Historic wage increase of P85.00 or 12% can hurt the BSP efforts to control inflation

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DOLE secretary  Tolentino announced an P85.00 salary increase for MM, or a historic 12.22%  (P85/695).  The BSP head is worried about its impact on inflation that it is trying very hard to control (now currently at 7%).    A certain employers sector is worried too about the accompanying productivity that the said increase would produce.   Without an accompanying productivity its bound to produce additional woes to all ready bad situation:     inability to meet GDP growth target, loss of jobs (23%),

rising prices (expect more of that), downgrading of PHL by Fitch.

Before our concern was providing jobs but wages that are in the near P20k will be difficult to sustain.  Employers will cut back and resort to mechanization and automation  Surely, AI is here to assist in this difficult situation.   Employers can manage, but what about the workers.  Every solution produces its own problems (11 laws of systems principles) and this post expects this to be managed well. 

Will demonetization of P500 and P1000 bills deter the plunder of Philippine Treasury by the flood control tibs?

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                                                        Classmate  several decades ago

Some proposals are being forwarded so as to nullify the hoard of cash that were delivered allegedly to house so top govt officials.    It would be costly to CB (and also erase their income.  CB makes a lot on bills printing) and bad for the majority of Filipinos and limited withdrawals instead. 

But how would the crooks hide the money.  They need to transfer them abroad and launder them and they will ge caught.  It will be caught by local banks if deposited locally.  There has to be other way of laundering this.   (Hmmm so that is why many are looking for business plans for of acquaintances)

Some quarters are saying the good Governor is in cahoots now with the govt that appointed him. 

From Tribune - demonitization proposal for P500 and P1,000 bill 

Are the budget keepers, the financial wizards in the govt, the chief and his cabinet, leading us into financial blackhole where there is no escape?

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                                                        Mural of the ideal leaders

                                                               Zaldy Co now in hiding

                                            BSP sold 25 tons of gold one of the largest sale

                                             Most Central Banks are now hoarding gold

                                  Usec Cabral of DPWH, first lady top exec at DPWH a Doctorate grad

                                      Chairperson of Commitee on Appropiations Mikaela Suansing

                                                     a Harvard grad  top Congress dog on budgetting

Of late, this post is worried about the following confirmed news:   1.  ballooning country's debt rising into  unprecedented  amount and breaching the safe debt to GDP ratio (rising spectacularly even in 2025 only

2.  Wholesale plunder in the flood control anomaly amounting to billions (supported by stories from cohorts and even drivers and transporters of the cash hoard.)

What is heartbreaking is that this was alleged to be perpetrated by the best minds of the country (one  of whom graduated from Ivy League School in USA with masters)?  I even have a classmate (maybe he could not say no to offend the Chief) who could be a party to the sale of the country;s gold

If only the trillions borrowed were used in financing key industries that would propel the country's jump into middle income status? Or saving more PHP in govt operations.  If only  processsess were automated to blunt corruption.    If only we invested in more gold and US treasuries or engaged in Yen Carry trade;   if only we had hedged the funds?

But no they were used to finance ghost projects (never was built or existed) half completed projects  or projects that failed (multi million bridge that collapsed) on mere two "overloaded trucks passsing"  We poured money into blackholes, abyss!!

Just to think that trillions were financed by:    1.  selling the country's gold when gold was still in the low $2,000,  2.  shifting funds from Philhealth   PDIC and other GOCC. 3.  Massive/trillion of debt in a matter of year - both from foreign and domestic lenders.    We are hocked for over P100,000++ and our children.   Will the pludnerers worry how we can pay this massive debt from whence the loot came from?

We should be more careful in placing relatives of crooks to be our leaders and caretakers

  Who engineered thus scheme that in the corporate world would be termed as malversation (even at the middle level of govt under COA rules)?   and merit outright dismissal/termination?  Are they not even getting a whack on the head?  But they are still here and even promoted!!!!??

Will the govt officials who ordered and facilitated the transfer of Philhealth PDIC (sale of BSP gold) to be part of UA be held accountable?

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Will they be charged?   Will they be held accountable?

Philhealth and PDIC are private funds being administered by the govt and should not have been played around with by people who thought (as more govt officials do)  they own the government

Or candidates or current officials must undergo drug test.   Drug dependents may not know what they are doing or have a sense of accountability

Taliano gold - maraming nakuhang boto ito noon 2022 Presidential election, baka sakali maging effective ulit?

It is more fun criticizing Maraming nakuhang boto ang mga naniwala sa kuwentong ito. Hindi naman totoo. Nagbenta pa nga BSP ng ginto.

Kawaawa mga Pinoy, biktima ng mga scammer sa social media, mula sa kapitbahay at sa mga namumuno ng bayan    Tama na   

An netizen hoodwinked the rest of us that a mall refused a folded polymer P1,000 bill

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Many were led to believe that such story was correct ie that folded P1,000 bills not accepted as legal

tender when it is folded   Reylen Lopez

The mall and BSP both belied such report.

Can higher interest BSP lending rates arrest inflation

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This post watched the interview at PTV with Managing Director Toni Lambino Managing Director  of BSP for strategic communication.  Topics discussed were the interest rate increased and the new polymer 1,000 peso bill.

Really will the rising prices be solved by the interest rate increase?  Well may be partially.  The interest rate increase will slow down the money supply growth and or siphon off exces liquidity in the system.  Well this will work to curb large ticket items purchases, cap ex, and speculation on foreign currency,   This will not do much about

   1.   Expensive petroleum products from the middle east of US supplier

   2.   Supply pressure due to high fuel costs, supply chain problems

   3.   Low productivity

   4.  High input costs for say agriculture products

   5.  Commuting costs.

It safe to say that the increase of interest rate MAY help arrest increase of prices.   

This is really a big problem for consumer confronted by high commuting cost, price of basic commodities

food and agri products.  

They say that petroleum products decreased in prices because of higher interest rate by US Fed.  It may work well for macro in US whose goal is to come up with financial products to soak up US dollars elsewhere floating in the world  If that was not to happy, US can become a center of hyper infflation