Guyrice Finance Blog
Rabu, 07 November 2012
Import more money?
They say that the "love of money is the root of all evil". So many people misinterpret as "money is the root of all evil". But what matters most is where the heart is, at the end of the day. Is the heart of the Annals of moneymaking or is where it should be, going through the necessary disciplines in life before arriving finally at the end where rewards tarry long enough to enjoy the fullness.
Life is not all about making money. One must understand that while most people think that money makes the world go round, it is not enough, the only answer to the needs of life. There are many instances in life where money doesn't fill the void that many people struggle with. If money is the answer to the most pressing questions of life, so most of the richest men and women of the world should have not been pressing for divorce cases and custody cases against each other. If money is the answer to everyone's needs, then today's celebrity was supposed to be the ones with happier marriages. If money can buy peace and happiness, and the vastness of the homes of millionaires and billionaires would have been filled with laughter conspicuous of their children, enjoying an almost heavenly atmosphere from their billions or million in the Bank.
But as it closes at the end of the day, the fact remains, that life has not been bought by money and that most of the essential elements of life cannot be bought by money. Here are insights that can show what most Americans value alive, according to polls.
1. health is the greatest achievement of his life, if the richest or the poorest, is the first target. As the saying goes, "man working to save money to save their health". According to a survey, Americans consider their greatest wealth health. There is truth to the adage that says "health is wealth," after all.
2. is absolute Joy, happiness is relative. Joy and happiness are two different concepts that are often used interchangeably. The joy is in fact a State to have peace in the midst of what is going on. Happiness is an emotional state when good things happen. In other words, one can be happy when good morning pouring and cannot be so when problems start coming. Joy on the other hand, is a result of peace even when no good seems to be underway. Keep the balance even with storms of life their bombardment from all angles.
3. money is not the answer. Most of today's concerns in life are related to money. Money brings the food on the table. Money pays the Bills. Money makes the mortgage ends meet. Money makes a long list of things. But talk to the cancer patient who is in pain all day and ask him if his money took away the pain. Talk to the abuser who used to have a privileged life, but now is imprisoned in her do that can't be undone. Talk to the suffering mother whose husband lives with another woman and built a Palace for her expensive as you.
These are some of the things that money can't buy. While its true that money moved to Earth to heights never seen coming, the use of money is the factor that makes the difference. The proper use of the money fueling hunger and gives shelter to the homeless. The wise use of money Send poor children to school and open doors for them to live a good life. So, at the end of the day, it's worth saying: "use money and love people?" The answer is in your hands.
Jumat, 19 Oktober 2012
Bailouts are only for big banks!
To date, the bailouts have been used to address the crisis. However, as noted, a lot of money from the taxpayers involved are usually offered to older players. For the recent crisis, were granted to larger banks. Now let's analyze why and how they benefit from large banks.
In 2008, when Bush authorized the bailout of u.s. $ 700 billion, Treasury Secretary Henry Paulson (formerly of Goldman Sachs) immediately gave billions of TARP (Troubled Asset Relief Program) for large banks. Here, money flowed from the taxpayers to the organizations that caused the disaster. Many bailout recipient refused to explain the use of money and loans fell despite the fact that it should increase.
Regarding this, there are several reasons why the bailouts are only for large banks. Among them, believe one of them to be the key to bailouts and that would deposit insurance. Deposit insurance is basically a policy that guarantees savings of Americans, helping to prevent the executions of savings bank is withdrawn on a large scale.
Increase deposit insurance helps to increase confidence, giving investors a sense of security which did not lose their money. However, this also rewards banks to take more risks, because if savings are insured by the Government, the banks will be paid when you make mistakes, as they know that the Government will grant them bail-outs. As a result, bankers get saved to take risks while taxpayers pay more money to finance these bailouts not for their benefit. Most risks bankers commit more money they get for bailouts. So, if you're a banker, you will want to take more risks?
Here, many may think that all the big banks have received bailout money. However, the truth is that only banks with political clout. This is because they can influence politicians to give them what they want. Governed by a corrupt system, win big banks with political clout and this situation is very similar to Russia that was devastated by its oligarchs.
To add, the big banks taking bigger risks usually, the highest chance of damaging the economy. So even if politicians are not willing to grant them bail-outs, they must do so for the sake of the economy. With the Government having no choice but to make do you think you can depend on to save?
We shall now proceed to inquire how rescue big banks benefit, in the United States, if a smaller Bank goes bust, the FDIC (Federal Deposit Insurance Corporation) uses the payout by closing the Bank, paying depositors while the founder and investors lose their money in start-up capital. This will allow big banks to acquire more market shares, using the cash to rescue as many banks available now falls.
In addition, a sell-off can occur where a large U.S. Bank bailout money to buy a bank that is struggling to increase its market share, allowing it to charge higher fees in the future and despite the creation of a financial crisis. Here, the incompetent gets rewarded while the little fish gets crushed with the advent of each new crisis.
So to conclude, with bailouts for big banks, we get more and more disadvantaged with every rescue because it forces the poor to pay the rich through taxes. With this, we have to protect our money from financial predators and leverage our resources to create more wealth.
Kamis, 22 Maret 2012
Signs of an impending disaster
Today, there were many similar characteristics with previous troughs. However, when we think of depression, there are 2 types. One of them is the American depression in 1929, while the other is that German after World War II. Now we analyze if the impending disaster that we will face is the American or German type and why is happening.
Now, first we'll look at the backgrounds for the 2 types of depressions. For depression there, occurred because of deflation as the dollar back then was backed by gold and silver. Having received money, the amount of money in circulation was limited, as was to be proportionate to the amount of gold and silver reserves held in the crypt of the Treasury. For this reason, money back then were real money as the u.s. Government could not print too much of it legally, having the need to consider the amounts of reserves held. With this, the money supply remained relatively constant and when consumption fell (being the demand of money), deflation occurred naturally.
For German, depression occurred because of hyperinflation as the Reichsmark was printed back in droves to pay bills of war of Germany. The post-war increase in purchasing power severely diluted by money supply of Reichsmark to involve extremely high inflation as more money chasing the same amount of goods. This broke the bubble for Germany's debt, unleashing the destructive forces of debt that broke its economy apart.
About 2 types of depressions mentioned, I think the next depression has similar features to that of the German model. Now, you'll learn why the next disaster coming have similarity with German's depression.
As many of you know, the formation of the Federal Reserve in 1913 has brought a revolutionary change in the history of finance. Dig deeper, Paul Warburg (one of the founders of the Federal Reserve) had a brother called Max Warburg that it was financial adviser to the German Kaiser. During that time, Warburg was thought to have an elastic money supply that could be modified to meet the needs of business. This thought has led to inflation, but has proven to be flawed as it led to depression, with Max Warburg who flee the Germany in 1938.
However, despite this, the Federal Reserve system has remained unchanged, plant the seeds for the new depression tomorrow. What is in the United States today will have inflationary effects similar to Germany then where income tax is used to pay interest to the Federal Reserve, who in turn buy more titles to print money (to collect more interest). With large purchases of U.S. securities, the money supply has increased drastically, leading to higher inflation. This is a scenario of taxing the poor to pay the rich and goes on for nearly a century.
To add, the implementation of such quantitative easing policy is basically similar to the German depression where the Government of the United States today simply prints debt to pay the debt. The result is a debt bubble that will burst at the end when the economy becomes overloaded. Be it for the German economy, stressed from debt to pay their bills, there will be hyperinflation and a new string of events that lie ahead.
To add, US President Franklin D. Roosevelt forced the Americans to hand over their gold for u.s. $ 20.22/oz in 1933. Subsequently, he jacked the price of gold at US $ 35/oz, cheat US Americans $ 15/oz. This was done to acclimatize audiences to the use of paper money as the single currency and the fact that we printed too much money without enough gold reserves to the world.
To date, this policy has worked out its magic, as most people are quite accustomed to the printed money. To make matters worse, with the invention of the credit card in 1951, money has become more digitized and now it's easier to get into debt than before. With the ease of running into debt, banking debt has increased from 21% in 1980 to 116% of GDP in 2007 and this number still grows today. Fostering the growth of a bubble of debt of the United States calls on inflation to destroy the economy.
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