.weird situation..

[kolz]

---

Just an example lang to get the other side of the story...

If the dollar exchange rate fluctuates too sudden ... here's a scenario...

Pedro is a businessman, he owns a manufacturing company who manufactures processed products from raw materials bought oversees, he then sells these materials to the local market and some products also for export to other countries. The time it takes from these raw materials to be processed into a final product requires 8 weeks to process (2 months), since the raw materials from abroad is seasonal, Pedro ensures that to keep the production going, he has to stock up about 4 months worth of raw materials so that production will not choke up. This also means that the finished product he sells now is from the raw materials bought 2-4 months ago...

Now imagine if Perdo bought his raw materials four months ago at PHP 51.00 exchange rate, would he sell his finished product now at a much lesser price at PHP 48.00?

The answer is NO! ... it would take another 4 months of production from an imported raw material purchased at PHP 48.00 to be able to finally effect the cost of the finished product...

What I'm saying is that there are products which are not so easy to adjust prices ...

[budmendz]

Just an example lang to get the other side of the story...

If the dollar exchange rate fluctuates too sudden ... here's a scenario...


What I'm saying is that there are products which are not so easy to adjust prices ...

That's why business in the Philippines has the so called "staircase effect". Two steps up, one step down. If you look it closely, there's no chance for the common man to recover the original scenario when things revert back to where it was before. Instead of the same "two steps down" to make it fair, the businessmen suddenly are imagining reasons like no, we are having expansions now and we just cannot go back to where it was before -let the market forces decide.

In fairness to SM and Ayala who are having their expansions now in full swing, it is good in aesthetics -you view it and it's nice and beautiful. Will they become losers if the purchasing power of the common man is nil? the answer is a big NO. In fact they will gain more as tenants come and go. Some will make money some will lose. Pero permanente ang ila. Ang mga mayokmok o gagmayng businessmen maoy mahimasangan kung dili na mopalit ang mga tawo kay pwerti na gyung mahala sa palaliton. Pero Ayala ug SM ? Permanente ang ilang genansya and so with the expansions.

[kolz]

That's why business in the Philippines has the so called "staircase effect". Two steps up, one step down. If you look it closely, there's no chance for the common man to recover the original scenario when things revert back to where it was before. Instead of the same "two steps down" to make it fair, the businessmen suddenly are imagining reasons like no, we are having expansions now and we just cannot go back to where it was before -let the market forces decide.

In fairness to SM and Ayala who are having their expansions now in full swing, it is good in aesthetics -you view it and it's nice and beautiful. Will they become losers if the purchasing power of the common man is nil? the answer is a big NO. In fact they will gain more as tenants come and go. Some will make money some will lose. Pero permanente ang ila. Ang mga mayokmok o gagmayng businessmen maoy mahimasangan kung dili na mopalit ang mga tawo kay pwerti na gyung mahala sa palaliton. Pero Ayala ug SM ? Permanente ang ilang genansya and so with the expansions.

And this is exactly why the government needs to keep inflation as its lowest ... you're right, the prices of everyday commodities will not always go back to their previous level, the only countermeasure to increase the purchasing power of everyday consumers is the increase in wages, and the generation of more jobs.

Take for example a product like Tide, did it ever went back to its original price? Given now that we have a PHP 48.00 to a dollar, instead of lowering prices, they instead added more to the product, like a 20% increase in the weight, more grams ... more value for the money. I just hope businessman will go this route ...

Even if the prices of everyday commodities will not go down, I just hope that the countereffect would be more value to the Peso. If the government can minimize inflation, the effects of the Peso's strengthening will be felt sooner.

[junmar4]

bisan unsaon pa pagnaug sa dollar, bolada ra jud na sa gobyerno tanan. dili na mafeel sa yanong Pilipino.

[budmendz]

bisan unsaon pa pagnaug sa dollar, bolada ra jud na sa gobyerno tanan. dili na mafeel sa yanong Pilipino.

Dili gyud bai kay duna tay mga kaigsoonan nga Pilipino nga pareho nimo. You cannot even appreciate the efforts a government severely criticized to arrest the runaway freefall of the exchange rate of the Peso to the dollar that started during the time of Erap. Ang gusto nimo nga mahitabo nga morag instant coffee, instant noodles ang effect. Dihadiha makita dayon ang benefits. Dunay daghang rason nga bisan ikaw nakakita but you chose to be blind. Lisod ang mga tawo nga nakakita pero magpa buta buta or nakadungog pero magpa bungol bungol just because of their personal biases. Had the Peso reached 100 to the dollar and the government didn't do anything, unsa na kaha imong masulti dire no aron mag rebolusyon ang mga tawo. Ingon ana man mong mga militante you always start the fire bisan aso pa lang. Inyong sugnuron ug maayo aron modilaab. Karon nga ang peso ni appreciate against the dollar, wa gihapon moy masulti nga nindot. Maayo pa bai manglangyaw mo ug panglayas mo sa Pilipinas kamo tanang mga sabaan kay kamoy nagdala ug dimalas ining nasura.

[junmar4]

so personalan imoha? sige ha...

Mao ba? Mao diay bisan gamay ra saka value sa dollar, dali mosaka ang panaliton. Pero ug monaug, wala ra. Try to site daw specific example sa kaayohan sa pagnaug sa value sa dollar nga natagamtaman sa yanong Pilipino.

[dagget]

to experience the effect of the stronger peso.

Go to the duty free store (mactan or waterfront lahug) and bring your calculator

its really cheap there....

[junmar4]

maayo lagi unta kung tanan tawo pareho sa uban diha nga datu nga makaaford pirme ug adto sa duty free kay daghan ug kwarta.

[slakker]

greed ra gyud na...

[FK]

mao ng dili au ko malipay kng mo ubos ang dollar... kay mura ra og wala'y epekto.