Interesting article worth reading about the Philippines.brbrRoughly 10% --- nine million people --- of the Philippines population has left the country to take a title=nanny target=_blank href=http://www.iht.com/articles/2008/12/23/sports/migrants.phpoverseas jobs/a, primarily as maids, nannies, and nurses. brbrThere are only two Philippine stocks listed on U.S exchanges (Etelcare Global Solutions and Philippine Long Distance Telephone) so I haven't paid much attention to the Philippines for investment ideas.

I almost didn't believe the number when I saw it: a title=exports target=_blank href=http://www.nytimes.com/2008/12/22/business/worldbusiness/22trade.htmlJapanese exports plunged by 26.7%/a in November.brbrExports to the U.S. were even worse: exports to the U.S. dropped by 34%.

We all know that Toyota makes great cars but they also make great profits. For the last 70 years in a row, Toyota has made money. Not anymore. brbrToyota is forecasting that it will a title=toyota target=_blank href=http://biz.yahoo.com/ap/081222/as_japan_toyota.html?.v=50lose money in 2009 /abecause of plunging demand and a strong yen.brbrThe tough times are hitting us far faster, wider and deeper than expected. This is an unprecedented crisis requiring urgent action.

The news has been filled with stories about tapped out consumers and weak holiday sales. The retail situation in couldn't be more different. brbrThe Chinese Ministry of Commerce reported that a title=retail target=_blank href=http://news.xinhuanet.com/english/2008-12/23/content_10544757.htmC/aahina's retail sales/a broke the 10-trillion-yuan (about $1.5 trillion U.S. dollars) for the first time, which works out to roughly a 21% increase over the previous year.

The dollar amount isn't huge but the change in direction could be.brbrChina reported that its cash horde of a title=cash target=_blank href=http://uk.reuters.com/article/marketsNewsUS/idUKPEK29524820081222foreign exchange reserves declined /afrom $1.906 trillion to $1.89 in September (most recent numbers).brbrThat's the first time since December of 2003 that China's cash reserves have declined. brbr

At a cross-straits conference in Shanghai, the Chinese government pledged to help Taiwan through any economic slowdown. Part of that pledge included a title=lcd target=_blank href=http://www.reuters.com/article/technology-media-telco-SP/idUSTP4977520081222$2 billion of orders for the flat panel monitors/TVs /afrom Taiwan manufacturers. brbrThink AUO Optronics (NYSE:AUO) is happy about this news?

The People's Bank of China (the Chinese Fed) cut it key lending rate by 27 basis points 5.31%. This is the a title=cut target=_blank href=http://www.usatoday.com/money/world/2008-12-22-china-interest-rates_N.htmfifth time since September/a that China has cut interest rates. brbrbr

These are some of the a title=imf target=_blank href=http://www.reuters.com/article/economicNews/idUSLF4065320081215most worrisome quotes/a I've ever heard about the Chinese economy. And they are from the head of the International Monetary Fund. brbrWe started with China at 11% growth, then 8%, then 7% then China will probably grow at 5% or 6%. The possibility of a global recession is real, we realize something must be done. brp We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting the effectiveness of some fiscal policy measures./p p We anticipate that the gross effect will last some time. We need large and diversified stimulus support that will last longer than one or two quarters./ppWhat the IMF is telling us is that things are going to get very ugly. /pp/p

China's National Bureau of Statistics disclosed that industrial output rose 5.4% in November compared to the same period last year. brbrIt is, however, the a title=output target=_blank href=http://news.xinhuanet.com/english/2008-12/15/content_10508111.htmsmallest increase since January 2001. /abrbrSort of ties into the falling electricity production and oil imports, doesn't it? br

Year-over-year a title=electricity target=_blank href=http://business.theage.com.au/business/world-business/get-ready-for-toyota-shock-20081215-6ydw.htmlelectricity production dropped by 11%/a in November, a very clear sign that industrial activity is falling pretty fast. brbr