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It has been
interesting to monitor the reactions to the recent conviction of
Daily Tribune editor-in-chief Ninez Cacho Olivarez for libel.
Some journalists’ organizations or watchdogs, have been quick to
express their dismay and call for the decriminalization of libel. On
the other hand, one journalist, Chay Florentino Hofilena, has been
particularly circumspect and pointed out that the burden is upon
media “to get their facts straight.” This is of particular interest
to me, as it is all in a day’s work to be misquoted or worse, to
have entirely different quotes attributed to me.
I recall that, some years back, Ms. Hofilena wrote a book entitled
“News for Sale: The Corruption & Commercialization of the Philippine
Media,” which contains, among others, a glossary of terms (such as
“AC-DC,” “envelopmental journalism,” “hao siao”) describing
pernicious practices which erode the credibility of our local media.
We have always taken pride in the Philippines having one of the
freest presses in the world. After years of media repression under
martial law, journalists have now free rein in what they write
about. Unfortunately, where one hopes for more sobriety and
analysis, one gets the he said-she said version of the news, with
scant or faulty fact-checking.
Over the course of my six years as Press Secretary and Presidential
Spokesperson, I have had the honor and pleasure of working with the
men and women of the Malacanang Press Corps who are the crème de la
crème of Philippine media. They have been selected by their
respective editors to cover what is considered a premier beat since
they are thought to exemplify the best in their industry, with their
capability, experience and work ethic. We need more journalists like
them who love and are committed to their craft, and who see
themselves as helping build our country and not destroying it.
I hope that the RTC decision in the Olivares case will be an
opportunity to examine the aforementioned pernicious practices in
media and will open discussions on media responsibility.
*****
Amid soaring oil and
food prices, the inflation rate has hit a high of 9.6 per cent. This
means that compared to the previous reporting period, the cost of a
basket of goods is now 9.6 per cent more expensive. A higher
inflation undermines the purchasing power of a currency. One needs
more money today compared to last year to buy the exact same thing.
The situation, however, is not unique to the Philippines. The
runaway prices of oil and food have affected practically most
countries.
The Economist, in its May 24-30th issue, reported the following:
“In some countries such a China, India, Indonesia and Saudi Arabia
even the often dodgy official statistics show prices have risen by
8-10 % over the past year; in Russia the rate is over 14 %, in
Argentina the true figure is 23 % and in Venezuela it is 29 %. If
you measure the numbers correctly, two-thirds of the world’s
population will probably suffer double-digit rates of inflation this
summer.“
Surprisingly even oil producers are affected. The Economist
continued: “Most Gulf-oil producers also have double digit
rate…..Indonesian inflation, already 9%, is likely to reach 12% next
month; when the government is expected to raise the price of
subsidized fuel by 25-30 %.”
The conventional response to fighting inflation has been to increase
interest rates and to tighten monetary policy.
The Bangko Sentral ng Pilipinas, headed by Armando Tetangco, who is
considered by most bankers as one of the best Central Bank Governors
around, has come up with a calibrated response: increasing the BSP’s
borrowing rate by 25 basis points.
What does this move intend to accomplish?
In the context of inflation, interest rates are a tool to control
money supply. By increasing interest rates, the BSP hopes to limit
the ability of banks to lend money to their customers. Because of
higher interest rates, prospective borrowers might postpone
borrowing. The money that could have been lent out will be retained
by the bank and will not flow to the market.
On the other hand, depositors now enjoying higher interests on their
deposits, may just decide to keep their money in the bank instead of
spending.
With less buying, demand for products will theoretically decline.
With less demand, prices of products will theoretically go down and
with that, the inflation rate goes down too.
Of course, this tool must be properly calibrated because there are
also drawbacks to higher interest rates. But we are confident that
Governor Tetangco knows the exact direction we should be headed.
*****
Note: You may email us at totingbunye2000@yahoo.com and
totingbunye2000@gmail.com.
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