The Philippine peso: Strongest currency in Asia! GOOD NEWS

[bluefairy]

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mahal man gihapon ang mga butang oi..maytag increasan pud atong sweldo...

[balatucan]

When the standard of living of a country is going up, then we must expect that prices of most commodities will also increase. When people demand for higher wages, there will be a wage inflation. The labor cost gets expensive, that is why some commodities' prices increase. Pag negosyo di ba makaingon jud ka ngano ang price mo increase. Of course kung mag business ka, your objective is to earn profit. And to earn profit, you aim for a higher mark up in price. The government's role is to control the price of those commodities. However, it must see to it sad that the businesses which provide the commodities are also getting profit.

About sa pricing sad, you know naman sa economics about Supply-Demand-Price di ba. I don't want to explain more about it.

Competition man sad ang factor some commodities' prices are still low.

About this issue, it is not only we Filipinos have this sentiment. Even the citizens of other countries have this. Look at Japan, one of the richest countries in the world but is also among the most expensive. The labor force in Germany is known to have the highest wage in the world.

Instead of complaining, why won't we aim to be rich and strive to become millionaires or billionaires. Di ba in the future when you reach that goal di na ka mo complain ngano ang price mo taas. When that time comes, you won't mind the price of a yacht or a mansion or a luxury item as long as you want it.

Pero I understand that we are still in the survival stage. We have to satisfy first our needs before our wants. Mao bitaw naa tay brains and lawas para molihok. Instead of working hard, we must work smart. Just look at how some billionaires and millionaires have been able to get rich. Aside from being lucky or blessed, they have done it because they use their brains and their physical abilities. (ayaw na lang to i emulate kadtong na dato kay tungod sa illegal drugs)

AND don't put too much blame on the government. There is no perfect system of government. Those people there have flaws. They also have lives aside from serving the people. If we only wait kung unsay buhaton sa gobyerno, mahog na wa na jud tay nabuhat para sa atong kaugalingon. We must practice our freedom of democracry when makita na jud nato nga di na jud mao ang gibuhat sa Philippine government.

Now about sa Philippine peso, i have read the news that the peso is the strongest currency in Asia this year, the same as last year. This seems to be a good news to the Philippine economy. Pero as they say" You can't please everybody". Naa jud maapektahan particularly sa export sector. Pero it is good to know sad that there are some exporters that have made projection about the status of the Philippine peso. They are able to adjust. Naa pa ma sad uban nga wa pa nag expect sa rise sa value sa peso. mao na hard hit ang mga OFW's kay mogamay na lang ang madawat sa ilang beneficiaries kung i convert sa peso.

Taken all factors together, the equation is that with strong peso, it would result to strong buying power. The peso reached 57 against the dollar in 2005. Now its 42. Somehow, an effect should have been felt even if we take into account the law of supply and demand.

But there was totally nothing and instead it went for the worse for the Filipino consumer. The thread title is that a strong peso is good news.

We now have a strong peso. But where is the good news?

[bluefairy]

We now have a strong peso. But where is the good news?

True indeed. Not so much good news for us average Filipino workers...

[baron]

If we take into account the law of supply and demand, we should also take into account that we do not have stagnant oil prices in the world market. It would have been worse if not for a strong peso.

In simpler terms, we cannot simply say that a strong peso would render the prices of basic commodities at a lower price because the price of oil in the world market is increasing at a much faster pace. As such, we can only expect to balance the prices of basic commodities with the strong peso due to higher price of oil in the world market.

[baby_grace]

Tumpak, law of supply and demand plus the world market trends make up the factors that attribute to the changes in oil prices that most of the time determine the prices of commodity goods. Moreover, the effect of a strong peso which we awaited too long to happen won't pop up in an instant. Slowly we will feel the positive effects. There is already one no and that is the slowdown of the inflation rate even if oil prices are high. Maybe those feel the not-so-good effect of the Peso are those who hoarded dollars waiting for the conversion to go up to 60 so when they convert it they would get bigger amounts. It would really be bad if the Peso was weak together with the oil prices continuously going up.

[uzumaki]

maorag kosog ang yen sa asia

[jern]

to balatucan

Have you felt the worse effect of the strong peso being a consumer? Give me some instances.

the changing value of a currency may have some effects to the purchasing power. However, we cannot say that the strength of a peso would result to strong buying power.

the determinant of purchasing power is the standard of living of a person, family, place or country. to have more purchasing power, you have to earn more in order to spend more.

The strong peso has an effect to industries and products that involve exporting and importing. However, other products may have indirect effect on this. There are other factors, too.


We should not say that STRONG PESO DOES NOTHING TOTALLY. The strength of the peso sounds good news for other people and sectors. The strong peso has affected the export sector and the OFW's. It may not sound good for these sectors.

[balatucan]

So many excuses, so many alibis. The proposition was simple. Strong peso equals good news in general. Whatever the positive effects of a strong peso it must be stated specifically.

Anyway, I will provide least I will be accused of dishonesty. Well, the strong peso reduced interest payments for our foreign debts. Thats it. But the reduced interest payments does not necessarily translate to benefits tot people especially so that whatever money saved are lost to corruption which the GMA government is known for.

But we are talking here of the effects in general to the public. Generally is it good news? Maybe its good news to some but not to the majority of the people especially those on the lower strata of society. It should be remembered that majority of Filipino families are now dependent on dollar remittances from family members working abroad. So it is safe to say that majority are negatively affected by the surging peso.

The peso shrink to 42 from 57 after two years, how long will the people still wait for that positive effects to be felt? Would we wait until the peso would shrink to 10 pesos level? Can we assure of positive effects even if the peso will go down to that level. Or are we just crossing our fingers. If we still dont get positive effects, will we again make alibis and excuses?

Its futile to make excuses. The reality is out. Strong peso should have translated into positive effects on the masses. Otherwise, the GMA administration should not make an effort to trumpet it. It knows that it will add pogi points in the hope to arrest plummeting public approval.

[br]Posted on: November 28, 2007, 08:45:08 AM_________________________________________________

the determinant of purchasing power is the standard of living of a person, family, place or country. to have more purchasing power, you have to earn more in order to spend more.

This is a clear indictment that strong peso does not increase the purchasing power of the people. Im only wondering why the GMA administration thinks that strong peso is good news when it will do nothing positive to an ordinary Filipino.

[bluefairy]

I don't personally believe that the peso is gaining strength, it's the dollar that's weakening.

[baron]

So many excuses, so many alibis. The proposition was simple. Strong peso equals good news in general. Whatever the positive effects of a strong peso it must be stated specifically.

That is the reason why we have this thread, to point out if there is really a strong peso, what are its positive effects and adverse effects, and what are the factors that could lead to such effects, if any.

We cannot simply equate it to such simpler terms especially when there are intervening factors that affects the positive effects of a strong peso.

We are merely looking at one direction we know that we never understand there are still other angles to think about. As I said, the prices of basic commodities is very much affected and controlled by the price of oil in the world market. As such, if we equate the appreciating peso with the price of oil, it will really be impossible to lower the price of basic commodities. On second thought however, it will be more acceptable than having the peso at P56 while the price of oil continues to shoot up. It will be worse for us.