The Hilarious Reality of The Inevitable Philippine Economic Collapse

Hunter S Thompson - AvatarI have about given up on passing comments on some of the Facebook forums, because the ones I am dealing with really have such a poor grasp of reality where economics and how that works come into play. They do not understand that they have been habitually lied to and brainwashed up until now. Helping them is on a fine line between a waste of time and more wasted money. Until the people here wake to the fact that the last 30 or so years has been a giant scam, nothing will happen to fix this place.

The lies are here for all to see. In fact, I saw a meme the other day that said, “Some countries drive on the left side of the road. In the Philippines, you drive on what is left of the road”. That kind of sums up the infrastructural situation here.

  • The most expensive electricity.
  • Slowest and most expensive internet.
  • Unreliable phone services.
  • A complicated and difficult location to do business.
  • Worst traffic in the world.

And yet people here still defend the situation and insist on repeating what they did yesterday again today when they need a different outcome. Einstein talked about that, calling it, the first sign of insanity.

Show me where the infrastructure is that will bring this industrialization you speak of? You have no investments coming in and the local big business are busy investing overseas. These OFW remittances are not investment directed. Most of that goes into consumer spending. Condos are not factories that produce anything. I see no serious attempts to develop the rural communities. Their words are distortions and brainwash drivel pumped out by the oligarchy here. Believe me when I say this people. “You are part of the problem that is causing the issues of the Philippines.” Even the national debt is being hidden as investments when it quite clearly, is not. Study the data being put out by the various government departments here. It is contradictory and you call it growth. But where is the growth coming from? It is not from locally produced activity. And is all based on work done overseas by the OFW’s or BPO’s. None of which is local. So it is not Philippine growth. It is foreign growth. And who benefits from that? Not the Filipinos, because the discretionary spending of the people who use the BPO’s for services is overseas. The discretionary spending of OFW’s is overseas. Once again you display your complete lack of knowledge of reality.

Pinoy Call Center AgentSo before you once again miss the point. The people who use the BPO’s are living and working in a foreign country, and they are not in the Philippines. They spend their wages in their countries, and they do not spend it here, in the Philippines. Oh sure, a few BPO workers live and work here, but the tens of thousands of customers who call some number in the States, or wherever and have it picked up here, are not adding one centavo to the economy in the Philippines from their discretionary spending. Actually, I am considering leaving because I foresee the BPO industry itself totally imploding. I worked in the industry for a long time and its days are definitely numbered in its current from. Some of the biggest out sourcing companies are already working on newer technologies. While you people have all your eggs in one basket here.

  • No exports except people.
  • No commodities.
  • No factories.
  • No infrastructure.
  • No local growth except for a population which is under skilled and under educated.

You are delusional my friends. I have a worked in this field all my life, and what you see here is the biggest mess I have ever seen. Peoples homes for example, produces no growth. In fact rising property prices do the exact opposite over time. And although they may produce wealth on an individual basis, it is only when it is traded that it actually has any value to society. Why? Because the cost of owning a home is a liability. It costs you money to live in it. An asset is like a business where each day it trades, makes sales, gains revenues, and produces goods and services which are commodities society needs on a daily basis. They produce ongoing long term employment. They pay salaries, and create opportunity for flow on work which fuels a society to grow. Housing is a bubble. It only has value when you sell it. In your life time you may buy and sell a home 2 or three times. Some even less. That is a very narrow route to make money as it is so rare.

Pinoy Block HomesFurthermore it is not consumable, meaning that next week you will not need another house. I have yet to see any serious infrastructural developments that will produce the growth this country needs. And as for the FDI you brag about. Where is that? The Philippines is dead last in FDI in Asia – except perhaps for Norkor. But even it is starting to make noises about opening up – Vietnam, bombed into the stone age 40 years ago, is passing this country by, as with the rest of Asia. I hate to be the one to tell you, but you are sitting on a ticking time bomb folks. The financial situation here is really screaming as it stretches to the breaking point. I am just praying I can get my family out of here before it totally falls apart.

For your information, I was part of an economic reform group in a country overseas, so i do actually have some very sound knowledge about how this actually works. It is not just talk, I have actually done it. And what I see here is unsustainable without major overhaul.

It is a balloon waiting to burst. And the tip of the needle is already tickling the surface.

Lance

Just a regular “Joe” who decided the rat-race in the states was getting to ridiculous for words, and made the move to the Asian side of life.

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7 thoughts on “The Hilarious Reality of The Inevitable Philippine Economic Collapse

  1. Absolutely agree! I’m living here in one of the tourist areas in Visayas. I have watched how the government neglects building better infrastructure here that causes inconveniences to many tourists. Soon, this place will become a decaying tourist areas as the government and the locals have no any slightest idea on how to preserve the environment, waste management, build infrastructure and encourage businesses to generate more jobs for locals. What those people are good at is killing the goose to get more golden eggs. There is no long term planning and long term goals because they are just focus on what they can get today from tourists, resort owners and the island itself!

  2. Apparently you don’t know what you’re talking about. You have to brush up on Economics of which you have no knowledge off, (judging from your analysis)…. as they say “Don’t believe in half of what you read in the internet, take the rest with a grain of salt.”

    1. You’re one to be talking economics regarding the Philippines. When you don’t even live in the country. Thus… How the fuck would you know what’s even going on to begin with with? You enjoying your life there in Brainerd, Ks? If so. I recommend YOU do your homework on what the fuck is going on here. And if you’re a Filipino OFW. You just proved that you too, know things are shitty here. Otherwise, you NEVER would have left to get yourself your cushy little Farmer John brand job.

  3. Thank you for such an insightful article. Though I agree with most of your observations, I do not agree that a collapse is inevitable. Also your tone is bit arrogant which is common for foreigners like yourself who think they know everything just because they come from the west.

    Sure you may know about economics, but you clearly know nothing of the Filipinos and the Philippines. Living here has done nothing but make you sound like a twat who couldn’t make it in his own shitty country.

    In any case, if the economy does collapse, do you think 95 percent of the country will care? Sure the rich may forgo the luxury car upgrade, God forbid actually have to sell off some assets, but the vast majority will be just fine.

    You know why? Because for one we’re a resilient bunch. We’re a stubborn and stupid lot, but we survive. We’ve been ruled by mostly idiots starting with the Spanish and then taken up a notch by the Americans (we’re are still suffering from the sheer idiocy that you imparted on us– American style law and democracy), we have the worst traffic (in the cities), the slowest internet (which doesn’t stop us from breaking twitter records), no infrastructure/highest electricity (I.e. No nuclear plants, no fluoride in our drinking water), and not many factories (that further pollution, consumption and poor work conditions), not to mention the worst storms in the world. But we’ve weathered them and will continue to do so. Yes it’s a lot of suffering, but it’s this suffering that has made us tougher and more connected. So tough that we’re willing to live away from our families and our homes just so we can earn a little more and put family through school.

    But for the sake of argument, let’s say we’re not tough enough to weather Another (wouldn’t be the first in my lifetime and I’m just 30) economic collapse. You still forgot that the sheer majority of Filipinos are daily wage earners. The masses don’t any of the big companies. We don’t invest in index funds, or have portfolios. We don’t even keep that much in banks. We are mostly simple people, who are happy to have enough.

    So yes, you may be right about an economic collapse. But the great majority of us care very little. If anything an economic collapse would rid of us of the filth that you foreigners have brought to our lands. Take the foreign companies and factories away and I’ll even give you the government for free. We’ll just go back to the agricultural economy that we were and should always have been if not for Western “civilisation and progress”. You see we never really needed you guys or your money. We have all the rich food producing land we need to survive while you keep writing stuff like this as if our lives were ending when in truth, it’s only you that’s afraid. You’re afraid that your cushy Western life in the tropics is over. No more beautiful women, good beer, great beaches, and year round warm weather.

    I do sincerely want to thank you though. It’s this condescending tone foreigners take up with us talking about our own land that needs to be broadcast all over the Philippines, because it’s this kind of stuff that unites us. It’s these kinds of articles thay make me want to reply.

    With that, I hope I’ve helped you understand Filipinos a bit better. We’re sensitive and defensive when it comes to something we deeply love. Now, when did you say you were leaving?

    1. Thanks so much for your wonderfully childish insight there son. Too bad you’re dealing with foreigners who have lived AND worked here in the Ph. And for decades now. A few of us actually were here when Marcos was running the show. Too bad you popped out just about the time he bailed out on you. Which explains YOUR narrow minded, blame everyone else attitude towards the continual decline of your country. Resilient? Shit! You wouldn’t know true resilience if it came along and bit you on the ass.

      I sincerely do hope I am wrong about the total economic collapse of things around here. But the odds are against you all. Especially when there are individuals such as yourself. Admitting you’re completely aware of nearly everything that has gone or is going wrong in the Philippines. And yet talk of simply going back to being farmers. Well boy! Maybe the rest of your people don’t share your sympathy.

  4. There is actually a lot of truth in what youve said. Indeed this country has depended a lot with the so called foreign investments due to the governments neglect on what really has to be done. But its not all negetive. If indeed there will be a collapse then isnt it human nature to find other sources in order to survive. After marcos life was really dificult. We managed to live with just under 4 dollars a day. Internet and other technological advances are not really a necesity for us. Yes we love it but we do not really need it. Even electricity. A lot of towns in the philippines still does not have electricity but they still manage. Computers and smart phones? A lot here still dont know how to use them but they do survive. For transportation. This is why jeepneys and tricycles were invented and still exist. Wed rather be able to go to our destination in the cheapest possible way than own a car. Its just an asset the decreases in value overtime. I dont even consider owning one. Weve done it before, so its not impossible to do it again. Sir you may definitely know more about economics being an expert that you are but you dont know us.

  5. You’re right man. The Philippines is poop. Bem three times to Manila and mindanao. People are dumb and think us foreigners are stupid. They’re right !! Don’t go there !!

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