Wednesday, January 19, 2005

the price of corruption

1.8% - 4% of business revenues are paid to corrupt government official. P1.8 - P4. for every P100.
For a corrupt person to collect an economic rent equivalent to minimum weekly wage in the Philippines, a corrupt employee collects for every transaction of P6250. - P13,889. That's P250. more money the corrupt person can spend on goods and services that would have been P250. cheaper for every consumer had corrupt employees not been corruptible.

Abundant money without the equivalent goods and services cause inflation.

More money in circulation than available goods and services increases the price of goods and services.
Corrupt behavior is an expensive reward for every one.

te mely

Monday, January 17, 2005

Filipino Financial literacy

Investing in stocks & bonds are starting points of compassionate capitalism both to investors and business owners.
The financial market are source of capital to expand and improve their business.
To participate in the market, a business must open not only its books but its operation to outside auditors and management consultants.
To be publicly traded, business owners must accept the fact that owners/shareholders self-interest is price of their shares, earnings and dividends.
A business owner who does not understand the market does not invest and has no intention of listing the business in the market.
Open competition is a tool to prevent corrupt, fight corruption and a major tool for prosperity.
te mely 55.

Friday, January 14, 2005

Critical Thinking a tool to fight corruption & dictators!

How to think critically and reason systematically.

Critical thinking and systematic reasoning must be taught from infancy by methods specific for the age.
A baby and a toddler must be allowed to experience, hear, see and touch for each new word and activity.

Corruption not the cause of poverty

Corruption is poverty of one's soul.
We are all corrupt, just as we are all sinners! Me, you and the Catholic church hierarchy! The Catholic church cathedrals and monasteries are run dogmatically by individuals with the same self-interest as you and me - financial and spritual survival.

Solution must come from the bottom - us, you, me & the Catholic ministers not from the top down. The masa must demand from the Philppine government officials - Pres. Arroyo and law makers in each barangay, poblacion, provincia and congress to lower taxes, remove barriers to trade and exchange of goods and services, reduce regulations to start and run a business. Business, small, medium or large are the ones who creates jobs. Jobs reduce poverty.

All Filipinos, you, me & the Catholic ministers, must not practice and support corruptive behavior in our daily interaction with each other, family or non-family, co-workers or employers, private or government officials, Pres. Arroyo or Mayor Lim.

Corruption is when you bribe your children with gifts before they do something. Rewards should be for good behavior not before a behavior.

Corruption is when you bargain down to last centavo someone's tienda. Open pricing of someone's tienda should be the norm to force the tiendera/o to calculate what price is profitable and what price is a loss. Price should NOT be determine by the bargaining skill of the buyer. A sale must be a win-win transaction for the tiendera to make a profit and the buyer to get the best price for the goods or service. If someone wants to sell at a losing price to recover his/her capital, it is her/his loss, not the bargaining skills of the buyer. If the tiendera/o makes a profit, well, that's what they are in business for - to make a profit.

Corruption starts in small things from the very beginning of our Filipino culture. It will only stop if all of us will start on small things - you, me and the ministers of the Catholic church.

Corruption is really common whether you live in the Philippines or the United States. The difference is in the Philippines, it is chaotic corruption clearly dramatized in Filipinos non-compliance with traffic signs, lanes and rules of the road, pedestrians and motor vehicle drivers alike. That my friends is corruption, a clear disregard of the law of the road.
Dogmatic Catholic church supports chaotic corruption, income distribution, dogmatic constitution, discourage dissent, individualism and self-reliance.

A business person in the Philippines do not know who, how many and how much to bribe in order to start or get the business going. Not knowing means an inflated price margin for his/her goods and services to cover those bribes, in order to make a profit at the end of the day. Profit is business main goal.

A corrupt person really has no guilt in his/her behavior. A recipient of a bribe considers it Economic Rent. The corrupt person the landlord, the briber the tenant. The corrupt person thinks of him/herself as a place holder of that position. When the briber's time comes to be the place holder, he/she will do the same, collects economic rent. That cycle can be terminated only if the chain is broken by shame or legally.
To make corruption well organized, the rent must be open and transparent. Rent depends on supply and demand. That's what free market does.
When people and drivers in the Philippines takes the time to cross only at the pedestrian lane, drive within the boundaries of a lane and acknowledges first come, first serve service even if there's no rope line will corruption be manageble enough not to hinder the prosperity of Filipinos.
Individualism and self-reliance are necessary component to practice freedom of expression, freedom of religion, freedom of fear and pursuit of happiness.
Critical thinking must be taught in Philippine schools from grade school to college.

Dollar remittances & Inflation correlation!

Dollar remittances can spur economic growth only if consumer spending equals the quantity of goods & services available. More dollars than goods & services means greater rate of inflation. Inflation means higher prices. Inflation is a monetary phenomena. More goods & services causes deflation, an 'never happen' factor in the Philippine economy. The Philppine government - Pres. Arroyo and lawmakers must lower taxes, reduce tariffs, remove constricting regulations to start businessess -small, medium or big. It is the only way to prosperity.

Philippines' inflation of 7.9% is not acceptable!

Inflation is cause by Filipinos having too much money on hand to buy few goods and services!
Where did that money mostly come from? From outside the Philippines!
The Philippine government must use the dollar surplus from money remittances inflow to increase the quantity of goods and services available for purchase by all Filipinos by free trade, remove constricting regulations to start a business of buying and selling goods, starting a service & knowledge business, remove government barriers to competition.
Filipinos have the physical and mental capacity to increase output of Philippine goods and services.

Pres Arroyo, men & women of the Philippine congress!!!

Four years ago, the United States ranked fourth as the freest economy in the world. But "the rest of the world has begun to catch on to the dividends that freedom pays," Mr. Ed Feulner, Heritage Foundation president. said. Looking at the global picture, however, the good news is many more countries are freeing, deregulating and privatizing their economies and becoming much more prosperous as a result.
In case after case, countries that reduced taxes, dropped trade barriers, eliminated regulations and took other steps to free their economies saw their standards of living and per capita incomes rise. Among the 155 countries analyzed by the Index, 86 turned in better scores this year than last.
Iceland, for example, now in the top 10 "most free" economies in the world, has been doing steadily better since cutting taxes and deregulating its banks, turning in a compound growth rate of 31/2 percent.Lithuania, the second-freest country in the former Soviet bloc, now boasts a private sector producing about 80 percent of its economic growth.
The 10 freest economies: Hong Kong, Singapore, Luxembourg, Estonia, Ireland, New Zealand, the United Kingdom, Denmark, Iceland and Australia. Index of Economic Freedom, published annually by the Heritage Foundation and the Wall Street Journal, which rates the world's economies on a broad range of fiscal, regulatory and free enterprise measurements.

When is the Philippine economy going to catch up?
Reduced taxes, dropped trade barriers, eliminated regulations and take other steps to free the Philippine economy to improve the standards of living and per capita incomes of all Filipinos. It is the only way to prosperity!

Thursday, January 13, 2005

Zero-Sum Process...

Capitalism, says Economist Thomas Sowell, is not a Zero-Sum Process (one gains only if others loses). Capitalism works in economies that follow the pattern of allocation of scarce resources which have altenative uses.

What are bonds?

Company Bonds are legal agreements between an investor to lend a fixed amount of money today and a company to use in the business at an agreed fixed rate at a fixed date in the future. Investor is the creditor, company is the debtor. For example, a company issues a bond of $10,000. for 4% interest per year for 1 year. The company must pay the investor the agreed upon amount plus the interest at the agreed date even if the company is not profitable at that agreed date. If the company is profitable, the company will only pay the agreed upon amount and interest. Investors risk limited to the company going belly up.

Peso at five-month high on good economic data

Leave the market alone, it will correct itself!
The currency market is the purest market of all. It is all transaction and no goods. History of Money by J. Weatherford. [p.256]

Exchange rates links a country and the rest of the world, both in goods/services and financial/capital markets. The Marketing of Nations [p.265]

legal protection of BSP officers???

MANILA, PHILIPPINES |Thursday, January 13, 2005
BSP: three key changes to charter to boost bank supervision
'Bangko Sentral ng Pilipinas push for three priority changes to strengthen banking supervision, focused on consolidated supervision, a graduated scale of penalties for violators and increased legal protection for its officers.'

Why were BSP officers sued in the first place before? Is it the perception by private companies & business community that they are weak, corrupt and powerless? Or are individual companies & business individuals themselves weak, corrupt and powerless that they expect BSP officers are too?
We need a few strong willed, independent thinking, self-reliant, self-confident BSP officers as well as few strong willed, independent thinking, self-reliant, self-confident business leaders to make Capitalism work! Balance, balance, balance. Economist Thomas Sewell says Capitalism does not work in a Zero-Sum Process.

'Radical & Holistic solution to illegal immigration'...

President Bush's plan to liberalize the nation's immigration laws to allow millions of undocumented workers the opportunity for legal status appears to be on a collision course with newly aroused sentiment among House Republicans pushing for a crackdown on illegal immigration.Many supporters say a temporary-worker program would enhance national security by identifying who is in the country; by boosting the economy with a continuing supply of highly motivated, low-skill workers; and by helping undocumented workers avoid exploitation by granting them the protections that come with legal status. The workers, meanwhile, would be free to return to their home countries, allowing them to stay connected with their families
By Michael Fletcher, Washington Post | January 3, 2005

Military historian,essayist, author of Mexifornia, Victor Davis Hanson solution makes sense!

1. Adopt sweeping restrictions on immigration.
2. End separatist ideology with the 2-tier legal system for illegals. (p.147)

Congressmen & Congresswomen please read Mr. Hanson's book. He has a unique perspective accumulated through his experiences living with, working along and interacting with legal & illegal immigrants.

Wednesday, January 12, 2005

Money Remittance from USA to Php

Remittances to the Philippines impacts the receiving family directly and are better than government or even ngo aid! however,
Remittances to family in the Philippines must be given with purpose without any strings attach. If you can not afford to send money to your relatives, then don't! Your main responsibility after God are your own needs then your immediate family. Must be in that order.
Compassion does not mean generous handout with money! Money is not wealth. Wealth are assets you save to buy what you need. It is better to share the tools for knowledge and insight. It is better to share marketable skills you develop through the years living in USA. It is better to market your own skills in ways no one has thought about how! Creative thoughts are rare and precious. Take time to think nothing! Heightened your sense of aha! No one has thought of this way before! Be observant of every aspect of your life, your surrounding, your family!
you can be whatever you want if you ignore society's expectations and have the strength to follow your own.
Justice Clarence Thomas

Tuesday, January 11, 2005

Tariffs on rice imports

Tariffs hinders competition and decreases productivity.
It is protectionism at its best. Protecting government subsidized importers and producers of rice.
It is not protecting the individual consumers and small producers of rice.
Tariffs inhibits creative activity in production and marketing of rice, badly needed to compete in the global world we live in.
The Philippines government must let go of it's hold on individual investors, small business entrepreneurs and individual consumers with lower taxes and negligible tariffs to create an environment of individual creative endeavors and self-reliance.

President Macapagal, are you an economist at heart?

Attention: President Macapagal
Old Hongkong (maybe not present Hongkong under China)is a working model for the Philippine economy

Hong Kong is a free economy because it enacts the British rule of law.
Hong Kong rank as the world's freest economy because of its free port, low taxes and little government intervention, according to the Heritage Foundation and the Wall Street Journal.

Philippines have rule of law in the books too but applying the law in practice is another story. Need to instill independent thought and self-reliance in our young.
Reduce tariffs, reduce taxes and govern only to enact the law.
It is our only chance for prosperity.

Economic Growth in the Philippines

Prices, prices, prices
Free market economies, of which the Philippine market poorly imitates, Prices are conveyers of bad and good news. When a lot more Filipinos wants the same thing, the price goes up. When there's a surplus, the price go down.
When the government gets involved in that thing that is priced by the people, then that price is not true free market price anymore.
When Bangko Central involves itself in the currency market, the true market price of the pesos is not true anymore, even if they don't involve themselves in the currency market today..

Basic Economics: by Thomas Sowell

Basic Economics: A Citizen's Guide to the Economy by Thomas Sowell
Economics defined as from the word 'economize' or scarcity.
It is scarce when more people wants the same thing.

Before my generation, Filipinos never have to economize because we are blessed with fertile soil, tropical weather and optimistic soul.
God also give us Free Will when our first parents eat the fruit of the tree of knowledge of good and bad. Free will is the foundation of our independence and creativity.

Price, Price, Price is the best instrument to manage scarcity.
The only difference is how to manage price - Marxism, Socialism, Feudalism, or Capitalism. The first three proved through generations as inequitable, incompatible and irreplicable. 18th century economist & philosopher Adam Smith, Milton Friedman - 20th century economist and present day economist -Thomas Sowell said so through the years.

Filipinos, it is our only chance for prosperity!

Self-reliance & Independence awards

Sunday, January 02, 2004 OnLine Edition Best 2004 entrepreneurs
Bohol SMED Council (SMED-C) and the Department of Trade and Industry (DTI) awarded plaques to successful local entrepreneurs and awarded citations to 14 of its partners in the implementation of the national SME agenda, December 23.

Competition and rewards are the best incentive for creative minds.
Creative minds are scarce resource of a nation.
Creative, independent minds think for themselves.
The best location for their minds to prosper is in the freest of all nations - the United States of America - a nation of believers in God's infinite wisdom.
United States of America is model.
Filipino immigrants of the United States of America who can, must expatriate the capitalistic sentiments of the USA to Filipinos in the Philippines - Individualism, Self Reliance and limited government!
It is our only chance for prosperity for all.

BSP manipulation of USd/Php market - not good!

Remittances from overseas created a surplus at $1.410 billion in the 3rd quarter according to latest data from Bangko Sentral. Higher than the $1.068 billion surplus in same 'o3 quarter.

The Philippines is drowning with dollars.

Please Lord of all, I pray...
Let the creative minds of Filipinos blossom. Remove the government- influence manipulation of the currency market. Enrich the independent minds of individual Filipinos to embrace Capitalism in Adam Smith, Milton Friedman & Thomas Sowell's model.
It is our only chance to better ourselves.

Poverty reduction recipe

Self Reliance

A creative mind is the best asset a nation have.
A self-reliant mind is creative.
A creative self-reliant mind is the best source of resourcefulness.

Frugality is Humility

To be humble is to be frugal.
Savings takes frugality.
To start a business one needs frugality and humility to keep loyal clientele.
Less taxes, less government regulations, less tariff is the best atmosphere for small business to prosper.

tsunami's effect on the peso (PHP) valuation

After the flood and mudslide in Quezon, the Philippines was spared the destruction of tsunami. Yet, the PHP depreciated inspite of weakening USD.
Filipinos in the Philippines must be creatively self-reliant, humbly frugal and courageously take calculated risk.
Philippine law makers must reduce taxes, reduce tariffs, reduce business regulations - best formula for happiness, prosperity and salvation from the pangs of lower expectations of prosperity.

Earth quakes under the sea & deluge follows!!!

God planted the Tree of Life and the Tree of Knowledge of good and bad. God also created man, woman and the serpent who tempted the woman to eat from the forbidden tree of knowledge. We are 'fallen beings', starting 'our life in this world in a vale of tears' and naked of the fruit from the tree of knowledge of good and bad.
The earth quakes in labor pains, to signal the coming independence of God's creation out of the birth canal, immersed in amniotic from inception, the Spirit of the soul in Noah's ark, resurrects after the flood, to worship the Lord God of all.

Immigration, Emigration, Assimilation

Immigration, Emigration, Assimilation
It is basic human instinct to emigrate from less desirable places for economic, religious or tribal reasons.
Immigration with Benign Assimilation creates a smoother transition for both the emigre and USA.
Filipino immigrants after 1965 demonstrated how to benignly assimilate.
Most professionals with their families, immediate relatives and extended families live near their work.
Most did not care who their neighbors are.
Most are too busy working 16 hrs, 6-7 days a week.
Most couldn't care less they are the source of the brain drain of the Philippines, who spent for their education and training.
Most spent whatever leisure days left, their vacation days exploring America's landscape and visiting other Filipinos in other states for the price of free board & lodging.

Investment & Speculation

Stock market...a competitive tool for prosperity
More Filipinos should learn, read, analyze and take risk in the stock market in order for Filipinos to invest and participate in the Philippine stock market.
Investment in human beings is the biggest speculation of the Philippine nation. The biggest mistake is equating human capital with formal education.
The best insurance in investing in human capital are marketable, economically meaningful skills, skills that create prosperity through creative, competitive, knowledge and insight.

Weak USD

US dollar's benign assimilation of other nation's currencies
Weakening the US dollar parallels the termination of Bretton Woods gold standard edit by President Nixon on August 15, 1971.
Horders of dollars, British & other governments or individuals, lose on deflation. US exports, US made raw materials and parts are cheaper in the Philippines.
Creditors, US government or individual Americans, lose on inflation..
In the long run, one nation, one individual self-interest for economic survival... Just a thought.
ate mely

An immigrant's reminder

An Immigrant's Reminder
"I gave you a land which you had not tilled and cities which you had not built, to dwell in; you have eaten of vineyards and olive groves which you did not plant." Joshua 24:13

I recently finish reading Victor Davis Hanson's book, Mexifornia and Basic Economics: a citizen’s guide to the economy by Thomas Sowell.
My vision is to merge Mr. Hanson's illegal immigration solutions and Mr. Sowell’s Adam Smith Milton Friedman inspired economic solutions to the nation of my birth - Philippines.
I fully agree ‘that the future of the nation is entirely in the hands of its current residents’. Mr. Sowell says human capital is the source of knowledge and insight.

My husband and I are one of ‘THE POOR OF THE WORLD’ who voted with our feet in 1969 in the Epilogue of Mexifornia. We never bothered to vote for the re-election of Ferdinand in 1969. When you’re just married, who cares if Marcos becomes a dictator. My first plane ride from Manila to Newark, NJ on TWA are my honeymoon memories.
My friend Che & I stayed in line at the US Embassy to apply for an immigrant visa. Most of my nursing colleagues were impatient for the 6-12 month wait (in1969), they applied as nursing exchange students in order to get a visa within a month. They illegally stayed after their contracts expired or until their employers convert their status to an immigrant visa. But, we are all immigrants and US citizens now, thirty something years past. Our children call themselves Americans, sometimes hyphenated to suit their self-interest. All independent and confidently self assured. All grown up and me left to pursue my own self-interest.