I currently study at API in Portland with Guru Kurt Goodwin. It's mostly Kali and Arnis, but he throws in influences from a lot of things. I don't consider myself a kickboxer, I haven't got the stamina for it, but I usually stick around for their class too since the skills are valuable and the workout is killer.
While often associates with the Filipino Combative Arts such as Kali and Arnis, once you open it, a balisong is just a knife and it can go into any blade martial art form.
A closed balisong also makes a good punch weight and a good striking weapon that also fits well into many different systems, but seems especially well-suited for the Filipino styles.
Balisong manipulation is a separate art in and of itself and is largely non-combative. Once you get past a few of the most basic openings, all of the fancy stuff you see accomplished balisong artists do is just for fun.
You don't have to be a martial artist to practice balisong manipulation and to become an accomplished balisong artist. Likewise, you don't have to be very accomplished at balisong manipulation to use one combatively.
If you ask me, the balisong as a combative weapon is a bit like the muzzle-loading pistol. Make no mistake: a muzzle-loading pistol is an effective weapon fully capable of killing your opponent. But, in the light of "modern" revolvers and semi-automatic pistols, you just don't see many folks serious about defensive handgunning carrying 'em anymore. It's not that you can't get 'em. You can. Several companies are even manufacturing new ones at reasonable prices. It's not that they're illegal. In many cases, they are more legal than "modern" firearms. (BTW, I put the term "modern" in quotes because most "modern" firearms are based on designs that are over a hundred years old.) So, if muzzle-loading pistols are effective, available, and legal, why don't more defensive handgunners choose them? Well, the "modern" alternatives are just so much better.
When I consider the balisong, even the BM42, in the light of the many fine "tactical" folders offered by the likes of Benchmade, Microtech, and Spyderco, the balisong looks a little obsolete. I'm sorry, Clay, but I can open my AFCK faster than you can open a balisiong, and you don't even want to take on my Spike or my Halo. This explains why the majority of martial artists have lost interest in the balisong.
But, remember that I said that muzzle-loading pistols are still readily available, still in production even though few if any people still carry them defensively? Apparently there are still plenty of people who enjoy them for other purposes. How much more this should be true for the balisong when there is a whole other art associated with them which is so much fun unto itself.
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Chuck
Balisongs -- because it don't mean a thing if it ain't got that swing!
http://www.balisongcollector.com