Terms:
International Monetary Fund (IMF): the international organization that promotes stability between international currencies. It also allows partner countries to borrow in order to balance deficit in their country. this organization was created by the United Nations.
Bild Newspaper: A newspaper in Hamburg, Germany.
Eurozone: a geographic and economic region that consists of all the countries in the European Union. This countries also have the euro as their form of currency.
Here is a follow-up on a past blog I wrote about Greece and their mounting debt. Over the weekend I read another article on Greece. George Papaconstantinou, Minister for Finance of Greece, explained Greeece will recieve help with fuinding it's debts and should face no problems. However, Greece's debt have "undermined the euro." But Greece is determined to settle their dept for the better of the country and Eurozone. The Eurozone will provide ewmergency loans in the first year and then some backup from the International Monetary Fund. Greece expects that they will need money before May 19th. Papaconstantinou explained that "we are all confident that this will be done in time and we will be able to continue to fiance Greek public debt without any problem." As for the Greek people, Papaconstantinou said they were "courageous" and not going to give up as many other countries expect.
Not everyone is as optimistic as Papaconstantinou. French and German politicians have concerns about the debt. The French expressed that they would "come down hard on Greece" if they did not "act responsibly." German politicians also stated the aid that they give to Greece will not be used in vain, yet many Germans feel opposed to giving aid to Greece.
I predict that Greece will be able to lessen their debt. However they will have to rely on more than just aid. Also getting rid of the debt will take a while, but I think they will be okay. I do believe that the German people do have a reason to have some opposition. Times are hard right now, and the all the world economies are being hit. Greece will have to take care and make sure the money goes to good use, but only time will tell.
Sunday, April 25, 2010
Tuesday, March 16, 2010
The Fed Takes Interest
Terms:
Fed- The Federal Reserve
Dow Jones Industry- A collection of 30 stocks chosen by the editors of WSJ that is computed using a price-weighted index system
recession- a period of economical contraction
The Fed has decided to keep its interest rate low. It is currently at 0% to 0.25% and it is not going anywere soon for a long length of time. The rate-setting committee has decided to keep interest rates at this low because the "data on the US economy painted a mixed picture of the recovery from recession." But markets reacted fairly well to the news. The Dow Jones Average is up 30 points. Job markets are showing signs of growth and stability. However, the optimism will be short -lived because unemployment is expected to "hit future consumer spending" due to a lack of increasing payroll. As for the property markets, the Fed is still concerned. There is a decrease in commercial property and banks are not lending. Lastly the Fed "buying mortgage-backed securities to support mortgage lending" will be stopped by this months end.
Fed- The Federal Reserve
Dow Jones Industry- A collection of 30 stocks chosen by the editors of WSJ that is computed using a price-weighted index system
recession- a period of economical contraction
The Fed has decided to keep its interest rate low. It is currently at 0% to 0.25% and it is not going anywere soon for a long length of time. The rate-setting committee has decided to keep interest rates at this low because the "data on the US economy painted a mixed picture of the recovery from recession." But markets reacted fairly well to the news. The Dow Jones Average is up 30 points. Job markets are showing signs of growth and stability. However, the optimism will be short -lived because unemployment is expected to "hit future consumer spending" due to a lack of increasing payroll. As for the property markets, the Fed is still concerned. There is a decrease in commercial property and banks are not lending. Lastly the Fed "buying mortgage-backed securities to support mortgage lending" will be stopped by this months end.
Sunday, March 7, 2010
Mr. Papandreou's Plan
Terms:
International Monetary Fund: the international organization that promotes stability between international currencies. It also allows partner countries to borrow in order to balance deficit in their country. this organization was created by the United Nations.
eurozone: a geographic and economic region that consists of all the countries in the European Union. This countries also have the euro as their form of currency.
European Union: a coalition of European nations that was created in 1993 to have political and economic integration (EU).
Greece is facing very hard times right now. Greece has already put "measures into action such as cuts in servants' pay, freezing pensions ans hiking some taxes :sales, fuel, cigarettes, and alcohol". But the people are answering with opposition. Strikes and violent demonstrations have already started and two more are expected to happen on Thursday and March 16th.
With a 12.7% deficit to be reduced, Prime Minister George Papandreou sees no other options than to ask for help. He may even need to receive funding form the International Monetary Fund, and Papandreou has decided to seek EU and US support for the nation of Greece. He will do this with a series of meetings in which he will ask for support. His plan is to have countries "calm markets and reduce Greece's high borrowing costs".
Mr. Papandreou has already spoken to France and Germany about his plan. Germany did not mention any definite decisions about helping Greece. However French President Nicolas Sarkozy is willing to help and expresses "France is by the side of Greece." There are no specific plans yet, but Mr. Sarkozy expresses the plan is being drawn. Prime Minister Papandreou will be visiting President Barack Obama in Washington this Tuesday to boost support for Greece.
I am unsure whether or not President Obama will be willing to help bailout Greece from their deficit because the United States is in a recession of their own. I just do not think America will be able to help in the way Mr. Papandreou would like. However, President Obama will probably help in some way because the United States has a reputation for helping out other countries.
Links:
"France Offers Support to Greece". BBC News
http://news.bbc.co.uk/2/hi/business/8554754.stm
International Monetary Fund: the international organization that promotes stability between international currencies. It also allows partner countries to borrow in order to balance deficit in their country. this organization was created by the United Nations.
eurozone: a geographic and economic region that consists of all the countries in the European Union. This countries also have the euro as their form of currency.
European Union: a coalition of European nations that was created in 1993 to have political and economic integration (EU).
Greece is facing very hard times right now. Greece has already put "measures into action such as cuts in servants' pay, freezing pensions ans hiking some taxes :sales, fuel, cigarettes, and alcohol". But the people are answering with opposition. Strikes and violent demonstrations have already started and two more are expected to happen on Thursday and March 16th.
With a 12.7% deficit to be reduced, Prime Minister George Papandreou sees no other options than to ask for help. He may even need to receive funding form the International Monetary Fund, and Papandreou has decided to seek EU and US support for the nation of Greece. He will do this with a series of meetings in which he will ask for support. His plan is to have countries "calm markets and reduce Greece's high borrowing costs".
Mr. Papandreou has already spoken to France and Germany about his plan. Germany did not mention any definite decisions about helping Greece. However French President Nicolas Sarkozy is willing to help and expresses "France is by the side of Greece." There are no specific plans yet, but Mr. Sarkozy expresses the plan is being drawn. Prime Minister Papandreou will be visiting President Barack Obama in Washington this Tuesday to boost support for Greece.
I am unsure whether or not President Obama will be willing to help bailout Greece from their deficit because the United States is in a recession of their own. I just do not think America will be able to help in the way Mr. Papandreou would like. However, President Obama will probably help in some way because the United States has a reputation for helping out other countries.
Links:
"France Offers Support to Greece". BBC News
http://news.bbc.co.uk/2/hi/business/8554754.stm
Sunday, February 28, 2010
A Green Idea!
Terms:
"Green-collar-jobs"- jobs that combine the 20th century blue collar jobs and merge it with working to better the environment. These include jobs in renewable energy, sustainable agriculture, and green building.
low-carbon vehicles- battery posts that are used to charge and electric car.
Nissan Leaf- 5 passenger car that is 100% electric. It can go up to 100 miles per charge and it takes 4-8 hours on a 220V home charging unit. At a quick-charge station, the Leaf take about 26 minutes to charge to 80%.
The North East of England has a green idea that is sure to boost their economy, better the environment, and make Nissan a very happy company! They plan to create the region into a "low-carbon economic area for ultra low-carbon vehicles." Firms and other organizations, along with some investments from the "public purse", want to install charging points. Other councils, companies, supermarkets, and universities will also be installing charging point. Therefore the Newcastle City Council estimates a total of 620 charging points by the end of the year. As a bonus electric car drivers will not have to pay for the electricity or for the parking while they charge. Don't have an electric car? No problem! The government will give consumers a "plug-in car grant" to anybody buying an electric car from January 2011. This grant is worth up to 5,000 pounds.
This program is music to Nissan's ears. The company owns a huge factory in Sunderland that produces a "third" of England's manufactured cars. With the launching of their new and premiere electric car the Leaf later this year, Nissan is hoping that with a lot of advertisement and showcasing people will buy. The government and the Regional Development Agency are working to invest in "world-class electric motoring research establishments" for the project while Nissan is working to have a training college for sustainable manufacturing.
This project is also good for the creation of thousands of new jobs. These jobs are known as "green-collar-jobs". These jobs will include training personnel, installing charging points, research and development, and manufacturing.
I think this is a great move for the UK. They are bettering the environment with electric cars and taking action against climate change. This project will also help boost the economy by creating jobs for the people of England and helping people who want to invest in a green car a possibility. As for Nissan, this project will give them an edge against competion and maybe even boost the popularity of their new car. It seems pretty cool!
Link:
"The North East eye low carbon future"
by Jorn Madslien
http://news.bbc.co.uk/2/hi/business/8507888.stm
"Green-collar-jobs"- jobs that combine the 20th century blue collar jobs and merge it with working to better the environment. These include jobs in renewable energy, sustainable agriculture, and green building.
low-carbon vehicles- battery posts that are used to charge and electric car.
Nissan Leaf- 5 passenger car that is 100% electric. It can go up to 100 miles per charge and it takes 4-8 hours on a 220V home charging unit. At a quick-charge station, the Leaf take about 26 minutes to charge to 80%.
The North East of England has a green idea that is sure to boost their economy, better the environment, and make Nissan a very happy company! They plan to create the region into a "low-carbon economic area for ultra low-carbon vehicles." Firms and other organizations, along with some investments from the "public purse", want to install charging points. Other councils, companies, supermarkets, and universities will also be installing charging point. Therefore the Newcastle City Council estimates a total of 620 charging points by the end of the year. As a bonus electric car drivers will not have to pay for the electricity or for the parking while they charge. Don't have an electric car? No problem! The government will give consumers a "plug-in car grant" to anybody buying an electric car from January 2011. This grant is worth up to 5,000 pounds.
This program is music to Nissan's ears. The company owns a huge factory in Sunderland that produces a "third" of England's manufactured cars. With the launching of their new and premiere electric car the Leaf later this year, Nissan is hoping that with a lot of advertisement and showcasing people will buy. The government and the Regional Development Agency are working to invest in "world-class electric motoring research establishments" for the project while Nissan is working to have a training college for sustainable manufacturing.
This project is also good for the creation of thousands of new jobs. These jobs are known as "green-collar-jobs". These jobs will include training personnel, installing charging points, research and development, and manufacturing.
I think this is a great move for the UK. They are bettering the environment with electric cars and taking action against climate change. This project will also help boost the economy by creating jobs for the people of England and helping people who want to invest in a green car a possibility. As for Nissan, this project will give them an edge against competion and maybe even boost the popularity of their new car. It seems pretty cool!
Link:
"The North East eye low carbon future"
by Jorn Madslien
http://news.bbc.co.uk/2/hi/business/8507888.stm
Sunday, February 21, 2010
Productivity v.s Jobs for Americans
Terms:
productivity:having the ability to produce goods and services
outsourcing: to obtain goods and services form an outside source
exploitative: to utilize for profit for self
While researching for my senior research paper, I came across an article about tech services for the West are shipping their jobs oversees. My topic is outsourcing of US jobs and I am already getting into it.
One of the most rampant problems with outsourcing is using the labor as exploitative. Many companies pay employees in other countries very low wages compared to what they would pay their American employees. These countries include India, the Philippines, and China. The main goal of outsourcing the jobs to other countries is how cost beneficial it is to the business especially in today's economy. There is one word that sums all of this up the best: productivity. Big businesses are mostly concerned with money and efficiency. During this recession, businesses are learning to do more with less.
Another problem with outsourcing is that it hurts the local economy of the countries the businesses are sending jobs to. "Local entrepreneurs need to serve local needs as well as the global economy. So what about the people in America who need jobs and cannot help our economy thrive? Is productivity much more important that the American people and the health of our own economy? I don't think so. If businesses create jobs here instead of sending them off to other countries this would help out the economy tremendously. More people would be employed and make money, thus causing more people to be able to spend that money. With the spending of more money this creates more consumer power which would cause an increase in want and demand. Even more people will be able to afford houses and cars, causing a growth in the housing markets and automobile industries. Of course this may not solve all the problems that came with the recession, but it will at least solve some of it.
Links:
"Going abroad for tech services". BBC News. Feb 21, 2002. Feb 21, 2010. http://news.bbc.co.uk/2/hi/science/nature/1833583.stm
productivity:having the ability to produce goods and services
outsourcing: to obtain goods and services form an outside source
exploitative: to utilize for profit for self
While researching for my senior research paper, I came across an article about tech services for the West are shipping their jobs oversees. My topic is outsourcing of US jobs and I am already getting into it.
One of the most rampant problems with outsourcing is using the labor as exploitative. Many companies pay employees in other countries very low wages compared to what they would pay their American employees. These countries include India, the Philippines, and China. The main goal of outsourcing the jobs to other countries is how cost beneficial it is to the business especially in today's economy. There is one word that sums all of this up the best: productivity. Big businesses are mostly concerned with money and efficiency. During this recession, businesses are learning to do more with less.
Another problem with outsourcing is that it hurts the local economy of the countries the businesses are sending jobs to. "Local entrepreneurs need to serve local needs as well as the global economy. So what about the people in America who need jobs and cannot help our economy thrive? Is productivity much more important that the American people and the health of our own economy? I don't think so. If businesses create jobs here instead of sending them off to other countries this would help out the economy tremendously. More people would be employed and make money, thus causing more people to be able to spend that money. With the spending of more money this creates more consumer power which would cause an increase in want and demand. Even more people will be able to afford houses and cars, causing a growth in the housing markets and automobile industries. Of course this may not solve all the problems that came with the recession, but it will at least solve some of it.
Links:
"Going abroad for tech services". BBC News. Feb 21, 2002. Feb 21, 2010. http://news.bbc.co.uk/2/hi/science/nature/1833583.stm
Tuesday, February 16, 2010
Oh Mighty Euro
Terms:
European Union (EU) - an organization of 27 neighboring countries throughout the continent of Europe who come together in a coalition in regards to an economic agreement.
"European way of life"- "a strong social welfare, high public spending, generous pension provisions and robust safety nets".
reform- a change for the better by ameliorating the situation
Many people world wide are aware of the "American way of life". When one thinks of America they think of luxuries, the "American dream", and success. However, this vision is being overshadowed by debt, unemployment rates, and the extreme grief that the recession has put on our economy. But what about the eastern world? What about Europe?
The Europeans are now facing the reality that, just as America, the "European way of life" is being changed. Van Rompuy, the President of the European Council, expressed that he feels as if this way of life is being threatened due to sluggish growth in the economy. The recession is causing European governments to cut spending and increase risk. Ireland has cut back in public spending, welfare benefits, and pensions for state workers. Spain will, over four years, cut public spending and lower retirement pensions. Portugal is cutting back on infrastructure projects. France is pushing for reform pensions and are re-evaluating the retirement age of 60. Greece is freezing public sector pay and raising the age for retirement.
All in all the euro is taking a buffeting by an economy that is not growing. The people are being more cautious and European officials and governments are stressing about it. Germany is worried that some of the European countries are looking an depending on bail-outs that the more powerful countries that the powerful countries cannot afford. Even if the EU creates a rescue package it may not be enough to sustain a single currency.
Link :
"A Way of Life Under Treat"
by: Gavin Hewitt
http://www.bbc.co.uk/blogs/thereporters/gavinhewitt/2010/02/a_european_way_of_life.html
European Union (EU) - an organization of 27 neighboring countries throughout the continent of Europe who come together in a coalition in regards to an economic agreement.
"European way of life"- "a strong social welfare, high public spending, generous pension provisions and robust safety nets".
reform- a change for the better by ameliorating the situation
Many people world wide are aware of the "American way of life". When one thinks of America they think of luxuries, the "American dream", and success. However, this vision is being overshadowed by debt, unemployment rates, and the extreme grief that the recession has put on our economy. But what about the eastern world? What about Europe?
The Europeans are now facing the reality that, just as America, the "European way of life" is being changed. Van Rompuy, the President of the European Council, expressed that he feels as if this way of life is being threatened due to sluggish growth in the economy. The recession is causing European governments to cut spending and increase risk. Ireland has cut back in public spending, welfare benefits, and pensions for state workers. Spain will, over four years, cut public spending and lower retirement pensions. Portugal is cutting back on infrastructure projects. France is pushing for reform pensions and are re-evaluating the retirement age of 60. Greece is freezing public sector pay and raising the age for retirement.
All in all the euro is taking a buffeting by an economy that is not growing. The people are being more cautious and European officials and governments are stressing about it. Germany is worried that some of the European countries are looking an depending on bail-outs that the more powerful countries that the powerful countries cannot afford. Even if the EU creates a rescue package it may not be enough to sustain a single currency.
Link :
"A Way of Life Under Treat"
by: Gavin Hewitt
http://www.bbc.co.uk/blogs/thereporters/gavinhewitt/2010/02/a_european_way_of_life.html
Sunday, February 7, 2010
Taxes Stick-it to Services
Terms:
Federation of Tax Administration: an organization that provides service to state tax authorities and administrators. Their main goal is to improve the quality of state tax.
California Chamber of Commerce: An organization that represents California's private-sector business employers in politics and advocates their needs.
Mulitstate Tax Commission: an intergovernmental state tax agency that work for states and taxpayers to administer tax laws that effect multiple states and multiple nations.
Many of you know that 81% of our state and local governments produce revenue through taxes. These taxes include sales, property, income, and more. However, the high unemployment, cheap property tax, and thriftiness of the American people during a bad economy is making it harder to keep this statistic current. Well, what do you do? This is the question many legislators are trying to answer. This question has been argued repeatedly by tax experts. Some proposed solutions include taxes that the people on main street may not favor.
The total amount of money the American people use on the consumption of services is about $6.1 trillion a year. Therefore, many state legislators are thinking of taxing services. In Kentucky, a measure outlined a method of taxing "high-end services" such as limousines and balloon rides. In Maine, legislators passed a law that lowered income taxes, yet extended sales taxes to services. These services included dry cleaners and car repairs. In Hawaii and New Mexico taxes on services include more that 150 services. Numerous states already tax services that include hotel rooms and restaurant tabs. The services are taxed indirectly through employee wages which enable them to provide the service. According to the Federation of Tax Administrators, some states tax professional services such as doctors and lawyers. What about the state of California?
Well in California sales tax does not reach services. The California Chamber of Commerce opposed the idea because of many reasons. One of the main reasons was because it would hurt small business owners who try to sell their services. If the state decides to include tax on their services this will cause a major hike in prices and therefore maybe a lack of business. Most legislators have found it easier to raise existing taxes instead of creating new ones that stun the American people. However, many legislators believe taxation on services would cause anger and frustrations.
Link:
"States Try to Tax More Services as Coffers Deflate"
by: Conor Dougherty
http://online.wsj.com/article/SB10001424052748704829704575049861057266800.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
Federation of Tax Administration: an organization that provides service to state tax authorities and administrators. Their main goal is to improve the quality of state tax.
California Chamber of Commerce: An organization that represents California's private-sector business employers in politics and advocates their needs.
Mulitstate Tax Commission: an intergovernmental state tax agency that work for states and taxpayers to administer tax laws that effect multiple states and multiple nations.
Many of you know that 81% of our state and local governments produce revenue through taxes. These taxes include sales, property, income, and more. However, the high unemployment, cheap property tax, and thriftiness of the American people during a bad economy is making it harder to keep this statistic current. Well, what do you do? This is the question many legislators are trying to answer. This question has been argued repeatedly by tax experts. Some proposed solutions include taxes that the people on main street may not favor.
The total amount of money the American people use on the consumption of services is about $6.1 trillion a year. Therefore, many state legislators are thinking of taxing services. In Kentucky, a measure outlined a method of taxing "high-end services" such as limousines and balloon rides. In Maine, legislators passed a law that lowered income taxes, yet extended sales taxes to services. These services included dry cleaners and car repairs. In Hawaii and New Mexico taxes on services include more that 150 services. Numerous states already tax services that include hotel rooms and restaurant tabs. The services are taxed indirectly through employee wages which enable them to provide the service. According to the Federation of Tax Administrators, some states tax professional services such as doctors and lawyers. What about the state of California?
Well in California sales tax does not reach services. The California Chamber of Commerce opposed the idea because of many reasons. One of the main reasons was because it would hurt small business owners who try to sell their services. If the state decides to include tax on their services this will cause a major hike in prices and therefore maybe a lack of business. Most legislators have found it easier to raise existing taxes instead of creating new ones that stun the American people. However, many legislators believe taxation on services would cause anger and frustrations.
Link:
"States Try to Tax More Services as Coffers Deflate"
by: Conor Dougherty
http://online.wsj.com/article/SB10001424052748704829704575049861057266800.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
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