Saturday, December 31, 2016

What do we expect in 2017 and beyond

A rabbi just predicted that the 10th Jubilee ends in 2017. What this means is catastrophic---the next Jubilee is expected to reveal astronomical anomalies and heavenly truths to those who believe in the revelation of a Messiah.

IN the United Kingdom, many psychics see the rise of economic crises, with people rioting due to food shortage. Failure to contain the exodus of migrants from the Middle East is expected to further strain the already depressed economies of the European Union (EU).

For the Philippines, it is quite easy to see where all these things are heading. The last quarters of 2016 show a predictive pattern, especially when it comes to investments.

We don't need psychics to tell us of massive outflows of foreign investments in the Philippines. It is not because the Philippines is not a hot place to put your monies---it is that the United States continues to show positive developments that attract hot money away from developing economies and back to developed ones. The dollar is strengthening and in doing so, is weakening other currencies particularly the peso. IN the last six months, the peso was the most underperforming currency. Of course, economic growth will still be in the positive even after 2017, but I think our economic planning agency will re-calibrate or re-assess the impact of US and European developments to our economic growth.

The problem with the United States is self-evident---lack of new products due to uninspired innovation. In previous years, the reason why the US remained as the world's top economy is because it produced products and services that the rest of the world needed or aspired for. It produced massive surpluses that fed and clothe the world. Now, that role is now with China, that explains why China is now the biggest economy in the world.

From being an economic superpower to the world's military superpower--that is a shift that the US government is trying to correct. From the eighties administration to Obama's, the US assumed the role of a top cop which unfortunately, not only tarnished its reputation globally, it also made it the prime target of extremism and terrorism.

And because Europe is a strong ally, it likewise committed the same mistake as what the US experienced. Leaders of these continents became so engrossed with tightening the noose in the Middle East that they forgot to take care of their economies.

Of course, this would not last long as technological innovations continually create digital disruptions in global communities. I think at this point leaders from these countries already realized that they have the competitive advantages in this sector. They cannot really compete with China and India when it comes to traditional manufacturing---it is rational for them to re-focus their attention on further improving technologies for billions of people around the world, but it should be way past the mobile telephony sector.

These disruptions are actually positive developments since it feeds into innovations. Innovation is the fodder of development. Societies develop only when innovation leads to products that people use. The new is the market.