Showing posts with label national economic planners. Show all posts
Showing posts with label national economic planners. Show all posts

PostHeaderIcon Donations sought for this year’s 1 billion hungry people worldwide

11/16/2009 | Posted by mesiamd | Edit Post


The World Food Program (WFP) disclosed that for this year, an unprecedented number of hungry people will reach 1 billion. This translates to about 1 in 6 individuals getting hungry everyday. The United Nations (UN) organization asked people from rich countries to help in its online campaign for the poor by donating $1 dollar a week (www.wfp.org//1billion).

According to Josette Sherran, executive director of WFP, though governments worldwide have traditionally helped in beefing up funds to feed the poor, the present economic decline required that the private sector must assist in the anti-hunger effort.

A world food summit is scheduled in Rome, Italy to seek solution(s) for the increased hungry people. Countries like Germany, Britain, Italy, France and Japan are said to have withdrawn from their pledges in raising $20 billion this year. The fund is supposed to be used to prop-up agriculture in poor countries (http://www.avaaz.org)

Poverty in the Philippines

In spite of the over-hyped anti-poverty gains made by Pres. Gloria M. Arroyo, economist Cielito Habito of the Ateneo de Manila University in a recent forum said 35% of Filipinos are estimated to have fallen under the poverty line.

In spite of the economic gains of businesses, the ranks of the financially marginalized continued to expand ---- making it hard for the country to meet the UN-conceived millennium development goal of cutting poverty to half its rate by year 2015.

Experts blamed the failure of government officials to address the long-standing problems of the economy. Although the Philippines posted some economic growth, the living condition of the poor was still getting worse. Most of the growth was centered in the National Capital Region (Manila)leaving behind the poor Filipinos in the provinces and countryside. (PHoto Credit: mykworks) =0=

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PostHeaderIcon Money woes threaten the budget of at least 10 US states

11/12/2009 | Posted by mesiamd | Edit Post


It is not enough to know that New York State has its own money trouble. According to the Washington based Pew Center, California together with 9 other states are on the brink of budget disasters. The group’s analysis put lawmakers and governors in these financially troubled states on notice to the looming increase in taxes, employee lay-offs, and slowing of government services. The economy deteriorates in California, Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin.

According to the report, quick action is needed to mitigate a fiscal disaster. Double digit budget deficits are rising with poor business, massive unemployment, and uncontrolled housing slump and foreclosures. The 10 vulnerable states are home to a third of the American population---California, with a huge economy is mentioned as having the highest risk

“California leads the most vulnerable states identified by Pew, which describes it as having poor money-management practices. According to the Legislative Analyst's Office, California has made nearly $60 billion in budget adjustments — in the form of cuts to education and social service programs, temporary tax hikes, one-time gimmicks and stimulus spending — since February as tax revenues plunged.
Many of those fixes aren't expected to last. The state's temporary tax hikes will begin to expire at the end of 2010, while federal stimulus spending will begin to run out a year after that.”--- AP (11/11/09, Lin, J.)

By estimates California will incur a huge deficit hovering at $12.4 billion and $14.4 billion next year. This may be about 17 percent of the state's $84.6 billion general fund budget that is used for daily operation. Governor Arnold Schwarzenegger predicts more budget cuts are in the offing as a corrective measure.

The poor economy is creating undue stress of many Americans. They are learning the hard way to live within their means. The public is realizing that USA can’t buy its way to prosperity (i.e. by extravagant stimulus packages, unbridled borrowing and spending) as what the current government is doing. The country under Pres. Barack Obama may go through extreme financial hardship if his economic planners don’t go slow in their flamboyance and cocky spending. In this financial crisis, the government should have little room for gimmickry and naive manipulation of the economy. (Photo Credit: library.thinkquest.org) =0=

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PostHeaderIcon Conflicting economic outlook heightens anxiety of Americans

8/26/2009 | Posted by mesiamd | Edit Post


After Ben Bernanke optimistically declared that there are signs the recession is about to end, on the day of his reappointment as the chairman of the federal reserve, Pres. Obama said the economy is deteriorating. When Obama said that the cost of healthcare will be less, the news was flooded with gloomy forecasts saying otherwise.

The slight improvement of the joblessness reported weeks ago was followed with high umemployment numbers. In town meetings where irate oppositionists gathered to air their frustration. A cadre of optimistic Obama supporters also formed grups to get across their message of the advantages of the healthcare bill, raising the chance of confrontation with those whooppose it. Others who couldn't control their anger accused both sides as rabble-rousers, paid whiners, and representtives of interest groups.

These conflicting messages hadn't help Obama’s administration whose popularity early on was artificially shored by the die-hard elements of partisan media. Majority of Americans wanted him to succeed, but his job approval didn't keep up with the momentum of his leadership. There is confusion and frustration out there. The ex-vice president Dick Cheney complained, the White House has a lot of doubts now.

“…the White House pro jected the budget deficit would be $2,000 bn higher over the next 10 years than it had predicted. Taken with a separate forecast by the independent Congressional Budget Office, the news presented a bleak picture of America’s deteriorating debt position.”----Ft.com (Financial Times, 08/25/09, O’Connor, S; Luce, E.; and Guha, G.)

There is worsening of the economic outlook. There are fears that the budget deficit will put Obama’s reform in peril. The dollar is losing influence in the world market. If Obama doesn’t move fast and continues on his “Harvard” rhetoric without tangible results, the erosion of confidence will continue. As of August 25, 2009, Rasmussen poll indicates 71% of voters believe President Obama’s policies have pushed up the deficit. (Photo Credit: Sporadicity) =0=

RELATED BLOGS: A slow recovery from recession is still a threat according to Dr. Doom Posted by mesiamd at 8/24/2009; Obama’s projected budget deficit jumps from $7.108 trillion to $9 trillion Posted by mesiamd at 8/23/2009

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PostHeaderIcon US economic recovery & the uncertainties Americans face ahead

7/24/2009 | Posted by mesiamd | Edit Post


In spite of Pres. Barack Obama’s eloquent words, the US economy is still on the edge. The ambitious social engineering of the Democratic party has started to fray---- ahead of the economic recovery that it promised. The president who built high expectations since his election campaign is losing his approval and credibility at a fast rate.

Healthcare Dilemma

The country is spooked by the healthcare overhaul plan which will likely be rationed, endangers the independence of doctors to decide for their patients, and may lead to treatment delays and astronomical costs which can rob the future of generations.

Though most Americans agree that a change in healthcare is needed, Obama’s plan to pattern the delivery of American system of healthcare to Canada and Europe is met with growing opposition. His universal healthcare plan threatens the structure that makes medicine in USA the best in the world.

American medicine brings leaders of foreign countries to come to the US for treatment. With all its faults, it is the pre-eminent leader in innovation and the advance of medical science. Though expensive, the fast delivery of medical services for difficult health problems makes it outstanding.

Yet, cutting costs will bring undesired consequences. These, the Americans are grappling to understand. They don't know how much it will cost them in insurance premiums and what medical services will they get in return. They are seriously thinking how much of their income must realistically be alloted to medical care.

Even the Obama government shows poor grasp on the details of the change the "experts" are pushing, making the public doubt whether the rush to tinker with the current system will make their life better. It seems Obama wants the health plan to be voted upon soon while the public hasn't absorbed its hidden ramifications. In a speech, he mumbles of the same generic old tunes that don't clarify the uncertainties of his plan. To President Obama's and California legislator Nancy Pelosi's disappointment, the senate recently stalled the health reform bill for September after the August recess.

For one, they even haven’t tackled how to prevent billions that are lost in Medicare and Medicaid fraud. Many lawmakers who bat for more government intrusions in private life haven't read the legislation or discussed the health proposal. It's just like when Capitol Hill voted the $700 billion plus economic stimulus in haste and the public is left guessing. They don't know where the huge public money is going. Without giving evidence, the financial decision-makers say they "averted" the total collapse of the US economy while at the same time, they warn for another stimulus package if the initial strategy doesn't work.

The administration wants to tax the people so that it can subsidize the insurance of at least 10 million illegal aliens, part of the 47 million people who are uninsured. At the expense of the elderly who may be denied of certain diagnostic tests and medical treatment, the government wants to give medical coverage to those who ignored the law and gate-crashed into America.

Obama plans to control the approval and denial of services, putting the lives of the old, disabled, and those with chronic and rare disease in limbo. It is likely, the sick who are young with high chance for full recovery and are able to go back to work will be given priority over those who are old, recurrently sick, and those without hope of improvement. As a result of the expected decline of health service, according to political analyst Dick Morris, author of a new book "Catastrophe," this health plan will displace the elderly with poorer care, it may lower the life expectancy of the Americans in the next decade as well.

Joblessness still on the Rise

In the meantime, in spite of the outrageous spending that puts USA at the edge of bankruptcy, under Obama’s watch, the joblessness in the heartland doesn’t abate. The budget deficit continues to rise, prompting America to finance its runaway spending from debts abroad. If Obama’s plan fails, there will be many apologies, but almost no accountability---just the way it happened when bankruptcies occured in the housing sector, financial services, banking, and auto industries.

Newly laid-off workers seeking jobless benefits increased last week, consistent to the forecast by the Federal Reserve that unemployment will rise beyond 10%. Bolstering this prediction, the Labor Department announced that the initial claims for unemployment insurance went up by 30,000 this week, raising the number of idle workers to 554,000.

With these, the sword of Democles hovers precariously over the heads of US citizens, not used to having no control over their lives. Unlike before, Obama can blame his predecessors as the cause of the economic mess, but as time passes, it is looking more like his own. The free fall of his popularity may be one to tell. Those who slobber and blindly support him is likely to find disappointment. (Photo Credit: iQoncept) =0=

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PostHeaderIcon US jobless rate up to 9.4%

6/06/2009 | Posted by mesiamd | Edit Post


In whatever prism one looks, the US jobless rate in May went up to 9.4% from 8.4% in April, the highest in more than 25 years. Some consolation comes from a slower lay-off rate that economists look with optimism. Employers cut off “only” 350,000 jobs in the same time period. This is a cause of joy for optimistic financial analysts who feel relieved that the lay-off rate is lesser than in the previous months.

“Construction companies cut 59,000 jobs, down from 108,000 in April. Factories cut 156,000, on top of 154,000 in the previous month. Retailers cut 17,500 positions, compared with 36,500 in April. Financial activities cut 30,000, down from 45,000 in April. Even the government reduced employment — by 7,000 — after bulking up by 92,000 in April as it added workers for the 2010 Census.”---AP (06/04/09, Aversa, J.)

Perhaps to boost a brighter outlook and lessen alarm that the economy is still sliding down the cliff, the Department of Labor thinks the new data are signs that the recession is abating. In spite of the spike in joblessness, the highest since 1983, many insist Barack Obama’s $787 billion stimulus package is working and the economy is improving.

Critics aren’t happy though. Healthcare alone is costing taxpayers $450 billion for Medicare and $200 billion for Medicaid yearly. The government may require $1.3 trillion to cover medical coverage for the 47 million uninsured Americans in a decade once the universal health care is pushed.

This surely isn’t a consolation if one is left without work, underemployed, holds a temporary job or has given up looking for employment at this difficult economic time. (Photo Credit: AskOne)=0=

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PostHeaderIcon US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

6/01/2009 | Posted by mesiamd | Edit Post


“President Obama's ambitious plans to cut middle-class taxes, overhaul health care and expand access to college would require massive borrowing over the next decade, leaving the nation mired far deeper in debt than the White House previously estimated...

Tax collections, meanwhile, would lag well behind spending, producing huge annual budget deficits that would force the nation to borrow nearly $9.3 trillion over the next decade -- $2.3 trillion more than the president predicted when he unveiled his budget request just one month ago.” ----Washington Post (05/21/09, Montgomery, L)

To give the public a picture of what is to come, among high-profile company failures, on Monday, June 1, 2009, General Motors (GM,) the world’s largest automaker is poised to file bankruptcy (Chapter 11) in a US court in spite of the earlier bail-out extended by the government.

By placing the governmment stakes on the faltering giant car manufacturing company, the Obama administration is putting huge burden on the tax-payers. There are $20 billion dollars in federal assistance so far given by the Treasury in exchange for about 60% controlling stakes of the company. In addition to the $20 billion dollars, Obama plans to tell the Americans that an additional $30 billion is needed to see GM go through bankruptcy reorganization.

American taxpayers don't know if their money is being used wisely by their leaders. No one knows how the automaker can bring back the business to its old glory. Customers are uncertain, worried, and mad---something that corporate America haven't seen before. There will be more than 1,000 dealerships and plants that will be closed. About 20,000 workers in the car industry will be laid off as a result of the bankruptcy.

According to the U.S. National Debt Clock, the outstanding outstanding public debt as of June 1, 2009 is: $ 11,323,565,316,132.15. With the estimated population of the United States to be 306,284,942, each citizen's debt burden is pegged at about $36,970.69. How can Americans pay these?

The average US citizen may not fully realize that excessive borrowing and spending will likely mortgage the future of the children of the next generation. As cautious citizens have warned, the richest nation on earth may end up dirt poor earlier than predicted. The alarm is met with avoidance and silent dread by those who hear about it, especially those who think that Obama is the answer to their money problems..(Photo credit: Debtfree:Danilov) =0

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PostHeaderIcon For lack of local jobs, Pres. Gloria M. Arroyo asks Filipinos to leave for employment abroad

3/02/2009 | Posted by mesiamd | Edit Post
Without enough jobs available locally, Pres. Gloria M. Arroyo continues to call on her people to pursue jobs abroad. About 500,000 employment positions, mainly in construction are available in the Middle East, Australia, and Canada.

This is the recommendation of the country's president (the "top economist and chief executive officer") for the employment-seekers present in a job summit at the Malacanang Palace.

Technical Education and Skills Development Authority (TESDA) Director General Augusto Syjuco advises Filipinos to take alternative courses in butchery, tile-laying, roofing, carpentry and other menial jobs just to survive in a growing economic crisis.

Something is wrong with their recommendations. The policy of sending Filipinos outside has drifted away from the task of government to provide livelihood for its people. For the government to adopt a policy of encouraging talents to leave the country is objectionable.

An estimated 9 million Filipinos are currently working abroad to support families and help avert the financial collapse of the country. Government critics complain that more Filipinos will be separated from their families and placed in risky conditions as a consequence of being forced to leave the country.

There is sadness in seeing a president advise its people to take menial work abroad as a way to build a nation back home---much more sadness in seeing officials propose second courses in preparation for jobs availabe outside. (Photo Credit: Mark Hillary) =0=

RELATED BLOG: "Who says we are spared from the effects of recession?" Posted by mesiamd at 2/27/2009

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PostHeaderIcon Who says we are spared from the effects of recession?

2/27/2009 | Posted by mesiamd | Edit Post


Presidential spokesman Anthony Golez said the Philippines wasn’t among the Asian countries affected by the worldwide recession. It might be a lie that Malacanang Palace wanted us to believe. He based his conclusion to the non-inclusion of the country in the International Labor Organization (ILO) list which projects 113 million jobs loss in Asia as the world economy continues to falter (Malaya , 02/20/09 Bengco, R.) According to ILO, the expected unemployment number this year will be more than the 22.3 million jobs Asian countries lost in 2008.

It will do us good if we look closely at the data Golez is referring to before we celebrate. We aren't that trusting anymore. The effects of the financial meltdown are just beginning to show. It is foolhardy for him and the government he represents to assume that we aren’t affected.

The unemployment we see in the street is a better gauge than the assurances of government officials. We see what food we eat and what clothes we wear. Most of us are familiar of the signs of chronic job loss and their aftermath. The employment stagnation in the country is long-standing and antedates the global economic meltdown.

5,500 OFWs lose jobs—--Arroyo

"Some 5,500 Filipino overseas workers have lost their jobs abroad and returned home over the past four months, President Gloria Macapagal-Arroyo said Thursday. The Department of Labor announced earlier this week that 39,000 Filipinos had lost their jobs since October, a number which included overseas workers."---Agence France-Presse/ Inquirer (02/26/09)

Foreign companies are pulling out their business operations in Manila. Unemployment among fresh graduates continues to rise. There is pervasive underemployment and lay-offs. The rush for jobs abroad doesn’t abate even if applicants downgrade their qualifications just to grab work even if it is risky and suffers from inadequate pay. With a bearish investment climate, people are afraid to shell out money that stir spending and growth. The number of impoverished Filipinos continues to rise.

Pres. Gloria M. Arroyo’s job creation is too little to assuage the fear and anger of the public. The government projects that are quick-disbursing, high-impact, and labor intensive (according to Management Dir. Hermogenes Esperon) don’t come close to reality when one sees the widespread unemployment, poverty, and corruption in the country. That’s why we rely early on ourselves more than depend on announced legislated measures by the administration. (Photo Credits: Slavishtubesocks; JRIOrion)=0=

3,000 IT & 10,000 semiconductor jobs at risk

"At least 3,000 information technology (IT) jobs are at risk in first quarter alone while 10,000 positions in semiconductor industry could be shed during the first half of the year due to the global economic slump."---GMANewsTV (02/28/09)



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PostHeaderIcon The Coming Crisis of 2009: Some Thoughts (Part 2)

1/04/2009 | Posted by myty555 | Edit Post





I am continuing this series in order to provoke some thoughts. In this way we might have a better understanding of the crisis that is coming to our shores.

Finance capital, monopoly capital, "hot money". What do these all mean?

Finance capital is basically wealth producing wealth. Investors lend money for profit and it will always seek the greatest return. Monopoly capital and finance capital are similar up to a point. "Hot money" is the behavior of finance capital.

In the later stages of capitalism finance capital dominated industrial capital. The industries are now at the mercy of banks, finance houses and more lately by various kinds of funds including hedge funds. Their "worth" now rise and fall with the movement of finance capital. "Bubble". Just like Henry Sy "earned" S1.1B in the first 9 months of the year and his fellow taipans "lost" hundreds of millions of dollars.

Finance capital can also be exported. And withdrawn. And that is the problem of national economic planners. In the development of a country more and more its planners and its legislatures are no longer the dominant factors. Their economies shrink and expand and their exchange rates change with the movement of "hot money" finance capital. The size of this money dwarfs the national savings of nations.

And that is the reason why our exchange rate is on the downslide. "Hot money" is being withdrawn. Our equities and stock market earned 30% per year from 2003 ton 2007. All because of the "bubble" created by the inflow of "hot money".

Our local economy was not responsible for that "prosperity" (but it certainly helped Mrs. Arroyo survive). But woe to those that do not understand this kind of "investment". They will have to be content with the 3-4% interest the bank gives for time deposits which is not even enough to cover inflation.

In the competition of nations, we will be left by Vietnam, a country ravaged by war not so long ago. Our $1B direct foreign investment (DFI) per year is but a fraction of their $7B. And we better learn how to kowtow to China which receives $1B a day at its peak. They will be our investors and buyers in the future.

How do we catch this elusive "hot money"? It is simple as long as one country's economy can guarantee it will earn handsomely. That is why former developing countries like China and India are fast becoming powerhouses. They will not be left holding the proverbial empty bag because they have real wealth--their manufacturing sector, export market, capital market and technology is own the way to development and they can now absorb flights of "hot money".

"Hot money" without outlet is a dangerous thing. Arbitrageurs and fund managers became too "creative" in inventing new kinds of investment vehicles and this led to the "sub-prime" woes in the US. They have to show enough "profits" so that they wont lose their (finance capital) investors. After all their earnings are based on percentage and on the rise of their own shares.

And this is the reason for the rise of Madoff schemes (seems Madoff is on the way to replacing Ponzi in the dictionary). We can just speculate how many Madoff schemes are out there in the world.

Whatever financial conflagration that will happen finance capital will find a way to seek profits in all parts of the globe. It won't even matter if it is a conflict area, a dictatorship for as long as there is reasonable guarantee they will get their money back with interest.

So this crisis, in essence, is just a temporary thing. The world economy will "recover" when finance capital gains enough "confidence" again. But it is gullible, the suckers and the small fries that will bear the brunt of their activity.

Is this what is meant by greed?


[photo credits:huffington post, wired newyork]
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