Wednesday, October 8, 2008



by Erick San Juan

Going by the books, a state is a group of organized people occupying a given territory. Dependent upon each other, every denizen is tasked to defend their territory from all forms of security threats – both internal and external. Necessarily, a state’s economy is controlled by some kind of a central bank, which regulates the demand and supply for a medium of exchange – the currency or money. They control the level of inflation.

In most, if not all cases, the central banks, being owned by the state, are run by people who have no investments in it. But they are the ones who lay down and enforce the policies and in so many ways, regulate the economic activities of their respective constituencies.

There is no doubt that the world’s greatest economies are struggling to survive these days. In fact, the United States government had to approve an emergency $700 billion bailout package recently, in a bid to rescue the drowning banking system of the world’s greatest and most influential state.

Also, there is no doubt that the current economic meltdown being experienced by the greater part of the planet earth, which is triggered by the tremendous rise in the price of fossil fuel, has caused a huge magnitude of sufferings to mankind – to a point where some had to take their own lives.

The sad part is that the Philippines ’ currency is, like those in many other small countries, tied to the US dollar. Ergo, whatever happens to the US currency will surely have an impact on the Philippines ’ economy. Sadder still is the fact that since time immemorial, nobody among the Filipino economic managers ever tried to free the domestic currency from this bondage.

Anywhere in the United States , signs of houses under bank foreclosure are a common sight.

“Now Hiring” signs have disappeared from the doors of stores and factories in the continental United States . More vagabonds kick cans along the streets. The population of jobless people is on the rise.

It is the middle class that appears to be suffering the most – it is they who got hit the hardest. From classy homes, legions of them are now renting modest apartments, causing break ups among families.

Certainly, the middle class is crying for a bailout package, but, instead, the US power elite have chosen to cast their economic rescue net upon the influential financial institutions whose executives, demonstrating an air of arrogance and wanton extravagance, shamelessly partied just as soon that the economic rescue package got approved.

Not to be undone, is the Great Britain and most of the other European countries, which have to come up with their own economic rescue schemes. For its part, Greenland , which is said to be facing the danger of bankruptcy, is said to be preparing to bite the bullet unless it's economic managers are able to do a turn-around.

As China , the world’s emerging economic giant, struggles to ward off attacks on the quality of its exports, other Asian economies - especially the Southeast – are grimacing in pain driven on them by the effects of having their currencies tied to the US dollar.

Given the reality, only the economies in heavy oil producing countries are the least affected by the catastrophic effects of the financial meltdown. As it is, regular unleaded gasoline, which sells at an average of $3.68 per gallon in the US and about P45. /liter in the Philippines could be bought at only an equivalent of some US$ 0.25 per gallon in some Emirates in the Middle East . The shortest explanation to this is the fact that their dependence upon imports and commodities – if not luxuries – beyond their means is nil.

Ironically though, countries like Burma, Laos and a few other small and other states which are barely surviving – but have kept their borders closed to western domination and influences – appears to be taking the meltdown lightly. Unlike Haiti , the Dominican Republic and other states which have been rocked by political and other strife believed triggered by the current economic slump.

But these facts bring to mind the question: Who is benefiting from the malady? If the heist on the Philippines ’ coffers is not perpetuated by its American and European masters, who, then must be making the killing? Isn’t it time that we find other allies? The globalist agenda which was implemented in both World I and II will repeat again with modification unless totally exposed.

Wake up Pinoys! Stop being suckered!

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