Poor performance of Philippine stock market unfairly blamed on Duterte govt by “economist” @JCPunongbayan

As usual aspiring PhD in “economics” JC Punongbayan issues a biased assessment of what is driving a downturn in Philippine stock indices of late. In his recent Rappler piece Why is the PH stock market among world’s worst? (prefixed by the word “analysis” in all caps just to make sure readers recognise it as such), Punongbayan burns easily 80 percent of the bandwidth allotted to his “analysis” on parroting textbook fodder to explain what the share market is all about. The 20 percent leaves only a sophomoric analysis based on, true to Punongbayan form, incomplete data.

Using the word “data” in an assessment of a Punongbayan “analysis” is, for that matter, being too kind. Punongbayan’s thesis in this piece is that capital is fleeing the Philippines’ equity markets because of perceptions created by the government of President Rodrigo Duterte of an unstable business environment. Our PhD candidate cites the usual suspects — the TRAIN law, its imagined contribution to high inflation, and the “overheating” risks he conjectures the infrastructure programs of this government would cause.

But citing “perception” to buttress an “analysis” of the share market is a double-edged sword. Punongbayan conveniently or, shall we say, selectively leaves out the other edge — the ill perceptions being created by the Yellowtard-led Opposition in the manner with which they go to lengths to conscript their cronies in Western Corporate Media to the cause of slandering their own country. In fact, I point out in my earlier article that The Philippine Opposition’s only REAL goal is to SABOTAGE the Philippine economy, and that this nefarious media blitz is but the tip of the iceberg of a vast negative perception campaign being mounted by the Yellowtards…

The underlying thing that is notable amidst all this is how the Yellowtards are working closely with elements of the Communist Party of the Philippines in opposing the government of Philippine President Rodrigo Duterte. Many of the labour protests covered by Media have a common denominator — they are all supported by the usual suspects: communist-infiltrated “activist” organisations that draw their supply of warm bodies and hollowheaded “idealists” from university campuses across the country. This is evident in the familiar red flags being waved amidst rallying crowds and protest marches, the familiar “US-[insert name of current president here] Dictatorship” slogans being chanted, and the same personalities who have made “careers” out of leading these rallies.

…all for the purpose of creating an environment that could enable another one of their ouster bids.

So, again, Punongbayan arrives at a conclusion that stands on only one leg (i.e. the biased view that it is only Duterte’s actions driving market behaviour), further highlighting the sort of slant that has no place in a true scientific analysis.

If Filipinos want to fight inflation, they should BOYCOTT Christmas

The enemy of high prices is surplus supply and weak demand. Consumers have power over the latter. Stop buying useless trinkets and demand drops, inventories soar, and prices collapse.

It is therefore easy and painless to bring traders and retailers to their knees and force them to update the outrageous price tags on their goods and services. Simply stop buying excessively.

Christmas is a good opportunity to implement this simple solution to galloping inflation. Retailers stock up massively and queue up orders in preparation for the much-awaited Christmas rush. This is the time for consumers to strike and exact their revenge. With inventories piling up, a surprise crash in demand will send retailers on a frenzy to dispose of this stock at rock-bottom prices.

Simply postponing Christmas spending to January and February will do the trick. The carrying cost of inventory and the massive amounts of working capital tied up in stocks will send retailers reeling. Consumers win double. They get to keep their Christmas bonuses unspent, avoid the stress of Christmas traffic, and get to buy their stuff at HUGE discounts on off-peak months.

Now is the time to Boycott Christmas and save the poor from preventable price inflation!

Yellowtards like @MrFrankBaraan are not qualified to make comments about inflation. Or ANYTHING about economics.

Famous Filipino singer Lea Salonga recently issued a sensible take on the anger Filipinos supposedly feel about high inflation rates being reported nowadays. This opinion was cited in an Inquirer report

“You gotta wonder, we’re angry about this, we have to see if it’s happened in previous administrations before and if we got angry then, too. And if it happened before and you didn’t get angry, you might have to examine why that is.”

Not surprisingly, the response coming from Yellowtards was typical — quick to slap a partisan label on Salonga’s response rather than apply a bit of brain to understanding what she was actually saying.

This sort of primitive thinking applied to what is an otherwise sensible opinion on the subject was exemplified in a tweet quoted in that report coming from prominent Yellowtard social media personality Francis Baraan IV…

Dear @MsLeaSalonga,

Is this a thinly veiled support for Marcos & Duterte? Aquino admin is the past.

THE PRESSING ISSUE TODAY IS THE CURRENT INFLATION RATE UNDER CURRENT ADMIN.

Whether or not we inflation rate was high during Aquino time, is now totally immaterial & irrelevant.

This despite much evidence that the inflation rate besetting the Philippine economy today is an outcome of many factors. This was highlighted in a previous Inquirer editorial Global Headwinds

It’s true that the government had been trying to reverse the path of inflation back to the original target of 2-4 percent for 2018. However, events beyond its control — the typhoon’s damage to agricultural crops, for instance — made it more difficult to bring down prices.

The article went on to describe the most sensible approach to combatting inflation…

Economists expect the impact of monetary measures being undertaken by the BSP (mainly raising interest rates to curb consumption by discouraging people to borrow and spend these on cars and other consumer items), and nonmonetary measures such as lifting restrictions on the importation of rice and other food items, to begin showing results by 2019 yet.

Indeed, this is consistent to what I proposed in my article The REAL solution to inflation lies in the rich and middle classes curbing NON-ESSENTIAL spending where I wrote…

If a large enough number of rich and upper middle class people do this, they could potentially exert downward pressure on prices. Eat less rice and prices of rice go down. Drive less and consume less fuel and they can bring fuel retailers to their knees. Turn off their air-conditioners and the grid will be awash with excess capacity. Buy less $200 sneakers, and less foreign currency will be horded by retail barons to pay for container-loads of products that are irrelevant to the poor.

So you see, the Yellowtards don’t really know anything about inflation. Or anything about economics for that matter. It is best that their quaint views on the subject be ignored.

Yellowtards OUTRAGED by Robredo’s message encouraging Filipinos to be self-reliant!

The Yellowtard community is experiencing internal strife after their “vice president” Leni Robredo reportedly urged Filipinos “to curb their spending habits, save and find ways to earn money”.

The Manila Bulletin report cited how Robredo encouraged Filipinos to take responsibility for their own wellbeing and take initiative to find ways to respond to inflation rather than overly rely on others. “Now that the prices of almost all [commodities] are high, we really need to save up. Don’t spend unless needed,” Robredo said in Tagalog.

Robredo also advised the public to find other means to earn money. “Maghanap talaga ng ibang paraan para maghanap-buhay (Look for more sources of livelihood),” she said. For instance, she urged those who have means and resources to plant fruits and vegetables. “Iyong pagtatanim, malaking bagay iyong pagtatanim (Planting is a big help),” she added, citing that in Zamboanga, some people are able to eat because of the vegetables and fruits they have planted and harvested on their own.

This is actually good advise. So it is therefore strange that some Yellowtards are outraged by what Robredo said. It seems that the fallout from Robredo’s statement within the bloc was so bad that eminent Yellowtard lawyer Jego Ragragio was moved to apologise on her behalf…

Leni was asked a question. She answered it.

Her answer sucked.

Is it the end of the world? Is Leni cancelledt?

No, of course not.

It goes to show that self-reliance is a four letter word for most Yellowtards.

You need to understand economics to discuss “inflation” intelligently

Inflation is an economic phenomenon that is an outcome of cause-and-effect. And, unfortunately, it contributes to the expense line of the poverty equation — higher prices result in weaker purchasing power. What this means for the average consumer is that she will simply need to find ways to make more money to make ends meet. The only way to deal with inflation is to stay ahead of it. And this means increasing income.

Unfortunately, wages don’t go up on a prayer. They are subject to the law of supply-and-demand. This is ultimately what sets labour rates just like the prices of any other commodity in a free market. When jobs are abundant and labour is scarce, wages go up. When jobs are scarce and labour is abundant wages go down.

Add the hard reality that if you spend more than what you make over the long term you progressively get poorer, not richer. You really can’t work around that simple arithmetic of poverty. Filipinos have both failed to stay ahead of inflation or, for many more, have simply failed to catch up with it. This is why the Philippines remains a poor country.

To be fair, staying poor is easy. Getting rich is hard. If getting rich was easy, there’d be a lot more rich people than poor people. It takes smarts to beat poverty and it takes exceptional skills to become wealthy. And that’s the reason the poor outnumber the rich.

The short of it is that Filipinos need to get a bit more clever if they aspire to prosper. Whining about inflation and praying for money simply won’t get them there.