Why The Dollar to Philippine Peso Rate is Falling Now
I know a lot of people know why the dollar to Philippine peso currency trading is dropping like a meteor. I also know that a lot of people don’t know why. I’m getting this question at least 10 times a day in private. I’m also watching a lot of people find an article I wrote several months ago about quantitative easing. That was why the dollar to Philippine peso was so bad then. There is another reason why the dollar to Philippine peso exchange rate is so bad now. I’m hoping that some of those people will find this article instead. I’d rather be writing about my trip to Estrella Falls but the news and the demand is pointing to a need to write another article about the dollar to Philippine peso currency trading rate.
The reason is simple. It is politics over the debt ceiling in the USA. The Treasury Secretary in the USA says he will be out of options on August 3rd 2011. Some say he won’t be. I hope they are right. However, now the Republicans in congress have started looking at a bill to prioritize spending. That is who will get paid first in case of a default.
One financial writer I read said that the Federal Reserve Bank may be able to lend money to the Treasury. Others say that may not be legal. I have no idea. It means printing money and that means also lowering the value of the dollar. That would still be better than a default.
Reading the doom and gloom I’m seeing from the financial news around the web, I thought that just might kick start congress into doing something that can pass. As I’ve been saying for months though, both sides are locking themselves in hard.
I had hoped that congress would give Obama the ability to raise the debt ceiling but I’ve heard nothing of that as of late. Default is just plain crazy but not as crazy as an attempt to create a balanced budget amendment. There are times when a balanced budget is not a good idea. We are in one of those times.
Yes, I know if the average Joe keeps spending, they will go bankrupt. The last time I checked, Average Joe doesn’t have the resources the most powerful nation in the world has.
I expect both Standard and Poor’s to lower the USA’s bond rating at any moment. I don’t think it will be long now. I don’t think they will wait for a default but rather the likely hood of one and now I think a default is more likely than not.
Though I was hoping that Congress would try to pass it off as President Obama’s problem, I think they realized the American people are smarter than that. Obama says it is routine to raise the debt ceiling and he’s right but the amount he has asked for is the largest in history.
I have been convinced for sometime that some Republicans will do anything to harm Obama. I have been saying for months that the USA might default because of the political tensions in the USA.
Bond prices are falling, stocks are falling and usually when one goes up the other goes down. We have a few more days left. With all the signals in the markets today the politicians may just get the message.
I’d like to think that if they don’t, that the American people will give them a clear message come the next elections but I don’t think that at all. I do think the Republican’s are miscalculating. I think the American people see exactly what is going on but we are not good with long term memory.
If we default has Obama failed to lead? Perhaps. I don’t think anyone can fix what is going on.
The Dollar To Philippine Peso Hits Three Year Low
The dollar to Philippine Peso hit a three year low today. It is not likely to be over yet. The USA is about to give away some of its glory with some members of congress wrapping themselves up in the flag while doing it.
I’m fine but I know some people living on less than half of what I have as a monthly budget and those people are going to be hurting. If you’re on a very limited budget, I’d wait before moving to the Philippines.
When I first moved to the Philippines, I had a furnished place but still had a lot of things that needed to be bought. The dollar rate to Philippine peso is not back at that level. Yes, I know that is different than what I’ve said before but things have changed and we don’t know how bad the dollar to Philippine peso rate is going to get.
Filed under: Dollar To Philippine Peso
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