Saturday, September 10, 2011
Google Ranking Secrets
Video 1 of a Series of 4 - Discover The Secrets of High Ranking Websites. Make sure you buy a Small Business Website with a GUARANTEED Top 30 Google Ranking. Worldwide Small Business Websites from a Gold Coast web designer with an integrated Gold Coast SEO Division.
Obama's jobs speech
Obama's jobs speech
A call to action
AS JOB growth has ground to a halt and stock markets have swooned, the outlook for both the American economy and Barack Obama’s presidency has dimmed. The jobs package he unveiled in a much anticipated speech before Congress on September 8th was a calculated attempt to resuscitate both. His “American Jobs Act” consists of a hefty $447 billion worth (roughly 3% of GDP) of new and renewed tax cuts and spending that, he hopes, will prevent a fiscal vice from pushing the economy into recession early next year. Its provisions were carefully chosen to stimulate job growth immediately while maximising the political price Republicans will pay to obstruct it.
Mr Obama proposed not only extending a 2% payroll-tax cut scheduled to expire in December, but increasing it to 3.1%—half the employee’s normal contribution to Social Security. He also called for an equivalent 3.1% cut in the employer’s payroll tax for the first $5m of payroll, and elimination of the entire 6.2% tax on the wages of new hires or on pay raises for current employees. At $240 billion, those provisions account for more than half the plan’s price tag.He also wants to keep extended unemployment insurance benefits rather than let them expire in December while offering states flexibility to use the plan to encourage the unemployed to return to work. That could involve work sharing, which Germany used effectively to spread the decline in economic output across working hours rather than head count; letting the unemployed collect benefits while training or doing volunteer work; and wage insurance, which subsidises the wages of people whose new job pays less than their old. That would be a welcome shift for America’s safety net which spends too much on income support and too little reintegrating the jobless into the labour market. Still, the sums are small relative to the scope of the problem.
At $140 billion the bulk of the remaining money would be funnelled into public works and state aid. Mr Obama would send $25 billion to state and local governments to refurbish 35,000 schools and $35 billion to keep teachers, police and firefighters employed. Another $50 billion would go to immediate investments in highways and public transport, and $10 billion for an infrastructure bank that would try to leverage private capital for public works. While such spending has a relatively high impact on the economy, it has proven difficult to find projects that are both “shovel-ready” and worth doing.
Prevention of a double-dip into recession is the president's priority. In February, his budget office predicted the economy would grow by 3% this year. Serial disappointments forced the White House to downgrade that to just 1.6% last month. Meanwhile, the fading impact of his original $825 billion stimulus and the expiration of $200 billion more in support added last December threaten to knock 2% from gross domestic product next year. Furthermore, tax collections have risen more than expected this year, which represents a further unanticipated fiscal tightening. Unaddressed, those factors could move the economy into recession, if it isn’t there already. A senior administration official predicted that Mr Obama’s plan, if fully enacted, would result in fiscal policy being roughly neutral, rather than a drag, next year.
The president sought to make it as difficult as possible for Republicans to obstruct his plans by ensuring each of his proposals had some Republican parentage. For example, the infrastructure bank is modelled on a measure proposed by John Kerry and Kay Bailey Hutchison, Democratic and Republican senators respectively. The US Chamber of Commerce, a fierce opponent of much of Mr Obama’s agenda, has been a vocal advocate of more infrastructure spending. The use of unemployment benefits to retrain the jobless is based on a Georgia programme that Republicans have praised.
Nonetheless, there are limits on Mr Obama’s appetite and freedom to compromise. His liberal backers threatened to desert him as he repeatedly caved in to Republicans, extending George Bush’s tax cuts for the wealthy, agreeing to steep spending cuts in return for an increase in the debt ceiling, and just last week delaying new smog rules. His language and tone tonight were combative, at times hectoring. Noting how many Republicans have pledged never to raise taxes, he said, “Now is not the time to carve out an exception and raise middle class taxes. Which is why you should pass this bill right away.”
Republicans have branded Mr Obama’s previous stimulus a failure and have little vested interest in passing anything that helps him get re-elected. However, their calculus may be shifting. Congress’ approval ratings have fallen further than Mr Obama’s. Republicans paid a price for dragging the country to the brink of default in August in an effort to force Mr Obama to accept bigger spending cuts. A Wall Street Journal/NBC poll found voters blame Republicans more than Mr Obama for Standard & Poor’s subsequent decision to downgrade the country’s credit rating. This means they cannot afford to appear obstructionist, and indeed in recent days have begun sounding more conciliatory, promising to seek common ground with Mr Obama. John Boehner, speaker in the House of Representatives, politely said that Mr Obama’s ideas “merit consideration”.
This, however, is a far cry from support. The most contentious element may be how to pay for the plan. Mr Obama promises it will not add to the deficit. Rather than specify offsetting spending cuts or tax increases, though, he proposed that Congress’s “super committee”, created under last month’s debt ceiling deal, come up with the money. Under that deal, a bipartisan committee has until November 23rd to find up to $1.5 trillion in deficit reductions over the coming decade to add to the roughly $900 billion in spending cuts already enacted under the debt deal. Congress then has until December 23rd to pass them. If they fail, then automatic spending cuts of $1.2 trillion kick in. Mr Obama proposed amending the deal to increase both the committee’s target and the automatic triggers by the same amount as the stimulus.
The committee’s task of finding common ground among its Democratic and Republican members is hard enough. After its first meeting, the morning before Mr Obama’s speech, John Kyl, a Republican senator, threatened to quit if defence spending were touched. Jeb Hensarling, the panel’s Republican co-chairman, said Mr Obama's plan makes the “already arduous challenge of finding bipartisan agreement on deficit reduction nearly impossible”.
Most likely, Republicans will cherry pick and pass the parts they like, such as free-trade deals. Administration officials put the odds of passing the proposed tax cuts at better than 50% but are less confident on the spending provisions.
Mr Obama said that he will send more comprehensive ideas on tax and entitlement reform, including tweaks to Medicare, to the super committee in coming days. They will produce, he said, a primary budget surplus (that is, excluding interest payments). That’s not as ambitious as it sounds: his latest budget already envisions a primary surplus by 2017. That, of course, relies on the scheduled expiration of tax cuts on the rich and elimination of some corporate tax breaks, which Republicans seem likely to reject. Mr Obama reiterated his intent to press for higher taxes, averring, “This is not class warfare, this is simple math.” He was met by disbelieving murmurs. Nonetheless, the super committee may be the last chance before 2013 for Mr Obama and Republicans to reach some kind of grand bargain that cuts the deficit by reforming both taxes and entitlements. The panel’s proposal can’t be amended or filibustered in the senate, so it is uniquely suited for something so ambitious and contentious.
Throughout his speech Mr Obama tried to impress a sense of urgency upon his listeners. “Some of you have decided that our differences are so great that we can only resolve them at the ballot box. But the next election is 14 months away. The people who sent us here … don’t have the luxury of waiting 14 months.” But the odds that Mr Obama and Republicans can overcome their gaping differences in less than three months seem long indeed.
Angst for the educated
Angst for the educated
MILLIONS of school-leavers in the rich world are about to bid a tearful goodbye to their parents and start a new life at university. Some are inspired by a pure love of learning. But most also believe that spending three or four years at university—and accumulating huge debts in the process—will boost their chances of landing a well-paid and secure job.
Their elders have always told them that education is the best way to equip themselves to thrive in a globalised world. Blue-collar workers will see their jobs offshored and automated, the familiar argument goes. School dropouts will have to cope with a life of cash-strapped insecurity. But the graduate elite will have the world at its feet. There is some evidence to support this view. A recent study from Georgetown University’s Centre on Education and the Workforce argues that “obtaining a post-secondary credential is almost always worth it.” Educational qualifications are tightly correlated with earnings: an American with a professional degree can expect to pocket $3.6m over a lifetime; one with merely a high-school diploma can expect only $1.3m. The gap between more- and less-educated earners may be widening. A study in 2002 found that someone with a bachelor’s degree could expect to earn 75% more over a lifetime than someone with only a high-school diploma. Today the premium is even higher.
But is the past a reliable guide to the future? Or are we at the beginning of a new phase in the relationship between jobs and education? There are good reasons for thinking that old patterns are about to change—and that the current recession-driven downturn in the demand for Western graduates will morph into something structural. The gale of creative destruction that has shaken so many blue-collar workers over the past few decades is beginning to shake the cognitive elite as well.
The supply of university graduates is increasing rapidly. The Chronicle of Higher Education calculates that between 1990 and 2007 the number of students going to university increased by 22% in North America, 74% in Europe, 144% in Latin America and 203% in Asia. In 2007 150m people attended university around the world, including 70m in Asia. Emerging economies—especially China—are pouring resources into building universities that can compete with the elite of America and Europe. They are also producing professional-services firms such as Tata Consulting Services and Infosys that take fresh graduates and turn them into world-class computer programmers and consultants. The best and the brightest of the rich world must increasingly compete with the best and the brightest from poorer countries who are willing to work harder for less money.
At the same time, the demand for educated labour is being reconfigured by technology, in much the same way that the demand for agricultural labour was reconfigured in the 19th century and that for factory labour in the 20th. Computers can not only perform repetitive mental tasks much faster than human beings. They can also empower amateurs to do what professionals once did: why hire a flesh-and-blood accountant to complete your tax return when Turbotax (a software package) will do the job at a fraction of the cost? And the variety of jobs that computers can do is multiplying as programmers teach them to deal with tone and linguistic ambiguity.
Several economists, including Paul Krugman, have begun to argue that post-industrial societies will be characterised not by a relentless rise in demand for the educated but by a great “hollowing out”, as mid-level jobs are destroyed by smart machines and high-level job growth slows. David Autor, of the Massachusetts Institute of Technology (MIT), points out that the main effect of automation in the computer era is not that it destroys blue-collar jobs but that it destroys any job that can be reduced to a routine. Alan Blinder, of Princeton University, argues that the jobs graduates have traditionally performed are if anything more “offshorable” than low-wage ones. A plumber or lorry-driver’s job cannot be outsourced to India. A computer programmer’s can.
A university education is still a prerequisite for entering some of the great guilds, such as medicine, law and academia, that provide secure and well-paying jobs. Over the 20th century these guilds did a wonderful job of raising barriers to entry—sometimes for good reasons (nobody wants to be operated on by a barber) and sometimes for self-interested ones. But these guilds are beginning to buckle. Newspapers are fighting a losing battle with the blogosphere. Universities are replacing tenure-track professors with non-tenured staff. Law firms are contracting out routine work such as “discovery” (digging up documents relevant to a lawsuit) to computerised-search specialists such as Blackstone Discovery. Even doctors are threatened, as patients find advice online and treatment in Walmart’s new health centres.
Dreaming spires, meet pin factory
Thomas Malone of MIT argues that these changes—automation, globalisation and deregulation—may be part of a bigger change: the application of the division of labour to brain-work. Just as Adam Smith’s factory managers broke the production of pins into 18 components, so companies are increasingly breaking the production of brain-work into ever tinier slices. TopCoder chops up IT projects into bite-sized chunks and then serves them up to a worldwide workforce of freelance coders.
These changes will undoubtedly improve the productivity of brain-workers. They will allow consumers to sidestep the professional guilds that have extracted high rents for their services. And they will empower many brain-workers to focus on what they are best at and contract out more tedious tasks to others. But the reconfiguration of brain-work will also make life far less cosy and predictable for the next generation of graduates.
MILLIONS of school-leavers in the rich world are about to bid a tearful goodbye to their parents and start a new life at university. Some are inspired by a pure love of learning. But most also believe that spending three or four years at university—and accumulating huge debts in the process—will boost their chances of landing a well-paid and secure job.
Their elders have always told them that education is the best way to equip themselves to thrive in a globalised world. Blue-collar workers will see their jobs offshored and automated, the familiar argument goes. School dropouts will have to cope with a life of cash-strapped insecurity. But the graduate elite will have the world at its feet. There is some evidence to support this view. A recent study from Georgetown University’s Centre on Education and the Workforce argues that “obtaining a post-secondary credential is almost always worth it.” Educational qualifications are tightly correlated with earnings: an American with a professional degree can expect to pocket $3.6m over a lifetime; one with merely a high-school diploma can expect only $1.3m. The gap between more- and less-educated earners may be widening. A study in 2002 found that someone with a bachelor’s degree could expect to earn 75% more over a lifetime than someone with only a high-school diploma. Today the premium is even higher.
But is the past a reliable guide to the future? Or are we at the beginning of a new phase in the relationship between jobs and education? There are good reasons for thinking that old patterns are about to change—and that the current recession-driven downturn in the demand for Western graduates will morph into something structural. The gale of creative destruction that has shaken so many blue-collar workers over the past few decades is beginning to shake the cognitive elite as well.
The supply of university graduates is increasing rapidly. The Chronicle of Higher Education calculates that between 1990 and 2007 the number of students going to university increased by 22% in North America, 74% in Europe, 144% in Latin America and 203% in Asia. In 2007 150m people attended university around the world, including 70m in Asia. Emerging economies—especially China—are pouring resources into building universities that can compete with the elite of America and Europe. They are also producing professional-services firms such as Tata Consulting Services and Infosys that take fresh graduates and turn them into world-class computer programmers and consultants. The best and the brightest of the rich world must increasingly compete with the best and the brightest from poorer countries who are willing to work harder for less money.
At the same time, the demand for educated labour is being reconfigured by technology, in much the same way that the demand for agricultural labour was reconfigured in the 19th century and that for factory labour in the 20th. Computers can not only perform repetitive mental tasks much faster than human beings. They can also empower amateurs to do what professionals once did: why hire a flesh-and-blood accountant to complete your tax return when Turbotax (a software package) will do the job at a fraction of the cost? And the variety of jobs that computers can do is multiplying as programmers teach them to deal with tone and linguistic ambiguity.
Several economists, including Paul Krugman, have begun to argue that post-industrial societies will be characterised not by a relentless rise in demand for the educated but by a great “hollowing out”, as mid-level jobs are destroyed by smart machines and high-level job growth slows. David Autor, of the Massachusetts Institute of Technology (MIT), points out that the main effect of automation in the computer era is not that it destroys blue-collar jobs but that it destroys any job that can be reduced to a routine. Alan Blinder, of Princeton University, argues that the jobs graduates have traditionally performed are if anything more “offshorable” than low-wage ones. A plumber or lorry-driver’s job cannot be outsourced to India. A computer programmer’s can.
A university education is still a prerequisite for entering some of the great guilds, such as medicine, law and academia, that provide secure and well-paying jobs. Over the 20th century these guilds did a wonderful job of raising barriers to entry—sometimes for good reasons (nobody wants to be operated on by a barber) and sometimes for self-interested ones. But these guilds are beginning to buckle. Newspapers are fighting a losing battle with the blogosphere. Universities are replacing tenure-track professors with non-tenured staff. Law firms are contracting out routine work such as “discovery” (digging up documents relevant to a lawsuit) to computerised-search specialists such as Blackstone Discovery. Even doctors are threatened, as patients find advice online and treatment in Walmart’s new health centres.
Dreaming spires, meet pin factory
Thomas Malone of MIT argues that these changes—automation, globalisation and deregulation—may be part of a bigger change: the application of the division of labour to brain-work. Just as Adam Smith’s factory managers broke the production of pins into 18 components, so companies are increasingly breaking the production of brain-work into ever tinier slices. TopCoder chops up IT projects into bite-sized chunks and then serves them up to a worldwide workforce of freelance coders.
These changes will undoubtedly improve the productivity of brain-workers. They will allow consumers to sidestep the professional guilds that have extracted high rents for their services. And they will empower many brain-workers to focus on what they are best at and contract out more tedious tasks to others. But the reconfiguration of brain-work will also make life far less cosy and predictable for the next generation of graduates.
Hire retail security guard to run business safely!
Hire retail security guard to run business safely!
If you want to secure your shop against increasing incidents like thefts and robberies then you must hire retail security guard either in uniform or plain clothes. Security guarding helps a retail shop owner to run his shop safely because a security guard keeps an eye on each and every activity of customers. People who are afraid of shop lifters must approach a professional guard for reducing the possibility of such incidents as far as possible.Are you afraid of shop lifters? If yes, then you must make some arrangements for the safety of your business. There are a number of professional companies which offer the services of talented and skillful security guards who keep an eye over all the activities performed by the customers as well as other workers engaged in the concerned shop.
Security guarding is a service which is offered by different professionals to safeguard the life of people along with their belongings. In present scenario, incidents like thefts and robberies on retail shops have become common and occur after every hour. In order to avoid the occurrence of such acts shopkeepers generally prefer to hire retail security guard. It depends upon the need and preferences of shopkeepers that they want to go for uniformed security guards or one who wear plain clothes.
People who prefer to hire uniformed security guard actually want visitors or customers to realize that their each and every activity is being watched over by these professionals so that they do not try to commit any kind of crime in the shop. Some people ask their guards to wear plain and casual clothes because they do not want people to know that there is somebody who can catch you while committing acts like theft and robbery. They also protect the life of shop keepers against criminals who come to take away all the precious stock, money and harm the lives of people present there.
If you are finding it difficult to approach desired security guards then you must take the help of internet facility and search over the websites of companies, engaged in offering such kind of services. People feel afraid to open their own shops due to the occurrence of crimes at a large scale so hiring the services of security guards would be beneficial for them.
So, protect your lives and shops against thefts and robberies with the help of professional security guards!
Tuesday, July 19, 2011
SEO & SMO- Two effective online marketing practices!
SEO & SMO- Two effective online marketing practices!
LED Lighting Industry Chain Will Grow Perfect in Crisis
LED Lighting Industry Chain Will Grow Perfect in Crisis
As governments around the world in green energy-saving environmental protection reached a consensus on the future with green energy-related industries brightest prospects. At present, despite the global economic crisis has no clear sign of abating, but the Chinese government's encouragement, the Chinese LED lighting industry is rapidly taking heat, called in 2009 for the LED lighting the first year, the Chinese LED lighting industry chain will be in this economic crisis rapid growth and improvement.
First, the government vigorously promote LED lighting industry.Looking at the global market, government subsidies to promote industrial development in Examples abound, such as solar power in Germany spread to every family is a good example of success. Today our government's 21 City 10 000 LED lights plan is one in the sub-prime crisis to stimulate domestic demand and expansion of the world's largest market, a good way! In 2009 the Chinese government to stimulate domestic demand to carry out "10 City 10 000" LED lighting and energy saving popular sports, and today has a clear LED in 21 cities to develop according to each towns to more than 10,000 LED lights, street lamps and 24 hours of continuous country use The tunnel lights became the focus of the first replacement project, Beijing, Shanghai, Guangzhou, Shenzhen Metro has started universal LED fluorescent lamp energy saving projects.
Therefore, the LED lighting market is further expanded and spread to the world to bring LED lighting industry, technology and production capacity to the depth of the development of high technology, created a number of emerging LED lighting industry chain enterprises, create new employment opportunities.So far the central government has made it clear there are 21 major cities nationwide to enter "10 City 10 000" program, which will drive the rapid development of China's LED lighting industry, LED industry in our country, the middle and lower reaches of the rapid expansion of domestic demand growth to LED lighting technology industry chain have access to all relevant practical application of quality improvement and new development so that people across the country can have on the personal experience of LED lighting knowledge, help a few years LED lighting into the 1000 million Massive demand for users, enabling China to become the world's largest production base for LED lighting, the same time, China is the largest market for LED lighting.
This effect will continue five or ten years, until the birth of the next generation lighting technology. Currently in South China, East China, North China has seen vigorous development of LED lighting industry, allows us to see the spring, LED green lighting as six or seven o'clock in the morning sun rising.In the "City 10000 10" schemes, there is a LED components must meet the provisions of 6 percent, which is a good measure, we should work to have a responsibility to vigorously improve the LED lighting system, localization rate, we should encourage China's national enterprises, and our engineers strive to LED lighting, LED driver IC, modern style lamps, optical design, thermal systems. . .
Have achieved world-class level. Taiwan's LED industry, technology has been taking the forefront in the world, so we should be made in the domestic concept of Greater China, should include Taiwan, Hong Kong, Macao products and technologies in three areas. Domestic enterprises should actively introduce advanced Western and Japanese LED technology, and should promote more use of domestic products, particularly Taiwan, Hong Kong technologically advanced LED-related products, as far as possible use of our resources, spare parts, as far as products to improve localization rate, Chinese-made LED lighting contribute more to global marketing.
Second, the subprime crisis have an impact on the LED lighting industry? Sub-prime crisis on the impact of LED lighting industry is not large, because the global LED lighting industry and are just step into Kai, LED lighting is still further perfected various techniques, LED lighting lamps and lanterns have not yet entered high-volume production stage, LED light source also working to improve the brightness, LED constant current driver IC are also working to improve accuracy and expand the range of input voltage, LED lighting system design are also working to address the efficiency of heat and light. . .
The Chinese government is promoting the 21 city 10 000 LED lights project will certainly lead the LED lighting industry chain of China's development, China's LED lighting technology will be to the world summit, creating a large number of LED lighting industry chain enterprises, expansion of employment, there China's electronics industry will help bring out the shadow of the financial crisis. LED green lighting the mass market and a steady increase in demand will trigger a few years, the consumer electronics market, has a super-tsunami!
As governments around the world in green energy-saving environmental protection reached a consensus on the future with green energy-related industries brightest prospects. At present, despite the global economic crisis has no clear sign of abating, but the Chinese government's encouragement, the Chinese LED lighting industry is rapidly taking heat, called in 2009 for the LED lighting the first year, the Chinese LED lighting industry chain will be in this economic crisis rapid growth and improvement.
First, the government vigorously promote LED lighting industry.Looking at the global market, government subsidies to promote industrial development in Examples abound, such as solar power in Germany spread to every family is a good example of success. Today our government's 21 City 10 000 LED lights plan is one in the sub-prime crisis to stimulate domestic demand and expansion of the world's largest market, a good way! In 2009 the Chinese government to stimulate domestic demand to carry out "10 City 10 000" LED lighting and energy saving popular sports, and today has a clear LED in 21 cities to develop according to each towns to more than 10,000 LED lights, street lamps and 24 hours of continuous country use The tunnel lights became the focus of the first replacement project, Beijing, Shanghai, Guangzhou, Shenzhen Metro has started universal LED fluorescent lamp energy saving projects.
Therefore, the LED lighting market is further expanded and spread to the world to bring LED lighting industry, technology and production capacity to the depth of the development of high technology, created a number of emerging LED lighting industry chain enterprises, create new employment opportunities.So far the central government has made it clear there are 21 major cities nationwide to enter "10 City 10 000" program, which will drive the rapid development of China's LED lighting industry, LED industry in our country, the middle and lower reaches of the rapid expansion of domestic demand growth to LED lighting technology industry chain have access to all relevant practical application of quality improvement and new development so that people across the country can have on the personal experience of LED lighting knowledge, help a few years LED lighting into the 1000 million Massive demand for users, enabling China to become the world's largest production base for LED lighting, the same time, China is the largest market for LED lighting.
This effect will continue five or ten years, until the birth of the next generation lighting technology. Currently in South China, East China, North China has seen vigorous development of LED lighting industry, allows us to see the spring, LED green lighting as six or seven o'clock in the morning sun rising.In the "City 10000 10" schemes, there is a LED components must meet the provisions of 6 percent, which is a good measure, we should work to have a responsibility to vigorously improve the LED lighting system, localization rate, we should encourage China's national enterprises, and our engineers strive to LED lighting, LED driver IC, modern style lamps, optical design, thermal systems. . .
Have achieved world-class level. Taiwan's LED industry, technology has been taking the forefront in the world, so we should be made in the domestic concept of Greater China, should include Taiwan, Hong Kong, Macao products and technologies in three areas. Domestic enterprises should actively introduce advanced Western and Japanese LED technology, and should promote more use of domestic products, particularly Taiwan, Hong Kong technologically advanced LED-related products, as far as possible use of our resources, spare parts, as far as products to improve localization rate, Chinese-made LED lighting contribute more to global marketing.
Second, the subprime crisis have an impact on the LED lighting industry? Sub-prime crisis on the impact of LED lighting industry is not large, because the global LED lighting industry and are just step into Kai, LED lighting is still further perfected various techniques, LED lighting lamps and lanterns have not yet entered high-volume production stage, LED light source also working to improve the brightness, LED constant current driver IC are also working to improve accuracy and expand the range of input voltage, LED lighting system design are also working to address the efficiency of heat and light. . .
The Chinese government is promoting the 21 city 10 000 LED lights project will certainly lead the LED lighting industry chain of China's development, China's LED lighting technology will be to the world summit, creating a large number of LED lighting industry chain enterprises, expansion of employment, there China's electronics industry will help bring out the shadow of the financial crisis. LED green lighting the mass market and a steady increase in demand will trigger a few years, the consumer electronics market, has a super-tsunami!
Innovation in Japan : Samurai go soft
Innovation in Japan : Samurai go soft
Japan’s preference for hardware over software is fading
“A SAMURAI would never write software!” barked a senior executive at one of Japan’s biggest electronics firms, as drinks flowed at a dinner party. His view is widely held in Japan. Monozukuri (making things) is macho. From sword-forging in feudal times to machines and microchips today, real men toil tirelessly to make things you can see. Services are for sissies.
But like the traditional samurai hairstyle (shaved pate and topknot), such attitudes are looking increasingly out of date. Writing business software is now a growing business in Japan. The country’s large electronics companies are buying into the sector. Even foreign companies are coming to Japan in search of programming talent.
Software firms typically make fatter profit margins than hardware firms. The best ones easily hit 30%; electronics firms struggle to reach 5%. The software business needs fewer people and less capital; handy for a country with a shrinking population and tight-fisted banks. Jobs at big electronics firms are scarce, and the work is sometimes boring. Small wonder that Japan’s young, creative engineers are getting in touch with their inner sissy.
Japanese code has tended to be inferior, says William Saito, an entrepreneur who sold his software company to Microsoft years ago. This is because it mirrored the shortcomings of Japan’s business culture: it was written in a hierarchical way that outsiders would have trouble building on, when the trend in America and Europe was exactly the opposite.
A transition is under way, however. Firms such as Rakuten, an online shopping mall, and DeNA, a developer of games for mobile devices, have reached global prominence. So has Trend Micro, a big security software firm. Small companies are succeeding too, such as Cybozu, which makes collaboration software. And Japan has begun filing international software-related patents galore (see chart). Only America files more.
An example of Japan’s shift to software is Ruby, a programming language that undergirds big websites such as those of Twitter and Groupon. It was created in Japan by Yukihiro Matsumoto, and counts 1m developers around the world. Marc Benioff, the boss of Salesforce.com, a large “cloud computing” firm in Silicon Valley, sees opportunities everywhere in Japan. Over the past year the company paid $212m for Heroku, which develops web services based on Ruby, and acquired stakes in Synergy Marketing, Uhuru and Netyear, three business-software firms.
Old hardware companies want a slice of the software sashimi. Most are looking abroad. On July 1st NTT, Japan’s incumbent telecoms operator, said it would acquire OpSource, a cloud-computing software firm in California, for $90m through its South African software subsidiary, Dimension Data, which NTT acquired last year for $3.3 billion. Hitachi and Toshiba are hunting for software firms, too. Fujitsu, a big hardware firm, already gets two-thirds of its revenue and nearly all its profits from software and services.
Japan’s indigenous software industry faces several obstacles. The country lacks venture capital, a vibrant stockmarket and angel investors with technical knowledge to nurture start-ups. And its big, slow firms tend to suffocate the small fry, says Fujiyo Ishiguro, the founder of Netyear, an online-marketing software firm (and one of the few female bosses of a publicly-listed company in Japan).
For now, hardware is king. Newspapers cheered when Riken and Fujitsu unveiled the world’s fastest supercomputer in June. But the shift towards the intangible is inevitable, says Ms Ishiguro. Japan’s sissies are tougher than they look.
Japan’s preference for hardware over software is fading
But like the traditional samurai hairstyle (shaved pate and topknot), such attitudes are looking increasingly out of date. Writing business software is now a growing business in Japan. The country’s large electronics companies are buying into the sector. Even foreign companies are coming to Japan in search of programming talent.
Software firms typically make fatter profit margins than hardware firms. The best ones easily hit 30%; electronics firms struggle to reach 5%. The software business needs fewer people and less capital; handy for a country with a shrinking population and tight-fisted banks. Jobs at big electronics firms are scarce, and the work is sometimes boring. Small wonder that Japan’s young, creative engineers are getting in touch with their inner sissy.
Japan has long made popular video-game software—just ask the Mario Brothers. Yet its computer makers have done little to foster independent software businesses. On the contrary, by bundling programs free with machines, they taught customers that software was of little value, says Kazuyuki Motohashi of the University of Tokyo. They also locked customers in, making it costly and cumbersome to switch to rivals.
The result is that Japan’s software industry is underdeveloped. Since 2008 Japanese software firms have lost 20% of their market value, even as software firms elsewhere grew by 15%. In software spending relative to GDP Japan ranks 35th, around the level of Saudi Arabia, according to INSEAD, a business school. Japanese code has tended to be inferior, says William Saito, an entrepreneur who sold his software company to Microsoft years ago. This is because it mirrored the shortcomings of Japan’s business culture: it was written in a hierarchical way that outsiders would have trouble building on, when the trend in America and Europe was exactly the opposite.
An example of Japan’s shift to software is Ruby, a programming language that undergirds big websites such as those of Twitter and Groupon. It was created in Japan by Yukihiro Matsumoto, and counts 1m developers around the world. Marc Benioff, the boss of Salesforce.com, a large “cloud computing” firm in Silicon Valley, sees opportunities everywhere in Japan. Over the past year the company paid $212m for Heroku, which develops web services based on Ruby, and acquired stakes in Synergy Marketing, Uhuru and Netyear, three business-software firms.
Old hardware companies want a slice of the software sashimi. Most are looking abroad. On July 1st NTT, Japan’s incumbent telecoms operator, said it would acquire OpSource, a cloud-computing software firm in California, for $90m through its South African software subsidiary, Dimension Data, which NTT acquired last year for $3.3 billion. Hitachi and Toshiba are hunting for software firms, too. Fujitsu, a big hardware firm, already gets two-thirds of its revenue and nearly all its profits from software and services.
Japan’s indigenous software industry faces several obstacles. The country lacks venture capital, a vibrant stockmarket and angel investors with technical knowledge to nurture start-ups. And its big, slow firms tend to suffocate the small fry, says Fujiyo Ishiguro, the founder of Netyear, an online-marketing software firm (and one of the few female bosses of a publicly-listed company in Japan).
For now, hardware is king. Newspapers cheered when Riken and Fujitsu unveiled the world’s fastest supercomputer in June. But the shift towards the intangible is inevitable, says Ms Ishiguro. Japan’s sissies are tougher than they look.
Monday, July 18, 2011
Charlemagne : The euro's real trouble
Charlemagne : The euro's real trouble
ANYONE struggling to understand why Europe has proved incapable of putting an end to the euro’s crisis might find answers in a bad-tempered dinner at a summit on October 28th 2010. The argument was over a demand by the leaders of Germany and France, made days earlier at Deauville, for a treaty change to create a permanent system to rescue countries unable to pay their debts. Everyone groaned. It had taken years of tribulation to agree on the European Union’s Lisbon treaty, which had only recently come into effect. But they bowed to Angela Merkel, the German chancellor, who wanted to prevent any challenge to the new system by Germany’s constitutional court.
However, Jean-Claude Trichet, president of the European Central Bank (ECB), worried about something else: her demand that future bail-outs must include “adequate participation of private creditors”, meaning losses for bondholders. That could only alarm the markets, he thought, still jittery after the Greek crisis in the spring. “You don’t realise the gravity of the situation…” began Mr Trichet. But he was cut off by the French president, Nicolas Sarkozy, who interjected, one Frenchman to another: “Perhaps you speak to bankers. We, we are answerable to our citizens.” Mrs Merkel chimed in: taxpayers could not be asked to foot the whole bill, not when they had just paid to save the banks.
The politicians won the day. But Mr Trichet’s worries have also been vindicated, as contagion has spread and is now engulfing Italy (see article). The dinner-table row illustrates how, throughout the sovereign-debt crisis, the requirements of financial crisis-management have collided with political, legal and emotional priorities. Indeed, the euro’s woes are as much about politics as about finance. European officials such as Mr Trichet parrot that the euro zone’s overall debt and deficit are sounder than America’s. Yet Europe lacks the big federal budgets and financial institutions to redistribute income and absorb economic shocks. And it has no single polity to mediate tensions within and between member countries. It is hard enough to get Californians to save Wall Street bankers; no wonder Germans bristle when they are asked to rescue Greek bureaucrats.
The crisis of the single currency is political as much as financial
Jul 14th 2011 | from the print edition
However, Jean-Claude Trichet, president of the European Central Bank (ECB), worried about something else: her demand that future bail-outs must include “adequate participation of private creditors”, meaning losses for bondholders. That could only alarm the markets, he thought, still jittery after the Greek crisis in the spring. “You don’t realise the gravity of the situation…” began Mr Trichet. But he was cut off by the French president, Nicolas Sarkozy, who interjected, one Frenchman to another: “Perhaps you speak to bankers. We, we are answerable to our citizens.” Mrs Merkel chimed in: taxpayers could not be asked to foot the whole bill, not when they had just paid to save the banks.
The politicians won the day. But Mr Trichet’s worries have also been vindicated, as contagion has spread and is now engulfing Italy (see article). The dinner-table row illustrates how, throughout the sovereign-debt crisis, the requirements of financial crisis-management have collided with political, legal and emotional priorities. Indeed, the euro’s woes are as much about politics as about finance. European officials such as Mr Trichet parrot that the euro zone’s overall debt and deficit are sounder than America’s. Yet Europe lacks the big federal budgets and financial institutions to redistribute income and absorb economic shocks. And it has no single polity to mediate tensions within and between member countries. It is hard enough to get Californians to save Wall Street bankers; no wonder Germans bristle when they are asked to rescue Greek bureaucrats.
Sunday, July 17, 2011
A Brief History Of Gold
A Brief History Of Gold
Gold has a place in history regardless of the country of origin. Perhaps it has to do with the fact that gold is seen as a common currency in every country in the world. Gold sees no boundaries. History states that gold coins have been minted since around 670 BC when King Gyges of Turkey minted some gold coins for his personal currency when traveling. The Roman Legions were apprehensive when Julius Caesar first issued gold coins as payment for their service. However, the tune soon changed when the legions realized that the gold coins actually increased in value.
Today, bouillon gold coins have a face value that is pretty much just symbolic. The true value of a gold bouillon is the gold weight by content and the ever-fluctuating price of gold on the world market. A one-ounce gold coin is worth the market value of one ounce of gold minus around 5% for minting and shipping. Of course, bouillon coins come in various common weights: 1/20 of an ounce, 1/10 of an ounce, 1/4 of an ounce, 1/2 of an ounce and finally a one-ounce coin. Gold bouillon is a legal tender and gold coins are guaranteed authentic by the country of origin. Almost anyone can purchase and sell gold coins because of the diverse market acceptance.
In 1489, King Henry VII introduced the first gold currency into the world market. In Britain during World War I, Britain issues banknotes because gold bouillon was needed to finance the war. Soon, these banknotes completely replaced the use of gold sovereign. The gold sovereign ceased gold mint production in 1917 and started again in 1925. Then production was stopped for World War I and restarted in 1957.
There are many famous finds of gold in various regions of the world. These gold finds caused huge gold rushes. Gold rushes caused large amounts of people to migrate to these areas. Such places as the Klondike Gold Rush of Alaska, which occurred at Forty-Mile creek in 1886. In August of 1869, gold was then discovered at Bonanza Creek - a part of Klondike River, Yukon Territory. In the one-year starting in the winter of 1896 and ending in 1897, miners pulled out millions of dollars in gold bouillon. In the year 1915, over $50 million USD was exported from Alaska to the United States. The 1898 gold rush was a modern event. With the addition of media, the gold rush had world wide media coverage. This media coverage sent people rushing to the gold locations.
The history of gold is an amazing display of human endurance. It is estimated that only 120 to 140 thousand tons of gold is available above ground. Surprisingly, there is only $1.8 trillion USD total in gold above the ground. Compare that to the total US debt of almost $7 trillion USD. In addition, only $375 billion USD is held in reserves at banks around the world; $1.3 trillion USD in gold is owned by private parties.
Gold has a place in history regardless of the country of origin. Perhaps it has to do with the fact that gold is seen as a common currency in every country in the world. Gold sees no boundaries. History states that gold coins have been minted since around 670 BC when King Gyges of Turkey minted some gold coins for his personal currency when traveling. The Roman Legions were apprehensive when Julius Caesar first issued gold coins as payment for their service. However, the tune soon changed when the legions realized that the gold coins actually increased in value.
Today, bouillon gold coins have a face value that is pretty much just symbolic. The true value of a gold bouillon is the gold weight by content and the ever-fluctuating price of gold on the world market. A one-ounce gold coin is worth the market value of one ounce of gold minus around 5% for minting and shipping. Of course, bouillon coins come in various common weights: 1/20 of an ounce, 1/10 of an ounce, 1/4 of an ounce, 1/2 of an ounce and finally a one-ounce coin. Gold bouillon is a legal tender and gold coins are guaranteed authentic by the country of origin. Almost anyone can purchase and sell gold coins because of the diverse market acceptance.
In 1489, King Henry VII introduced the first gold currency into the world market. In Britain during World War I, Britain issues banknotes because gold bouillon was needed to finance the war. Soon, these banknotes completely replaced the use of gold sovereign. The gold sovereign ceased gold mint production in 1917 and started again in 1925. Then production was stopped for World War I and restarted in 1957.
There are many famous finds of gold in various regions of the world. These gold finds caused huge gold rushes. Gold rushes caused large amounts of people to migrate to these areas. Such places as the Klondike Gold Rush of Alaska, which occurred at Forty-Mile creek in 1886. In August of 1869, gold was then discovered at Bonanza Creek - a part of Klondike River, Yukon Territory. In the one-year starting in the winter of 1896 and ending in 1897, miners pulled out millions of dollars in gold bouillon. In the year 1915, over $50 million USD was exported from Alaska to the United States. The 1898 gold rush was a modern event. With the addition of media, the gold rush had world wide media coverage. This media coverage sent people rushing to the gold locations.
The history of gold is an amazing display of human endurance. It is estimated that only 120 to 140 thousand tons of gold is available above ground. Surprisingly, there is only $1.8 trillion USD total in gold above the ground. Compare that to the total US debt of almost $7 trillion USD. In addition, only $375 billion USD is held in reserves at banks around the world; $1.3 trillion USD in gold is owned by private parties.
2011-06-14 Standard Chartered $5,000 gold price forecast
2011-06-14 Standard Chartered $5,000 gold price forecast
2011-06-14 Standard Chartered $5,000 gold price forecast
An analysis by the Standard Chartered bank suggests that the gold price will triple due to shortages in gold production. The bank's research team looked at the production levels of 345 gold mines and came to the conclusion that the gold production will be only 3.6% annualy over the next five years. The demand for gold, however, has been growing at a much faster pace, driven by purchases of gold by Asian central banks. This forecast is unique for two reasons: first, most gold price predictions are based on inflationary and crisis scenarios, while this one looks at the supply-demand equation. Second, banks usually tend to be rather conservative in their gold price predictions. An interesting read, indeed.The Republican nominee : Room for an electable conservative
The Republican nominee : Room for an electable conservative
HENRY OLSEN of the American Enterprise Institute did a splendid job of predicting the result of last year's mid-term elections. Now, in National Affairs, he has written the best piece I have seen so far to look at the voters who will end up choosing the Republican nominee for 2012 rather than looking at the candidates themselves. His first point is crucial: that although the media focus on the most conservative Republicans and on the tea-party movement, it is in fact moderate (or "dispositional") Republicans who will determine the winner.
HENRY OLSEN of the American Enterprise Institute did a splendid job of predicting the result of last year's mid-term elections. Now, in National Affairs, he has written the best piece I have seen so far to look at the voters who will end up choosing the Republican nominee for 2012 rather than looking at the candidates themselves. His first point is crucial: that although the media focus on the most conservative Republicans and on the tea-party movement, it is in fact moderate (or "dispositional") Republicans who will determine the winner.
The distinction between dispositional and ideological conservatives is often subtle; as a result, the breakdown is difficult to capture neatly in public-opinion polls. It is, however, approximated by the distinction made in some polls between Republican voters who identify themselves as "somewhat conservative" and those who identify as "very conservative." And as exit-poll data from the 1996, 2000, and 2008 Republican presidential primaries and caucuses show, these different types of "conservatives" prefer very different types of presidential candidates. Very conservative Republicans favor rhetorically aggressive champions of conservative ideology. Somewhat-conservative Republicans, on the other hand, tend to prefer established candidates — people who, while generally in agreement with ideological conservatives in their positions on the issues, are not as strident when it comes to ideology, rhetoric, or temperament.As for the tea-party movement,
It is worth noting that these somewhat-conservative voters make up a majority of Republican primary voters who identify as conservative. Polls taken in late 2010 and early 2011 show that conservatives comprise between 66% and 71% of Republicans and GOP-leaning independents. Most pollsters do not break conservatives into "somewhat" and "very" categories, but a mid-October 2010 Wall Street Journal poll asked if respondents were "very conservative" or "just conservative." At the height of Tea Party fervor within the GOP, "just conservatives" outnumbered "very conservatives," 36% to 34%.
In 2008, somewhat-conservative voters were an even larger share of the GOP electorate. Looking at state-by-state exit polls during the period before John McCain clinched the nomination, "somewhat conservative" voters averaged about 35% of the electorate. Moreover, somewhat conservatives outnumbered very conservatives in all but four Southern states. In many early states this advantage was sizable. In Florida and Michigan, somewhat conservatives outnumbered very conservatives by a nearly 3-2 margin; in New Hampshire, their margin was nearly 2-1. Even in supposedly ultra-conservative South Carolina, somewhat conservatives and very conservatives tied with 34% of the GOP electorate, with moderates and liberals nearly even at 32%. Given their number and distribution throughout key states, these somewhat-conservative voters generally have enormous influence over what kind of presidential candidate the Republican Party tends to nominate.
The depth of Tea Party support, too, is less than previously thought. The April NBC/Wall Street Journal poll also asked Republican Tea Party supporters whether it was more accurate to describe them as Republicans or Tea Partiers. Only slightly more than half of Republicans who supported the Tea Party — or about 30% of the entire Republican electorate — said they identified themselves principally as Tea Partiers. The other half said they were better described as Republicans. The Tea Party is certainly vocal and will remain a powerful force within Republican politics through 2012; it does not, however, represent anything close to a majority of Republicans, and so will not be the sole arbiter of who becomes the GOP's nominee.
But moderates are an important part of the Republican voting bloc — and they may be especially crucial in 2012. Polls show that moderates comprise between 30% and 35% of the expected Republican electorate. And in 2008, in states with early primaries — such as New Hampshire, Michigan, and Florida — moderates' share of the electorate was between 39% and 45%. This cohort is likely to remain large despite the rise of the Tea Party, because most states either permit registered independents to vote in party primaries or do not have party registration at all. As a result, many primary elections are left open to all voters. Since President Obama will almost certainly run unopposed, independents in 2012 are much likelier to vote in the GOP primary than in the Democratic one. If there is only one candidate tailoring his appeal to moderate Republicans and independents, he is likely to garner a large share of the vote.
Indeed, a would-be dark horse candidate who devotes too much of his message to pet Tea Party themes risks alienating the 2012 GOP contest's truly underserved constituency: Republican moderates. Because of its role in the 2010 Republican resurgence, an enormous amount of attention is being paid to the Tea Party. And some of the most prominent candidates of this cycle have abandoned past moderate stands in order to "check the boxes" of conservative orthodoxy leading up to 2012. As a result, the GOP's moderate bloc has been largely overlooked.
The debt ceiling : The McConnell gambit
The debt ceiling : The McConnell gambit
WHAT to make of Mitch McConnell's plan for raising the debt ceiling without an agreement on spending and taxes? I outsource to the excellent David Hawkings of Congressional Quarterly, a sister organisation of The Economist.
WHAT to make of Mitch McConnell's plan for raising the debt ceiling without an agreement on spending and taxes? I outsource to the excellent David Hawkings of Congressional Quarterly, a sister organisation of The Economist.
For all of its dismissive nicknames — “last-ditch option,” “Hail Mary punt” and “Pass the Buck Act” seem to be the most popular — McConnell’s idea really could be just the sort of surprising, bold and complicated maneuver needed to get around the coming budgetary calamity ...
Going with the McConnell option will forestall the sort of panicked Wall Street sell-off that might have been needed in the next three weeks to pressure the most liberal and most conservative lawmakers to acquiesce in an actual deal. It gives Obama fiscal stability on which to run the government and on which to run for re-election. It gives Boehner a way to avoid either capitulating on his call for a 1-to-1 ratio of spending cuts to debt ceiling increases — or reversing his fealty to the no-new-taxes position he’s been forced into by Cantor and the GOP caucus’s tea party majority. And (without choking on the details) it would still give every congressional Republican at least three and maybe six chances to cast a politically potent but ultimately meaningless vote before Election Day 2012 against raising the debt limit, while forcing Democrats to cast just as many votes in favor of the extra borrowing.
The biggest potential downside, and it’s a significant one, is that the people who voted for a Republican House so that it could make bold and politically risky decisions will view this as a too-clever-by-half cave-in. That’s the sentiment that most worries (and at the same time bucks up) the 87 freshmen, who sound like they want the next three weeks to be filled with all the brinkmanship, high drama and confrontation with a president they distrust as they imagined as candidates. And so they may yet insist with their “no” votes on any compromise that the moribund talks keep going up to, or even beyond, the appointed hour for falling into the budgetary abyss.
Lexington : Dicing with debt and the future
Lexington
Dicing with debt and the future
The Theory of Inevitable Compromise, and why it is probably wrong
“WE HAVE a system of government in which everybody has to give a little bit.” So said Barack Obama at the start of this week. But parse that sentence. Does the president mean that America already has a system in which everybody has to give a little bit? Or does he mean only that it ought to have such a system? It is not too much to say that the country’s economic well-being hangs on the answer.
As the whole world knows, America’s government is in danger of defaulting after August 2nd unless Congress raises the federal debt ceiling so that it can keep borrowing enough to pay its bills. For a while the markets assumed that because a default would be so scary, Republicans and Democrats would have in the end to agree on the spending cuts the Republican-controlled House demanded as its price for raising the ceiling. The Theory of Inevitable Compromise was that each party would have to give a bit because voters will punish whichever proves too stubborn. But here are eight reasons to wonder whether the theory is true.
First, for the theory to work, both parties need to believe that failing to raise the ceiling will trigger a default and the “huge financial calamity” Ben Bernanke, the chairman of the Fed, gave warning of this week. Not all Republicans do believe that. John Boehner, the House speaker, is a believer, but the freshmen who bobbed into Congress last November on a tidal wave of tea are not. Some say that the government could keep paying foreign creditors by slashing domestic spending, and that this would be just fine—even though Mr Obama refuses to guarantee even that Social Security (pension) cheques would go out without a deal.
Fourth, the Theory of Inevitable Compromise holds that fear of the voters will push the parties together. But which voters? Candidates in the general election of November 2012 would not want to be thought reckless. That election, however, is an age away. Republican candidates and the new House members are now fixated not on voters in general, who want the parties to co-operate, but on the more ideological ones who will vote in the primaries. Many of these do not want the debt ceiling to rise.
Why not? In part because, fifth, the theory assumes that voters understand what the debt ceiling is. This assumption is almost certainly false. Many are under the misapprehension that it is a vote to authorise new spending, not permission to pay the bills that this and earlier Congresses have already run up. According to Gallup, 60% of Republicans, 46% of independents and 21% of Democrats oppose increasing the debt ceiling at all.
Just crying wolf
Couldn’t politicians explain things better? Dream on. The sixth argument against the Theory of Inevitable Compromise is the virtual impossibility in today’s polarised America of shaping a consensus. In the 1930s Franklin Roosevelt delivered soothing chats explaining the theory of banking. But the president’s bully pulpit is not what it was before the rise of partisan cable television and the cacophony of the blogosphere empowered the obfuscators. For every commentator wringing his hands over the danger of default, another accuses the “liberals” of crying wolf.
Seventh, the listless state of the economy makes it hard for politicians of both parties to do the hard things that are needed to reduce the deficit. The Republicans say rightly that increasing the tax burden would damage jobs and growth. Democrats are right to retort that so would the spending cuts the Republicans want.
Last, and most important, both sides have made a stand on principles that will be hard to abandon without losing face. The Republicans’ is that there can be no increase in tax revenues, because that is how public spending ratchets ever higher. The Democrats’ is that a deal that reduces the deficit by spending cuts alone would fall too heavily on the most vulnerable Americans.
Over the past few weeks, however, Mr Obama has at least shown himself open to compromise, by proposing a mix of spending cuts and tax increases, tilted heavily towards the former. By midweek, a few anxious Republican voices were beginning to argue that their side had held firm long enough, and had better bend too if it did not want to be blamed for the approaching calamity. Senator McConnell said that a default could “destroy” the Republican brand. But the zealots in the House were continuing to stand firm as the clock ticked down. On July 13th Moody’s put the United States on review for a downgrade. This is a season of dangerous brinkmanship in America. Compromise may still be possible, but there is nothing inevitable about it.
As the whole world knows, America’s government is in danger of defaulting after August 2nd unless Congress raises the federal debt ceiling so that it can keep borrowing enough to pay its bills. For a while the markets assumed that because a default would be so scary, Republicans and Democrats would have in the end to agree on the spending cuts the Republican-controlled House demanded as its price for raising the ceiling. The Theory of Inevitable Compromise was that each party would have to give a bit because voters will punish whichever proves too stubborn. But here are eight reasons to wonder whether the theory is true.
First, for the theory to work, both parties need to believe that failing to raise the ceiling will trigger a default and the “huge financial calamity” Ben Bernanke, the chairman of the Fed, gave warning of this week. Not all Republicans do believe that. John Boehner, the House speaker, is a believer, but the freshmen who bobbed into Congress last November on a tidal wave of tea are not. Some say that the government could keep paying foreign creditors by slashing domestic spending, and that this would be just fine—even though Mr Obama refuses to guarantee even that Social Security (pension) cheques would go out without a deal.
Second, the Republicans are divided among themselves. The party’s leader in the Senate, Mitch McConnell, has aired a convoluted last-ditch plan that would avert a default by letting Mr Obama increase the ceiling even without a spending agreement between the parties, provided he makes cuts of the same size. Senior Democrats have welcomed the idea, but Eric Cantor, the Republican majority leader in the House, has not. Mr Cantor had already rejected Mr Boehner’s secretive attempt to negotiate what could have been an historic bargain with Mr Obama embracing a higher tax take (anathema to Republicans) as well as vast reductions in entitlement spending (music to their ears).
Noises off are the third problem. Outside Congress, the Republicans’ presidential wannabes are taking up their starting positions for 2012. Craving power but not yet possessing it, these hopefuls are not constrained by responsibility. Indeed, further economic trouble on Mr Obama’s watch might suit them nicely. Whether for this reason or from conviction, most profess themselves unfazed by the prospect of a failure to raise the debt ceiling. Newt Gingrich called Mr McConnell’s last resort “an irresponsible surrender to big government”. Michele Bachmann says she is proud never to have voted for raising the debt ceiling in the past.Fourth, the Theory of Inevitable Compromise holds that fear of the voters will push the parties together. But which voters? Candidates in the general election of November 2012 would not want to be thought reckless. That election, however, is an age away. Republican candidates and the new House members are now fixated not on voters in general, who want the parties to co-operate, but on the more ideological ones who will vote in the primaries. Many of these do not want the debt ceiling to rise.
Why not? In part because, fifth, the theory assumes that voters understand what the debt ceiling is. This assumption is almost certainly false. Many are under the misapprehension that it is a vote to authorise new spending, not permission to pay the bills that this and earlier Congresses have already run up. According to Gallup, 60% of Republicans, 46% of independents and 21% of Democrats oppose increasing the debt ceiling at all.
Just crying wolf
Couldn’t politicians explain things better? Dream on. The sixth argument against the Theory of Inevitable Compromise is the virtual impossibility in today’s polarised America of shaping a consensus. In the 1930s Franklin Roosevelt delivered soothing chats explaining the theory of banking. But the president’s bully pulpit is not what it was before the rise of partisan cable television and the cacophony of the blogosphere empowered the obfuscators. For every commentator wringing his hands over the danger of default, another accuses the “liberals” of crying wolf.
Seventh, the listless state of the economy makes it hard for politicians of both parties to do the hard things that are needed to reduce the deficit. The Republicans say rightly that increasing the tax burden would damage jobs and growth. Democrats are right to retort that so would the spending cuts the Republicans want.
Last, and most important, both sides have made a stand on principles that will be hard to abandon without losing face. The Republicans’ is that there can be no increase in tax revenues, because that is how public spending ratchets ever higher. The Democrats’ is that a deal that reduces the deficit by spending cuts alone would fall too heavily on the most vulnerable Americans.
Over the past few weeks, however, Mr Obama has at least shown himself open to compromise, by proposing a mix of spending cuts and tax increases, tilted heavily towards the former. By midweek, a few anxious Republican voices were beginning to argue that their side had held firm long enough, and had better bend too if it did not want to be blamed for the approaching calamity. Senator McConnell said that a default could “destroy” the Republican brand. But the zealots in the House were continuing to stand firm as the clock ticked down. On July 13th Moody’s put the United States on review for a downgrade. This is a season of dangerous brinkmanship in America. Compromise may still be possible, but there is nothing inevitable about it.
Business Ideas:10 Businesses You Can Start for $500 or Less!
Business Ideas:10 Businesses You Can Start for $500 or Less!
Long time statistics have shown that 9 out of 10 new businesses fail in their first year. Lack of planning and financial ruin is one of the most common causes. Starting small is a way to insure minimal risk in new business. The founder of Dell computers was a college dropout on a shoe-string budget who started his business out of his garage. One in three computers sold today is a Dell.
The following is a list of just some of the businesses you can start for $500 or less.
1. Housekeeping – Requirements/ household cleaners, mop, broom, vacuum, towels, bucket, business cards – approximate cost $150. Molly Maids is a multi-million dollar business started with a broom, a mop, and quality and reliable service. I can guarantee you that the CEO of Molly Maids doesn’t clean houses any longer.
2. Gardening or landscaping – Requirements/ mower, edger, blower, rake, shovel, clippers, business cards – approximate cost $450. Some education won’t hurt you here, but even without it, how much money did you make mowing the neighbors yard when you were young?
3. Internet sales – Requirements/ computer – approximate cost $500. It’s likely you already have a computer at home so this just might be the cheapest and easiest business to start. It has been estimated that by the year 2020, nearly all retail purchases will be done over the World Wide Web. Getting on the bandwagon now may set you up for a prosperous internet business in the near future. Look into working with “drop ship” companies to avoid up front expense and storage fees.
4. Mobile food service – Requirements/ business cards – approximate cost $30. With a half hour lunch break, employees at many companies have little time to leave work and order lunch. Providing a morning menu for lunchtime delivery can be helpful to these people and provide a good source of income for you. Your job? Call in the order, pick it up, and deliver it; for a fee of course. Delivering 15 lunches to one company at $3 to $5 profit apiece can add up quick. Or how about a hot dog cart at special events?
5. Pool service – Requirements/ pool cleaning supplies, start-up chemicals, brush, net, hose, business cards – Approximate cost $400. States with warmer climates have many homes with swimming pools needing weekly care. Service to numerous homes in the same area can net you a small fortune. Business cards on the door or mailbox lets the homeowner know you are available. It may take some time to get a solid clientele, but be patient; established pool service routes can be very valuable if and when you decide to call it quits.
6. Consulting service – Requirements/ know-how, business cards – Approximate cost $30. What do you know that might be of monetary value to others? Sell your smarts!
7. Delivery service – Requirements/ the car, scooter, or bicycle you may already have/ business cards – Approximate cost $30. A great business within large city limits. Corporations, small businesses, restaurants, etc. may be in need of delivery services. Whether it is paper documents, payrolls, food, or other items, delivery services can be a steady and profitable business.
8. Painter – Requirements/ brushes, rollers, edger’s, towels, tarps, business cards – Approximate cost $200. Visit local hardware stores to let them know you are available for work and will purchase paint through their stores. Their referrals may keep you busy for months at a time.
9. Handyman – Requirements/ basic tools, business cards – Approximate cost $500. Depending on they type of jobs you acquire in this business, a contractors license may eventually be required. Check with your local and state government offices to determine at what point you will need one.
10. Daycare – Requirements/ toys, educational materials, bedding, a safe and clean home, love – Approximate cost $300. This business requires patience and child care experience. If you care for more than three children at one time, it’s likely you will be required to be licensed. Check with your local and state government offices for restrictions and requirements.
Most of these business start-up ideas will require an additional two items you likely already have; an automobile and a telephone. But otherwise, they are super simple and easy to start new businesses suitable for nearly anyone wanting to become self-employed.
The key to having a successful business is to do what you would enjoy doing anyway. Make a list of the things you like to do and follow that with an extended list of ways to make money in a related business. Be creative with your business idea, there are many more options available for you than you probably realize!
Long time statistics have shown that 9 out of 10 new businesses fail in their first year. Lack of planning and financial ruin is one of the most common causes. Starting small is a way to insure minimal risk in new business. The founder of Dell computers was a college dropout on a shoe-string budget who started his business out of his garage. One in three computers sold today is a Dell.
The following is a list of just some of the businesses you can start for $500 or less.
1. Housekeeping – Requirements/ household cleaners, mop, broom, vacuum, towels, bucket, business cards – approximate cost $150. Molly Maids is a multi-million dollar business started with a broom, a mop, and quality and reliable service. I can guarantee you that the CEO of Molly Maids doesn’t clean houses any longer.
2. Gardening or landscaping – Requirements/ mower, edger, blower, rake, shovel, clippers, business cards – approximate cost $450. Some education won’t hurt you here, but even without it, how much money did you make mowing the neighbors yard when you were young?
3. Internet sales – Requirements/ computer – approximate cost $500. It’s likely you already have a computer at home so this just might be the cheapest and easiest business to start. It has been estimated that by the year 2020, nearly all retail purchases will be done over the World Wide Web. Getting on the bandwagon now may set you up for a prosperous internet business in the near future. Look into working with “drop ship” companies to avoid up front expense and storage fees.
4. Mobile food service – Requirements/ business cards – approximate cost $30. With a half hour lunch break, employees at many companies have little time to leave work and order lunch. Providing a morning menu for lunchtime delivery can be helpful to these people and provide a good source of income for you. Your job? Call in the order, pick it up, and deliver it; for a fee of course. Delivering 15 lunches to one company at $3 to $5 profit apiece can add up quick. Or how about a hot dog cart at special events?
5. Pool service – Requirements/ pool cleaning supplies, start-up chemicals, brush, net, hose, business cards – Approximate cost $400. States with warmer climates have many homes with swimming pools needing weekly care. Service to numerous homes in the same area can net you a small fortune. Business cards on the door or mailbox lets the homeowner know you are available. It may take some time to get a solid clientele, but be patient; established pool service routes can be very valuable if and when you decide to call it quits.
6. Consulting service – Requirements/ know-how, business cards – Approximate cost $30. What do you know that might be of monetary value to others? Sell your smarts!
7. Delivery service – Requirements/ the car, scooter, or bicycle you may already have/ business cards – Approximate cost $30. A great business within large city limits. Corporations, small businesses, restaurants, etc. may be in need of delivery services. Whether it is paper documents, payrolls, food, or other items, delivery services can be a steady and profitable business.
8. Painter – Requirements/ brushes, rollers, edger’s, towels, tarps, business cards – Approximate cost $200. Visit local hardware stores to let them know you are available for work and will purchase paint through their stores. Their referrals may keep you busy for months at a time.
9. Handyman – Requirements/ basic tools, business cards – Approximate cost $500. Depending on they type of jobs you acquire in this business, a contractors license may eventually be required. Check with your local and state government offices to determine at what point you will need one.
10. Daycare – Requirements/ toys, educational materials, bedding, a safe and clean home, love – Approximate cost $300. This business requires patience and child care experience. If you care for more than three children at one time, it’s likely you will be required to be licensed. Check with your local and state government offices for restrictions and requirements.
Most of these business start-up ideas will require an additional two items you likely already have; an automobile and a telephone. But otherwise, they are super simple and easy to start new businesses suitable for nearly anyone wanting to become self-employed.
The key to having a successful business is to do what you would enjoy doing anyway. Make a list of the things you like to do and follow that with an extended list of ways to make money in a related business. Be creative with your business idea, there are many more options available for you than you probably realize!
Live Gold Prices 2011 - Price of Gold Coins 2011 - Silver Prices 2011
Live Gold Prices 2011 - Price of Gold Coins 2011 - Silver Prices 2011
Live Gold Prices 2011 - Price of Gold Coins 2011 - Silver Prices 2011
Get the current gold price, live gold prices, world gold prices, London gold prices, gold spot price, gold price today in the U.S., and gold bullion prices online. If you want more precious metals info or want to check gold coin prices, please shop Austin Rare Coins & Bullion or the Gold Information Network. Gold price questions? Feel free to call seven days a week 9am to 9pm central time at 1-800-928-6468.
Click for Today's Best Gold Buys
Visit the Gold Information Network for today's best buys and live gold prices on gold coins, gold bullion, gold American Eagles, and 2011 world coins.
How to Build a Gold Portfolio
The decision to add gold to your portfolio is a serious one. We recommend you research gold prices and the gold bullion coin market carefully before making an investment in gold. For the best gold price, you should call and ask for cash and quantity discounts with a leading gold dealer like Austin Rare Coins & Bullion who sell gold online.
Shop Here For Just Released 2011 Coins
Austin Rare Coins & Bullion has a great selection of gold coins from all over the world. In stock now with live gold prices for American Eagles, American Buffalo, Canadian Maple Leafs, China Mint Pandas and Australian Kangaroo gold coins. Shop now online for 2011 Gold Coins.
Today's Best American Eagle Gold Buys
The lowest gold prices and all the facts on securing non-reportable, private gold coins, gold bullion prices, and American Eagles.
Live Gold Prices 2011 - Price of Gold Coins 2011 - Silver Prices 2011
Get the current gold price, live gold prices, world gold prices, London gold prices, gold spot price, gold price today in the U.S., and gold bullion prices online. If you want more precious metals info or want to check gold coin prices, please shop Austin Rare Coins & Bullion or the Gold Information Network. Gold price questions? Feel free to call seven days a week 9am to 9pm central time at 1-800-928-6468.
Click for Today's Best Gold Buys
Visit the Gold Information Network for today's best buys and live gold prices on gold coins, gold bullion, gold American Eagles, and 2011 world coins.
How to Build a Gold Portfolio
The decision to add gold to your portfolio is a serious one. We recommend you research gold prices and the gold bullion coin market carefully before making an investment in gold. For the best gold price, you should call and ask for cash and quantity discounts with a leading gold dealer like Austin Rare Coins & Bullion who sell gold online.
Shop Here For Just Released 2011 Coins
Austin Rare Coins & Bullion has a great selection of gold coins from all over the world. In stock now with live gold prices for American Eagles, American Buffalo, Canadian Maple Leafs, China Mint Pandas and Australian Kangaroo gold coins. Shop now online for 2011 Gold Coins.
Today's Best American Eagle Gold Buys
The lowest gold prices and all the facts on securing non-reportable, private gold coins, gold bullion prices, and American Eagles.
Organo Gold Business - How To Make Money With Organo Gold
Organo Gold Business - How To Make Money With Organo Gold
Organo Gold give you the opportunity to earn an unlimited income. By selling their range of healthy coffees and nutraceuticals, you could be a millionaire in a few short years. But of course, you could earn nothing. You could spend hours and hours, and all your savings trying to make your Organo Gold business a success, only to be left with nothing. Your business could go either way, it depends on what decisions you make. If you want to make money with Organo Gold, then you need to know how.
To make money with Organo Gold you need to a) sell their products, and b) grow your team. Everyone loves coffee- it's the world's second favorite drink. You would think selling such a popular item, especially one that is healthier for you, would be a piece of cake. Well, you'd be wrong. Success never comes easily. There are so many other people out there selling coffee and nutraceuticals, that your business can easily get lost in the crowd. You're going to have to work extremely hard to stand out.
One of the ways you can distance yourself from the crowd is with an excellent piece of sales copy. The written word is one of the most persuasive tools you have at your disposal. Words are powerful things- by knowing the right thing to say, you can make people desperately crave what you have to offer. The best thing is that you will have a completely different writing style to your competitors. No one else can see inside your mind, so whatever you write will be unique to you and you alone. This is how you will set yourself apart from the pack, and get people's attention.
To make money with Organo Gold, you need to embrace the written word. But once you've written this amazing piece of copy, are you just going to leave it sitting on your desk? Of course not! Use the internet to fully leverage your business and spread your sales message across the country. The combination of great copy and great internet marketing is how you will make money with Organo Gold.
Organo Gold give you the opportunity to earn an unlimited income. By selling their range of healthy coffees and nutraceuticals, you could be a millionaire in a few short years. But of course, you could earn nothing. You could spend hours and hours, and all your savings trying to make your Organo Gold business a success, only to be left with nothing. Your business could go either way, it depends on what decisions you make. If you want to make money with Organo Gold, then you need to know how.
To make money with Organo Gold you need to a) sell their products, and b) grow your team. Everyone loves coffee- it's the world's second favorite drink. You would think selling such a popular item, especially one that is healthier for you, would be a piece of cake. Well, you'd be wrong. Success never comes easily. There are so many other people out there selling coffee and nutraceuticals, that your business can easily get lost in the crowd. You're going to have to work extremely hard to stand out.
One of the ways you can distance yourself from the crowd is with an excellent piece of sales copy. The written word is one of the most persuasive tools you have at your disposal. Words are powerful things- by knowing the right thing to say, you can make people desperately crave what you have to offer. The best thing is that you will have a completely different writing style to your competitors. No one else can see inside your mind, so whatever you write will be unique to you and you alone. This is how you will set yourself apart from the pack, and get people's attention.
To make money with Organo Gold, you need to embrace the written word. But once you've written this amazing piece of copy, are you just going to leave it sitting on your desk? Of course not! Use the internet to fully leverage your business and spread your sales message across the country. The combination of great copy and great internet marketing is how you will make money with Organo Gold.
Secure Your Future With The Kb Gold Business!
Secure Your Future With The Kb Gold Business!
The KB Gold Business has an intriguing MLM with loads of possibilities and from people that used great knowledge in the past to start this up. Well aware of the global markets being down. Economies worldwide are suffering.
Euro was supposed to be the savior of Europe from economic recession, but it did not turn out to be so. The investors have therefore considered investing in terms of gold, as the value for gold showed steady growth and was not affected by the economic slowdown. The recession did not seem to end any sooner and this prompted them more to invest in gold.
After studying the market for years I've invested numerous times in Mineral companies and gold exploration companies. It's never let me down.
The idea of an MLM that allows you to monthly convert your savings into gold while convincing your friends, relatives, and the world of the internet to do the same I really believe is a great one. And I also believe, if you are talking with anyone who has any sense of economy it won't be that hard to gain their attention and interest.
The compensation plan is pretty simple. As you build up points you increase the percentage of the total volume you earn. There is nothing fancy about it, it is not so great but it is simple and reliable, like gold, and the more you accumulate, the more profitable it becomes, Kind of Like Gold.
Here are two ways to get people to purchase from you as a KB Gold Business Distributor. First of all they need to sign up for a monthly purchase plan. This works better for you. Earning for every Euro your clients spend on gold. This is a German Company so they do work in Euros.
Second is you may earn points from purchases of gold through you. For large purchases of KB Gold you earn one point for every ten Euros of gold purchased by your clients.
A minimum of 2500 points a month is required for a standard living. It is possible to survive with 1250 points per month but it won't be enough for a classy life style. Skill lies in trying to attain as much points as possible
This shouldn't be difficult convincing people to move their investments and retirement funds into gold based considering the times we currently live in. It should be in the best interest of companies to maintain an honest business so they can truthfully say The KB Gold Business has awesome potential backing it, and I've spent a good amount of time researching global economies, and less time writing reviews and researching MLM companies.
But I have quite a lot of Experience in Both which makes the information I offer you about KB Gold Business information you can trust.
Interesting facts to know about KB Gold business and the Euro on how KB Gold manages their gold distribution. Casing gold pennies inside credit card style plastic units. These cards are accepted by thousands of corporations and companies across Europe. This is the start of a trend with no end in sight and every reason to grow rapidly.
The company confined its operations within Europe when it was established over 16 years ago and is now on the move to establish its presence worldwide. It has now made it presence felt in regions like India, USA, Africa, Canada, South America, UK, Asia, Middle East, Australia and New Zealand.
Even though this is a founded, reliable company with good history you can be close to the top in your country developing further KB Gold Business down line. This is an outstanding idea and a wise investment opportunity. I would say this is an investment and a business opportunity. I do confess the old fashioned and easy compensation plan will take time to really start paying out but gathering gold while patently waiting is not a bad investment/retirement savings plan idea.
So with that said I give The KB Gold Business 4 stars. It has a lot of plusses but much more of them fall within investment opportunities. Again, they have just begun to expand their campaign to Market KB gold as a business so it is very likely they start investing more money into this aspect as we head more towards a gold driven world the potential exists that this company could provide a much better business opportunity than it currently is and that potential could happen rather quickly.
Best of luck to all your Nome Based Businesses!
The KB Gold Business has an intriguing MLM with loads of possibilities and from people that used great knowledge in the past to start this up. Well aware of the global markets being down. Economies worldwide are suffering.
Euro was supposed to be the savior of Europe from economic recession, but it did not turn out to be so. The investors have therefore considered investing in terms of gold, as the value for gold showed steady growth and was not affected by the economic slowdown. The recession did not seem to end any sooner and this prompted them more to invest in gold.
After studying the market for years I've invested numerous times in Mineral companies and gold exploration companies. It's never let me down.
The idea of an MLM that allows you to monthly convert your savings into gold while convincing your friends, relatives, and the world of the internet to do the same I really believe is a great one. And I also believe, if you are talking with anyone who has any sense of economy it won't be that hard to gain their attention and interest.
The compensation plan is pretty simple. As you build up points you increase the percentage of the total volume you earn. There is nothing fancy about it, it is not so great but it is simple and reliable, like gold, and the more you accumulate, the more profitable it becomes, Kind of Like Gold.
Here are two ways to get people to purchase from you as a KB Gold Business Distributor. First of all they need to sign up for a monthly purchase plan. This works better for you. Earning for every Euro your clients spend on gold. This is a German Company so they do work in Euros.
Second is you may earn points from purchases of gold through you. For large purchases of KB Gold you earn one point for every ten Euros of gold purchased by your clients.
A minimum of 2500 points a month is required for a standard living. It is possible to survive with 1250 points per month but it won't be enough for a classy life style. Skill lies in trying to attain as much points as possible
This shouldn't be difficult convincing people to move their investments and retirement funds into gold based considering the times we currently live in. It should be in the best interest of companies to maintain an honest business so they can truthfully say The KB Gold Business has awesome potential backing it, and I've spent a good amount of time researching global economies, and less time writing reviews and researching MLM companies.
But I have quite a lot of Experience in Both which makes the information I offer you about KB Gold Business information you can trust.
Interesting facts to know about KB Gold business and the Euro on how KB Gold manages their gold distribution. Casing gold pennies inside credit card style plastic units. These cards are accepted by thousands of corporations and companies across Europe. This is the start of a trend with no end in sight and every reason to grow rapidly.
The company confined its operations within Europe when it was established over 16 years ago and is now on the move to establish its presence worldwide. It has now made it presence felt in regions like India, USA, Africa, Canada, South America, UK, Asia, Middle East, Australia and New Zealand.
Even though this is a founded, reliable company with good history you can be close to the top in your country developing further KB Gold Business down line. This is an outstanding idea and a wise investment opportunity. I would say this is an investment and a business opportunity. I do confess the old fashioned and easy compensation plan will take time to really start paying out but gathering gold while patently waiting is not a bad investment/retirement savings plan idea.
So with that said I give The KB Gold Business 4 stars. It has a lot of plusses but much more of them fall within investment opportunities. Again, they have just begun to expand their campaign to Market KB gold as a business so it is very likely they start investing more money into this aspect as we head more towards a gold driven world the potential exists that this company could provide a much better business opportunity than it currently is and that potential could happen rather quickly.
Best of luck to all your Nome Based Businesses!
The Facts on Gold
The Facts on Gold
Gold is a hot topic. China is buying it and TV pitchmen are selling it. The Tea Party – and a growing number of economists – are calling for a return to a gold currency standard. Gold has largely replaced Tupperware at home sales parties and record gold prices are regularly making news.
What's all the excitement about?
Gold is an Element, atomic number 79 and chemical symbol Au. It is further classified as a metal and is considered a precious metal. It is among the heaviest, most malleable and least chemically reactive of metals - gold lost at sea 500 years ago is still shiny and uncorroded. Most important for industrial purposes, gold is an excellent conductor of electricity.
What's the Price of Gold? Gold trades globally. That means that in one form or another, gold is being bought and sold continuously, somewhere in the world, nearly every day. And because supply and demand vary slightly around the globe, the price in a given location may also vary. Vary from what? The London Bullion Market Association publishes the London Gold Fix at 10:30 and 3pm (GMT) every business day. While the Fix prices don't necessarily control any other transaction, they function as the international reference price.
How Much Gold is There? Gold inventory numbers are not easy to come by, nor are they necessarily accurate. Most countries report their official holdings to the International Monetary Fund. Those numbers are then massaged by the private World Gold Council which publishes the most authoritative summary available. Their most recent estimate is that about 30,000 tons of gold are held in reserve by central banks. They also estimate that about 165,000 tons have been mined in all of human history – only enough to form about a 20 meter cube. Finally, geologists estimate that as much as 80% of the world's gold remains unmined – either underground or suspended in seawater.
Gold Weights and Measures The primary system for measuring the mass or weight of gold is the Troy ounce. The standard specification for a London Bullion Market Association bar – the kind you see stacked in vaults – is 350 to 430 Troy ounces, which are not converted to pounds because pricing is based on the ounce. Gold is also traded in grams and kilograms in countries where the metric system prevails. In addition, several Asian countries have measures which are only used within their own borders.
Gold has been a measure and store of value for about 6,000 years – and that probably won't change anytime soon.
Gold is a hot topic. China is buying it and TV pitchmen are selling it. The Tea Party – and a growing number of economists – are calling for a return to a gold currency standard. Gold has largely replaced Tupperware at home sales parties and record gold prices are regularly making news.
What's all the excitement about?
Gold is an Element, atomic number 79 and chemical symbol Au. It is further classified as a metal and is considered a precious metal. It is among the heaviest, most malleable and least chemically reactive of metals - gold lost at sea 500 years ago is still shiny and uncorroded. Most important for industrial purposes, gold is an excellent conductor of electricity.
What's the Price of Gold? Gold trades globally. That means that in one form or another, gold is being bought and sold continuously, somewhere in the world, nearly every day. And because supply and demand vary slightly around the globe, the price in a given location may also vary. Vary from what? The London Bullion Market Association publishes the London Gold Fix at 10:30 and 3pm (GMT) every business day. While the Fix prices don't necessarily control any other transaction, they function as the international reference price.
How Much Gold is There? Gold inventory numbers are not easy to come by, nor are they necessarily accurate. Most countries report their official holdings to the International Monetary Fund. Those numbers are then massaged by the private World Gold Council which publishes the most authoritative summary available. Their most recent estimate is that about 30,000 tons of gold are held in reserve by central banks. They also estimate that about 165,000 tons have been mined in all of human history – only enough to form about a 20 meter cube. Finally, geologists estimate that as much as 80% of the world's gold remains unmined – either underground or suspended in seawater.
Gold Weights and Measures The primary system for measuring the mass or weight of gold is the Troy ounce. The standard specification for a London Bullion Market Association bar – the kind you see stacked in vaults – is 350 to 430 Troy ounces, which are not converted to pounds because pricing is based on the ounce. Gold is also traded in grams and kilograms in countries where the metric system prevails. In addition, several Asian countries have measures which are only used within their own borders.
Gold has been a measure and store of value for about 6,000 years – and that probably won't change anytime soon.
Money Gold for cash
Money
Gold for cash
Amusement aside, the disappointing thing about Ron Paul's goldbuggery is the weakness of the analysis behind it. His support seems almost mystic in nature: that gold is money is a law of economics that's held for 6,000 years! In his defence, this quasi-mystical belief in the sanctity of gold in a monetary system was shared by the world's financial leaders for much of the industrial period. That's not much of a defence, though. Gold worship repeatedly drove the economy into ditches and off cliffs, but for a few lucky years in which the pace of new gold discoveries fortuitously matched growth in the global economy.
Is gold money? No. Money is the medium of exchange. Money is what we use to facilitate transactions in order to capture efficiencies unavailable in a barter economy. You could probably take a gold bar to a store and swap it for something, but that would be a barter-like trade rather than a money-facilited exchange. You and the shopkeeper would have to haggle over the value of one good—the gold—vis-à-vis another and jump through all the hoops money is designed to eliminate.Gold is a store of value. It's an asset that can be and often is held as a store of wealth. But while gold is not money, it shares a very important characteristic with money: its value (apart from limited industrial uses) is derived from the market's perception that it has value. This is the nugget of truth in Mr Paul's comments. There's nothing all that special about gold except for the fact that over much of human history people have behaved as though there is something special about gold. That belief (and the fact that it's on earth in sufficiently limited quantities) is what makes gold a useful store of value. People think it's valuable because people think it's valuable.
But that's precisely the way that fiat money works. People believe the flimsy pieces of paper we call dollar bills are worth some basket of real goods only because everyone else believes the same thing. The crucial difference in the perception of value is that new gold can only be obtained at great difficulty while new bills can be produced by the truckload at virtually no marginal cost. Gold's inherent supply limitations supported the popular confidence in its value. And when economies began switching to paper money, the link between the new confidence-based currency and the old confidence-based currency was a very useful way to build public faith in the new confidence-based currency.
Across the rich world, the task of establishing sufficient confidence in the value of colourful bits of paper is finished. People are happy to keep their life savings in dollars despite the fact that the gold price of dollars may vary wildly. Central banks around the world gladly hold foreign currency as reserves. This is because central banks have demonstrated that they're basically as good as miners at keeping the value of a medium of exchange predictable.
I understand the view (though I think it's dead wrong) that central banks can't be trusted to keep up this predictability, and that a gold link is necessary to maintain discipline. What I don't understand is the argument for gold that falls back on the mystical, 6,000-year old Law of Economics that shiny yellow metal is somehow special. All Mr Paul is saying is that he prefers old faiths to new ones. It's a great triumph of economics that it's put quite a lot of analytical meat on the bones of monetary theory over the past century. It's a shame that Mr Paul seems not to understand it.
Subscribe to:
Posts (Atom)