STRENGTHENING CURRENCY - WEAKENING ECONOMY

Okay, I may not be an economist to give a detailed analysis about the country's economy, but I am a FIlipino, a consumer, who directly feels the economic situation and I have common sense, enough to make my perspective on the real score of the Philippine Economy stand.

Lately, I have been hearing news that the Philippine Peso had increased in value and strengthened against the US Dollars (or other foreign currencies) and according to the president it is just an evidence of a strengthening economy. But is this really good news and an indication of a better economy?

Surely it is good news for the politicians, since they can foolishly brag on how great they handled the country deceiving millions of people as a result, but it is actually bad news in disguise. Also it is not an indication of a strengthening economy, rather we should be worried if this trend continues. It is worrisome the fact that the purchasing power of the Philippine Peso still remains weak and prices are soaring high despite its strengthening status in terms of exchange rate, creating an imbalance. A lot of industries and individuals will surely be affected with this like the OFWs, exporters, and other businesses that are dependent on foreign currencies like call centers. The situation is a cancer in the economy.

In order to make my point clear, let's consider this case. Let us say before the exchange rate between US$ to PhP is 1:48 and with it an individual can buy 2 kilos of rice (considering that the rate is 24 per kilo). Presently in the economy with the "strengthened peso" let us assume that the exchange rate between US$ to PhP is 1:42 but since the latter still has the same purchasing power or worse if the prices soared up, it is not enough anymore to buy the 2 kilos of rice.

If this will continue it will surely lead to currency collapse. The real strength of an economy is not measured in the currency's value against other foreign currency, rather it is measured on the amount of commodities that a currency can buy; on its purchasing power.

POVERTY - A CHOICE

Poverty is not a new thing in the Philippines. From the quiet municipaties to the busiest metropolis it is present. Beggars, slum areas, loan sharks (a.k.a 5-6), and pricey junks (a.k.a ukay-ukay, car and appliance "surpluses") are just some of the evidences of poverty.

Since time in memorial, poverty has already been a problem in the country. It is really puzzling why until now, despite of the modernity of the world and the existence of fields of studies dedicated in financial management like Economics, the situation is not getting any better, instead it is worsening.

Now comes a question: who should be blamed for it? If the people will answer majority will say the government and the politicians. Yes, somehow they contribute to the problem considering the fact that the Philippine Government is one of the most corrupt in the world, but is the government and the politicians the main culprit? The answer is no.

Who then is the real culprit? The answer is nonetheless but the people themselves and that is the shocking and painful reality. It is really surprising to see that a lot are wearing the more than P500 slippers that they call as "flip-flops" despite of the bad economy. It is amusing to know that ordinary employees save their meager salaries, not for the purpose of investing it, but for buying high-end gadgets and branded clothings; it is not even purchased for it's functionality, but for the purpose of making a statement. It is interesting to find out how the people can afford to waste time, the most precious commodity, by delaying work for leisure and by practicing the "mamaya na" philosophy; it is such an unforgivable luxury. It is so ironic to hear how the squatters complain that they don't have food to serve on their table to feed themselves and their children but can afford to light up cigarettes, drink liquors, place bets for sabung and tong-its, and practice the most expensive leisure: baby making. And lastly it is funny how the masses complain on how difficult and miserable their lives are and on how cruel and greedy the government is but does not have the initiative to help themselves and improve their lives and is still waiting for the government to liberate them from poverty with just one flick.

A TV reporter once said "tila umaasa na lang po ang mga Pilipino sa milagro dahil sa hirap ng buhay," but a better statement is " dahil palagi na lang umaasa ang Pilipino sa milagro kaya tayo lalong nalulugmok sa kahirapan." There are no such things as victims of poverty, because after all it is a choice.