PHILIPPINE FINANCIAL SYSTEM

 

 DESCRIPTION:

Financial System is like the blood and circulatory system.

Institutions that comprise the Phil Financial System / PFS.

·        June 1981 - 2,577 institutions belonged to the PFS

·        1981 – 135 licensed Insurance Companies.

·        2,653 together with CB. The total resources of PFS (excluding CB and Insurance Companies) stood at P258 billion pesos.

·        Of the 2,517 Banking Institutions, 1,034 or 41% are Rural Banks. 33 Commercial Banks. 139 Thrift, Savings, and Private Development Banks.

·        Three specialized got banks (Land Bank, Development Bank with other Financial Institutions made up 48% of the 2,517 institutions of the PFS. Biggest in number – Rural Bank, resources lowest among banking institutions. Assets P156 billion or 60.5% of the PFS assets.

·        Three specialized banks held P8 billion or 31% more than the rural banks

·        30 June 1981- 1,308 Non-Bank Financial Institutions.

·        560 are pawnshops and 361 are financing companies. 78 nonbank thrift institutions. 4 gov't non-banks; GSIS, SSS, Nat'l Investment Development Corp (NIDC), and the Agricultural Credit Administration (ACA).

·        Resources-wise, pawnshops are the smallest – they hold P314 million, 0.6% of the assets held by all non-banks. 0.1% of the total assets of the PFS.

·        13 Investment Houses controlled 17% of the non-bank assets. Non-bank financial institutions hold 20% of the PFS assets.

·        Non-Bank Financial Intermediaries: smaller than banks and have more limited functions.

·        Pawnshops, money brokers, stocks brokers, investment companies, fund managers, venture capital corps.

·        The biggest; investment houses, finance companies, and insurance companies.

                                            

A. Investment Houses - were set up to develop the capital market in our country (the market for long-term funds).

Function – to sell the shares of stock of companies to the buying public. Actively engaged in the short-term money market - conduits for foreign bank lending.

          1.  Unbanking – merges Investment houses and Commercial banks

B. Finance Company - provides loans for the acquisition of house analysts, cars, and household appliances.

C. Venture Capital Corporation – the whose stated purpose is to invest in the equity of small and medium-scale businesses. Operate in partnership with NDC and Human Settlements Development Corporation.

E. CENTRAL BANK (CB).

The government agency that is vested with the authority over the Philippine Financial System / PFS.

Functions:

Banker and Fiscal Agent for the government. Depository of required reserve of commercial banks. Managed the country's international reserves (gold and foreign currency) and external debts. Sole currency issuer (prints and issues Philippine pesos) – as a conduit for facilitating American economic activities in the country.

F. SERVICES OFFERED BY FINANCIAL INSTITUTIONS.

Sending or receiving money from the provinces or abroad. Collecting payments from/for Meralco PLDT, BIR, or insurance companies on their behalf. Disbursing payroll every payday of large companies. Exchanging money/dollars and other foreign currencies for pesos. Administering the wealth of the people. Selling the shares of stocks to other corporations. Buying/selling stocks for clients/buying and selling pesos in the money market.

G. Work Force of the Philippine Financial System / PFS.

·         Of the 46,222 workers employed in a commercial bank in 1981, 37,539 or 81% are rank and file.

·         Bank tellers – handle the window transaction.

·         Clerk-typist – types out a loan, memo,and  bank reports

·         “ Administrative Assistance” a title given to accountants and bookkeepers.

·         Credit Investigators – supply facts and information about its prospective borrowers.

·         Money Market Trader – they work with people or entities and find persons or companies to borrow the fund.

·         Credit Analysts – undertake studies on the viability of lending money to a prospective borrower.

·         Appraisers – inspecting properties to a mortgage with the bank. Assess the value of the property and determine how much the bank is willing to lend to its client.

H. MARKETING ARM OF BANKS;

·         Branch Managers, Senior Bank officers, and Accountant officers – responsible for finding clients for the banks and generating funds/loans.

·         Rank and File employees, messengers, clerk-typists, money counters, filling clerks, telex operators, data processing coders, clerks in various departments, janitors, and security guards.

·         Bank Officers are – Certified Public Accountants, Accountant Officers, Assistant Managers, Managers, Assistant Vice-Pres, Vice-Pres, Senior Vice-Pres, and President.

I.  DOMINATION OF INTERNATIONAL BANKING INSTITUTIONS

UNBANKING IN THE PHILIPPINES

The gov't, foreign interests, and members of the Filipino Elite (mostly Chinese-Filipino Elite) own the financial institutions operating in the Philippines today.

51.6% of its being owned by gov't related institutions. 1981, 28 "private domestic" commercial banks and unionist banks are owned by Filipino Elite: these are

·         Bank of Philippine Islands – Ayalas

·         City Trust – owners of Philex Corp.

·         Consolidated Bank, Madrigal, Texons

·         Manila Banking – Puyats

·         Phil. Banking Corporation – Laurels

·         Prudential Bank – Santos / Pedrosas

·         Traders Royal Bank – Roberto S, Benedicto

Eight with major government equity. These are

·         Associated Bank – Leonardo Ty

·         Commercial Bank of Manila – Herdis

·         Int'l Corporation Bank – Herdis

·         PCI Bank – Meralco grp / Romualdezes

·         Philippine Veterans Bank – Military

·         Pilipinas Bank (formerly Filman Bank) – Silverio

·         Republic Planters Bank – sugar baron R. Benedicto

·         United Coconut Planters Bank – coconut baron
(J §  Ponce Enrile, E. Cojuangco Jr., C Lobregat)

Thirteen are Chinese-Filipino owned:

·         Allied Bank – Lucio Tan

·         China Banking – Sycips / Dee

·         Equitable Bank – Go, family

·         Family Bank – Andrew Gotianun

·         Far East Bank – Jose B. Fernandez / John Gokongwei / Yulo family

·         Insular Bank of Asia and America – Andrew GotianunAboitiz grp / Kalaw      grp.

·         Metro Bank – George Ty

·         Pacific Bank – Antonio Roxas / Chua Jr.

·         Phil. Bank of Communications – Ralph Nubia

·         Phil Trust – Emilio Yap

·         Producers Bank – Henry Go

·         Rizal Commercial Bank – Yuchengco / Sycip

·         Security Bank and Trust – Ramon Siu / Phil Ang /

§  Willy Go / Roland Gapo


INTERLOCKING DIRECTORATES - Define as the simultaneous holding of position in the Board of DireDirectorsBank B and in Company C.

Ten Banking groups dominate the Philippine Economy.

1.       Rizal Commercial Banking Corp., China Banking grp. Sycip / Yuchengco grp interlocks with 164 companies In 25 industries.

2.       Far East Bank and Trust Co. - Fernandez/Yulo/

3.       Gokongwei grp – interlocks with 112 companies in 37 industries.

4.       Manila Banking Grp - Puyat family interlocks with 84corp in 17 industries.

5.       UCBP Grp – Ponce Enrile/Cojuangco/Lobregat Interlocks with 81 corps in 16 industries.

6.       Bank of the Philippine Islands – Ayala's interlocks with 68 firms in 15 industries

7.       PCI BANK Grp – Romualdez/ Cuenca/ Meralco grp. Interlocks with 63 firms in 15 industries.

8.       Filman Bank – Silverio interlocks with 55 companies in 18 industries (Pilipinas Bank)

9.       Insular Bank of Asia and AmericaGotianun/AboitizKalaw interlocks with 40 companies in 18 industries.

10.    Pacific Planters Bank, Traders Royal Bank – Elizalde/Benedicto interlocks with 38 com. In 20 industries. Phil. Banking Grp – Laurel/Ortigas interlocks with 38 companies in 16 industries.

 

FUNDAMENTAL WEAKNESSES OF THE PFS

Heavy reliance on short-term borrowings or in other words the non-existence of a stable and semi-permanent supply of money.

The emergence of the money market as the system through which money could be made available to businesses.

Lending by banks and quasi-banks of these short-term funds to businesses on a long-term basis or mismatching of funds of term transformation.

The lack of available supply of even short-term funds (because of IMF and CB restrictions on the growth of money supply and domestic credit) makes the money a highly volatile one. The concentration of lending to a selected group of big business Foreign and gov't corporations.

 

ROLE OF GOVERNMENT IN THE PHILIPPINE FINANCIAL SYSTEM / PFS

To convert its loans to distressed companies into equity. Ex, 1981, P6.58 billion have been an infusion of gov't agencies, DBP, NDC, Land Bank, and SSS. In Feb 1983, P3.9 billion worth of CDCP's loan to gov't financial institutions was set into equity.

To give more loans to distressed companies and/or guarantee loans given to them by private financial institutions. Ex, 16 Feb1981  LOI (letter of intent) 1107. A P5 billion industrial rehabilitation fund scheme was set up.

To set up a credit exchange information bureau. Ex, LOI no 1107 exposure of 20 million pesos and above must be reported monthly, and those above P1 million must be reported quarterly.

To set up holding companies. Ex, DPB and NDC set up subsidiaries to supervise distressed companies in which they have substantial exposure in equity, loans, and guarantees.

 

FINANCIAL REFORMS INITIATED BY THE GOVERNMENT IN 1980

Joint IMF-WB study of the PFS. The establishment of an Offshore Banking System / OBS.

Merging of several Private Commercial Banks together with foreign Banks to satisfy the 1973 mandated requirements by CB-IMF of a higher capital base (P100 million from P20 million).

That the economy was not generating an adequate supply of long-term funds.

 

OBJECT OF THE REFORMS

Greater efficiency through increased competition and economies of scale. Greater availability and use of long-term funds. To encourage these reforms: minimized the difference between banks and quasi and -banks, eliminate all functional distinctions among the types of thrift banks – Private Development Saving Bank.

Increase the power and function of quasi-banks. Remove most ceilings on interest rates on deposits and loans (repeal the anti-usury law)?

Introduced expanded commercial bank unit banking.

Unbanking is no other than the concentration of banking into the hands of a handful of bank oligarchy.

 

UNBANKING

Referred to as expanded commercial banking. It takes the functions of a commercial and an investment bank. Provides a broad range of financial services for its clientele. Unibaking legitimizes the monopoly position of those who control the economy.

Unbanking must have a minimum capital of P500 million and more foreign capital will come in or in the end, merges with other financial institutions.

Unibank owns 30% of the equity of commercial banks or up to 100%. Likewise, they own 100% equity of all non-financial allied undertakings or 35% of the equity of non-allied undertakings.

AllowingUnibanks to invest in allied undertakings in effect gives foreign owners interest in the economy. Unbanking reinforces the union of finance with industry and allows the continued hold of foreign interest over the economy.

 

THE IMF AND WORLD BANK

World Bank was established as a major source of development funds within the capitalist economy. While the Int'l Monetary Fund acts as an int'l monetary system that would support and promote free trade and investment against all barriers and forms of protectionism (capital and financial imperialism).

The IMF had 146 member countries. Voting power is controlled by the US, UK, West Germany, France, and Italy Altogether they hold 40% of all WB votes.  

IMF/WB are related to each other because members of the bank shall be those members of the IMF.

 

INTERNATIONAL FINANCE CORPORATION AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION

The IFC acts as the WB's investment arm for private ventures. While the IDA provides "soft" loans (loans at very low interest) to the least underdeveloped countries.

We received our first loan amounting to $10 million. As of 1981, our outstanding debt to the WB stood at $30 billion.

Most of these loans were “project loans,” such as population planning, roads, and irrigation, education, hydroelectric power, rural electrification, fisheries, and ports. These are all for infrastructure programs.

1.      In  1980 WB introduced, a Structural Adjustment Loan / SAL is a program loan. It focuses on the entire sectors of the economy; Agriculture, Industry, Finance, and Energy.

2.      SAL is usually approved for the Extended Fund Facility or EFF with extensive Bank fund collaboration to achieve leverage over the macro policy of the economy.

 

CONDITIONS ACCOMPANY IMF LOANS

Reduction of domestic demand; comprehensive interest rate reform limiting the growth of money, supply, and domestic credit.

Removal of price control over (domestic) essential goods for domestic consumption. In other words, liberalization.

Increase government revenues and decrease government spending by; raising indirect taxes (specific tax on oil products, cigarettes, alcohol).

Reducing, and eliminating subsidiaries (rice subsidy). Li milting budget deficit to 39% in 1982 to 2.4% in 1983 and for 1984.

Reduction of an overall balance of payment deficit through; the adoption of a floating exchange rate system, devaluation, import and export control (import flow freely into the economy) and, foreign exchange flow freely in and out of the economy.

 

POLICIES ADOPTED BY IMF/WB TO THE PHILIPPINES

Opening the economy to the international economy and free trade. Encouraging foreign investment, and promoting exports. Controlling labor and wages (cheap, skilled but docile labor force).

 

IMF/WB CONTROL THE ECONOMY

They control and dictate the thrust of the economic policies and determine which policies are adopted by the gov't.

As part of the economic program submitted to them, the IMF/WB will release the loans after the gov't makes the changes they require. They bring in highly trained technical leadership in the gov't helping them to achieve policy objectives that they endorse.

The borrower may not borrow any more loans from any other institution without prior approval of the WB local conduit. The borrower must admit an executive of the local financial institution into its board of directors.

APEX DEVELOPMENT FINANCE UNIT

Apex loan is a combination of WB and Private Transnational Bank lending to enterprises based in the Philippines. Available only to Export-Oriented and Labor-Intensive Businesses; mining, textile, food production (canning), energy-related industries, and for "new and expanding" projects of these industries. The agency that would review all-out commercial borrowing.

 

GLOBAL BANKING

Transnational Banks – are a special breed of transnational corporations. Their field is international finance – exporting finance capital.

They operate on the wealth and savings of their depositors. They are able to generate and control these funds on a global scale. This gives them tremendous power in deciding which economy and gov't get bailed out. In supporting TNTNCsnd and their activities worldwide, helping third world elites to secure their wealth and power.

·         Sep 1981, $1.423 trillion assets of banks from the industrialized countries.

·         5x bigger than international reserves held by monetary authorities of the industrialized countries.

·         16x bigger than international reserves held by monetary authorities of the Oil Exporting and developing countries.

·         66x bigger than international reserves held by ASEAN monetary authorities.

·         476x bigger than int'l reserves held by Phil monetary authorities in 1980.

 

GLOBAL BANKING was in essence, finance imperialism. This is an extension of colonial imperialism which was brought about by the British colonial empire.

Ex. Chartered Bank of Australia, Bank of India, Hong Kong, and Shanghai Banking Corp., the Anglo-Saxon American Bank, and the British Italian In Corporation.

In 1977, 70% of the 300 largest banks in the world came from the US, Japan, West Germany, Italy, France, TNBs the UK. TNBs of these 6 countries held 75% of the total assets of the top 300 largest banks.

Because TNB operates on a global scale, it is inevitable for banks to follow suit as industry trade and finance cannot exist without each other.

 

CONTRIBUTIONS TO THE EXPANSION OF TRANSNATIONAL BANK

SUPPLY FACTOR – thru-dollar the market for European countries / petro-dollar.

DEMAND FACTOR – this is just simply more borrowing because of the balance of payment / BOP.

TECHNOLOGICAL FACTOR – the computerization of the int'l finance system for efficient int'l cash management service. SWIFT – Society for Worldwide Inter-bank Transfer.

DOMINATION OF BANKING AND FINANCE IN THEIR OWN COUNTRIES

In 1974, in the US 12% of the total 14,500 banks held 22% of domestic assets and 74% of the overseas branch assets.

1976, 3 The largest French Nat'l bank controlled half of the assets of all French banks.

1976, the 2 largest Dutch commercial banks held over 314 of all commercial bank assets in Holland.

TNB must dominate banking in their own countries. TNB is intimately related to industrial TRANSNATIONAL Corporation / TNC.

In Japan, banks and industrial corporations are part of a business structure called the modern ZAIBATSU.

ZAIBATSU – is a “big business group” or Finance-Industrial Combine. Each zaibatsu has a core bank, a core trading firm called SOGO-SHOSHA. Inside Sogo-Shosha is a treasury and finance department that engages in some banking activities of a scale equal to that of the bank.

 

SIX MODERN ZAIBATSU

MITSUBISHI GR P (28 companies) – Bank, Corporation Heavy Industries, Mining and Cement, Chemical, Industries, Petrochemical, Rayon, Metal Estate, and Electric

SUMITOMO GRP (21 companies) – Bank, Metal Industries, Chemical, Corporation, Nippon Electric, Electric Industries, Realty and Development, Coal Mining, and Bakelite.

MITSUI GRP (23 companies) – Bank, Mitsui and Co., Real Estate Development, Mining. Tohatsu Chemical, Toray Industries, Oji Paper, Toyota Motor, Construction, and Toshiba.

FUJI BANK GRP (29 companies) – Bank, Marubeni, Nippon, Kokan, Hitachi Ltd, Nissan Motor, Showa Denko, Kubota, Hodogaya, Chemical, Oki Electric Industry, and Toho Rayon

SANWA BANK GRP (39 companies) – Bank, Teijin, Nissho-Iwai, Kobe Steel, Hitachi, Shipbuilding and Engineering, Ube Industries, Nichimen, Tokuyama Soda, and Unitika.

DAI-CHI KANGYO BANK GRP (45 companies) – Bank, C. Itoh and Co., Furukawa Electric, Fujitsu, Nippon Light Metal, Kawasaki Steel, Kawasaki Heavy Industries, Shiseido, Kanematsu-Gosho, Fukukawa Co., Nissho-Iwai and Kobe Steel.

The US gov't is pushing GATT members to allow foreign banks to operate in the countries on an equal footing as domestic banks. This political move is consistent with recent commercial overtures by the big international US bank which is attempting to create inroads into the domestic market all over the world (May 1982). TNB views third-world countries as a market for transnational bank loans.

TRANSNATIONAL BANK ON THE ISLAND OF LUZVIMINDA (PHIL)

Ten US Banks in the Philippines

1.      CITI BANK

2.      BANK OF AMERICA

3.      CHASE MANHATTAN

4.      MANUFACTURERS HANOVER

5.      JP MORGAN

6.      CONTINENTAL ILLINOIS

7.     CHEMICAL BANK

8.     FIRST NATIONAL BANK OF CHICAGO

9.      SECURITY PACIFIC BANK

10.  BANKERS TRUST

Major borrowers of Transnational Bank

1.       Government
2.       Philippine branches and subsidiaries of TN
 3.       Corporation in the top 1,000

RP's OUTSTANDING BORROWINGS FROM BANK FOR INTERNATIONAL SETTLEMENT STATISTICS

1981, $9.9 billion from private bank int'l banks. According to the institutional investor, the Phil ranks 62 among 105 countries rated by several banks.

 

LIST OF INTERNATIONAL BANKER'S NIGHTMARE

Poland, Mexico, Argentina, East Germany, Brazil, Nigeria, Chile, Zaire, Yugoslavia, Bolivia, Venezuela, Peru, Tanzania, Sudan, Philippines, and Romania...

 

TNB's risk lending to the Philippines for the following reasons

·         The IMF/WB will not let the Philippines default on its loans to transnational banks.

·         The US gov't will not allow Phil to default on its loans to the transnational banks.

American banks through commercial credits and long-term loans add a major and important dimension to our participation in the Phil economy.

TNBs have begun to realize only now that it was a mistake to lend so much to the Phil and other Third World countries.

While it is clear that there is a crisis (in the international financial system) it is less clear whose crisis it really is. When you owe the bank ten thousand dollars and can't pay, you're in trouble. When you owe the bank ten billion dollars and can't pay, the bank is in trouble.

 

GOV'T CORPORATION BORROWS FROM TNB
·         Sep 1982, Nat'l Power Corporation borrowed an estimated $533.2 million
·         Development Bank of the Phil / DBP $220.5 million
·         Phil Nat'l Bank $545 million for a total of $1,298.7 million
·         $50 million from Lloyds Bank London for the Light Railway Transit.
 
OPENING THE DOORS TO TRANSNATIONAL BANKS / TNB
With the declaration of Martial Law in 1972 the doors were wide open to allow and encourage TNBs to penetrate the Phil Financial System.
Following the recommendation of a joint IMF/CB 1971 Bank was required to raise its capital to a minimum of 100 million pesos.
So to comply with this provision some banks had to accept foreign bank capital; others had to accept and merge with foreign bank capital.

Thus facilitating the creation of Financial Oligarchy and Industrial Monopoly Capitalism – reaffirms the concept of Bureaucrat Capitalism.

PHILIPPINE BRANCHES OF TRANSNATIONAL BANK (TNB) 4 BRANCHES

1.      Chartered Bank (1873)

2.      Hong Kong and Shanghai Bank (1875)

3.      Bank of America (1947)

4.      Citibank (1902)       

Assets of the Four Branches

1982, 31 Dec. P26.6 billion of 13% of all 34 commercial banks. Capital accounts as of the same period amounted to P557.4 million.

TNB has a representative office but cannot accept any deposits, nor does it have any dollars to lend. But it can generate business for its head office by identifying prospective borrowers.

 

OFFSHORE BANKING

Offshore banking means doing business with non-residents. Transacting business that is not based in the Philippines. But Philippine-style offshore banking is in fact a mixture of Offshore and Onshore banking.

The gov't envisioned Manila as the Regional Finance Center in Asia. It hoped to compete with the highly sophisticated finance centers of Hong Kong and Singapore.

To realize this plan the gov't provided tax incentives to Offshore Banking Units by paying 5%a taxes on both the Onshore and Offshore earnings. But a 5% income tax on offshore earnings was abolished by PD 1773.

 

FUNCTIONS OF OFFSHORE BANKING UNITS

Accepting deposits and lending them (dollars and other foreign currencies).

OBUs are not to lend in pesos. But they do so through an arrangement with the Central Bank and with the h Foreign Currency Deposits Unit / FCDU of local banks.

PD 1035 allows FCDU to exchange dollars for pesos with the Central Bank and lend the pesos (swap loan). So FCDU can lend pesos through swap loans of FCDU.

 

INCOME OF OFFSHORE BANKING UNIT /OBU

1.      Offshore and Onshore.

           ·   BIR regulation No. 14-77 (9 Nov. 1977) included as offshore income all fees,        commissions, and other non-interest charges on loans of OBUs to residents.

·    Actually onshore income is being disguised as offshore income. By doing this OBU obtain an additional tax bonus. It has become a common practice among OBUs to pass on the onshore taxes to their clients.

·     In effect, OBU does not pay any taxes at all as their clients shoulder little taxes they are required to pay.

2.      Offshore income makes up 70% of all loans, although offshore loans are only 23% of total OBU loans (1981).

·         1981, $3.4 billion loans of OBUs to RP-based borrowers.

·   $4.4 billion as of the end of 1981. 25% of loans to the Foreign Currency Deposits Unit are onshore loans.

·      78.5% of Offshore Banking Unit, onshore loans exposure to RP-based borrowers.

·   It offers foreign banks for lending onshore, thus they penetrate domestic markets for loans.

3.      The OBU need not comply with the requirement to deposit $ 1 million in the Central Bank.

 

OBU's bid for Domestic Banking Function

2.     Strengthening of foreign control over the Philippine Financial System and the Economy.

3.      Possible bankruptcy of local financial institutions.

4.      Retrenchment and lay-off of bank employees due to bankruptcy.

 

UPDATES INFORMATION: PHIL FINANCIAL SYSTEM

·         Expanded Commercial Bank (EKB)

·         Bank of the Philippine Islands

·         Phil. Commercial Int'l Bank, PCIB

·        Rizal Commercial Banking Corporation

·        Far East Bank and Trust Company

·         Solidbank Corporation

·         Philippine National Bank

·         Allied Banking Corporation

·         Land Bank of the Phil.

·         Metropolitan Bank and Trust Co.

·         United Coconut Planters Bank

·         China Banking Corporation

·         Citi trust  Equitable

·         Banking Corporation

·         Prudential Bank

In authorizing banks to perform EKB functions, the CB looks into their competence, experience, and adequacy of facilities as reflected in the following factors;

·        liquidity, solvency, and profitability

·         Past performance of management in the operations of the bank.

·         General compliance with banking laws, CB rules, and instructions of the Monetary Board.

·         Managerial reorganization or potential capacity to provide international banking expertise.

·         Adequate staffing, equipment, and other facilities to meet its expanded functions including international correspondent bank relationships.

·         Unbanking requires a minimum capital of at least P 1.5 billion. Jan-July 1992, P4.233 billion. July 1993, 4.967 billion total assets of KB's.

 

Research finished: 1993 (Phil. Social Science Center)

 

UPDATES ON TRADE AND INVESTMENT 2005

·         99.2 billion Total US spending on information technologies by businesses in the Asia-Pacific region and in Japan in 2005

·         7% average growth of Philippine small businesses in 2005.

·         3.6 million. A number of people employed by small businesses in the Phil.

·         3.4 million. A number of people are employed by Philippine medium-sized businesses.

·         1.02 million. The number of small businesses in the Phil.

·         80,780 the number of medium-sized businesses in the Philippines.390 million. Total dollar revenues by Philippine small businesses.

·         124 million. Total US dollar revenues by Phil medium-sized businesses.

·         518 billion. The total amount of business loans needed by 64 thousand of SMEs to keep their business moving. According to Japan Int'l. Cooperation Agency.

·         13% average expected growth for Philippine small businesses for 2006.

·         7.9 billion. Total loans to SMEs by gov't financial institutions in the first quarter of 2006.

·         25% of the number of Philippine small businesses that own computers.

·         85% of the repayment rate of SME loans to Planters bank, helps debunk the myth that small enterprises are high-risk creditors.

·         4,953.75% actual export versus the target of region 8 (eastern Visayans)

·         30 million. Number of SMEs in the Asia-Pacific Region

·         Pyramid of small businesses; 0.1% 45,000 firm's large businesses employed 1000+ workers, 0.7% 525,000 firm's medium-businesses employed 100-999 workers, 99.2% 73.4 million firms small businesses employed 1-99 workers.

 

 

 

 

Theoritical Physics

 According to the basic foundation of theoretical physics; like signs repel and unlike signs attract. Now we're going to examine this theoretical premise if this is true by application and by mathematical computations...

Like signs repel and unlike signs attract. Let's try to express this in mathematical terms. Let's apply the addition of signs and unlike signs...

If we have +5 +5, the answers will be +10. It follows that if we have -5 -5 answer will be -10. But if we have -5 +10 the answer will be +5 or if +10 -15 the answer will be -5...

Now according to the basic theoretical physics; like signs repel. But in the case of addition by like signs, we have a different answer. It follows that the addition of such signs only shows to us that it adds up or only increases (add) the value of the two given numbers. The addition of the union signs suggests that a new answer will be resolved. Instead of increasing the value of the two given numbers, it decreases (subtracts) the value by half...

Our answer should be; like signs attract and unlike signs repel. Which is now the opposite of the very foundation of theoretical physics...

We have to show through basic mathematical equations that the basic premise of theoretical physics doesn't conform to the basic laws of the four fundamental operations (additional, multiplication, subtraction, division)...

Based on our findings we can now formulate for basic electricity; where I – is current and E – is the voltage. Thus our new formula will be;

I=E or I=E2. We can currently equal to voltage or we can interchange the formula with E=I. It shows also that formula is now congressional with Albert Einstein's Einstein's E.m2. Energy is equal to the mass times the speed of light. Now we have a unified theory of quantum physics...

Resistance in this manner is no longer applicable and all conductive objects are but a medium from which the electrical current is traveling and the speed of light. What is 1-ohm resistant compared to the speed of light which is 186,000 mi/s or 300 million m/s? Non-sense – not applicable. No resistance is produced.

The role of science here is not to predict each molecule is traveling and an instance in free space. The major point is that they are not. Science has the ability to observed and analyzed each important evolutionary event in the intergalactic and cosmological universe, however it has not been able to ascertain accurately the position of each tiny particle of molecules and any point of perspective. Just as you can't hit the epicenter of an earthquake on the earth's plate tectonics. nBy nature, molecules are interacting with each other. They move in different directions with constant speed but don't collide. Molecules can be seen by the naked eye. They are very small matters, very smart. They have glossy, white color and very bright. Union, recombination, chemical, and physical changes are but the characteristics of internal and evolutionary movements of molecular matters. Even for a minute (quanta) structure of matters and energy, there is no suggestion that molecules are colliding and exploding. It has been confirmed that energy can be trained nor destroyed. Energy and all its combined elements will be existing forever – forever. Thus, the big bang theory is wrong.

The new formula will lead us to conclude that there is no electrostatic energy (stationary) and that the potential and kinetic energy is always present in every living matters in the whole universe; dust and gaseous molecules, nebulae, the quasar, pulsar, the planets, galaxies, and the galaxies of the Milkyway, are but a different manifestation, configuration, transformation, metamorphosis, and dynamic transformation of the electromagnetic field force and the laws of nature.

Space provided us a ready-made macro-micro environment in which all ingredients for the formation of basic building blocks of life are ever-present forever. Space is an environment that all living organisms have a chance for survival and will be tent to flourish. It has furnished us with an unlimited time frame for evolutionary creation. Thus the space-time continuum is a holographic picture from all life's forms that can be observed and viewed artistically, poetically, realistically, scientifically. Space itself, in reality, an extremely boundary living furnace where all other evolutionary dynamic forms of life can be created.

Generally, outer space is a vast reservoir of unlimited and free electromagnetic fields that force energy. Technicians, Engineers, Scientists, and Technologists have only need to invent a device or mechanical instruments with self-generating power (reverse technology) to tap the natural energy from free space. Natural energy is omnipresent, omniscient – all-powerful.

The possibility of creating the impossible cases is always present in this world. We have to actually do that.

Nature favors beings who follow it course. Our mind will be guided by just letting the ways of nature run its own. Nature is simply the summation of the inter-galactic and cosmological universal intelligence. That's what the splendid beauty we seek seriously. It's a fade.

We must observe and obey its laws carefully and respect its awesome power.

What do I want to prove here? The foundation of physics law is wrong because of the movement of natural things in the world, things are not really negative or positive, it depends on how we propose or adapt the law of natural energy into our lives. A big part of it, but also all free for mankind...

Next Freedom...

Social Revolution and State

"How Darwin discovered the law of the development of organic nature, Marx also discovered the law of the development of human history: the simple fact, until now hidden by the extreme growth of ideology, that humanity must first of all eat, drink, have a place to live and dress, before it pursues politics before it pursues politics, science, art, religion, etc.; that therefore making an immediate material approach, and thus the degree of economic development achieved by a particular person or during a particular period, builds the foundation on which the institutions of the state, the legal concepts, the arts, and even religious ideas, of those concerned, have progressed, and in the light to which they should, therefore, explain, rather than the opposite, as it has always been."

This is something that should or should be the right role of the State in the history of mankind.

The basic needs of the individual, particularly women and men, come here to build relationships and society of the Earth. Of course, there is what we call love, feelings, feelings, and love in Human culture on Earth. Again this concept is general. We don't take it away from the State building. A state with no love, or care and no general love for its race, is a dead creature on Earth. It is useless.

The question for all is what should be the most important role of the State in the Lives of People in Society? It's still leadership, isn't it? As well as the man's sperm inside the uterus when it encounters the woman's egg in the Fallopian tube or Uterus swims to meet it inside and says "get in" The sperms are in unity to meet the egg.

The sexual reproduction of humans and the propagation of the race follows the creation of reproduction for the sustenance of the human race to survive.

Where in the World do you take these people without a clear goal of ruling the race of men.

Racial Instinct is different from Racist Ideology. Self Preservation and Racial instinct.

This relationship between man and woman is the foundation or basis of the creation of the human race. This is where the development of tribes, towns, and communities began. You take care of that community. You will defend. That's why you have a defense or an army.

Clans of tribes and families. These families formed an alliance based on their social progress, including the wealth they created and cultivated, from the labor of their countrymen, relatives, or race. It has deep emotional ties to build community. That's why there were heroes in other places in ancient times.

To maintain this relationship of social development let's create a type of management that will ensure the growth of society the way of establishing a state power, administration, leadership, or management.

Governance is different from the concept of rule.

The management of things in society does not require a violent army of rulers, but only a kind of administration. This is not an instrument for you to subdue your own people.

The resources accumulated over time in the development of clans and kin, it created an artificial class. This is where the ingenuity of other relatives and good care of the resources that were left to them or that their relative joined the tribe came into play. However, their property remained communal. Some have been creative in their lifestyles, while others have no appreciation for their heritage.

In establishing state power, the Marxist Leninists separated from the National Socialists with regard to State power.

Instead of using the artificial division of people by class as a weapon, for society to progress, the National Socialist did the opposite, he used it as an instrument for the development of the race he leads, instead of fighting against the relatives who are already separated for a long time but with patriotic feelings, seeking National Unity. The former tribes, peoples, and races have longed for National Unity and Identity. This is where the concept of "Nation-State" was born.

How will social order be maintained?

The Marxist solution to this conflict is to establish the dictatorship of the proletariat. Others such as Liberal Democrats, National Democrats, Social Democrats, and Socialist Democrats serve the people of the State and follow the laws assigned by the government or follow the personal whim of the individual, and his life, or be a "welfare" state" as if the state is only a provider of immediate needs in an economic way. They do not have a clear stance on what is the historical role of the State in human and race development.

For the Anarchists, the complete abolition of State power was the solution because it was a tool of the ruling class to rule over others. Naturally, all types of dictatorship and totalitarianism are natural enemies of Revolutionary Anarchist Ideology.

Is the National Socialist People's State a type of dictatorship in class or race? Nope. We're going to fight over there.

The National Socialist used the State Power to become an instrument of the development of the Nation he leads. This means that its role has been reversed, instead of civilizing the people in the State, the State has become the tool for the development of the people it leads and not intensify the conflict of classes.

The State can embrace the good qualities of the people, the ingenuity and talents of the people, and their intelligence. The race and people that are the substance of society are the reason why there is State power. It means that the State is only a tool or instrument in the important goal of the development of human nature.

The state is just a means to an end. The state is the Vessel or Ship and the Substance of the Passengers is the Racial Stock.

For Marxists, it is an instrument to suppress the bourgeoisie, the dictatorship of the proletariat against the capitalist people.

As a National Socialist, use the country's capitalist wealth to develop the race you lead. It means you subordinate the interest of capital to the material forces of society so that people can develop.

The National Socialist is the brain, and capital is its slave to civilize the race and people. In this order and social perspective, it is natural that the labor power of people or workers is more important instead of the capital that rules the society.

You do not enslave the people, the industries and agriculture, or all the material resources of the society you submit to the disposal of the Race and the State that represents it.

Capital and the material wealth of that communal society which is the property of the whole race is the slave of the National Socialist Folk State.

This is indeed the National Socialist State of the People and Race. Is it clear or vague? Who has a clearer vision regarding the proper use and function of State Power?

The National Socialist Estado ng Taumbayan is the Ship and those on board are the substance but the race or people that are being led...

Program of the National Socialists National Socialist 25 Point Programme

1. We demand the Union of all Filipinos in a Great Philippine-based on the Principle of Self-determination of all Peoples. (One Nation, One Leader, One People).

2. We demand that the Filipino People have rights equal to those of other Nations: and that the Unequal Treaties shall be abrogated.

3. We demand Land and Territory for the maintenance of our People and the settlement of our surplus population.

4. Only those who are our fellow countrymen can become citizens. Only those who have Filipino Blood regardless of Creed can be our Countrymen.  Hence no aliens can be members of a Nation.

5. Those who are not citizens must live in the Philippine as foreign and must be subject to the Law of Aliens.

6. The right to choose the government and determine the laws of the State shall belong only to Citizens. We, therefore, demand that no Public office of whatever nature, whether in the Central Government, the Provinces, or the Municipality shall be held anyone who is not a Citizen.

7. We wage war against the Corrupt Parliamentary Administration whereby we are appointed to post by favor of the Party without regard to Character and Fitness.

8. We demand that the State shall above all undertake to ensure that every citizen shall have the possibility of living a decently earning a livelihood. If it should not be possible to feed the whole population, then aliens (non-citizen) must be expelled from the Land.

9. All Citizens must possess Equal Rights and Duties.

10. The first duty of every citizen must be to work Mentally and Physically. No individual shall do any work that offends against the interest of the community to the benefit of all. 

Therefore We Demand:

11. That all unearned income and all income does not arise from work, be abolished.

12. Since every war imposes on the People's fearful sacrifices in Blood and Treasure all personal profit arising from the War must be regarded as treason to the People. We, therefore, demand the Total Confiscation of all War Profits.

13. We demand the Nationalization of all Trusts.

14. We demand profit-sharing in large industries.

15. We demand a generous increase in all-age pensions.

16. We demand the creation and maintenance of a Sound Middle Class, the immediate communalization of large stores, which will be rented cheaply to Small Trades People and the strongest consideration be given to ensure that small traders shall deliver the supplies needed by the People, by the State, the Provinces, and Municipalities.

17. We demand an Agrarian Reform in accordance with National Requirement and the enactment of a Law to expropriate the Land grabbers without compensation of any land needed for the Common Purpose. The abolition of ground rents and the prohibition of all speculation in land.

18. We demand that the ruthless War be waged against those who work to the injury of the Common Welfare. Traitors, Usurpers, Profiteers, etc., are to be punished with death regardless of Creed and Race. 

19. We demand that Roman law, which serves a Materialist Ordering of the World be replaced by the Philippine Ethnic and Indigenous Common Law.

20. To make it possible for every capable and industrious Filipino to obtain Higher Education and thus the opportunity to reach into a position of Leadership, the State must assume the responsibility of Organizing thoroughly the Entire Cultural System of the People and Race.

The curricula of all Educational Establishments shall be adapted to Practical Life. The conception of the State Idea (the Science of Citizenship) must be taught in the Schools from the very beginning, that specially Talented Children of poor Parents, whichever their station or occupation, be Educated at the Expense of the State.

21. The State must help raise the Standard of National Health by providing Maternity Welfare Centers by prohibiting Juvenile Labor by increasing Physical Fitness through the introduction of compulsory games and gymnastics, and by the greatest possible encouragement with the Physical Education of the Young.

22. We demand the Abolition of the Regular Army and the Creation of a National Socialist Folk Army.

23. We demand that there be a legal campaign against those who propagate deliberate political lies and disseminate them through the press. To make possible the creation of a Filipino Press we demand:

a) All editors and their assistants on newspapers published in the Filipino Language shall be Filipino, Citizens.

b) Non-Filipino Newspapers shall only be published with the express permission of the State. They must not be published in the Tagalog Language.

c) All financial interests In or in any way affecting Filipino Newspapers shall be forbidden to non-Filipino by laws and we demand that the punishment for transgressing this law be the immediate expulsion of the non-Filipino from the Land.

Newspapers transgressing against the Common Welfare shall be suppressed. We demand legal action against those tendencies in art and literature that have a disruptive influence upon the Life of our Folk, and that any organizations that offend against the foregoing demand shall be dissolved. 

24. We demand Freedom for all Religious Faiths in the State in so far as they do not endanger its or offend the Moral and Ethical Sense of the Filipino Race (Lahing Kayumanngi).

The party as such represents the point of view of a positive Christianity and Islam without binding itself to any one particular confession. It fights against the Materialist Spirit within and without, and is convinced that lasting recovery of Our Folk can only come about from within on the Principle: COMMON GOOD BEFORE INDIVIDUAL GOOD.

25. To carry out this program, we demand the creation of a Strong Central Administration in the State; the Unconditional Authority by the People’s Political Organization of the Whole State and Society.

The formation of Professional Committees and of committees representing the several Provinces of the Land to ensure that the Laws promulgated by the Central Leadership shall be carried out by the Autonomous/Independent Organization.

The Leaders of the Party undertake to promote the execution of the foregoing points at all costs, if necessary at the sacrifice of their own lives.

The Supreme Duty of the National Socialist People’s State is to Protect, Defend, and Serve the Racial Stock…

National Socialism: Natural Law and Order

National Socialism, ultimately is the application of Nature's Laws to Human Civilization: to reintroduce Humankind (Particularly Aryan Kind. Generally all Races) to the laws which in the recent millennium, they have forgotten those same laws that gave birth to them, and this entire Universe. National Socialism is therefore mankind realizing, understanding, and living in accordance with Nature.

Nature's first and foremost Laws are survival and propagation of only the fittest. Those that are healthy enough, strong enough, and most adaptable to the constantly changing conditions are what Nature deems worthy of life on her Planet. This is a very rough and relentless Law to be sure and could be looked at in a number of different ways which may or may not be correct. It is a rule which is quite often taken out of context.

National Socialism adheres to this law strictly unto it as a sacred and eternal Law. But as National Socialists, we stray from becoming animalized by the simplicity of this Law – Instead, we have ideas that we attach to it. We want the intensification of civilization: we want mankind to advance itself rather than become more primitive.

We want it to become more adaptable and more powerful and at the same time more Humble, Intelligent, and Creative. We want a Race in Harmony with itself and with Nature – not a pack of snarling Beasts ready to kill one another in order to survive…

PAMBANSA SOSYALISTANG REBOLUSYON

NATIONAL. Respect the honor and well-being of our country and nation. The strongest or strong leadership or foundation of the administration depends on race It was the first time in a long time that it had been united and surrounded all the cultures and the majority of ethnic and indigenous minorities belonging to our race. the social ownership of our people. 

National Socialists are people who love the environment and society.

Move forward for National Unity, Liberty, and Self-Reliance. The amazing Personality of the National Socialist People's State also reflects the great honor of the nation.

SOCIALISM promotes the protection of our ecology and society. are people who love the environment and society.

Social or Social where it relies on maintenance, propagation, and that reform of life and race.

The balance or good relationship is established by Social Production and Sexual Production of Race for the General Health of the people. The Production of Social Enterprise Between Agriculture, Industry, Finance, and Labor, should be strictly connected to the practical needs of people, Race, and Country.

Sexual Production Must Be Strictly Advanced for High quality or quality of person to be responsible citizens and willing to do all social responsibilities.

A social system that relies on the maintenance of the Race Stock. It's a great sexual reform of life and race, health, the physical and intellectual strength of women and babies, and Young People. The Lahing Kayumanngi embrace and promote the Great Purpose and Principle of National Socialism...

NATIONAL SOCIALIST – SOCIALLY HUMAN.

Feudal Capitalist Patriarchal Society Ang Lipunang Pyudal Kapitalista Patriyarkal

According to the Kilusang Pambansa Democracy, our current society is semi-colonial and semi-feudal. Based on this, neither pure capitalist nor pure feudal. According to BISIG (Bukluran sa Sozialistang Isip et Gawa), the capitalist system is now dominant in society.

Both have reasons based on their positions in the political field. But these two organizations did not think that their dispute only revolved around the technical term.

It seems that even within the so-called Progressive Revolutionary Movement there is arrogance and hypocrisy.

The important issue for the social unity of a country and its people depends on the high and intense love and appreciation of his own race. This time, the importance of the Lahing Kayumangi.

Separate and free from the control of any foreigner who wishes to profit and share in our social wealth. Specifically the interference in the internal or internal livelihood of the people of international foreign capitalists and finance.

This is the right foundation and foundation of love for one's country. The appreciation and love for our own race including the indigenous and ethnic people of our country. Reclaiming the dignity of our own identity. This is the only right way to reunite the Motherland, the people, and the society.

Feudalism was brought or accelerated by the Spanish colonialists and capitalism was brought by the American Imperialists. Isn't this a combination of two systems left by the west that exploit the people at the same time?

Feudal-Capitalist Patriarchy, what does it mean? It means that in our society, this is the social relationship that mediates and exists, as a form of human interaction.

FEUDAL, because the main problem in our society is the land issue. Most of the vast lands are controlled by large landed lords, complicit with international foreign monopoly capitalists including the Roman Catholic church. If the farmers have any property, small parcels of land are just enough for their subsistence. Most of it is just to pay the debt to the capitalist farm. FEUDAL, because the relationship between a farmer and land owner is unequal and inhumane, especially in the division of production, harvest, interest, or loan interest. They even cheat small farmers for land profit. FEUDAL, because it is a relationship between a "strong and powerful" with a "weak" and without property, body, intelligence, and labor power, sold like in the market with a price. FEUDAL, because it is the most basic human relationship, the sexual relationship between a woman and a man is also wrapped in such an exploitative and oppressive relationship. The position of women is only secondary in almost all patriarchal institutions. Their rights to decide for themselves are being strangled. The Catholic church, the movement against women's freedom.

CAPITALIST, because whoever has the most money is the most powerful, has private property in production equipment, machines, factories, or companies owned and controlled by the capitalist. CAPITALIST, because they are able to buy the cheap labor of people who have no property. Affordable and easily replaceable as something that can be bought. CAPITALISM, because even the family and those who make it up are dependent on who earns or works for them, the family member who is supported by a nun or father of the family. It is a clear reason why the family leans and relies on their parents for financial needs. Unless there is a source of income or livelihood.

CAPITALIST, because even the most basic human relationship, the sexual relationship between women and men describes an unequal and unfair social relationship. Money blinked the sexual relationship between women and men. Human sexual desire is subordinated to the interest of money and capital. It reverses all forms of relationship from authenticity, everything becomes artificial and hypocritical. Proving that gender is only artificially divided into classes. This status quo can change with the introduction of radical changes in human livelihoods. Equal responsibility of women and men. everything has become artificial and hypocritical. Proving that gender is only artificially divided into classes.

PATRIYARKAL, because the role of the man is valued from childhood to growing up from being "Father and father of the family". PATRIYARKAL, because of all great men, from being "god" to being "messiah", creator of life, nature. world, a god in the likeness of Adam and worshiped by mankind. Religion is the image and tradition that is part of patriarchal culture. I don't think so. Because even the political institutions, together with their political parties are ruled and nested by politicians and bureaucrats, blind, irresponsible, and corrupt officials of the society. PATRIYARKAL, because men are good at "everything", from the organization, and association, they are always popular and looked up to, staged, praised, and recognized. PATRIYARKAL, because even armies, weapons, made up of most of the members here, all men.

In wars, men also fight and kill in the name of "National Freedom, Democracy, National Security and State power", (abstract words that have no basis in the true nature and needs of the entire society and its people. Propaganda words of the ruling classes to create an artificial and fragile unity of the people) under and in the name of the Patriarchal Republican government, the expression of the concentrated rule of the exploiting class. Image of strength and violence. (abstract words that have no basis in the true nature and needs of the entire society and its people. Propaganda words of the ruling classes to create an artificial and fragile unity of the people) under and on behalf of the Patriarchal Republican government, the expression of the concentrated rule of the exploiting class. Image of strength and violence. (abstract words that have no basis in the true nature and needs of the entire society and its people. Propaganda words of the ruling classes to create an artificial and fragile unity of the people) under and on behalf of the Patriarchal Republican government, the expression of the concentrated rule of the exploiting class. Image of strength and violence.

This is the picture of our society and its institutions, this system and order in our society must be ended.

End the Feudal-Capitalist Patriarchy...
Advance the Proletarian Social Revolution...
Advance the society without classes and no rulers...