Sunday, October 30, 2016

Don't cut off your nose to spite your face



Perhaps some third world leaders should look at the latest poll conducted among the citizens of Cuba before making bold statements about the United States. The latest poll reveals 79% of Cubans are dissatisfied with the country’s economic system; 70% want to start their own business and the Cuban government will not allow them to do so. Nearly two-thirds of Cubans (64%) believe normalizing relations with the U.S. could change the economic system, though only 37% thought the Cuban political system would allow the changes to take place because it would mean them surrendering control to the people.

Growth has slowed sharply in recent years. According to Cuba’s national statistical agency, the country’s gross domestic product in 2013 was 77.2 billion pesos – which, depending on which exchange rate one uses, could equate to anything from $77.2 billion (at the official rate of 1 convertible peso to $1) to $3.2 billion (at the internal rate of 24 regular pesos to 1 convertible peso). But either way, growth has slowed dramatically from the mid-2000's. The rate exchange of their money is different for Cuban citizens and foreigners visiting or doing business in the country. The growth rate in GDP is below 1.3 percent. They rank 177 out of 222 countries world wide. Compare that to the Philippine GDP - The Philippines economy grew an annual 7.0 percent in the second quarter of 2016. GDP is based on population that must be kept in mind.

The Soviet Union was the main trading partner and strategic ally of Fidel Castro during the time of the Cold War. The collapse of the socialist bloc put the island on the brink of economic collapse in the early 1990's. Since the Russian government could no longer provide the support they had given Cuba they agreed in 2014 to reduce the DEBT Cuba owed Russia by 35%. Cuba could not pay the debt anyway.  Cuba still owes Russia 3.5 billion dollars after the debt was reduced. In return for reducing the debt Cuba agreed to allow Russia to open a small spy facility in Havana.  

There was a time in the early 1960’s when Fidel Castro made statements like, “It will be Russia and Cuba against the United States.”  That did not work out so well! Obama in my opinion is making a bad mistake in giving Cuba any aid and relaxing the trade embargo with Cuba. It is obvious due to the Russian economy slowing Russia cannot provide what the Cuban government needs to survive so why should the United States bail Cuba out of their bad decision to “sever ties” with the United States in the 1960’s. Why should our incompetent President Obama be allowed to give them the $132 billion in aid he wants to give them, since in 2014 Cuba agreed to allow Russia to open a small spy station in Cuba?

Cuba is so desperate today that they are drifting out of Moscow’s orbit and wanting to return to the United States orbit. The people  not the leaders paid a price for fifty years by severing their ties with the United States for Russia and no longer can afford to pay the price. It seems some third world leaders do not do their research before making bold statements against the United States and other Western Nations.

It is best for third world countries not to sever ties with any first world country. They should try to maintain a relationship with them all. What does a third world country really have to offer a first world country? If Roosevelt and Truman believed they could attack and beat Japan without defending the Philippines I believe modern day Presidents realize they do not need the Philippines to defend themselves against China.  A war that most likely will never happen because China or the United States or Russia do not want that.

Cuba could not survive with the help they were getting from Russia and had to turn to Venezuela, the Cuban authorities made it clear that further economic cooperation with Moscow was not a priority.  Today the Venezuela economy is failing and Cuba cannot depend on Venezuela or Russia so they reach out to the United States to save them. Why should we?

Russia did build In northeast Cuba two nickel plants, but Russia has since turned them over to the Canadians. Why would Russia be interested in mining in the Philippines if they were not interested in maintaining mining in Cuba and turned the mines over to the Canadians? The Canadians presently mine in the Philippines. New hotels were built by Mexican and Spanish firms in Cuba they were not build by Russia or China. True, two years ago Cuba did seem to express renewed interest in working with Russian oil companies. But experience tells us to remain cautious. For two decades Russian experts explored for oil off the Cuban coast, finding a few juicy items along the way, but then suddenly turned all their discoveries over to  Mexico. I would tend to think any oil deal China makes with the Philippines will benefit China far more than it will the people of the Philippines. I doubt that the Russians really have any interest in the South China Sea oil production since it would possibly damage their relationships with China.

I have also been amused that all the contracts and deals China has proposed with the Philippines requires they use China Companies to build them which helps the Chinese economy not the Philippine economy. The loans to build go right back to the Chinese government and the Philippines pays interest on the money. I am not aware of any contract or deal that the United States has made with the Philippines that requires them to only use American companies.

I know that the powers to be in the Philippines have far more knowledge of deals, contracts, trade agreements, foreign relationships than stupid little me. I have never work for any government in my life. I am just a simple man with little knowledge, but I cannot make sense of all the talk of ending a long term relationship for a promise that may never materialize and if it does the strings attached may be more than the strings you claim you want to break with the United States.


In my personal life I have never ended a long term friendship in order to gain a new friendship. In my professional life I have never ended a business relationship with an old reliable company to do business with an unknown company with no proven record. 

Revenge is hell and destroys! The Aquino's and some in the Philippines have spent three decades trying to get even with the Marcos family and it has not brought them peace. There are some that were and still are loyal to the Marcos family that have sought revenge on the Aquino family and the United States for not supporting Marcos and it has not brought them peace. Only forgiveness brings peace. 

To show how arrogant some in governments can be when it comes to revenge a United States Congressman is stopping the sale of 27,000 weapons to the Philippine National Police. Who does that hurt? Certainly not the Philippines. Duterte will purchase the weapons in China, Israel or Japan. It only hurts the people of the United States and the United States economy. The people we elect are not as smart as we think they are. 

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