THE run on the Ringgit has started, now that there will be no GST this year to save the Government, so get ready for a fresh round of imported inflation.
NO doubt, the Ringgit is still in good shape at RM4.27 against the US Dollar but traders say the next stop is RM4.30, followed by RM4.35 ...beyond that, it is anybody's guess, but it is a downward guess.
WHAT are the causes that will make the Ringgit weak against the US dollar? Well there are many , such as the almost 50 per cent drop over a 52 week period in the price of Brent crude oil and Crude Palm Oil prices.
I see the bad moon a-risin'
I see trouble on the way
I see earthquakes and lightnin'
I see bad times today
Don't go around tonight
Well it's bound to take your life
There's a bad moon on the rise
BUT, the main reason why the Ringgit will tank is self inflicted and it can be traced to a halt in lending rates by Bank Negara, making the US and Europe which have been increasing deposit rates a much more attractive destination for the big money to park themselves there instead of here.
