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Political Risks and Its Impact on the Economy

We should be concern and aware of the different political risks. On how it impacts different economics sectors such as growth, trade, the value of currency, investment, incomes and many more.
Here is why common people should be knowledgeable about these risks. Political risks can lead to the following:

1. Lower Investment. It may result to slower economic growth that may lead to higher unemployment. An example of this is when a new election has taken place and the elected president would impose higher taxes on certain goods and services.
2. These risks may lead to weak exchange rate and equity market. Political unrest or strikes usually affects how the currency plays in the market.
3. Political risk in other nation or country can negatively impact your economy.
4. Political risks can lead to the fall of the stock market and increase interest rates.

A New Political Season

The Year 2021 in America sees another political season setting in. The new governance under the rule of Joe Biden and Kamala Harris is bringing more hope for the nation. Their strategy, governance and political exercise can impact the economy. In turn, the economic cycle will strongly depend on them. The American people are hoping for a better year despite the impact of the pandemic. With the new administration they are faced with many issues and problems. The new administration is steadily coming up with strategic plans to meet these problems and generate a solution. They want to prove to its citizen that America will again be a great nation regardless of different economic conditions. During the political noise of the election season, Americans will have to work hand in hand with the new Government. They should continue to work and build back the economy.

Here’s what the U.S. economy may look like under a Joe Biden presidency

Economies Are Hoping For A Comeback

Not too long ago the buoyant economic growth made it a place to go for good returns on investments. But since this pandemic started, and especially when the lock-downs in many countries have taken effect, many countries have fallen far behind in terms of return on equity. This is a figure that represents the net income of a company as a percentage of the value of shares issued in it. The different government and their politics are doing their best to cope up with this ordeal. Many nations are hoping that this will soon overturn. They are praying that this pandemic will be over. With the introduction of the new vaccine for COVID 19, they are hoping that the economy will recover. Many successful businesses and company’s has gone through these stages to survive the pandemic:

  • Restructuring the company
  • Downsizing
  • Debt-reduction
  • Selling non-core businesses and
  • Improving transparency

There is a long way to go for economies to fully recover. We are just hoping that it will be soon.

Politics Has a Huge Role on The Economy of a Country

Politics has a huge role on the economy of a country. During elections a candidate has his platforms to make the economy flourish. If this candidate is elected and put into power, he should implement all his promises when he was campaigning. If these promises cannot be fulfilled this may have a great impact on the nation’s economy and standing. Leaders of a country should make sure to run the nation towards greatness. It is vital that citizens should put into power a leader who is deserving and great. We all know that politics decide the fate of every economy. If the public is educated and wise the leader they will elect will be very effective thus the nation will surely follow a path to progress. If the public votes with analyzing and thinking, there is no doubt that the politician who has no political will will be its leader and will surely harm the economy. During elections politicians struggle for power. This power can make the elected leader takes over how the nation grows. Hence we can say that politics indeed will shape the economy of a country.

Foreign Exchange Rates Impacts The Economy

Foreign Exchange (Forex) is a huge global market wherein both sellers and buyers from across the world participate in daily trades worth trillions. Since forex trading has become a worldwide activity, this means that events in the macroeconomic level everywhere have a greater part to play in foreign exchange more than ever before. Forex traders need not to stick to currencies that are popular, however they are an excellent place to begin trading.

To make the most of forex trading, many hire the service of a reliable forex broker. For instance, https://moreforexbrokers.com/pt-pt/corretoras-de-forex/ provides a list of a number of renowned and established online forex brokers that operate in Brazil. They also offer help to the local populace so as to take full advantage of the conditions of the forex market. Additionally, most of the brokers in the list also provide help in many options for investments such as stocks, bonds, shares, futures, commodities, gold and silver.

Forex Impact The Economy

As forex brokers and traders, it is imperative to be knowledgeable and updated with varying economic events and trends so as to be efficient, effective and successful in the market. Forex brokers, most especially, need to be well-informed to be able to fruitfully help their clients who are new to the market.

While there are economic trends that affect the foreign exchange market, foreign exchange also affects the economy. Foreign exchange determines the process of domestic currency being converted to international banknotes at specific exchange rates. Transactions such as these provides distinct implications or consequence for the worldwide economy. Rates of foreign exchange influence capital flows, global trade and political sentiment. Understanding the economic risks linked to foreign exchange as well as globalization is crucial before you start to match up and bring together financial decisions.

Low And High Exchange Rates

The domestic currency valuations are determined by forex rates wherein it determines a particular nation’s political and economic status. Low rates of exchange may indicate political instability and possible recession for a particular nation. On the other hand, strong rates of exchange frequently signals positive commercial conditions. International trade is directly influenced by exchange rates. When the exchange rates are low, this actually supports tourism as well as the export economy since domestic products become affordable for tourists and foreign buyers. But domestic consumers favor exchange rates that are higher as it gives them more purchasing power to expend on foreign or imported goods.

Appreciating And Stable Exchange Rates

Forex rates impact investment funds moving inside and outside of a nation. Countries with currency values that are quickly declining become less appealing to foreign investors. In this case, foreign investors liquidate their investment such real estate, bonds, and stocks since the purchasing power of these assets are losing compared with competing investments in other countries and currencies. It is favored by international savers to buy investments in nations featuring exchange rates that are stable as well as appreciating. Foreigners find it more comfortable to make financial commitments abroad when they believe that the valuations will be preserved. This is so since international revenues are converted back to their local currency in the long run.

The Impact of Corona Virus to The Economy

Coronavirus is real! The virus has taken a toll on many economies around the world. Without a vaccine, cases continuously spike in number. Many nations have experienced another wave of infections when they tried opening their economy.

Governments around the world implement strict measures to halt the spread risking the economy. Measures such as social distancing, lockdowns, and quarantines have been very common in many countries around the world. These measures had a great impact on many economies. It had slowed down many businesses. Because of this, we have begun experiencing a global recession. Up to this date when the first breakout of Corona Virus many economies and governments are struggling to survive and fight this worldwide problem. Still many are uncertain about this global crisis. However, despite these economies and Governments around the world are working hard to come back in order to return to normal.

For many nations, the impacts of the Corona Virus on the economy are still real. Finding solutions on how to recover is still uncertain and blurred. It has caught many policymakers, politicians, and business owners off guard.

 

 

Businesses Should Never Stop Communicating With Customers

The experience of the past months has shown that companies who have communicated with their customers in the first lockdown have benefited greatly when the time comes to unlock. This is true in the case of hotels and other businesses directly impacted by the recent lockdown due to COVID-19.

The recommendation is to keep that essential communication with potential customers even if there are restrictions. It is also very important to target fears in a more specific manner. This includes information on the hygiene concept and security measures, but also flexible cancellation options to increase the chances of bookings. Those who stay in contact with their community are fully booked again rather quickly.

Businesses Should Invest In Better Customer Relations

Every company must thoroughly sift through their customer data. Are they well-segmented? You should invest in customer relationship management right now. Even if you may not be able to make any sales at the moment, you can inspire your customers and build a community with which you are in close contact. Here it is important to put yourself in the customers’ shoes and find out what interests they have and what topics they are interested in. From this knowledge, one can derive an optimal communication strategy.

Are you considering investing in hotels right now? Read about investing hotels at Bond Review before you make any investments.

Communication Through Digital Advertisements

The content of the advertisements must be reconsidered in many ways. A hotel is probably better advised not to aim at bookings, but rather to convey the entire concept and idea more strongly. For example, anyone who drives a wellness concept could keep their community happy with tips for home workouts. Of course, it is still important to communicate as a hotel, but the content should motivate more interaction.

Let’s think of a beauty spa or a fitness center that has to close. If it sends each customer something that increases their well-being, it can pay off enormously in terms of loyalty.

For example, remote fee-based courses or a branded yoga mat with a personal letter and an offer.

It is important to convey the feeling and the image. Customers like this kind of attention and maybe many of them post something about it, which ensures further digital reach. So focus on your customers now. Find out the reason for them to come and see your business! This can be used to strengthen your relationship with existing and potential customers.

Plan, Strategize and Adjust your Budget

Companies today have full control, at least when it comes to digital advertising. You can drive on sight and adjust your budget daily. It also makes sense to work out a basic strategy and plan it in advance for different scenarios. If something changes, the budget can be shifted from one area to another. This also applies if different measures are implemented in different regions.

We are currently living in a very dynamic world and that is why we have to act very dynamically ourselves. There are many legal frameworks to be observed. But we also have to think about the psyche of the customer. The important thing is no matter what you do, you have to track effective measures that lead to purchases and registrations. It is important to use patterns that can be recognized.

 

Ways Foreign Exchange Affects the Economy

Foreign Exchange identifies the practice of converting national money into global banknotes at specific exchange prices. These trades present different consequences for the international market. Foreign exchange rates change global trade, capital flows, and political beliefs. Further, people need to work to comprehend the financial risks associated with the foreign market and globalization, before coordinating financial choices. To learn more about foreign exchange, visit UK Forex brokers website.

Identification

Foreign Exchange rates explain valuations for national money, which explain the political and economic status of the house nation. Low exchange rates can indicate a downturn and political instability. Alternately, strong exchange prices frequently function as a sign of favorable industrial conditions for a specific nation. Exchange rates directly affect international trade. Low exchange rates encourage tourism and the export market. At that stage, domestic products become cheaper for overseas buyers. Domestic customers, however, prefer high exchange prices. Consumers then have more buying power to invest in imported merchandise.

Characteristics

Foreign Exchange rates affect funding flows or investment capital which go into and out of a nation. Nations with fast deteriorating currency worth are somewhat less appealing to overseas investors. Now, foreigners liquidate their stocks, bonds, and property, since these resources are losing buying power relative to competing investments in different currencies and nations. International savers would rather buy investments in nations that contain stable and enjoying exchange prices. Foreigners are more comfortable making foreign financial obligations when they think that value will be saved as global profits are finally transformed back into their home currency.

Factors

Foreign Exchange rates carry significant political consequences. Citizens might point to adverse exchange rates and exchange imbalances as signals that politicians now in office are mismanaging the market. Voters will then agitate for economic reforms and changes in direction. Politicians may respond by suggesting federal tax reductions, whereas legislating for import duties and quotas designed to safeguard the market in the home.

Gains

The orderly dissemination of market rates through coordinated currency markets contributes to increased globalization. Globalization refers to the integration of different nations, cultures, and regions within the world market. This tendency enhances the spread of technological inventions, expands markets, and generates tasks for the global labor pool. Globalization includes inflation since the greater competition for jobs and market share puts downward pressure on costs.

Hazards

Globalization ss connected with contagion or even the spread of financial anxiety and recession across the world. By way of example, the value of this Mexican Peso may fall as a result of sovereign default and charge crisis because of the country. Global investors would then immediately liquidate their Mexican asset holdings. The fallout from Mexico reaches international proportions as people speculate that institutions doing business within Mexico are in danger of bankruptcy. Foreigners are subsequently likely To market all asset holdings, no matter the geographical origin, to meet financial obligations and prevent possible losses. The selling pressure causes global assets worth to crash.

Points To Consider When Choosing A Forex Broker

The trade volume in the foreign exchange market is enormous wherein about 4 trillion US dollars are being transacted on a daily basis. This is quite huge compared to the bond or stock markets worldwide.

Although forex trading is possible without a broker, there is immense value in trading through forex brokerage accounts. For example, ForexTime (FXTM) is one of the fastest growing brokerage company in the forex market. In the fxtm broker review, they provide their clients with unique products and services for them to make the most of their trading.

Apart from the forex market, FXTM also touches the most popular cryptocurrency markets that allows their clients to trade certain types of cryptocurrencies that is done via the reputable MetaTrader platform and where transactions could be carried out through a PC or mobile device.

Choosing A Forex Broker

Hiring a forex broker has its many benefits but it could be tricky. The right broker or brokerage company could open up and maximize your investment opportunities, but with the wrong one, they could restrict your possibilities and options as well as increase cost. So, what are the primary points to take into consideration to make certain you choose the right broker? Below are a few:

  • Scope of Trading Instruments. It is advantageous to be able to make investments in numerous financial markets simultaneously. Working with the right forex broker is a good choice as they could present you with an expansive diversity of markets to trade in, like commodities, stocks cryptocurrencies and more.
  • Diversity of Trading Accounts. A broker must offer you varied kinds of accounts with a range of benefits for particular trading styles like those with greater and better protections, larger spreads or leverage, various kinds of instruments.
  • Bid/Ask Spreads. Forex brokers will give you a quote on two prices for a pair of currency, this is the bid price and the ask price. The bid price is the price you could sell the base currency, whereas the ask price is the price you could purchase the base currency. The difference taken between the bid and ask price is called the spread. This is the way “no commission” forex brokers earn money. You could look for a broker with the lowest spread, however look out for marketing techniques. You may have a low spread now, but that doesn’t mean that will be the same all throughout.
  • Trading Platform. Pick a broker whose platform for Forex and CFD trading is something you are happy and comfortable with, something that complements your needs.
  • Customer Oriented. Working with a forex broker who is helpful and customer-oriented is a much more sensible and reliable choice for traders.
  • Regulated Forex Broker. Of course, it is very crucial that you work and open an account with a licensed broker or brokerage company to ensure they are legal and regulated.

Factors That Affect Currency Values: Economy, Politics, Government Policies

Forex signals are suggestions for going into a trade on a pair of currency, typically at a certain value and time. These signals are either produced manually by an analyst or automatically by a Forex robot provided to a forex signal service subscriber.

Factors Affecting Currency Values

But, similar to most commodities, forces of demand and supply in the market impact the prices of currencies. Sequentially, these forces are affected by numerous factors wherein they sometimes raise demand or supply bringing about a fluctuation in the value of the currency.

Whatever influences money flow in a nation or between nations may affect the values of a currency. Below are three of the major factors that impact the price of a currency:

  • Economy

The currency value of a nation is determined by its economic status. Usually, a budding economy is the basis for a currency that’s stable wherein it is valued greatly compared to others. Whichever factors that influence the progression of the economy, whether in a positive or negative manner also have a bearing on currency prices.

There are numerous economic signs that must be thought through prior to making a decision on a forex trade. These signs exemplify different economic aspects. As the overall condition of the economy influences the value of the currency, these signs are quite beneficial in identifying how the prices of currency will turn out given the present conditions of the economy.

  • Policies Of The Government

The economy of a country is always being assessed by its government and act on it. Policies are formed and carried out by its government to boost existing economic conditions throughout a positive movement and to remedy the disproportion if the condition of the economy isn’t faring well.

Most policies of the economy are under two types, the monetary and fiscal policies. The monetary policies affect the different elements of the financial framework of the country to better or uphold the economy. The country’s central bank executes the policies of the government by means of using numerous investment tactics in the markets.

Fiscal policies sketch out the government’s spending. Part of the fiscal policies is the yearly budget. It identifies the places where government spending will take place. Spending done by the government encourages the industries’ prospects as well as the economy’s segments.

Both fiscal and monetary policies have an effect on currency prices, however the influence of monetary policies is just about instantaneous.

  • Politics

Frequently, politics determines the route taken by an economy. Political turmoil or instability causes many ambiguities regarding the future and suppresses the growth of the economy and the value of the currency. An imminent election or warfare may bring about a careful and guarded investment tactic, lessening the flow of capital into a nation.

Moreover, a change in administration frequently subdues the currency’s price movement in the foreign exchange market. Up until the political outlooks of the new administration or leadership, fiscal and monetary policies as well as viewpoints on global trade clears, the markets don’t demonstrate a clear movement in the value of the currency.

A nation that is regarded as politically unstable won’t be an ideal or preferential partner for trading. This will have an effect on its forex trade and the currency’s value in this market. Conversely, a progressive and broadminded political leader as well as an unwavering leadership put forward amplified investments since the confidence of investors grows sturdier.

The Reasons Why Government is Overspending

Consumer, Trapped, Consumption, Concept, Shopping Nowadays, people can easily buy anything they want even even if it is not yet payday. If the item is too expensive they can even choose to pay it through installment. These are all  possible because of credit. The problem is that people who are unable to live within their means usually get themselves in trouble. And the worst thing that may happen is that they will live in debt. Hence, wholesale tradelines source is on top of the most search terms nowadays.  The same goes for governments. It is also possible for them to overspend if they failed to budget properly.

If a person spends more than he can afford,  then he will most likely find himself in trouble sooner or later. If you continue doing this, your debt gets bigger and bigger and the portion of your outgo that is interest gets larger and larger and eventually you get to the point where you just can’t pay your bills. And if you can’t pay your electric bill they cut off the electricity.

The situation with the government is also similar with the above mentioned case. If they fail to control how it is being spend, the people who are paying for their taxes may start to rally.

What can the government do in times when the outgo is much greater that the income?

  1. Increase Taxes-  It can increase income by raising taxes. But it is limited in how much it can raise taxes. It can only raise them so far. If it raises them too much it will kill incentive and have a counter-productive effect. Capital will flee the country, go elsewhere
  2. Borrow Money– the government can borrow money to make up the difference between its outgo and income. It borrows money by issuing government bonds. People buy government bonds and thus lend money to the government. But, just as with an individual, if it borrows money, it has to pay interest on that money.
  3. Print Money– government has the authority to print money. Just print a whole lot of unbacked money. Then it can pay its bills with that new money, make up the difference between outgo and income with that. You can get away with this for a while but it always brings disaster if you constantly do it. Many governments have tried it and it always ends in hyperinflation with the money becoming worthless (as happened in Germany after World War I with the German mark).

Unpaid Invoices – The Best Collection Agency Can Help Your Business

2020 was undoubtedly a very challenging year for many businesses in different parts of the globe. Apart from struggling with plummeting orders, laying off of employees and staff, as well as continuing uncertainties, a lot of businesses are finding ways to deal with a flood of invoices that are unpaid. In actuality, over half of small and medium-sized enterprises (SMEs) have encountered and have had troubles with late and delinquent payments from the time when the pandemic broke out.

How Can Debt Collection Agencies Help?

Hiring the expertise of a debt collector has become very common for many businesses. However, it is crucial that you get the best debt collection agency in your area to make certain you are provided with a reliable and professional service. When you work with a debt collection agency, they basically represent you and your business, hence you want to ensure you hire an experienced and licensed agency that can effectively and efficiently recover your unpaid invoices without harming the relationship and rapport your business has established with your customers or clients.

Unpaid Invoices – A Rising Problem That Has Worsen

For many small and medium-sized enterprises, unpaid invoices or unpaid debts have been a problem for a long time and this has worsened since 2016. The effects of non-payment of invoices and debts can be extensive. For instance, in numerous cases, these unpaid invoices can restrict cash-flow, inhibit business growth and could lead towards debt retrieval efforts that are not only time-consuming but also very costly which means an added burden and inconvenience.

The pandemic has only made the problem on unpaid debts and invoices worse. As many governments lifted or suspended a number of legal actions relating to non-payment of debts or invoices as an action to mitigate the stress and burden on many businesses and consumers has allowed several unprincipled and devious business operators and consumers to take advantage of the this by evading to make payments promptly or even to not pay at all. Because of this, there a severe crisis among small and medium-sized enterprises has come about, wherein a lot of businesses face financial difficulties as well as the threat of shutting down. Sadly, some have already shut down because of the build-up of a huge number of backlogs on unpaid invoices.

Waiting for clients or consumers to pay is hardly ever a good choice since pursuing and following up debts and invoices in a timely manner is one of the most effective practices of debt collection. This then raises your chances of being successful at collecting payments. However, as many business owners have a lot on their plate to capably run and manage the business, many opt to work with the best debt collection agency for assistance. This makes the debt collection industry even more significant as they play a crucial role not only for the recovery of the business but the economy as well.

Tax Revenue From Legalized Gambling

Login sbobet is one of the leading sports betting site and online casino in Indonesia. Apart from the numerous odds and exciting games it offers along with amazing graphics and user-friendly interface, it is also a safe environment to engage in betting. 24 hours a day 7 days a week friendly and reliable customer support is also available to ensure you have a positive and enjoyable overall gambling experience.

Those are perhaps some of the major reasons as to many people around the globe opt to participate in online gambling such as in login sbobet. Of course, we cannot remove the fact that gambling can also be potentially lucrative especially when you choose the right games, have the proper strategies and skills, as well as employ effective money management practices.

The Online Gambling Market

Indeed, the online gambling market has boomed and ropes in millions of dollars in revenue. Because of this, governments who have legalized and regulated online gambling within their jurisdiction also benefit from this through tax revenue.

Over the past decades in the United States, legalized gambling has expanded and succeeded to become a familiar and commonplace for many to get some entertainment and win some money, from an activity that was once limited. Today, gambling, which includes sports betting and the state lotteries as the most popular, is now legal in most states in the US.

Seeing that legalized gambling carries on to increase in popularity and is becoming widespread, wherein new forms of gambling and gaming are innovated and presented, there is an argument among the public regarding the costs as well as the advantages the gambling sector provides the economy. While there is still an ongoing debate, the economy does benefit from legalized gambling.

Generating Tax Revenue Through Legalized Gambling

In terms of tax revenue, let’s take sports betting as an example. Since the Professional and Amateur Sports Protection Act, also known as PASPA, was repealed in May 2018, each state in the United States were given the deciding power to either make sports betting legal or illegal within their jurisdiction. From June 2018 to August 2019, the total amount wagered on sports in Nevada reached 6.6 billion USD whereas New Jersey had 4.6 billion USD. After that, there was a hug decrease wherein Pennsylvania’s sports handle was 608 million USD.

Although Nevada has a higher amount of handle (the sum of the wagered amount) by about 2 billion USD compared to New Jersey, the state of New Jersey actually generates more tax revenue coming from sports betting than Nevada. This is because New Jersey set an 8.5% tax for sports wagers that were done in person and at tax of 13% when done online as well as on mobile sports wagers. For Nevada, the tax rate for all kinds of sports wagers was at 6.75% which is lower compare to New Jersey. Since bettors in New Jersey made bets mostly online, they were then taxed at 13% giving the state a much higher tax revenue.

This means that individual states can definitely benefit from legalize gambling as the repeal of the PASPA didn’t only give them the deciding power to make gambling legal, but also the authority to impose their own systems when it comes to imposing tax rates on gambling, whether offline or online.

Learning From A Financial Crisis 10 Years Ago

Stocks Exchange Ticker Board

 

Lehman Brothers. Washington Mutual. Bear Stearns. A decade following the fiscal disaster, the casualties of this financial near-collapse are fading out of memory. But this period of chaos permanently changed the U.S. economy and the monetary system.

Listed below are 10 common questions about the catastrophe as well as its durable impact:

What has been the short-term effect of the fiscal crisis on the market?

The catastrophe has been that the worst U.S. economic meltdown as the Great Depression. In the USA, the stock exchange dropped, wiping out almost $8 billion in value between late 2007 and 2009. Unemployment increased, peaking at 10% in October 2009. Americans dropped $9.8 trillion in prosperity as their dwelling values plummeted as well as their retirement accounts receivable.

In all, the fantastic Recession resulted in a reduction of over $2 billion in worldwide economic expansion, or a fall of almost 4%, involving the pre-recession summit in the next quarter of 2008 and also the minimal reach from the first quarter of 2009, based on Moody’s Analytics.

“It had been a shock to the financial system it unleashed dynamics which we don’t understand entirely,” explained Joe Brusuelas, chief economist in RSM, an audit and advisory company.

What’s become the long-term influence on the market?

The U.S. market has mostly recovered. In late August the U.S. inventory exchange established a record for its longest-running upswing in its own foundation, arming the retirement account of employees who remained running through bouts of volatility. Home prices also have rebounded, compelling overall housing wealth to high the amounts seen from the pre-recession summit. Unemployment is very low, at 3.9% in July.

“It is reasonable to say that the crisis was a financial calamity for homeowners anywhere, but almost everyone has regained what they dropped because of recession,” said Mark Zandi, chief economist at Moody’s Analytics.

Nonetheless, the restoration hasn’t buoyed all customers alike. Many employees have fought to land occupations that paid in addition to the places they had prior to the downturn. That change, together with the time spent from work as well as also other drops in productivity because of the catastrophe, has resulted in a reduction of roughly $70,000 in lifetime income for each and every American, according to a quote in the Federal Reserve Bank of San Francisco. In the conclusion of 2017, 4.4 million homeowners had been submerged in their mortgage, which they owed over their houses were worth, as stated by the property business Zillow.

What happened to Fannie Mae and Freddie Mac?

In 2008the authorities seized control of the distressed mortgage giants since the home market unraveled along with the firms’ losses piled up. Taxpayers pumped billions to the businesses, but within the last couple of decades Fannie Mae and Freddie Mac, which buy mortgages from lenders and package them into securities to market to investors, have now already been spewing gains which feed to government coffers. Fannie Mae, by way of instance, took $119.8 billion in taxpayer bailout cash but has given $167.3 billion into the Treasury Department. The bigger Freddie Mac earned $71.6 billion in money and has turned around $112.4 billion in earnings.

The businesses remain under administration conservatorship, and there’s very not much certainty in Congress to handle the complex job of discovering their futures. Some suggestions have known for Fannie and Freddie to become privatized others to abolish all of them together. Further complicating the struggle: Many Wall Street investors state Fannie Mae and Freddie Mac’s earnings must be moving to investors rather than the authorities.

Meanwhile, Fannie and Freddie back roughly 60% of U.S. mortgages, also lawmakers seem reluctant to disturb the status quo, housing experts say.

“There’s a threat that in the event that you get it wrong, you’re going to do harm to a marketplace that’s vital to countless Americans,” said Michael Barr, also a University of Michigan Law School professor who served at the Treasury Department in 2009 and 2010.

How can the catastrophe change the home industry?

The home market had been ground zero of this catastrophe. The market collapsed as homeowners with subprime and other bothersome loans payable in record levels. Home prices fell, and countless lost their homes.

The market has mostly recovered, together with home prices increasing and much fewer folks behind in their mortgages. Regulators also have established new limitations on the sorts of loans banks can provide.

“Recall ninja loans? Regardless of income, no resources, no issue? We’ve come quite a distance,” Brusuelas explained.

However, the housing restoration has left low-income, low-credit-score economists, economists say. As opposed to risk making loans to all those buyers, banks have concentrated intensely on people that have immaculate credit and purchasing more-expensive houses, they state.

“There’s pressure building to alter this,” explained Aaron Terrazas, a senior economist in Zillow.

Are there “too large to fail” banks?

Yes. In reality, lots of the nation’s most important banks are larger now than they were prior to the fiscal crisis. JPMorgan Chase has $2.5 trillion in assets, compared to over $ 1.5 trillion in 2007. Bank of America has roughly $2.3 trillion in assets, compared to $1.7 trillion in 2007. The resources of Wells Fargo are around $ two billion, over twice what they had been correct before the catastrophe.

“When and if another catastrophe strikes, the largest players will likely be much bigger than they had been during the previous accident,” based on your 2017 S&P Global Market Intelligence report.

Some policymakers, such as Minneapolis Federal Reserve President Neel Kashkari, continue to involve a break of the large banks, but the thought hasn’t gained much traction. Lawmakers considered attempting to restrict how big banks while still studying legislation to overhaul the financial sector but finally rejected the notion. Rather, the 2010 financial-overhaul legislation, ” the Dodd-Frank Act, given regulators wide new powers to police the market, along with the largest banks experience the most extreme scrutiny.

“Fundamentally, too large to fail was resolved — taxpayers won’t cover if a financial institution fails,” Jamie Dimon, leader of JPMorgan, the biggest lender in the nation, composed in a 2017 letter to investors.

 

ALSO READ: Political Loans and Its Process

 

What happened to Lehman Brothers?

Most stage to Sept. 15, 2008 — that the afternoon Lehman Brothers, the country’s fourth-largest investment bank, filed for bankruptcy as a turning point in the catastrophe. After journeying into the rescue of several other important financial institutions, the national authorities drew on the line with Lehman, permitting the company to fall.

A decade after, a bankruptcy court is still wading through the wreckage. The bank trustee has offered tens of thousands of its resources and paid more than $130 billion to settle claims from it. However, 365 former Lehman Brothers workers are still habituated to recover millions in lost wages and bonuses, possibly keeping the situation in court for a long time to come.

“When we began ten decades back, we confronted the disorderly conditions of a worldwide liquidity crisis and needed to make instant decisions at the ‘Fog of Lehman,'” James W. Giddens, liquidation Duties for Lehman Brothers, said in a statement. “It was a massive quantity of work. We’re proud we could recover as many resources as possible for all those distributions within a very efficient and fair procedure.”

Did anybody go to prison for inducing the fiscal crisis?

No significant bank CEOs were charged with inducing the fiscal crisis. Federal prosecutors believed instances against several high-profile characters, such as Angelo Mozilo, the chief executive of mortgage giant Countrywide Financial, but finally did not pursue them. In 2013,” Attorney General Eric H. Holder Jr. explained some financial institutions were “so big” it created it”hard for individuals to prosecute them.”

Prosecutors could have had evidence that the high heeled executives were involved with criminal behavior to deliver a circumstance, said Jacob Frenkel, a former federal prosecutor and also a partner in the law firm Dickinson Wright. “A lot of those decisions in associations which gave rise to the fiscal crisis, and surely the plan of the competitive practices and tools which triggered the catastrophe, happened at rates well under the big-name executives,” he explained.

Dozens of executives in smaller banks are financed by the Office of the Special Inspector General for its Troubled Asset Relief Program, which has been launched to authorities firms that obtained bailout funds. But SIGTARP has voiced frustration with the problem of alerting executives in the very best companies.

To be certain, the banking sector failed to pay a hefty cost to the catastrophe — billions of fines. Bank of America, by way of instance, paid a whopping $17 billion to resolve allegations that it knowingly sold faulty mortgage securities which led to the fiscal crisis. JPMorgan Chase compensated $13 billion.

Why is Wall Street still yanking out large bonuses?

Sort of. Wall Street bonuses are nearing record highs. The normal bonus payout attained $184,220 final calendar year, a 17 percent growth compared with the preceding year, and also the nearest Wall Street has come in over a decade into its all-time high $191,360 from 2006, according to the New York state comptroller.

Wall Street’s critics contended that excess bonuses helping fuel the fiscal meltdown, and Congress tried to tackle the matter in Dodd-Frank, needing authorities to set new guidelines aimed at preventing executives by making risky monetary stakes to improve their cover and then amassing massive bonuses prior to the fallout remains apparent. However, the principles are years old and have yet to be finalized. Trump-era regulators aren’t predicted to drive the issue further.

“Ten years following the catastrophe, the origin — venal pay commissions — remain unaffected by Washington,” explained Bart Naylor, a financial-policy urge for the nonprofit consumer group Public Citizen.

Industry officials say that the rules were overly complex and unnecessary. Banks have already dealt with the issue, they say, noting most bonuses have been handed out over many decades instead of all simultaneously.

Did all of the firms bailed out by taxpayers pay the cashback?

Pretty much. Even the Treasury Department recovered $412 billion to banks, both carmakers and other fighting firms throughout the Troubled Asset Relief Program or TARP. At the end of this past year, it’d accumulated that which it was paid out from bailout capital and then a few, leaving the authorities with a gain of 12 billion.

Just about half of those banks and other businesses the Treasury Department spent in reimbursed in full, stated Christy Goldsmith Romero said head of SIGTARP. Some firms paid interest and dividends, which helped compensate for the program’s reductions some businesses, ” she explained. Taxpayers, by way of instance, dropped about $11 billion over the Bank of General Motors.

A couple of banks have not stopped paying the authorities back. However, they owe a total of less than $100 million, also a little section of the money given out. Additionally, TARP pushed out billions to assist distressed homeowners from paying banks to reduce their rates of interest and monthly payments. Big banks, such as Wells Fargo, are anticipated to keep on getting money through that application till 2023.

Is your monetary system safer than it ever was prior to the catastrophe?

Normally, economists concur that the fiscal system is more significantly even safer. The 2010 Dodd-Frank Act place new guardrails across the banking industry. The nation’s most important banks should now experience periodic “stress tests” to demonstrate that they could endure another catastrophe and draw “living wills” so they are dismantled in a crisis without needing a taxpayer bailout.

However, Congress and authorities have lately begun loosening a number of Dodd-Frank’s vital prerequisites, permitting small and midsize banks to escape a few of the very strict rules, such as. Critics warn that these attempts could make yet another catastrophe more likely.

“A lot of holes within our financial regulatory system have become plugged,” explained Aaron Klein, policy manager at the middle on Regulation and Trade in the Brookings Institution. “Can we be impervious to a different catastrophe? No. It is human nature. Cars are safer now than they were 30 decades back, but you are still able to get in a crash. You still might need auto accident settlements.”

 

Thailand Continues to Rely on Tourism for Economic Recovery

Even if Thailand was able to effectively prevent the virus from, the country is still at risk of experiencing a record-high economic decline due to travel and tourism disruptions. While a proposal for legalization of online gambling was put forward as a fresh source of revenue, the country’s economic recovery program remains focused on travel and tourism.

Since October 08, 2020, Thailand re-opened its doors to international tourism to which new Special Tourist visas are being issued. The visas are special because they will enable visitors to stay up to nine months. Acceptance of online applications begun last October 01 and will be ongoing up to September 2021.

Initially, approved Special Tourist visas will be valid for 90 days, but are renewable and can be approved for extension twice — up to a maximum of nine months. However, international tourists have to observe quarantine measures by staying for 14 days in a state-accredited facility quarantine protocols before they can go sightseeing.

Who are Eligible to Apply for Thailand’s Special Tourist Visa?

Only foreign nationals of countries deemed as low risk territories are eligible to apply for the Special Tourist visa.

In addition, those with approved visas must be able to present a negative result from a coronavirus test taken within 72 hours before arrival in Thailand, as well as provide proof that they have booked accommodation. Moreover, visitors planning to enter the country can only do so by taking chartered air flights or private jets.

The Special Visa is different from the proposed ‘Safe and Sealed’ travel scheme that is still being considered. This proposal puts forward recommendations of allowing foreign visitors to fly directly to Phuket and take their 14-day quarantine period at a designated beach resort. The scheme though would still require the visitor to take a test before setting off for Thailand, and if negative would take another test after the 14-day quarantine before traveling around the island. Should the visitor/s desire to leave Phuket and continue their vacation in the mainlands, they would have to take another test.

Thai MPs Recommendation to Legalize Online Gambling Met with Orders for Crackdown

In the latter part of August, 2020, MP Mongkolkit Suksintharanon, leader of the Thai Civilised Party floated the idea of looking into the legalization of gambling as an alternative source of government revenue. The Thai politician rationalized that while there are many online gambling websites catering to Thais as online recreation, the government does not get to collect any revenue in the form of taxes, which the MP estimates could amount to as much as 5 to 6 million bahts annually.

MP Mongkolkit asserts that will take some time before it can fully bring the much needed revenue due to the worsening COVID-19 crisis. Whereas the online gambling operations poses as an untapped source of potential revenue that can speed up the country’s economic recovery.

However in September, as an apparent response to such proposal, Prime Minister Prayuth Chan-ocha ordered the Minister of Digital Economy and Society Minister to launch a crackdown on online gambling. As a result, Internet Service Providers (ISPs) are now under orders to block the foreign gambling websites from accessing Thai’s local networks.

Most Thai gamblers are not as worried though because their favorite online casinos, like 918kiss, can be accessed by way of mobile application that works outside of a public network.

Why your Vote Matters

Voting is a right, a privilege, and a duty and therefore must be seen and treated as such. Often times, people brush away the opportunity to voting and suffrage- the opportunity to change. Can we make a difference? Yes. How? Register now.

By just a few simple clicks, you can register and be part of the change- A change for the future and a change for the better. All your voting FAQs and guidelines can be found in an ala one-stop-shop site for your convenience and all you have do is take the time and minimal effort to sign up and register, just 5 minutes of your time today can be the path to a thriving and flourishing nation tomorrow.

Be the change you want to see in the world; vote now.
https://www.usa.gov/register-to-vote

Implementation of economic policy

Active economic policy is based on analyzes of the current situation and expectations of future developments; their successes must be monitored. The state sets framework conditions for economic activity but also intervenes in economic processes on a case-by-case basis.

Tasks of economic policy planning

The most important tasks of economic policy planning consist of diagnosis, prognosis, and monitoring the success of the implemented policy.  Just like in qq online, there are some policies that are to be implemented.

The diagnosis checks the state of the economy and the previous success of the economic policy goals pursued. The forecast represents a conditional forecast of economic development, in particular of the effect of planned economic policy measures. At the end of the day, the success control has the task of determining whether the goals have been achieved or not, and of giving indications as to which policy changes may be necessary.

Diagnosis of economic policy

The diagnosis analyzes the existing economic situation and compares it with the previously set goals. During the diagnosis, information about the economic reality must be collected and evaluated. The most important source for this is official statistics, but additional information may have to be obtained from the administration or from research institutes, for example in the form of expert reports. However, such information is not free: its acquisition creates costs that must be compared to the additional benefits for economic policy.

Success control of economic policy

Effective economic policy contributes through its measures in the desired manner and to the desired extent to the attainment of economic policy goals. In addition, economic policy is efficient when it has taken precisely those measures through which it was able to achieve its goals with the lowest possible cost.

Rules and discretion

In view of the many uncertainties and weaknesses with which diagnosis and impact prognosis are afflicted, the question arises whether an economic policy with great discretion and numerous individual interventions does not cause more harm than good. Interventions on a case-by-case basis are associated with risks, as it is often difficult to predict whether and with what time delays they will have an effect.

Political and Economic Effects of COVID 19

COVID 19 has affected almost 19,300,000 people all around the world which claimed almost 717,000 lives.

Hundreds of thousands of unrecorded cases will add up to the figures. Governments and medical experts around the world cope to straighten the curve. It is a sad reality that COVID-19 will be a threat to public health.
 

2020 Political Economy Aspects of the COVID-19 Pandemic

The virus caused a major political and economic impact. Different nations around the world have experienced this. We felt the impact of COVID 19 on the economy by the lockdowns that each nation imposed on its borders. This affected work and travel. Many big factories failed to supply its Global market.
 
The virus has also caused an impact on politics. Citizens accused powerful leaders around the world for poor leadership skills. Leaders like Donald Trump had experienced this. Citizens accused them of being unable to handle the crisis. Because of the increase in cases they blame their leaders for this. Americans are fearful of economic slowdown or recession in this great nation. One’s this happens Donald Trump has lessened his chances for reelection.

Business Taxes and What You should Know about it?

It is the government that is setting the tax policy in an effort to accomplish great growth from directing business decisions all the way to raising revenues. For business leaders, the tax is representing another cost to generate income. Legislatures are looking forward to discourage a certain activity might levy more taxes to make it less appealing to businesses. Then again, to assist companies experience continuous growth, the government may be offering tax credits and breaks in order to subsidize private expenditures.

As a matter of fact, if you heard of such news that the government is currently offering this kind of program, take advantage of it as it may boost your odds of approval for få sms lån uten kredittsjekk.

But what about the Rates?

Tax planners are calculating the additional savings or costs at the marginal rate of the business or the rate at which every dollar will be taxed. To give you an example, a business that’s in 40% tax bracket will likely spend 40 cents of every dollar on their taxes.

Another kind of tax rate planners usually discuss is about the effective tax rate or the percentage of the taxable income spent towards taxes. One example of this is, if a business with a million dollar net income before tax and quarter million tax expense will have effective tax rate of 25% no matter what the marginal rate is.

Capital Allocation

If a business does not have enough capital to tackle two ventures simultaneously and has to decide which one to pursue, managers are examining the comparative returns that are offered by every venture. Comparing returns will require the calculation of after-tax cash flow which will depend on tax treatment of every activity.

If ever the tax rate increases across the board, then it will be reducing the return offered by any given activity subject to tax. For the same taxed activities, the increase will not change, which then provides better returns. On the other hand, an activity that is offering tax credits or deductions might just prove to be more of an appealing investment after it’s adjusted for higher tax rates.

Discontinue Operations

In most cases, taxes are levied as percentage of the net income of the business, in line with the general principle that the government must bill taxes when taxpayer has the capacity to pay. There are taxes like property taxes that are levied on asset’s value regardless of the ability to pay.

Economics For People

On the subject of Economics for the People

“It is very vital for our democracy to work that average individuals be aware of primary concerns and fundamental ideas of economics.” – Ha-Joon Chang

The economy for the longest time has been the territory of the ivory structure, in which unique dialect and opaque theorems cause it to unavailable to many people. That is an issue.

Ha-Joon Chang, bestselling author of “Economics For People” points out the essential principles in economics, strengthening anyone to have the government, the society, and economic climate responsible.

World’s Economy and Oil Prices in Times of Pandemic

The WTI or West Texas Intermediate crude reported negative for the very first time in history for oil traders were stuck between humongous oversupply and the lack of storage to put it. Because of this, the global prices for crude remain at the bottom per barrel.

Basically, there are numerous oil producers that are having a hard time shutting down their units or finding alternatives that are environmentally acceptable to put on their waste. Sea tankers find it hard as well in offloading and currently trying to readjust routes on their hunt for takers. Thing is, this isn’t going to be an easy fix for Covid-19 pandemic has shut down the demand for oil all over the globe.

WTI is currently trading at 17 dollars while Brent equivalent is at 25 dollars. Still, this is a level in which global oil is failing to make good profits. WTI as well as Brent are the two primary grades of oil that are being used in benchmarking prices worldwide with Brent found offshore and being a bit of better quality compared to its onshore counterpart.

Soon enough, more tolerable prices might return if, the oversupply started to level off and global demand rises after restrictions on lockdown are relaxed. Question is, what would be the long term prospects for oil prices and how they’ve been impacted by Covid-19?

Energy Prices

The future of oil prices is typically cheaper than the current or the spot price. Meaning to say, those who are okay to underpin the future of oil production with the early orders normally get discount. The crossover of future and spot prices is otherwise known as short-term glut or contango. Basically, this isn’t the first contango that ever happened in history of energy trading. Electricity markets have a period of over generation in which the producers are paying consumers to take power that will damage the generating station.

Without a doubt, this world event is becoming a lot more common due to how the world transition from the different kinds of energy that could be stored like oil and those that cannot similar to solar power and wind power. We are now seeing how these events unfold in all parts of the world.

It will Recover

In this modern time, the cause of oil contango is the fact that investors are thinking that the prices will start to improve in the long run as soon as the economy recover. Basically, if you are trading and using resources from https://daytradinginvesting.com/education/forex-trading-in-2020, this can be very helpful in forecasting where the trend will go.

Former President’s Say On Trump’s Corona Crisis Management

Former US President Barack Obama criticized his successor Donald Trump’s corona crisis management. President Obama said in a conference call with government officials that Trump’s response to the epidemic was “a catastrophe of absolute confusion.” News website Yahoo News recorded on Friday.

Covid-19: What Barack Obama said on Donald Trump’s Handling of Crisis in the US

President Obama chose the trump era ideology and built a bridge to the current crisis. “What we’re fighting is a long-term trend associated with selfish attitudes, divisions, and perceptions of others about the enemy. This has been a strong motivation for American life. But we have experienced internationally,” said Obama. : “This is why the response to this global crisis is weak and inconsistent.”

The former president admitted that even the best government seems bad in the current situation. “This attitude” suddenly appeared to me, and “let’s go to hell with others” was clearly a confusing disaster. Attitude has become the business philosophy of our government.

The World Must Go On Even Without Trump

The US President has been blocking an important body of the World Trade Organization for months. The European Union is now presenting a new association. That should impress Washington for one reason in particular.

Under President Donald Trump, the United States has strongly been away from the world. He showed this most recently in the current corona crisis, in which Trump speaks disparagingly of the crisis reaction of Europeans despite the desperate situation in his own country and even calls the coronavirus the China virus. While Brussels was only astonished at the beginning of Trump’s tenure in view of the new tones from Washington, the stiffness in the shock has now given way to a grim determination.

Europe has no choice but to work on a new world order in the age of Trump – and the latest result is now presented by EU Trade Commissioner Phil Hogan. His employees have been working for months to keep the global trade order alive despite Trump’s attacks: not only that the US imposes punitive tariffs on key trading partners and thus destroys wealth worldwide.

The US government is also working to ensure that trading partners within the WTO can no longer defend themselves against punitive tariffs . To do this, they block the dispute settlement within the Geneva organization that has been working successfully for almost a quarter of a century.

Asia Is Facing Economic Shock Due To Corona Pandemic

The economic shock of the coronavirus is forcing China and Hong Kong to move forward, as it threatens to push Japan into recession. Private lending institutions have also extended loans from $100 and $35,000 for any reason in minutes however provided only to those whose businesses were impacted by the current pandemic.

Southeast Asia faces economic turmoil due to COVID-19

In China, more than 70,000 people have been infected with the coronavirus since Monday. According to the National Health Commission, 1,770 people have now died from the virus, 105 more than the previous count (data were taken as of February).

Less than two months after the outbreak of the virus, the economic damage in Asia is also increasing day by day. The International Currency Fund (IMF) calls for international action, but it remains unclear what it should look like. At the end of this week, G20 finance ministers will meet in Saudi Riyadh.

China

Beijing reported on Monday that it is dampening the economic shock of the coronavirus by further boosting the economy and also providing temporary corporate tax cuts. Those measures will increase the budget deficit.

The central bank previously pumped cash into the financial system, lowered interest rates to its lowest level in three years, and allowed local governments to contract $ 111 billion in debt. The Communist Party’s politburo wants China to achieve its economic goals, suggesting that the stimulus is still to come.

Japan

In Japan, it is feared that the coronavirus is pushing the economy into recession. The economy shrank by 1.6 percent in the last three months of last year, as Monday showed, as families tended to tighten after a VAT hike much harder than expected.

Because of that tax increase, companies reduced investments by 14 percent. The coronavirus threatens to shrink Japan again in the first quarter of 2020, representing a recession.

Singapore

The Ministry of Trade and Industry cut its estimate for economic growth by one percentage point this year. It was previously at 0.5 to 2.5 percent growth. That is now a contraction of 0.5 percent to 1.5 percent growth. Analysts say Singapore is on track to record its biggest budget deficit in 20 years.

Hong-Kong

In Hong Kong, a government chief said this weekend that a ‘tsunami-like’ economic shock is coming that could cause unemployment to rise rapidly and push the budget record to a record high.

Thailand

The Thai government cut its prospects sharply. While she previously expected 2.7 to 3.7 percent growth this year, it is now 1.5 to 2.5 percent. Interest has been reduced there.

Malaysia and the Philippines

The central bank has cut interest rates in both countries. Asian governments have pushed hard to immobilize the people so as to control the spread of the virus. But the lockdown threatens the people’s basic needs. The authorities have promised monetary help and have asked financial institutions to consider flexing their payment schedules for various loan repayments.

The U.S. Economic Boom Under Trump’s Administration

So is Trump right? There is a lot to be said about that. First of all, the president inherited this boom from his predecessor Obama. Then there is, and that also applies to the previous president, a substantial growth difference with the previous duration records of the American economy. The long boom in the 1960s had an average annual economic growth of 4.9 percent. The heyday of the 1990s produced an average of 3.6 percent economic growth annually. But the current period of continuous growth is tame, with an average growth of only 2.2 percent. It has been going well for a long time, but also very slowly. Last year, economic growth amounted to 2.3 percent. Trump’s new budget assumes 3 percent growth, but even his finance minister Mnuchin said last week that this is not being achieved for a long time.

Examining the Strength of the Trump Economy

In addition, the interest rate policy of the central bank is extremely flexible and experienced a remarkable tournure at the start of last year. The president of the Federal Reserve, Jerome Powell, bent an intention in less than two months to raise interest rates to lower them in an intention. That was a corn on the stock market mill, where stock prices had one of the best years since the Lehman crisis in 2019.

And then there is the budget policy itself. According to the new budget, the US budget deficit will amount to 4.6 percent of the gross domestic product. According to the International Monetary Fund, which uses a different definition, it even amounts to 5.5 percent. Such a high deficit is unusual after such a favorable and long economic boom. In its most recent publication, the Congressional Budget Office, the formally impartial mathematician of Congress, reports that the US budget is now on course for an endless series of rising deficits. At least until 2030, when the deficit will be 5.4 percent. The national debt will have risen by that time from 81 percent of GDP to 98 percent. And that is the American definition. According to international budget standards, the US national debt is already 108 percent of GDP. Except just after the Second World War, there was not such a series of budget deficits as those under Trump.

There are two stories in the U.S. economic growth. One in which the US is going through a renaissance, under the unorthodox policy of President Trump. With increasing employment, rising wages and strong stock prices. The Great American Comeback, as Trump called it in his State of the Union. But there is also another story in which the lifespan of the American economy is extended with equine resources. Just like in a horror movie, to dissolve rapidly in the event of death. It is unlikely that these two lectures will meet each other. Just like that, in current American political relationships, it seems to be the case with every other subject. Certainly in the election year 2020.

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The First Phase Agreement Between US and China

The phase one trade deal between the United States and China has not really guaranteed an end to the dispute between the two nations. This had been the words of Myron Brilliant, the American Chamber of Commerce vice-chairman.

As outlined by Brilliant, the trade agreement is anticipated to be agreed upon sealed by signatures. This clearly shows that pressure involving the two camps is easing. Brilliant added that there is more to the agreement that it had been previously envisioned.

As we all know, he has attended briefings on the content of the contract but has not yet seen the text. “In order to build trust and certainty, the implementation of ‘Phase 1’ is very important,” Brilliant said.

He said, but even though the preliminary contract “eases the bleeding,” it did not end the dispute. China carries on to support its own industries, while the United States still imposes import tariffs on Chinese goods worth billions of dollars. Therefore, it is expected that the contract extension will be more difficult.

Several critics have also questioned the implementation of existing contracts. Included in the agreement, China should significantly expand its acquisitions of American agriculture products.

Politics Versus Economics

Politics is the politician who puts together the opinions of the group and makes a rule. The person who does that is called a politician. The economy is a series of activities from making things to be bought and sold to people who need them, to buying and using them.

For example, make vegetables, deliver them to the market, buy vegetables from the market and eat them, or create an amusement park and have customers visit the park and enjoy riding a roller coaster.

Economics and Politics: Basic Definitions

The Role of Politics in Economy

It is the role of politics to make rules for the production of goods, the production of goods, the distribution of goods to people, and the consumption of goods used.

For example, if there are chemicals that should not be used during production, it is the job of a politician to gather the opinions of experts and compile them into rules (laws).

It is the job of politicians to create laws that will not abuse new technologies and other harmful things.

The role of politics, as well as how to deal with various foreign affairs, also responds by incorporating the opinions of various people, and this is called diplomacy.

So, if the politicians are blurred without any decision, the economy, technology, and foreign situation are changing every moment, and the current law becomes useless over time. In a straightforward example, PCs and mobile phones did not exist 50 years ago, but now everyone has it, and there are many crimes using it.

Should Cryptocurrencies be Banned for Good or a Stricter Regulation has to be Implemented?

Blockchain is simply a public record of past valid transactions. Bitcoin and all other digital coins are validating financial transactions using a process referred to as “mining”. This is then distributed among computers to solve mathematical problems. Computers that were able to solve it then receives an award and can use the solution in verifying transactions by means of adding blocks that contain multiple transactions to blockchain.

When you make use of crypto trading bot from https://www.cointed.com/bitcoin/trading/best-crypto-trading-bots/, it will be using the same principle but only different. It applies a different format by means of analyzing the market and make trades on bitcoins to generate profits.

A Fair Chance for Everyone

Protocols are intentionally designed in ensuring that the computer that solved the problem is not aware of which transaction it is working on. This at the same time will help in preventing predictions about the computer that’ll likely work on specific transactions. Furthermore, it will ensure that just one person has possession of single currency unit in a given time. This makes it hard to tamper or fake transactions.

For this reason, there are numerous questions in relation to the opportunities and risks associated with the use of cryptocurrency for funding political campaign and having transparency as well as oversight of said transactions.

Another thing to be taken into account is whether they must be included in the circulation or real currencies or if it should be treated like an asset or something else.

Expanding Knowledge in its Use and Applications

In political finance, it is critical to identify its purpose for there’s a totally different regulation between in-kind and in-cash donations. What’s more, digital currencies may violate political finance regulations like by channeling anonymous or foreign donations to banned countries.

Above everything else, it is uncertain whether it merits special regulations since they’ve yet to be in mainstream and most remain skeptical regarding what its future holds in legal economy. As a matter of fact, even experts in political finance only have mere understanding of how cryptocurrencies work and applications as well as its implications in relation to financing politics.

In Bad Light

One notable aspect that cryptocurrencies have is its decentralized nature. This enables people and certain entities to circumvent banking system which can cause big issues for AML or Anti-Money Laundering efforts and opportunities to reduce the cost of transaction. When cryptocurrencies are made focus more on privacy instead of transparency, oversight agencies are facing serious challenges in monitoring financial and transactional flows that raises concerns regarding their possible effects on how many is used in politics, corruption, money laundering and funding of illicit activities.

China Still Has Strong Economic Security

Primary financial institutions in China said the Chinese economy still has strong resilience despite mounting pressure. Among the increasing pressure is related to debt swelling and the ongoing trade war with the United States (US).

The PBOC (Peoples Bank of China) added that many Chinese households saved more, the business community was vibrant and there were large financial institutions that functioned well and many policy tools. The PBOC statement was revealed in a report on financial stability.

China: Economy ‘still operating within a reasonable range

“The PBOC will increase the flexibility and coordination of financial supply in serving the real economy while preventing financial risks,” the PBOC said, as quoted by Xinhua, Saturday, November 30, 2019.

On the other hand, the Chinese central bank placed so much stress on the significance of the financial market in preserving China’s real economic climate. At the PBOC meeting chaired by PBOC Governor Yi Gang, conference participants agreed that the financial sector had offered stable support to the real economy in 2019.

However, according to a statement released after the meeting, achieving stable macroeconomic and financial operations still faces a number of challenges, the downward pressure on the economy continues to increase, and social credit still faces pressures of partial contraction.

Yi said ongoing efforts must be made to strengthen counter-cycle adjustments and increase credit support for the real economy. He underlined that the increase in money supply and combined financing must be in line with nominal GDP growth.

“As for M2, the extensive gauge of the money supply which involves cash in circulation as well as all deposits, increased to as much as 8.4% YoY to 194.56 trillion yuan (around USD27.7 trillion at the end of October, PBOC data show.

M2 growth is the same as growth at the end of September. However, 0.4 points higher than the same period last year. Its growth this year is basically in line with nominal GDP growth.

Furthermore, Yi urged that the financial sector can play a full role in the role of the LPR mechanism in reducing real lending rates and continue efforts to increase bank lending capacity by replenishing capital.

“China will continue to implement wise monetary policies and see banks contribute more to financing the real economy,” the PBOC statement said

On a side note, while China’s economic climate is highly affected by its financial sector, the support of its primary institutions is overwhelming. And even if loans to the public is not easily accessible (except for settlement loans like car accident loans), they still manage to keep a strong economic climate.

What is IPE or the International Political Economy?

The IPE is a part of social science that aims to better understand global issues through the use of theoretical viewpoints and multifaceted tools. Even though it has primarily grown as a field under International Relations, it has now fully developed to stand alone. The University of Puget, there are more than 30 students who have finished a degree in IPE every year. The rising popularity of IPE is a result of the continuous breakdown of limitations that divides the economy, politics, and various other social sciences.

Progressively, the single most stressing issue that researchers and lawmakers are facing are those that can only be understood from various points of view. IPE brings down the walls that limit rational inquiry within the arena of social sciences. Therefore critical questions and issues could be analyzed with no disciplinary reference.

International Political Economy

 

Politics And Cryptocurrency – Will They Ever See Eye To Eye?

Investors have the opportunity to become involved in cryptocurrency trading at anytime and anywhere. However, cryptocurrencies are identified to be extremely volatile or unstable, with drastically fluctuating prices even in minutes. With its volatility and the capability to trade anytime and anywhere, these factors restrict in numerous ways the efficiency of manual cryptocurrency trading.

Providentially, there is a solution to such issues. One of the major solutions is the best crypto bots for trading, or tools that are automated to administer trades as well as carry out transactions for human investors.

Slow Acceptance and Adoption of Crypto by Politicians and Governments

Many individuals, businesses and industries are quick to adopt cryptocurrencies. Politicians and governments on the other hand appear to be taking the adoption of cryptocurrency slowly. Moreover, when Facebook has publicized its new crypto project, legislators and regulators were quick to respond with apprehensions and criticisms. Additionally, they called for its strict regulation, which would definitely impact the cryptocurrency industry.

Regardless, politics and cryptocurrency must look for some commonalities as cryptocurrencies is to remain. Regulators are more and more expected to integrate crypto assets into the worldwide economy. Furthermore, as the masses become more interested, knowledgeable and involved with digital currencies, central authorities must recognize it as part of human society.

With increasingly more G20 countries prepared to back the global regulation for digital currencies, politics and cryptocurrency might grow to be more tightly and strongly intertwined. Still, a large number of government officials correlate digital currencies with high risks, especially with the announcement of the Libra project.

Who Supports Blockchain and Cryptocurrencies?

Although majority of nations lack a strong and well-defined legislation and regulation for cryptocurrencies, a number of legislators are in favor of crypto and digital assets. For instance, 2020 US presidential candidate under the Democratic party Andrew Yang is enthusiastic about Bitcoin, and actually accepts donations in the form of Bitcoin as well as Ethereum to finance his campaign.

Japan, Sweden, the UK, as well as Switzerland have likewise voiced their support of the adoption of the blockchain technology and cryptocurrencies. Vladimir Putin as well has pointed out cryptocurrency in his addresses, appealing to policymakers to cease in decelerating the development and advancement of new technologies. Yet, these alone couldn’t unite politics and cryptocurrency.

But, when politics and digital currencies come together, it will bring about either adoption and regulation or prohibition. Political figures could advocate the adoption of cryptocurrency; however it is essential they have a clear and working understanding of the concept of decentralization as well as the benefits of crypto and digital assets.

Cryptocurrency has an impact on the traditional system of finance, which is largely controlled and regulated by politics. Therefore, it’s but normal and expected that politicians and governments repudiate the benefits of crypto and blockchain, since they don’t wouldn’t like to lose that control over their economies. It is then necessary to regulate the usage of these digital currencies and assets for the benefit of everyone.