This article criticize the cuts in food stamp, part of welfare reform attempt proposed by Republican Study Committee. The author describes food stamps as the "ultimate ground-level crutch for Americans staggering against poverty" and an important factor for keeping about 4.5 million American people stay off the official poverty level. The proposal by the Republicans state that they could save $1.4 trillion across a decade through cutting down welfare programs and yet still help "down-and-out families". The author emphasize the need to protect the needy people first and protecting programs vital to society.
Saturday, March 26, 2011
Another Year of living dangerously
This article is about how the year of 2011 was supposed to be a stress free year in terms of economic disasters. Unfortunately, the disaster in Japan, and the ongoing issues in the middle east leaves us living yet again on the edge. Before the disasters, the stock market was starting to show signs of growth. With the growth, investors began to sell back bonds that they had purchases in case of troubled times.
It seems impossible for there to be a year without disasters that have a large influence on the economy. Japan is the third largest economy in the world behind the US and China. The disaster has created many problems for car manufacturers since many of the companies have moved production either to china or Japan. Japanese car companies have seen a lot of trouble in terms of imports and exports of cars, car parts, and many others. Also, oil prices are expected to rise in result of the disaster. All of this is going to have a long term effect on the US and economies world wide.
The global economy: Another year of living dangerously
Economists' worries at the beginning of this year were that emerging markets were going to grow too fast. We can clearly see that this hasn't been the case.
In this article, the author talks of the lack of economic boost that we have seen this past year. The last few years have been plagued by the world recession, but economists saw that many of the steps governments took to alleviate the downturn worked, and that this would be the year for growth. There thinking was that everything would now be uphill. But unrest in the middle east, and the Japanese disasters have shocked the recovering economies and their consequences may be seen for some time to come.
Oil prices have risen sharply, limiting economic growth by about .2 percent for each 10 percent increase in price. If markets are not able to quickly adapt to these shocks, the world economic recovery may be delayed even further.
In this article, the author talks of the lack of economic boost that we have seen this past year. The last few years have been plagued by the world recession, but economists saw that many of the steps governments took to alleviate the downturn worked, and that this would be the year for growth. There thinking was that everything would now be uphill. But unrest in the middle east, and the Japanese disasters have shocked the recovering economies and their consequences may be seen for some time to come.
Oil prices have risen sharply, limiting economic growth by about .2 percent for each 10 percent increase in price. If markets are not able to quickly adapt to these shocks, the world economic recovery may be delayed even further.
China's Economy: Decelerating
This article explains the pressures China is facing regarding its high inflation rate. Finally after months of inflation, it appears that there may be hope for a slow down of rising prices.
Firstly, due to droughts and other weather conditions, food prices rose 11% in the past year. By chance, the northern region finally got some rain, and so the crop is probably going to be much larger and healthier, which will decrease food prices.
Secondly, the money supply has been growing much faster than the Chinese government's targeted rates. In February, there was some evidence of a slowdown that much more accurately reflected the government's expectations.
Lastly, the huge amount of credit being given out has seemed to decrease. The problem appears to be that while it seems that the amount of credit is decreasing, the truth may be that banks are just finding ways to hide it in other accounts. This is a definite problem and could effect the government's prediction making abilities because they do not have full and perfect information.
Firstly, due to droughts and other weather conditions, food prices rose 11% in the past year. By chance, the northern region finally got some rain, and so the crop is probably going to be much larger and healthier, which will decrease food prices.
Secondly, the money supply has been growing much faster than the Chinese government's targeted rates. In February, there was some evidence of a slowdown that much more accurately reflected the government's expectations.
Lastly, the huge amount of credit being given out has seemed to decrease. The problem appears to be that while it seems that the amount of credit is decreasing, the truth may be that banks are just finding ways to hide it in other accounts. This is a definite problem and could effect the government's prediction making abilities because they do not have full and perfect information.
China's Central Bank recommends gold for "value preservation"
The banks in China recommend buying gold to preserve their currency and hedge inflation. The Financial Markets Review has come out and stated that many currencies are declining against the value of gold.
12 states in the United States have proposed letting citizens use gold and silver as legal tender, meaning if you just so happen to live in these states, buying gold may not be a bad idea. After all gold is self stabilizing.
Thoughts?
Less Appetite for Luxury
Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Less Appetite for Luxury
Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Less Appetite for Luxury
Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Less Appetite for Luxury
Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
Friday, March 25, 2011
The World Economy Shifts Eastward
This article discusses the new paper by Danny Quah on how the center of world economy is shifting to the eastern part of the globe. Quah has been calculating the economic activity and movement across the world for the last few decades and has seen that there has been a clear movement eastward.
"In 1980 the global economy’s centre of gravity was mid-Atlantic. By 2008, from the continuing rise of China and the rest of East Asia, that centre of gravity had drifted to a location east of Helsinki and Bucharest." (Quah) He goes on to explain that this does not mean the US will have a huge fall in its economic activity, it may just mean the overall pie is getting bigger. Yet, he remained confident that the center of this world economy is shifting towards the economies of China and India.
Mets Are Said to Be Suffering Sizable Losses
The Mets, long one of baseball’s most highly valued franchises, have lost millions of dollars in recent years, including nearly $50 million in 2010, according to two people briefed on the team’s finances.
Attendance and revenue has experienced a gradual decline over the years and expect the same for the upcoming 2011 season. The organization as a whole is facing many challenges currently. The owners are being sued for $1 billion by the trustee representing Bernie Madoff's Ponzi scheme.
Apparently, the owners are trying to sell a part of the team to stay afloat. The commissioner, Bud Selig, has already given the Mets a loan worth $25 million.
The problem with this whole ordeal is that according to the trustees, the owners have been using their profits from the Madoff investments to sustain and promote business. This accusation does not bode well for the Mets organization as they try to rebound from their recent losses on and off the field.
Attendance and revenue has experienced a gradual decline over the years and expect the same for the upcoming 2011 season. The organization as a whole is facing many challenges currently. The owners are being sued for $1 billion by the trustee representing Bernie Madoff's Ponzi scheme.
Apparently, the owners are trying to sell a part of the team to stay afloat. The commissioner, Bud Selig, has already given the Mets a loan worth $25 million.
The problem with this whole ordeal is that according to the trustees, the owners have been using their profits from the Madoff investments to sustain and promote business. This accusation does not bode well for the Mets organization as they try to rebound from their recent losses on and off the field.
Toyota, Struggling With Part Shortages, to Restart Car Lines
Due to the recent events in Japan, it is projected that roughly 5 million cars worldwide will not be built this year, out of the 72 million that were expected to be sold. Many automakers are shutting down plants in Japan including Toyota and Honda. Even G.M. is affected by this as they are shutting down a plant in Louisiana. Currently, 13% of the world's automotive production is out of commission. The automakers do not see this as an "all clear" situation anytime soon.
I believe that this will eventually turnaround. Japan took a devastating hit, but there is constant effort currently in rebuilding. Automakers will have to operate under full capacity for a while strictly because that is all they can do. Many Japanese automakers are affected by this, but even U.S. makers are taking a hit in production because of parts made in Japan are in the radiation zone. These automakers have no choice but to wait it out and hope for the best.
I believe that this will eventually turnaround. Japan took a devastating hit, but there is constant effort currently in rebuilding. Automakers will have to operate under full capacity for a while strictly because that is all they can do. Many Japanese automakers are affected by this, but even U.S. makers are taking a hit in production because of parts made in Japan are in the radiation zone. These automakers have no choice but to wait it out and hope for the best.
Thursday, March 24, 2011
Portugal turmoil intensifies bailout talk
This article talks about how Portugal's national debt crisis has gotten so out of control that there are rumors that they might ask for an international bailout. With recent worries about the looming national debt Portugal's prime minister has turned in his resignation, because many different political groups within the country are partially blaming him. The country is expected to ask for a bailout sometime soon during the european summit taking place toady and tomorrow. if they do receive a bailout they will become the third country to do so in the past two years.
Monday, March 21, 2011
Rustbelt recovery
This article talks about how many of the industries that rely on manufacturing are seeing much greater growth than other sectors. The article points out that in manufacturing intensive states like Ohio, Michigan, and Illinois unemployment rates have fallen quicker than in other states due to the rising demand for manufactured goods. It's not just the big companies who are recovering, either. The article discusses how many smaller manufacturing companies have benefitted due to the trickle down of parts needed. Many of these companies who make machinery or the primary parts have re-hired at least as many as they had to lay off during the recession. These rising manufacturing numbers are also contributed to the fact that foreign countries have been opening some manufacturing facilities in the U.S.
Obama in Brazil: "We want to be your best customer"
President Obama wrapped up his official visit to Brazil yesterday by signing 10 new trade agreements, cementing America's commitment to Latin America's largest economy. The agreements covered a wide-range of policy issues, ranging from the removal of non-tariff trade barriers, to expansions in educational exchanges, to the joint development of aviation biofuels. These new agreements aim to further bolster economic relations between two nations that have already benefitted from a strengthening of ties within the last decade. For example, American exports to Brazil have more than doubled in the past five years. And, inversely, Brazil has become the fourth-biggest U.S. creditor as it now holds $198 billion in Treasuries. I personally believe that the United States should work to establish Brazil as their biggest ally in Latin America. Brazil's $2.2 trillion economy grew by 7.5% last year, propelling a neighbor from America's own backyard to the forefront of the world's upcoming economic powers. As such, the United States should jump on every occasion to build their relationship with Brazil and harness their growing economic clout.
Sunday, March 20, 2011
Gulf Shares Rised as Saudi King Increased Spending
King Abdulla of Saudi Arabia announced the construction of 500,000 houses at a cost of 250 billion riyals ($66.7 billion) and raised the value of mortgages provided to nationals to 500,000 riyals from 300,000 riyals on March 18. This was part of the effort to prevent protests from escalating.The new package comes after $36 billion in spending was announced Feb. 23. Saudi companies listed on the Tadawul, including Saudi Basic Industries Corp. (SABIC), will pay their staff two months pay in bonus in line with a royal decree covering Saudi civil servants.
The package had positive effects on the Gulf shares. Sabic, the world’s biggest petrochemical maker, rallied 4.6 percent. Emaar Properties PJSC, builder of the world’s tallest skyscraper, advanced to the highest in almost a month. Saudi’s Tadawul All Share Index (SASEIDX) rose 4.5 percent to 6,343.79 at the 3:30 p.m. close in Riyadh, the highest since Feb. 19. The market was closed yesterday for a holiday.
On the other hand, demonstrators across the Middle East, including Yemen, Libya, Bahrain and Syria are still demanding civil rights, higher living standards and the removal of entrenched regimes. Egypt's stock exchange was still closed, but was said to possibly be opened "within days", said Prime Minister Essam Sharaf in an interview yesterday. Comparing to other countries in the region, Saudi Arabia seemed to be doing pretty well.
The package had positive effects on the Gulf shares. Sabic, the world’s biggest petrochemical maker, rallied 4.6 percent. Emaar Properties PJSC, builder of the world’s tallest skyscraper, advanced to the highest in almost a month. Saudi’s Tadawul All Share Index (SASEIDX) rose 4.5 percent to 6,343.79 at the 3:30 p.m. close in Riyadh, the highest since Feb. 19. The market was closed yesterday for a holiday.
On the other hand, demonstrators across the Middle East, including Yemen, Libya, Bahrain and Syria are still demanding civil rights, higher living standards and the removal of entrenched regimes. Egypt's stock exchange was still closed, but was said to possibly be opened "within days", said Prime Minister Essam Sharaf in an interview yesterday. Comparing to other countries in the region, Saudi Arabia seemed to be doing pretty well.
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