The country’s debt rating has been UPGRADED!

Chocolates at WowPhilippines

Over the past few months or so, the USA has been in an uproar with politicians all fighting over the debt ceiling, budget cuts, new taxes, all things financial have been discussed.  This week, an agreement was reached among the opposing political camps.  The compromised on the issues.  I, personally, am not so sure that compromise is the best thing that could have happened in the current situation, in fact, I would argue that compromise over the years has what has put the country into the dire economic condition that it is in.

Moodys gave the Philippines a credit upgrade

Moodys gave the Philippines a credit upgrade

One of the big things that happened, which caused US politicians to get all up in arms is that the major credit rating firms like Fitch, Moodys and Standard & Poors all threatened to downgrade the AAA credit rating of the United States.  It is speculated that such a downgrade in the credit rating would have dire consequences on the US economy.  It would push  up the cost of borrowing for the government, and even for private individuals.  I believe that this is true, but I also believe that the consequences of such a rating downgrade would probably not be as severe as many of the pundits make it out to be.  Furthermore, I feel that probably the US deserves to be downgraded.  I mean, the way the political system is working, I don’t believe that anybody could seriously argue that the US economy is being handled in a straightforward or trustworthy way currently.  Because of the lack of forthrightness of politicians on every side of the spectrum, does the USA really deserve a credit rating of AAA?  Personally, I think not.

Now, I previously stated that I personally think that the talk of the dire straights that have been predicted in case of a credit downgrade is a bit overblown.  How can I say this?  Why do I say it?  Well, in the time I have lived here in the Philippines, there have been a couple of times when the country’s credit worthiness has been downgraded by the credit reporting agencies.  Also, in the past 2 months, the credit rating of the Philippines has begun the climb back after being upgraded.  Currently, after the recent upgrade, the Philippines stands at a rating of  BA2 with Moody’s and at BB with the other agencies.  The goal of the Philippine Government is to attain a rating two levels higher (Moody’s Baa3, S&P/Fitch BB) because if they achieve these levels, then Philippine debt would be considered as Investment quality, which would attract a lot of additional people to invest in the Philippines.  Regardless of whether the US is downgraded, it will still be well above the minimum for Investment grade rating.

Keeping your money safe

Keeping your money safe

Over the years, as I have witnessed a couple of rating downgrades in the Philippines, it has not really caused strife or a super amount of hardship in the country, and since any potential US downgrade would still leave the country at a high level of rating, it would just seem that the talk of strife and hardship is overblown.  Of course, I want the US to keep the highest rating possible, but it should also be realistic.  A rating of AAA means that the US debt is as good as cash.  But, based on the way the country and it’s handling of the budget is going, such a rating would not seem proper to me at this time.  With all of the spending obligations in the future, it would seem that a day of reckoning is coming for the US.

Now, with talk of a US credit rating downgrade, and the actual upgrade that we experienced in the Philippines a couple of months ago, it would seem that the two countries are on a path to intercept each other some time well down the road.  The fact is, and cannot be denied that the Philippines, as a country, is headed in the right direction.  The credit agencies said so by making the rating higher for the Philippines.  The USA, on the other hand is headed in the wrong direction.  The credit agencies have confirmed this by issuing warnings to the US government that if they don’t get their house in order, they will suffer a debt downgrade.

Flowers from WowPhilippines

I am happy that the Philippines is headed in the right direction economically.  However, it makes me quite sad to see the USA headed down the wrong path.

What do you think, will the paths cross and will we ever see the Philippines achieving a rating higher than the USA?  I think it is quite improbably in our lifetime, but if the US does not make moves to turn things around, anything is possible.

Update:  Standard & Poors has just downgraded the US credit rating.  The US has always had a AAA rating, but now the rating is AA+.

Post Author: MindanaoBob (947 Posts)

Bob Martin is the Publisher & Editor in Chief of the Live in the Philippines Web Magazine. Bob is an Internet Entrepreneur who is based in Davao. Bob is an American who has lived permanently in Mindanao since May 2000. Here in Mindanao, Bob has resided in General Santos City, and now in Davao City. Bob is the owner of this website and many others.

Author Info

Comments

  1. Illini Mike says

    While the US and Philippines credit ratings are unlikely to cross in my lifetime, I believe that our US overall standard of living, inluding wages, will decline while these measures will improve in the Philippines and other developing countries. I am glad that I have the option to live in the Philippines as the standard of living in the US declines.

    • says

      Hi Illini Mike – Unfortunately, I believe you are right, and I also agree that the US economic days are in a permanent state of decline. I also believe that the Philippine economy is in a long term upswing. You are right, having the option of living in more than one country is indeed a good thing.

      • john says

        i think the decline is due to multinational corporations buying polititions. the polititions seem to not have the averge american best interests in mind. campain donations reform needs to take place first for usa to start heading in the right direction also so called free trrade which isnt free on usa side due to currency munipulation and countrys stealing intelectial property and no enviromental rules make it hard for usa to compete with those countrys otherwise usa would be kicking butt because usa has enofe energy to be self suffiav=ciant and has enofe matterial resources and also has some of the most productive workers

        • says

          I think that one of the major problems that makes it hard for the USA to compete is that Americans are very poorly educated these days. Our people don’t even know how to spell or write a simple comment. They don’t know grammar. Your comment is very evident of the poor education that is going on in the USA these days.

  2. chasdv says

    Hi Bob,
    I doubt very much we will see paths crossing in our lifetime.

    As for the US being downgraded to AA,i think the biggest damage would be to the countries pride,maybe a wake up call for the politicians too.
    The recent cat and mouse game has shown how deeply divided the country is about solving their problems.
    Regards,
    Chas.

  3. Dan says

    Bob…nice post…..my take is as far as the USA goes…nothing really got solved a few days ago….lets just call it a post ponement of things to come…and do not belive what is comming will be that wonderfull for the USA or per say the people…they say there is no inflation..I dissagree on that…all one has to do is look around when they are out and about and can see inflation is a lot higher than the goverment here says it is…..The dollar buys less right now than it did a year ago..the big lift from the big bail out, lasted about as long as it took for the money to be spent, but did not really make any new or permanent jobs…over 50% of those that live in the USA pay no taxes….I think the very rich if they are smart will start moving their money else where …I think a lot of business do not know if they are comming or going as far as what to do here now..I mean expand…or de-expand…there is so much up in the air about more than one thing..that how could any small business really feel good or secure about expanding or putting on more help right now in this country..the USA…There are 2 many entitlements in the USA and to many free loaders and the percent that are working to pay the taxes to support all these free loaders is going down hill for a long time….The real truth is the Goverment is broke and up side down…its just no body really wants to belive it yet..but to me its the truth…Yes..I no they can print more money….have big games back in Washington…..do this and do that and try and pull the wool over the peoples eyes a few more times..but they are running out of wool and people are getting tired of it….I do think things will have to get a bit worse before people so a complete wake up..but that day is comming…to make it simple you can not for ever spend more than you make and that goes for even the USA with all their corruptness and ect…there is always sooner or later a day of judgment…..as far as the Phillipines goes……do not know much about what will take place there….but sure You and those that live there are hoping for the best….time will tell on all of this….we will see where everything is at next year at this time…..hahah…if it is better or worse…

    • says

      I’m with you Dan,the recent debt ceiling deal really is only a minor patch, and nothing that will have a long term positive impact.

      The government is broke… no news there! Unfortunately.

  4. brian says

    The debt agreement was nothing more than a dog and pony show, accomplishing nothing in the end. Lets take a look at the healthcare bill whos cost has not yet come due will blow the roof off the so called “savings/ reduction” when its implemented in the not so distant future.
    The dollar?? IMHO if you have any significant cash change it to another currency or precious metal,,,,,the dollar is going to go down. Sorry to say i think I have witnessed anoter Rome fall.

    • says

      Hi brian- RE: Rome… sadly, I believe the same as you. I believe that the USA has gone beyond the point of no return. Like you say, the debt agreement was really nothing in the end.

  5. says

    Moody’s and others rating agencies continued America’s credit rating at AAA. That’s predictable since Moody’s is like Walmart giving itself a triple-A rating.

    Meanwhile, China’s top credit rating agency downgraded U.S. debt on Wednesday, warning that it has growing doubts about whether the US federal government will have the long-term ability to pay what it owes to lenders. China just happens to own trillions of dollars in American interests. China’s downgrade news received only casual mention in American’s press, while all of the American papers and politicians are gloating over maintaining their AAA rating. Now may be a good time to start teaching our kids how to speak Mandarin.

    • says

      Hi Rich – I believe that some of those US agencies have yet to confirm the rating, and while some have continued at AAA, they have attached a negative outlook to the rating. It’s not a good situation.

      I had not heard about the Chinese rating agency, but that is perhaps even more important than the US agencies, given that much of America’s money is coming from China now. Sad, sad, sad….

      Mandarin indeed.

    • brian says

      Ironically this is the same agency that ‘overlooked’ the mortgage/securites fraud the banks were commiting. I wonder who’s bed thier sleeping in !!

  6. Mark G. says

    The US is fast becoming a third world country Bob. The streets that were paved with gold have been abused so much we can no longer afford to fill in the pot holes! I think Washington better wake up otherwise this country may self destruct. What used to cost $50 a week to feed my son and I now costs $80. Gasoline hovers around $3.50 a gallon. The drivers ed booklet is printed in 32 languages! That expense alone must be rediculous! The state of California alone is $22bn in debt but there are still proposals to increase social welfare programs. I’ve paid into social security for nearly 40 years and the Federal Gov’t has the nerve to tell me I might not get my ‘entitlement’!! Entitlement??? That’s no entitlement! It’s my money dammit! Well now I got my BP up, lol, but you can bet your sweet bippy I’m not the only one! Things may go downhill fast here.

    • says

      Hi Mark – Our gas here is nearly $5 per gallon, so we are with you on that! But, it is just so amazing that there seems to be so much more common sense in the Philippines compared to the USA. Try to relax and keep your blood pressure down… it’s not worth dying over! :wink:

    • Sam says

      Actually, I am a 54 years old American and last week I went to the Social Administration office to see what I should expect in terms of my social security retirement money.

      The lady told me, you can start your early withdrawal (with a penalty) at age 62.
      You can get your full ‘entitlement’ at age 66!

      I said to her, how do you define legal ripoff? Do you mean I get the money I had invested when I am on the death bed? Some scheme ha!

      Mind you, this Social Security money pool is considered (not that it exists) as part of the budget to leverage their debt and Congress is thinking of raising the retirement age again citing the ‘good health’ Americans are having :)

      Don’t worry about your BP Mark. Mine is way above yours now :)

  7. Robert says

    There is a triple top on SP500 that has been formed over a period of roughly 7.5 months.
    IT HAS BEEN BROKEN-DOWN THIS WEEK!
    This is significant for stock brokers, but not tragic, at least not yet.
    Let’s consider it as the SECOND CRACK in the system. The first one happen in 2007 just before the stock market crash.
    No crash this time.
    I expect the third crack to appear after the 12/21/12 and the final, forth crack in 2016.

    • says

      Hi Robert – We shall see. Losing 5% in a single day is a pretty severe setback. That had not yet even happened when I wrote the article, yet it only re-enforces what I wrote.

  8. Randall Jessup says

    Hi Bob,

    This week’s edition of Businessweek magazine says the “real” debt
    in the US is actually $211 TRILLION not the 14 Trillion the government
    there has been talking about! It says the only hope for the US is massive
    tax hikes and huge cutbacks in spending, none of which either party has the
    courage to do.

    I’m glad to see the Philippines has improved its credit rating. Overall I see the
    Philippines gradually improving its standard of living while the US will see a decline
    in its overall standard of living. Canada is doing well for now but is still heavily
    dependent on US trade. The high Canadian dollar affects our exports to the US.

    There may be a deliberate plan by the US government to lower the value of the US dollar
    to increase the competitiveness of US companies in the world market and thus improve
    the employment situation in the US.

    • says

      Hi Randall – Indeed, if it were a deliberate plan, the other thing that it does is that it makes the debt worth less, since it is accrued in higher value dollars, yet must only be paid back in the micro-value dollars. I don’t think it is a wise move, though.

      Like you, I have read about the fact that the US debt is much higher than what is being reported. If you count in the value of committed funds for social security, medicare and other unfunded future payments.. I have read that it is close to $100 Trillion. Your $211 Trillion is even scarier!

  9. Pita Mike says

    If the U.S. credit rating declines, then they will have to pay a higher interest rate on the $1.5 billion they borrow each day to pay their existing debt. The key it, the U.S. has to stop spending money like a drunken sailor…. OOPS, so sorry guys.

    We are becoming a welfare state, that has to stop, NOBODY and I mean NOBODYY will bail us out. We need to fix our spending problem ourselves.

    • says

      I can’t argue with a thing that you say, Mike. And you are right, they are spending money wildly. My fear is that they don’t have the will to cut back on the spending. A day of reckoning is coming.

      • Papa Duck says

        Bob,

        It’s really sad the way the country is now. All the politicians due is bicker with each other and never solve anything. First of all we need a straight flat tax rate across the board that would be fare to everyone. Stop giving entitlements to people who do not pay or contribute to it. Bring all the military back from overseas, we simply cannot afford it any longer. Really i could careless if Iraq/Afghanistan get overrun. It’s not our problem any longer. Hopefully i can make to the Philippines in 2014 before the day of reckoning comes. Another good subject. Be safe.

        • says

          Hi Papa Duck – It is very sad indeed. I agree with you that a flat tax would be a great start down the road to repairing the country. You have a lot of good suggestions. Hope to see you by 2014 or sooner!

  10. Lenny says

    I have my own thoughts about this. I feel just 10 years ago the U S was in great shape (Clinton.. balanced budget) then the Republicans took over, (Bush in particular), and a good “Business… the U S went mismanaged)…. so, now with that in thought, lets say we want to buy this business which we know is a great business,and can be turned around with good management, but, it will take alot of money and some time (5 years to get it back in the black)…And that is what O’Bama is trying to do .. and remember O’Bama isn’t doing this all by himself …the Clinton’s and a strong administration is behind him trying to get “the business” back on track…It’s impossible with what the Bush administration did to the country, to put it in such dire straits, for anybody, to correct the situation in only 2 years, but you can see it is very slowly creeping back.. The Republicans, did not want to tax their buddies, the Oil companies and big corporations which donated to their causes etc, and Back stab them, but we all know they need to be taxed …but fairly, and corruption has to be seeded out, you can bet it’s going on there also.. Look what the finance markets did to the housing market…The U S is a great country best in the world,,, the supplier of all, With good management it will come back just like GM or any other good business that has been mismanaged…………………

    • says

      Hi Lenny – personally I believe that both parties have plenty of blame on this. Yes, Clinton balanced the budget… with the help of Republican control of the house and senate There is blame for both parties. Just to bolster my feelings, the US borrowing under Bush was $1.8 billion per day. Under Obama US borrowing is $4.1 billion per day. So, obviously Bush cannot get 100% of the blame. Believe me, he has blame, but Obama seemingly has even more blame.

    • Rick Fernandez says

      The American people must send a TITANIC message to the politicians. End this damn posturing, bickering, filibustering, mud slinging, and finger pointing now and agree to fix the problem or face expulsion comes election day. Millions upon millions of IRA accounts took a severe beating today and the stock market chart is still going South. I just lost several thousand dollars out of my measley mutual fund account and now my future retirement is not promising. End this crap now or the American people will tell you to take a walk. Only the people will be able to stop these clowns from playing with our life savings.

      John Lennon: Power to the people!

      Cory Aquino: People Power!

  11. Robert says

    Let’s not kid ourselves, when US will go down the drain all other countries will follow. The debt is impossible to pay back, we are definitivly living on borrowed time.
    Better be prepared!
    I am Canadian and one of the reasons why I am here is because of tropics and because I can grow my food 365 days a year.

    • says

      Hi Robert, I disagree with your premise that every country will follow the US. It didn’t happen when the British empire receded, when Rome fell, etc. Sure, other countries will follow suit, or even lead, but not every country.

      • Rudi says

        You are right again Bob…
        As Rome was falling Constantinople was rising…
        As England slid into the dark ages, Ireland and Spain were rising as the depositories of knowledge…
        But this time the difference is we now live in a GLOBAL community! Never before in our history on this rocky orb have we been so interconnected…everything that happens is instantaneous…Our technologies have rob us of the time we need to react and adjust to new conditions…We no longer have the time to adjust to changing conditions, to adapt, to change our ways of thinking…We will react much faster, than if we had the time to think things through…I do so hope some country will survive, but, at this point I would not know who that country could be…Rudi

  12. Robert says

    Hi Bob.
    For the first time in human history this will be truly global.
    I would be truly impressed by any country that could say that they are not affected.
    Remember, this crisis has been designed in advance… with a purpose.

    • says

      Hi Robert – Neither of us can know for sure at this point, we will see what happens. What I would argue at this point is that the Philippines has been largely unaffected by the worldwide downturn of the past 3 years or so.

    • Ricardo Sumilang says

      Robert, you seem to know some well-guarded global secret no one knows about. You speak of “this crisis that has been designed in advance, with a purpose”. By whom and for what purpose? Other than attempting to incite panic, is there some kind of conspiracy to bring down the U.S.? Perhaps enemies from within?

  13. Neil says

    Hi Bob
    I don’t see the Philippines overtaking the U.S. in the credit agency ratings in our lifetimes or any time ever. I do believe that they may become equal eventually. I don’t see the U.S. becoming like Rome, but yes the standard of living will become stagnant or decline for many Americans. The future is brighter in the Philippines, because millions of Filipinos sacrifice to work overseas to support their family, the BPO centers which caters to Americans, and that the government does not provide entitlements to their citizens (which is a very good thing).
    I remember when Obama won the election and certain people were saying that the Democrats would be in the majority for a long time, but they forgot one thing, the government will run out of money and can’t continue their huge spending desires. I don’t feel sorry for people on social security, this debt has been building up for a long time so the elderly and especially the baby boomers have not been contributing enough as taxes and demanding to much in benefits. Of course Social Security has a huge surplus which the government has borrowed from it.
    Lets face government pensions need to change, medicare and medicaid needs to be change or this government will have persistent problems. We spend to much on defense. The Afghanistan economy is 15 billion a year while we spend 8 times that to pacify it. We have 37,000 troops in South Korea but they have enough contempt for us, when they show Captain America first Avenger, they did not include Captain America in the title.
    I do joke with my Filipino customers that the Philippines has a brighter future the U.S. has in general, but the U.S. will always be richer.

    • says

      Hi Neil – In some ways, if you think about it, the Philippines as a nation is already richer than the USA as a nation. Both are in debt, but the USA is way farther in debt. So, on a balance sheet, the Philippines ranks as wealthier than the USA. :lol:

      But, like you, in lifestyle terms, I don’t think the Philippines will overtake the US within my lifetime. However, nothing lasts forever, so I would never say that it will never happen, as you are saying.

      • Neil says

        Hi Bob
        When I say about wealth, there are no companies in the Philippines like Apple, Google, and other companies of that nature. We produce 5million plus of oil everyday, number 4 in natural gas reserves, number one in coal reserves. My brother designed a product in 3 months that became a million dollar product where the profit is 50% for the company. The Philippines is not there yet and it will take a long time to get there.
        Will the Philippines ever be as rich as we are in America per person? I really don’t think that will happen in the next hundred years or even two hundred but like you said never say never.

        • says

          Hi Neil – I cannot argue that the things you are saying are not factual, but I do argue that they are quite shortsighted. There are tech companies in the Philippines, and I’m talking Filipino owned tech companies, not foreign companies manufacturing here. How about Neo, the Philippine laptop maker? Something like Google, how about Yehey? Yes, these companies are small, but everybody starts out small and grows. The fact is that companies like Apple are manufacturing in China, and much of their earnings are not returning to the US anymore. American jobs have been fleeing the US for decades.

          You mentioned your brother inventing a new product. Fact is, he could have invented that anywhere in the world, if he decided to move to the Philippines or China it would not have stopped him from applying his intelligence and making a new product like that.

          World power is shifting away from the USA. Things could happen rapidly, you just can’t know what will happen within our lifetimes.

          • neil says

            Hi Bob
            The main reason why the earnings of Apple and other multi-national company earnings are not being repatriated is because they are taxed when they do at 35%. What I find ironic if an American national makes a profit overseas they must pay taxes on it each year even if they keep it in that country.
            I actually recommended my brother to work overseas where his skills might be better appreciated and paid better. It says something when a nurse in his area makes more money then he does. Doesn’t say much about the priorities in this country.
            Yes the world power is shifting from the U.S. and when the dollar is no longer the world’s reserve currency, things will happen much more rapidly. Though other countries have their own set of problems, except a few like Canada or Australia.

          • Rick Fernandez says

            ” World power is shifting away from the USA. ”

            Pretty soon the Chinese will be telling the US Navy ” if you cross the South China Sea we’ll blow you out of the water “. Scary!

              • Jude says

                no…..its not going to happen Bob……just arm us and I (we) will do the work for you in getting rid of the “bully” (a “world leader” wannabe) in the West Philippine Sea ……free of charge…….:)

              • says

                If it came to war, even if it were US vs. China that would be a tough battle. If it were the Philippines vs. China? Well, that would be a short war, I’m afraid. Even with US arms.

  14. chris says

    Hi bob it is all over the news here in australia about the monetery woes of the states ,i am not very knowledgebale in this feild but i am not sure that raising the borrowing amount is good economics ,say if you go to a bank and your credit is squeezing you to the max they will not give you any more until you have shown that you can afford it ,for example i went to try for a personal loan at a bank that i had been with for 20 years now i have a car under personal loan ,a small boat and a few other minor debts all up we are probably looking at around 40 grand in this day and age not much really ,anyway they did the maths and even though i own a 400,000 doller property i was declared a bad risk ,it amazed me but that was there answer ,but can you see what i am saying now the usa has to be cosidered a bad risk and to let them go on borrowing with out any plan to try to turn it around may be the downfall for them ,now i dont know much about us politics or home affairs but i think that maybe they need to start means testing people for the retirees pension ect we do it here and if you have earnt or have substancial investments then you dont get the pension ,people might say thats unfair but the ones who do not get the pension have normally had it pretty good during there working life and been able to salt away and invest large amounts of cash the pension is there to protect the elderly lower class and those who may have lost everything during there working lives ,i personally still think we dont pay the elderly enough for the cotribution they have made to our nation but one day i hope that it will be so
    chris

    • says

      Hi Chris – you know what they say, if you owe a little money it is hard to get a loan… if you owe a ton of money it is the bank who is in trouble and has to keep loaning more to ensure that they get their original money back! :lol:

      • dans says

        hi bob,

        I think that explain well why other nation sees U.S as a rich country, however, many didn’t know what’s behind it.

        what do you think of the video?

  15. Neal in RI says

    Very good video, I wish the US population would watch this and realize how much of a hurt the US is in. Maybe its time to start putting money in the mattress again but the problem it eventually will take a sack full of dollars just to buy a 1/2 sack of rice.

    I hope that in the future that the US $ is NOT worth so little that living in the RP is no longer cost effective.

  16. dans says

    hi bob,

    searching the internet for “who america owes”

    here are the list of asian countries america owes money from.

    China – over 1 trillion
    Japan – 907 Billion
    Taiwan – 154.5 Billion
    Russia – 125.4 Billion
    Hong-Kong – 122 Billion
    India – 42.1 Billion
    Malaysia 12 Billion
    Philippines – 24 Billion
    Singapore – 60 Billion
    South Korea – 30 Billion
    Thailand – 61 billion

    Source: http://www.washingtonpost.com/wp-srv/special/business/foreign-held-us-debt/

    I guess you are right, Philippines is 24 billion richer than US.. lol.

          • rebecca ferry says

            Bob,
            I didn’t realized that PHILIPPINES was able to lend money to the US i thought the Phils. owes lots of money from the US specially to the world bank and this post surprised me to the max. The philipines media keeps butchering the gov’t .that our country owes so much money from other countries but now i’m so glad that the Phils was able to help the US specially at this time.To be honest, i am so sad that the US is having this financial crisis nowadays and hope they will recover soon. In all fairness, the US deserved financial help from the Philippines coz i know that it’s the US who always ready to lend a helping hand in our country…….

              • Ricardo Sumilang says

                Bob, I suspect some of the money owed may have something to do with the aftermath of the bases closure, the cleanup of toxic wastes left behind in Subic/Olongapo, etc. Or, it could be for expenses associated with allowing U.S. troops on Philippine soil for the annual Balikatan (VFA) exercises. But 24 billion?

              • says

                No, I believe that those figures show what is owed in terms of US Bonds issued by the treasury. In other words, private Filipinos have purchased $24B worth of US treasury bonds as investments as a way of saving their money.

              • neil says

                Hi Bob
                I don’t know for a fact but I would suspect is that the BSP has bought some U.S. securities either to control the peso by buying or selling dollars or as an investment. I think the BSP has about 65 billion dollars of reserves (total value of balance)

              • says

                I would suspect that it’s a mix of public and private ownership, Neil. Remember that the BSP also gets regular injections of USD from OFW’s who are remitting huge sums of money on a regular basis.

  17. David S. says

    Interesting topic Bob. Unfortunately I disagree with your analysis. While politicians have, unchecked, been making bad choices for years their appears to be a ground swell movement in the U.S. to hold them accountable. As you know we are currently spending more than we collect in revenues. I don’t think this is irreversable. If we reduced our military expenditures to the portion of GDP that our neighbor Canada spends (close overseas bases, radically reduce the size of our armed forces, and our R&D expenditures) and stop providing foreign aid to people who dislike us (and probably always will), we could more than balance our budget today. Eliminating foreign oil purchases (this will happen as automobiles become mostly electric) and reducing the value of the dollar (this should have happened long ago – countries like Japan and China, among others, are artificially keeping their currencies low) will eventually balance our trade deficit.

    Unlike the Philippines, the U.S. does not have a growing population. The majority sentiment in the U.S. favors halting the illegal immigration from Mexico. Our next president will most likely be pressured into finally take the appropriate steps to close the border as the majority of Americans favor this approach.

    If the Philippines had the will power to eliminate its archaic investment and property ownership restrictions, it might someday be able to begin competing with its asian neighbors. Do you really think the wealthy filipino families are likely to surrender their stranglehold on the countires resources? What I see is a growing Philippine population getting hungrier and hungrier. Eventually they will reach the point where even their asian mindset won’t hold them back from open revolt.

    • says

      Hi David you are certainly correct that the USA can turn things around… but only if they have the will to do so, and so far, no such will has been indicated.

      Electric cars? How are the sales of the Chevy Volt? They are terrible. Also, don’t forget that it takes oil, coal or some way to make the electricity needed if the electric car ever does take off.

      I am sorry, my friend, but you are wrong about the US not having a growing population. The US has the highest population growth rate among industrialized countries. In 2000 the US population was 281 Million. In 2010 it was 309 Million. That is growth, my friend.

      You and I have totally different visions of the two countries. Nothing wrong with that, it’s just the way it is.

    • neil says

      Hi David
      You are completely wrong in your statement. We need to reduce our defense spending but we have a 1.3 trillion dollar deficit. We could eliminate our defense and our foreing aid and we would still have a 500 billion deficit or so.

  18. ROBERT D says

    Great stuff guys and I agree with most of you, the US is the greatest country in the world, I spent 30 years in the USAF defending our country. Nikita Kruchef said many years ago when asked about the US and Russia that the Kremlin need to worry about the US because it will be destroyed from within. That prediction some 50 odd years ago is still ringing in the hallways at the Capitol Building.
    One thing I want all the readers to remember and comment on is that our country was founded on “in GOD we trust” recent events have taken place removing prayer in schools, taking the ten commandments down in Alabama and the list goes on………GOD IS WATCHING

    • Ricardo Sumilang says

      I thought Khruschev said the USSR was going to do the burying, not enemies from within? :)
      The sound that keeps reverberating in the hallways of the Capitol building nowadays is the sound of silence because there’s no mas dinero. LOL Just the same, here’s something to lighten up our moods a bit – “… and the words of the prophets are written on subway walls”

      • says

        Khrushchev said that the Soviet Union would sell America the rope that we would use to hang ourselves. So, I guess he talked of a combination of enemies from outside and inside. :wink:

  19. RoninWolf says

    Opened a can of worms with everyone political party pointing there fingers. Yes, Clinton balanced the budget. He used the backdoor of social security to do it thats why FDR started it to get more money into his hands. The same FDR who confiscated gold and silver, yes silver too. Bush came along and everything chugging along then some little event called 9/11 happened. Again people blame Bush over and over, but there were no more attacks. Did he piss money away…yes but so didn’t people stocking up for Y2K. Total agree Bob that both party’s are at fault but the current party has us headed for a cliff. As for China and our debt, we own them 9% whereas the biggest is US the social security we’ve borrowed 39% !!!!! Theres your balanced budget Clinton lovers

  20. Jim H says

    It always fascinates me to see how passionate the American people (a generalism, I know) get about politics. This kind of topic doesn’t generate anything like this level of interest anywhere else in the world.

    It’s my belief that the problems are actually very basic indeed, rather than complicated as they are often portrayed. It’s all about basic arithmetic and good housekeeping. Unfortunately, most people want to keep things the same, especially the rich and powerful, and change is fiercely resisted.

    We all know that big cars are a bad thing (as an example)…they consume mineral resources at a frightening rate. So, the government should implement a law that says all cars that can’t do 100+mpg should be melted down and recycled. (Lots of jobs there!) But wait, no one will vote for that government. People love to talk, but don’t like actually DOING what they know is right. Many people disapprove of Obama’s healthcare reforms because they don’t want to pay for someone else’s healthcare, but happily pay $100 for a designer label t-shirt that cost $5 to make.

    It seems to me that it’s not so much the governments that are at fault as the mega-selfish people themselves who clearly need “correctional services”, to help them get a bit of self control.

    It all makes LIVING IN THE PHILIPPINES seem much more attractive, doesn’t it? At least there, it IS usually the governing bodies that need to be brought under control. (Thought I’d add that last sentence to try to bring the topic back to the wonderful Philippines). :-))

  21. Ricardo Sumilang says

    Well, S&P has spoken. It has determined that the U.S. is a poor standard (pardon the pun) for maintaining a triple A credit rating, thus giving the country its first downgrade in the history of the ratings, with an added warning that the rating could go down another notch within a couple of years if Washington fails to reduce spending as agreed upon in raising the debt ceiling. As bad as it is, I think this reality check, which is long overdue, is a good thing relatively speaking. With the threat of a further downgrade looming down the road, both parties on both sides of the aisle hopefully can now see the debilitating effects to the nation as a direct result of their hardheaded partisanship and cast aside their differences particularly when the interests of the entire nation is at stake.

    • says

      Hi Ricardo – this really should be a wakeup call for all Washington politicians, but I doubt it will do anything. The two political sides are too entrenched in their fantasy world, and I doubt we will see any changes. I hope we do, but it would shock me.

  22. Hudson says

    Hey Bob,
    The story I just read says that theUS credit rating has been downgraded by S&P citing debt deal not going far enough to reduce spending.
    The Tea Party tried to do the decent thing and put pressure on Boehner to make some actual cuts. Of course he compromised. Meanwhile the Tea Party was called a bunch of terrorist!
    I don’t get it, try to do the right thing and You’re a terrorist? Up is down…

    • says

      Hi Hudson – you are exactly right… while the Philippine debt rating is moving in a positive direction, the US debt rating is doing the opposite. I’m with you, the Tea Party people advocated living within our means, nothing more than that. Cut spending, because we are spending too much. For taking a reasonable approach, they were branded terrorists by no less than the Vice President of the USA. One Senator was reported as having said that they are terrorists because they won’t allow the government to spend money anymore! Yes.. correct… stop spending! The situation is critical, and the US could face life and death decisions in the coming decade. Yeah, I mean life and death of the Republic.

      • Hudson says

        “The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”
        – Cicero – 55 BC
        And we all know what happened to Rome…

  23. Mike says

    Bob,
    it really is a sad situation on this side of the pond. I bought my boat in Newport Beach, Cal, for about 40% of the asking price & about 16% of what I would have paid a few years ago. When I arrived in L.A. last weekend, I discovered that many boats are being given away here because the owners can’t afford the moorage! A new friend who moors his boat at the same marina as us is contemplating selling his assets & returning to his native Cebu! He comes from a wealthy family & was in congress in The RP, has done extremely well since moving to the US in the late 1980s, but doesn’t have much hope for the future of the economy here.

    Since my arrival, I’ve received several requests from experienced boat tradesmen willing to work for $10/hour and one guy offered to scrub my decks for food. It really is a very sad situation, far more sobering when one sees/hears it with their own eyes/ears. My new friend’s business – one of them – is in the Bellflower area of L.A. & there are closed businesses up & down what once was a very busy street. Still, landlords are charging exorbitent rents & businesses in the marine supplies and food services industries have cut staff, but not prices. I can’t help but feel that, soon, I will be sailing away from a disaster in the making. I know that we all like to blame one political party or another in our native countries, and I’d hate to see the influx of jobs to places like the RP end, but, imho, the out-sourcing has to be reversed if the US, Canada, & Western Europe are to survive. I guess we saw it coming, but that doesn’t make it easier to stomach.(Sorry for the long post)

  24. Cemlyn says

    When a country has one of the highest standards of living in the world for many years and becomes the target of envy for most countries it is inevitable I suppose that the only way to move is down. I agree with the comment that the cost of the ‘War on Terror’ has made a huge hole in the US finances and in the other countries which provided support like the UK. It has always been claimed that the states only supports those countries that they want something from, be that oil, minerals or whatever. I don’t know how much truth there is in that. I’ve always though that the UN should foot the bill for stuff like this. Every country pays into the fund for protection ( god, that sounds a little too much like the mafia doesn’t it) and the UN decides where the forces and therefore the funds go. But regardless of the cause it is clear that public opinion has changed in the US. There has been many years where so many people ignored what was going on largely because there life was ok so why bother. Don’t fix what isn’t broke and all that. Well now people realize it’s broke, so get fixing. I’m a Brit but I have always admired the American tenacity when it comes to fixing something. The country spends a lot more than it makes; fix it. The US is not alone, almost every country in the world does the same and while I think countries like the UK, Germany, Japan and the like have the will and the ability to make the necessary changes I doubt the resolve of many of the Mediterranean countries to do the same. I think that Greece, Ireland, Portugal, Spain and Italy will all fail over this coming winter. It will not be Armageddon but it will have an impact. I would never say this to my drinking buddies over a beer !! but the world needs a strong America. There is something uncomfortable when the ‘strongman’ looks weak.

    • says

      Hi Cemlyn – there is only one problem with letting the UN pay for the protection and defense…. the USA pays like 90% of the cost of the UN, so as far as US finances go, such a move would make no difference! :wink:

    • Mike says

      I agree with your thoughts on the UN, if I understand them correctly. While it would take longer for such a body to act, I believe that it would require all member nations to take responsibility, rather than one or a few. But, would The U.S., China, Russia, etc., be willing to assign their military strength to an intl. body, without a veto? That’s the problem. Regardless, the U.S. military expenditures are not the only significant on-going issue. I believe that if a company is to be allowed to operate in a country it should be obligated to employ people from that country. Globalization has, imho, been an abject failure.

    • Rudi says

      Just a little correction…
      The USA doesn’t even make the top ten in countries of the world when it comes to standard
      of living…Canada and Australia are in the top five…
      In the USA… the rich get richer and the poor get poorer.

  25. sugar says

    Hi Bob– I confess I don’t know anything about economic stuff… but Just going to share.. I was channel surfing.. and saw brief report on Bloomberg channel .. some executive or official was being interviewed and mentioned something.. ‘ wow, Philippines warning the US about our debt’ not verbatim.. but something like that. It’s good o hear that we Philippine rating upgraded!

    Is America Poor? Why in debt? Silly question.. he he. All I’ve been seeing in the cable news mostly about debts of US and politicians not bickering and then agreeing.

    • says

      Hi Sugar – Currently, the US national debt is hovering at about $15 Trillion – yes TRILLION, and growing by about $150 Billion every month. It’s sad to see, but yes, the USA is indeed very poor, and continues to spend like it is rich.

      • sugar says

        Bob, question again.. sorry to sound ignorant and just curious, if US is in debt, what do they use the money for? Like like infrastructures.. ie highways and all that? or for NASA.. or.. what? being from the Philippines, if the country borrows money, I sure would like to see many good roads and bridges and other important things for the country.

        • says

          Hi sugar – well, they don’t use it for highways much these days… US roads are so full of potholes, bridges are falling down, etc NASA? The space shuttle program was just discontinued due to lack of money. What do they spend it on? The biggest things they spend on are military to support wars all over the world, social security for retired folks, medicare to keep the older folks healthy and paying interest payments on the debt. And… a lot of waste too.

          • Don says

            U.S. military spending was 4.7 per cent of GDP in 2009. It was approximately 10 per cent in my birth year of 1960. It’s the middle class welfare “entitlement” programs of Social Security and Medicare that are now 7.5 per cent of GDP and rising and non-sustainable if nothing changes. Of course add to this the trillion dollar bank, AIG, GM, Chrysler, and Fannie Mae bailouts of 2008/2009 and the 800 billion dollar “stimulus” and “Obamacare” and 10 per cent of GDP federal deficits as far as the eye can see.

            • Charlie Hannert (Charlie Tuna) says

              Don,
              I trust you are not talkng about those of us that paid into Social Security for 53 years or so, that we are a problem ?
              I also paid taxes for schools to send everyone else’s kids to school while I had no children. So it’s these kids turn to pay back the people that gave them an education and so on, and also us Veterans that allowed them to have their Freedom.

              • Papa Duck says

                Charlie,

                I hope he was just talking about the one’s who have not paid into Social Security or Medicare. Those are the one’s who should not be getting it. Totally agree with your last statement. Take care have a nice day.

              • Dan says

                Well Charlie…there are many that would love to blame us that paid in to SS for over 50 years…paid taxes to support how many wars in the last 50 years…{and how many died?, and for what!},paid taxes to support schools..paid taxes on just about any thing and everything…paid sales taxes in most states..{yes a few do not have.. but they have high other taxes like state income tax and etc.}..yep..its the over 60 group fault that the USA is in the mess its in…in a way it is…..we were not that smart when we put into office some of, or most of if not all of the deadbeats that have been in and out of there for the last 50 years….Donkeys and Elephants and anything inbetween….that their only interest has been to please the few that kiss their!!,so in 30 years when most of us are dead and gone…then those youngers blaming us olders for everything that is wrong… they can have the next great bunch below them blame them for everything that is wrong…..so if you are getting a ss check…and worked for 50 years or more…then love it…spend it…enjoy it while its there to enjoy…

  26. says

    “I would argue that compromise over the years has what has put the country into the dire economic condition that it is in.” Hey, we agree on something! (trumpets, fireworks)

    I’m not even going to touch the politik end of it, but just glad I work out of the US. No state tax, expat discount & lower expenses are helping me save money. I won’t even stress on the 42 to 1 dollar rate because I know I’m in a better situation than many of my friends around me.

    I’m glad you see the bright side of the Philippine situation. They still have much to go in terms of reform to catch the big dogs (or even little chihuahuas), but it’s good to see progress instead of lamenting the doom & gloom of our daily news.

    • says

      Hi macky – I am very bullish on the Philippines. I see a lot of good things happening here over the past 5 years or so. Unfortunately, I don’t see much good happening in the US, though, which makes me quite sad.

  27. Robert says

    It is very nice to see so many people writing about solutions now when it is too late.
    Yes, it is too late my friends. Nothing will save us from catastrophe, NOTHING !

    Their plan to destroy the present financial system is way too advanced and nothing will stop them now. Sorry folks.

    Here are the culprits, please take your time to read carefully each page.
    At least you will know why this is happening.
    http://globalistagenda.org/index.htm

    • brian says

      I agree. The USA is a sinking financial ship, can it be saved? Sure only on the backs of a working generation. What kind of lifestyle will future Americans have ? Taxes have to go up…way up, corporate taxes way up, property taxes way up, cost of living way up, add in inflation ..ect…yes the USA cold survive but it would be a shadow of a Country it once was.
      Party-tism before the good of the Country, at the expense of the Country. Everyone I know has lost a minimum of 45% of their equity/assets.They are very very angry. I predict civil unrest within 8-10 months. Americans have had it to good to long to have the patience or pride to stand in a soup line.

      • says

        Hi brian – the only problem I have with anything you said is that if corporate taxes are raised the corporations will leave and go overseas quicker than they already are. That would only alleviate the problems. Other than that, I think you are right on point. I also think there is a strong chance of violence.

  28. JR Tingson says

    Hi, Bob!

    Well, just like you, I’m happy that the Philippines had a boost in its credit ratings. This happened twice in a year! :) And not only that. The Gross International Reserves (GIR) of our country hit an all-time high. I do hope that the upward trend will continue despite the political noises and the debt fears now lingering worldwide.

    BUT probably you’ve heard already the bad news. S&Ps just downgraded the U.S.’ credit rating by a notch to AA+ from its top rating of AAA. (The first time since 1917). You were right, this will eventually happen. The U.S. is still the world’s largest economy and market. I hope the worst of the U.S. economic troubles will be over soon and hope that the American politicians would stop their bickering and focus on bringing up long-term solutions.

    • says

      Hi JR – Yes, I too am so happy to see the Philippines headed in the right direction! It’s good news, for sure.

      Yes, I saw the news about the credit downgrade for the USA, and added it as an update to the post here. Very sad news.

    • says

      It would seem the right thing to do at this time, although the dollar is weak, so it might be good to watch for selling opportunities for the dollar, when it spikes a bit.

  29. Jade says

    I will not respond to the real-estate fiasco or the huge military expenditures, nor the manufacturing and service outsourcing as well as much more waste. These subjects have been well discussed.
    I would like to bring up the subject of the bloated medical overkill with overpriced and unnecessary procedures brought about by the ‘defensive medicine’ being practiced due to the over generous legal suit awards. And the rubber stamping of all bills submitted to the medicare, medicaid and huge expensive medical insurance companies.
    Am I wrong?
    Jade

    • Papa Duck says

      Jade,

      You are correct with all the Medicare Fraud, especially here in Florida. Malpractice insurance is so high, which forces doctors to be extra cautious and also forces them to have a heavy appointment schedule. Have a nice day

    • Dan says

      Well..all of us could help a little on this huge problem of Medicare Fraud..by just signing up at….Click here and you can check each and every claim any Doc., clinic,hospital and etc filed. I can say from expeerince that this is a good thing and one needs to do their little part…..some time back went in and got my ..welcome to medicare physical…for some reason thought something was not right…..so took me a while to find out about the web site above and get into it..but did……and low and behold…the billing company for the Doc’s office had double billed Medicare under 2 different claim numbers and to top it off they did the same thing on a follow up visit!!! Not to be out done…another Doc went to..and paid cash for the visit…(they did not take medicare) filed a claim……a phone one…..$30.00 that the paid bill I paid in cash and put a different date on it…….so….I called medicare and thought would have to wait a long time…..no way…they got right to me…1st lady could not help me..shot me to a higher level….and that lady and my self had a near 1 hour long conversation….She told me that she was happy I took the time to get a hold of them and told me that if every person on Medicare would take the time to sign up..check all their claims and then if they do not agree..then call like I did it would help…(oh have to add this..for those that think medicare pays claims slow..not true…that is something else you can see there is when your claim summited and when paid )…..but I really belive a lot do not even know they can do this…also for those on Medicare….you (if you do not all ready know ) need to go and find out what your rights are….to0 many Doc’s and Medical places and etc are giving many the good old shaft….the point I am trying to make….each of us needs to try and do our own little part to try and move things in a different direction….who knows…maybe if enough try….we may be able to change things here in this country….its still a great place to live…I think any way….

  30. says

    Democrats…..”Tax and spend”…….. Republicans……..”Borrow and spend”……..Either way we have been on a spending binge for years, and now it’s time to pay the piper. In stead of raising taxes to pay for wars, ” we” decided to borrow from the Chinese and others to pay for it.

    30 plus years of trickle down economics has helped who on this forum? Until we have an equitable tax structure that is implemented for the good of all we will continue to see what we’re seeing. There’s a reason the powers that be don’t want change. It benefits them to keep it the way it is.

    I could go on, but the problems are never ending. Bottom line…..we need leadership that is more concerned about the people, and not how much is in the re-election coffer.

  31. says

    Yes I agree……We can only hope that someone will appear outside the 2 parties that can effect the change we need. The politicians on both sides are beholden to the same people.

    • says

      Hi Greg – for a long time now, voting for President has been a matter of holding your nose while you voted for the person that you felt was not quite as bad as the other one. It’s been a long time since there was a person running that I could get excited about supporting. Unfortunately, I don’t see anybody in the race this time that excites me either. No matter who is in, what happens is the same anyway.

      • Dan says

        “Eeny, meeny, miny, moe” who do I vote for….”Eeny, meeny, miny, moe” I do not really even know…”Eeny, meeny, miny, moe” does any one know who to for for? “Eeny, meeny, miny, moe”.. lets kick all their butts out the door…”Eeny, meeny, miny, moe” how?,I do not know who to vote for!”Eeny, meeny, miny, moe”

  32. Jim H says

    The us government followed the UK lead, and “saved” the organisations that it seemed “inconcievable” could be allowed to crash…banks, Chrysler, GM etc. Was it right? I think the answer lies in the question “is short term gain for long term pain a good thing”?

    Iceland, on the other hand just let their banks go bust…it will be interesting to compare the outcomes in 20 years.

  33. Charlie Hannert (Charlie Tuna) says

    I haven’t seen anybody, not one single person, post anything about what they are doing about it unless I missed it somwhere. Are you at least trying by writing, emailing, faxing, and or calling your Senators with your comments and suggestions ?

    • says

      What I did should be easy to deduce. I moved out. I’ve been living in the Philippines where I can enjoy my life and not worry as much about the state of the USA. Yeah, I still have worries about it, but not to the extent that I would if I lived there.

      Writing to representatives? I don’t think it does anything to help. To make change you need to vote. I chose to vote with my feet by leaving. Of course, I didn’t leave only because of the politics there, but as time goes by, I am happy that I did.

      • Scott Day says

        Hi Charlie and Bob,
        I personally do not think voting is going to change the crisis unless the mindset of the people who are voting change. They will keep sending the same morons they send every time. People vote now based on “What can the government take from someone else and give me.” The people have been turned into “Sheeple” by making themselves so reliant on government. The American people are going to have to come to the reality they will have to sacrifice some of the conveniences they grew accustomed too, even if it hurts our way of life.
        As Ronald Reagan said “Government is not the solution to our problem; government is the problem.”

        I also have to say all these doomsayers saying the US is going to fall needs to get a life. I am finding most of the doomsayers are not even from the US. We survived a civil war, a depression, two world wars and Jimmy Carter, so I think we will survive Obama and this debt crisis. I find Americans are at their best when things are at their worst. The US will have a thought time but it will still be around for many a century.

        • says

          Hi Scott – As I said in an earlier comment, a lot of people who have no idea about what’s going on vote when they probably shouldn’t unless they become more familiar with what is going on with the country. I can’t disagree at all. Now… I don’t feel I am a doomsayer… but I do feel that the US is in for some real rough times, and I just don’t see anything coming that will fix the problems.

          • Scott Day says

            Hi Bob,
            Really was not calling you a doomsayer as we agree the US is in for some rough and lean times ahead. I am talking about the people who think the US is going to fall. I agree that a majority of voters are ignorant as to what is really going on. I can tell you the average American does not even know what party controls congress or how the US Govt. works. Like I said these are the “sheeple” who vote for the people who give them the most. Here is a link to show how informed the “sheeple” are: http://youtu.be/zl0WwC9OcOI

        • Ricardo Sumilang says

          I find that the doomsayers on this board are just about equally distributed among non-Americans and Americans, Scott. I’ve said it before, and I will say it again. I can understand non-Americans who continually bash America because they are just acting out their long-repressed envy. With America’s economic trouble worsening, they all seem to come out of the woodwork and take turn kicking at the guy who is already down. What I find reprehensible though are the Americans with defeatist attitudes who are predicting America’s demise with no hope for recovery. How the heck do they know? I am with you: “Americans are at their best when things are at their worst”. Thank you.

        • brian says

          Scott, I respect your opinion but That’s what the Romans said as well. What is occurring is unprecedented in the history of our Country, but not unprecedented in history.
          Time is the teller of all truth. Add the numbers up….America is bankrupt, and few Americans really know what that will bring.

  34. Charlie Hannert (Charlie Tuna) says

    If you are not part of the solution you are part of the problem.
    And you don’t vote !
    Then you have no say in what goes on in the U.S.A..
    You sure don’t mind getting business from U.S. dollars do you ?

      • Charlie Hannert (Charlie Tuna) says

        Writing to representatives? I don’t think it does anything to help. To make change you need to vote. I chose to vote with my feet by leaving. Of course, I didn’t leave only because of the politics there, but as time goes by, I am happy that I did.

        Hi Bob,
        I guess it was mostly the sentence about voting with your feet that lead me to think you don’t vote. I am very very happy to hear you do vote. I know the choices are poor but we have to play the cards on the table so to speak. Personally I am not of any particular aprty, though if I have to pick one I’d be closest to Libertarian. I still feel writing is better than saying nothing, how esle will they know how we feel.
        I agree with Scott that we have far too many negative thinkers.
        To me it is a free world and we all have a right to say what we please.
        That includes living in the Phipippines.
        Have a fantastic day Bob, you sure know how to stir the pot. :o)
        What do you and the folks out there think would happen come election day if “nobody voted” ? Would we then not have any poilticians ?

        • says

          Hi Charlie – I’m not sure why that sentence would lead you believe that I don’t vote in elections. You vote with your feet every day – you decide what restaurants to go to, which shop to take your car to for an oil change, etc… but it doesn’t mean that you don’t vote in elections. Frankly, what you said about me not having any say because I don’t vote… well, it was pretty rude. Next time, I’d just advise you to ask before jumping to wild conclusions.

          You have a nice day too, Charlie. I hope that everything gets straightened out in the States.

    • Jim H says

      I’m always fascinated by this idea that in a democracy, people believe they can have a say in what goes on. Democracy is merely a popularity contest. Votes can be and are cast by individuals who have not the slightest clue about what they are doing and why they are doing it! It’s a complicated version of Mob Rule, in fact. Even people who pay $100 for the $5 t shirt I spoke of earlier are allowed to vote. And the Western world wants to impose this nonsense on the rest of the world???????

      And also Charlie, I believe Bob pays US taxes too.

      But here we go again, somewhat off the topic of living in the Philippines.

      • says

        I think you are right, Jim. A lot of people who probably should not be voting are voting. I mean, I believe in the right for everybody to vote, but people who are totally uninformed and don’t even know what the consequences of their vote… should they really be deciding things for the republic?

        Anyway, not sure what got into Charlie, but I hope he is feeling better.

    • brian says

      We pick who they already have picked. Its an illusion that we elect our President. When private people own ALL the major media outlets they can control who gets in front of the American people, who get most of thier information from where?? The ‘owned’ media !!

      • Charlie Hannert (Charlie Tuna) says

        I agree Brian. How about we all quit watching, listening to, or reading what the media writes. Now, how do we find and promote the right canidate ?
        As I mentioned above that you may not have seen. “What would happen if none of us voted come election time”? Would that mean they are all out of office ?

      • Scott Day says

        Hi Bryan,
        I think it is more to this than just the media. I think it has to do with the dummying down of the American people and the use of media to control them. Also it has to do with what they learned in school as to them not being able to make an informed decision. I have told my wife when we decide to have children they will be born here but not educated here. I feel we are educating people here to be ignorant. Educated people make educated decisions! And people wonder what happened to America’s competitive edge look at what our government schools (formerly know as public schools) turn out, non-thinking, welfare automatons.

  35. Papa Duck says

    Robert,

    Really? What do you do, spend all your time looking on the internet for doomsayer sites? It seems to me thats what you are doing. Like Ricardo said above, How do you know? You have no idea what will happen, just like the rest of us.

  36. Norman Sison says

    Hi, Bob. It’s heartening to hear others say that we’re finally back on the road. But the Philippines and US crossing paths economically? Doubt it, and I hope not because I have tons of relatives and friends there. It’s practically my second country.

    But I definitely see the Philippines finally recovering from the wreckage wrought by Ferdinand Marcos. We’ve never fully recovered from that period yet. All the poverty and the culture of corruption that we see right now are products of that dictatorship. Cheers.

    • says

      Hi Norman – I also hope that the US weathers the storm and gets back to where it belongs… but I also see a lot of potholes in the road ahead for the USA. We shall see how things develop!

  37. DINE says

    I have lived in the USA for a long time and learn to love the country as my own. I owe the country what I become and will never forget that. I hate to see what I see. I can’t only blame the government officials but also all the people who has no balls to say no more to all what is happening …all the extravagance and abuses of government funds. In my type of career I see a lot of people who wants service and freebees for nothing!!!!!! I am talking about ordinary American people!!!Nobody will be denied of drugs, nobody will be denied of service (even if you know they are just there because they want some drugs) ……test here…test there…….We are afraid to deny them because we can be liable.We are afraid to say our opinion because we can be fired for telling the truth.The employer will fire you in a heartbeat if you say something to desatisfy their customer. Really I am so disgusted of what is happening. This has to stop….who will pay for all of this. I can see that all our retirement funds will be gone soon…Sometimes I just want to scream when I see how a lot of people are patronizing the welfare system in the country. They know how to milk and manipulate the system to their advantage. Can you imagine if everyone will do this? The country will be bancrupt before we know it.

    • says

      Hi Dine – I see and understand what you are saying. Everybody wants a handout. In fact, people think that it is their RIGHT to get free assistance from the government, which did not used to be the case. It’s a sad thing to see the direction that the country is going! Good luck to you, Dine!

  38. Robert says

    Bank Of America shares just lost 33% since the beginning of August 2011.
    To be on the safe side anyone who is banking with them should get their money out ASAP !!!!
    Something BIG is going on behind the closed doors.

    • says

      Indeed, Robert. B of A is experiencing problems due to it’s Countrywide Mortgage subsidiary, which is still bleeding from bad mortgages. Almost all of the banking sector has been nosediving in the past week or so, but B of A is by far the worst.

  39. Robert says

    Sorry to re-post on the same subject but judging from what I see on stock market charts of financial institutions (Canada and USA) I can confidently say that we are heading into the wrong direction.

    A few years back I watched Nortel (NT), a telecommunications giant, going down the toilet bowl.
    The present day charts of financial institutions have the same early stage pattern.
    It took Nortel 5 years before it went totally bankrupt. It was a slow and painful process.

    • says

      Hi Robert – At this point, I don’t think that there can be any doubt that the US economy, and most of the world, is headed in the wrong direction. It seems like almost daily we hear about another European country in dire straights… right now France is the latest member of the club. Things are going to get much worse, I’m afraid.

  40. Robert says

    The whole financial sector is in break-down mode as of the initial 16th of May 2011. That was the date that Geithner has given us a few months earlier.
    He predicted that we will need to raise the debt ceiling by 16th of May 2011 and the markets were driven by that particular date, therefore the break down was widely expected and anticipated in May but some of the weakest companies like BAC got also clubbered as of 2nd of August as well.

  41. says

    So we know things are bad. We say we need leadership. I say we need term limits, yeah I know, never going to happen.

    So we cut spending and hurt growth.
    We raise taxes and hurt growth.

    Growth is the most essential element of an economy based on capitalism and the US still is.

    So I ask, what is the right path? The only way we are going to get leadership is if we mass replace the leaders. We wont do that because we like our pork, we don’t want the other states to have any but we re-elect because we know that having seniority in congress means power and it means more pork for our state.

    The problem is not our leadership, it is us. Okay, its the leadership but they are doing exactly what we want them to do. Everything a politician does in public is done with how will the effect my chances of being re-elected.

    I don’t believe the USA is on an irretrievable downward spiral. Though I fear that there will need to be a devastating catastrophe to get our attention. It could be and economic one or it could be terrorism. Iran is watching, waiting for its chance to strike us. Or it could be a depression, some severe to stop the attacks we are doing on each other.

    • says

      Hi Rusty – Like you, I do not believe that the US in in an irretrievable down-spin….. although I do think it is close. Things can still be turned around, but if it is allowed to go on much longer, the point of no return may be approaching, IMHO. Like you say, it may take some catastrophic event to even make the leaders consider changes and cooperation. It makes me sad!

  42. Robert says

    This politician Gov. Rick Perry thinks that the next presidential elections in 2012 will be business as usual. Money is no problem for him!

    It will be hard to change anything, the political money machine is very powerful.
    However, at the same time I am worried that drastic political change may precipitate us into real deep trouble. So, change or no change, whatever happens it will not be good.

    Read this.
    http://www.nytimes.com/2011/08/13/us/politics/13donate.html?_r=1&hp

  43. ROBERT D says

    Guys, big business runs this country, always has and always will. The politicians are pimps for big business they run for office on a given platform but once elected their agenda changes because they know who feeds their wallet.
    The so-called president elect has virtually no power over big business and if he does does not do as told will be gone in a heartbeat. Sounds like a bad story but in effect its reality, in the 50 and 60’s the unions controlled the country and the unions were American people. Big business did everything possible to break the powerful unions and the American Middle Class. Today in America there is no Middle Class, we have the rich and we have those who are working and the rest is poor. So you ask the question, what can be done about the tailspin we are in, the answer is quite simple but it will take a revolution by the American people to stand up and say enough is enough and put this country back into the hands of the American people……jus like in 1776……taxation without REAL representation, INCOME TAX that is against the constitution!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Current ye@r *