The "nay sayers" have it

Did we end the year 2011 on a note that said: “To be continued”?

When I opened our TV for the first working day of the year, all I could hear were pronouncements of foreboding and difficulty ahead. French President Nicholas Sarkozy gave what was labeled a “grave” New Year’s address signaling tough economic decisions that will have to be made in 2012 particularly spending cuts and cost savings.

German Chancellor Angela Merkel likewise gave her New Year address in almost the same tone and direction, warning that although Germany is the leading economy in the Euro zone, there is little to be expected in terms of economic growth.

While the Germans and the French face more of the same in 2012, they have more to be thankful for, than the people of Greece. Our family friend Natasha who migrated from the Netherlands to Greece has been sharing stories about the great difficulty and sacrifices that the Greek people have been making.

According to Natasha, most of their friends have given up more than just luxury but also some necessities. Considering it is the middle of winter, she shares that many families have drastically cut down or totally given up on “heating.” Instead many Greeks have returned to the old ways of wrapping themselves up in layers of clothes and using lots of blankets. The word party and feast is not popular and they are making every penny count because they have no idea how long their “winter of discontent” will last.

Here in the Philippines, people have been asking me about how 2012 looks in terms of the economy and personal financial prospects. To be honest it takes me a minute or two before deciding on what to say. It’s a choice between being brutally honest or compassionately vague. After enduring a year of personal and financial difficulty, many Filipinos are almost begging to hear a positive forecast or not hear anything at all.

But no matter how optimistic we are, the world has become so small that if a nation in Europe sneezes, some country in Asia could catch a cold. Even in Biblical times, no King could change or alter the writing on the wall. Sad to say, the writing once again indicates that “The Nay Sayers” have it, just like last year when 2011 rolled in and global experts and leaders said it was going to be a tough year.

In the Philippines, we will probably carry on with the unfinished economic telenovela that ended on December 31, 2011 with the inscription: To be continued….

Given the fact that the PNoy administration has spent the last 18 months cleaning up and trying to develop a “spending” approach to national development more than spending money, given that the PNoy administration did not spend practically anything in the first 10 months of 2011 and given that we don’t have a lot of strong industries, there are serious doubts that the administration will be receiving high marks for economic improvements.

2011 was bad for our primary export; OFWs, that was drastically curbed due to conflicts, wars and government intervention, it would be safe to say that 2012, at least for the first half will just be a continuation of the 2011 economic slow down, or worse.

While it is the government’s job to promote hope and good news, it cannot deny that at least 5 provinces were badly damaged by typhoons in 2011. This sucked off a lot of money from our national budget and will continue to do so in the case of Iligan and Cagayan de Oro.

Given this scenario, what are ordinary people like you and I suppose to do? For starters, “expect the worse but do your best.” Instead of being slammed down by negative forecasts and glum prospects, simply use the expert forecast the same way you listen to your doctor about your medical condition. You hope that he or she knows what they’re doing, believe them and start following your treatment option.

What you own and what you have is already your advantage. Many people get burned because they were distracted doing too many things at the same time. What ever your business or job is, don’t just make the best out of it, “MAXIMIZE” it. Many people who got layed off or became redundant in bad economic times were usually “dispensable.”

In the same token, businesses that collapse were engaged in products or services that were dispensable, or too expensive to live with. That’s what Greeks and Filipinos alike have discovered. They could live with less or live without. While Greeks went for more clothes and blankets their pocket could afford, more Filipinos bought their own motorcycles on installment to make better use of the money they spent for bus or jeepney fare.

In short, the idea is to find more work, do more work, but to live frugal and practical lives. Set goals for yourselves. Cut back on your electricity, cell phone bills, gasoline and transportation bills. Celebrate only the meaningful, buy only the necessary and save. Save the money, the time, the effort and the memories. Don’t give them away.

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