For today’s column, I thought that I’d discuss a number of differnet items. None of them probably warrant a complete column, but each of these items deserve a mention, so I’ll just combine them all into a single “multi-purpose” column.
Let’s start out with some business regarding LiP. Yesterday, Feyma and I got together with Klaus Doring, fellow LiP writer, and his wife Rose. We have been good friends with Klaus and Rose for some time, although in recent months we have not seen each other. I guess that we had not seen Klaus and Rose since about April or May, I think. It really was nice to refresh our friendship with Klaus and Rose, and to catch up with each other’s lives over the past few months. Of course, one of our main topics of discussion was regarding the situation with the fence being built in front of Klaus’ house here in Davao. For those who don’t know the story, some months back, Klaus became the target of a property dispute. Although I can’t say too much about what is going on with the case, readers will be happy to know that Klaus and Rose have chosen a path to address the situation, and I really believe that their chosen method to deal wtih this is a wise move. It will probably be a while before the whole situation is resolved, however, I am happy to report that Klaus and Rose have kind of put the whole situation aside, and are focusing on more positive things. I wish you well, Klaus and Rose.
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Our second topic of discussion today will be a visit that we are currently having at our house. Feyma and my niece from General Santos is visiting us along with her fiancee, Heart. The name of our niece is Sweet, so the couple is Heart and Sweet. They will be married in just a couple of weeks in General Santos. Last month, Sweet texted me and let me know that she would be getting married. Furthermore, she asked me if I would be their primary sponsor (Ninong) for their wedding. I used to serve as a Ninong often, and even for people that I didn’t even know, just because they would ask me. In recent years, though, I decided to take the act of being a Ninong more seriously, and only serve in the role if it was really a couple that I knew well, and I wanted to take the role seriously.
For those of you who don’t know what a “Ninong” is, it is a Godfather. It could be a Godfather for a child being baptised, or, here in the Philippines, you also have a Ninong for your wedding, actually multiple Ninongs. As a Ninong for a wedding, you are expected to offer advice and support for the married couple in the coming years, anytime that they need advice or assistance in their married life.
I was a bit hesitant to accept the invitation to serve as a Ninong, because I never met Sweet’s boyfriend before. I agreed to accept the role, but I also asked Sweet to travel to Davao with Heart so that I could meet him, and get to know him a bit before the wedding. So, today, Sweet and Heart made the journey to Davao, and we all went out for coffee and desert tonight to get to know each other a little better. I am glad that they did come, because i like Heart, and feel that he is a good person. He is quite shy, but that’s OK, as we get to know each other better, I am sure that he will loosen up a bit. Now, I am looking forward to the wedding, and my role in it. Good luck to Sweet and Heart, and I promise that I’ll do my best to assist you whenever needed.
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Yesterday was a busy day, in addition to the two events that I just mentioned above, I also had lunch with a LiP reader. I won’t mention his last name, in case he wants to keep that private, but his first name is Michael. Michael is a dual national – Israeli and American, and he lives in Israel. This was our third time to enjoy lunch together, we always have lunch when he visits Davao, which has become rather regularly. I always enjoy meeting with Michael, because he is a very intelligent man, and the conversation is always stimulating and enlightening. Michael is an Attorney, a Medical Doctor and also a Doctorate Economist, so he is highly educated, and also a very interesting man. We share many views and opinions, although we differ on other opinions, which always leads to an interesting conversation. I always look forward to Michael’s visits to Davao. Michael, if you have a chance to read this, thank you so much for a nice lunch, and next visit, it’s my turn to buy lunch!
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The big news for the day is that the Peso – Dollar exchange rate breached above the P48:$1 mark for the first time in a year and a half! I feel like 48 has been a key point of resistance, and now that the Peso has closed above that rate, we could make a swift move to P50:$1 now. We’ll have to wait and see. Over the past year, with the Peso going all the way to P40:$1, times have been somewhat tough for expats here, so it is a nice thing to see. Since I wrote about the exchange rate just last week, I won’t devote a whole column to this, but it certainly is worth a mention.
Personally, if the Peso gets back to P50:$1, I will be quite happy with that. A couple of years ago the exchange was all the way to P56:$1, and even if we don’t reach that rate for some time, or ever, P50:$1 would be really nice. In addition to meaning that all of us expats would have a little extra money in our pockets, a P50:$1 rate means that it is easy to convert from Dollars to Pesos and vice verse in your head!
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Anyway, that’s about it for today. Just some rambling thoughts, but at least you got to share what my day was like yesterday. A little busier than usual, but also very stimulating!
About MindanaoBob
Hi Bob,
Lots of good tid-bits there, my friend. Well, I guess (if my current plans hold), you will enjoy being our Ninong, too? You know I had to throw that in.
Ah you really are a busy man this week. I’m loving the exchange rate right now, definately helpful in my situation… now if I could only sell some stuff on Ebay. I’m also redesigning my blog at the moment while waiting for AdSense to send me my pin.
Hi Bob
All god news stories, Klaus….good luck there, a very difficult situation, saw your fence myself this week, not pretty, just sorted out the ninongs for annikas christening this week, so, going through that ourselves too Bob, and your friend from Israel, something people may not realise there are some highly accomplished ex-pats here and there are plenty of average joe’s like me, hey that was one of mcCains analogies in his last presidential debate with Obama (average joe plumber….forget i mentioned polotics….)
Something i am not quite so sure about is the 48 peso us$ exchange rate, sure it is good news for OFW’s and American $ earners / retirees but i find it a little perplexing when the financial crisis starts in the states, the possible world recession will start as a result of the decreaded demand of the american ecomomy, leading to a world slump, why is the US $ strengthening?
Why then does the dollar rate rise (and its not just against the peso, it has strengthened against other eurpoean countries who have taken similar measures to strengthen their financial systems) and is it temporary? beats me but in these matters, i am just joe the plumber, but and a very small point, i don’t know how to mend a leaky tap
just rambling observations Bob, salamat
Maayong Buntag Bob
Happy to hear things re going well for Klaus
Congratulations for soon to become Ninong
While the high Dollar to Peso is great for us but if it goes to high and hits the 57 mark again it could cause some stability issues with the Philippine banks.
Hi Bob – Too many opportunities for a smile today!
Ninong Bob = Sweet-Heart deal!
PHP48:USD1 = Strong dollars are hard to come by!
Will be back home in a month’s time, just after the next full moon!
Hi Henry- Don’t worry, you won’t have to ask twice!
Hi BrSpiritus- Yes, it’s been a busy week for me. Today I have another meeting, but only one today, so I’ll get a chance to relax a bit.
Hi rick b- Yeah, the whole exchange rate thing perplexes me too. In my simpleton mind, it doesn’t make sense, but what do I know?
Nice to hear from you, Rick.
Hi Larry- I had not thought about the exchange rate causing Philippine bank instability. I am not quite sure that I agree with that…. I’d have to think it over a big more.
Hi Paul- You have some nice thoughts there, some funny ones too. That “Sweet-Heart Deal” started off my morning with a smile.
Hi Bob,
I’m glad about Klaus.
Civil case in the Philippines takes forever. So I hope everything works out right for them in the end.
RE: forex rate, on your October 10 issue, I said we will be looking at P48.10 in the next few days. Here we are now 5 days later. So I checked again the 180day chart of the peso against the USD. I’m saying, the next target is still 48.80 and 49.50 . The 49.50 ceiling though will prove to be a strong one, so it will stay there for a few days. But if that breaks, hmmm… really good for me and my clients.
) Because the dollar will shoot up once again.
In trading, most major currencies are pegged against the USD. So for instance, if everybody is unloading their GBP (pound) , then in effect they are buying the US dollar. Hence, the appreciation of the US dollar. It’s like choosing for a better currency between the two.
That’s why even if all the news about the US economy are negative, it won’t matter. Because in forex trading, sometimes the market moves , due to the technical aspect of it.
Thanks again Bob. God bless.
Lea
Hi Lea C. Walker- It looks like you pegged this exchange issue perfectly. I’ll be keeping an eye on it and hoping that things continue as you speculate!
Sigh.. at this rate I better quit my online shopping.
Are Klaus and Rose OK? I hope that fence is gone and they can pass.
Well I’m glad to hear your comments regarding Klaus and family.
Sweet & Heart – only in the Philippines
I don’t really have a comment about the economy – too early to tell the outcome of all the potential new gov’t money that’ll pour into the US / world economy.
I like your new layout – the one thing I miss though is a picture of the author at the top of the article – I often open several articles in different tabs, and the pic easily identified the author. You do have the “about the author” at the bottom – a small pic at the top would be cool… I really like the contributor snapshots on the front page – y’all look more approachable than the static pics on the previous layout.
Hi Cheryll Ann- Unfortunately, the fence is not gone, and it looks like it will not be gone in the foreseeable future. They are taking it in stride, though, and seem to be doing well.
Hi Gary- I understand your feeling for an author picture at the top of each post.. I still have to figure out how to do that, though.
Thanks for commenting.
Hi Bob (and Feyma) – and of course Rick B., Larry, Lea C. Walker, Cheryll Ann, Gary, and all the others.
Rose and I liked to thank Bob and Feyma for taking time for us yesterday. Yeah, it was indeed important and overdue ‘to refresh our friendship’ in this way. Too many (of course not very enjoyable) things happened during the last months. Many of our friends complained already about our “silence”.
One thing was – and is still indeed the ‘fence’… As Bob said already: details regarding the ongoing processes can’t be mentioned – but, it is NOT a civil case… Of course, Lea, you are very right… Anyway, we have a way ‘out and in’ and also a ‘way out of this dilemma’ – and, this counts…
Again THANK YOU SO MUCH to all of you – and, especially to Bob and Feyma… God bless!
The exchange rate really confuses me. With the economy rate at is worst in America in many years the exchange rate is growing. Along with women just another thing I don’t understand.
Bob, of those you served as a Ninong before I wonder if any of them came back to you for advice.
Hi Klaus- We are glad that you have put the incident aside for now and decided to move forward. You will prevail!
Hi Mike- I am like you – so confused as to why the dollar is headed up right now!
Hi Bob
The property I purchased last year cuts off my neirbors property, I could never see
blocking them from there property they will have an easment, it just not good karma
Thanks
James
Hi James Browning- I like your attitude… it is a great way to go, in my opinion.
The dollar is seen as a safe haven for capital. It might struggle from time to time but it has always come back strong. You can’t eat money so there is always a need to have a secure spot to place it. After the election life will slow down a little and the stock market will have time to relax. Like wise there is no return on Gold. It dosnt pay interest.
Hi don M- Lately, the return on the dollar has been near zero too, with interest rates so very low!
my international bond fund paid over 6 per cent this last qt. A little of the money was in the Philippines.
Hi don M- I am talking about a strict flight to the dollar. There have been days in the past 30 days when the treasury issued bonds with zero interest (shorter term).
I am also hopeful that the exchange rate will get back to 50. It makes converting pesos to dollars in my head much easier. haha
It is funny your feelings about an exchange rate of 48 can change over time. I recall when it hit there about 18 months ago and I was just sick. Now I am happy. Of course, I would be much happier if it got back to 55 or 56.
Hi Gary- I am with you on this! Yeah, when the Peso went from 56 down to 48, I was miserable about it… now that we are back to 48 again, I am ecstatic! What a change!
hey Bob the pesos is … Nov 14… 49.450 – 1 US dollar …getting better all the time .:) ..Phil R.
Hi Phil R.- 49.45 was yesterday, the dollar slipped today, but only a little bit. Indeed, it is looking real good. P50 to $1 before the end of the year! What a good Christmas Present!
To those asking how come the dollar (USD) is going up on forex markets in the current economic climate; as a street economist I believe its mostly to do with money from the states going back there in a global investment panic. i.e. the Jones’s have a share or two in a few international investments which were hot property a year or two ago; they see the growth falling into a loss and pull their money home. Not to invest in more shares in the states but locked up in the safest bank they can find. (or in Gold purchased in the US). When millions of Americans maked choices like this three things happen: the international investment market dries up, the US stock exchange does not much better than others BUT the mega banks coffers go way up. This in turn drives more institutional investment in the same direction. It’s not that the US is an investment safe house (or the $) but that it’s where the $ came from; the $ is going home to rest/ hence a bigger market for $ to put in banks which only take deposits in $.
Hope this helps!