Showing posts with label The Economy. Show all posts
Showing posts with label The Economy. Show all posts

Sunday, July 08, 2012

DEUTERIUM : The White Gold of The Philippines


When I was in highschool, Michael Peralta, an old neighborhood friend from Carmen Street but who is now residing in Los Angeles, once spoke to me in a very animated fashion how the Philippines could one day become the richest country in the world. As a prelude, Michael said to me that his father had some vital information why a number of foreigners were in the country for a very secret purpose. I wondered loudly to him how secret it was and asked him if he could actually let me know some of the “secret’. He then informed me without hesitation that the foreigners were here mainly to study and find out ways on how to extract deuterium from the Philippine seas. I asked how come his father knew about all those stuff and what “deuterium” was in the first place. With gasping breath, and with gleaming pride for that matter, Michael told me as a matter of fact that his father was a war veteran and because of this, he had American contacts in the CIA. The CIA thing sounded preposterous to me at that time but when I recently read some articles in the Internet about deuterium, I started to wonder if the CIA talk of Michael was plausible after all and that maybe the CIA was behind the sudden departure of Michael’s whole family to Los Angeles later that year, where in a year’s time he was already driving a very exotic looking red corvette (might be from second hand store) as evidenced by a picture that he had sent to the neighborhood kids through a very kind uncle. This story may start to sound like a brimming Tom Clancy thriller but before anything gets out of hand, that CIA talk of Michael is just that and nothing else t o it I am pretty sure on that and their immigration to America was due mainly to his father being a USAFFE during World War II. But Michael’s rambling on deuterium was completely a different matter—it sounded to me then so awfully good that I had wished it to be true already even though it wasn’t true at all at that time, and even now.



There is really something to this issue on deuterium that lingers long and never goes away completely. It had been virtually popping and bobbing up in the local media every now and then—especially in the last couple of decades. The Cebu-based news outfit The Freeman published the most recent news article on deuterium. In that article, Freeman publicized a certain study on deuterium by a Filipino scientist working in a Canadian agency. Canada by the way is the world’s leading producer and consumer of deuterium as an energy source. There had been many rumors and hush-hush talks before about certain groups of foreigners, possibly American and sometimes German, that were in the country to initiate drilling projects that should siphon-off the coveted deuterium from the Philippine seas. All those talks just died down however and nobody really minded them, perhaps everyone just disregarded some weird-sounding element that is supposedly found in the Philippines in great volume. In fact, even as we speak now, I would not be surprised if Exxon or Shell has some of its people working night and day trying to unravel the key to gathering the millions of barrels of “white gold” underneath our seas.



I was watching Sentro last night, the upstart news program from ABC 5, and heard Ms. Ali Sotto do some lighter take on the news as she reported how hydrogen-fuelled cars were already running in the streets of Washington D.C.. This particular news segment was apparently so short that I had to scour the Internet for a more elaborate rendering of the news item. I read a couple of related news articles from not-too-famous news sites on the net.



It was reported that the United States Government, through the Department of Energy and General Motors had unveiled an $88 Million joint project in order to put a fleet of hydrogen-fuelled cars on the streets of Washington D.C., New York and Los Angeles within a year’s time. The fleet would consist merely of 40 of such cars but most of the money would be spent on putting up a number of hydrogen refueling stations all over the streets of those pilot cities since the main cause why consumers are not buying too many hydrogen-fuelled cars these days is basically due to the lack of gas stations peddling or selling hydrogen gas or liquid hydrogen. Come to think of it, even if any of us had all the money to buy this car stuff right now, like for example if some of us are sons and daughters of Taipans with money to burn, we wouldn’t be able to use them anyway, at least not for long, unless we all fly all the way to America to buy gallons and gallons of hydrogen fuel.
But again come to think about the possibilities. If only there were enough hydrogen-refueling stations all over our city streets, our days of being dependent on crude oil (freshly-drilled from the dusty sands of Sahara) would soon be over and our atmosphere would be a lot more livable since the only end product of hydrogen fuels is water. Water, instead of carbon dioxides that make our urban landscape looked orange or yellow at dusk.



I really hope that this project of GM and the United States Government would entirely succeed for reasons that we all should know by now.



And so this bit of news on hydrogen-fuelled cars reminded me of the high school talk I had with an old friend from the neighborhood concerning deuterium. What is deuterium and how does it become an energy source? Deuterium is the end product when a common tap water (H2O) is subjected to enormous pressurize of gigantic proportion that the oxygen element in the H2O compound is forced out of the combination, making the hydrogen element to purify and consolidated all the more. Since in deuterium, the hydrogen becomes so solid and unadulterated, hydrogen gas can be easily obtained from it since a natural electrolysis happens immediately the moment deuterium is exposed to room temperature. Meaning to say, when deuterium is used as a base in obtaining hydrogen gas, the generation process is much less expensive. Right now, hydrogen gas and liquid hydrogen that are often used to power jets and giant trucks, are sold at very steep prices (much more expensive than gasoline) because it is so costly to produce them, necessitating an energy-consuming and lengthy electrolysis process that are undertaken in order to separate the hydrogen compound from common water. When deuterium is used, the very expensive process of electrolysis would be bypassed and set aside in the production of hydrogen gas and therefore, obtaining hydrogen fuel becomes more efficient and less expensive by a mile.



The Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:



“A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”



And it’s potential in this breathe:
“At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.



Public works, private construction, economic and financial booms are expected to happen in the Philippines in the same manner as those which happened in the Middle East and financial centers of the world from 1974 to 1984, with everybody earning their respective comfortable livelihood, while pricing basic prime necessities at reasonable and affordable levels.”



At present, deuterium seems to be produce exclusively through an expensive synthesizing process, by subjecting ordinary tap water to enormous pressure using some highly-advanced machinery or equipment and thus the price of hydrogen fuel remain relatively out of reach from the ordinary consumers of fuels. But if the deuterium deposit under the Philippine seas can be obtained, hydrogen gas prices could become far more reasonable and affordable. If natural deuterium is utilized as the base in the production of hydrogen fuel—in both its most widely used form as hydrogen gas and liquid hydrogen—the generation process would become more efficient and much cheaper. And mind you, deuterium as a source of energy is not only useful to power cars, trucks and planes. It is also being utilized to power factories and power plants in the same manner that nuclear power plants are operated. With deuterium as moderator, nuclear power plants could do away with enriched uranium as a main fuel source and this means, deuterium use could generate a whole new specie of power plants that are a lot safer—safer by a grand mile.



The problem faced by those who wants to extract natural deuterium from the Philippines seas is probably the enormous pressure that is existing in the very area where deuterium are supposed to be found. To reach the area of deuterium concentration, a drilling system should reach a level of at least 30,000 feet deep into the ocean, where the water pressure could reach as high as 10,000 psi, or the equivalent of 10,000 tons of load pressuring from all direction. Apparently, there is no material known today that could withstand such enormous amount of pressure. Maybe diamonds could be strong enough to endure the extraordinary pressure down there but imagine how much diamonds should be needed in order to manufacture a very long tube. That’ll be unimaginable in both cost and expanse. But scientists nowadays always finds a way and when the time comes that a kind of metal could actually be developed, one that could reach ten thousand meters underwater without breaking apart and efficiently drill out barrels and barrels of sea water that contains deuterium, then that’ll be the time the Philippines could become the main hawker of fuels for the world’s cars, airplanes, buses, factories, power plants and whatever that runs and hums not by its own accord.
So deuterium may be the gasoline of the future, the main energy source of the next millennium, and the Philippines is the only country that has them naturally tucked under its seabed in an amount and breathe that replenishes on its own every time the Earth rotates and the sea shifts from side to side.



Look in Wikipedia for more information.



(Note: This is an old post that I am resposting since I am so very busy these days. You might find this write-up interesting since it’s the most searched post that I have, almost twice a day.)

Oil Prices Fall and U.S. Stocks Too



Yahoo! News provides its readers a good relief this morning with the news about oil prices finally falling beneath the $100 level, from as high as $147 in record levels.



That’s a big boost for every motorist and industrialists as well, where economic activity would surely be on the upswing and public convenience should be improved in the days to come. I remember how about a year ago, world oil prices were merely at the $60 to $70 per barrel level that I believe we could hope and still push the falling prices further down below from the present $100 level, towards the $80 per barrel region.



I tell you, the record level of oil prices in the past few months was such a thorn on the side of every motorist and it was so life-changing that everyone we know at work and from the neighborhood were so gasping in breath just to adjust to new and direr situations. It was so steep an increase in so very little time that I could not help but see malice in the eyes of oil producing countries or OPEC (Oil and Petroleum Exporting Countries); asking why in the world would they ever want the world to suffer by allowing such radical upswing in oil prices. The global community is like a web of life, if most of the world suffers and feels so much difficulty, to be sure they would similarly feel such negativity, sooner or later. And besides, it’s the poorer or less-developed countries like the Philippines who feels the pinch and suffers all the most; the richer countries like America and Japan would just have to make some minimal adjustments. To be sure, OPEC wouldn’t want to punish poorer countries all the more, and reward richer countries by giving them more advantage in trade and in public conveniences. To me, that’s nearly hideous and highly irresponsible.



They could have allowed very gradual increases so as not to set a firestorm in public inconvenience, where every household could change and adapt to newer conditions in a gradual and slow pace. That way, the difficulty might be stifled and not so deeply felt in a long term basis. I feel so strongly that any unusual and abnormal rise in prices, of every commodity especially such as petroleum products, should be caused by none other factors than artificial instigation by greedy traders and middlemen, those insidious trading schemes that circumvents and synthesizes in their favor the law of supply and demand, towards faking the dilapidation of the resources for sale, in order to drive demand upward and selling prices to the roof.



The spate of incessant series of oil price increases in the world market that had started last year could most possibly be man-made and artificial, borne out of speculations by middle traders who are merely out to make big profits for themselves, artificially instigating the sudden and steep rise of oil prices.



Now we hear that the New York Stock Exchange is in major turmoil as stocks fall down in very wide margins, being a rattled response to the closing down of one of America’s oldest and biggest financial company, Lehman Brothers Holding Co., which filed for bankruptcy yesterday.



As I read through the news on the recent stock plunge in America, I read that Lehman, along with other financial and investing companies like Merrill Lynch, were the ones that were very active in last year’s commodity boost, one that had set off the series of steep oil price increases.



I do not mean to be sardonic (in the face of the stock crisis in America) but it’s clear that there is a correlation between the movement of oil prices and with the most recent falling down of stock prices in America. And that the oil price increases were man-made and artificial all along, as many had suspected.



It was malice all along. For price manipulation is such. By those who are merely looking out for themselves, to make more and more money and not be thinking of the plight of those who would be gravely affected by their extreme greed and ravenousness.



(Image used courtesy of Stockvault .)

Walling the U.S. Financial Storm


What do you know, the present economic crisis in America is now being touted by many to as second merely to the Great Depression of 1929 and that’s a little scary, and could be too worrisome if left unattended. In 1929, the giant stock market crash had sent millions of Americans homeless and penniless on the streets, and had sent heavy aftershocks to all countries all over the world at that time—-that’s how ghastly it was.



That’s why the U.S. Senate is expected to finally approve a $700 Billion bail-out plan hours from now, one that is similar to that one that got rejected by the Lower House just yesterday, trying to circumvent that prior disproval by interjecting amendments to a passed bill. Desperation seems to be so steep in the White House right at this moment.



Would the U.S. Senate really approve such humongous spending? Will it be effective if at all? These are questions that remain to be seen till hours from now.



The Lower House was confronted with so many complaints from the respective constituents of its respective members, urging them so direly not to approve a bill that would cost each American taxpayer so much. In fact, the horde of emails and calls from complaining citizens had conked down the communication system in Capitol Hill.



How much is $700 Billions really? It’s far bigger than NASA’s $26 Billion annual budget and just a 100 billion dollar greater than the cost of the six-year Iraq War so far.



If I were an American taxpayer, I would not of course support the ratification of the bailout plan which I would eventually shoulder in the form of steep tax rate increases, especially one that is seen largely to rescue filthy-rich moguls who just made a mess with their investment plans, after being overly profit-hungry all these years.



The only problem is that many financial experts forewarn the worsening of this present crisis if the very expensive bailout plan would not materialize. What a dilemma, eh? I bet no one in his right mind would like to be in the shoes of Pres. George W. Bush right at this moment.



Read more on this issue from LiveScience:



  • “How Much is $700 Billion?”


  • “The Long History of the 2008 Financial Mess”

  • A World Full of Gold



    I am a bit in a rest mode this week, as it is semestral break in the University right now and I am getting some rare moments in front of the computer monitor, as the short vacation allows me some free time to surf as I want to be, or play games for longer hours.



    Teaching is such a full-time job, even though my position is far from being one—- and even the pay. One has to breathe and live the job, from the moment one wakes up in the morning, till the night ends near midnight. Not that I am complaining; I just mean to say is that this vocation fills my days like a glassful of water and I live through it, like a fish in the water.



    Maybe such is the teacher, to be thorough in the job, to be as dedicated as ever, to be animated and to be passionate about it all. Without these things, there’d be no such thing as a good and complete education.



    Now that I have all the time to think as much as I want to think, I still think about the words and expressions I relay to the students while in the classroom, one of which was about economics and how things becomes valuable and how they earn that value.



    I had referred to stones and gold in the “International Economics” subject I teach my third year students. I asked the students one time to imagine a world full of gold, glistening all around, beneath our feet, and seen where every eyes could see, then most probably a kilo of gold would not be worth a dime. And every monument would be made of gold, shining like the sun, and most probably stones would be in every rich person’s bodice, as jewelries would you believe. Or in short, that’s how the law of supply and demand works. The student could not help but smirk; I could not help that too.



    And I was also saying about how a nation becomes like a sari-sari store; the store who sells more merchandise and buys less, would most likely be an economically sound store—- rich and progressive. Or like a house, where the household should apply the best economics ever known, allocating resources in the wisest manner, for if a house spends more than it earns, it is a crumbling house.



    Often, teaching these college subjects do not only make the student academically proficient but could allow them to learn practicality in life, as they progress along towards the future that awaits them. That’s what I think.

    Everyday, World Crisis


    Everyday, the news headlines contain disturbing notes on the now-long-running world financial crisis. It was worrisome at first, but now it might border on the maddening, as stock markets across the globe tumble and decline heavily. Sooner or later, the ordinary citizen, even from as far and isolated places like the Philippines, would feel the setback in terms of financial distress, weakening their pockets and buying power.



    There’s a great irony to all this; when this current global recession was still at its infantile stage, world oil prices was at its record-high of nearly $150 per barrel, but now, its down to $64. That’s a steep spiral downward don’t you think? Like it’s really not the real condition of supply and demand that’s affecting oil prices, but something beyond that, about some criteria that was not previously clear to us, man-made and unnatural.



    It might not be foolish to say that if recession brings down oil prices to this very low level, then we might as well bat or wish for more and more recessions to come. It does not count, don’t you think?



    Of course, recessions are really bad as unemployment rises in America so steeply and this makes the consumer power over there go down to the very minimal, and as a result exports from third world countries like the Philippines would suffer enormously. And the status of many OFW’s there might be affected as they might be sent home too prematurely or so suddenly, thus affecting dollar remittances from thereat.



    Another major concern is that investments might be harder to come by, especially from America where most of the call centers here are American-owned, and we all know how the ‘telecenter boom’ had greatly improved our economy.



    But it still does not count. I become worried about the worsening financial distress all over the world while on the one hand, could not help but become ecstatic with the plunging oil prices in the world market. It’s like a hot and cold treatment.



    I wonder if we could have a middle point on this, like seeing the evaporation of the present gobal economic crisis and while having very low oil prices.



    The problem with a burgeoning global economy is that it drives commodity prices to the ceiling and creates ‘a virtually elitist economy’ , one that is merely good for those who are financially situated to gain from the commodity boost, those that have deep pockets, like its an economic system designed for the rich and famous only, and not for the poor ones like the Philippines.

    Obama’s Simple Plan


    One major reason why Senator Barack Obama won the just-concluded U.S. Presidential elections is that he is so much of a straightforward kind of guy, no-fuzz and no-going-around-the-bush kind of guy he is. Even in the way he speaks and the manner he relates his intents, he becomes as clear as the morning dew.



    And he ain’t stupid.



    Former President Bill Clinton had always emphasized the “it’s the economy stupid” ideology of governance that in the years he was president, economic recession was not a major headache for him and the U.S. economy was at its strongest like no other time before.



    Maybe, it’s the Democrats way of handling things, to look more internally and to minimize outward engagements. Home is where their hearts are.



    And now I heard in the news, Obama is applying that same simple rule of governance, to keep an effective rein of the nation’s money and be good at it.



    Now, even if he would be officially inaugurated as president by January still, he is already laying ground to an employment boosting plan through increased government spending on infrastructure, over an extended period of time.



    If I am not mistaken, Obama is applying the much-vaunted Keynesian economic strategy, one that had been proven already to be effectual in several instances in the past; even despite that such scheme is not really working in some jurisdiction, especially in our own turf.



    Former President Ferdinand E. Marcos had been building thousand of miles of roads in the 70’s but the local economy had spiraled downward instead of the upturn that such huge government spending was expected to generate. Perhaps, there was just too much government funds that had gone down the drain in those years, where most possibly what we see is merely half of the kilometers that the government had really planned to build at that time (most of them located almost exclusively in Luzon or near his home province of Ilocos Norte).



    Presently, President Gloria Macapagal Arroyo is pursuing the same strategy yet the economy is sputtering instead of becoming like a roaring machine.



    In fact, our government workforce had become so bloated in the 80’s just in order to create job opportunities and create a huge buying sector out of government workers that was then expected to boost consumer demands.



    In hindsight, Keynesian economics was conceptualized by the very famous British economist John Maynard Keynes to which Mr. Keynes had proposed the innovative idea that the state or the government should be interventionist in a major way (not through controlling trade as you might be thinking), but by stimulating economic activity through major government spending.




    The main key factors in this strategy are:





    • A reduction in interest rates.


    • Government investment in infrastructure where the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.




    In simple terms, the government would be spending on infrastructure projects that are expected to jumpstart a series of economic activity—- such as the direct and palpable increase in the production of cements for example, the hiring of more drivers to deliver such cement to the construction sites, and the immediate hiring of more construction workers too, thereby straightforwardly creating jobs both in the factory as well as in the government. When the wages comes in, these workers would create demands for consumer products that in effect factories of garments, cigarettes, food items and such similar commodities would find the need to increase production and thereby may need to increase work forces. It’s like a merry-go-round kind of thing.



    It’s like as if the economy is a freely revolving wheel and when it seems to run so slowly, Mr. Keynes wants the government to intervene by trying to push the wheel and make it run faster and faster, hoping that this egging on would be enough to leave it alone, running at a good speed by its own force, through inertia.



    That’s what I like with this economic concept – it’s simple and highly doable. In fact I have become such a great fan of Mr. John Maynard Keynes some years ago because of this highly touted and very workable economic idea that Senator Barack Obama is presently aiming to apply and utilize in order to solve the very dire economic crisis that his own country is experiencing right now.

    Labor Utopia In Florida


    With all the talk over the grievous consequences of the most recent economic recession in America, there comes this bit of news that somehow becomes uplifting especially to those who had became so very pessimistic about global economic outcomes.



    A Florida-based telecommunication company, SYKES Enterprises, one that specializes in call center operations, had to recently close down since it could not find enough manpower to hire. Talk about the irony of it all. In Florida, nobody wants the call center job that somehow, it becomes a labor utopia in some sense. Probably, it still becomes more rational and tenable to locate their call centers in Asia, especially in the Philippines where English is close to a mother-language.



    With unemployment rate in America at 8.1%, the highest in 25 years, this unique situation in Florida remains more or less a pleasant aberration in the labor situation there, as more than half-a-million jobs were lost in February alone. And these are alarming numbers and it would not be far-off to anticipate that America wants all its jobs back, the ones that was lost to China and other Asian location as a result of cost-saving measures for many huge American companies.



    And one might wonder how’d they’d be able to do that. Yet, it seems to me that they have to do that at any cost or the U.S. economy wouldn’t rebound fully. Maybe American workers would slowly agree and adjust to lower compensation standards in order to compete with the labor market in Asia and elsewhere. Otherwise, such thrust would be just wishful thinking.

    Shall We Celebrate Our Huge FOREX Reserve?


    I was going to blog about this current item some days ago, but I was so busy then. It was a notable report about our economy about three days ago, where our foreign exchange reserve stood at record-high 41.3 Billion in U.S. dollars. Otherwise known as Gross International Reserve (GIR), forex exchange reserve is one good indicator on the health and vigor of the economy, simply stating how much dollars or foreign currency flows into the country at a certain point.



    At this level, the Philippines maintain the 10th largest reserve in Asia according to the report and about 37th in the world.



    It’s a bit of a downside however to learn that other countries in Asia like Thailand (US 125 B), Malaysia (US 91.4B) and Indonesia (US 57.4B) are so far ahead of us in this aspect. But knowing that we have gained great strides in this matter is already one reason to feel uplifted, somehow.



    To clarify some point, the GIR does not ultimately reflect the real account or level of an economy of a nation and remains highly debated as to its significance is assessing a nation’s actual economic strength. Too much of it could actually be harmful to the dynamics of currencies as central banks could easily masked flailing currencies resulting to the hazards of misrepresented values of items and commodities, a situation that could easily lead to explosive inflation and sharp contraction in economy.



    Consider that other notable rich countries like Australia (US 40.9B) and Spain (US 27.6B) are far lower than us but for certain, these countries’ economy are so much bigger than ours.



    The highest level in GIR is held by China at $ 2.1 Trillion while America is merely 20th at $ 78 Billion. Now, at least we see the gigantic irony about foreign reserves.



    But all in all, GIR level is greatly indicative of our nation’s health or any form of upswing on it, in the most basic sense. America and other rich countries could well afford to maintain reasonably lower amount of reserves since their liquidity issues are not as much a problem, and besides America’s dollar remains to be the currency of choice for almost all countries, meaning all those held in reserves in many central banks across the globe emanates or is directly connected to the U.S. economy, signifying its enormous strength as a financial hegemony (giant) in the global trade.



    Other forms of reserves are in gold, that’s why central banks all over the world store bullion of gold somewhere underneath their premises.



    What is most significant about our GIR level is the sharp increase it had gained from last year, almost $ 10 Billion all in all, from a mere $ 32 B in 2008.



    Apparently, this strong inflow of forex exchange should be credited primarily to improving remittances from OFW’s abroad (showing how they are truly heroes of this country) and some from foreign direct investment and capital.



    Some sectors says and ask, “What shall we do with these dollar reserves? Shall we just store it or make use of it?”



    Some even suggested that we use half of it to pay our fast accumulating foreign debts. Some say we use some of it to build houses and roads.



    Maybe we can we use some of it to “keynesially”upstart our economy, increasing government spending through salary increases to the government sector, embark on huge infrastructure projects like public housing, farm-to-market roads and bridges, allowing more access to farms and other potential areas.



    But doing that might just harm our economy instead, decreasing credit confidence and would make our economy more likely to be fragile against currency crisis, like the Asian Financial Crisis of 1998.



    That’s one of the most important purposes of stable and wide FOREX reserves, in order to shield us from currency fragility that often hounds the global economic system, attacks that are so debilitating that it could tear down an entire economy into bits in just a matter of days.

    RP Now a Key Emerging Market for Global Investors


    It’s about time that Philippines have a respite from perennially being included in those notoriously vicious lists that state the who’s who or what countries are among the most corrupt or in violation of human rights and some other negativity—- even just for a while.



    You know, RP would be a hall-of-famer by now, having performed so well in those listings in recent years.



    Philippines had just been singled out by the United Kingdom Trade & Investment office to be remarkably 9th in rank as a key emerging market for global investors, up 14 spots from last year’s 23rd.



    This should be one better news, aside from recent business reports of an ever-increasing forex reserves and improving credit ratings from Moody’s.



    This is fairly a well-studied economic assessment since actual global business entities have been surveyed for this listing.



    That’s unparalleled investor confidence for us.



    It’s to be pointed out that UK remains to be the top source for foreign direct investments in the Philippines (this is unexpected for me; I had always thought U.S. or Japan to be leading in this category).



    One wonders why Philippines place well in investor confidence despite the many negative happenstances within our midst and of course the global economic downturn still not settling down completely.



    What I see is the kind of ‘ballooning’ and eventual ‘burst out’ that almost always happens in finance. We all know what they say about increasing numbers in terms of production and manufacture, quality suffers and deteoriates. Over-investment in areas like China and India (as well as Asia strong contender Vietnam) must have led to a ‘bursting’ situation that other locations like the Philippines now becomes more and more attractive to investors who are batting for more ‘quality’, and steadier ground, those that are not in danger to boiling over.



    Over-investment (when mismanaged) might possibly lead to overheating and this is a great hazard that global investors are trying to move away from.

    How Did RP Managed To Escape The Global Recession?


    I came across a very informative article of former NEDA chief Cielito Habito Where Did the Growth Come From?”, discussing the very current debacle of global recession and how the Philippines have somehow found a way to snuggle away from it, insulating itself from it effectively and even posting growth figures as opposed to other contracting economies worldwide. This situation had even gained the Philippines some notable commendations from veritable financial institutions abroad.



    However, Mr. Habito pointed out mainly to ‘government spending’ as the main and only instigator of such growth, increasing demand through construction activities thereby allowing job generation as such. In fact, significant sectors like agriculture and manufacturing had contracted or decreased.



    This tells us how fragile is the basis of our economic growth even to the extent of artificiality, when purely government spending is mostly depended on and none much else. As Mr. Habito had pointed out, increased government spending means increased government debt and this is not a good situation at all.



    Somehow, this kind of strategy is deemed commendable as even America implements the so-called stimulus fund to augur in public consumption, in order to enthuse market activities. It was smart maneuvering on the part of our government.



    Although in simpler mathematics, it would still be a negative. How long can we lift up the economy using artificial means and planned intervention?



    Public consumption aside from those generated by government spending should be instigated by all means.



    Mr. Habito views the housing sector to be one good area where government should focus on as it has that multiplier effect of generating more jobs (being labor intensive) and encouraging increased manufacturing activities.

    DEUTERIUM : The White Gold of The Philippines


    DeuteriumWhen I was in highschool, Michael Petralba, an old neighborhood friend from Carmen Street but who is now residing in Los Angeles, once spoke to me in a very animated fashion how the Philippines could one day become the richest country in the world. As a prelude, Michael said to me that his father had some vital information why a number of foreigners were in the country for a very secret purpose. I wondered loudly to him how secret it was and asked him if he could actually let me know some of the “secret’. He then informed me without hesitation that the foreigners were here mainly to study and find out ways on how to extract deuterium from the Philippine seas. I asked how come his father knew about all those stuff and what “deuterium” was in the first place. With gasping breath, and with gleaming pride for that matter, Michael told me as a matter of fact that his father was a war veteran and because of this, he had American contacts in the CIA. The CIA thing sounded preposterous to me at that time but when I recently read some articles in the Internet about deuterium, I started to wonder if the CIAtalk of Michael was plausible after all and that maybe the CIA was behind the sudden departure of Michael’s whole family to Los Angeles later that year, where in a year’s time he was already driving a very exotic looking red corvette (might be from second hand store) as evidenced by a picture that he had sent to the neighborhood kids through a very kind uncle. This story may start to sound like a brimming Tom Clancy thriller but before anything gets out of hand, that CIA talk of Michael is just that and nothing else to it I am pretty sure on that and their immigration to America was due mainly to his father being a USAFFE during World War II. But Michael’s rambling on deuterium was completely a different matter—-it sounded to me then so awfully good that I had wished it to be true already even though it wasn’t true at all at that time, and even now.


     


    There is really something to this issue on deuterium that lingers long and never goes away completely. It had been virtually popping and bobbing up in the local media every now and then—-especially in the last couple of decades. The Cebu-based news outfit The Freeman published the most recent news article on deuterium. In that article, Freeman publicized a certain study on deuterium by a Filipino scientist working in a Canadian agency. Canada by the way is the world’s leading producer and consumer of deuterium as an energy source. There had been many rumors and hush-hush talks before about certain groups of foreigners, possibly American and sometimes German, that were in the country to initiate drilling projects that should siphon-off the coveted deuterium from the Philippine seas. All those talks just died down however and nobody really minded them, perhaps everyone just disregarded some weird-sounding element that is supposedly found in the Philippines in great volume. In fact, even as we speak now, I would not be surprised if Exxon or Shell has some of its people working night and day trying to unravel the key to gathering the millions of barrels of “white gold” underneath our seas.


     


    I was watching Sentro last night, the upstart news program from ABC 5, and heard Ms. Ali Sotto do some lighter take on the news as she reported how hydrogen-fuelled cars were already running in the streets of Washington D.C.. This particular news segment was apparently so short that I had to scour the Internet for a more elaborate rendering of the news item. I read a couple of related news articles from not-too-famous news sites on the net.


     


    It was reported that the United States Government, through the Department of Energy and General Motors had unveiled an $88 Million joint project in order to put a fleet of hydrogen-fuelled cars on the streets of Washington D.C., New York and Los Angeles within a year’s time. The fleet would consist merely of 40 of such cars but most of the money would be spent on putting up a number of hydrogen refueling stations all over the streets of those pilot cities since the main cause why consumers are not buying too many hydrogen-fuelled cars these days is basically due to the lack of gas stations peddling or selling hydrogen gas or liquid hydrogen. Come to think of it, even if any of us had all the money to buy this car stuff right now, like for example if some of us are sons and daughters of Taipans with money to burn, we wouldn’t be able to use them anyway, at least not for long, unless we all fly all the way to America to buy gallons and gallons of hydrogen fuel.


     


    But again come to think about the possibilities. If only there were enough hydrogen-refueling stations all over our city streets, our days of being dependent on crude oil (freshly-drilled from the dusty sands of Sahara) would soon be over and our atmosphere would be a lot more livable since the only end product of hydrogen fuels is water. Water, instead of carbon dioxides that make our urban landscape looked orange or yellow at dusk.


     


    I really hope that this project of GM and the United States Government would entirely succeed for reasons that we all should know by now.


    And so this bit of news on hydrogen-fuelled cars reminded me of the high school talk I had with an old friend from the neighborhood concerning deuterium. What is deuterium and how does it become an energy source? Deuterium is the end product when a common tap water (H2O) is subjected to enormous pressurize of gigantic proportion that the oxygen element in the H2O compound is forced out of the combination, making the hydrogen element to purify and consolidated all the more. Since in deuterium, the hydrogen becomes so solid and unadulterated, hydrogen gas can be easily obtained from it since a natural electrolysis happens immediately the moment deuterium is exposed to room temperature. Meaning to say, when deuterium is used as a base in obtaining hydrogen gas, the generation process is much less expensive. Right now, hydrogen gas and liquid hydrogen that are often used to power jets and giant trucks, are sold at very steep prices (much more expensive than gasoline) because it is so costly to produce them, necessitating an energy-consuming and lengthy electrolysis process that are undertaken in order to separate the hydrogen compound from common water. When deuterium is used, the very expensive process of electrolysis would be bypassed and set aside in the production of hydrogen gas and therefore, obtaining hydrogen fuel becomes more efficient and less expensive by a mile.


     


    The Philippines is identified to hold the greatest amount of deuterium deposit, somewhere in the area known as Mindanao Trench, the part of the Pacific Ocean just off the shores of Surigao. Deuterium is most prevalent in an area more widely known in the whole world as The Philipppine Deep. In the Freeman news article (dated August 2004), Dr. Anthony B. Halog, the Filipino scientist working at the Sustainable Technology Office of the Institute for Chemical Process and Environmental Technology, and the National Research Council of Canada described the Philippine deuterium wealth in this manner:


    “A big deposit of 868 miles long, 52 miles at widest point, and 3 miles at deepest point, replenished by nature 24 hours a day after deuterium travels more than 12,000 kilometers from Central America to the Philippines through the span of the Pacific Ocean when Planet Earth turns on its axis from West to East in unending perpetual motion.”


    And it’s potential in this breathe:


    “At 12 million barrels per day capacity priced at US$7.00 per barrel, this is US$84 million per day or US$30.66 billion per year, enough to wipe out all existing foreign debts of the Government in one year, revenue-wise in foreign exchange.


    Public works, private construction, economic and financial booms are expected to happen in the Philippines in the same manner as those which happened in the Middle East and financial centers of the world from 1974 to 1984, with everybody earning their respective comfortable livelihood, while pricing basic prime necessities at reasonable and affordable levels.”


    At present, deuterium seems to be produce exclusively through an expensive synthesizing process, by subjecting ordinary tap water to enormous pressure using some highly-advanced machinery or equipment and thus the price of hydrogen fuel remain relatively out of reach from the ordinary consumers of fuels. But if the deuterium deposit under the Philippine seas can be obtained, hydrogen gas prices could become far more reasonable and affordable. If natural deuterium is utilized as the base in the production of hydrogen fuel—-in both its most widely used form as hydrogen gas and liquid hydrogen—-the generation process would become more efficient and much cheaper. And mind you, deuterium as a source of energy is not only useful to power cars, trucks and planes. It is also being utilized to power factories and power plants in the same manner that nuclear power plants are operated. With deuterium as moderator, nuclear power plants could do away with enriched uranium as a main fuel source and this means, deuterium use could generate a whole new species of power plants that are a lot safer—-safer by a grand mile.


    The problem faced by those who wants to extract natural deuterium from the Philippines seas is probably the enormous pressure that is existing in the very area where deuterium are supposed to be found. To reach the area of deuterium concentration, a drilling system should reach a level of at least 30,000 feet deep into the ocean, where the water pressure could reach as high as 10,000 psi, or the equivalent of 10,000 tons of load pressuring from all direction. Apparently, there is no material known today that could withstand such enormous amount of pressure. Maybe diamonds could be strong enough to endure the extraordinary pressure down there but imagine how much diamonds should be needed in order to manufacture a very long tube. That’ll be unimaginable in both cost and expanse. But scientists nowadays always finds a way and when the time comes that a kind of metal could actually be developed, one that could reach ten thousand meters underwater without breaking apart and efficiently drill out barrels and barrels of sea water that contains deuterium, then that’ll be the time the Philippines could become the main hawker of fuels for the world’s cars, airplanes, buses, factories, power plants and whatever that runs and hums not by its own accord.


    So deuterium may be the gasoline of the future, the main energy source of the next millennium, and the Philippines is the only country that has them naturally tucked under its seabed in an amount and breathe that replenishes on its own every time the Earth rotates and the sea shifts from side to side.


     


    Look in Wikipedia for more information.