HVRDS was quoting Adam Smith from the book Wealth of Nations published in March 9,1776.

How bankcruptcy works:

First, it must get approval from world bank and the IMF. (I cannot find a book that a country is allowed to bankcrupt unless all assets will be owned by creditor, the US).The other lenders like China or Germany would have to give permission on a case-by-case basis.)

Second, it must be demonstrably insolvent—the country needs to prove that it can’t make future debt payments or that it has already missed debt payments for lack of funds.
= we are not insolvent because of high overseas remittance revenue.

Third, the country must want to get out of financial trouble, and it must have made a good-faith effort to negotiate with its creditors before filing for bankruptcy.
= the third one is the best way to go… negotiate our interest rates and try to mitigate the loan considered as odious debts.

Leytenian,
Interesting wall street journal article.

“The rich nations are predominantly service economies, with manufacturing having a relatively small share.”

We are not rich,but th service sector is growing,with manufacturing also having a small share.Iba talaga tayo.

Now what happens when the factory of the world becomes rich, another anomaly is bound to happen.

Going to the defense spending;maybe that is what saved the US economy from outright recession for the time being.(but spending for the right reasons, like alternative energy,must happen.)

I wonder if he democrats win,if things would change. Al Gore will certainly be still around, and of course who can forget Bill Clinton.

http://www.tradingmarkets.com/.site/news/Stock%20News/1548176/

now he tells us.ba’t di nya sinabay ito nung senatorial campaign nya,siguro tama na yung PPA exposes nya!Well,timing is everything. But At least I can see where Jude is coming from, based on the link provided.

the historical presentation of hvrds,also told me more on the debts of meralco at the time.Kakapanganak ko pa lang nun, malay ko ba.

http://www.thenation.com/doc/20080519/klare

Preparing for a new System of International Cooperation

http://www.project-syndicate.org/commentary/sachs140

“It is shocking, and worrisome, that public financing remains slight, because these technologies’ success could translate into literally trillions of dollars of economic output. For example, according to the most recent data from the International Energy Agency, in 2006 the US government invested a meager $3 billion per year in energy research and development. In inflation-adjusted dollars, this represented a decline of roughly 40% since the early 1980’s, and now equals what the US spends on its military in just 1.5 days.”

“The situation is even more discouraging when we look at the particulars. US government funding for renewable energy technologies (solar, wind, geothermal, ocean, and bio-energy) totaled a meager $239 million, or just three hours of defense spending. Spending on carbon capture and sequestration was just $67 million, while spending for energy efficiency of all types (buildings, transport, and industry) was $352 million.”

Mirant one of the former owners of the largest IPP’s in the country was in bankrutpcy during the period when they owned their IPP’s in the Philippines.

So since they sold out at a tremendous profit there is no stigma associated with a bankruptcy process.

The entire financial system of the U.S. is now undergoing a quiet bail out by the Federal Reserve which is exchanging U.S. debt papers for their (the private instituions) toxic wastes indirectly subsidizing banks accounts with a contingent debt of the Republic. That is what statism is all about.

Bankruptcy is one way on how to erase all the debasing and devaluation of the peso associated with the energy industry.

Income taxes, duties, VAT and the existing cross subsidy of electric cost is borne by the small middle class. Those consuming 200kwh hours and above. It is like a tax. So we promote the use of jumpers because of the price arbitrage.

Hence residential, commercial and industrial consumers are subsidizing the costs of the have nots. That anomaly makes business and industries cost of power expensive. Then we enable export processing zones also with lower rates to the detriment of high paying domestic industries. We play sectors against each other. All in the name of market competition.

“When national debts have once been accumulated to a certain degree, there is scarce, I believe, a single instance of their having been fairly and completely paid. The liberation of public revenue, if it has ever been brought about at all, has always been brought about by a bankruptcy; sometimes by an avowed one, but always by a real one, though frequently by the raising of the denomination of the coin has been the most usual expedient by which a real public bankruptcy has been disguised under the appearance of a pretended payment. [in a depreciated currency] . . .”

“When it becomes necessary for a state to declare itself bankrupt, in the same manner as when it becomes necessary for an individual to do so, a fair, open, and avowed bankruptcy is always the measure which is both least dishonourable to the debtor, and least hurtful to the creditor.” Adam Smith, The Wealth of Nations…

I doubt if Confucius or Smith could have dreamed of the form or character of currency today but the substance remains the same. It remains an alien abstract of labor!!!!!

Now the next big question is this – do countries with surplus resources have an obligation to share their bounties with the world? Are they free to charge whatever they like for it for themselves only to the detriment of the global common good?

If so which side will be siding with, the U.S. and the West or the emerging economies led by China, Russia, India and Brazil.

Do we settle this through the means of an American led jihad or does the world start to concetrate on preparing and working towards the next revolution in energy generation away from fossil fuels?

As the Chinese say the character for the word crisis in Chinese comes with a side for pessimism and optimism.

I know the side of the jihadists. So far very little in the mainstream media is heard from the optimists.

Man, we still have the Queen in waiting and her own Big Mike to worry and fret about and get more of the same thing soon. Man we should pray for oil to hit $200 a barrel. The turmoil that will surely ensue in some countries might just be good for the planet.

“The United States’ ill-considered bio-fuels subsidy program demonstrates how not to react. Rather than acknowledge that high fuel prices are the best way to inspire energy conservation and innovation, the Bush administration has instituted huge subsidies to American farmers to grow grains for bio-fuel production. Never mind that this is hugely inefficient in terms of water and land usage.”

“Moreover, even under the most optimistic scenario, the US and the world will still be relying mainly on conventional fossil fuels until the hydrocarbon era comes to an end (which few of us will live to see). Last but not least, diverting vast tracts of agricultural land into fuel production has contributed to a doubling of prices for wheat and other grains. With food riots in dozens of countries, isn’t it time to admit that the whole idea was a giant, if well-intentioned, mistake?”
Kenneth Rogoff – The Silver Lining in High Commodity Prices

http://www.project-syndicate.org/commentary/rogoff42

Under the SNITS, individuals engaged in trade, business and the practice of a profession, such as lawyers, doctors, dentists, certified public accountants, architects, artists and athletes, may deduct a standard 40% from gross income instead of the current 10%.

Problem is not in the deduction. It is the non-reporting of the real income of these professionals.