ECONOMY IS ABOUT TRADE

We are experiencing at the moment financial difficulties due to lack of revenues by the government to sustain its obligations and spendings that has now resulted to the TRAIN LAW  as hope to stay alive in the middle.

BALANCE OF PAYMENTS (BOP) STATES THE CONDITION OF THE ECONOMY

The current trade deficit of the country indicates the real condition of our financial capability as a government, and as a country. The BSP has been releasing figures lately that speaks about the situation which is are all deficits since 2016.

"The current trade deficit also factored into the Philippines' balance of payments report. According to the latest report from the Philippine Statistics Authority, the trade deficit in May was at $3.70 billion." 

"For the period January-June 2018, the cumulative BOP deficit of US$3.26 billion is nearly fivefold more than the US$706 million BOP deficit recorded during the same period last year, data showed."- CNN NEW REPORT JULY 20, 2018

We see the situation as a simple plus and minus of mathematics that can be easily understood that the government should not take pain to find solution to the problem of  the economy.

Business is the law of economy for any country, it is about wealth, and nothing more. But the problem of having wealth is also a not difficult task to make, but easily can be done by simple analysis and thinking.

MORE MANUFACTURING

When we speak about our current trade deficits which is about 3.70 billion USD is actually about low exports  by the country,  we just need more exports that would mean more manufacturing to mitigate and eraze the gap.

We just do not need to equal imports by exports, we must exceed our importatons as many times possible to state wealth for the country.

ENCOURAGE BUSINESS AND TRADE

To earn more revenue for the government, the administration or with the legislation of  the congress should enact laws that would ensure local capitalism, investments and free the atmosphere of commerce in the country.

TRAIN LAW 

TRAIN  law might have been a misplaced legislation of the congress because it targets to earn more revenues/taxes by the government of the same size of tax base of businesses  and commercial environment in the country.

When the goal is about more revenues, we should take the other way of increasing our tax base, of more businesses, traders, more commerce, in all multiplication of the GDP.

This is a broad way situation of finding means for revenues by not affecting its constituents, but in effect, broadening the tax base, good trade conditions that would result to more vibrant economy. 

The Train law is about cutting and suffocating the air for trade and businesses that will eventually lead to the collapse, reduction, and bankruptcies due to hostile enacted laws killing trade. 

CHINA BANNED 5G IN AUSTRALIA

The situation where China has been regarded as a security threat by the US and other countries in terms of its technology espionage is something that we should also be careful about even though we  don't possess technology, but on issues where sensitive information's are at risk.

Our situation is not about technology, but for our national security issues under our plan to seek investments from China for our 3rd telco player in the country  comes as a matter of concern.

THE US AND AUSTRALIA IS AN ADVISE TO THE MATTER.

Definitely, the US and AUSTRALIA  indirectly by their experience has given us the advise on why we should reconsider our plan to deal partnership with China in the are of telco industry for the country for reasons they had cited as threats.

Australia blocks China’s Huawei, ZTE from 5G development on security grounds

List of Chinese spy cases in the United States

For sure, for security reasons, there's no point to give China a hand in our communication industry where such will lead to  espionage of sensitive information regarding national policies that china can use against us.

While the US is considered as the beacon of technology of the world, and China is very much interested to acquire their advanced technology, was banned and rejected recently, is a strong indication then that our government too should refrain at this point in pursuing partnership in areas of sensitive and strategic investments such as the telco.

CHINA IS OUR ADVERSARY IN THE WEST PHILIPPINE SEA.

China is a transgressor in the West Philippine Sea,  and has threatened our fishermen of going to our EEZ and to our traditional fishing grounds, and much more  defied the UNCLOS ruling and prohibited us since then with their fictitious nine dash line.

Under this situation, the antagonistic attitude of China towards us is a kind of threat to our national security.

The situation is now felt by the  supply shortage of gallungong in the country and the government is now opting  importation which is unusual.

GOVERNMENT COMMUNICATION WILL BE ENDANGERED.

The matter will be much more complicated when China will get a hand to supply, operate our telecommunication system in the country, and their habitual espionage will further complicate the situation and affect our government policies.

Naturally, when communication is under threat, China which has big interest to our natural resources will easily infiltrate sensitive informations and policies of the government and can take actions ahead to the detriment of our national security.

There is no other reason to reject the same the offer of China when the US and Australia had already showed us the security reasons about telco industry.

COMMUNCATION IS AN STRATEGIC INDUSTRY

Regarded as an strategic investment, the government should not rely foreign investments to this sector, but it may further strengthen local investments as priority.

Secondly, when investments are needed in this area, criterias should meet not for those countries in adversarial state with the Philippines, rather reserved only for our  long time allies of democratic states possible.

GALUNGONG IMPORTATION

The proposed importation of gallungong by the government reveals a problem that food security is no a matter of national concern.

As quoted in the news, the country had been importing this round scud fish from abroad thru commercial canning companies in the country, but not a sign where the need today to import them by reason to augment food shortages for the populace indicates seriousness of the situation that our government must  put attention to our food security problem at hand.

BFAR ARGUED THAT THIS IS NOT THE FIRST TIME OF OUR FISH IMPORTATION.

There is that difference of commercial importation of fish for the  canning plants in the Philippines vis-a-vis with the need to augment supply and demand in the country directly affecting food security. The situation is showing detrimental concerns that the government must look into and resolve.

The foregoing  argument  does not justify the importation of Galungong, it only admits the dwindling local production caused by the loss of fishing areas in the west Philippine sea by our own fishermen.

IMPORTATION DEPLETES OUR FOREIGN RESERVES.

Directly, our foreign reserves are affected by every importations in the country and hence the addition of simple supply of gallungong shall not be appreciated to add more injury to our already declining foreign reserves.

GALLUNGONG iMPORTATION a news item from THE CNN

THE FISH IMPORTATION IS AN ISSUE OF THE WEST PHILIPPINE SEA.

This issue translates to the situation of the West Philippine Sea , since the assertion and occupation of China of its nine dash line  had directly affected the activities of our local fisherfolks in the area by its prohibition of Filipino fishermen fishing in our own EEZ.

We have now felt the effects of our loss of our sovereign rights in the exclusive economic zone of our country as ruled by UNCLOS resolution. The declining supply of gallungong is just he cause of the loss of our fishing rights in the West Philippine Sea caused by China's occupation of the traditional fishing grounds of Filipino fishermen.

THE FEAR OF THE FUTURE

There is fear of the future for all Filipinos by this situation of the scarce supply caused not by our poor local production, but by the loss of our traditional fishing grounds in the west Philippine sea.   It will certainly grow and result into more catastrophic future scenarios when situations are not resolved to regain our rights in our own EEZ.

At this loss, there is nowhere our fishermen will go for fishing unless it is resolved.

With our growing population, food security is a matter of national concern that must be addressed by the government, that it is of the same case  for China that she had  initiated the nine dash line falsely disregarded by the Hague tribunal that food security is her own issue.

NEEDED FUTURE ACTIONS

It is no longer a future action to assert our rights of the west Philippine sea that we have won from the UNCLOS, it is now that we must take necessary action to exercise of what was ours.

There is no better economic strategy but to exercise our rights now before anything are turned difficult to resolve later. Our silence of the issue as an acquiescence, an approval of the illegal acts of foreign intruders are the only option to maintain economic prosperity for the country.

image above is from this link :gallungong improtation

 PH eyes importing galunggong to stabilize prices

IMPORTATION TO STABILIZE PRICES

In truth, allowing importation of Gallungong to stabilize prices in the local market does not mitigate the situation and in long term is not the solution to address the impending food supply in the country, it merely reveals the real situation that there is fear  for the future of our food security.

We are not actually addressing the problem. Since we now see the situation, the government should now discuss the issue of exercising our rights to fish in our own EEZ, to stop of being silent on the matter.

It means also that our local production has declined by shortage and loss of our fishing grounds caused by China actually.

FISH IMPORTED MIGHT BE OUR OWN FISH IN THE EEZ.

There is valid thought that the fish we now import are actually our own in the EEZ that becomes an awkward act  for the government.

Making our own way for progress

The situation between China and Pakistan is just a matter to be observed by our own economic strategists that the relations of the two countries in trade is getting difficult for each sides.

We do not know what will be the long term effects of loans that Pakistan is taking from China that sooner int he future, trouble seems to be on that relation by how Pakistan can repay china of its loans.

Sri Lanka is one big example to observe that Pakistan itself might get into the same trouble.

In the Philippines, the alarming rate on which our government is dealing with China and having more loans from this country is  thing that must considered for study and caution. Because the experience of Sri Lanka and other countries in the process  must be a big factor to slow down and find other alternative and means instead.

Much more, the assertive actions of China is becoming evident in the South China sea and it must be a factor to reconsider things we are getting into with her. It is no unlikely that the south China sea in particular with the EEZ of the country to enjoy it s natural resources solely for the benefit of the country's economy must be the first policy of our government.

The rate we are engaging with China particularly loans and financial assistance must be taken with caution as we are observing all other countries are having that difficulty now.

malaysia, Cambodia, Vietnam, the African regions, and all over are now apprehensive of their future with China.

Even the Untied States is now in fear of Chinese dominance in trade and in their financial power to defeat countries and replace their leadership globally.

So, what do we expect from China, or how can our relations with her after the loans and the period to repay them?

There many other solutions that we look into internally rather taking our chances with China. We can have internal changes in policies and make our economy the way without foreign interventions and infusions.

We can make out economic growth, successes without strings attached difficult  to untangle in the future. Better not to engage in a manner that we will regret later, rather we can take a path other that that of China, but purely of our Filipino  methods and means.

FORGET CHINA, THINK PHILIPPINES

It is surprising that China has made great leaps in technology and manufacturing that made her a dominant world economic leader today.

The motor, or car manufacturing  companies of China that comes in droves are something that the country should  find as a compelling matter for ourselves to consider energizing our industries as mechanisms to defend our trade and economic situations that will be confronted by these developments in China and its impact to us. That on top of the current car and auto imports of the country, the onslaught of China's trade will definitely damage what is already a suffering  economy for the Philippines, and if not abated may cause more that can further ruin the economy that will hurt our recovery and growth.

We should view the growth of China in manufacturing as a threat to our economy, and that there must be something done internally to prevent the effects of trade of China to the Philippines.

The US and China embarkation to Trade war reflects as a lesson for our government, that such experience of the US against China in trade relations puts the americans on the bad side of the equation. These unfolding events b demonstrate to us tetween the two countries should concern us deeply, knowing that the US as being the biggest world economy is now at threat with the transformations of China becoming the next world leader by their wealth resulting from their trade surplus abroad, that naturally  is greatly their accumulated wealth will have its consequences into military growth and power.  This is the real fear about China's big economic growth.

In the outset, our government should take attention at once to the condition of  our trade with the rest of the world if we intend to defend ourselves primarily our own economy that later on if we can able to buildt and sustain, our progress for improving and creating more will then result to what is the goal for economy liberty and self-sufficiency of our future.

Silently, we should engage now while others are struggling with loans given by China.

To speak, trade war must be taken as a normal course of governance,  a regular business activity of our government, that for national security, such attention for trade, datas, rates, models, trends on the output and performance of our manufacturing, technology, and others must be taken into consideration as the core of the government's activities. That in keeping focus on these aspects, it will cause positive results faster than we can imagine if we concentrate on these issues just just like US  is now  taking care of these matters.

It is imperative for any government to be engulfed by trade war.

There are few dozens of car makers in China at present, and these factories and companies under this industry will make them ever self-reliant, self-sufficient, and self-sustaining domestically and will surely contribute to build support for their military, that its effects of their capabilities of improving their technologies is now felt in the south China sea disputes.

All civilian industries  are prelude to military modernization, and this is the very reason why China focused on manufacturing that naturally had made them sustainable in providing growth for their military. 

In these terms and understanding about the contribution of car industry in the country must be recognized by the government as a necessity today, that we can no longer afford delay before the global rush of economic power and financial superiority as the game and now being enjoyed by China.

Is it impossible for the country to start by its own car industry? This industry is just one component of ramifications for building or acquiring technology transfers that would cure the problem of our economy.

This is the question that the government itself evade to address head on today, that by the self-interests of our leaders elected, they've swayed on these facts and divert to social problems of the country which are inappropriate issues to focus on. 

Our elected leaders and empowered agencies of the government knows that this industry must start and lead our economy, yet by each administrations, we have been confronted by fears, corruption, submissions, and often lack of interest for these issues that fails gain for the nation. 

We had been into a culture of indolence and doing nothing with regard to the concept of technology that our people big or small tend to engage in a past time and insignificant matters forgetting technology and entrepreneurship.

To make things move, the government and our elected leaders should act on concentrating the investments of the government by means of incentives and promotion from the private sectors, take partnerships, loans, grants, tax incentives and holidays, exemptions, priorities, emergency, and exlcusive status that we can award to corporations, consortiums, mergers of private capitals, mixed investments of private and government, local and foreign arrangements, partnerships, joint ventures, and so on, to make things move and realize not only into a small scale but to emphasize that the industry must be grown proportionately large making these goals realized in short term period attaining global status and superiority


  

POWER OF THE GOVERNMENT TO GENERATE THE ECONOMY

With this episode, we can see that there are plenty of things that must be done by the government to address the joblessness of our people, that we need  focus to address unemployment and good economy for the country..

The situation of many Filipinos struggling in Malaysia is an indication that we are of lower stature by the terms of progress compared to our neighbor.

When Filipinos cross the border to Malaysia illegally, than Malaysians crossing ours in the south to reach the Philippines, is an indication that we are nothing compared to our neighbor in that respect.

In this topic, we'd like to find out things that the government should do in order to solve the problems of undocumented Filipinos in Malaysia and how we should attract our own people to remain in the country despite  the hardships they will suffer in Sabah once they go for illegally status outside the country just to find better lives outside.

The government must initate a cycle of build and sell of nvetsments. 

It is evident that we have substantial annual budgets in the government and that most funds are wasted on unnecessary government projects, government allowances, ghost projects, subsidies, excessive social and popular projects  yet unsustainable that depletes government resources, funds, aside from the magnitude of corruptions that result to the loss of our economy. 

Because of the shortage of jobs in the country, particularly in the southern pat of the Philippines,a case in this example, are thousands of our people now in very dire condition in Sabah that must be addressed with seriousness and attention by the government.

Lack of jobs in the country is prevalent  because of the loss of industries and investments both local and foreign, that a remedy is needed by the government to convert its resources to programs in direct  development of our economy in sustainable forms by engaging the resources of the government in business and commerce by initializing capitals to promote more entrepreneurial spirit for the people  to create and  expand  more industries.

Start a state owned corporations

Under the dry investment climate in the country,  there is no solution but to initiate government planting of state owned corporations and after some period, the government should sell them and produce more by the cycle.

In the past, the government had venture primarily in oil, power, transportation, and other government controlled industries and stopped there.

Instead of stopping, we should have expanded all forms of investments aside from the strategic industries  and spread into more larger and new investments where the country remains weak and short.

It means the government could have made, or have started to initialize businesses, corporations in a thousand  numbers not only remaining or preventing herself in  strategic investments and deprive ourselves of other unknown industries where all other countries have grown into and became dominant in those industries that now is crippling our export and imports balance.

After State owned, sell them

We have very little record of government businesses and investments that failed to create  impact for the economy, rather, our remained condition in  traditional, industries of utility and power generation, water, and oi supply stunted our expansion of industries that would have kept the country safe from the onslaught of foreign pressure and dominance.

Orr defeated exports  are those industries that we have failed to establish in the country.

If the government had created  thousands of industries and converted them into private ownership later, we could have seeded a thousand of industries from before and could be now running and serving employment  regardless of any record of foreign capitals or foreign investments inflow  we invite.

The built and sell scheme

Because there are stiff competition of luring foreign capitals into the country,  and we cannot depend on foreign capitals at the moment, the government should take the path of self-investments of its resources into every type of industries of yet developed technology and thereafter sell them into private healthy corporations that would drive and secure the economic future of the country in the manufacturing sector that would enhance our exports and lessen imports.    

The built and sell  of the the government is a sustainable means of using its resources instead of social programs that is just lost. The cycle of built and sell will create thousands of industries and jobs for our people where the private sector are reluctant to invest for,  is a cure to our economic problems and put forth development and security of the country.  

  

KENYA AND CHINA OBOR

It's time to look into the situation of Kenya establishing new economic relationship with China.

One belt one road initiative is now into action in the region by developing infrastructures in Kenya financed by China. The Standard Gauge Rail has been constructed back few years ago,  and things show differently in Kenya. That instead of favorable advantage for this small country to prosper and benefit in the OBOR initiative, it seems that at this fresh start, Kenya is put at a losing position pushing the country into debts with China.

First of all, the disparity of the the two countries together can be viewed largely as a  railroading and undermining the opportunities and capabilities of Kenya to have equal opportunities in the OBOR. 

The loans are from Chinese owned state banks, and the contractors to built the projects only belongs to Chinese firms, and majority of the labor supply comes from them. By this effect, the employment opportunities are lost for the Kenyans under  the relationship of these two countries.

Forty percent of about 3,500 workers needed for construction will be foreign, mostly Chinese, according to a filing with the National Environment Management Authority, reported in local media this week. The rest of the jobs will go to locals.

That Chinese companies import labor from China rather than hire locally is a criticism echoed across Africa, but particularly strong in Kenya where youth unemployment is the highest in the region.

“A project that will bring all workers from China, save for a few hundred manual jobs,” one user wrote on Facebook in response to Amu Power’s filing. “All we will benefit from is the environmental degradation and health effects that will be with us for many generations,” he added.  

The worst thing about Kenya’s new power plant isn’t that Chinese workers are being brought in to build it

In this view, we can see that the situation is all favorable to China which sells the OBOR to some 65 countries, financing their infrastructures to over a trillion dollars facilitated by it's state owned banks, provide construction services and  supply labor, and so on, in a one way scheme favoring only China.

Noticeably, China finance, procure, and supply everything from materials into labor using their local Yuan currencies, yet the whole loan amount is then charged to Kenya by the US dollar. The disparity and inequality exist in the relation. 

That while in the start of the OBOR concept, it's infrastructure building, China can be seen as already gaining advantage and profits even before actual OBOR takes into action.

The problem of Kenya now is the piling debts with China that would eventually ruin their economy.

IS CHINA RAILROADING KENYA INTO DEBT?

What seems to be the case of OBOR is that no countries can win it for actual trading with China, seeing it as the FACTORY OF THE WORLD, countries like Kenya and many others, will find difficulty counter trading with her and sooner along the way, it's economy will be in pure  debt, that eventually will find the situation very difficult to escape.

What is the relation of this news piece and article to our own situation in the Philippines.?

In seeing Kenya, we can say that the Philippines is heading towards the same direction as it is there we find these two countries  Kenya and  Sri Lanka. 

They're already in serious debt trouble.

At the current, the Philippines is entering in an era where Kenya and Sri Lanka had also gone into. We have been seeking soft loans from China, under agreement of railway projects in Luzon financed by Chinese state owned banks, and subsequently, there's no doubt that it will be importing Chinese labor just like in the pattern of Kenya.

Now, to make the situation more complicated, China is given the opportunity to become our third Telco Player will substantially embed more the force of China in other channel of our security.  It seems we are not only duplicating the experiences of Sri Lanka and Kenya, but doing more trouble difficult  for ourselves.

The best way to do now for the Philippine is to avert the situation on depending so much from China. There are aplenty of ways that we can spur our economic growth without attaching ourselves to more foreign debts , as there are many ways to kill a chicken. 

We need to focus on manufacturing. Create better environment for our local and foreign investors, and make business in the country the fastest, easiest, and in most convenient manner to be more competitive with our Asian neighboring countries. 

Everything in economy is about competition for the business environment, otherwise there will be no hope that the country  will ever prosper.

Kenyan rail workers are protesting against their Chinese employer for a raise—to $5 a day