s forex scandal were losses were so great that BNM was made technically bankrupt and had to sell off MAS, Telekom, Tenaga and other shares and had to amortize their losses over the next 10 years.
For a more detailed explanation, read here:
Incidentally, Hanizam aka Blue Ocean is a PRIBUMI member and is also the person who very confidentially predicted that our Ministry of Finance would go bankrupt on July 11, 2016.
I had challenged him and OutSyed on this last year but both did not dare to accept the challenge.
Good for them that they did not accept as it turns out Malaysia did not go bankrupt last year.