BSP vows to act on double-digit inflation

Agence France-Presse

MANILA - The governor of the Philippine central bank Amando Tetangco said Wednesday it was ready to take “necessary action” with inflation widely expected to have hit double-digits last month.

Ahead of the release Friday of June inflation data, he said “inflation will reach double-digits beginning in June” and peak within the next three months.

He said it would then settle to an average of 7.0-9.0 percent, which is above the government’s target.

The bank last month hiked key interest rates by 25 basis points — to 5.25 percent for the overnight borrowing rate and to 7.25 percent for the overnight lending rate — after inflation hit a nine-year high of 9.6 percent in May.

Tetangco also said “the Monetary Board believes that there are already indications that supply-driven pressures are beginning to feed into demand.”

The central bank “remains committed to pursuing the necessary monetary action to address the risks to inflation and inflation expectations and ensure the achievement of the central bank’s price stability objective,” he added.

The central bank expects 2009 inflation to ease to 4.0-6.0 percent.

“In the absence of persistent sharp surges in oil prices, base effects should produce lower inflation rates next year and beyond,” Tetangco said.

“Meanwhile, favourable projections for global and domestic agricultural output should help to stabilise food prices.

“The slowdown in global economic activity is also expected to contribute to moderating demand for oil and food products, which should enable an easing in imported commodity prices.”

Source: ABS-CBN News Online, http://www.abs-cbnnews.com/storypage.aspx?StoryId=123816

Russia’s New President Sees Larger Economic Role

 By CLIFFORD J. LEVY

Published: July 3, 2008

MOSCOW — Russia’s new president, Dmitri A. Medvedev, less swaggering than his predecessor but as touchy about criticism from abroad, said in an interview that an America in “essentially a depression” was in no position to lecture other countries on how to conduct their affairs.

As soaring oil revenues bolster the Russian economy and Kremlin confidence, Mr. Medvedev brushed aside American criticism of his country’s record on democracy and human rights. He also declared that a revived Russia had a right to assume a larger role in a world economic system that he suggested should no longer be dominated by the United States.

Mr. Medvedev made his comments in a meeting this week with a small group of foreign journalists a day after the American treasury secretary, Henry M. Paulson Jr., appealed in Moscow for Russian investment in the United States. The symbolism of the visit resonated here, in that only a decade had passed since the Russian economy was in shambles and the country was desperate for Western aid.

Mr. Medvedev seemed to be seeking in the interview to raise his profile before attending the Group of Eight meeting of industrialized nations next week in Japan. Mr. Medvedev heads Russia in tandem with his predecessor and mentor, Vladimir V. Putin, who is now prime minister and is still widely considered Russia’s preeminent leader.

In the interview, Mr. Medvedev was asked about a call by Senator John McCain, the presumptive Republican presidential nominee, to bar Russia from the Group of Eight because of its record on democracy. Mr. Medvedev, who easily won the presidential election in March after the Kremlin dismantled the opposition, responded that the question of democracy was irrelevant to the Group of Eight and, besides, the United States had more pressing matters to attend to.

“The Group of Eight exists not because someone likes or dislikes it, but because objectively, they are the biggest world economies and the most serious players from the foreign policy point of view,” Mr. Medvedev said. “Any attempts to put restrictions on anyone in this capacity will damage the entire world order.”

He added: “I am sure that any administration of the United States of America, if it wishes to succeed, among other things, in overcoming essentially a depression that exists in the American economic market, must conduct a pragmatic policy inside the country and abroad.”

Mr. Medvedev said world leaders should realize that the credit crunch and gathering global recession signaled that the worldwide economic architecture needed to be overhauled. He did not specify how this should be done, but indicated it should entail a reduction in the influence of the United States.

“It has to be improved, it has to be more up-to-date, better protected from risks, and it must not suffer from national egoism[cq], financial and economic egoism[cq], but must be more fair towards other countries — this is absolutely evident,” he said. “This system cannot be oriented towards only one country and only one currency.”

A former law professor who has spent much of his career as a behind-the-scenes bureaucrat, Mr. Medvedev demonstrated a wide-ranging knowledge of foreign and domestic issues, confidently answering questions for 90 minutes without notes and speaking in long paragraphs without stumbling. The president, who is 42, spoke only in Russian but did not need an interpreter to understand questions posed in English.

Mr. Medvedev provided no glimpses of disagreements on policies or strategy with Mr. Putin, though their stylistic differences were readily apparent. Whereas Mr. Putin occasionally responds to questions with blunt retorts or salty language, Mr. Medvedev tends to offer demurrals and then to engage in a kind of academic discussion of issues.

As he has many times in recent weeks, Mr. Medvedev championed his proposals to reduce corruption, which he acknowledges is endemic in Russia. He was then asked whether he believed that corruption could be beaten back considering that the country’s political system is dominated by a single party, Mr. Putin’s, United Russia.

“A system that was built on the idea that one party holds all the truths demonstrated its weakness 20 years ago,” Mr. Medvedev said. “It failed to cope with new challenges and ceased to exist. That’s why to ensure the competitive ability of our country on a global scale, we must make use of political competition, among other things. But it must be sensible. This is to say, competition, correctly built.”

Mr. Medvedev indicated the he would not involve himself in the case of Mikhail B. Khodorkovsky, the former oil oligarch and Putin opponent convicted of financial crimes and sent to a Siberian prison. The authorities have recently brought new charges against Mr. Khodorkovsky, while his lawyers have mounted a campaign for his release.

Some political analysts have described Mr. Medvedev as more liberal than Mr. Putin and others in the Kremlin, in part because Mr. Medvedev did not serve in the security services. (Mr. Putin is a former K.G.B. agent who was head of its successor agency, the F.S.B.)

Mr. Medvedev often says his background as a lawyer plays a crucial role in his world view, and when he was asked about his reputation, he returned to that theme. He said that when he was a student, he learned of the importance of the law, and of the right to private property. He said he also realized that there needed to be a struggle in Russia against what he has termed “legal nihilism.”

“For me, these are the ideas that I absorbed when I studied at university, as well as the value of human rights,” he said. “And in our country, they are based on the Constitution. Human rights and freedoms also must be defended unconditionally, and should be the priority of any government. It’s up to you as to how this set of values should be described.”

Asked about his political enemies, Mr. Medvedev conceded that some prominent people were disgruntled over his ascent, though he would not name them.

“I am positive that a certain number of politicians and a certain part of the population is not quite happy with the current configuration of power,” he said. “But this is what is called democracy.”

He added: “It would be ridiculous to name the destructive forces one by one. I am not an adherent of conspiracy theories. In real life, everything is so much simpler, if not banal.”

Source: The NY Times, http://www.nytimes.com/2008/07/03/world/europe/03medvedev.html?_r=1&hp&oref=slogin

RP economy to brake in ‘08 as exports weaken

Reuters 

Philippine economic growth is expected to slow this year, after hitting a three-decade peak in 2007, due to weaker exports as global demand slows and as private spending and investments dip, a Reuters quarterly poll showed.

Analysts expect government spending on social services and the rehabilitation of the country’s creaking infrastructure, however, to provide some support for growth this year, after the Philippines abandoned its plan to balance its 2008 budget for the first time in more than a decade.

Twelve economists had a median forecast of 5.1 percent growth for gross domestic product (GDP) this year, substantially slower than 7.3 percent in 2007.

The latest estimate is lower than the 5.8 percent forecast in a similar poll conducted in March and was also below the government’s estimate of 5.7-6.5 percent growth this year.

“Downside risks to growth have grown substantially, with net exports likely to be a bigger drag than previously anticipated and modest growth in private consumption,” said Radhika Rao, an economist at IDEAglobal.

Shipments of semiconductors and electronics parts, which dominate exports, are expected to be softer this year as demand from the Philippines’ main export market, the United States, remains tepid.

The central bank has shifted to a tightening policy bias from neutral on emerging signs of second-round effects from rising inflation, which hit a nine-year high of 9.6 percent in May and is likely to peak at 10-11 percent in the third quarter.

But the central bank is wary of raising rates too much as it could dampen economic growth. Analysts expect the central bank to raise rates by a further 50 basis points, taking the key overnight borrowing rate to 5.75 percent by the end of the year.

The poll forecast inflation of 8.2 percent in 2008.

Some analysts expect inflation to start easing as the government announced it would flood the market with rice stocks to dampen domestic prices during the lean harvest months of July to September.

“We’ll see a bit of an improvement coming through in the fourth quarter. We may indeed actually see it in the third quarter,” said Nicholas Bibby, regional economist at Barclays Capital in Singapore, referring to inflation.

The Philippine central bank said it expects inflation to reach double-digit levels starting in June, but sees a steady decline after the third quarter.

Source: http://www.abs-cbnnews.com/storypage.aspx?StoryId=123813

Pacquiao: I pitied him, I wanted to help Diaz

“I wanted to help him, I tried to sit him down or help him on his feet.”

This was what newly-minted World Boxing Council (WBC) lightweight king Manny Pacquiao tried to do after knocking down a badly-beaten David Diaz Sunday (in Manila).

In a phone interview via TV Patrol World, Pacquiao said he pitied the sight of Diaz, who was already a bloody mess by the end of the fight.

“His face was bloody, even his body. I pitied him. I wanted to help him, sit him down or help him on his feet. But the doctor said to allow him to lie on the canvass. So I went to my corner and prayed,” Pacquiao said in Filipino.

After Diaz got up, the new champion hugged the vanquished fighter and wished him well as the Filipino crowd at the Mandalay Bay and Resort Casino in Las Vegas loudly celebrated his victory.

More comfy at 135

Pacquiao said he is more comfortable fighting at 135 pounds (lightweight division) compared when he was still super featherweight.

“At 130 pounds, my body was pressured, so I was a bit weaker,” he said.

Sports analysts were earlier concerned about the effects of the added pounds to Pacquiao’s speed and punching power. His victory, however, erased these doubts.

“I followed my coach’s instructions. He told me not to go ‘toe-to-toe’, and that I should learn how to toy with my opponent, do some in-and-out boxing. I followed those instructions and we controlled the fight,” said Pacquiao.

When anchorman Ted Failon tried confirming if Pacquiao indeed earned $5 million in fighting Diaz, the boxing star laughed and said: “I’ll whisper it to you when we meet.”

Home on July 4

Pacquiao, meanwhile, said he will return to Manila on July 4.

“We’ll be leaving the US on July 2, which means we will be there on July 4,” he said.

He also promised to visit some of the victims of Typhoon Frank.

“When I get there, I will visit them, our kababayans who were hit by the storm. I’m already thinking of ways on how to help them,” he said.

Source: ABS-CBN News Online, http://www.abs-cbnnews.com/storypage.aspx?StoryId=123595 July 1, 2008 

Pirated Pacquiao vs Diaz DVDs selling briskly

Just an hour after the Manny Pacquiao-David Diaz championship bout in Las Vegas, pirated copies of the fight were being sold in the DVD market in Quiapo, Manila.

Vendors were selling the Pacquiao-Diaz DVDs for P35 a copy with complete packaging and nearly the same quality shown on television.

Reports gathered by ABS-CBN News said the footage was copied from pay-per-view cable TV.

And because the Pacquiao-Diaz bout was such a blockbuster fight, the DVDs are selling like hot cakes.

“Mabenta talaga, kahapon pa. Nauubos talaga dito sa amin (Sales have been good, since yesterday. We’re even running out of stock),” said one Quiapo vendor.

He added customers apparently never get tired of watching the fight again and again.

Customers, meanwhile, said they still want to buy the DVD even if they already know the outcome.

“Nakakabitin kasi pag sa TV e. May patalastas e… Dito tuloy-tuloy (We’re not satisfied watching it on TV.

There were TV ads. Here you can see the fight without cuts),” said Jay Advincula, a DVD customer.

Vendors also offer 15-in-1 Pacquiao DVDs for P50 each. The item contains the boxer’s past fights, and even his movies.

“Idol ko siya. Kaya ako bibili, para may remembrance (He’s my idol. I want to buy one for remembrance),” said Fely Pazziwagan, another DVD customer.

The DVD is riding on Pacquiao’s popularity boost after he defeated Diaz via technical knockout in the ninth round during their “Lethal combination” fight Sunday. With the win, the Filipino boxer became the new WBC lightweight champion of the world. - With a report from Willard Cheng, ABS-CBN

A colleague of mine shared something he heard from a seminar recently. He asked me:

“Do you know how much it takes to have the American dream?”

“No. How much?”

“$500,000 — $400K for a decent house, $50K for a nice ride, and another $50K for good eats. — $500,000.”

In my friend’s borrowed, pre-packaged logic, he made some sense. And he got me thinking. I felt happy that I can now have the American Dream, too, perhaps sooner than originally imagined.

But I also felt strangely disappointed. Somehow, the dream now so well defined did not inspire.

Is the American Dream, in fact, only worth $500K? Can the American Dream be so ordinary, so measurable, so finite that it can be reduced to a calculation of bought stuff?  

The part of me that’s been aching to finally buy a new car (after 11 years of using the same beat-up car), that’s been wanting to upgrade from a condo to a house, says yes.

A bigger part of me wants to hold out for something more — a dream more grand, more substantive. I saw “In Pursuit of Happyness” with Will Smith, and his dream was ultimately much bigger than a fat bank account.

There is a life I used to envision myself having while still in college and grad school. I wanted to be an agent of change: organize the unorganized, empower the unempowered, serve the underserved.

To a large extent, I’m doing these but not to the same degree and regularity that I first thought I would.

I originally fancied the work would take over my life; I mean, …every …breathing …moment.

Instead, I’ve had to hustle to have a couple of hours every quarter as a policy trainer. And I’ve had to piece together side jobs that allow me to feel fulfilled teaching young adults how to participate in community building, how to create a purpose-driven life.

So I ask myself: Self, is fulfillment overrated?

And for today, at least, I have no ready response, just a feeling. A feeling of being drained, frustrated. The tug war between life and work is draining, frustrating at times, and increasingly more noticeable.

Whether real or perceived, life used to be as lively, as filling as work, and vice versa. But as I get older and have to make career and lifestyle choices that all adults must make, I find life and work a bit less colorful.

Life, pala, is a shade of institutional beige, and paved with gray high-impact office carpeting.

Here’s the heart-breaker: I fear that I am likely to spend more of my life working to survive (make a living), than making a difference (i.e., be fulfilled). Fulfillment feeds the soul but not the bank account, after all.

As a Person of Color, as a Filipino American, I often find this constant need to balance the pull of selflessness and the pull of selfishness more pronounced, more intrusive.

Some days, I like to think the value of keeping the balance leads to fulfillment. Other days, I think the focus on fulfillment, on making a difference, is a juvenile pipe dream. After all, who needs me but me, and only me?    

Philosophizing on fulfillment is useless. Better, instead, to get back to work.

Int’l Red Cross seeks $8 million for typhoon aid to RP

Reuters

GENEVA - The International Federation of Red Cross and Red Crescent Societies appealed for 8.3 million Swiss francs ($8 million) on Thursday to provide clean water and shelter to survivors of Typhoon Frank (international codename Fengshen) in the Philippines.

The world’s largest disaster relief agency said the funds would help 400,000 vulnerable people over the next three months, with the main priority being prevention of water-borne diseases including malaria, measles and diarrheal diseases.

More than 106,000 homes were destroyed by last Saturday’s storm, which killed at least 180 people and left 435 missing, according to a Federation statement.

The death toll was expected to rise as divers retrieve bodies from the Princess of the Stars, a ferry which capsized off Sibuyan island with 865 passengers and crew on board.

The typhoon defied weather predictions and took an unforeseen path across the archipelago, leaving little time for many communities to prepare, according to Roger Bracke, head of the Federation’s delegation in the Philippines.

“On the island of Panay, thousands of families were caught by surprise as flood waters forced them into tree branches or onto the roofs of their homes,” he said.

Roughly 1 million people have been affected by the typhoon, according to the Federation.

…check out this link and find a seminar schedule for July - December 2008. Events are held in key US states, European cities, and of course, Philippine cities.

http://www.fmadigest.com/Database/seminars.html

Arroyo seeks long-term, hard investments from US firms

By PAOLO ROMERO
The Philippine Star

WASHINGTON (via PLDT) – President Arroyo urged American business leaders to put in hard and long-term investments in the Philippines and not just “quick buck” ventures that could weaken the economy.

In her address during cocktails with the US-ASEAN Business Council and the US Chamber of Commerce at the Willard Hotel along Pennsylvania Avenue, the President said that as an investment destination, the Philippines is a “good, long-term bet.”

“We don’t sell hype, no quick bucks, no false gains. Just strong fundamentals, good economic stewardship and excellent returns on your investment. We are the smart, prudent place to place your money,” Mrs. Arroyo said.

Last year, the Philippine economy registered its highest growth, “the peso is strong, approved investments doubled in the first quarter. Last year seven million jobs were created in seven years, while the government is close to balancing the budget.”

These are factors, she said, that will help the Philippines weather the economic storm.

She said some investors are attracted to opportunities to make a quick buck in a country “that is still to institutionalize good, sound fundamentals.”

“Too many quick buck investments coming at the same time can push a country’s inflation up, weaken its currency and force it to drastically cut spending on infrastructure,” Mrs. Arroyo said.

“Not the Philippines, we are on a permanent path to economic growth, stability and modernization. We are the best value in Asia,” she said.

“We are hopeful that we remain poised for growth in 2008 as well. Of course, the global clouds are clearly visible on the horizon and will impact on most nations. But we are confident that our reforms provide a significant firewall against dramatic economic swings at home,” she said.

Reports said there was significant outflow in “hot money” from the Philippines due to economic uncertainties.

“We remain bullish on our economy, optimistic about our future and deeply committed to being a force for good,” the President said.

The President pointed out that her key priorities in visiting the US are to showcase Philippine economic and investment opportunities with business leaders and investors like the members of the US-ASEAN Business Council and the US Chamber of Commerce.

Arroyo urges US lawmakers to end injustice to Pinoy war vets

By PAOLO ROMERO
The Philippine Star

WASHINGTON (via PLDT) – President Arroyo urged Thursday US lawmakers and Filipino-Americans here to end the “lingering injustice” to Filipino World War II veterans by joining the campaign to pass the Veterans Equity Bill in the House of Representatives.

This developed as the powerful RP-US Friendship Caucus had assured Mrs. Arroyo that the bill will be passed by the House before the US presidential elections in November this year.

The assurance came from California Rep. Bob Filner, one of the founders of the bi-partisan caucus, which is supportive of Philippine interest.

He said supporters of the measure would try to put the bill to a vote in the plenary next month and obtain two-thirds vote or 290 votes. He said the two-thirds vote, not just a simple majority, would ensure that the measure, earlier passed by the US Senate, would be approved without amendments.

“We’re all working very hard but we hope that you gave the final push. We hope the final push (was) given by the President when she spoke to our President,” Filner told Mrs. Arroyo, referring to the meeting between US President George W. Bush and the President at the White House on Monday.

Mrs. Arroyo met with the caucus at the Veterans Committee Hearing Room at the Cannon House Office Building of the US Capitol complex on Wednesday.

“It is time to come here and tell you and press for the passage, for your support,” the President said.

During a program with members of the Filipino community at the Willard Hotel, Mrs. Arroyo said “the history of the war remains incomplete; the last chapter is yet to be written.”

“Equity for our Filipino veterans are the final words,” she said.

She thanked the National Federation of Filipino-American Associations, American Coalition of Filipino Veterans and other groups that worked so hard to have the Veterans Equity Bill passed in the US Senate with a 96-1 vote.

“When the bill was calendared at the House of Representatives, your organizations, in an advanced Philippine-like fashion, launched a hectic ‘phone-fax-email campaign,’” Mrs. Arroyo said.

She said: “We wish you success in persuading the oppositionists to reconsider their position so as to correct a lingering injustice to our World War II heroes.”

The President recalled “when President Franklin Delano Roosevelt called on the Filipinos to serve in the US Armed Forces after Pearl Harbor, our fathers of the greatest generation heeded the call.”

“The President of the US was our commander-in-chief. Filipinos fought as US soldiers side by side with Americans and died under the banner of the stars and stripes,” she said.

“They suffered from some of the most brutal acts during the last war, including the notorious Bataan Death March,” she said.

“Yet, they prevailed and together vanquished the enemy and brought freedom and human dignity back to Asia and the world,” she said.

Meanwhile, Mrs. Arroyo was tentatively set to meet with Democratic presidential candidate Sen. Barack Obama in Washington on Thursday night.

Philippine officials, however, were sending mixed messages as to whether the meeting would push through or not.

As of press time, officials said the meeting was scheduled to take place anytime between 8 p.m. and 10 p.m. (8 a.m. to 10 a.m. Friday Manila time) in an undisclosed place in Washington.

Already confirmed is Mrs. Arroyo’s meeting with Republican presidential candidate John McCain in Washington at 12:30 p.m. Saturday (12:30 a.m. Sunday Manila time).

She was originally scheduled to meet Obama in Washington D.C. last June 24 or on the same day she met with US President Bush at the Oval Office in the White House.

Then it was moved to June 25 also in Washington D.C. but it did not push through.

Ambassador Marciano Paynor, Presidential Adviser for Foreign Visits and Consul General in San Francisco, said last week the White House did not find anything wrong with the scheduled meetings with the US presidential candidates.

“This is just a getting to know you type of meeting,” Paynor said. “At least she will already be acquainted with the future (US) president.”

He said such meetings are normal. He said the White House assured Philippine officials that there would be no strong reaction when Mrs. Arroyo meets with the two contenders.

The power of the ordinary individual has never been more pronounced — and sough after — than in this upcoming general election. My vote and my ordinary contribution have never been so consequential. Yours also matter as much.

A little context to the announcement that the Obama campaign will not participate in the public financing system for the general election.

Even though his campaign stood to receive more than $80 million in taxpayer funding for our campaign, the system has been so gamed and exploited by the McCain camp and the Republican National Committee that it is effectively broken.

• John McCain, the Republican National Committee, and their allies in so-called 527 groups that raise and spend unlimited contributions are dedicated to manipulating this broken system to raise as much money as possible — and they’ve proven that they’re very good at it.
• A top McCain adviser told MSNBC earlier this month, “now that we’re in the general election, the RNC money counts, the DNC money counts. So the truth is today, John McCain has more cash on hand and more money than Barack Obama does.”
• In April alone, they raised nearly $45 million. That’s more than our campaign and the Democratic National Committee combined. And that doesn’t include the plans of 527 groups like the one called “Freedom’s Watch,” which has said it will spend as much as $250 million under Karl Rove’s direction to attack and defeat Barack Obama.

To compete, Sen. Obama will continue to rely on ordinary people giving only what they can afford. That’s been the strategy of his campaign from the beginning, and more than 1,500,000 supporters like you have gotten him this far.

We have a historic opportunity to prove that a movement of ordinary people has the power to change the way political campaigns are funded.

Game 6 of the 2008 NBA Finals last night, June 17, 2008, at the TD Banknorth Garden was where the Boston Celtics crushed the mighty Los Angeles Lakers with a 131-92 victory.

Kevin Garnett, Ray Allen and Paul Pierce were the three Celtics stars who blazed the trail to victory, as did Coach Doc Rivers, who fine-tuned the defensive and offensive game of the Celtics.

The Lakers looked like a B-team … especially Gasol. What a lame, clumsy, bumbling Forward… 

Source of picture: The NY Times, http://www.nytimes.com/2008/06/18/sports/basketball/18nba.html?_r=1&ref=sports&oref=slogin. Picture by Mike Segar/Reuters 

Bernanke Says Rising Health Care Costs a Strain

By THE ASSOCIATED PRESS

Published: June 17, 2008

WASHINGTON — Bolstering the performance of the health care system is one of the biggest challenges facing the country, the Federal Reserve chairman, Ben S. Bernanke, said Monday.

New medical technologies and treatments are allowing people to live healthier, longer and more productive lives. However, the aging of millions of baby boomers coupled with rapidly rising heath care costs are accounting for an ever-growing share of both personal and government budgets — strains that will become increasingly burdensome unless changes are made, the Fed chief said.

Challenges, he said, fall into three major areas: improving access to health care for the 47 million Americans — or about 16 percent of the population — who lack health insurance; bolstering the quality of care; and controlling costs.

“Improving the performance of our health care system is without a doubt one of the most important challenges our nation faces,” Mr. Bernanke said in remarks on health care changes organized by a Senate panel on Capitol Hill.

On his remarks, the Fed chief did not talk about the Fed’s next move on interest rates or the state of the economy.

Many economists believe the Fed will hold a key interest rate steady at 2 percent, a four-year low, when it meets next week. Mr. Bernanke and other Fed officials have sent strong signals that the Fed’s rate-cutting campaign, started last September to shore up the ailing economy, was probably over because of mounting concerns about inflation.

Wall Street investors and some other believe that the Fed might be forced to raise rates later this year to thwart a dangerous inflation flare-up. Others, however, still think the Fed will be able to hold rate steady through the rest of this year.

It is a difficult spot for Fed policy makers. They are trying to aid an economy that has been badly bruised by the blows of a housing, credit and financial debacles. At the same time, they don’t want inflation to take off. If the Fed were to start boosting rates too soon to fend off inflation, that could deal a set back to already fragile economic growth.

On the health care front, Mr. Bernanke did not recommend specific solutions, saying the difficult choices involved with improving access and quality and controlling costs were best left to policy makers in Congress, the White House and elsewhere.

“Taking on these challenges will be daunting,” he said. Given the complexity of health care matters, he suggested that it might be better for policymakers to consider an “eclectic approach,” rather than one single set of changes to address all concerns.

“We may need to first address the problems that seem more easily managed rather than waiting for a solution that will address all problems at once,” Mr. Bernanke offered.

Pioneering Researches in Biotechnology, Cleaner and Safer Environment Winners in R&D Contest

Philippine Department of Science and Technology http://www.pcierd.dost.gov.ph/news/7thforawinners.htm

A new technology that produces lactic acid using a low-cost, newly-found raw material that is abundant in Davao bagged the top prize in the recently concluded competitions in research and development conducted by the Philippine Council for Industry and Energy Research and Development (PCIERD) of the Department of Science and Technology (DOST). Instead of using the costly raw materials like glucose or lactose, sago starch, from the sago tree, a native plant in the Philippines, can now be used to produce lactic acid, a widely used component in the food industry, nutrition and more importantly now, in medicine and in the pharmaceutical industries. Worldwide, the international scientific community has also been studying lactic acid for its use as monomer for biodegradable plastics. These studies, however, center on finding an alternative process to chemical synthesis.

But the winning edge of the research conducted by Dr. Dulce M. Flores, the researcher from the Department of Food Science and Chemistry, University of the Philippines in Mindanao, is her isolating a bacterial strain which could singly do the three processes of liquefaction, saccharification and fermentation for lactic acid production. Three complicated steps done in one step (fermentation) plus the use of cheap starch as raw material means savings in energy cost, time and equipment investments. Another underlying objective of the research is to help the Monobo tribe in Davao to make starch as a means of livelihood. As first prize winner, Dr. Flores received a cash prize of P250,000.00.

Garnering the second prize of P200,000.00 is the research on Catalyzed Photooxidation: Alternative Technology Option for the Destruction of Polychlorinated Biphenyls (PCBs). In this research, Dr. Carmela R. Centeno of the College of Engineering from the De La Salle University, promotes the use of non-burn technologies and developed a simple yet effective oxidation technology for degrading PCBs using an all-too familiar reagent – hydrogen peroxide. The PCBs have become a global concern being tagged as being in the list of the “dirty dozen” among the persistent organic pollutants. However, it has found widespread use as coolants in transformers and capacitors. The danger that PCBs pose is its habit to accumulate in the environment making them hard to manage and treat. With the catalyzed photooxidation, PCBs can now be disposed of in an environmentally-friendly manner.

At third place is the study on producing bioethanol entitled “Validation of a Paradigm: The Philippine Carabao as a Model for Cellulosic Ethanol Production”. In this research, Prof. Perla Florendo, Dr. Fiorello Abenes and their team from the Philippine Carabao Center used the Philippine carabao as a model for cellulosic ethanol production. Carabaos are known for their ability to subsist on low-quality forage like stubbles and straw. These agricultural wastes are naturally composed of highly specialized and powerful enzyme-producing microorganisms that digest cellulose and hemi-cellulose. Using this paradigm, Prof. Florendo took out this host of organism, use their ability to break down cellulose and added another step to produce bioethanol. This study gives light to industries which have long been baffled by the resiliency of cellulosic feedstocks against enzymatic hydrolysis. The new process gives a model for cellulosic ethanol production. A cash prize of P175,000.00 was awarded to the team.

Mr. Manny Q. Lim, Jr., President of the National Agribusiness Development Center Foundation and Member of the PCIERD Governing Council, in his speech as the Chairman of the Board of Judges in the PCIERD R&D National Competition said that the competition was one of the best and most challenging as it brought forth excellent researches in the industry and energy sectors.

Aside from the cash prizes, all winners received a plaque of recognition and pledge of assistance from PCIERD for the promotion and commercialization of their processes and technologies.

I’m responding to a reader’s inquiry on Philippine energy resources. To view the latest Philippine energy profile (sources of energy for the Philippines), click this link

http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=RP

This takes you to the official website of the U.S. Energy Information Administration, which shows your current and historical data on topics related to energy. A report dated November 2006 is also available by clicking this link:

rp-energy

Despite some political instability, the Philippines has experienced strong economic growth over the last two years. Real gross domestic product (GDP) grew at 5.0 percent in 2005, down somewhat from the 15-year high growth rate of 6.2 percent seen in 2004. The country is currently experiencing a minor cyclical downturn, driven by high global oil prices and a slowing world economy. However, growth remains strong, with the Philippine economy growing an estimated 5.5 percent during the first half of 2006. A key driver of continued economic growth is overseas workers’ remittances, which help sustain strong private consumption in the Philippines. During 2005, total remittances from approximately seven million overseas workers stood at $10.7 billion, or about 11 percent of nominal GDP.

The Philippines is one of the claimants, along with China, Taiwan, Malaysia, and Vietnam, to the Spratly Islands, located in the South China Sea. Potential oil and natural gas reserves surrounding the islands have sparked the interest of all the littoral states. In September 2004, the Chinese and Philippine governments reached an agreement to jointly pursue seismic survey work in the Spratlys, but without giving up their respective territorial claims. Vietnam joined the agreement in March 2005, and it was formalized with a memorandum of understanding between the three governments (see the South China Sea Regional Analysis Brief for more information).

BSP cuts dollar surplus forecast on global uncertainty
By: Maricel E. Burgonio | Manila Times
16 June 2008 | 9:44 AM

The Bangko Sentral ng Pilipinas (BSP) cut its forecast for the country’s balance of payments (BOP) surplus this year due to uncertainties in the global market.

BSP Gov. Amando M. Tetangco Jr. said the country would likely end the year with a surplus of $2.5 billion this year, lower than the earlier forecast of $3.4 billion.

The new forecast is significantly lower than the record high $8.6 billion surplus last year.

Tetangco said the central bank is reviewing its BOP projection to take into account latest developments in the global economy and financial markets.

Earlier, the BSP said the country’s BOP surplus reached $2.134 billion in the first four months this year.

The BOP summarizes a country’s economic transactions with the rest of the world and includes its external trade in goods and services, net investments both direct and portfolio, and other transfer payments. A surplus arises when the country earns more foreign exchange than it gives up, and helps to boost its dollar reserves, an increase in which boosts the local currency and tempers domestic price increases.

The global credit squeeze triggered by the US sub prime mortgage crisis is seen to have reduced the demand for exports as well as the investment appetite for peso-denominated financial assets.

Also contributing to the slowdown in foreign exchange inflows is the government’s decision to cut down on foreign borrowings to ease the peso’s appreciation and help overseas Filipino workers and exporters preserve their earnings.

At end-April, the country’s gross international reserves stood at $36.7 billion.