Comments on: I think we've seen the worst

By: Bob Martin » Blog Archive » Fifty Two?

Bob Martin » Blog Archive » Fifty Two? — Sun, 29 Jun 2008 22:00:14 +0000

[...] a while back I speculated that the worst of the US Dollar/Philippine Peso exchange had already passed? I mean, I felt like the Dollar had already bottomed out. I wrote that piece back in May, and [...]

By: Bob

Bob — Mon, 26 May 2008 09:16:31 +0000

Hi Markus – Yeah, it is actually a combination of dollar strength and peso weakness. The dollar has also gained against the Euro a bit, so that does show some strength. I do agree that the Peso is weak right now, and I don’t think I ever said otherwise.

Thank you for joining the conversation.

By: Markus

Markus — Mon, 26 May 2008 07:38:55 +0000

Hi Bob, I am sorry to dissapoint you but it is not the $US that is getting stronger but the P. peso that is getting weaker. In my opinion the $US economy will get a strong “aftershake” from the housing disaster and now the economy will start slowing down, so the dollar will also get weaker. And during Christmass the peso will again fly high as billions of pesos will be bought by the OFW.

By: Bob

Bob — Fri, 23 May 2008 01:37:43 +0000

Hi chas – I believe everything you said is very correct. You thinking and mine are seeming to mesh.

By: chas

chas — Fri, 23 May 2008 01:27:27 +0000

Hi Bob,interesting comments and i’m sure most of us are keeping a keen eye on xchange rates.Recent news from a top analyst in Singapore is the growing danger of recession in S E Asia.For a while now i have suspected that Global recession is around the corner unless we see oil and food prices stabalize at a realistic level.However, the oil price is currently being driven up by speculators as much as demand.Regards Chas.

By: Bob

Bob — Thu, 22 May 2008 22:32:49 +0000

Hi BrSpiritus – The Peso has really lost steam in the past few days, and is falling a lot faster than I anticipated. I do think that your 45:1 ratio that you are looking for is possible, especially in the longer term. With the fall of the Peso in the past few days, I told Feyma last night that I am really hoping to see 50:1 again.

By: BrSpiritus

BrSpiritus — Thu, 22 May 2008 17:26:14 +0000

Well I’m personally hoping for a 45:1 rate when I come back from Alaska… makes my earnings there worth more to me. I’m really planning on building a house in the next year and I need to squeeze out all the pesos I can get for my dollars. As for living in the Philippines I think before I left my wife and I were down to around $800 or less a month in costs. It will be negligable after we move into the room above the store so YAY I can start saving money.

By: Bob

Bob — Wed, 21 May 2008 22:43:52 +0000

Hi dans – Foodstuffs grown locally do have minor affects from oil prices, but when compared to imported items or things like plastics that are made virtually 100% from oil, the affect of petroleum on local food products are very minimal.

Hi Thomas Shawn – Economics was my major in college, so it is kind of an area of interest for me, although I am not employed in the field and never have been. I believe your investment goals are right on target, and I wish you luck in achieving those goals!

Hi Preben C – A foreigner living in the Philippines is not taxed on any income that he earns from foreign sources. So, you can earn all you want, be it income from investments, employment, pension or whatever, and as long as it comes from outside the Philippines, no tax will ever be due on that.

By: Preben C

Preben C — Wed, 21 May 2008 16:11:46 +0000

Hi Bob.
This collumn is a lot about economics, and I wonder when a foreiner lives in the RP and lives on let say, a pension from abroad, will that pension be taxed in RP?
The reason for my asking is that when we move there my pension will be taxed in my homeland (sucks), but I hope it will not be taxed in RP too.

By: Thomas Shawn

Thomas Shawn — Wed, 21 May 2008 15:55:18 +0000

Bob -

You sound like you know a thing or two about economics. I think the dollar has bottomed for now, too. We’re at a sort of hinge point. I watch interest rates in the USA.

I know Obama would be bad for me and my family as he has proposed raising capital gains taxes (I’m a stock investor) to 35% and he promises to tax corporations to death (I work for a corporation.) He’s promised to roll back the 2006 Bush tax cuts (including the $1000 per child tex credit.) Obama as president would hasten my exit from the U.S.

I’d concur with your assessment of $1500 for a single in the Philippines. Wifey has speculated on $3000 for the four of us if our house is paid off 100%. So that’s my goal for investing: $3000 per month income!!