Breaking News: US dollar exchange rate is now 1 : 1 !! [Archive] - Glock Talk

PDA

View Full Version : Breaking News: US dollar exchange rate is now 1 : 1 !!


lazyjohn
07-23-2005, 11:10
1 USD = 1 kilo of hundred peso bills! ;z

bulm540
07-23-2005, 17:58
and what is your point???

riddler
07-23-2005, 20:39
I am not a mind reader but maybe what lazyjohn is trying to say is that with the never-ending and escalating political turmoil there in the Philippines, the economy is going downhill fast.

antediluvianist
07-23-2005, 21:52
Civil disasters and coups can be taken as opportunities to buy ALI (Ayala Land Inc. ) and other blue chips which have the strength to come back up. ALI was at P7.00 just two weeks ago. It's now back at P8.20. That's 17% profit in two weeks. (It takes a whole year to make just 8% in a certificate of deposit or T-bill.)

If there are riots tomorrow at the SONA, so what. Those disturbances might induce some short-term drops in blue-chips on Tuesday - the next trading day - and if so, I'll be buying.

Money is made in the stock market when there is volatility. Frankly, these riots are good for making money by buy-and-sell tactics in the stockmarket. The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

In the long run, the Philippines will not be as prosperous as, say, Malaysia or Singapore, but we are way better off than many other places in this world - a lot of countries in Eastern Europe, Latin America, Asia, and Africa, for instance. It's all relative. Anybody want to live in Serbia, Bulgaria, Bolivia, Bhutan, Nepal, Uganda ?

royal glockster
07-23-2005, 22:00
$1 = Pph 1, simply means 1 dollar = 100 pesos. With things going on right now, it is not a remote possibility. ;Q

lazyjohn
07-23-2005, 22:48
Originally posted by antediluvianist
In the long run, the Philippines will not be as prosperous as, say, Malaysia or Singapore, but we are way better off than many other places in this world - a lot of countries in Eastern Europe, Latin America, Asia, and Africa, for instance. It's all relative. Anybody want to live in Serbia, Bulgaria, Bolivia, Bhutan, Nepal, Uganda ? So are you saying that it's acceptable as long as other countries are worse off that the Philippines? WOW! No wonder! (BTW, my original post was meant to be a joke, but since you opened a can of worms, all is fair).

Allegra
07-23-2005, 23:25
Originally posted by antediluvianist
Civil disasters and coups can be taken as opportunities to buy ALI (Ayala Land Inc. ) and other blue chips which have the strength to come back up. ALI was at P7.00 just two weeks ago. It's now back at P8.20. That's 17% profit in two weeks. (It takes a whole year to make just 8% in a certificate of deposit or T-bill.)

If there are riots tomorrow at the SONA, so what. Those disturbances might induce some short-term drops in blue-chips on Tuesday - the next trading day - and if so, I'll be buying.

Money is made in the stock market when there is volatility. Frankly, these riots are good for making money by buy-and-sell tactics in the stockmarket. The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

In the long run, the Philippines will not be as prosperous as, say, Malaysia or Singapore, but we are way better off than many other places in this world - a lot of countries in Eastern Europe, Latin America, Asia, and Africa, for instance. It's all relative. Anybody want to live in Serbia, Bulgaria, Bolivia, Bhutan, Nepal, Uganda ?



Not to mention that it's a buyers market sa real estate
There are delicious bargains to be had dito sa CALABARZON area

Bolivia , Nepal...uyyy, those are mountain bike paradise
Bhutan is also beautiful daw if you can get in

Phantasm
07-24-2005, 00:03
Originally posted by lazyjohn
So are you saying that it's acceptable as long as other countries are worse off that the Philippines? WOW! No wonder! (BTW, my original post was meant to be a joke, but since you opened a can of worms, all is fair).

I do not know antediluvianist, but I think he's looking into the positive side of things in a world scale. We are indeed better off than the countries he mentioned.

antediluvianist
07-24-2005, 01:20
Originally posted by lazyjohn
So are you saying that it's acceptable as long as other countries are worse off that the Philippines? WOW! No wonder! (BTW, my original post was meant to be a joke, but since you opened a can of worms, all is fair).

You exaggerated in your first post, and you are exaggerating in this one too.

There are bad things in the Philippines that we should try to fix. Nowhere did I write that the situation is "acceptable". YOU introduced that word.

I pointed out that everything is relative, and the Philippines is not nearly as bad as many other places in this world. That does NOT mean that we should cease trying to improve things here, just as people in Uganda have to keep trying to improve things there.

mikol
07-24-2005, 01:39
Originally posted by antediluvianist
You exaggerated in your first post, and you are exaggerating in this one too.

There are bad things in the Philippines that we should try to fix. Nowhere did I write that the situation is "acceptable". YOU introduced that word.

I pointed out that everything is relative, and the Philippines is not nearly as bad as many other places in this world. That does NOT mean that we should cease trying to improve things here, just as people in Uganda have to keep trying to improve things there.
+1 :)

Allegra
07-24-2005, 03:57
I dont know about you guys pero .... matsalap pa rin dito sa pinas :)
I love it here

mikol
07-24-2005, 04:26
Originally posted by Allegra
I dont know about you guys pero .... matsalap pa rin dito sa pinas :)
I love it here
for me ok lang din naman kung dyan. kaso for the wife and maybe for the childrens future din siguro kaya nya na sabi sakin akin yun. mahirap maka pangasawa ng maganda tsaka matalino, mahirap tanggihan tska mahirap isahan. ;f ;) ;)

9MX
07-24-2005, 09:29
Originally posted by antediluvianist
Nowhere did I write that the situation is "acceptable". YOU introduced that word.


+1:)

batangueno
07-24-2005, 09:40
TROLL ALERT ^4

lazyjohn
07-24-2005, 09:48
Originally posted by batangueno
TROLL ALERT ^4 No, not trolling at all, got the joke from this board that is frequented by your fellow countypersons: http://members4.boardhost.com/kababayan/

lazyjohn
07-24-2005, 09:49
Originally posted by bulm540
and what is your point??? No point, it was a joke. Lighten up FRANCIS!

bagito
07-24-2005, 10:34
Originally posted by batangueno
TROLL ALERT ^4

glockcowboy????;z ;z ;z

9MX
07-24-2005, 11:22
eazzzy! chill bogs. :cool:

Mang Danny
07-24-2005, 12:33
I dont know about you guys pero .... matsalap pa rin dito sa pinas

Nakaka-homesick naman!;1
Sa 'Pinas masaya pero mahirap ang buhay (kayod marino).
Dito sa US malungkot pero tahimik ang buhay.

riddler
07-24-2005, 13:11
Originally posted by antediluvianist
Money is made in the stock market when there is volatility. Frankly, these riots are good for making money by buy-and-sell tactics in the stockmarket. The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

How many people are into the stockmarket in the Philippines?
How many workers have to pay more to get to their place of work or lose a day's earning?
How many tons of produce are made to rot because of inability to transport them to the market?
How many contractors are penalized with fines because of delay of project completion?
How many small businesses are agonizing over the lost day of revenue while rent still needs to be paid at the end of the month?
How much is it costing the factories there in terms of lost productivity?
How many people are employed by these so called "foreigners"?

I respect your sentiment but please do not forget that while riots, strikes and other civil disturbances are considered "opportunities" by people like you to make more money, it does the opposite to the bigger majority.

I have friends and a few relatives there who are literally losing jobs, homes, farms and even hope. All because of the actions, ambitions and greed of some people. Please don't herald your "opportunities" to make money during those times that they are suffering.

I am not insinuating that you are a callous person but merely pointing out that your theory of "relativity" is relative to what part of society you are in.

This post is not a flame, rather a view from a different perspective.

isuzu
07-24-2005, 13:26
Originally posted by antediluvianist
Money is made in the stock market when there is volatility. Frankly, these riots are good for making money by buy-and-sell tactics in the stockmarket. The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

A quick buck for the short-term, yes. But how about the image of our country in the international business community in the LONG TERM? Would you think the foreigners will still consider doing business in the Philippines with all these things happening? They'll just find another country where their investments will be safe. Just an example, take the case of FEDEX. They will start pulling out of Subic by the start of 2008. Instead of moving to Clark for a bigger space, they opted for a more stable place which is Guangzhou, China. I bet the bad political climate which has greatly affected our economy is one of their reasons for pulling out of the country.

If foreigners account for more than half of all trades in the Philippines, we better find a way to keep their businesses in the country and make our country attractive for them to invest. Losing them would just aggravate the situation. We should remember that a lot of big local businesses nowadays rely on foreign partners for their financial needs, and the foreign partners would also like their investments in the country grow and make money.

We can't just live alone by ourselves. We somehow have to do business with the outside world, whether we like it or not.~sd And if our peso has devalued a lot, we will have a hard time doing business outside, like importing materials for the manufacturing sector (and for us, buying new toys, and spares and accessories for them, too!). :)

I fully agree with Riddler's statement. While some sectors benefit from what's happening to the country, political instability is not helping our country as a whole. While I mostly think of my family's welfare, I also think of people in the farm, the farm workers in particular, who I grew up with, became my childhood playmates, and are still employed with us(after several generations!). Without them, my family wouldn't be where we are now. They are Filipinos, too.

isuzu
07-24-2005, 16:24
To my fellow BOGs, especially those who are out of the Philippines:

For those who haven't seen this yet. Makes you a little bit prouder
of the Philippines...
you have to turn on your speakers or put on your headphones.
www.tourism.gov.ph/media_source/byahetayo.wmv
http://www.tourism.gov.ph/media_source/byahetayo.wmv

asintaderoche
07-24-2005, 17:17
demmit!

v1ct0r
07-24-2005, 21:48
Originally posted by batangueno
TROLL ALERT ^4

+1 `l

Allegra
07-24-2005, 22:05
Dudes,
Antideluvianist posted those facts about the local stock market because the older members of BOGS ask him for stock market tips all the time.
He wasnt being callous
Anti is our resident financial guru
He posts those tips for the benefit of the BOG members who are investing in local stocks
Look it up in the older threads
Ok?

isuzu
07-24-2005, 22:58
Originally posted by Allegra
Dudes,
Antideluvianist posted those facts about the local stock market because the older members of BOGS ask him for stock market tips all the time.
He wasnt being callous
Anti is our resident financial guru
He posts those tips for the benefit of the BOG members who are investing in local stocks
Look it up in the older threads
Ok?

I would substitute the word "older" for "seasoned";+ That would sound better, don't you think? Have a good day!

riddler
07-24-2005, 23:06
Originally posted by Allegra
Dudes,
Antideluvianist posted those facts about the local stock market because the older members of BOGS ask him for stock market tips all the time.
He wasnt being callous
Anti is our resident financial guru
He posts those tips for the benefit of the BOG members who are investing in local stocks
Look it up in the older threads
Ok?

I know about Ante's knack for the stockmarket. In fact, I listen to his advise all the time. But when he stated,

The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

with that word, "Fine" at the end of such statement, one could not help but think that he is just concerned with making money while the rest of the nation is suffering.

I know he is not, but he sure sounds (or words his post) like he is !!!!

isuzu
07-24-2005, 23:11
Originally posted by riddler
I know about Ante's knack for the stockmarket. In fact, I listen to his advise all the time. But when he stated,

The foreigners - who account for more than half of all trades - panic and sell cheap after civil disturbances. Fine.

with that word, "Fine" at the end of such statement, one could not help but think that he is just concerned with making money while the rest of the nation is suffering.

I know he is not, but he sure sounds (or words his post) like he is !!!!

Self-incriminating word? Hmmmmm...:cool:

9MX
07-25-2005, 00:12
Originally posted by riddler
with that word, "Fine" at the end of such statement, one could not help but think that he is just concerned with making money while the rest of the nation is suffering.

I know he is not, but he sure sounds (or words his post) like he is !!!!

it didn't seem that way to me, but i respect your opinion

Allegra
07-25-2005, 00:37
Originally posted by isuzu
I would substitute the word "older" for "seasoned";+ That would sound better, don't you think? Have a good day!


Nope. I meant members who've been here at BOGs for awhile

bulm540
07-25-2005, 07:02
Originally posted by lazyjohn
1 USD = 1 kilo of hundred peso bills! ;z
Your scale needs calibrating.

riddler
07-25-2005, 16:45
Originally posted by 9MX
it didn't seem that way to me, but i respect your opinion

I don't give a hoot if you respect my opinion or not. I do however will appreciate impartiality and value honesty. ^<wg ^<wg

lazyjohn
07-25-2005, 19:10
Originally posted by bulm540
Your scale needs calibrating. It's the same make and model that is being used by your local merchants, that's probably why. ;z

mikol
07-25-2005, 23:39
Originally posted by lazyjohn
It's the same make and model that is being used by your local merchants, that's probably why. ;z
;P how did you get your hands on that scale dude? have you been a merchant in the P.I. before?

antediluvianist
07-26-2005, 03:57
Originally posted by isuzu
Self-incriminating word? Hmmmmm...:cool:

Weak hands panic, whether anybody wants them to or not. It is up to you as a trader to take advantage of it or not, but why not? You are not the one who is causing the riots, or civil disturbance, or whatever, and you are not the one who is panic-selling. By buying those shares which the weak hands sell in panic, you support prices on the Philippine stockmarket, and keep prices from diving further.

Traders do not cause the riots, nor do they force the weak hands to sell . There can be no sale unless both the buyer AND the seller want it. It's not just stock prices that tend to drop during civil crises, it's also the value of the currency . Those who have no confidence simply sell out. Those who buy take the risk that things might not in fact work out right, or might take a long time to, or might get worse. There is always that risk, but we who buy bet that the problem is just temporary. And that's how life is - some people sell out fast, and some people take the view that things will get better. Each side bets. Sometimes the sellers turn out to be right.

9MX
07-26-2005, 06:53
Originally posted by antediluvianist
Each side bets. Sometimes the sellers turn out to be right.

^6

isuzu
07-26-2005, 19:20
Originally posted by antediluvianist
Traders do not cause the riots, nor do they force the weak hands to sell . There can be no sale unless both the buyer AND the seller want it. It's not just stock prices that tend to drop during civil crises, it's also the value of the currency . Each side bets. Sometimes the sellers turn out to be right.

Yup, you're right! But wouldn't it be nice to have a country free of destablization plots, rallies, economic depression, etc., so that the so-called "weak hands" would still be doing business in our country? The foreigners doing business there would contribute stability in our country and give us a good image in the international business community. And of course, you could also profit from them doing business in the stock market. The more the merrier. ;) In that way, the peso would be more stable, and on the side, it would be a big advantage to us shooters. Imported guns, ammo, parts, etc. (we could also shoot more/peso) wouldn't hurt our pockets much.

BTW thanks for the insights. We're here to learn from each other!;Y

antediluvianist
07-26-2005, 19:24
Oh, yes, Isuzu, I certainly agree with you. The stockmarket - and all investors, domestic and foreign - hate instability and uncertainty. Stability would be best.

antediluvianist
07-26-2005, 19:30
My last column in a magazine for doctors :

The Noli Weekend That Wasn't

One step forward, two steps back. That's the Philippine economy.

Foreigners invested $3.14 billion into the Philippine stock and money
markets in the first five months of 2005. Philippine stocks went up by
10.95% in the January to May period, compared to just 6.12% in Singapore,
0.97% in Bangkok, 9.22% in Jakarta, and 4.58% in Kuala Lumpur. There were strong first quarter corporate earnings, and the Peso had
appreciated to P54.50 to the dollar by June 3, 2005. Interest rates had
fallen to more business-friendly levels ; for instance, the government's
91-day T-bill rate had fallen to 5.767% on May 30 from 7.87% on January 4.
The foreign view towards the Philippine economy had improved in the January
- May period, with ratings raised from the previous "Negative" to "Stable".

And then the Gloria tapes.

Within 2 days - June 6 and 7 - the Philippine stockmarket gave up most
of the increases it had made in the entire month of May. On June 7th, the
Lopez Group holding company Benpres closed down at P1.00 per share, Meralco
B closed at P23.25, First Philippine Holdings closed at P40, and ABS-CBN
closed at P10.50. Why look at these companies? Because they had one thing
in common - they were Lopez Group companies, as in Noli de Castro the
famous presenter of ABS-CBN, and Loren Legarda , likewise. I'm not saying
that either Noli or Loren are card-carrying members of the Lopez Group, but
in the eyes of many stockmarket investors, there is a link.

Then Friday, July 8, dawned. In the morning, ten of GMA's cabinet
ministers resigned - publicly, and on TV. Some investors thought that this
shocking event would make the stock market drop even further, and these
investors sold their shares. But the more experienced investors started
buying, as a matter of fact. What sense could there have been to buy under
these circumstances?

The reason was that there was a strong suspicion, subsequently
bolstered that same Friday by Senate Majority Leader Drilon's revoking his
support of GMA, and Cory Aquino's attempts to get GMA to resign, that the
crisis would soon be over. And that's the point : stock markets hate
uncertainty. In Finance, uncertainty equals risk. And risk and return go
together and move in the same direction. When there is more risk in an
investment, there has to be more return to compensate the investor for that
increased risk. And when there is less risk in an investment, the required
return is less.

Now the next step in logic is : what should happen to a stock's
price if the level of uncertainty is reduced, as the experienced investors
believed was happening that morning of July 8 when they saw Finance
Minister Purisima and others resigning on TV? ( The investors' expectation
was that these resignations would force GMA to resign, and that would end
the crisis and end the uncertainty.) Well, if uncertainty/risk are reduced,
then the necessary return will be reduced, since risk and return move in
the same direction.

Let's take a simplified example : if the expected earnings per share of
a stock is, say, P1.00, and the return of a stock under high
uncertainty/risk conditions should be 25%, then the stock should sell for
about P1.00/x = .25, or x = P4.00. Now what if uncertainty/risk are
reduced - as some investors thought when they saw ten cabinet ministers
resigning on the morning of July 8? Then the required return should drop
also, and let's assume a drop to 15% (from the high-uncertainty rate of
25%.) So, what should the new market price of the stock be? That would be
P1/x = 15%, or x= P6.67 . In other words, the market price went UP, when
the required rate of return went down (in turn because the level of
uncertainty went down.) So, that Friday morning, July 8, investors thought
to themselves : "Aha! GMA will have to resign, so the uncertainty will be
over, so stock prices will go UP."

And indeed they did. And which stocks in particular went up? Well, the
investors were thinking that when GMA resigned, that would leave...Noli.
And which stocks was Noli associated with? The Lopez Group stocks,
particularly ABS-CBN. In fact.... on that Friday morning July 8, in three
hours ABS-CBN stock went from P10.50 per share to p12.75; that was a profit
of 21.4% in three hours. Not bad when you consider it takes a whole year to
earn about 8% in the money market, or maybe 4% in a savings account. Other
Lopez group stocks did well too that day : Benpres went from P1.00 to
P1.10; Meralco B went from P23.25 to P24.75; and First Phil. Holdings went
from P40 to P43.50.

However, this bet on Noli and the end of uncertainty didn't turn
out for the investors as they expected. Former President Ramos and others
supported GMA that afternoon, and in any case GMA refused to resign - (my
personal opinion is that constitutional procedure should be followed, but
that's irrelevant to this stockmarket discussion) - so the following
Monday, July 11 : whoops, Noli was not, pala, the President, and there was
still plenty of uncertainty. So the price of Lopez Group stocks dropped,
and the whole stockmarket dropped : Benpres stock dropped from P1.10 to
P1.00, Meralco B from P24.75 to P23, ABS-CBN from P12.75 to P11.25 (not so
bad, Noli still had a chance, and even if not so did Loren), and First
Phil. Holdings dropped from P43.50 to P39.50. All of these were significant
losses in percentage terms.

So that was the Noli weekend that wasn't. And low prices will
continue to hound the Philippine stockmarket as long as the uncertainty
remains - it's a direct financial link, as the arithmetic above shows. It's
not just psychological. How depressing.

jasonub
07-26-2005, 21:15
ang galing mo ante!

Eye Cutter
07-26-2005, 23:09
is there a basis or a grain of truth to the conspiracy theory that the Philippines is deliberately being kept in the red to spur its biggest natural resource, OFW's? Which remits billions of dollars annually back into the economy and thus keeps us afloat?

darwin25
07-27-2005, 01:00
Originally posted by Eye Cutter
is there a basis or a grain of truth to the conspiracy theory that the Philippines is deliberately being kept in the red to spur its biggest natural resource, OFW's? Which remits billions of dollars annually back into the economy and thus keeps us afloat?

I guess so. That is why the economy is being kept as export oriented-import dependent. Keeping the economy this way prevents us from developing our our own basic industries. Without basic industries, we have to depend on foreign investment so we can provide jobs to our people which the government has to keep cheap in order to attract more. The irony is, we have the resources, the labor force, the talent to build and develop our basic industries but we do not have any.

I feel sad that most people think that the only way for our economy to move is to attract foreign investment. Few people realize that if we only have the BASIC INDUSTRIES to support our economy, we will not be totally dependent on foreign investments. But sadly we do not have them. What we call "industies" are actually just semi-processing or assembly for export or re-export of assembled components whose raw materials came from our country. We do not have manufacturing capability. We would always have to import our materials not because they are cheaper outside but because we dont have them.

There are people who believe that the economy has been revitalized during the time of Fidel V. Ramos. I dont blame them, the man is a master of deception. He was able to attract foreign investmnts because he was able to improve the credit rating of the country. HOW? He did it by privatizing almost all of our GOCCs. He created the illusion that we have now more capacity to pay the country's creditors. Clever huh?. But to what end? what do we have now. We now has almost no way to counter the rising prices of commodities because the very instruments that we use then has already been sold.
And now, ubos na ang mga pinagbentahan ng mga GOCCs natin, we are now left with nothing. Philippines 2000. PWEEEE

Doc EC you asked if this all a conspiracy? But it goes deeper. Its not just about keeping the economy down to produce more OFWs for their hard earned dollars, although it is certainly the policy now of the government to promote the export of labor. It boils down to policy. Whenever we borrow money from our creditors, there are lots of conditions that are being imposed on us by these creditors. For example, the government has to pass new taxes in order to raise revenues or pass a new economic program that will suit the need of foreign investors. In short, our creditors are imposing their will on us. And is there a way out? ASA PA TAYO. Yes I believe we are deliberately kept this way.

Anyway if we have basic industries, we will be able to build and strengthen our own manufacturing sector which is the main pillar of any economy, the capability to produce. We will be able to produce jobs for our countrymen, raise their salaries which will in turn strengthen their spending power which will in turn strengthen local manufacturing further. This is the reson why China is now a very strong economy. They have build and developed their own basic industries. There is no developed country in the world who doesn't haver their own basic industry. And those countries who are now rising are now developing their own. If the Philippines is to be strong economy, it wont happen why we still believe that attracting foreign investments is the only way for us to grow.

mikey177
07-27-2005, 01:30
Darwin's post reminds me of a discussion I had recently with my wife. She was asking me what I thought would be a good business to put up that would help many of our countrymen.

I suggested that we should go into the manufacture of medical equipment (catheters, IV lines and other sterile items). I noticed that she always had a hard time acquiring the subclavian catheters that her patients use during dialysis, since these are imported and its hard to find a source here in the province. I said that such a manufacturing plant would reduce our dependence on imported medical items, while providing employment to Filipinos and eventually contributing to the country's dollar earnings when the plant is ready to export.

She said we don't have either the capital or the expertise for such a large undertaking.

So unless we get a lot of Filipino venture capitalists to come together and finance the development of our own industries, it'll be an uphill battle before our country really takes off.

Eye Cutter
07-27-2005, 02:12
ano ba considered "basic" industries?

japan rose slowly out of its hell hole after WW2 by revitalizing its industry by copying a lot of products. in the 1960s and 1970s, taiwan was copying japanese technology and we considered "made in taiwan" as inferior. now both are economic giants.

china and india are also reverse engineering and manufacturing a lot or products but are being sold and used by us.

darwin25
07-27-2005, 02:47
Originally posted by Eye Cutter
ano ba considered "basic" industries?


Doc when we say basic industries, these are the industries that produces the main components or backbone of other manufacturing capabilities. There are others but most essential are the ff: Steel, mining, chemical, electronics, energy, heavy machinery.

We dont have our own steel industry, so we have to import them before we can construct roads and buildings and ships. Without steel, we cannot build our own heavy machineries.

Yes we have mining but these are largely owned by foreign companies. And these are geared for export, not for our own use.

Electronics? what we have are only semi-processsing and assembly.

Energy, undeveloped until now despite huge energy potential.

Heavy machinery. We import everything.

Originally posted by Eye Cutter
japan rose slowly out of its hell hole after WW2 by revitalizing its industry by copying a lot of products. in the 1960s and 1970s, taiwan was copying japanese technology and we considered "made in taiwan" as inferior. now both are economic giants.

china and india are also reverse engineering and manufacturing a lot or products but are being sold and used by us.

doc, all of those countries have developed their own basic industries. Although China, India and Taiwan are just copying products then, they have their own capbility to manufacture the most basic component they need.

antediluvianist
07-28-2005, 01:17
Mikey wrote : my wife suggested that we should go into the manufacture of medical equipment (catheters, IV lines and other sterile items). I noticed that she always had a hard time acquiring the subclavian catheters that her patients use during dialysis, since these are imported and its hard to find a source here in the province. I said that such a manufacturing plant would reduce our dependence on imported medical items, while providing employment to Filipinos and eventually contributing to the country's dollar earnings when the plant is ready to export.

She said we don't have either the capital or the expertise for such a large undertaking.

So unless we get a lot of Filipino venture capitalists to come together and finance the development of our own industries, it'll be an uphill battle before our country really takes off."

I'm in healthcare, and well, we don't have a big enough market for those syringes and catheters and all those other medical consumables. It looks like China and India just can't be beat for that sort of thing - they produce them by the millions of units.

Seems to me we just have competitive advantage in services (call centers, doctors, nurses, masseuses, accountants, teachers, etc.) , and tourism (those millions of getting-richer-fast Chinese are already going abroad a lot and some have been coming to Boracay etc. ) , and mining. Three things. Agriculture, absolutely not. Manufacturing, no. Could be worse.

mikey177
07-28-2005, 05:04
Originally posted by darwin25
Doc when we say basic industries, these are the industries that produces the main components or backbone of other manufacturing capabilities. There are others but most essential are the ff: Steel, mining, chemical, electronics, energy, heavy machinery.


Okay, so our basic industries have not been developed to reach their optimum potential. Why is this so? Why aren't Filipino investors going into these industries when they know that doing so would help our country to achieve that much ballyhooed takeoff?

Is it because there is too much government interference with private enterprise? Is it because we lack the technical expertise to pursue these production lines? Is it because countless skilled and talented Filipino workers have left for first-world countries? Is it because investors are afraid of the insurgency in the countryside, afraid that their factories will just get blown up like that cement factory in Bulacan that failed to pay revolutionary taxes? And after we have identified the causes, what can we (as private citizens and entrepreneurs) do about these hindrances to progress?


Originally posted by antediluvianist
I'm in healthcare, and well, we don't have a big enough market for those syringes and catheters and all those other medical consumables. It looks like China and India just can't be beat for that sort of thing - they produce them by the millions of units.


You're probably right about that, ante. But I also believe that there are many more sick people who don't avail of health care because they simply can't afford it. My wife often wishes that the Philippines had a well-established and self-sufficient health insurance system like that of the US, so that lack of money would no longer be a reason for Filipinos to just roll over and die. Of course, without hefty taxes you can't achieve that, and if people don't have jobs in the first place, the government is going to be hard-pressed to collect more taxes. Vicious cycle, huh? :(

I think I'm going to visit the "light banter" thread for a while, I need something to cheer me up... or maybe I should check the "Personal Advice" thread instead :)

isuzu
07-28-2005, 19:13
Originally posted by Eye Cutter
is there a basis or a grain of truth to the conspiracy theory that the Philippines is deliberately being kept in the red to spur its biggest natural resource, OFW's? Which remits billions of dollars annually back into the economy and thus keeps us afloat?

I think the government would not like to let go of the country's intellect, experienced professionals and experienced manpower go to other countries. Our economic growth's advantages far outweigh the money that is being remitted into the country. It's the foreign countries who welcomed them who are reaping the benefits of their expertise.

These people are really a great loss to our country. Imagine if they were here, r & d, manufacturing and high quality services (that includes the very good doctors, nurses and therapists) will be right here in the Philippines. We won't be import-dependent then, and even foreigners will come to our country to seek medical attention. If our economy is so strong, and our products as in such high demand abroad, we could afford to devalue our currency to make them competitive in the international market.

Take the case of China. People study and gain experience abroad, but come back to China because they will be badly needed by the economy, and they will be paid a premium salary. My friend works in China right now and is being paid well. She was hired because she knows how to speak both Chinese and English. She deals with foreign customers of the business. Her biggest concern is that in a few years, Chinese nationals who studied abroad and have become fluent in English will start coming back to China. She said her Chinese employer would surely prefer the Chinese nationals instead of her.