WE have this idea that “we’re all in this together” and usually that boat is the Titanic.
The Titanic was poorly designed and constructed. The watertight compartments did not reach high enough and were insufficient as taller compartments would have reduced first class cabin space.
It was constructed with second-order rivets used to hold the hull together which would eventually fracture due to the collision. This was Captain EJ Smith’s retirement voyage and he ignored seven iceberg warnings from his crew and other ships. Finally, Bruce Ismay, president of the White Star Line, wanted to complete the crossing in six days and said the ship could not afford to slow down.
But notice this. There is no single cause and therefore no one to blame. In fact, American and British investigations ultimately attributed responsibility for the deaths to the captain of the neighboring vessel. Californian whose captain learned that there were rockets coming from the Titanic and he assumed they were having a party.
President Biden’s Remarks on the Economy — May 10, 2022“There are two main causes of inflation today. The first cause is a once-in-a-century pandemic that has completely disrupted the supply chain. And this year, we have a second cause: Mr. Putin’s war in Ukraine. Cursed icebergs!
In the Philippines, and normally to support a political agenda, we are told that our “ship” is a broken ship. bangka without paddles and all other countries sail on an oligarch-style Russian mega yacht.
Countries that are actually “broken bangkaslike Pakistan, El Salvador and Argentina are only mentioned as “The Philippines is going to be like Sri Lanka!” Get life jackets! The world is not in one boat, Titanic or otherwise.
Lack of information is misinformation, and the amount circulating could fill an ocean. Being ignorant in 2022 is the most dangerous thing you can be unless you want to look like a fool.
There are 223 central banks in the world like a massive fishing fleet. The Philippines even call it the “Bangko Sentral”. But ours is significantly different from the Federal Reserve, the ECB and the People’s Bank of China. The big three have a mandate for “price stability” (controlling inflation) and monetary stability, as does the Bangko Sentral. But these three must also “effectively promote the goals of maximum employment and economic growth”.
And for the politicians who control the central banks, it is “maximum employment and economic growth” that wins the elections. The uninformed/uninformed public has no understanding of “monetary stability” and are told that historically high inflation is “Putin’s fault”.
Therefore, when an equally uninformed/uninformed member of the media challenges a genuine monetary expert, the media crumbles and burns. “Diokno was recently named the best central banker in the world by The bankeran international business, banking and finance magazine owned by the Financial Times.
In each country, inflation and the world price of crude oil track each other because there is both correlation and causation. So why is inflation in the Philippines at 4.9% YoY and not 8.3% like in the United States? The annual inflation rate in Brazil rose to 12% in April 2022.
Taking a typical barrel of crude oil, 90 percent is used as gasoline and diesel fuel. Since April 2020, transport spending in the United States has increased by 36% compared to 16% in the Philippines. Brazilians spend 33% of the monthly minimum wage to fill a 50 liter fuel tank.
However, 80% of Brazilian households own a car, but about 10% of Filipino households own a car, jeep or van. The majority of Filipinos commute to work and shop on public transportation. This keeps transportation spending / inflation lower. The thing is, our national transportation spending is lower than other places where some of the “experts” have relatives who live.
We are not all in the same boat and all our boats are different. To think otherwise leads to wrong impressions and very bad decisions.