by – Glen Palaca Hubahib, Esq.

It’s the economy . . .

James Carville, the architect of President Bill Clinton’s 1992 victory over President George H.W. Bush (the dad) originally coined “It’s the economy, stupid,” as an internal reminder to Clinton’s campaign staff to focus and hammer on this issue.

Less than three months to the U.S. midterm elections the Republican candidates are hounded by the rising prices and inflation. Per Pew Research Center, the economy is front and center and Democratic candidates hold a modest edge on the generic ballot, while their voters are more attentive to the campaign. If the Democratic party controls either the Senate or the House of Representatives after the November elections, then Pres. Trump becomes a lame duck president.

SCO Summit 2026: World Leaders Arrive in Kyrgyztan (Eurasia) for High-Stakes Global Talks (SCMP)

Previously the U.S. was actively intervening to prop up the Japanese Yen so that the Japanese will not sell their U.S. Treasuries. This week the U.S. Treasury Department is buying back bonds (government debt) to curtail the rising interest rates. Higher rates on the bonds means the government pays more on the interest to service the debts. That would also put upward pressure on the mortgage rate that affects home buying, auto loans and credit card rates. As of August 2026, the total U.S. government debt is $40.05 trillion.

Source: Google Finance

  Meanwhile, the Philippine Peso is trending upward and breached the Php 62 exchange this week. BSP Governor Remolona stated the government will not defend the peso. So, we expect that it will go up more especially that we have minimal foreign investments, Php 3 trillion budget deficit in 2027 and close to Php 20 trillion national debt. The latter pushed our Debt to GDP ratio to 66%. Ideally it should be below 60% Debt to GDP ratio. The Philippines cannot find a respite because the Middle East war is on again and that translates to high petroleum prices, few OFW placements and reduce remittances.

Additionally, notable bankers have expressed alarm about the Philippine economy: In recent media interviews, BDO’s Ed Francisco pointed out that foreign funds are reducing their exposure to the Philippines due to slow economic growth and political uncertainty. Similarly, U.S. Goldman Sachs, British Barclays, Japan’s MUFG Bank and ANZ Research are projecting negative outlook and bearish stance because of the political turmoil and corruption. Ditto with Moody’s and Fitch Rating who revised their Philippine outlook to negative.

Immigration news:

The U.S. Department of State has temporarily paused immigrant visa interview appointments worldwide so its consular officers can undergo training on new public charge screening guidance i.e. to determine whether someone seeking to immigrate is likely to become dependent on government assistance. Nonimmigrant visa appointments such as tourist visa interviews are not affected by this action.

In another development, Asylum application denial rate has risen to 94%. Also, The Trump administration is aggressively reshaping the U.S. immigration court system by purging dozens of sitting judges and onboarding a record-setting class of new adjudicators to accelerate deportation orders. These developments are in line with the current administration policy of strict immigration enforcement and protecting the communities.

[Note: Glen Palaca Hubahib is admitted to practice law in California and the Philippines. He also holds an Electrical Engineering and MBA degrees. He writes on the intersection of law, history and political philosophy. He is a regular resource person of the top rated “Open Forum” program of Ardy Araneta-Batoy & Gloria Leodivica Araneta at station DYTR. The article reflects the author’s opinion and is not a legal advice. Send your comments to the author at hubahibg@gmail.com.]