Unpaid jobs: The new normal?

With nearly 14 million unemployed workers in America, many have gotten so desperate that they're willing to work for free, and companies that have used free workers say it can pay off when done right. "People who work for free are far hungrier than anybody who has a salary, so they're going to outperform, they're going to try to please, they're going to be creative," says Kelly Fallis, chief executive of Remote Stylist, a Toronto and New York-based startup that provides Web-based interior design services. In the last three years, Fallis has used about 50 unpaid interns for duties in marketing, editorial, advertising, sales, account management and public relations. Why do people work for free? The benefit unpaid labor offers to a business is pretty clear, but it can also give employees needed experience, a reference letter or even a self-esteem boost in a depressing economy. Sometimes, gratis work can lead directly to a paid opportunity. There are strict federal and state rules that workers must be paid the minimum wage and paid for overtime, and must abide by other provisions in the Fair Labor Standards Act, which applies to about 135 million people working for 7.3 million employers. Unless someone is an intern, trainee or independent contractor, he or she has entered into an employment relationship when starting to work for a company.The Labor Department has a strict six-point test to determine whether someone is an intern or trainee and separate guidelines for independent contractors. "If a person has entered into an employment relationship with a company, they need to be paid for their work," a U.S. Labor Department spokesperson says. Companies that are found violating the law will likely have to provide back pay, monetary penalties up to $1,100 per violation and damages that equal the amount of wages.

Why Lexus Doesn't Lead the Pack in China

Lexus has become one of the leaders in selling luxury model cars within the U.S. automobile market. The Toyota owned company cannot seem to find the same success in China. Lexus sold just a fifth of the percent competitors Audi sold last year. This is due to two different issues. For one, Lexus imports all its cars into the Chinese market. Within the Chinese automobile market, importers must pay a 25% custom duty and a 17% value-added tax. Another issue is the late start Lexus got off to introducing Lexus-model cars into the Chinese market. Lexus was introduced in 1995, whereas competitor Audi introduced itself in 1985, giving Audi more time to solidify itself within the market and understand consumer preferences. To combat its faulty sales, Lexus has tried to increase its customer service options within the Chinese market. Lexus has also introduced cars that have smaller engines, tapping into the Chinese preference of owning smaller cars. Lexus hopes that by adjusting its approach to the Chinese market, it can increase car sales within the Chinese automobile market within the near future.

Fear of Shortages Drives Panic Buying of Japanese Goods

In the aftermath of the Japan disaster, there are expected shortages of high quality technical goods produced almost exclusively by Japan.

For example Hollywood is a big consumer of video tape which is largely produced in Japan.

A specific example would of of Echelon, a San Francisco based company which sells 'smart meters' to monitor electricity consumption. Echelon's executive board recently held an emergency meeting to pre-order a stock of products to deal with the possibility of a disturbance in production.

As of right now, most Japanese firms have been un-phased by the disaster. However it doesn't take much to stagnate the production process of technical firms, as is the case with Japan. Firms such as Echelon are strategically dealing with worst case possibilities as they have to pay large compensations to their customers for delivering late on their contracts.

The nuclear scare may have been highly dramatized by the media, but the speculation has tangible results.

Vodafone is having trouble in India.

India's market for cell phone users is on the up rise but taxes seem to be making it difficult for Vodafone to maintain profits. Profit per user are very small due to the scarce use of minutes and trouble with a lawsuit relating to tax troubles. Vodafone claims that they did not make a profit off of their acquisition so they should not owe taxes but the Indian tax authorities seem to disagree.

California's Fate in Limbo

This article from The Economist explains the dire situation in California, a 25 Billion dollar deficit that must be solved quickly or the state will have to default on many loans it has taken out. If this were to happen, the US Government would have to bail them out to avoid an enormous depression. Yet we cannot afford to bail out a state like California completely.
Even with all this on the line, republicans in California are moving to block measures proposed by Governor Brown, a democrat. The bill he has proposed even includes massive cuts--something the republican party has been calling for--that only spare the schools and a select few public services. The other half of the bill calls for increases in sales, income, and car taxes. This is the part Republicans obstinately object to, and have now banded together to block any and all budgetary legislation Gov. Jerry Brown proposes.
This could have devastating economic effects if a stalemate continues for too long. With the US federal government facing the prospect of hitting the national debt ceiling, bailing out California, whose debt is larger than many states entire budgets, would be a disaster. The question remains: will politicians realize the need for action in time, or will the tradition of reactionary politics doom the Californian and US economy?

N.Y. Budget Deal Cuts Aid to Schools and Health Care

Gov. Andrew M. Cuomo and leaders of the Legislature imposed a $132.5 billion budget agreement that would cut spending, impose no major new taxes and begin a long-term overhaul of New York State’s bloated Medicaid programs. The budget agreement is Albany's first on-time budget in five years which legislative leaders hopes to be a new road of responsible budgeting and effective government. It also fulfills one of Mr. Cuomo’s main campaign promises to avoid new taxes in addressing the state’s financial problems.

Mr. Cuomo persuaded legislative leaders to agree to a year-to-year cut of more than $2 billion in spending on health care and education- the two largest themes of New York’s ever-growing budget. Over all, officials said, the budget deal would reduce year-to-year spending by about 2 percent, the 1st time spending would decrease in more than a decade.

Mr. Cuomo and the Legislature agreed upon a merger among the Department of Financial Services, combining the existing state banking and insurance agencies. Cuomo is looking for other consolidations as well.

Cuomo agreed to add $250 million to his executive budget proposal- more money for schools; the blind and the deaf; human services; higher education; and prescription drugs for the elderly.

Two negative aspects is that the budget does not state what it will do for teacher layoffs as well as what prisons will be affected by the decrease in 3,700 prison beds.

Payrolls May Not Be Growing Much, but Profits Are

The economy is slowly recovery from the recession that has effected it for several years. The recovery process has been slow. An encouraging sign is that firms are beginning grow profits. However, at the same time they are refusing to hire new workers, which is keeping unemployment high. This is also contributing to the higher profits because firms are not incurring the costs associated with hiring more workers.

Sales of luxe doomsday bunkers up 1,000%

NEW YORK (CNNMoney) -- A devastating earthquake strikes Japan. A massive tsunami kills thousands. Fears of a nuclear meltdown run rampant. Bloodshed and violence escalate in Libya.

And U.S. companies selling doomsday bunkers are seeing sales skyrocket anywhere from 20% to 1,000%.

Northwest Shelter Systems, which offers shelters ranging in price from $200,000 to $20 million, has seen sales surge 70% since the uprisings in the Middle East, with the Japanese earthquake only spurring further interest. In hard numbers, that's 12 shelters already booked when the company normally sells four shelters per year.

"Sales have gone through the roof, to the point where we are having trouble keeping up," said Northwest Shelter Systems owner Kevin Thompson.

UndergroundBombShelter.com, which sells portable shelters, bomb shelters and underground bunkers, has seen inquiries soar 400% since the Japanese earthquake. So far sales of its $9,500 nuclear biological chemical shelter tents are at an all-time high -- with four sold in California last week, compared to about one a month normally.


I find this article to be very interesting because this is good news for the U.S. consumer confidence and particularly attractive as well for that sector. The question is though, is the consumer confidence going to decrease in the U.S. economy as a whole due to series of crises around the globe? And the world as well?

The Evolving Mission of Google By DAVID CARR

I'm not sure what evolution there will be, considering Google's business model and source of profit can't just be changed or even evolved to a different model. Google already gains 96% of its revenue from advertising. This leads Google to sell, and often gives away, their products because our eyeballs are the product they're truly selling. If those free services direct more of our eyeballs to their ads , then they get to make money. I think whatever Google does now or in the future will imply how to increase revenue. The competing ideas of these search engines exemplifies that we live in a form of capitalism and those with the best ideas and products should win.

U.S. inflation spike won’t last, Lockhart says

This article touches on the current inflation rate and DR, and the expectations for these rates in the near future. In the month of February we have seen some of the highest inflation in years. Most notably, this inflation has arisen as a result of the shock on the global markets as a result of the turmoil over seas. But Lockhart believes that this sudden spike in inflation wont last, as energy prices will begin to slow down shortly. Additionally, in his current proposal for the Fed Lockhart has stated that the Fed should raise the DR to 2.5% and within the next two years the American deficit will be reduced by $1.45 Million. With these encouraging numbers, the future for the US economy seems to be on the right track.

Let Them Eat Cutbacks

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.

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.

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.

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.

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.

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.

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.

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.

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.

Next time you listen to a politician throwing statistics left and right, remember this....

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.

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.

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.

Libya Oil Chief Says Crude Production ‘Could Reach a Halt’ Due to Conflict

Libya's oil production fell to less than 400,000 barrels a day after foreign companies pulled out their staff, the chairman of the country’s state-run National Oil Corp. The North African country had no intention of breaking commitments with foreign companies and called on them to send their employees back to resume work. Libya may otherwise award new oil and gas concessions directly to companies in countries such as China and India in order to raise production. Oil fell yesterday after the Libyan regime said it would cease military operations and begin talks with the rebels. Crude for April delivery dropped 35 cents to settle at $101.07 a barrel on the New York Mercantile Exchange. Futures were up as much as 2.2 percent at $103.66 before the Libyan announcement.

Nuclear accident hurts Japan’s exports

Fears of radiation are threatening Japan's export-led economy.

As Japan struggles to contain radiation leaking from crippled nuclear reactors, many countries, including China, Indonesia, South Korea and Thailand have already started to test food imported from Japan for radiation, and the European Union has recommended that its member countries do so. However, the risk is low to Americans because Japan accounts for only 4 percent of American food imports. And even less of that is food with the highest risk of contamination.

Far greater damage could occur if Japanese automobiles or electronics get contaminated with radiation, or if fear spreads among consumers that they could get exposed to radiation sitting in a Prius or playing a DVD. However, given the nature of the manufacturing industries in Japan, there is little danger of contamination reaching harmful levels, the experts said. For one, most manufacturing in Japan happens far from the nuclear plant (and many of the cars and electronics from Japanese companies are actually made outside Japan). Moreover, manufacturing is usually done indoors. Most products were in packages and the radioactive particles would not damage the product inside. If a product is known to have deposited particles they can be washed off, or a contaminated box opened by someone wearing gloves and thrown away.

Higher Prices for Consumers

I have definitely noticed the rising prices recently, and this article quantifies my observation. Prices have risen 2.1% in the last year. With the higher prices for necessary items like food and fuel, consumers and producers alike are grappling with the consequences. Consumers have even less income available for discretionary use or for saving and investing. Producers have to deal with the costs of shipping increasing. However, these producers have been able to pass along most of the higher costs to customers. With the uncertainty around the world right now concerning things like the Middle East and Japan, the prices are not expected to decline any time soon.

Japanese crisis hits world markets

Japan’s devastating 8.9 magnitude earthquake has impacted the global market. The Bank of Japan injected $97.8bn into the financial system in attempt to calm the market a day after it fed a record $184bn into money markets and eased monetary policy.

On the other hand the Dollar value rose by 0.8 percent.

This is when we see the effect of economic globalization because on country economic situation affects the market. It makes me question If globalization is good or bad?

G-7 Finance Chiefs to Discuss Measures to Help Japan

The finance ministers and central banks leaders of the G-7 countries "met assess the economic effects of the crisis in Japan and a possible response." The meeting will cover measures to support Japan, improve liquidity if needed and calm financial markets.
The leaders do not believe Japan will need direct financial assistance "given the level of Japan’s foreign exchange reserves and the wealth of the country".
The French president and finance minister called for this meeting because they "believe they have tools of monetary policy and foreign-exchange coordination that could be used to improve the situation."
"The Japanese government is mostly concerned with preventing excessive appreciation of the yen.
One initial plan could center around opening lines of credit among major central banks. Similar facilities were opened by some central banks after the terrorist attacks in the United States in 2001 and the financial market contagion in 2008 and 2009. "

Stock market hurt by nuclear power situattion in Japan

Due to worry about the nuclear crisis in Japan stock markets in the United States and Europe ended lower on Wednesday. Markets had been calmer when it comes to early trading but the markets became scared after the European Union energy commissioner Gunther Oettinger doomed the situation as out of control and said that catastrophic could happen in the following hours. The central bank of Japan has been continuously pumping liquidity into the economy and representatives of countries such as France have hinted that they might be providing Japan with Financial assistance. Some Japanese industries such as the automobile industry have managed to recover some of its losses.

Flaws in Japan’s Leadership Deepen Sense of Crisis

Japan faces its biggest challenge since the end of World War II, and needs to have strong and assertive leadership more than ever. This requires what Japan is untrained for- improvisation, clear and reassuring public communication, and cooperation among multiple powerful bureaucracies. This is needed for the nationwide mobilization for search and rescue, resettlement, and solutions to the nuclear situation.

Following the War, Japan prospered under a system which allowed the United States to handle much of its foreign policy and bureaucrats to take care of its domestic affairs. But in the past decade these corporations have lost power and its prestigious reputation and no strong political class has emerged resulting in four prime ministers in the last four years.

The question is- will japan's government and people able to unite to adjust and overcome the nation-wide disasters?

Alan Greenspan: Stimulus hurt recovery

Former federal reserve chairman, Alan Greenspan, discusses his desire to see less government intervention in order to increase business investment in capital. Alan Greenspan's thoughts and ideas on the subject are beginning to gain a lot of attention as some agree with him in his desire for less government intervention. These who agree with him believe that government intervention is the cause for uncertainty and less private sector spending. In the short video clip, Greenspan briefly discusses the deficit problem and he believes that it should be the government's priority at the moment. In order to address this problem, Greenspan believes that raising taxes would be the most efficient way to do so.

Death Toll Estimate in Japan Soars as Relief Efforts Intensify

Japan’s $5 trillion economy, which is the third largest in the world, was unbelievably threatened by the 8.9 earthquake, tsunami and recent hazards from the damaged nuclear rectors that leaked radiation. The disaster caused the economy to experience extreme turmoil by death, destruction and homelessness. This terrible catastrophe has left more than 10,000 people dead and millions of people without water, power, heat, or transportation. With all the collective anxiety, Japan’s stock market has seen the worst drop in three years with the main index falling 5.5%. The Bank of Japan put about $86 billion into the economy on Monday because of the worries for the banking and financial systems. The prime minister of Japan has kept a positive outlook on the crisis stating, “If the nation works together, we will overcome”. Since Japan does have such a strong economy, I believe they will in fact overcome this terrible tragedy.

From Gas to Gadgets: Japan's Disaster Means Higher Prices

I know there has been tons of talk about the implications of the earth quake in Japan, but here is a good article on how prices of various goods will be affected by the destruction. It is interesting to see how much the crisis will affect the United States and how the international trade will be hurt between the two countries.

Slower Growth Signaled by Wal-Mart Stock as Commodities Rise

Economists ignore volatile commodity prices when calculating inflation. The poorest families, who spend as much as 25 percent of their after-tax income on food and fuel, don’t have that luxury.

Rising prices “will shave a couple tenths off consumer spending, and the consumers that are going to get hit the most are at the lower end of the income scale,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. On March 11, he lowered his forecast for first quarter growth to 2.5 percent from 3.5 percent and second quarter growth to 3.5 percent from 4 percent, citing in part the persistence of higher energy costs.

America’s poorer families are suffering more than richer households as they face a bigger squeeze from the highest gasoline expenses in more than two years, stagnating wages and a jobless rate that has remained at or above 8.9 percent since April 2009. Their pain is shared by their preferred retailers, including Walmart and J.C. Penney Co.

“Rising gas prices and still-high unemployment levels weigh on the minds of our customers,” Bill Simon, U.S. chief executive officer of Bentonville, Arkansas-based Wal-Mart, said on a Feb. 22 earnings call. “Pressure from higher energy and commodity costs are factors that we will watch closely, as they affect our own logistics and transportation costs, as well as the prices the customer pays,” he said.

Creating a Clean Energy Economy

In this article, the former governor of Colorado and the current director of the New Energy Economy at Colorado State University, Bill Ritter Jr, encourages governors all across the U.S. to aid in the creation and development of a clean energy economy. During his term, Ritter signed over fifty pieces of legislation for clean air that not only resulted in putting Colorado in the top five of states in its amount of clean energy workers per capita, but also created thousands of jobs stimulating the economy. He claims it is the role of the state governors to help make President Obama's goal to produce 80% of America's energy from clean sources by the year 2035 into a reality. Finally, Ritter defends all this by stating that making these strides to protect the environment do not need to come at the cost of compromising production; rather they can coexist. Colorado proved this to be true by passing a bill to shut down inefficient and dirty plants and build better, cleaner ones that utilize natural gas. While governors across the nation deal with budget cuts and constraints, they should remain focused on this goal of clean energy which will in turn reduce our dependency on foreign oil, protect the environment, and create jobs.

China Operating with a Trade Deficit?

This article relates to the import/export numbers that were released out of Beijing recently. Surprisingly, China's imports raised almost twenty percent while exports raised only about two and a half percent, which caused China to have its first trade deficit in almost a year (since the previous March). While many people hope that this would be a sign of friction easing between China and its trade partners over the value of its currency (the yuan), the more likely explanation was the date of the Chinese New Year and the impact it had on the economy.

The value of the Chinese currency has and will continue to be a hot topic because China has often been the main purchaser of U.S. bonds, and the U.S. as well as other trade partners have continuously argued that the yuan has been purposely devalued by the Chinese government to the detriment of its trade partners.