Band-Aid solutions to inflation | #NeverForget Diary
Week 17: October 17-23, 2022
This is the #NeverForget Diary, a weekly summary of what’s happening in the Philippines under Marcos II. In a time of mangled histories and fragile memories, it’s crucial never to forget. (Note: this post may be clipped in your email inbox. Photo above from Bongbong Marcos Page on FB.)
Inflation continues to hurt Filipinos. Millions might be pushed into poverty.
The link between inflation and poverty is reflected in recent Google search data:
Meanwhile, the National Economic and Development Authority (NEDA) said this week that inflation may shave off 0.6 percentage point from this year’s real (inflation-adjusted) GDP growth rate.
Rice prices are starting to inch up—a sign of a looming rice shortage?
Most unfortunately, government has resorted to mostly Band-Aid solutions.
On October 18, the Sugar Regulatory Administration (SRA) started selling “BBM Rice” for P70 a kilo at their offices in Quezon City and Bacolod City.
Apparently, this is a collaboration between the SRA and the private sector.
However, SRA’s own data show that average prices of refined sugar are still quite high.
As well, farmers everywhere are feeling the brunt of high oil (and other input) prices. This hyperrealistic painting captures farmers’ struggles with inflation and surging fuel prices:
Despite all this, the president insists he’s still needed as agriculture secretary. He explained it rather convolutedly:
More than 100 days in office, he still doesn’t seem to be on top of things. This is evident in posters such as this one, presenting his tendency to spew word salad:
In light of his “I’m still needed here” statement, some people drew parallels with the recent and premature resignation of UK Prime Minister Liz Truss:
Some people also linked the president’s incompetence to the new album of Taylor Smith, Midnights.
Speaking of presidential incompetence, Marcos Jr. said he’ll appoint a health secretary when the situation “normalizes.” What?
People couldn’t believe what they heard from the president.
This is how Dr. Ernesto Pernia, former director-general of the National Economic and Development Authority, put it:
Going back to agriculture issues, Senator Cynthia Villar drew flak for her rude statements against farmers and fisherfolk.
And going back to inflation: beloved dishes like Jollibee’s garlic pepper beef has become a lot more expensive over the years.
Another victim of inflation is the poor.
Some people are calling for the stoppage of 4Ps because according to a recent report by the Commission on Audit many beneficiaries remain poor and can’t graduate. But 4Ps payouts are not indexed to inflation, and have lost much purchasing power over time—especially now that we’re enduring rising inflation.
In a rather bold move, Finance Secretary Diokno “vowed” to keep the peso-dollar exchange rate at P60/$—a highly untenable position that puts the economic team’s credibility on the line.
Elsewhere in the world, inflation is much worse. In Argentina it’s nearly 100% now.
Global currencies have also weakened against the US dollar.
IMF Deputy Managing Director Gita Gopinath explained what can be done about the extremely strong dollar:
A global recession is imminent, what with successive central bank interest rate hikes.
Data show that the rate hikes will cut inflation, but with a lag.
In the US, inflation is driven not just by supply disruptions but also higher consumer demand:
A recession there is in the offing largely because of the Fed’s extremely hawkish stance against inflation:
More than half of Americans are considering a second job owing to worsening economic conditions:
Rents are up as well in the US:
Interestingly, China is delaying the release of economic statistics. Has China lost its steam as well?
#NEVERFORGET
The president gets a new propagandist, este “creative communications adviser,” in the person of director Paul Soriano (the husband of actress Toni Gonzaga).
Many people thought “creative communications” is just a euphemism for propaganda.
Presidential advisers get a ton of money as compensation. Soriano will allegedly get a nominal fee of P1, but for many that’s still P1 too many.
One motivation for this appointment may be the fact that the public has noticed too many parties of late. Is Marcos Jr. affected by this, and making up for lost work by making an effort to appear in more events?
On October 19, the president went to the lights show at the San Juanico Bridge connecting Samar and Leyte provinces. San Juanico was built during the Marcos dictatorship, and was supposedly a “gift” from Marcos Sr. to Imelda.
I said on Twitter this event is “a sorry attempt to perfume one of the most famous relics of martial law.”
In a Facebook post, former Presidential Commission on Good Government (PCGG) commissioner Ruben Carranza offered much-needed context on the San Juanico bridge:
Meanwhile, Marcos Jr. and his family are set to attend the 43rd MassKara Festival—an event that ironically originated in the hardships of Negros Island during martial law.
Marcos’s attendance is supremely ironic.
The teaching of martial law history in basic education continues to be crappy:
One module published by the Department of Education before Marcos Jr. took office characterized the martial law regime in a distinctly positive light. As reported by Inquirer:
The DepEd module for senior high schools circulating in Marinduque province and verified by the Inquirer characterized the years 1972 to 1980 as a time when economic progress and discipline dominated conversations and “newspapers donned new forms,” without mentioning the press censorship and brutal treatment of critical journalists during that period.
In addition:
The DepEd module called the Inquirer, one of the critical publications that emerged during this period, along with Malaya and People’s Journal, “crony newspapers that enjoyed an overnight increase in circulation” after the Edsa Revolution.
The continuing whitewashing of martial law history—by the DepEd itself!—has been called out by many groups. But will DepEd take steps?
UPDATES ON THE PERCY LAPID CASE
The suspect to the killing of journalist Percy Lapid was presented before media:
Supposedly, there’s a middleman who facilitated the murder of Lapid, and that middleman is inside New Bilibid Prison. But the authorities couldn’t get their act together, with inconsistent details all the way down:
MISCELLANY
Senator Jinggoy Estrada toys with the idea of banning Korean shows to promote instead Filipino films and projects. This suggestion drew a ton of flak.
It’s been 5 years since the “liberation” of Marawi City. Yet till now many residents have been unable to go back and resume their lives in the city.
People who want physical national IDs will have to do with cutouts for now. What is happening to PSA?
Chaos continues to characterize traffic in Metro Manila, particularly EDSA.
A lizard dove into the cup of coffee of National Security Adviser Clarita Carlos. This is news, somehow?
The search for the next president of the University of the Philippines is on.
In China, former president Hu Jintao was summarily escorted out of the 20th Party Congress—a signal of total domination by Xi and his allies.
GRAPHS OF NOTE
The terms of trade (price of exports over price of imports) in the Euro area has plummeted—whereas it increased in the US—in the aftermath of the Russian invasion of Ukraine. This suggests massive importation in the Euro area, contributing to the euro’s weakness vis-à-vis the US dollar.
An update on income distributions worldwide:
China is the main global emitter of CO2 now:
The source of much of America’s culture wars?
These tensions in the US have been fueled by disinformation:
Many billionaires become a lot richer due to the pandemic. But their windfalls may be proving short-lived:
Vietnam fared extremely well in the 2010 PISA for its level of development:
Pop songs have grown more negative over time:
RECOMMENDATIONS
Recommended book: The Marcos Era: A Reader. Now available on the Ateneo Press website as well as on its online stores (Lazada, Shopee).
Recommended photo: The Pillars of Creation as photographed by the Webb Telescope.
