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Monetary Reform Discussion |
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[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index] MONETARY: Phil. Gov. Borrowing to Debt Finance To Keep Up The Illusion of Growth!
BANKRUPT PHILIPPINE GOVERNMENT KEEPS ON BORROWING FROM DEBT FINANCE TO KEEP UP THE ILLUSION By Eric V. Encina With no option under pestiferous debt finance, the Philippine Government has resumed and returned to its borrowing addiction to foreign and international dirty money markets, to those mammoth, dinosaurian and mysterious financial institutions with their economic hitmen who stand by ready to do and cause deceptions, confusions, bribery and intimidation. The Government is now
again set to borrow its remaining urgent financial requirements for 2006 as the only known option immediately after President Gloria Macapagal-Arroyo has laid down her administration’s fiscal needs and spending priorities in her 6th STATE OF THE NATION ADDRESS. Philippine Government has to borrow again this year 2006 to foreign banks like Citigroup, Deutschebank, and JP Morgan as underwriters/agents that would guarantee the sale of bonds of around US$750 Million or IOUs in an auction of three-year DEBT PAPERS that would,
accordingly, mature in 25 and 30 years (that is, another long years of debt bondage of debt-based protocols for the Philippines). Vicious Cycles of Deficits: The main purpose
of another foreign borrowings this year 2006 is to finance or is earmarked for plugging a budget deficit now seen to be reaching to P125 BILLION. Deficit continues to be in the vicious cycle as long as the annual budget priority is the PAYMENT OF DEBT SERVICE to these venturesome and rapacious bankers with their economic hitmen of the present outmoded financial-economic system based on savage cruelty of debt whose pestiferousness, sinuousness, fallacies, atrociousness, corruptions and inherent instabilities have disastrously siphoned out of the Philippine resources and economy every year just to PAY THE SKYROCKETING INTEREST. Of which the country is in heavy penalty of economic darkness , and now reeling under the most traumatic, heartbreaking, nerve-wracking financial-economic depression and economic collapse of millions of terribly
hard-pressed millions of poor Filipinos in the Philippine archipelago. Most local communities and economies are dangerously sinking into total stagnation and paralysis. With the foreign interest rates that are set between 7.56 and 7.62 in US$ rate, for the 25-year and between 7.86 and 7.91 same as in US$ rate for the DEBT PAPERS OR ARRANGEMENTS for the 30-year maturities, the Philippine Government has about US$900 Million to US$1 Billion about to borrow or already under negotiations now, this year. Last January 5, 2006, the government borrowed
US$1.5 Billion from the foreign banks through the sale of 25-year dollar-denominated bonds and US$500 Million in 10-year euro-denominated IOUs. The Philippine Government earlier has set a US$3.1 Billion foreign commercial borrowing program for 2006 but this excludes some US$900 Million in planned borrowings that would be borrowed from INTERNATIONAL DONOR AGENCIES like ODA or Overseas Development Aid based in It is a kind of illusion for the Philippine Government to kick-start again the economy based on debt finance that causes endless and vicious cycles of deficits, of inflationary pressures and dreadful poverty to millions of Filipinos. Most of the infrastructure projects will be continually financed by loans and to be undertaken by the private sectors with protocols to debt finance. And yet the agents of economic lies in the government who sell false hopes declared that spending program would not alter the government’s target to balance the national budget 2008. Can it be done under debt finance? STUPID REALLY! The AGENTS OF LIES said the government has money to finance infrastructures but what Filipinos do not know is that, FUNDING comes from heavy interest-bearing loans and consequently from continuing increase and enforcement of NEW TAXES following the 12% Expanded Value Tax approved in finality by the Philippine Supreme Court, and more taxes are coming to finance such infrastructure projects for 5 years. No doubt, the present infrastructure projects of the Government in the illusion to keep up economic growth
and boost the economy being financed by or to be financed by more foreign borrowings at US$ interest rates, would certainly impossible to attain the target of a balanced budget by 2008. We just need to apply the mathematical common sense to know why. STATE OF THE NATION ADDRESS (SONA) of Philippine President Gloria Macapagal-Arroyo on Under debt-based financed, the SONA---its plans, programmes and ambitions through the President is only about PEDDLING OF FALSE HOPES to financially-economically bereft and distraught Filipinos in the countryside. Actually Filipino citizens do no longer believe about SONA. And for certain, undoubtedly, the proposed development programmes could trigger more expensive US$ borrowings from foreign, international and Philippine Peso borrowings to private-commercial domestic lending institutions that the Government could not afford to pay interest charges. Imposition of additional taxes is certainly and
dangerously intolerable and even condemnable when Filipinos are already in desperate poverty as a nation consumed by damned system of usury. Agricultural and Farming Problems: The SONA proposals are misleading the people with the promises of development, progress and peace that cannot be possible under debt finance cycles. Agricultural problems and or farming problems of millions of poor Filipino farming families in their impoverished communities and villages and their abyss of
poverty and miseries are not taken seriously or addressed nor having any plans of provision to aid the farmers in the countryside. P1.4 TRILLION 2007 BUDGET: The Philippine will submit the 2007 proposed fiscal budget of P1.4 Trillion this August 2006, and to realize this budget, the Philippine government would most
likely increase, as scheduled, of its tremendous foreign borrowings to cover increased budget deficits, interest payments and increased spending in the public infrastructures –which likely full of scams and corruptions. DEBT! DEBT to DEATH! What we need Debt-Free Money Creation means LIFE! Eric V. Encina Filipino Alternative Solutions For Sustainable Survival Movement c/o Lito Alhambra Old House, Homesite, km2, Brgy. Lawa-an, Tel. No. 0063 36 6216-454
Talk is cheap. Use Yahoo! Messenger to make PC-to-Phone calls. Great rates starting at 1¢/min.
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