Erle Frayne Argonza
Magandang hapon! Good afternoon!
2009 will be another bleak year economically, more so for the North (USA, EU, Japan are topmost). The recession that began with the subprime mortgage bubble burst in America in 07, will ensue with even mightier turbulence, as there are no coherent policy solutions of a strategic nature that can salve the economic ailment on a global scale.
As already articulated by this economist/analyst in various articles, the policy environment must be changed and regulatory mechanisms strengthened to immediately gain business confidence and reverse the tide of catastrophe. On the domestic front, the solution begins by following a New Deal type of policy set, which will bring back the fervor of production-driven growth and full employment. On the international/global front, a new financial architecture must be agreed upon via a global summit called for the purpose, akin to a New Bretton Woods.
The only intervention mechanisms we observe today are bailouts of failing financial and business institutions, which are toxically immoral as those criminal oligarchs are even rewarded for their sordid looting and corrupt practices. Only Russia and China have openly resorted to a New Deal type solution, in consonance with the practices of the late regime of Franklin Delano Roosevelt of the USA. As far as the international-global front is concerned, the concurrence of a new treaty that will resonate a new financial architecture is nowhere in sight.
In the absence of genuine solutions that can stabilize ailing economies on both the domestic and international fronts, the downward spirals will continue, until the economies of the North will hit rock bottom depression that will be worse than the one that crashed the USA, UK and Germany almost a century ago (USA, UK, Germany were then the world’s top industrial & military powers). In the absence of capital control policies up North, capital flight will ensue at dizzying speed, draining their respective countries of trillions of dollars and/or euros at levels far higher than the 2008 drain. The smart money that will sneak out will find better shelters in the South (emerging markets notably East Asia + India).
The possibility of North-based companies transferring their headquarters to the South is not entirely ruled out. The other option is for the corporate owners to transfer domicile from the North to the South, leaving their ailing mother companies in the hands of trusted stewards. The era of distance remote control-type management by corporate owners could very well begin this year, which will modify corporate governance by no small means.
The positive light for the global economy is that finally the corporate and state leaders will see light at the end of the tunnel and call for a global conference to carve out a new financial architecture. Laissez faire, a cadaver doctrine before the 2nd world war that was revived by the monetarists and greedy financiers, will finally lay to rest as it gives way to dirigist or interventionist economics. Stronger regulatory mechanisms may be charted this year too, at least on paper.
New Deal, Keynesian, and welfare state doctrines will be blended together to produce an eclectic admixture. Since New Deal has an international facet into it thus rendering it more comprehensive, as the late FDR cogitated the need for international cooperation and development for all countries to end all wars and foment lasting peace, this doctrine will more or less be followed. We will not be surprised if, after the Davos conference, the shape of the future will already be definitively of the New Deal type.
Conclusively, even if the Northern economies will flatten down to zero and/or negative growths, the downward spiral may stop by the last quarter of the year. The full effects of the intervention solutions won’t be felt this year though, as it will take some more years to get them to galvanize. So let us brace for more turbulent winds, while hoping that the storm would finally stop so we can enjoy a delightful holiday season comes December.
[26 January 2009, Quezon City, MetroManila]
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Showing posts with label global finance. Show all posts
Showing posts with label global finance. Show all posts
Monday, January 26, 2009
Saturday, November 29, 2008
HEALING GLOBAL ECONOMY VIA NEW FINANCIAL ARCHITECTURE
Erle Frayne D. Argonza
Magandang hapon! Good afternoon! Buenos tardes!
At this juncture, this economist, who is also a healer (pranic healer, soul healer, psychosocial counselor), will begin to articulate economic problems from a wellness vantage point. I will be calling the paradigm ‘healing economics’ as a fusion of wellness principles and economic analysis.
If we observe the ‘treatment’ applied by public policy experts on national economies today, we would see that the solutions to the problems are largely short-term ones that only mitigate economic collapse for a while. We can call them ‘band aid’ solutions to problems that are more of ‘cancerous’ in nature, and by common sense we know that band aid cannot cure cancer.
The economies of our nations have already been integrated over the last three (3) decades or so. This integration constituted the ‘global economy’ which is distinct from national economies and which manifest its own laws. National economies have become interstices or tissues of the global economy, and trying to cure ailing national economies without taking into consideration the wellness of the whole global economy will fail.
What is now urgently most needed, as a formula for enabling healthy national economies, is to put into place a new global ‘financial architecture’ as a beginning treatment. There is no way that economies can heal without the proper macro-policies and institutional frames that support them, and those policies cum institutions must be constructed at the global level.
Just by using that ‘global’ category as a yardstick, we can see that the solution of bank bailouts being rushed in the USA and echoed in Europe are not the long-term salvation to the ailment.
That bailout route was already tried in Japan in the 1990s, it was then called ‘crisis management’, and it resulted to a 12-year recession-to-low growth catastrophe. Japan became the “sick man of Asia” for a decade, which was unbelievable for observers who knew this country’s economic might all along.
If there are certain realities that we must admit as having already turned into dead carcasses, they are:
· Virtual or Bubble Economy: Economy that is founded on speculation, with values derived from out of financial values themselves and divorced from production, cannot be sustained for long. It is finally DEAD. Only fools would still think that reviving it, without regulating and/or criminalizing the economic predators that thrived on it, is the soundest healing work preferred. Nobody needs to heal a dead thing, just bury it deep below the ground, lest you create a zombie or vampire out of it.
· Free Market of Currencies. Treating currencies like commodities that are tradable without sufficient regulation, is voodoo paradigm of ‘monetarism’. This is now DEAD. It can never work, it doesn’t, and will never work under any given context. Free market doctrine (laissez faire)), in the first place, was long dead. It was a doctrine that was enforced by the British Empire, through the “power of the gun,” and supported the slave trade business. To revive such a doctrine in the current context—guiding trade and exchanges in the monetary-currency markets—is plain voodoo practice, as it fattens the purses of economic predators at the expense of national economies and marginal social sectors.
The route to strategic healing, which combines ‘preventive’ with ‘curative’ treatments, is through a new ‘global financial architecture’. This can be and should be done most urgently, as the carcasses are now spreading havoc of ailments across the planet, through a global conference of all the nation-states. Through this conference, proper diagnostics can be done, with the help of top experts, including those representing marginal sectors, and proper treatment can also be conjured.
An outline of agenda items for deep reflections in such a treaty-making conference would be as follows:
· Shift Back to Regulated Trading of Currencies/Monies. Money is the lifeblood of the economy. As such, no private group or whatsoever should be allowed to play it like gambling toys just to fatten their already fat pockets. Private stakeholders that gamble in the currency markets are like cancerous corpuscles in the blood vessel, their operations must be well regulated and certain trading activities declared as banned.
· Securitize Currencies with Precious Metals. A reconstruction of the gold standard should be done most quickly. This system was junked in 1971 yet, and look at the catastrophic result of its folding up. Not only gold, but certain other precious metals and crystals, such as diamonds, can be declared as securitization measures to guide money production within any country at any given time.
· Fixed Exchange Rates. National currencies are still around. In no way should they be forcibly junked in favor of a global currency, which is too premature a measure. Within a period of transition, of say 25 years, national currencies should be the chief legal tender, exchangeable based on fixed exchange rate policy.
· Tobin Tax on Cross-border Financial Transactions. All cross-border financial-monetary transactions, done as matter of business engagement, should be imposed a Tobin Tax, the amount of which will be defined in the conference. The revenues generated from such tax will then be used to fund the United Nations and its attached institutions (UNESCO, WHO, ILO, etc). Through this measure, all cross-border transactions can also be monitored, making it easier for international enforcers (e.g. Interpol) to counter-check sabotage and related criminal operations by predators.
· Ban or Criminalize Excessive Speculation. Excessive speculation of currency markets and related financial transactions must be banned and declared as crime. Those engagements of ‘currency attacks’ that have wrecked many economies are on top of the agenda for criminalization. Till these days, they remain unchecked, due to free trade principles in currency and financial trading.
· Ban Banks from Derivatives Operations. Banks should operate largely in support of developmental and re-development pursuits. In no case should any country be allowed unrestrained speculative and/or derivatives operations that leave the banks vulnerable to collapse.
· End Usury One and For All. For as long as usury remains, poverty and underdevelopment will never end, while once wealthy economies can crash back into 3rd world status. Usury must be criminalized as an evil act, thus ending once and for all a long history of predatory hoarding.
· Create New Global Financial Institution. To enforce and monitor the new financial architecture put into place, a new global financial architecture or GFI should be installed as well. The international Monetary Fund is a total failure, even as it was used as a mere tool by predatory financiers to extract usurious rents and disable national economies through immoral austerity measures. In the long run, this GFI can be considered as the infrastructure for a global central bank, should cooperating states approve it in principle.
Incidentally, the clamor for installing a new financial architecture is now getting stronger by the day. I am very optimistic that this will be concurred in due time, for failure to do so would prolong the agony of global economic collapse and decline. Let us cross our fingers that it will be called for very soon.
[Writ 28 November 2008, Quezon City, MetroManila]
Magandang hapon! Good afternoon! Buenos tardes!
At this juncture, this economist, who is also a healer (pranic healer, soul healer, psychosocial counselor), will begin to articulate economic problems from a wellness vantage point. I will be calling the paradigm ‘healing economics’ as a fusion of wellness principles and economic analysis.
If we observe the ‘treatment’ applied by public policy experts on national economies today, we would see that the solutions to the problems are largely short-term ones that only mitigate economic collapse for a while. We can call them ‘band aid’ solutions to problems that are more of ‘cancerous’ in nature, and by common sense we know that band aid cannot cure cancer.
The economies of our nations have already been integrated over the last three (3) decades or so. This integration constituted the ‘global economy’ which is distinct from national economies and which manifest its own laws. National economies have become interstices or tissues of the global economy, and trying to cure ailing national economies without taking into consideration the wellness of the whole global economy will fail.
What is now urgently most needed, as a formula for enabling healthy national economies, is to put into place a new global ‘financial architecture’ as a beginning treatment. There is no way that economies can heal without the proper macro-policies and institutional frames that support them, and those policies cum institutions must be constructed at the global level.
Just by using that ‘global’ category as a yardstick, we can see that the solution of bank bailouts being rushed in the USA and echoed in Europe are not the long-term salvation to the ailment.
That bailout route was already tried in Japan in the 1990s, it was then called ‘crisis management’, and it resulted to a 12-year recession-to-low growth catastrophe. Japan became the “sick man of Asia” for a decade, which was unbelievable for observers who knew this country’s economic might all along.
If there are certain realities that we must admit as having already turned into dead carcasses, they are:
· Virtual or Bubble Economy: Economy that is founded on speculation, with values derived from out of financial values themselves and divorced from production, cannot be sustained for long. It is finally DEAD. Only fools would still think that reviving it, without regulating and/or criminalizing the economic predators that thrived on it, is the soundest healing work preferred. Nobody needs to heal a dead thing, just bury it deep below the ground, lest you create a zombie or vampire out of it.
· Free Market of Currencies. Treating currencies like commodities that are tradable without sufficient regulation, is voodoo paradigm of ‘monetarism’. This is now DEAD. It can never work, it doesn’t, and will never work under any given context. Free market doctrine (laissez faire)), in the first place, was long dead. It was a doctrine that was enforced by the British Empire, through the “power of the gun,” and supported the slave trade business. To revive such a doctrine in the current context—guiding trade and exchanges in the monetary-currency markets—is plain voodoo practice, as it fattens the purses of economic predators at the expense of national economies and marginal social sectors.
The route to strategic healing, which combines ‘preventive’ with ‘curative’ treatments, is through a new ‘global financial architecture’. This can be and should be done most urgently, as the carcasses are now spreading havoc of ailments across the planet, through a global conference of all the nation-states. Through this conference, proper diagnostics can be done, with the help of top experts, including those representing marginal sectors, and proper treatment can also be conjured.
An outline of agenda items for deep reflections in such a treaty-making conference would be as follows:
· Shift Back to Regulated Trading of Currencies/Monies. Money is the lifeblood of the economy. As such, no private group or whatsoever should be allowed to play it like gambling toys just to fatten their already fat pockets. Private stakeholders that gamble in the currency markets are like cancerous corpuscles in the blood vessel, their operations must be well regulated and certain trading activities declared as banned.
· Securitize Currencies with Precious Metals. A reconstruction of the gold standard should be done most quickly. This system was junked in 1971 yet, and look at the catastrophic result of its folding up. Not only gold, but certain other precious metals and crystals, such as diamonds, can be declared as securitization measures to guide money production within any country at any given time.
· Fixed Exchange Rates. National currencies are still around. In no way should they be forcibly junked in favor of a global currency, which is too premature a measure. Within a period of transition, of say 25 years, national currencies should be the chief legal tender, exchangeable based on fixed exchange rate policy.
· Tobin Tax on Cross-border Financial Transactions. All cross-border financial-monetary transactions, done as matter of business engagement, should be imposed a Tobin Tax, the amount of which will be defined in the conference. The revenues generated from such tax will then be used to fund the United Nations and its attached institutions (UNESCO, WHO, ILO, etc). Through this measure, all cross-border transactions can also be monitored, making it easier for international enforcers (e.g. Interpol) to counter-check sabotage and related criminal operations by predators.
· Ban or Criminalize Excessive Speculation. Excessive speculation of currency markets and related financial transactions must be banned and declared as crime. Those engagements of ‘currency attacks’ that have wrecked many economies are on top of the agenda for criminalization. Till these days, they remain unchecked, due to free trade principles in currency and financial trading.
· Ban Banks from Derivatives Operations. Banks should operate largely in support of developmental and re-development pursuits. In no case should any country be allowed unrestrained speculative and/or derivatives operations that leave the banks vulnerable to collapse.
· End Usury One and For All. For as long as usury remains, poverty and underdevelopment will never end, while once wealthy economies can crash back into 3rd world status. Usury must be criminalized as an evil act, thus ending once and for all a long history of predatory hoarding.
· Create New Global Financial Institution. To enforce and monitor the new financial architecture put into place, a new global financial architecture or GFI should be installed as well. The international Monetary Fund is a total failure, even as it was used as a mere tool by predatory financiers to extract usurious rents and disable national economies through immoral austerity measures. In the long run, this GFI can be considered as the infrastructure for a global central bank, should cooperating states approve it in principle.
Incidentally, the clamor for installing a new financial architecture is now getting stronger by the day. I am very optimistic that this will be concurred in due time, for failure to do so would prolong the agony of global economic collapse and decline. Let us cross our fingers that it will be called for very soon.
[Writ 28 November 2008, Quezon City, MetroManila]
Monday, July 28, 2008
RE-ECHOING ROOSEVELT’S ‘PHYSICAL ECONOMY’ SOLUTIONS TO GLOBAL FINANCIAL COLLAPSE
Bro. Erle Frayne Argonza y Delago
My beloved country remembers the late Franklin Delano Roosevelt very well. It was his presidency that paved the way for preparing the Philippines as an independent state, by first granting the country the status of a commonwealth with its own constitution (1935 Constitution), and by permitting such domestic government to prepare the legislative measures and policy environment for a future independent state (granted independence in 1946).
Roosevelt’s regime also paved the way for the developmental paradigm that would propel the Philippines along the road to industrialization (we now term this as Import-Substitution Industrialization). The paradigm, based on the works of previous thinkers Alexander Hamilton, Friedrich von List, and the exemplar development policies of Abraham Lincoln, puts great stress on the ‘physical economy’ as the foundation for a prosperous and mighty economy in the long run.
Roosevelt further went on to cogitate that colonialism should fold up after the war, and that all former colonies must follow the road to development and prosperity, this being the road to genuine international peace and cooperation. The international doctrine of Roosevelt became the foundation for post-war cooperation, and buttressed the founding of the Bretton Woods agencies whose mandates were propelled precisely by the physical economy framework, the need for undertaking development in the former colonies, and the need to regulate national currencies via fixed exchange rate backed by the gold standard.
The current circumstance is now too remote from the ‘physical economy’ policy regime of the post-war era. Economic liberalization policies led to globalization and the galvanization of the ‘virtual economy’ based on predatory finance. The ‘virtual economy’ had led to de-industrialization, agricultural decay, decline of S&T, and deteriorating infrastructures in the most affected economies, and had fragmented developing states into ‘failed states’.
The global financial system created by the relentless liberalization of financial, fiscal and monetary policies across borders, had already collapsed and is beyond salvation using the present intervention tools that now seem to be burnt out tools altogether. A global conference must be convened most urgently to carve out a new financial architecture based on a ‘physical economy’ framework, and to decisively criminalize predatory finance.
Below is a press release of relevant notes on the global financial collapse, by the economist Lyndon LaRouche.
[27 July 2008, Quezon City, Metromanila. Thanks to the Executive Intelligence Review database news.]
===========================================
LaRouche: Financial System Is Dead, Cannot Be Saved
July 13, 2008 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
With the U.S. and British financial press full of wild speculation about how the Bush Administration is going to intervene Monday morning, to bail out Fannie Mae and Freddie Mac, Lyndon LaRouche today issued a sharp, preemptive warning: "The financial system is already dead. It cannot be saved."
LaRouche expanded: "If any of the reports of a planned bailout of the two big mortgage lenders, by the Treasury Department or the Federal Reserve are true, I say, 'Forget it.' Any such efforts to delay the funeral of the present global financial and monetary system will only make matters worse. A bailout will cause an accelerated hyperinflationary explosion, far worse than the hyperinflation that hit Weimar Germany in the autumn of 1923. Back then," LaRouche continued, "Germany had a gun pointed to its head. The gun was called the Versailles Treaty, and Germany had no choice. Today, the United States has a choice. I spelled out the choice in numerous recent locations."
LaRouche cited his recent call for the Federal Reserve to immediately raise interest rates to 4 percent, as a stop-gap measure to prevent a massive flight of institutional capital from the banking system. He demanded that this move be accompanied by clear statements from the Fed that there will be no more Bear Stearns-style bailouts of the speculative bubble. Instead, the Fed will protect the chartered Federal and state banks, through bankruptcy reorganization, on the model of what Franklin Roosevelt did, when he first took office in March 1933, and faced the same kind of collapse of the banking system that we face now. "Only, today's crisis is orders of magnitude worse," LaRouche added, "due to the massive leveraging by the banks and other financial institutions."
LaRouche warned that Bush Administration and Fed officials, like Hank Paulson and Ben Bernanke, may be on an "ego trip—unwilling to admit that they have failed miserably. But the reality is that they, like the George W. Bush Administration, have failed, with wretched incompetence. For one thing, they failed to reverse the Alan Greenspan monster bubble, which is now blowing."
LaRouche added that there is no way to even estimate the magnitude of the financial bubble, that has now blown. "The collapse of Fannie and Freddie means the end of the system. And that has already happened, and nothing can be done, within the rules of the current system, to solve that problem. We can keep Fannie Mae and Freddie Mac alive, but only through actions reforming the system, in terms echoing the precedents of President Franklin Roosevelt, that in ways appropiate for the actual conditions of today.
"The only alternative is to implement my three-step solution to the crisis," LaRouche concluded. "If the so-called leadership in Washington is unwilling to do that, then this financial system, and, by extension, these United States, are finished. It may be a tough reality to swallow, but it is the only reality that there is."
Lyndon LaRouche will be delivering an international webcast on Tuesday, July 22, 2008, at 1:00 p.m. (EDT). The webcast takes place on the first anniversary of LaRouche's July 25, 2007 Washington, D.C. webcast address, in which he announced that the financial system had already crashed. Days later, the collapse of Countrywide, and other major mortgage lenders, and the blowout of Bear Stearns, illustrated that LaRouche was 100% correct.
My beloved country remembers the late Franklin Delano Roosevelt very well. It was his presidency that paved the way for preparing the Philippines as an independent state, by first granting the country the status of a commonwealth with its own constitution (1935 Constitution), and by permitting such domestic government to prepare the legislative measures and policy environment for a future independent state (granted independence in 1946).
Roosevelt’s regime also paved the way for the developmental paradigm that would propel the Philippines along the road to industrialization (we now term this as Import-Substitution Industrialization). The paradigm, based on the works of previous thinkers Alexander Hamilton, Friedrich von List, and the exemplar development policies of Abraham Lincoln, puts great stress on the ‘physical economy’ as the foundation for a prosperous and mighty economy in the long run.
Roosevelt further went on to cogitate that colonialism should fold up after the war, and that all former colonies must follow the road to development and prosperity, this being the road to genuine international peace and cooperation. The international doctrine of Roosevelt became the foundation for post-war cooperation, and buttressed the founding of the Bretton Woods agencies whose mandates were propelled precisely by the physical economy framework, the need for undertaking development in the former colonies, and the need to regulate national currencies via fixed exchange rate backed by the gold standard.
The current circumstance is now too remote from the ‘physical economy’ policy regime of the post-war era. Economic liberalization policies led to globalization and the galvanization of the ‘virtual economy’ based on predatory finance. The ‘virtual economy’ had led to de-industrialization, agricultural decay, decline of S&T, and deteriorating infrastructures in the most affected economies, and had fragmented developing states into ‘failed states’.
The global financial system created by the relentless liberalization of financial, fiscal and monetary policies across borders, had already collapsed and is beyond salvation using the present intervention tools that now seem to be burnt out tools altogether. A global conference must be convened most urgently to carve out a new financial architecture based on a ‘physical economy’ framework, and to decisively criminalize predatory finance.
Below is a press release of relevant notes on the global financial collapse, by the economist Lyndon LaRouche.
[27 July 2008, Quezon City, Metromanila. Thanks to the Executive Intelligence Review database news.]
===========================================
LaRouche: Financial System Is Dead, Cannot Be Saved
July 13, 2008 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
With the U.S. and British financial press full of wild speculation about how the Bush Administration is going to intervene Monday morning, to bail out Fannie Mae and Freddie Mac, Lyndon LaRouche today issued a sharp, preemptive warning: "The financial system is already dead. It cannot be saved."
LaRouche expanded: "If any of the reports of a planned bailout of the two big mortgage lenders, by the Treasury Department or the Federal Reserve are true, I say, 'Forget it.' Any such efforts to delay the funeral of the present global financial and monetary system will only make matters worse. A bailout will cause an accelerated hyperinflationary explosion, far worse than the hyperinflation that hit Weimar Germany in the autumn of 1923. Back then," LaRouche continued, "Germany had a gun pointed to its head. The gun was called the Versailles Treaty, and Germany had no choice. Today, the United States has a choice. I spelled out the choice in numerous recent locations."
LaRouche cited his recent call for the Federal Reserve to immediately raise interest rates to 4 percent, as a stop-gap measure to prevent a massive flight of institutional capital from the banking system. He demanded that this move be accompanied by clear statements from the Fed that there will be no more Bear Stearns-style bailouts of the speculative bubble. Instead, the Fed will protect the chartered Federal and state banks, through bankruptcy reorganization, on the model of what Franklin Roosevelt did, when he first took office in March 1933, and faced the same kind of collapse of the banking system that we face now. "Only, today's crisis is orders of magnitude worse," LaRouche added, "due to the massive leveraging by the banks and other financial institutions."
LaRouche warned that Bush Administration and Fed officials, like Hank Paulson and Ben Bernanke, may be on an "ego trip—unwilling to admit that they have failed miserably. But the reality is that they, like the George W. Bush Administration, have failed, with wretched incompetence. For one thing, they failed to reverse the Alan Greenspan monster bubble, which is now blowing."
LaRouche added that there is no way to even estimate the magnitude of the financial bubble, that has now blown. "The collapse of Fannie and Freddie means the end of the system. And that has already happened, and nothing can be done, within the rules of the current system, to solve that problem. We can keep Fannie Mae and Freddie Mac alive, but only through actions reforming the system, in terms echoing the precedents of President Franklin Roosevelt, that in ways appropiate for the actual conditions of today.
"The only alternative is to implement my three-step solution to the crisis," LaRouche concluded. "If the so-called leadership in Washington is unwilling to do that, then this financial system, and, by extension, these United States, are finished. It may be a tough reality to swallow, but it is the only reality that there is."
Lyndon LaRouche will be delivering an international webcast on Tuesday, July 22, 2008, at 1:00 p.m. (EDT). The webcast takes place on the first anniversary of LaRouche's July 25, 2007 Washington, D.C. webcast address, in which he announced that the financial system had already crashed. Days later, the collapse of Countrywide, and other major mortgage lenders, and the blowout of Bear Stearns, illustrated that LaRouche was 100% correct.
Saturday, June 21, 2008
UNIVERSITY OF THE PHILIPPINES: HAPPY CENTENNIAL!
Bro. Erle Frayne Argonza y Delago
Happy Centennial Anniversary to my Beloved Alma Mater, the University of the Philippines!
Being a development expert, I wish to highlight in this briefer the developmental side to the premier university of my beloved country. The University or the Philippines or U.P. is foremost of all an indication of the maturity of Filipino education and educators, in that after 100 years of existence, we as a people were able to show to the world the viability of a grand university run by ourselves (Filipinos).
Tertiary education was imported directly from the West, being transplanted here from Europe during the Spanish colonial era (1500s-1800s). Albeit the idea of tertiary institutes run by Filipinos themselves is a fairly recent development. To be exact, it was only after World War II, coherent with our own independence from the USA, that the striving for Filipino-run tertiary educational institutions became one of the greatest challenges in Philippine education.
The University of the Philippines was constituted by the Americans after the conclusion of the Philippine-American War. When that war ended in 1900, there was a period of intense reorganization of the entire society and state, as well as the reconstruction of the economy that was damaged by two (2) consecutive wars (the Philippine revolution against Spain was the first). In 1908 the University of the Philippines was born.
The idea of a premier state university was not, however, an imposition by the USA on the Philippines. During the brief period of Aguinaldo government (1898-2000), the new Philippine state already prioritized the constitution of such a university in consonance with its desire to establish a modern educational program. The pedagogy of that university, had it succeeded, could have been close to those of Spain’s tops, notably the University of Barcelona and University of Madrid.
But the grand vision of the new republic wasn’t fulfilled as the Americans grabbed that opportunity for self-governance by the new state. However, the Americans themselves realized the soundness of the concept, and so they took on the cudgels for constituting a premier state university. The flagship campus was then the Padre Faura campus in Manila, while the branch outside Manila was the UP College Los Banos. The Philippine General Hospital served as the service arm of the new university. Anglo-Saxon pedagogy and philosophy served as the core foundation, following those of the Ivy League universities.
Americans served as the first professors and administrators of the noble institution. Then, gradually their Filipino apprentices joined the faculty, until the time was ripe for Filipinos to serve as top management officials. Note that it took two (2) decades for such a process to take. When the grand statesman Manuel Luis Quezon became President of the commonwealth, Filipinos were already showing their prowess in administering the university, designing and managing academic programs, launching pioneering research programs, and running classrooms as professors.
The commonwealth government was a testing period for self-governance which incidentally found solid support inside the United States congress and executive. By the early 19040s the self-governance prowess of Filipinos in the state university was already established. So when the USA departed from the Philippines in 1946, Filipinos already had the upper hand in running this institution and there was no great need to import experts (professors and consultants) to run the university.
It was a rough ride all along for the state university. No matter how rough it may have seem, when asked for an opinion, I would prefer to stress the victory of Filipinos first of all in showing the capability to run the university ourselves.
Since that time on, the state university had become the bastion of nationalism and critical thinking in the country. During the dark years of Martial Law, the U.P. became the most powerful lamp that lighted the surrounds for the whole nation, and people outside were dying to read the Philippine Collegian and dying to hear U.P. professors and youth leaders speak about the true state of the nation. This libertarian and Enlightenment facets of the U.P. are very much intact till these days.
Furthermore, the Filipinos were already able to veer away from their Anglo-Saxon heritage in U.P. Gradual Filipinization across the decades led to a rediscovery of the Pacific and Asian roots of Philippine culture, and the result was a blending of Western (Anglo-Saxon, Continental) and Eastern (Malayan, Asiatic) philosophy cum pedagogy. The U.P has led efforts at re-engineering the Filipino language from a conversational to an intellectualizing language sufficient for articulating higher level concepts, a re-engineering that continues till these days.
Finally, the U.P. also evolved into the top producer of knowledge and art works for the archipelago. It is the nation’s top think-tank, the bastion of national collective reflection, where we can find the highest concentration of brilliant minds among professors, research scientists, artists and students. All other institutions in the country seek counsel from the U.P. about their core state of affairs, a proof of the maturity and esteem that the U.P had gained across the decades.
Long and arduous will be the route that the state university will traverse yet, but having proved its resiliency and capacity across one century, I am confident that this University will grow and prosper over the next one hundred (100) years of its sojourn. Let us all wish the best of luck for this very noble institution, which may turn out to be the last bastion of freedom for Asia at a time of growing global fascism.
Glory, genius, grandeur!
[20 June 2008, University of the Philippines, Diliman, Quezon City, MetroManila]
Happy Centennial Anniversary to my Beloved Alma Mater, the University of the Philippines!
Being a development expert, I wish to highlight in this briefer the developmental side to the premier university of my beloved country. The University or the Philippines or U.P. is foremost of all an indication of the maturity of Filipino education and educators, in that after 100 years of existence, we as a people were able to show to the world the viability of a grand university run by ourselves (Filipinos).
Tertiary education was imported directly from the West, being transplanted here from Europe during the Spanish colonial era (1500s-1800s). Albeit the idea of tertiary institutes run by Filipinos themselves is a fairly recent development. To be exact, it was only after World War II, coherent with our own independence from the USA, that the striving for Filipino-run tertiary educational institutions became one of the greatest challenges in Philippine education.
The University of the Philippines was constituted by the Americans after the conclusion of the Philippine-American War. When that war ended in 1900, there was a period of intense reorganization of the entire society and state, as well as the reconstruction of the economy that was damaged by two (2) consecutive wars (the Philippine revolution against Spain was the first). In 1908 the University of the Philippines was born.
The idea of a premier state university was not, however, an imposition by the USA on the Philippines. During the brief period of Aguinaldo government (1898-2000), the new Philippine state already prioritized the constitution of such a university in consonance with its desire to establish a modern educational program. The pedagogy of that university, had it succeeded, could have been close to those of Spain’s tops, notably the University of Barcelona and University of Madrid.
But the grand vision of the new republic wasn’t fulfilled as the Americans grabbed that opportunity for self-governance by the new state. However, the Americans themselves realized the soundness of the concept, and so they took on the cudgels for constituting a premier state university. The flagship campus was then the Padre Faura campus in Manila, while the branch outside Manila was the UP College Los Banos. The Philippine General Hospital served as the service arm of the new university. Anglo-Saxon pedagogy and philosophy served as the core foundation, following those of the Ivy League universities.
Americans served as the first professors and administrators of the noble institution. Then, gradually their Filipino apprentices joined the faculty, until the time was ripe for Filipinos to serve as top management officials. Note that it took two (2) decades for such a process to take. When the grand statesman Manuel Luis Quezon became President of the commonwealth, Filipinos were already showing their prowess in administering the university, designing and managing academic programs, launching pioneering research programs, and running classrooms as professors.
The commonwealth government was a testing period for self-governance which incidentally found solid support inside the United States congress and executive. By the early 19040s the self-governance prowess of Filipinos in the state university was already established. So when the USA departed from the Philippines in 1946, Filipinos already had the upper hand in running this institution and there was no great need to import experts (professors and consultants) to run the university.
It was a rough ride all along for the state university. No matter how rough it may have seem, when asked for an opinion, I would prefer to stress the victory of Filipinos first of all in showing the capability to run the university ourselves.
Since that time on, the state university had become the bastion of nationalism and critical thinking in the country. During the dark years of Martial Law, the U.P. became the most powerful lamp that lighted the surrounds for the whole nation, and people outside were dying to read the Philippine Collegian and dying to hear U.P. professors and youth leaders speak about the true state of the nation. This libertarian and Enlightenment facets of the U.P. are very much intact till these days.
Furthermore, the Filipinos were already able to veer away from their Anglo-Saxon heritage in U.P. Gradual Filipinization across the decades led to a rediscovery of the Pacific and Asian roots of Philippine culture, and the result was a blending of Western (Anglo-Saxon, Continental) and Eastern (Malayan, Asiatic) philosophy cum pedagogy. The U.P has led efforts at re-engineering the Filipino language from a conversational to an intellectualizing language sufficient for articulating higher level concepts, a re-engineering that continues till these days.
Finally, the U.P. also evolved into the top producer of knowledge and art works for the archipelago. It is the nation’s top think-tank, the bastion of national collective reflection, where we can find the highest concentration of brilliant minds among professors, research scientists, artists and students. All other institutions in the country seek counsel from the U.P. about their core state of affairs, a proof of the maturity and esteem that the U.P had gained across the decades.
Long and arduous will be the route that the state university will traverse yet, but having proved its resiliency and capacity across one century, I am confident that this University will grow and prosper over the next one hundred (100) years of its sojourn. Let us all wish the best of luck for this very noble institution, which may turn out to be the last bastion of freedom for Asia at a time of growing global fascism.
Glory, genius, grandeur!
[20 June 2008, University of the Philippines, Diliman, Quezon City, MetroManila]
Wednesday, June 18, 2008
RECESSION STAYS, SPIRAL POINTS TO GLOBAL MELTDOWN
Erle Frayne Argonza
The recession stay, the downward global economic spiral will continue for an indefinite time. This is the pattern that we can now see across the globe.
Stock markets have been crashing, going through a freefall for couples of months now. In Manila, the Philippine stock market is down at 2,500+ points as of this morning, or 800 points short of its best performance of 3,300+ late last year. The pattern is true in other stock markets as well.
One thing is clear: this is a global meltdown going on, and the spiral’s turn-around towards more positive gains in the succeeding months. Trillions of dollars have already gone down the drain, loses that may never be recovered again.
Many pockets are getting badly hurt, both from the fund-rich hedge funds and portfolio financiers to ordinary middle class investors. Just about two (2) years ago, everything was bullish in world stocks, most especially in Asia. That situation had since evaporated.
Unfortunately, the harbingers of liberal dogma are still banking on liberalization policies that have proved to be so bankrupt they are, in fact, the very cause of this global meltdown shaping up. The ‘virtual economy’ unleashed by liberalization resulted to looting sprees by fund managers and hedge fund operators, the same money that they partly utilize for corporate social responsibility.
Now the oil price hikes and currency market volatilities have compounded the recession. It’s just mid-2008 by the way, and there’s still the bombing of Iran that we all await as the non-surprise ‘surprise attack’ from neo-cons and Zionist fascists, which will guarantee higher prices for oil and better dollar leveraging power. This will come sooner or later.
Forecasting has been made simpler by anarchic events at this moment. There is no end in sight to the recession, oil prices will still move up, and the recession will lead to a deeper meltdown of the liberal financial-monetary system of casino-style looting by financier operators.
Better do some belt-tightening if you haven’t done this yet. Let’s continue to watch the horrible unfolding of events. Madness and unparalleled greed have shattered the financial-monetary system, the ‘virtual economy’ of predatory financiers.
[Writ 12 June 2008, Quezon City, MetroManila]
The recession stay, the downward global economic spiral will continue for an indefinite time. This is the pattern that we can now see across the globe.
Stock markets have been crashing, going through a freefall for couples of months now. In Manila, the Philippine stock market is down at 2,500+ points as of this morning, or 800 points short of its best performance of 3,300+ late last year. The pattern is true in other stock markets as well.
One thing is clear: this is a global meltdown going on, and the spiral’s turn-around towards more positive gains in the succeeding months. Trillions of dollars have already gone down the drain, loses that may never be recovered again.
Many pockets are getting badly hurt, both from the fund-rich hedge funds and portfolio financiers to ordinary middle class investors. Just about two (2) years ago, everything was bullish in world stocks, most especially in Asia. That situation had since evaporated.
Unfortunately, the harbingers of liberal dogma are still banking on liberalization policies that have proved to be so bankrupt they are, in fact, the very cause of this global meltdown shaping up. The ‘virtual economy’ unleashed by liberalization resulted to looting sprees by fund managers and hedge fund operators, the same money that they partly utilize for corporate social responsibility.
Now the oil price hikes and currency market volatilities have compounded the recession. It’s just mid-2008 by the way, and there’s still the bombing of Iran that we all await as the non-surprise ‘surprise attack’ from neo-cons and Zionist fascists, which will guarantee higher prices for oil and better dollar leveraging power. This will come sooner or later.
Forecasting has been made simpler by anarchic events at this moment. There is no end in sight to the recession, oil prices will still move up, and the recession will lead to a deeper meltdown of the liberal financial-monetary system of casino-style looting by financier operators.
Better do some belt-tightening if you haven’t done this yet. Let’s continue to watch the horrible unfolding of events. Madness and unparalleled greed have shattered the financial-monetary system, the ‘virtual economy’ of predatory financiers.
[Writ 12 June 2008, Quezon City, MetroManila]
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