Archive for the "Important Announcements" Category
After winning the 2008 election, beating the republican John McCain, and being the first African-American president who extinguished any trace of racism left in the American soil, Barack Obama is once again on the poll.
This time, the African-American president is up against the former governor of Massachusetts – Mitt Romney. The 65 year old Republican is the 70th governor of Massachusetts who has a good educational background in Business Administration. He obtained his joint Juris Doctor and Master of Business Administration from the Harvard University. On the other hand, President Barack Obama is a graduate of Harvard Law School and has proven his worth in the past 4 years. He signed various legislation to counter the economic recession in 2007 to 2009. Some of which are the American Recovery and Reinvestment Act of 2009; Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
The clash between the two Harvard University graduates had already begun at the first round of the presidential debates. Romney said the current president favors a form of “trickle-down government” with more taxes and regulations according to a Bloomberg report. Obama rebutted the argument by saying that Romney favors the wealthy through his “top-down economics” and loading the burden to the shoulder of the middle class Americans.
According to past statistics, although the debates really has a huge impact on the outcome, it still fails to decide the result of elections. The election which will decide the fate of the greenback for the next 4 years is scheduled to be held on November 6,2012.
Unemployment rate is the percentage of the labor force who doesn’t have a job but are willing and actively seeking work. It is one of the macroeconomic indicators that most fundamental analyst are observing in case of a long term investment decision and is usually published at 8:30 EST (NY) on the 1st Friday of the month.
The unemployment rate is calculated by dividing the number of unemployed individuals by all individuals currently in the labor force.
Effects of Unemployment in the Society and Economy:
Instead of spending their time, effort, and resources in performing a job, the unemployed part of the labor force are obligated to drain their efforts first in seeking out new jobs. The individual’s counter-productiveness may even worsen if the hunt will turn out to be a failed attempt.
Impoverishment leading to social unrest
Idle individuals have lesser financial means to dispose thus allocating most of it only on the “needs” in order to survive. In the the long run, this may result to dissatisfaction which may escalate once certain individuals started to fill-in their “wants” through dishonest means. The dishonest means which is used to gratify the “wants” may then lead to unrest in the public.
Exploitation of labor
Since there is a surplus of workers because everyone is seeking out a job, there is a high tendency that laborers will be exploited. Most company will take an advantage on this situation since laborers are forced to accept what is offered to them because of fear to lose their job. The exploitation may be in different forms like lower wages, fewer to none benefits, unpaid overtime pay, longer working hours, etc.
Less People Pay Taxes
An individual without any source of income cannot pay his dues to the government. Only those that are employed have the capability to pay the taxes and no tax is certainly a “no no” to the government. Without taxes, the economic activity will slow down because taxes is like a fuel that keeps the economy running.
Bankruptcy of Businesses
Unemployed individuals spends only for things that they needed to survive. The decrease of purchasing activity of consumers will certainly cut those companies that manufactures products that are not essential in the day-to-day activities of individuals.
“A journey of a thousand miles begins with a single step.” -Laoze
It was not so long ago since China was referred to as the “sleeping giant.” Its secluded existence and its rich culture which has been passed down to thousands of generations, known only to those within, has just been broken free a few decades ago.
After the giant opened its door to world, opportunities swiftly entered. One of the many which are given the opportunity to show itself to the outside world is the Yuan. The Chinese currency which may be literally translated as “round object” is originally a round and silver coin used in Qing Dynasty. It slowly made a scene after its debut by showing a very promising growth.
But according to the most recent news,its growth had come to a slow pace. One of the main issue which surrounds the change is the economic slow-down of China. The import slid last month and the cooling of industrial production are the main contributors of this unfriendly situation. The targeted economic growth, which is the lowest in 22 years, may not be met.
However, interventions may be put into action. According to Chinese Premier Wen Jibao, “ Be it monetary or fiscal, we still have ample strength,” The strength which amounts to a billion yuan will be used for preemptive measures which will be directed to fight against bad loans and shackle the inflation.
Another issue is currently swerving like a vulture over the Chinese economy. News of “shadow” banks are arising and may result to a social unrest. The victims are continuously increasing and the public is quickly losing its trust to investments thus slowing the money circulation. Private capitals are now stagnant because of this.
Despite the pessimistic prediction of experts and alarming incidents, the Chinese Premier is still confident that the economic development will go as planned.
The world has watched as euro’s untold fate unfolds. Nations, prominent and influential individuals of the financial plane, optimistic and pessimistic investors, down up to even the commoners had been scrupulously observing the currency’s dire situation. The every tick is guarded by the watchful eyes of the financial guard dogs. Alerting everyone whenever something is fast approaching, whether be it good or bad.
The whole world bear witness on euro’s graceful downfall. The debt crisis which lay euro on its sickbed is slowly decaying the prominent alliance as rumors of bailouts sprout like mushrooms. But not all is lost. A glimpse of hope in a form of a bank is trying to put a halt to the threat.
Just a few months ago, Mario Draghi, the current president of European Central Bank (ECB) announced its willingness to provide whatever assistance that euro will require. The unyielding support had not come unnoticed as ECB’s every step is being watched.
Though real plans of euro’s salvation is still to be lain to the public, certain actions had already been taken. The knight, who has yet to prove its true might, had parried the current decrease by announcing its plan for unlimited sterilized bond buying to suppress the crisis.
ECB’s latest move lifted the spirit of investors and permitted an optimistic atmosphere. As a result, the currency gained from the spiced up investors as it rose against its competitors.
But not everyone in ECB supports its cause. The president of the Deutsche Bundesbank, Germany’s central bank, considered resigning because he sees it as a loss cause if carried out without proper support. The threat had put more pressure on Draghi to take an another glance on the plan. Rumor has it that Jen Weidman was dissuaded by German government from leaving the position but still his stand on the topic is still steadfast. The involved chief didn’t confirm its authenticity.