Protect Yourself From Economic Downturn
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 & “some investments” it's because every time an economy is flooded by stimulus money – either by printing, borrowings or altering the bank's reserve ratio, your salary, savings and/or investments (in some asset class) are shrinking by value. Meaning, if you can buy a hundred bunch of something from your monthly salary before, now it can never be a hundred. These stimulus thing that every governments on the planet is indulging has always been robbing their every citizen's wealth on the fly. And the funny thing, most of the citizens are partying when their government is telling them that the economy is growing and improving but unaware of the hurt it does in their own finances.
Another issue aside from shrinking your salary or asset stuffs, these initiatives will technically cause increase of the commodity prices in the market and in relation to these side effects, every government has always the prerogative to impose controls and regulations i.e. rate manipulation, wage and price controls and so on.. and so forth just to taper these side effects. The worse case when there will be too much of these debt, controls, manipulations – when the government has exhausted all their means and then they will resolve into oppression, intimidation and threat to its citizens.
When things gone wild and the situation is in the point of no return, every government will have no choice but to impose more of of these things heavily, then the unsustainable point comes: businesses cannot sustain any longer because of stiff regulations, taxes, controls and thus lead to credit defaults, foreclosures, unemployment then low production and then prices shall shoot up to the roof. There will be real asset auction on the streets – many of the investors call it “bloods in the streets” and thus leads to social chaos, revolt and give way to the new government – could be a new leader, or a new form of government. Thus, then an economic reboot.
This case scenario has always been happening throughout history – from the ancient Babylon, to the Roman Empire, to the Otoman, to the British, German, and just in our time - Zimbabwe and some from the EU i.e. Greece. Out from these empires and countries some were able to survive and still exist today and some are gone but their citizens - as human beings I believe have worked hard and fight for their welfare during the unprecedented time; where their government can no longer stand by them, suffering the consequence to the fullest and and yet survived.
Bottom line, no individual can prevent our government in doing these things unto us. Basically government exists only to suck up its people's wealth – a legal Robin Hood. However, as an individual there are means to cushion yourself from the devastating effect of government's recklessness.
Bottom line, right education will protect you from the consequence of these reckless regulations - learn how money created and how it works, how you can be milked with it as well as how can you prevent to became enslaved by it. Most of all, learn how to make money work for you.
Money is an incredible servant but a terrible master! You will not be worse off if you pursue to educate yourself financially.
Bottom line, right education will protect you from the consequence of these reckless regulations - learn how money created and how it works, how you can be milked with it as well as how can you prevent to became enslaved by it. Most of all, learn how to make money work for you.
Money is an incredible servant but a terrible master! You will not be worse off if you pursue to educate yourself financially.
For your freedom,
Bong Bungalan Jr.
Financial Literacy Advocate / Financial Advisor
http://beFinanciallyFreePinoy.blogspot.com
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