Dawn of new age

I am always his fan.

The greatest time, America had, in recent times, was when Bill Clinton was the President. Indeed, he turned over the US economy to GWB Jr. with a huge surplus. Today, the Fed and couple of dozen states are all in deficit and the US economy is in shambles.

Bill Clinton, when asked, "why the Philippines had not fulfilled its potential as a country despite people power and its rich history"?

He replied:

“Filipinos have done great all around the world. And I think that if (there’s) an economic model that was really good for Filipinos and families, I think you should try to get more Filipinos to come here, create a climate…We all need certain things to remind us of the big mental and emotional factors that determine a country’s greatness,” he said.

“One of the things you know for sure, you’re smart enough to do it. You have a huge population which is a positive, and you have massive natural resources. So I have the feeling that you’re at the dawn of a whole new age of your history and the fact it took you longer than Singapore shouldn’t surprise you because (they’re) a smaller country. The fact that it might take you a little longer to get in high gear than China shouldn’t surprise you because they’re a much more authoritarian country,” he explained.

“I wouldn’t worry about why you haven’t gotten there. I would worry about what kind of basic ideas that would be driven home to get you where you wanna go because you can do that. There’s no doubt in my mind about that,” Clinton said.

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He is just amazing.....

What should the Philippines response be?

The Fed unveiled plans to buy $600 billion in government bonds to help the struggling economy. Markets had expected the Fed initially to commit to buying at least $500 billion in Treasuries over several months.

In my previous post, I said:

"I fear that the Philippines peso will surge to 39 to the dollar in December when remittances will be traditionally high and the Feds money starts entering the financial system all over the world. More cheap imports for the Philippines I guess, and our exporters would be in pain. So are the OFWs who get less Peso for every dollar that they will send come December."

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IMHO

As a response, the Philippines should also do the same. Sell bonds worth 200 billion pesos and spend the money on infra projects.

It will not create inflation if the money goes to infra. The new pesos can easily be absorbed with dollar remittances come December. Either way its impact could rein the rise of the peso, or cause inflation. Price monitoring and control should be made strict by the DTI.

More pesos could create more demand locally, helping local industries and would provide capital for various economic activities.

Perhaps this way the Peso can stay at 42.

Asean Currencies

Asean currencies and Australian dollars are up. The Philippine peso now trades at 42 to the dollar, when in 2001 it used to be 56 to the dollar. The Australian dollar is now more than parity at 100.35 US cents.

What is the trend, where are the currencies going?

On the news: The Fed unveiled plans to buy $600 billion in government bonds to help the struggling economy. Markets had expected the Fed initially to commit to buying at least $500 billion in Treasuries over several months.

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Expect a movement upwards, expect more of the same. I fear that the Philippines peso will surge to 39 to the dollar in December when remittances will be traditionally high and the Feds money starts entering the financial system all over the world. More cheap imports for the Philippines I guess, and our exporters would be in pain. So are the OFWs who get less Peso for every dollar that they will send come December.

The Fed is printing more money as if there is lack of money in the system (US economy) which is not the case. I hope it wont lead to double digit inflation - which probably will not happen as most American are belt tightening. I hope it would lead to job creation.

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If you are an OFW, what can you do? If you have a dollar account, convert your dollars now to Peso while it is still at 42 something, I guess.


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GOPs are back in the US Congress. I hope it was not jumping from the pan to the fire...as one commenter in Yahoo noted - to which I agree. Lolz.