PHL govt, firms prepay $3.57B in foreign debt

[RMK711]

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I'm not trying to spread misinformation actually, but a friendly warning lang.... US is printing way too much money, and that's a reason why the value of their money is going down.... my cousin whose husband is working in the government also shared my view on why US economy is not doing good... It is true, big debts are insignificant when it is way below the country's GDP... However, US borrowing is far beyond GDP... US can never repay its debts, amounting to more than 50T$ within 2-3 years from now.... Some analysts said that even if they tax each citizen 100% of their income, they still be far from paying their debts.... anyway, you don't have to take my word for it... but things are greatly inflating there in US...

I'm not going to take your word for it, nor the anectodal evidence of your cousin because there is no statistical evidence that "things are greatly inflating" in the U.S. Printing money alone is not solely responsible for inflation... They are printing money because the U.S. is on the verge of the opposite: deflation. House prices crashing, for example, is deflationary.

[leonell]

ot: changing peso to dollars? i think you should change that to other currencies or gold.... the dollar is a dying currency.... i think they were talking about changing back to the gold standard and abandon the dollar...i dunno if its really true, but technically, US is bankrupt, spending money they don' have... when the dust settles a couple of years from now, its not far fetch for US to be a third world country... or to regress significantly....

I agree with this one. The Fed has been printing too much dollars to pump prime an economy that still contracts behind all efforts by the government to flood it with money.

The Philippine Peso is one of the best currencies you can hold on to. America is still in the brink of a double-dip recession or simply a part II of it's 2008 crisis. The currencies of emerging markets like the Baht, PHP or Rupee are much more attractive to foreign buyers because of the very healthy economic conditions experienced by these countries despite the ordeal of the greenback, Mas nindot just kung paluyuhan nato atong kauglaingong kwarta kay in the end kita ra gihapon ang mubenefit ana.

[RMK711]

^ The U.S. economy is no longer contracting. Where do you get your information from? If the U.S. economy goes into a double dip recession which countries do you think will be most affected by this? If you think our economy isn't going to take a huge beating, you should really think about it. We are largely dependent on the following: Remittances, BPO (serving Americans) and tourism (mostly South Koreans, who are also dependent on the U.S. economy and American tourists).

History has shown that whenever the Peso has strengthened a lot, it is almost certainly on the verge of collapsing in value. Our peso is being bid up to high levels by the influx of "hot money" these are investments that are not permanent in nature and can be withdrawn by the foreign investors any time they think they have made enough money. Whenever something becomes more valuable, it becomes a much riskier investment. I would rather put money in a currency that is being bid low by pessimists than a currency that is being bid to a value that does not merit it. What has changed in Philippine governance and economic conditions warrants this sudden renewed faith in the Peso? It's still one of the most corrupt countries in the world, with the poorest investment in infrastructure and lack of investment in education, etc. The peso is not going to stay at this value for long, mark my words...

[emow]

I agree with this one. The Fed has been printing too much dollars to pump prime an economy that still contracts behind all efforts by the government to flood it with money.

The Philippine Peso is one of the best currencies you can hold on to. America is still in the brink of a double-dip recession or simply a part II of it's 2008 crisis. The currencies of emerging markets like the Baht, PHP or Rupee are much more attractive to foreign buyers because of the very healthy economic conditions experienced by these countries despite the ordeal of the greenback, Mas nindot just kung paluyuhan nato atong kauglaingong kwarta kay in the end kita ra gihapon ang mubenefit ana.

Mao gyud bai, it seems the shift of the world economy is gearing towards asia... though its mostly because of China, nonetheless, we are still slightly benefiting... Its really sad for US actually.... hope they don't end up like zimababwe... US has been through a lot of crisis in the past, and rebounded (after every war) but the value of their currency is losing its position in the world economy.... many countries were reevaluating whether to continue to peg their currency with the US dollar or not...thats a significant sign of losing confidence...

[RMK711]

Mao gyud bai, it seems the shift of the world economy is gearing towards asia... though its mostly because of China, nonetheless, we are still slightly benefiting... Its really sad for US actually.... hope they don't end up like zimababwe... US has been through a lot of crisis in the past, and rebounded (after every war) but the value of their currency is losing its position in the world economy.... many countries were reevaluating whether to continue to peg their currency with the US dollar or not...thats a significant sign of losing confidence...

Yea that's why China continues to insist on pegging the Yuan to the USD because they are really losing confidence in the USD! If the US collapses, we're going down with them. China too. At least China understand this.

[IMG]http://1.bp.blogspot.com/_wAxDMfEGhoY/TJf0-DHPwVI/AAAAAAAAATk/iV1ugK9uHeQ*******Not+Sure+if+serious.jpg[/IMG]

[emow]

Yea that's why China continues to insist on pegging the Yuan to the USD because they are really losing confidence in the USD! If the US collapses, we're going down with them. China too. At least China understand this.

this is way too OT already...anyway, US-CHINA has a unique relationship as their economies are more intertwined than the rest of the world... China's foreign exchange policy is not a market-based approach. Its government is closely controlling the amount of US dollars it has to maintain a superior advantage in exports, where a very large chunk of their GDP comes from... Even though China's economy is greatly dependent on US, there were many periods of time when China has pegged off from the US dollar...only to return once again probably after US economic rebound... the point is, that period of reconsideration and not necessarily the act of pegging off the dollar gives a reasonable signal of the downdraft of confidence the US dollar once enjoyed 3 decades ago... If ever US collapses, it will have a ripple effect like what id did to EU countries and other Asian countries but i doubt we're going down with them...US will be replaced by a new superpower...you don't have to believe my post...it's just my perception... I really appreciate your civilized replies with no air of arrogance whatsoever...

[silent-kill]

Sheesh, please don't spread such misinformation. The size of the debt is not the issue, but the capacity to repay and the U.S. being a very rich country with massive technological and human capital is more than capable to repay a debt of that size. Just a few years of belt-tightening (which they are already doing) will put them back on the right track. It's similar to a very rich man being burdened by heavy debts to his business being in a better position than a squatter being in heavy debts because he wanted to buy lechon for Christmas. The businessman is better off because he has the assets to repay the debt.

it may take them awhile if they don't generate local jobs, we all have to thank outsourcing it will redistribute the wealth around the globe

[silent-kill]

calma lang mo guys either way the US(corporations) cannot leave us just like that nor can they leave China or India its because we are so cheap, we are like a drug to them. they can't afford to do business in their own lands because of taxes and and operational cost that's why they are moving towards Asia lol

[yacky2006]

talented gyud ang pinoy kamao gyud mo diskarte.
bisan dako na kaayo ang utang pa utangon lang gihapon.

[leonell]

^ The U.S. economy is no longer contracting. Where do you get your information from? If the U.S. economy goes into a double dip recession which countries do you think will be most affected by this? If you think our economy isn't going to take a huge beating, you should really think about it. We are largely dependent on the following: Remittances, BPO (serving Americans) and tourism (mostly South Koreans, who are also dependent on the U.S. economy and American tourists).

History has shown that whenever the Peso has strengthened a lot, it is almost certainly on the verge of collapsing in value. Our peso is being bid up to high levels by the influx of "hot money" these are investments that are not permanent in nature and can be withdrawn by the foreign investors any time they think they have made enough money. Whenever something becomes more valuable, it becomes a much riskier investment. I would rather put money in a currency that is being bid low by pessimists than a currency that is being bid to a value that does not merit it. What has changed in Philippine governance and economic conditions warrants this sudden renewed faith in the Peso? It's still one of the most corrupt countries in the world, with the poorest investment in infrastructure and lack of investment in education, etc. The peso is not going to stay at this value for long, mark my words...

Let's just be optimistic of our own country. Who would want the Philippines to go down if there are still people hungry for change? I guess the country has taken enough beating but now it's ready to stand on it's own. We are now much less dependent upon the U.S than we were before. This decade will be marked by a currency war and a trade war. The U.S has falling stocks and never stops printing money that kills the value of the Dollar. If the Peso will rise this year, it will be enough to counter high inflation brought about by higher growth.

The most important thing is that we are on much a better shape now than Europe and the rest of the West including America. Let's trust our government because they are doing their best.