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Sunday, September 30, 2012

Financialization and the World Economy.

Published on Sep 30, 2012 by TheRealNews : Jerry Epstein - Financialization of the economy has been developing since the late 19th century and is now at historic Levels.

Tuesday, September 25, 2012

Quadrillion Dollar Derivatives Market 20 Times Global GDP.

Published on Sep 25, 2012 by TheRealNews : Markus Stanley - Derivative bets not a zero sum game, have far reaching real world consequences.

Sunday, September 23, 2012

Prof :Seize This Moment or Capitalism Will Not Be Cured!

Published on Sep 20, 2012 by ForaTv : Richard Wolff, Professor of Economics Emeritus and author of Democracy at Work: a Cure for Capitalism, urges the public to openly criticize and analyze capitalism at this time of financial crisis.

Friday, September 7, 2012

Scenarios on the Future of the International Monetary System

Published on Sep 7, 2012 by WorldEconomicForum : Euro, Dollar, Yuan uncertainties - Scenarios on the Future of the International Monetary system.

Tuesday, September 4, 2012

Austerity has never worked.

Prof. Ha-Joon Chang, Cambridge Uni.  |  The Guardian, Mon 4 Jun 2012

It's not just about the current economic environment. History shows that slashing budgets always leads to recession.

Last week saw a string of bad economic news reports. The eurozone leaders seem unwilling or unable to change from their austerity policies, even as Greece andSpain fall apart and the core eurozone economies contract. Britain watches on as its economy is heading for the third consecutive quarter of contraction, with an unexpectedly sharp fall in manufacturing. Last week's jobs figures confirmed that the US recovery is stuttering. The largest developing economies that have so far provided some support for world demand levels – especially India and Brazil but even China – are slowing down too. Four years after the financial crisis began, many rich capitalist economies have not recovered their pre-crisis output levels.
Even more serious is the unemployment problem. The International Labour Organisation estimates there are 60 million fewer people employed worldwide than if the pre-crisis trend had continued. In countries like Spain and Greece, overall jobless rates are approaching 25%, with youth unemployment over 50%. Even in countries experiencing "milder" unemployment problems, like the US and the UK, between 8% and 10% are out of work. If we include those who have given up looking for jobs or those who are forced to work part-time for want of fulltime opportunities, "real" unemployment could be easily over 15% even in these countries.
The remedies on offer are well known. Reduce budget deficits by cutting spending – especially "unproductive" social welfare spending that reduces growth by making poor people less willing to work. Cut taxes at the top and deregulate business (euphemistically called "cutting red tape") so that the "wealth creators" have greater incentives to invest and generate growth; and make hiring and firing easier.

Monday, September 3, 2012

India Rich vs. Poor

ploaded by krishnaallam on Jul 26, 2011 : Freedom to the prosperity, who benefited? Whose lost? What's the perspective?

Malaysia's Statutory Reserve Requirement (SRR)?

Everyone is buzzing about SRR lately, since Bank Negara Malaysia's statement which stated its intention to raise SRR in the near future. Actually, what is SRR? And, what is the effect of higher SRR imposed? Why BNM using SRR right now? Finance Malaysia hopes to clear everyone's doubt and would appreciate if you can share this out.

What is SRR?
Statury Reserve Requirement is a monetary policy instrument available to Bank Negara Malaysia (BNM) for the purposes of liquidity management. Effectively, banking institutions namely commercial banks, merchant/investment banks and Islamic banks are required to maintain balances in their Statutory Reserve Accounts (SRA) equivalent to a certain proportion of their eligible liabilities (EL), this proportion being the SRR rate.

Why BNM uses the SRR as its "tool"? 
Since SRR is available to BNM to manage liquidity and hence credit creation in the banking system, it was used to withdraw or inject liquidity when the excess or lack of liquidity in the banking system is perceived to be large and long-term in nature. Currently, BNM believes that our banking system is lack of liquidity, thus it may raised the SRR to "store" more money in banks.

Effective 1 March 2009, the SRR rate for banking institutions is 1% of EL. As of 1st September 2007, the EL base consists of ringgit denominated deposits and non-deposit liabilities, net of interbank assets and placements with BNM.

Previous adjustments to the SRR rate


China's reserve ratio (CRR) 20%

Chinese manufacturing hits three-year low

Published on Sep 3, 2012 by AlJazeeraEnglish : China's vast manufacturing sector has shrunk for a tenth straight month. Surveys by the government, and the banking giant HSBC, suggest China's manufacturing slowdown could be worse than first thought. Other figures show the non-manufacturing sector grew, but only slowly. That includes industries such as construction, air transport and telecommunications. Francis Lun, the general manager of Fulbright Securities, a financial group, in Hong Kong, says China's current leaders still have time to make economic changes before they are replaced in November.

Thailand's rice Cartel initiative?

Rice Payment Scheme Threatens Thailand's Status as World's Top Exporter

Published on Sep 3, 2012 by VOAvideo : Thailand is risking its status as the world's biggest rice exporter because of a controversial government-purchasing policy to boost farmers' incomes. VOA's Daniel Schearf reports that rice industry insiders say the costly program is inefficient and money would be better spent on long-term investment.

Thailand rice prices stir up debate
Published on Aug 24, 2012 by EnglishNewsToday : Thailand's governing Pheu Thai party won last year's election partly based on a promise to improve the income of rice farmers. The government introduced a scheme which currently pays them around 50 to 60 per cent more than market prices. The International Monetary Fund estimates that this could amount to $3.8bn, excluding the cost of storage. Despite the cost, the government says it will continue with the programme, because it has a duty to look after farmers. But not everyone agrees that the benefits are worth it.