I do not know whether to laugh or to cry when came across the following article published in Brunei Times yesterday.
By now I believe most readers are fully aware that Brunei have the ability to create unlimited amount of Brunei dollars. Brunei is not revenue constrained in her ability to spend on infrastructure projects. In fact most countries in this world (except for 17 countries in the EU) can create unlimited amount of their sovereign money and spent it on their country developments.
Yet, most people ignore this fact and continue in believing that a sovereign country needs to raise adequate capital first before it can spend. Such outdated thinking continue being permeated by so called economic experts. What a waste!
Issuing bonds or sukuks are relic of gold standard - creation of money backed with gold. The world had been off the gold standard since August 1971.
