Thursday, August 31, 2006

Peso at 50 level

I posted this question on Philippines events
'What did you do to strengthen the peso? Tell your story.'
Here's some of the response:
I bought some like I do every month.

I replied:
Absolutely! As more people, Filipinos or otherwise buy pesos, the price of pesos gets better! Just like a stock price.
I sent and remit up to 90% of my income to the Philippines. I don't bring products from here when I go for vacation and I told my friends to do the same. I bring and introduce our products to Malaysia and Saudi Arabia. I promote tourism of our country and has even made one presentation here in my company about the Philippines. Things like these, that I can do by being an OFW.

My reply:
90%! Wow! that's a lot! Commendable stuff you're doing to strengthen the peso. However, the primary purpose must be what is best for you as an individual. Doing what's best for you, will benefit your family and indirectly the nation as a whole. Too much remittance money coming in the Philippines without the equivalent increase in available goods and services is inflationary. If you are sending that much money in the Philippines, make sure it is to produce goods or services, not just to consume or buy goods and services. Inflationary means on the next buying cycle of your remittance money for goods and services, the price for those goods and services will be more than the acceptable level of below 10% because a lot more people has money than the available goods and services.
You're right. Not all this 90% is being spent. How can a man spend this much of his income for necessities though? Only 12 percent is being spent for daily necessities while the rest is being infused to my small family business and real estate investments.

Snotty Someone ask...
What did you do Ate Mely? Nagbakasyon ka na ba sa Pilipinas? Bumibili ka ba ng mga Pinoy products na nasa US? Nanghihikayat ka ba sa mga kasamahan mo sa trabaho na maging turista sa Pilipinas? To all Filipinos living abroad, we can do alot for the Philippines by promoting our country as one of the most beautiful tourist destination in the world. Share pictures of beautiful places of the Philippines to your friends, officemates,or relatives. Share your stories and experiences of the beautiful tourist spots of the Philippines. Iyon mga hindi pa nauwi for 5 years, aba eh its time to visit the Philippines na po. Enjoy na kayo sa bakasyon, makaktulong pa kayo sa ekonomiya ng pilipinas. Tayo na kabayan, balikan natin ang matatamis na mangga, lanzones, kaimito, buko at ibpa. Mga kamag-anak at kaibigan na matagal ng di nakita. Makipagpuyatan tayo sa mga gimikan sa mga siyudad. Manguna sa mga banyagang turista sa pagpunta sa magagandang tanawin at pasyalan. Panahon na para magbakasyon sa Pilipinas!!

The following post became heated a little bit.
I am a recent convert, practicing capitalist! I own a business involving pesos. I am minority partner in a corporation in Manila which took almost a year to set up. I have dual citizenship to facilitate corporation application but did not really facilitate. Strong, weak, up or down of peso price does not affect my business.
Researching for my business mission statement, I stumbled into economic theories of Adam Smith, Hayek and Milton Friedman.
More Filipinos must be capitalist. Friedman wrote in 'Free to Choose' that in capitalism true economic freedom are achieve because of voluntary exchange between individuals guided by price, labor and profit only. Economic freedom is necessary for political freedom. Filipinos rally in the streets because they don't have political freedom. We have freedom of speech. Our political freedom is limited if our economic freedom is limited. To acquire economic freedom, more than a few Filipinos must use capitalism as an economic model. To be a capitalist, we must compete with other individual real or pseudo capitalist.
more coming...

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