Originally Posted by
chris_bern
@emow
do u really think that US politics issues could affect the lives of every filipinos living here in the philippines? When Obama won the US presidency what did our country get at all?
I was mentioning Ron Paul for example purposes only... but to answer the connection...
1. The OFW connection - any economic crisis that affects the US, remittances are affected. And remittances are a great part of our GDP, especially coming from US.
2. The US dollar is the international reserve, per Bretton Woods Agreement, thereby subjecting all fiat currencies to the stability of the US dollar. It is no longer backed by gold since 1971, and the dollar value is only subjected to the perception by others of its possible value. This is a long debatable issue that concerns the economic stability of the world financial institutions.
3. When Lehman Brothers went bankrupt, Dubai almost went under the red. A perfect example of a domino effect. The crisis of US has spread to the EU. But unlike the EU, the US has the sole authority to print money without anything backing its value.
4. Any example set by the legislators of the US, the rest of the world are watching. The Philippines have a close affinity into duplicating the programs of the US, making it their blue print in implementing laws and projects.
5. The price of oil is dependent on the value of the dollar. No matter how much we chant the government to do something about the price of oil, it is powerless and only strive to make it appear it is doing something to appease the people. In reality, the legislations of the US affect the value of the dollar, and the dollar affects the price of oil, and oil affects the price of everything.
6. Obama exacerbated the devaluation of the dollar. It resulted to uncertainties in all financial markets. When dollar fails, many people's wealth will be wiped out. Its not unusual for fiat currencies to fall into worthlessness. Savers will be the most affected. Banks will be ruined, and a possible worldwide pandemonium can happen.
7. There are still many more connections but i think 6 will suffice...