Prediction For The Future

[joeatmanila]

Hallo everyoneI am living here 8 years now. When i first came to philippines the peso was 56=1$ and the value of money much higher since 56p could buy you double than the what it buys you now.and i am wondering, is the economy of the country going so good that 42p=1$ and the market prices have been doubled within 8 years?Is it a ballon that will blow sooner or later and bring the country down on their knees, seeing the dollar 100p=1$ (and loose all the investments we might have done here)Or what is it going to be? I am not good with all the international financing etc

[Art2ro]

Your guess is as good as mine! Here's a little short story though, in the late 60s when I was only 19 yrs old and stationed at Clark AB, the exchange rate was only P4.80 to the dollar and my little military pay of $200 a month back in those days went a long way! One can go to a restaurant and feed 10 hungry people just on $10 and gasoline on base was only 13 U.S. cent a gallon and the average house rent off base was from $25 to $125 a month.

[Bruce]

Well, I think the mistake you are making is looking at the Philippines as a stand alone country instead of one of many countries. The Philippines may be somewhat isolated by distance, but there is no isolation when it comes to money or inflation. While I as an individual would be thrilled to see $1 = 100p, that is bacause I am working in the US and buying with the USD. But I see your concerns for those who would be unable to sell their property and break even much more make a profit. But as the Peso's value changes, so does the currency of other countries. I really don't see the USD getting much stronger, and historically, it is getting weaker if you look backwards.