Money, money

The government did two things with our money in 2024. Both will impact on our political and economic consciousness in 2025 and perhaps, beyond.

One, the Bangko Sentral ng Pilipinas, the reincarnation of a once bankrupt Central Bank, has removed former presidents and heroes from our paper currencies.

Two, our politicians, particularly our senators and congressmen, mangled the 2025 national government budget beyond belief and relief. The money monstrosity, P6.326 trillion, opens exciting (for our politicians) and salivatory (for our politicians) possibilities for premeditated plunder of the unprecedented kind, a horrible act of cruelty on our people.

My columnist colleagues in this paper have adequately pointed out the inanities in the 2025 budget and its huge possibilities for abuse.

On Dec. 30, 2024, President Ferdinand Marcos Jr. signed the budget bill into law. He sounded reassuringly enough. He said:

“On this day that we honor our national hero, we enact the 2025 General Appropriations Act. And through this measure the dreams of our heroes are realized by a nation birthed by their sacrifices.

“This budget reflects our collective commitment to transforming economic gains into meaningful outcomes for every Filipino. It is designed not just to address our present needs, but to sustain growth and to uplift the lives of generations that are yet to come.

“In the first two years of this administration, we focused on creating the foundation for an inclusive, sustainable and resilient Philippines. From targeted reforms to strategic investments, we ensured that our progress is felt in the daily lives of every Filipino.

“Today, we build on that momentum, guided by the same precision, purpose and unwavering determination.”

Today, being New Year, let us have faith in the President. After all, notes Executive Secretary Lucas Bersamin, BBM had been a local government official (governor of Ilocos Norte), a congressman and a senator. He thinks like an economist – and a banker.

Let me then focus on the new currency bills. They are no longer made of paper. They are plastic. Synthetic polymers come from polyethylene, a petrochemical derived from crude oil. Crude oil, the source of plastic, harms the environment. Plastic cannot be destroyed. Paper can.

The Philippines used to have among the best currency and best designed notes in the world. They were made of paper, which is biodegradable, and abaca, the most durable natural fiber (better than plastic in ropes).

The BSP replaced our presidents and heroes with animals and plants.

If these living things were edible (probably they are), our heroes ay parang ginawang gulay at ulam. This is not a metaphor. In 2024, half of our money expenditures went to food.

Food was short in 2023. More so in 2024.

The BSP defined the problem as inflation, not a food shortage. So instead of ordering the stoic banking system to allocate more funds for agriculture, the BSP doubled interest rates in one year and tripled them in three years, increasing cost of capital that in turn slowed production and cut job generation. Not surprisingly, the GDP or economic growth rate declined from 7.6 percent in 2022 to 5.5 percent in 2023 and to 5.9 percent in 2024.

The state-owned Landbank alone has more than P2 trillion of idle deposits, money if deployed to food production, would solve our food shortage overnight. The Department of Agriculture correctly called it a food shortage but blamed the rice cartel and fickle weather.

An eagle has replaced World War II martyrs Abad Santos et al from the 1,000-peso bill. A deer has replaced the Aquinos and Bonifacio from our 500-peso bill. A peacock and an orchid have replaced president Manuel Roxas from the 100-peso bill. A cat (leopard) and an unknown flower have replaced president Sergio Osmeña from the 50-peso bill.

To me, and to the world, the eagle is the symbol of America. The peacock is a symbol of arrogance or a person na malaking bilib sa sarili (one who has excessive self-esteem). Remember the phrase, “strut like a peacock?” A leopard is a predator. And orchids? Well, they are the most expensive and most difficult to maintain flowers. They are flowers of the rich. And the BSP wants us to adopt these flora and fauna as our “national identity?” “E di wow,” as the late president Noynoy Aquino would sneer.

The BSP had explained away the plastic banknotes as being “more responsive to the needs of the elderly and the visually impaired, and feature the latest anti-counterfeiting technology.” The elderly need money and health care. The 2025 GAA removed a P74.31-billion subsidy for PhilHealth. As for the visually impaired, they cannot see the color of your money and don’t get it anyway.

Meanwhile, the world’s biggest economy, which accounts for 65 percent of the world’s capital, still uses paper money. Quora says paper currency made from cotton and linen has distinct advantages, such as familiarity, ease of handling and a well-established production process.

Quora cites some reasons why the US has not adopted polymer like Canada, Australia and the Philippines:

• Cost. Transitioning to polymer currency involves significant costs, including new printing equipment, redesigning bills and public education campaigns. The US has a vast existing stock of paper currency. Changing it requires a massive and expensive overhaul.

• Acceptance. Americans are accustomed to paper notes. Acceptance of new currency materials often takes time and education.

• Durability and security. While polymer notes are more durable and resistant to wear and tear, the US has invested heavily in advanced security features for its paper notes. The US dollar bill is secure against counterfeiting.

• Cultural factors. Currency often carries cultural significance. The US has a long history and tradition associated with its paper notes. This may influence the reluctance to change.

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