Saturday, January 17, 2015

Deflation in the US?

http://econ.st/1DIqLOT

An article in Espresso by the Economist commented on possible deflation occurring in the American economy with the now lower prices of fuel. I believe that some deflation is necessary and will give the overall economy more of a boost to grow growth and stabilize prices, possibly allowing more production to happen with less cost and increasing demand.

However, the article is right to point out that extended periods of deflation are bad because they cause consumers to hold off spending, anticipating lower prices. I think that lower prices in the short run is what is needed in order to keep things affordable in the marketplace, but that's just me.

Friday, January 16, 2015

Brazilian Central Banker Escapes Justice

http://www.bloomberg.com/news/2015-01-14/the-talented-mr-youssef-brazil-s-black-market-central-banker.html

Known as the “black-market central banker,” Alberto Youssef has been accused to be a part of the PetrĂ³leo scandal. This man lives a luxurious life thanks to Brazil's “slow” justice system, representing Brazil's economic potential being stunted by corruption and crime. He has been a player in Brazil's greatest scandals for the past 20 years. The article describes some of these scandals, including his career as a doleiro.  However large his impact, Youssef still claims he is just a small piece of the larger system of corruption. His lawyer describes him as “the link between all involved.”
Corruption has allowed many politicians, CEOs and more get away with breaking the law.

On a different note, Brazil suffers environmentally and cruelly mistreats their natives for the sake of economic growth.

Tuesday, January 13, 2015

Indonesia might become the largest economy of Southeast Asia

http://www.bloomberg.com/news/2015-01-13/indonesia-tops-southeast-asia-luring-new-factories-survey-shows.html

By 2019,  Indonesia will have 59 manufacturing plants set up, a 68% increase and this will lead Indonesia to surpass Malaysia and Thailand.

Indonesia is a mixed economy and revitalizing the economy has been one of the goals of the new Indonesian President Joko Widodo.

The President has been restructuring the fuel subsidies to increase budget for infrastructure, which should boost the economy. The government is also planning on starting a land bank to accelerate infrastructure projects.The Jakarta Composite Index (JCI) has also increased by 3% since the inauguration of the new President.

The British Chamber of Commerce predicts that investments in Indonesia will rise by 15% and the government will also cut permit procedures to make global trade easier.