A zarzuela of past errors

DIE HARD III
Herman Tiu Laurel
8/5/2011



Finger-pointing is again the order of the day. Not long after Sen. Tito Sotto challenged his colleagues, Kiko Pangilinan and Franklin Drilon, believed to be two of the original collaborators of Gloria Arroyo in the cheating of 2004, to finally come clean by dropping their pretensions, was his subsequent collaboration with the alleged cheating mastermind to partake of the corrupt system also laid bare. Similarly acting blameless while lambasting the cheats today, many of those in media were themselves part of the propaganda blitz that sustained the series of cheating and cover-ups well into 2007 and 2010.

This pattern of holding elections suffused with cheating, then eventually making an exposé out of them, has become a deftly-staged zarzuela of focusing only on the subsidiary corruption in politics to distract the people from a totally debased political-economic order. As a result, the economic and financial corruption, particularly of the parasitic elite, is missed by many.

The past months, we built up a case against the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF) for their seriously corrupt financial policy of keeping the country in debt despite the financial surplus afforded by our decades-long OFW remittances. Such an anomaly was gleaned from the Special Deposit Account (SDA) amounting to P1.5 to 1.7 trillion and the Gross International Reserves (GIR) which total $70 billion today.

After some controversy with BSP Deputy Gov. Diwa Guinigundo over the issue, an unexpected affirmation of our position came from none other than Finance Secretary Cesar Purisima who publicly favored “the unwinding of the SDA,” which entails the reduction of interest rates to facilitate the fund’s release for domestic investments.

In fact, an Aug. 3, 2011 Manila Bulletin news story by Chino S. Leyco reported that “Purisima, who is also a member of the central bank’s Monetary Board, said… the Aquino government would be happy to accommodate (any unwinding of the SDA). He explained that by unwinding the P1.44-trillion deposits at the BSP’s special deposit accounts, it may cut the borrowing costs of the government.” Furthermore, the report noted, “Deposits by banks to the special deposit account facility of the BSP continued to increase in the past few years, a scenario which critics said… could have been more useful for the economy if it were invested in lending.”

Actually, when we were having consultations with former National Treasurer Norma Lasala way back in 2004-2005, she already insisted that the management of our national reserves had gone awry and, thus, wasted billions. At that time, Purisima was already Finance secretary and Amando Tetangco, the BSP chief. Despite this, the continuity in the financial mafia remains unbroken. Tetangco has gotten his second term for the same post while Purisima got back the Finance portfolio after a hiatus courtesy of “Hyatt 10.”

So the question is, why is Purisima only now beginning to admit the wisdom of “unwinding” the gargantuan SDA (and, in all probability, later proclaim that we can indeed mobilize a greater part of our GIR)?

For sure, achieving this would be a first step toward liberating ourselves from the chains that have shackled us for the past five decades. But that’s just the beginning. The next stage is to free ourselves from ALL debt and all private bankers’ traps.

Since all credit and money is guaranteed by the taxpayer, there is absolutely no reason the people, through the State, should borrow from any private party. The nation should instead set up a “Peoples’ Bank” where creation of credit and money will be subject to referendum.

Now, we ask: Why was there no fanfare when Aquino III reappointed Tetangco to his BSP post when this is one of the most important jobs in the whole government?

Undoubtedly, the answer lies in the fact that the BSP, as it is set up today, is actually “independent,” with the presidential appointment merely ceremonial. And with a Board dominated by private bankers, the bank decides on monetary policy, possessed of an “independent” character institutionalized by Cory Aquino’s handpicked Constitutional Commission — whose members claim is a relic of the 1973 Constitution even without basis.

Being a private bank, the BSP actually follows the workings of the US Federal Reserve and the Bank of International Settlements (BIS) where both have a public façade but with private bankers at the core (see “The Tower of Basel: The World’s Biggest Central Bank Has Private shareholders,” GlobalResearch, July 29, 2011).

Is there any wonder then why the People’s Republic of China is today the leading nation and economy in the world in terms of growth and stability? Its banking system is based on the concept of the “People’s Bank,” with its credit policies designed for national development and public welfare. Of course, this is not the case for the US and its satellites — such as Europe’s PIGS (Portugal, Italy/Ireland, Greece, Spain) — now reeling from the greed and machinations of so-called “banksters.”

But sadly, our Senate, House, and financial bureaucracy — from the Bureau of Internal Revenue to the Bureau of Customs et al. — all follow the diktats of Wall Street, IMF-WB, ADB, and Basel in keeping the Philippines perpetually in debt; in taxing us more to pay it off; and in privatizing public services to create more debt (like the call for P110 billion more borrowings after 10 years of privatizing the state’s power assets).

Our past national errors, such as the 10 years of fraud under Gloria Arroyo, should offer us concrete lessons in our nation’s political-economic history; our decision now should be to turn a completely new leaf — starting with a deeper understanding of our financial system.

(Tune in to Radyo OpinYon, Monday to Friday, 5 to 6 p.m., and Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 to 7 p.m. on 1098AM; Talk News TV with HTL, on “Hello Garci: A Complete History,” with Atty. Alan Paguia, Saturday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com for our articles plus TV and radio archives)