Protect Yourself From Economic Downturn
On June 19, 2013 issue of the Philippine Inquirer – on it's Business Section's Headline says “Gov't Plans Inflation-Linked Bonds”. The news further said that aside from issuing this type of bond, the government also plan to borrow USD 2Billion from overseas:50% from Multilateral Lenders like the World Bank and the other half through Global Bond Issuance. All of these plans, according to that report will cover the 10th of the government's funding needs. Another point that these things have to be is to take advantage of the credit rating upgrade which means the Philippine government will enjoy low interest rate of its borrowings. This is pretty good for the government but subtly bad to you and me as an individual. Upfront, these initiatives will of course create jobs, finance government projects such as farm to market roads, buildings, bridges, etc,... However, unfamiliar, misunderstood side effects will fall upon individuals who already have jobs, savings &