The Philippine Peso is dropping in value even quicker than the US Dollar. Governments are short of tax revenue to run their countries so they print fresh money, causing high inflation. The world is in economic and geopolitical turmoil and the future is hard to predict. Sometimes, currencies go into hyperinflation.

The US economy has to stay strong for your money to last the rest of your life. Even if the pesos is weak and you feel your money is going a long way, your 401K may be taking a hit and dropping significantly as it is doing now. Good luck everyone!!

Property values and construction costs keep rising. Materials are now 20-30% more than 2 years ago. When we bought a house outside of Angeles, my thought was to do as much renovations as we could afford. In a few years it will be much more expensive. Housing, electricity and food are a significant portion of people’s budget. House is paid for. Grid tied solar zeros out the electric bill. My wife is the same way with money as Arlen. Next time our paths cross I have a funny story about getting the best price.

The dollar will only get stronger. When these other countries start to collapse, they will want dollars. Venezuela does. Argentina does. Brics isn't serious because China can't take down the USD without hurting themselves. And we still have the world reserve currency and petrodollar scam. I have some silver, but I don't see the collapse any time soon. Once major European currencies start to go down it will be time to look out.

I would agree that the Philippines is not as inexpensive as it once was. Food, rent, land, houses, gasoline, all have gone up. Lastly I think the real estate market is at an all time high. As you said condo prices are unreasonable high, homes are going for way more than it was worth a year ago. They are building condo buildings a fast rate, then people are buying them hoping to get a good rental return. Problem is as you said, there are just way to many condos out there now and units are going unrented. Hopefully the real estate market will have a correction.

I'm not surprised fewer people are visiting the Philippines. My income is essentially fixed because my wife & I are both salaried and at the moment our yearly pay increases are less than inflation. My grocery costs have gone up nearly 70% in the past 4 years. I'm slowly moving from 'wanting' a new car to 'needing' a new car (or two) while looking at prices that include a $10,000 USD 'market adjustment' markup above MSRP. We had planned to visit the Philippines this year but with flights costing between $2000-$3000 each we've decided to spend our vacation time traveling around the US and Canada. I'm wondering if others have had to make the same tough decision.

I think the philippines could grow enough rice to stop importing, but it would hurt the people indirectly. It would require industrialization of farming, and major technology upgrades. You can't have that while maintaining small family farms, so it would be a net negative for the people. They do have decent oil deposits, but it's not easy to access and lays in disputed waters. Also it would negatively effect the environment and fishing industry. In the end it would pump serious money into the local economy, but would the people be willing to accept the negative effects? My opinion only but the best sector to pursue is manufacturing. China is losing so many lucrative manufacturing firms and if the philippines managed to grab a few it would be a win win. Lots of decent jobs, would push up labor rates, and get more taxes for further investment in the other industries. Foreign companies save on labor, and minimally on shipping. The money made could improve infrastructure and tourism significantly. I like it because the more money the locals have the more luxury and leisure products will be available to me. I want a bowling alley less than 90 minutes from my house, and some better dining options. Yeah I'm greedy, I want to improve my life without moving from my little village.

You guys got a short memory. I was in the Philippines in September 2022 and I was exchanging my dollar for 59p

That was a good cometary Mike iam always happy when the dollar is strong and I do take advantage of having American dollars hanging around to exchange when it does go up. But I do feel sorry for the ordinary people that suffer the most. Our budget is 2400 a month but our spending is about 1000 so we are fortunate to have money left over , to save for emergency. We live in Butuan City and have been for the last three years.

My budget [CalPers] works at 40 PHP to the USD in IT or Business Park in Cebu City with a healthy cushion. Anything better than that is a bonus. If I need more $$$, I can take a Distribution or File for Social Security.

Mike. You are worrisome correct ! Wish I had some suggestions , but the fact is everyone here on a fixed income will have a decline in living standards. Living below your means will at least give you a little cushion.

Greetings from Dallas.. Ethically Filipino here born in the US but will be expat soon in Dumaguete.

Money is a risk wherever and whenever you decide to retire. What’s been going on with China and the Middle East has been ongoing for some time now. My grandfather’s ship he served on in the Navy back in 1954 was involved in an incident with the Chinese. China had involvement in the Korean War, Vietnam War and their involvement in affairs within Asia continue to today. It’s not that much of an influence in a foreigner’s decision to retire in the Philippines but it shouldn’t be overlooked. A decision to retire or live here should be always be based on monthly income, whether it’s a pension, benefits or savings to determine whether or not your basic needs can be sustained here. I’m fortunate that I’m retired US military and I have a pension with a medical benefit that I can use here. So my requirements are lower than say another whose coming here on pension, savings or Social Security with no medical benefits. A major reason why I retired in Angeles was based on medical availability. I live easier on my military pension and benefits here than back in the US and I also have family here.

Just a quick note to wish Arlyn a wonderful Mother's Day and more blessings. 💐🙏

Finally some common sense!!

You know you have a very thoughtful perspective and I don't know much about the Filipino economy, but indicators definitely sound down there. You did mention some things about the US economy that might cause some ripples like the housing market, but I have to suggest that there's a lot of strong indicators going forward in the United States of America that might be overlooked. 1. Abundance in natural resources and strong farming industry. 2. Net oil exporter due to fracking efforts. President controls oil supply and can prevent exports so we have oil if prices spike. 3. Manufacturing that will slowly trickle back into the United States as supply chains are challenged in the world. 4. Strong defense industry that will be relied on more in a world of chaos. 5. Just made Mexico our biggest trade partner over China last year where labor costs are lower. 6. Social security wages that will adjust to inflation. 7. Stable, responsible Federal reserve that is willing to make difficult policy choices in the light of decreased capital from baby boomers moving out of the stock market. Punishes economy in the short-term, while preserving long-term Outlook. 8. Safe haven for foreign investment both in money supply and in stock investment. That's just off the top of my head, and I'm not a finance guy... I think it's a lot more likely that our market would stagnate over drop, but there is likely some possibility of a minor to moderate correction at some point. Still the federal minimum wage has not been increased in almost 20 years And Joe Biden will be the first person to tell you that unemployment has never been lower in this country. We are running on full throttle besides the fact that people can't afford housing anymore.

Enlightening video, thanks

Mike I will put it in as easy terms as I can. We have been lied to with word play about inflations rates. The real term is devaluing currencies rates. Let's take a look at gallon of gasoline in the USA in 1964 cost around 30 cents. The so-called inflation rate for .30 cents from 1964 to today would value $3.02 US dollars or a 907.5% decrease of buying power. A 90% silver quarter can still buy a gallon of gasoline today with its silver value of $5.11 US dollars with current cost of gasoline today is $3.78. So as you can see you can buy more gasoline with the same silver money and still pocket a profit of ($5.11 - $3.02) = $2.09. Silver was removed from the US coins in 1965 (dimes /quarters) but still in half dollars and dollar coins till around 1970. As you can see silver and gold have added value against the paper dollar. So, you can still buy a gallon of gas for a quarter in you have one that was not devalued without silver backing it and buy a candy bar to boot..

One of your more interesting topics. Well done.

I felt like I was in a very important financial class. Very important part of what you said most people don't pay attention to what is happening in the world financially. If the world economy's fails, then it affects what happens in the USA, and it sure as hell is going to be harder in the Philippines. Great video 👍🏾👍🏾👍🏾👍🏾👍🏾

Good video

My g/f lives in Naga City Carmines. She has told me again and again about how everything there has sky rocketed in prices. And yes the price of rice is no exception. Every two months I give her enough money to buy a sack of the best rice there. I'm away of the dollar going up there but I'm also aware that the dollar balances out with the commodity prices because of the inflation rate there. Right now, the cost of an airline ticket to Virginia to Manila is $2,200. That alone sends up red flags. Think I'll stay home, lol. Things can change there with out notice.

Very good point. You want a stable market in the Philippines if you live there.

We are doing ok now and hope things will get better.We don't live an extravagent lifestyle anyway.

Great information. I really enjoy how you break it down for the average guy.

been here 20 years and have seen the peso rise and fall watch around the holidays and watch it sink, happens every year. Inflation is in every country and is very apparent here especially in food since the pandemic. Guys coming over on a fixed income i.e. just ss benefits be aware in 10 years your budget can double. mine has more than doubled in 20 years. 1200 isn't going to cut it in 10 years. be prepared. sweet spot is over 2500 and a good reserve otherwise as you age your lifestyle is going to be massively effected. co ops are paying 7.5 % on the peso.

Good points, Hopefully after the presidential election things can turn around here in the USA

Mike, you have a good grasp on the international monetary systems. You explained that pretty well. It’s hard for people of average means to understand what really goes on. This subject is so intricate you couldn’t cover all aspects in a short video but one thing you didn’t mention is a government’s intentional devaluation of their own currency because of international trade and its advantages. Money gets really complicated in the worldwide picture. Thanks for your explanation. As for me, I’ll stick to the province and live a simpler life and grow some of my own food.

THAILAND HAS MOVED THERE VISA STAY TO 6 MONTHS BECAUSE OF TOURISM THOSE THAT ARE THERE CAN STAY ANOTHER 56 MONTHS THEY ARE DOING WELL WITH TOURISM

The US economy drives the world economy. The mess in the States is causing a global mess and you’re all feeling it now in the PI. Contrary to all the comments this post will likely receive, you’d all be wise to pray for the stability of the US economy.

When it comes to the Housing market in the Philippines, I’m glad it’s failing. All these landlords, owners are now being punished for price gouging on all these small units with little amenities. We can go to Vietnam, Thailand and get better quality for less. It’s their greed that they are now drowning in and I’m not sympathetic.

Your best move to hedge against inflation is to have money in the US stock market. A lot of US companies take advantage of higher inflated prices to pad profits, which results in higher earnings for you.

excellent

Thank you for a graet talk I enjoy your channel I live in Calamba Misawa Occidental the province and I built a house and bought 3.3 hectars of farm land with coconuts and bought it at a good price 2 years ago. I raise pigs and chickens and have 220 trees and harvest every three months but I see prices here are going up and up. I wanted to buy a condo since I will be 72 in August but still have excellent health but the prices are horrible hoe do they sell them? I and my wife are planning now to go on vaction every month somewhere in the Philippines or Asia I want to see more while I am still healthy again I really enjoy your channel thanks again.

Greedflation/price gouging of basic needs (food, housing and services) has skyrocketed. The corporate world and corruption is rampant. There are simply too many factors that will insure a worldwide economic collapse. The biblical phrase of how "the love of money is the root of all evil" is in play more than ever. In any case, that's my optimistic view. 😂

For us personally it is still much better here in the Philippines than in California. Prices have gone up and continue to go up in California. Our friends and family there are really feeling it. We know a number of Filipinos there that are hurting but have to stay there and work. They are seniors like us but have not prepared for retirement at all. So they are basically never going to be able to stop working. A terrible predicament to be in. I don't pay attention to the global economy per se but I do see the news. We are, as you say, all in and so just have to ride out whatever happens. I still don't want to live in a country other than the Philippines.

I love how expats keep talking about inflation in the Philippines, like that is the only country in the world dealing with it. Look when your 300 peso lunch goes up 20% that is 360p that is $5.18 to $6.22 meanwhile in the US that $12 meal that goes up 20% is now $14.40. That is a $1.04 raise in the Philippines to a $2.40 raise in the US.

Well for the USD yes, But in the last 6 months, the Japanese yen¥ has fallen from 4100 pesos to 3600 pesos for 10,000 Japanese yen ¥

So about 12 years ago the exchange rate one US dollar for 46 pesos, now its 57 pesos which is about 20% increase. Not bad, but am not sure how much prices have gone up. Know that housing has gone way up. Am thinking about investing in farmland in the Philippines (Filipina wife) but am not sure about any other types of investments there. Just in case access to US banks is not available in the future. Any other ideas would be welcomed. Thanks for the video, good subject. Mike...Jim

First....1st

Mike I will be coming to Angeles City next month for the first time. Will you be able to show me around.

I postponed my P.I. move until all of this economic calamity plays out to some discernable "conclusion", or some kind of a "new normal". I'm waiting until next April, when (hopefully) things will be more "clear", and/or culminated enough to be able to make logical and intelligent plans. I've bought A LOT of Gold and Silver, taken all of my money out of the banks and secured my assets in short term US T Bills. So, I'll be fine whatever happens (here in The US) and if things "settle" appropriately I'll be well prepare to move to P.I., and do fine there too.

Good morning Mike is the train gone go at the back of the house your condo is ?

Speaking of breads, I haven't found any rye bread in Iloilo

When you get a chance , could you discuss health insurance for seniors ,l know it's expensive, but how expensive, thanks. Everything is up , it's the joe effect. Half your building is empty cause you don't allow cats. I guess that raises your condo fees. If you get a chance explain that and how about insurance on the condo.

So what should ppl do with big php account? What would you do if you had a large amount in php setting in the bank?

So the exchange is high now. What goes up will come down. I feel for the Filipinos as they don't have an exchange rate that is high and the average Filipino is hurting just to feed their families.

The whole world is suffering from inflation. In the US, the Republicans blame Biden, in Canada the Conservative Party blames Trudeau. It’s normal to think prices are only going up in the country you’re in. Inflation is going on everywhere at the moment. I’m fortunate that my Canadian Pension is indexed to inflation, Canadian inflation. The only decrease in spending power for me will be if Philippine inflation outpaces Canadian inflation. If inflation is comparable then it won’t make much difference. I’m not worried at this point. Time will tell. Philippines is way more affordable than Canada for most things anyway, so even if inflation raises prices there’s still plenty of wiggle room. I’m optimistic.

Its just that our crap (US dollar) is better than their crap and will remain that way for our lifetime.

You get what you pay for unless your being skin taxed.

6 MONTHS SORRY TYPE O

One strategy to lock in the high USD/PHP rate would be to convert a good chunk of USD to a PHP investment. Currently you can buy a 5yr Phillipines Bond with a Coupon of 6.57%.

Don’t invest too much into the Philippines that u are willing to lose.

Maybe you can get to the point sooner. 5 minutes ago I thought this was a good video.

My dream of living like a king in PH is dead..

Elections have consequences . Just my thought

If you have to worry about measly exchange rates or atm fees, you’re poor. Stay home.

And when BRICKS comes into effect, you will be very happy to get only 20 - 25 pesos to the dollar