What does the report of 6% inflation rate really mean in the market place. Does it mean that the prime commodities rose by P6 on the average for a P100 good. May be.
But the reality that bites is that it is not. The price increases are much higher than that. Say galunggong from P70 to P140 per kg; gasoline from P20 when fare was P8 to more than P40 per liter now. Rice used to be P20 per kg to more than P40. Can the average consumer wage earner keep up.
No wonder talks are ripe for a round of wage increases after we just gave one. Hmmmp what happened to the theory that by increasing the threshold of income tax for wage earners, there will be more money to spend. Yes for the price increases due to excise taxes imposed on gas and others to recover the loss from
tax exemption. Mali ata....By being political ie favoring the wage earner by raising tax exemption level, you hurt them harder by excise tax.
Sen Bam was right in asking everyone to reconsider the TRAIN law. It is a mistake
There was so much flooding in Luzon over the weekend: Saturday and Sunday with floodwaters raging "lagpas tao" The strange thing was there was no typhoon. And the volume of rainfall was just 1/2 of Ondoy. in 2009(but that was for 4 days period 500 mm of rainfall) The rainfall last Saturday was 270 mm, half of the entire rainfall for August (500 mm). Falling in just one day. Much rainfall fell North of Manila, less on the south. There was one wedding at Hagonoy Bulacan. held in a flooded church.
Why again was there so much flooding? The flooding caused the evacuation of more than 20,000 because of the deep floodwater. Several died of drowning
1. Many of the areas have been rain soaked all ready because of previous deluge?
2. Too much silting in some rivers;
3. Garbage disposed off in rivers and waterways clogging the same. Hence the flood. How can we mitigate floods from too much rainfall in the future? Can we or we are just victims of nature
It took 12 for Korea to reach this level. It thus joins the elite group of countries: France, Italy, New Zealand, Israel, Japan. Those who are tried to catch up were Kuwait, Puerto Rico and Spain
South Korea was able to do this despite mountainous terrain, lack of natural resources, emergence from war with North Korea in the 1950s, political turmoil, and financial crisis of 1997. It was one of the poorest economy in the world in 1950s with its economy comparable to sub Saharan desert
We can only admire the tenacity and determination of Koreas who in the 1960s had only $79 GDP per capita. But they were laughing stock by neighboring countries when they boasted of being Number 1 in semicon fab. The Japanese jeered them: What? You cant even make a refrigerator. Five years ago they were number 1 at semi con fab.
Korea contributes 2% to world GDP, it is the 3rd largest in Asia, and 11th in the world
How about the Philippines. Our GDP is sub $3,000. (we are higher than India) and what can we offer as excuses (Take note our GDP growth has been very high vs Korea in the last five years)
There are many signs on the wall that signals rough sailing for the approval of charter change for Federalism
No less than the allies of the administration, Sen Lacson openly declared that the said idea is about to cremated. (He later said that it has become ashes)
The two top economic managers Sec. Dominguez and Pernia expressed concerns about the huge budget deficit that will be incurred resulting in down grade of PHL credit rating, causing increase in borrowing costs.
The surveys also show that many of those surveyed do not favor federalism.
Many are also critical of the contents of the proposed charter change, including the prohibition regarding its amendment (in case there was a mistake or a failure)
No doubt the administration will leave no stone unturned, expenditures will not be and issue and all means to get this thing pushed passed.
Another political experiment, where at the end of the day, the majority of people suffer and not thought of repairs are thought of as in the TRAIN law. The law which was purportedly to benefit many due to higher tax exemption, resulted in price increase (inflation) officially pegged at nearly 6% But in reality, prices of say rice, fish, and meat resulted in 100% price increase. Ano nangyari.?
This will call for wage increases which will result again in increase of prices. And the vicious spiral continue
With regards to excise tax on fuel (you only impose that on luxury and harmful substances right and fuel is a necessity) resulted in an environment of high fuel prices. And then subsidy is being made to jeepney drivers. What is the whole point? Sana wala nang excise tax sa fuel...
What has the leadership from imperial Mindanao wrought upon the Philippines?
Many difficulties and disappointment:
1. Rising prices (inflation) brought upon by TRAIN law;
2. Rift in and weakening of the ruling party that brought the top leadership to power
3. Emerging economic concern regarding the change in the form of government
1. Prices of some essential commodities and services shot up due to excise taxes on fuel and some consumer goods brought about unprecedented increase prices. While the makers of the TRAIN law assured every one that price increase would be minimal, it is not. When cost of transporting goods and people goes up, a lot of price goes up. So the BSP has to react further by raising interest rates to rein in inflation causing financing costs to go up further putting pressure to raise price of goods. After previous managers of past administration have tried to put the sound economic environment in place for growth, the same was put into
shambles.
2. Lately there has been a squabble in the leadership of legislative body; the head of Congress (who is from Mindanao was replaced by somebody from Luzon, a former President charged with numerous counts of plunder. (the freedom of whom was made possible by the support of the latter in the formers race to the top) The grip of the top guy on the govt may be weakening
While the change in the power of legislature has been alleged to be upon the instigation of the family member, in a smart move, probably to strengthen hold on power, a new party was made which drew a lot of applicants. Of late, there is perceived rift, and factions emerging in the ruling party that brought the current head of state to power
3. And lately no less than the most senior of the economic manager (from Mindanao even) has expressed concern about the fiscal provision of the proposed charter change (federalism) that it would cause huge
budget deficit and which will downgrade the Philippines credit rating thus again increasing cost of borrowing money from world capital market. The economic managers were reported to shut up but that does not hide the big problem later on.From PDI - Economic managers cite risk of charter change proposal
The drafters of charter change are now rebuking the DOF finance for speaking now vs the draft in Senate hearing... because allegedly, the latter was consulted on the draft before submitting the same to the President. Does it matter that as an after thought, the hard realities were recongized
Many of the populace are victims suckers to political experiments that were purported to bring more benefits to the people and lessen poverty as promised. But are these political changes really good for all? One wonders if indeed they are. If within the cabinet, there are very serious doubts, what will be consequence to the nation 5 or 10 years hence. A typical case of fire and then aim. Only leadership from Mindanao can do that....
