Wednesday, October 08, 2008

What can the Philippines do?

The world banking system is near collapse. Stock markets all over the world fell horribly, that Russia, Indonesia, and Argentina suspended trading today. Japan fell 10% and HK fell around 9%. Wha....the Philippines by around 4.8%.


Consumers are not spending in many countries of the world. Recession is widely anticipated - that could lead to firing, and job losses weeks and months from now. Banks are tumbling, not only in Iceland, where the country is about to declare bankruptcy, but across Europe, and soon Asia (particularly Singapore, Hongkong, and Korea).

We have not seen the worst yet.

What if McCain/Palin won in November? hehehehe.


So what can the Philippines do?

The Philippines can easily let the Peso slide to 55 per dollar to spur consumer spending from OFW families (10 million of them).

Expected job losses would not be very high, even in the electronics industry, provided salaries are controlled - by way of controlling inflation - strictly and seriously. I repeat, all the government have to do is control inflation. And stop wasting precious forex by defending the Peso.

Local industries dependent on exports, should focus a huge chunk of their production to the domestic market and Asia in the next year or two.

We will survive with little scratches, I hope.


The recent press conference of Gordon Brown seems to me that the UK is printing pounds - non-stop!

Trader's watch out.