PhPeso-US Dollar exchange rate is 50:1, the lowest in eleven years.
Our gross international reserve is US $80.7-B, the lowest in seven months (enough to cover imports for eight months).
We are beginning to feel the ill effects of a grossly devalued peso (higher costs of imports and foreign debt payments).
Dutertenomics' Keynesian "stimulus spending" strategy ("golden age of infrastructure") is based on aggressive domestic and foreign borrowings.
If it is not properly managed and controlled and if it is tainted with lack of transparency and with corruption (crony capitalism, bureaucratic capitalism, lobbying, rent seeking, special interest groups, and the like), it would be highly "inflationary".
The true foundation of the strategy is "monetary expansionism".
"Monetary Expansionism" is the inordinate "creation of new fiat money", out of nothing, jointly by the Executive [budget proposal and fiscal policy] and by the Legislative [budget approval and constitutional "power of the purse"].
They do it by issuing government bonds, treasury bills and other kinds of "debt papers" (and their "derivatives") to domestic and foreign institutional lenders.
Increased money supply and currency devaluation always lead to Inflation (increased prices of goods and services, hiked consumer price Index, and exacerbated costs of living).
Inflation is confiscatory, disastrous and unconstitutional because it is actually a form of "hidden taxation without representation".
It is a burden unilaterally imposed by an "Interventionist Big Government" (the Executive, the Legislative and the National Treasurer) with the acquiescence of the "independent" Monetary Board (the equivalent of the Federal Reserve in America) and the Central Bank (Bangko Sentral ng Pilipinas).
The conspiracy victimizes the poor and the middle class.
Change scamming...
