Is it the Mouth of Duterte or The Fundamentals of Economics; A Reflection from the U.S. Credit Crisis
Many Philippine news agencies are giving their opinions regarding the economic turbulence in the Philippine market today. The said economic turbulence is not that unusual to the fluctuation of our Philippine market before President Duterte’s reign. It is but normal for Asian market to react to the world market when it comes to the economy. Even the crisis of United States also ripples its effect to the world specifically Asia. The case of CitiBank, Merrill Lynch, Fannie Mae, GM and other U.S. Multinational companies. It is the U.S. federal to be blamed with all these world economic crisis that is looming in our society today.
As we can clearly manifest that most of the American companies are transferring their production to China and Vietnam and other parts of Asia knowing that the labor cost in Asia are far more affordable for the company to manage. There is even a case article entitled “Can US survive without Chinese Products”. U.S. citizens of today are in a scenario of the negative effect of Capitalism. Small entrepreneurial business players cannot survive the US market itself due to the existence of the multinational capitalist. If we try to analyze logically, why U.S. is in a crisis when they have a “sweet talking President?” Do you think their popularity in the world governments through their good PR can help their declining economy?
Philippine Economy and the Future
In the case of President Duterte and the Philippine economy, are we really in a credit crisis like the US is experiencing or it is just a hyperbole of market data and the manipulation to undermine the good governance of President Duterte. Filipino Citizens must not be fooled with the data or any statistical output given in the internet or any social media feeds, one must consider the bigger or the overall context of the case as to why the currency is inflating or deflating. As a given case, the consumer product of “palm oil” for example. If the supply of Indonesia’s palm oil will experience in scarcity of supply, palm oil price across ASEAN and Asia at large will be affected given the fact that Indonesia is one of the huge market supplier of palm oil in ASEAN and Asia.
As a fact, we can conceived that economic and the national economy of the Philippines does not rely from the words and mouth of our President Duterte but rather the natural effect of the natural economic science that we are always studying in academic institutions. To some percentage maybe, but never in my academic life I’ve read a text or other business research journal that states the notion that the economic effect of a given country rely from the spoken words of the president. Even America who is a sweet talker when it comes to diplomacy still experienced the credit crisis affecting to the world market specifically Europe and Greece for example.
Finally, the Duterte administration is gaining more impact to the emerging market countries for greener investment in the future. Future relationships from the emerging markets are creating new horizons in the Philippine market and its foreign policies.
U.S. Financial Crisis
Job Crisis U.S.
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