A committee of economists are suggesting global reform should consider a global centralized bank. THe
Committee on International Economic Policy and Reform. IN light of the dismantled financial sector in the last 2000s the committee proposes:
…central banks should go beyond their traditional emphasis on low inflation to adopt an explicit goal of financial stability….we call for the creation of an International
Monetary Policy Committee composed of representatives of major central banks that will report
regularly to world leaders on the aggregate consequences of individual central bank policies.
Back to some behavioral economics. Thaler cites three stylized facts about horsetrack betting, they are as follows:
1. Most betters bring an amount of money that represents a small amount of their overall wealth. In terms of mental accounting, this money may represent the theory that money is non-fungible. Because they are not brining their whole wealth may be indicative of the portion of money associated with a specific label. For example, perhaps the money is thought of to carry utility in the form of entertainment. So instead of using this money to pay off debt, this money is strictly dedicated to entertainment, in this case betting.
Financial crisis seems to be the theme of the past five years. However, it is not impossible to avoid the type of money woes that seem to plague a lot of people. Whether you have just spent too much, have too much credit card debt, or sustained a job loss, there are ways to stay financially strong.
Budgeting is important for financial freedom. Having a plan for how much income goes toward bills and how much you will save can lead you to financial independence. Knowing how to budget is a great tool to help you live within your means. Continue reading this article »
As the price of gasoline tops four dollars a gallon in the US and 1.4 a liter in Canada, consumers who are driving less could save an average of 5 to 15 percent on their automobile insurance rates if they just phone their insurers.
That’s according to the Consumer Federation of America (CFA), which says that skyrocketing fuel costs could mean savings on automobile insurance as drivers react to high gas prices by using mass transportation, car-pooling, taking fewer trips to the store or curtailing their vacations.
Did you catch this opinion piece in the NY Times August 15th, 2011? On the heals of a Republican hold out to get everything they wanted in the debt ceiling debacle using the American people as ransom, Warren Buffet, one of the richest men in all the world, suggested it was time for the rich to give up more of their wealth for the sake of the greater good of the nation.
Q. What kind of policies would policy makers Central Bank (CB) consider with: an exchange rate system with a “fixed E system”, high export growth, a rise in inflow of capital in the past few years, a problem emerging with growth of exports are slowing down and most profitable opportunities are getting exhausted. Oh yea, and by the way there is an indication that capital flight is occurring?
The Republican hostage taking of the American economy in an effort to keep the rich richer has won out. Tea Party members must be thrilled, in the past year their ‘compromise’ has amounted to tax cuts and spending cuts galore.
And many economists will conclude that reducing government spending during times of economy downturn is the WORSE thing you could possibly do. But of course, don’t tell that to thick skulled Republicans.
…the G.O.P. has just demonstrated its willingness to risk financial collapse unless it gets everything its most extreme members want. Why expect it to be more reasonable in the next round?
…..how can American democracy work if whichever party is most prepared to be ruthless, to threaten the nation’s economic security, gets to dictate policy? And the answer is, maybe it can’t. – Krugman in NY Times
The debts have to paid at some point, and Republicans don’t seem to understand you can’t live your life on credit and are unwilling to accept a deal that doesn’t entirely represent their far right-wing conservative values. Democrats seem to forget that in order to curb debt you need to curb spending, even in the tough areas.
The sad part is both parties share the blame today when it was in fact 8 years of Republican era economics that erased the tiny surplus the Clinton administration was running prior. People forget about that and will hopefully think really hard come election time who was really responsible for this absolute debacle.
For those who need a refresher the debt ceiling is a cap on the amount of securities the Treasury can issue. The Treasury will issue, for example, short term bills to raise money to pay for government expenses.
Some will say raising the ceiling doesn’t impact past expenses, but the capability of paying for future ones. Others highlight the perpetual cycle of debt accumulation that will inevitably cripple the US economy. Here’s what economists are saying:
We are re-posting this popular article about the foreign currency and the devaluation and revaluation systems. After all, what’s the point of trying to predict foreign exchange markets (FOREX) if you don’t even know how the market moves and reacts to change? The world’s largest market that is open 24 hours does react to certain changes and you need to know how to watch and interpret these movements. Why let some third-party web application make predictions for you when you can do the work yourself?
