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Why Does Bongbong Marcos Blames FVR for the Loss of Gasoline Price Control?

gasoline price


By: Elena Grace Flores

With the fluctuations in gasoline price today, Bongbong Marcos is expressing his support to return the Oil Price Stabilization Fund. In an interview with Erwin Tulfo, he said that it would be wise to consider the OPSF with the rising oil prices. His father, Ferdinand Marcos, set up the OPSF to protect the consumers from the fluctuations of oil prices. However, he also adds that during Ramos’ administration, it was scrapped in favor of the deregulation of the oil industry.



YouTube video by GMA News

[VIDEO]: Papalo na ng mahigit P60 ang kada litro ng gasolina bukas kapag ipinatupad na ang malakihang taas-presyo ng ilang kumpanya ng langis. ‘Yan na po ang pinakamahal na presyo ng gasolina sa loob ng halos isang dekada. Pero alam niyo ba na sa ibang bahagi ng Pilipinas, ngayon pa lang, nasa P71 na ang gasolina?


OPSF Method

As Bongbong Marcos explains, the OPSF works by taking a portion of the sales of the top three oil companies, Shell, Caltex, as well as the government-owned Petron. In an event of a price hike, the fund can serve as a buffer.

Gasoline Price Buffer Fund

With a buffer fund, BBM states that this will protect the Filipinos from the effects of rising oil prices. Because the fund will be able to cushion the increase.


Cushioning Inflation

He also states that ultimately this would cushion inflation as well. Because a higher price in oil almost immediately translates to a higher price of commodities. However, sadly wherein there is a decrease in oil price, it doesn’t automatically translate to a lower price of commodities.

Confusion on Rising and Falling Oil Prices

He finds it odd that when the oil prices go down, unlike when it goes up, the prices of goods don’t follow suit. He understands that with everything using up crude oil, rising oil prices would certainly affect the prices of goods. However, why is it that when the prices for oil go down, the prices for goods just stay stuck.



Insights from the Opposition

The main argument against the OPSF Fund is that back then the oil companies formed a cartel and dictated the prices. Setting up the OPSF again may mean going back to the era where oil prices are fixed.


Bleeding Ramos Administration

With all of the bleeding in the finances of the Philippines in President Ramos’ time, His economic and finance ministers had enough. This led to President Ramos signing the R.A. 8479 or the “Downstream Oil Industry Deregulation Act of 1998”.  The purpose of the said act was to ensure a competitive market in the oil industry by deregulating it. Furthermore, the act also promotes the entry of new participants.

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Bongbong Marcos Explains Leadership Changes for the Economy and Technology Advancement

Economy





By: Elena Grace Flores

It’s the economy, stupid” is a slight variation of the phrase “The economy, stupid”, which James Carville had coined as a campaign strategist of Bill Clinton‘s successful 1992 presidential campaign against sitting president George H. W. Bush. Former President Gloria Macapagal-Arroyo’s version was telling Pnoy; It’s the economy, student. Meanwhile, Bongbong Marcos talks about the track record of now Speaker Arroyo when it comes to the infrastructure of the economy when she was President. He said that such leadership change including Senator Tito’s Sotto’s takeover as the Senate President is crucial for the progress of the country.





Youtube video by; Bongbong Marcos

[VIDEO]: It turns out Clinton was right when he said, “It’s the economy, stupid.”




The First Female Speaker of the House

The anti-Arroyo faction must be outraged but former President Gloria Macapagal-Arroyo wins the house speakership post. She is the first female ever to be Speaker of the Philippines’ House of Representatives. The courageous woman is also the only former Philippine President to become speaker. While it is the first time in over a decade that in the middle of a President’s term the Speaker is replaced, Marcos is confident with Arroyo. There is no leader who has a greater sense of the economy as the former President, he said.




A Long Planned Transfer of Power

Without hesitation, Pimentel had formally nominated Sotto as his successor. Sotto now serves as the second Senate president of the 17th Congress. The transfer of power had long been planned, Pimentel says as he resigned from the position. It is done so peacefully and willingly.

The Impact of AI on the Economy

With the development of artificial intelligence comes the elimination of some jobs. But surely with this technology, we can witness the evolution of most professional landscapes. As research predicts, 1.8 million jobs will be gone by 2020, but 2.3 million jobs would be created. While the AI technology will lead to the extinction of repetitive jobs, we can see it morph and enhance creative jobs. These things should be considered while looking at the economy, Marcos says.









The Depreciation of Peso

The peso is weakening. With weak Philippine trade numbers as well as expectations of an interest rate increase in the US, the peso remains weak against the dollar. This according to Jonathan Ravelas, Chief Market Strategist of BDO Unibank Inc. This will certainly work to the benefit of exporters and dollar earners, as well as the families of OFWs, Cid Terosa, Dean of the University of Asia and the Pacific School of Economics said. Arroyo still worries however of its future implications, Marcos says. The depreciation of the Peso Value on the flip side may spur inflation. That can negatively impact the purchasing power of the common Filipino.




Marcos-Friendly Leadership

The electoral protest of Bongbong Marcos against VP Leni Robredo may still be uncertain. But now not only the President is Marcos-friendly. The heads of the Congress and the Senate are now on the same boat.  The current line of succession to the office of the President of the Philippines is specified by the 1987 Constitution. During the Marcos era, the line of succession would be amended to include a newly created cabinet or ministerial offices. The line of presidential succession follows the order of Vice President, President of the Senate and the Speaker of the House of Representatives. In case of death, permanent disability, or inability of these officials, Congress shall, by law, provide for the manner of selection of the person who is to act as President until a President or Vice President shall have qualified.

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Dangerous Perception that World Economy is Improving

welcome
By: Elena Grace Flores

RSA-The Economist Debate
RSA-The Economist Debate (Photo credit: cybaea)

The world economy has been filled with positive reports and forecasts that inflation rate is declining and that foreign investments are coming in and so on. Yet despite of these positive thinking efforts, the expectations still fall short – to the verge that positivity itself has now become dangerous. Read this alarming news:

 

Why optimism may be bad news

By: The Economist

ALMOST every year since the end of the financial crisis has started with rosy expectations among American forecasters, and this one is no different. Stockmarkets are buoyant, consumer confidence is improving, and economic seers are raising their growth forecasts for 2014. America’s S&P 500 share index is at a record high, after rising 30% in 2013—the biggest annual gain in almost two decades. Powered by America, global growth of close to 4%, on a purchasing-power-parity basis, seems possible. That would be nearly a full percentage point faster than 2013, and the best showing for several years.  http://www.economist.com/news/leaders/21592613-good-news-about-global-growth-risks-pushing-interest-rates-up-and-politicians-appetite-reform


This is so because the government’s tasks in powerful countries are comprehensively long – but politicians would prioritize tasks that have impacts on their votes rather than create long-term reforms. This is why in America for example, their unemployment and disability issues are still big problems. Same as in the U.K. with the extremity of the rise in house pricing. European countries are still buried in debts. For sure, each individual regardless of your citizenship is feeling this financial strains!

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