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Peso appreciation

Just in case that you’re living under a rock or something, the U.S. economy is in a slump. And it seems the world is fascinated by the Euro and Renminbi (China) by and its strength. The Renminbi is pegged to the dollar and its currently undervalued. It seems to be that the dollar is no longer the preference as the world’s reserve currency. It’s the Euro, Clifford Bennett of Sonray Capital (Bloomberg Video).

Even though some may like the Euro, some also like the Renminbi or the Yuan. For example you can hear Jim Rogers of chairman of Beeland Interests Inc. talks about China (Windows Media Audio) and how he has a baby girl who is American Citizen, but does not have an American bank account and how he has hired a Chinese nanny so her daughter could learn Chinese for her own future benefit. He also has started to shift his assets out of the Dollar and into the Yuan (or video).

It’s interesting to see that the Canadian dollar is now strong, if not stronger (47 year high) than the U.S. dollar right now.

Ben Bernanke (U.S. Chairman of the Federal Reserve) will more likely devalue the dollar by printing more money out of the Federal Reserve.

The Philippine Peso
Even the Philippine Peso is getting stronger against the dollar. Citigroup even sees that the Peso would hover around the P42.50 against the dollar by the years end.

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Popularity: 29% [?]

Comments (1) Posted on Tuesday, October 30th, 2007

Related Post:
Filipinos are Optimistic says AXA
Indiachinaphiloptimisticing

ING Group, a financial institution base in the Netherlands, concluded that India, China, Malaysia, and the Philippines are bullish about the next quarter.

83% investors in China,
75% inverstors in India,
69% investors in the Philippines,

Believes that their investments will be as strong in the next quarter.

While other countries like Australia, Hong Kong, Japan and Singapore are more conservative about their outlook.
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Popularity: 16% [?]

Comments (1) Posted on Wednesday, October 17th, 2007

To think that the Philippines would suspend the ZTE deal with China is pretty interesting by itself. But this is not the only deal that has been scrapped. This also includes two farm deals with China. Under the said agreement, according to report, this would have allowed Chinese companies to till the land so the produce could be exported to China.

Currently the Philippines is not really known to say “No” to such deals. But it is refreshing to see that the Philippines is now trying (at least) to stand up on it’s own.

There’s another project that I would like to mention, it’s the Cyber Education Project, there are several public school teachers and politicians asking the Department of Education to suspend the deal. It is true if the project is done incorrectly the internet would be a distraction to students. To cancel the project completely, it is hindsight which will affect more in the long run. You have to invest in technology, to be more efficient. And you have to invest in people to be able to have the resource to drive the economy.

Currently what they can do is to retrain math teachers on how to teach math. See Scott Flansburg (Quicktime Video) or Mike Byster (below) or even the ancient way Vedic Math

Popularity: 14% [?]

Comments (1) Posted on Wednesday, September 26th, 2007

The Chinese immigrants to the Philippines. See also Puzzling inward migration in the Philippines

Paradox for Philippines as Chinese set up shop
By Roel Landingin
Source: Financial Times

She hardly speaks any English or Tagalog but that does not stop the white-haired grandmother from China’s southern Fujian province from running her clothes store in Divisoria, Manila’s bargain shopping centre. She has three Filipina assistants and she haggles with customers via a calculator.

Like many of the shop- owners in the “168” mall – which, in Cantonese, sounds like “prosperity all the way” – the grandmother is a recent arrival from China and part of a new wave of immigrants who have arrived in the Philippines.

See the slideshow: Asia immigration: Launch slideshow  

The woman refuses to give her name but says she landed in Manila in 2002 from the southern city of Shishi with her son and his wife, who were escaping China’s one-child policy. The couple had a second child in the Philippines and plan to eventually return to Fujian, where the husband runs a clothing factory. Another son and his wife followed for the same reason and are awaiting the birth of their second child. The clothes store was set up to generate an income while they prepare their return to China.

The family are part of a wave of immigrants leaving China even as rapid economic growth is transforming the world’s most populous nation. Most head to the US, Canada and other rich western countries, often as illegal aliens. But each year thousands also seek to make their fortunes in a middle­-income country growing only half as fast as China.

The trend has created an immigration paradox. The Philippines, perhaps best-known in recent years for its outgoing migrants, has become a destination for immigrants in its own right.

The new Chinese arrivals are drawn by a combination of weak law enforcement and huge fortunes to be made selling cheap Chinese goods to a swelling Filipino middle class. Feeding the growth of that middle class is the one in 10 of the country’s 86m people who are working abroad and their remittances, which reached $12.8bn (€9.25bn, £6.2bn) last year and have helped to drive consumer spending and economic growth.

According to Teresita Ang-See, an expert on Chinese in the Philippines, there are 80,000-100,000 illegal or overstaying Chinese nationals in the country, roughly a tenth of the million or so ethnic Chinese living in the Philippines. The latest influx has come in part because of Manila’s move in 2005 to liberalise entry procedures for Chinese tourists and investors, a move that helped triple the number of Chinese visitors to 133,000 last year.

But their growing presence in the Philippines is resented by many Chinese-Filipinos who have worked hard to assimilate. Many local Chinese consider the recent arrivals unfair competitors in business and fret that they could stir up resentment of the existing Chinese minority.

The Chinese-language press in Manila is full of bitter exchanges between the new and old immigrants. “Although the new immigrants appear to be better educated, they are considered more uncivilised, uncouth and ill-mannered,” says Go Bon Juan, director for research at Kaisa (Unity), a group promoting links between the local Chinese and Filipinos. “Even young students in Chinese-language schools tend to dissociate themselves from classmates who are newcomers.”

The resentment is even more pronounced among businessmen, in part because the new arrivals have a “tendency to be brash and pushy in their business transactions”, says Mr Go.

Many are drawn to illicit activities such as smuggling and drugs, he says. But they also stand accused of violating the law in more benign ways. Filipino law prohibits non-citizens from retailing but the rules are openly violated by new Chinese immigrants, whereas previous generations would often simply register businesses in the name of Filipino spouses or associates.

There are also questions about how long the new migrants want to stay. Immigration officials say some recent arrivals from China are using the Philippines as a transit point for entry to western countries using fake documents. According to the Bureau of Immigration, eight in 10 of the foreign nationals now caught attempting to enter the US illegally on flights from Manila are mainland Chinese.

“The Chinese come here as legitimate tourists or investors but try to leave for the US or Canada using forged passports or visas,” says Danilo Almeda, an immigration spokesman. But “the illegal scheme hurts the Philippines’ image and makes life harder for overseas Filipinos who have to face extra scrutiny from immigration officials all over the world”, he adds.

Popularity: 13% [?]

Comments (0) Posted on Tuesday, September 25th, 2007

This was written back in 2002 in the Inquirer, but it still holds true today especially to the new Chinese immigrants to the country. An article about the Chinese will be also be posted tomorrow.

Puzzling inward migration to RP
By Raul Palabrica

IF the recent survey finding of Pulse Asia is to be believed, 19 percent of Filipinos will, if given the opportunity, emigrate elsewhere because of unfavorable living conditions in the country. At the top of the survey respondents’ grievance list is their frustration with the workings of the existing political system. A seemingly unmanageable peace and order problem, economic hardships and government inefficiency add to the dissatisfaction. But as hundreds of Filipinos fly out daily to places where they think they can earn a living or start a new life, scores of Korean and Chinese nationals have been entering the country for the same reasons that motivate our countrymen to leave.

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Popularity: 15% [?]

Comments (0) Posted on Tuesday, September 25th, 2007

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