The principal problem in a financial crisis is lack of confidence – some people lose their jobs and so stop spending, the companies who relied on that spending fall into trouble and stop spending and on and on it goes. This is a vicious circle which can only be stopped by an external stimulus to confidence. We can clearly see at the present time that many or even most companies are sitting on their cash – companies have money but are unwilling to spend it because of the general lack of confidence. There is no reason for companies to produce new and better goods and services, that is, when people are not going to buy them.

Fortunately for America, President Obama followed correct economics and introduced a financial stimulus which included job creation (e.g. for census work) that both enabled people receiving those jobs to continue to live a decent life and to instill some confidence in the economy that people will continue to spend. The only problem with President Obama’s plan is that it was much too small – his team apparently thought that they would be unable to get the larger amount required (three or four times the actual amount) past the obstructionist right wingers in Congress. So, the recovery is only coming through now, much less powerful and much slower than needed to be the case.

Compare this with the situation in Europe. There, unfortunately, a slide of governments to right-wing fantasies sees states across the continent slashing their budgets – either voluntarily in the case of the half-baked ideologues in the Conservative party or having it forced upon them despite their better intentions as is the case in Greece and Spain. The results are plain to see: when the government cuts its services, more and more people fall into poverty and the economy starts to decline ever more precipitously.

The same situation can be seen in all those countries which have suffered visitations from the IMF in recent years. The IMF has arrogated to itself the right to tell countries what to do before they receive the money they need to deal with exchange rate problems (i.e. to recover from more market failures) and the conditions involved have included privatization of government services, reduction of welfare and services and so forth which have been universally disastrous wherever it has been forced through – to the benefit of certain vested interests, of course, since capitalism shows that where there are losers there will always be winners.

It is not a question of whether, but when and how. If you were to ask why, that is because if China did continue to grow at this breakneck speed forever, it would, literally, become the world. Through radical reforms in 1978, followed by prudent experimentation and gradual implementation, China has had a relatively smooth transition from a centrally planned economy to one governed by market fundamentalism, if not fully so yet. Since then, it has enjoyed a roaring growth averaging 10% a year. But that is all coming to an end, an end which, if botched, could prove disastrous for not just China, but the global economy.

In a joint research by the University of California in Berkeley and the Asian Development Bank, it was found that emerging and growing economies tend to slow down in terms of growth from 5.6% to 2.1% per year average, when GDP per capita on a PPP basis hits the $16,740 threshold. Such is called the middle-income trap. China’s current growth rate sets it to cross that boundary in 2015.

The researchers acknowledge that China is a unique case. It still has considerable potential, as rapid development could shift inland, where millions of workers have yet to be mobilised into manufacturing. Investment constitutes over half of the GDP, while consumption only 35%. If China catches the tailwind of urbanisation and the turning tide of global recovery (albeit looking hesitant and faltering), then it could spur on consumption as a new engine of growth. Even if growth does slow down, it needn’t entail a cataclysmic outcome. Japan’s economy lost steam in the 1970s, but it still had an awe-inspiring 4% growth rate until it completely fell apart in the 1990s. The experience is shared by other similar economies, such as Singapore, Korea and Taiwan. China’s governing body is surprisingly able, having steered clear of two major crises, one engulfing Asia and the other our globe; it has shown wisdom and pertinence in incorporating market forces into its own originally planned economy, creating a regime dubbed “socialism with Chinese characteristics”, not failing to take account of the social and political spheres (unlike Russia, which didn’t). Given the recent efforts exerted to clamp down on political dissent (inhumane as this may be), it is not injudicious to say the CCP may be safely entrusted to the task of managing the slowdown. (As a side point, here is perhaps one example of where a democracy would have been inefficient, as the debacle of the American debt ceiling has illustrated. A democracy would never have been able to lead China to its position today.)

For the non-half-glass-full people however, the outlook is much gloomier. There are many striking similarities between the boom and bust of Japan in the 1990s and of China today. Both involve substantial amounts of bad loans. With Japan, depositors thought their deposits were safe because the government stood behind them, and were careless in thinking about where to deposit their money. This led to the problem of moral hazard, which many unscrupulous businessmen tempting opportunities. In China, the government has total control and its stimulus package allowed banks to lend almost at will. Either way, this led to a multitude of bad loans being made. This could portend a crippling debt crisis (i.e., Greece). In the end, Japan managed to bail itself out – question is, would China, with $3 trillion foreign exchange reserves, be able to do the same?

The bubbliness of China’s property market does not bode well either. Japan fell into a liquidity trap the moment its financial bubble burst. Although a financial bubble may be inherently different from a housing bubble, since financial bubbles may be precipitated by gullible and disillusioned foreign investors (and China’s financial markets aren’t, fully, liberalised yet), the bubble is having a social impact, as many lower and middle classes are finding it difficult to obtain housing. The soaring of housing prices has had an effect on inflation, which may be significantly higher than the official rate quoted at around 5%. As savings are eroded due to the low base rate set by the People’s Bank of China, there are already signs of disgruntlement. Ultimately, this undermines the ability to consume. The government is right to be worried about this, because it was rampant inflation which sparked off the protests in 1989. There are many other factors which may impair the ability to consume. One outstanding disaster is the one child policy – which, although not absolutely enforced, would still leave 2.2 workers per pensioner by 2050, if forecasts by the IMF are correct. This could weigh heavily on the younger generation and impair the ability to save or spend. Rising wages are quickly diminishing the comparative advantage China has in cheap labour, and to keep down costs, innovation would play a more central role.

Social and political integrity plays a crucial role in whether the growth can be sustained. Absolute poverty may have decreased during the past few years, but relative poverty has not. Public outcry is prolific on social networks which are allowed to operate inside China, which condemn the corruption of local government officials and commercial scandals (such as the milk scandal, where melamine was injected into milk to fake the high levels of proteins). Yet even so, the Chinese Communist Party remains popular with its doctrines and governance, and a fair bit of brainwashing. A sweeping handover of power to neo-Maoists is another matter, but at the moment there are mixed sentiments towards the ruling class, and one trigger may be all is needed to create a sharp economic slowdown. As the middle class starts to get wealthier, they are going to demand not just economic but political freedom, and things can start to get messy if the government thinks otherwise. The Chinese Communist Party has realised that, to be able to remain in power, it has to prove itself worthy through economic advancement. Faltering of growth may evoke political unrest, which would not only bring economic expansion to a screeching halt, but unseat the CCP from its throne of power. It would do wise to clamp down on political dissent, whether through repression or a shift towards more political freedom.

If China is not to stagnate soon, it will have to redouble efforts to ensure a fair distribution of income, and to shift its engine of growth from investment to consumption. This would encompass not only economic but social integrity. To do the former, it would require a better tax system and legal structure, to shift the balance away from cronyism. This would seem hard to achieve without political reform. As for the latter, indeed, investment levels are already causing worries as they appear to produce diminishing returns. China would have to persuade rural dwellers to keep coming to the cities as its population ages ever more rapidly, sustaining the pace of urbanisation. This would not be easy with the current prejudiced system of hukou in place, which entitles urban dwellers to more benefits than the newcomers.

The slowdown of China looms ever nearer. This pivotal juncture, if bungled, would prove calamitous on not just China, but our globe.

My friend Nicole told me her revenge story from High School. In high school, she was not that popular with the “in” crowd, but she had my own friends and had a good time. There was one girl, Karen who Nicole really could not stand. Karen was one of those rich girls that seemed to have everything. Nicole did not grow up with money. Nicole did not hate her because she had money she hated her because she made fun of Nicole not having money. Nicole’s revenge on her came completely out of the blue.

Her class had just graduated and they had a yearend party, everyone was invited. The party was at a house in a pretty good neighborhood. When Nicole showed up to the party, she was a couple of hours late. While walking to the party from her car Nicole noticed Karen passed out in the car. It seemed like a perfect opportunity for revenge. Nicole found some of the class clowns to help her with her plan. She and the boys went to the store and bought them out of saran wrap. When they got back to the party they wrapped Karen’s car completely in saran wrap and then called her parents. Needless to say Karen got in big trouble. This is a funny story about revenge as no one was hurt in this situation. As adults we cannot carry around that kind of hatred or anger. We have to learn to let that go because the Karen’s of the world may have had affect on us when we were trapped in High School, but they do not now.

Respect your body even if you do not respect your emotions. Acknowledge how you feel when you are carrying around this revenge – your heart racing, your muscles tensing, your whole mind screwed up. Ask yourself if this is the sort of state you want to be in for the rest of your life and consider whether the person you want revenge on is feeling as bad as you. Most likely they’re unaware even of your deep-seated anger. And anger only feeds on itself and gnaws at you; it isn’t harming anybody else.

See my website for a FREE guide to help you start on your emotional healing so you can also heal financially. Visit our website for your FREE Seven Step Guide to Financial Recovery at www.hdpriceinc.com.

In the light of this fact, it is quite depressing that the women own only 1 percent of property. The time spent by a woman in doing domestic chores per week, and government service is much more than the hours spent by man. Even then, most of the women are victims of poverty. Betty Friedan aptly remarks about this: “The problem that has no name, which is simply the fact that American women are kept from growing to their full human capacities — is taking a far greater toll on the physical and mental health of our country than any known disease.”

There is another serious problem created by the global recession, and tight economic depression across the globe. Alexandra Cawthorne  aptly  reveals a few striking facts about the poverty of  American women: “Women in America are more likely to be poor than men. Over half of the 37 million Americans living in poverty today are women. And women in America are further behind than women in other countries—the gap in poverty rates between men and women is  wider in America than anywhere else in the Western  world.”

According to the latest  estimate, if the financial crisis gets worse, this will have a very bad impact on the women, as about 22 million women will become unemployed. This will make the women poorer. This might not have big effect on the women in Arab countries, and less developed countries, as most of the women are not employed in these countries.

There is no doubt that the women are the poorest of the world’s poor.  Mother Teresa, who was awarded the Nobel Prize for Peace for helping the poorest of the poor in India, and several other countries, remarks very wisely: “We think sometimes that poverty is only being hungry, naked and homeless. The poverty of being unwanted, unloved and uncared for is the greatest poverty. We must start in our own homes to remedy this kind of poverty.  There is a terrible hunger for love. We all experience that in our lives–the pain, the loneliness. We must have the courage to recognize it. The poor you may have right in your own family. Find them. Love them.”

They are a bunch of depressed people who are at the verge of disintegration.

It would have been justified for barbarians from the pre-historic era as they did not hide behind a fake education cover.

What is wrong with us?

Why are all of us so quiet?

The answer is simple, we are a dead nation, no one would rise and shout revolution, because they are so tied up in financial crisis and security issues that they would never protest. We simply let it go unquestioned. It is a matter of days, when an incident like this and many others would be forgotten. I for one cannot forget it or let it go unnoticed. What I am so worried about is, even if the boy had committed a crime, the rangers had no right to shoot. In civilized societies, they take these matters to court. The people with that ranger, his co-workers stood there watching? 

After all that happened, the government has the guts to go on the media and tell us, how big a criminal was that boy carrying a toy gun? Ridiculous, utter non-sense !

My anger is not directed towards the rangers alone, it is directed towards the armed forces too, What right do they have to rule us like emperors? None!

They feed and live on our taxes, our hard earned money and go on terrorizing us? They live in elite areas in the heart of the cities, endangering the whole damned population. If God forbid, we are attacked, the cantonment areas are right in the middle of heavily populated towns. It would be a catastrophic situation.

What right do they have to run schools, be chancellors in the universities, run businesses on lands they don’t own, the amnesty plots under their illegal control? I call them all illiterate MONSTERS with guns. Yes! I am no longer proud of their existence. Why should 80% of the budget go to them and less than 1% budget go to education and health. What kind of morale do we support? We can pay these goons to buy nukes they should not have to begin with!

I don’t trust these people hired to protect us anymore, they scare me. This is not the environment any of us would like to raise our kids in. Our protectors are the looters and plunderers, not long ago they did the same to Bengalis. I get goose bumps when I read the stories about the atrocities done by our armed forces, killing students, professors, doctors, engineers, scholars and philanthropists, just because they raised their voices against injustice.

I very much wish for their fake ego to go to pieces, only then would they come to their senses. Pakistan is like that bully kid, who would go on terrorizing its mates, till it is brought down with force.

I see the root of all causes being “illiteracy”. One cannot expect Pakistani civilians to rise, when they have no idea about the rights they have to begin with. We need a true leadership, but having said that, it still is only a dream. True leadership comes out in a nation with true democracy, not a nation with messed up doctrines. The truth is I want more of Allama Iqbal’s visionary Pakistan, than Zia-ul-haq’s, Musharraf’s or Bhutto’s Pakistan. I dream and dream like a silly Pakistani, who nurtures the thoughts of a better, more civilized nation than the one existing.

There is always light at the end of the tunnel, except for the fact that light is a train and you’re standing on the tracks, it is more like  you know you’re falling and no one calls 911 or worst. If one of the partners is the bread earner it could easily end up into self pity for the other, the incessant bludgeon of not doing enough compared to their spouse causes bitterness. The adaptations made to re-shape the lifestyles accordingly eats away all the charm that is left to the dreamy bubble, reality hits hard and blows out all the affection. For better or for worse vows tilt the equilibrium to worse side and sharing the worse becomes a challenge. It does not merely stops at being a problem related to earning enough dough and no single plan can workout for such marriages. It requires numerous modifications and compromises since there are no bailouts and no fairy god mothers.

Erasing debts and mopping out the economic dust that accumulates under the carpet of life is not an easy procedure and calls for resilience and patience. Till then it is safe to stop aiming for objectives that are out of reach and focalize the priorities. Enjoy the simple pleasures of life because the rosy glow of pre-marriage romance may not be there. Talking things out on a regular basis and dishing out concerns honestly, is one way of getting the load of the chest. Sinking down under the weight of financial woes could be an easy escape but to stay afloat one needs courage and endurance.

First, the basic national currencies take U.S. dollar as “anchors.” But the U.S. dollar spam led to global liquidity spread spam, promoting the inflow of funds into the currency appreciation around the world, sparking concerns of emerging market countries may form asset price bubbles and deterioration of inflation, which greatly disrupted the global exchange rate, trade and commodity markets normal order, and created great instability in the global economy and trade. Countries have to use various tools and even the capital controls to intervene exchange rate. This means that countries no longer take U.S. dollars as the “anchor”, but take their own exchange rate target as the “anchor”.

Of course, there is a great challenge to the position U.S. dollar as the “anchor”. However, it not fundamentally undermine their status, if the U.S. can not immediately home and restore “anchor” of the function and role, which is the beginning of disintegration of the dollar-based international monetary system,.

In short term, G20 summit should urge the U.S. to exercise the necessary responsibility of the international reserve currency. In crisis times, stabilize the economy must stabilize trade, stabilize trade must stabilize exchange rates, and stabilize exchange rate first stabilizes of the dollar, which is in line with the interests of the United States and various countries. In medium and long term, countries should seek a relatively stable currency as the currency of international trade clearing and settlement, or form a monetary settlement of bilateral imports of currency options which is a more equitable way.

Second, the United States has been using the liability method in development. Particular after crisis, the financial deficit substantially increased to record highs. Such risks and liability growth model has been very prominent unsustainable, and it is urgent for U.S. to change debt growth mode. But this change has a cost. A large part of U.S. government bonds are held by foreigners, and directly reducing the depreciation of the dollar debt which means foreign holders will bear the same great loss . The deficit of U.S. trade is one of the forms of excessive consumption of foreign civil liabilities, and loans to foreign trade deficit actually promote the growth of consumption. A way of suppressing the exports of other countries by depreciation of the dollar, which forced the Americans to reduce overdraft, rather than a way to encourage savings and investment to achieve the transformation of consumption patterns of civil liability. As a result, it is at the expense of inflation, asset price bubble, and even the financial crisis of global particular emerging market countries (global trade). It is very immoral that sacrificing the interests of other countries to achieve their own purposes. As the Official of Ministry of Industry and Foreign Trade of Brazil Weber • Baral said the Fed would “let their neighbors to reduce to extreme poverty, which is a deprivation on the neighboring countries, leading to retaliatory measures.” from:wholesale electronics

JMKeynes British proposal, adopting a global currency, is considered too anvangardista and, anyway, any strong economy is felt dramatically after the war.

Therefore, few economies were also able indeed, at that time to support a plausible basket currency.

He could do instead to U.S. growth, which before the conflict earlier so all these savings and amazed the world, like China today, with its stunning growth rates.

About two thirds of the world’s gold reserve is in the bunkers at Fort Knox,as a result of payments related to the war effort.

The dollar seemed – and it really was – solid enough, since it was tied to this huge reserve that defines value.

U.S. took advantage of the situation to strengthen its financial dominance.Defining international prices in dollar funding shortages allowed, profitable exports and investments abroad and juggle large commodity prices.

Three moments are those that trigger the first major wave of criticism.First, the shock / shock petro. Some observers believe the “secret” spectacular developments of the first decades after WW ll is, in fact, cheap energy, especially oil.

The second point – tied for first – is that when the decision to give Nixon Administration definition of the dollar into gold. it is pronounced the famous formula: “The dollar is our currency, but it’s your problem.”

A “problem” which became even more concerned with how the overall system price (not just the oil) became increasingly nervous.

The U.S. “cut” definition anchor in gold, which exposes the more turbulence of all kinds this global system.

He insinuated that this strategy ever since the net advantage to the U.S. economy, unfavorable exchange them in all others. In fact, things did not stay and do not stand at all.

The American economy may be a supplier of instability, but also an absorber of the same instability.

Buy U.S. goods each year equivalent to one third of global GDP and it pays in dollars. Any sudden movement of its currency too induces primarily at home, a tension that must be periodically removed by opening the “valves” money, in his own disadvantage.

The third time was the spectacular rise of other global players. Tyre criticism was open when the “miracle” of Japan, whose economy seems to blow in the neck “big brother” of the Pacific.

The yen began a grueling battle with the U.S. currency, lost virtually permanently in the mid 90s.

Yen or so-called “petrodollars” (money from the sale of oil) in the period 1970-1995 showed that if the dollar can become a supplier of instability in certain times and circumstances, any other currency can do to an extent even more sea.

USSR was not a member of GATT (now WTO / WTO), and the ruble was not his motto recognized as a convertible, although he maintains the definition of gold.

So, since the fall of the Iron Curtain and the first years that followed this huge event by its geopolitical consequences, the dollar did not seem to have no serious rival. There are only a chorus of criticism armed with ancient arguments more or less plausible.

The emergence of the euro and the explosive growth of China, with its yuan, have revived the battle cries against the U.S. currency and were potentiated voices calling for a review of the Bretton Woods agreement.

Rumors are now enshrining SDRs (special drawing rights) as an international currency, either to establish a currency basket in which to enter, with the U.S. dollar, Japanese yen, Chinese yuan and maybe the euro.

But skeptics point out the inherent salbiciuni of such a system.

The yuan is much undervalued in order to maintain considered hipercompetitivitatii Chinese exports. In addition, the anchor of this coin is also China’s huge dollar reserves.

Japanese economy lost speed since the ’90s, and it is reflected nervousness in financial markets and volatility in areas that frequently crosses this coin.

Euro is a financial project construction, criticized by some economists across from the rigidity that requires Member States about its financial policies / tax.

Proponents of free market capitalism argue that it provides the most opportunities for both consumers and producers by creating more jobs while allowing competition to decide which businesses are successful, and which businesses fail.  However, when governmental capital injection takes route, this economic system poses risk that can affect an entire financial system, and not just specific participants. 

Moral hazard can be present any time two parties come into agreement with one another. Each party, from acting contrary to the principles laid out by the agreement in a contract, may have the opportunity to gain.  After helping Bear Sterns, moral hazard was considered a concern to some for they knew not what was ultimately going to be done with the allotted monetary funds.  This bailout money was appropriated toward the support of new lending, but is that what Bear Sterns had in mind?  Without the placing of responsibilities on both parties, including Sterns, moral hazard is increased; Sterns may now have more of an incentive to take unusual risks, even more so than beforehand with what was seen in the way of irresponsible lending or forgo lending altogether by while investing the bailout money into rebuilding the company’s worth. Regardless of moral hazard, because of systemic risk, capital injections were the chosen methods in helping the general public of the nation feel the least of the negative effects of the 2008 financial crisis.  Because of the risk involved in letting these banks fail, as what should happen in a free market, they were financially rescued; not for the good of the companies, but for the good of you and me – the common folks.

The financial crisis that hit us in full not only affects us on a professional level. For where there are few or no money, oh feelings! In other words, loving relationships suffer when partners do not have financial power to sustain them.Well, but for men with imagination (because they are pillars in a relationship, huh?), Things are even worse. For others, here are some suggestions:

Mass home

Perspective weekends at home with your family at the table of the kitchen might give them some cold shivers down my spine. How? No more trips to a pizza at a fancy restaurant or a cake? Even if you do not know how to cook any of you can be pretty fun to eat alone at home.

In time you will learn and will allow you to invite some friends.Do not forget the table arrangements that give all the flavor of such an intimate event. Not to mention how much money is saved this way!

Outdoor Events

Gone are the days when permiteati will go to the theater, film, concerts and nightclubs foodie? Never mind, there are alternatives: you get out for a walk in the park or outdoor events (exhibitions of art and handmade objects, input free concerts, etc..). In addition, sometimes the museums have free admission.

You will discover together that romance is cheaper than you think, even for free! As long as you’re together and enjoy each other, should not rely on scenery.

Cinema at your house

You have got to buy a home cinema system will strike before the crisis ? You have not missed much! Ultimately it is a TV and who needs an ocean to sound when you’re just you two in “room” (read “living room”) and one around which you jamming. In addition, the popcorn is several times cheaper than a movie at the supermarket.

Bicycles, roller skates, car …  

The car became a mere object of heritage, of which more call now and then, in case of major emergency? Why do not you be sad trend is to be cross, including celebrities from overseas began to give up cars and more use.

Rent a bike (there is a special center in Bucharest for it) or pull rollers. In this way you move, do not pollute the atmosphere and save money.

Without money from the first date?

How are you doing on a first date with dream girl when your wallet is empty? Simply go to a ride on the pretext that you want to show your town (even if the locals will be amused by the idea).

Show her some most sumptuous buildings, a few special places, explain something about the history of the city (for that you need to read something before and be original as possible) and take the opportunity to know yourself better. Watch as city tour to finish before dusk, otherwise you have to drive home by taxi.

Tell the truth

If our ideas you have not convinced at all and no you do not have a plan B, just tell him to go through a difficult financial situation. If you will understand and will be with you means that the woman with whom deserve to move on. If you lick, you’re free to start hunting again.

For More click on AboutAllThings