Finance Blog

Standard & Poor’s lowered the credit rating after the United States, set off a global financial crisis. S & P this action, the consequences caused by the huge, so many people happy, so many people sad. While this area illustrates the seriousness of the problem the U.S. economy, it also shows that U.S. financial institutions on the global financial markets, the ability to manipulate huge.

A few thousand people in the company, its report could affect the global flow of wealth and the ups and downs. It can be said Standard & Poor’s investment in this world to have witnessed what “influence is wealth.” Since there are so much influence, then, in the cut after the U.S. credit rating, S & P is likely to continue to use their influence to adjust the sovereignty of other countries, credit rating, to partially offset the reduction in the U.S. credit rating on the U.S. economy enormous negative effects?

In fact, before this, we have seen the S & P has lowered Greece, Portugal and other countries, credit rating, which lit the fuse of the euro crisis. Then, in the hands of the United States itself, the Standard & Poor’s rating agencies such as the United States, Asian countries are likely to shot it?

I think that this possibility now appears to be quite realistic. In the United States after credit rating cut, Standard & Poor’s is likely the case with the emergence of new ground in the next Asia-Pacific countries down the debt rating. Now it seems that there are at least two new reasons: First, the U.S. reduced the direct impact of credit rating. Asia-Pacific economies are still highly dependent on exports to Europe and America. European financial markets and the real economy if there is atrophy or even stagnation, demand for imported goods will be reduced, highly dependent on overseas markets, especially Asia-Pacific region, exports will suffer a serious blow.

Followed by the United States, the indirect effects of lower credit rating. U.S. downgrades, combined with the weakening of Europe’s sovereign credit, making the global financial market uncertainty increases. This uncertainty coupled with the developed economies, weak real economy, the international investor confidence hit, and then too mean to invest. The resulting tightening of international liquidity, which makes Asia-Pacific sovereign state, may face greater financial problems.

In this case, in order to prevent the rapid economic decline, a number of Asia-Pacific countries may request outside assistance. That the financial system depends on the offshore market in the Asia-Pacific countries may be due to decreased mobility and increased refinancing risk and the lack of funds. Financing environment weakening economic slowdown and rising risk aversion is the main Asian countries face negative rating factor.

The most important is that there is a reduction in the S & P credit Asian countries registered for political reasons and even political pressure. In the U.S. credit rating was cut, the U.S. President Barack Obama delivered a speech immediately. In this speech, Obama seemed very angry, he attacked the Standard & Poor’s, and has repeatedly stressed that the U.S. credit rating is always 3A.

Thus, the U.S. S & P lowered the credit rating of frustration, caused a lot of political forces in the U.S. offensive, and partly to quell the resentment of one of the best way is to cut some other competitor is considered to be the U.S. national credit rating. This might include both the number of Americans believe that China is a strategic adversary, may also include the U.S. electronics and automotive products, competitors, Japan and South Korea, of course, there may be economic ties with Japan and South Korea close in some countries in Southeast Asia.

Some euro area countries, Standard & Poor’s lowered the credit rating, causing the euro zone debt crisis, the U.S. credit rating cut, but also caused a huge global financial turmoil. The lesson, whether Asian countries Ye Hao, investment institutions and individuals, it is all may wish to take precautions to prevent the S & P shot of Asian countries.

March 11, 1931, Rupert Murdoch was born in Australia. Murdoch’s father was a war correspondent, later in the press, with Adelaide local tabloid “News” and four newspapers.

In 1952, Murdoch’s father died of heart disease, is studying at Oxford University Murdoch hurried back to take care of things, and inherited his father. In 1964, he founded the first national newspaper in Australia – “Australian.”

1968, to publish the contents of yellow known British weekly Sunday “World News” needs to change hands, Murdoch bought a majority stake in the newspaper. To make the paper a new life, Murdoch asked the newspaper published a large number of shocking news. Soon, the “World News” turnaround. Eight years later, Murdoch bought the “Sun”, to the 1980s, “The Sun” has become the UK’s largest-selling daily newspaper.

In 1985, the United States 20th Century Fox in trouble, its stock under Murdoch higher price, while the city took the opportunity to acquire the media company’s seven television stations, set up the Fox television company. However, U.S. law requires non-American citizens may also have newspapers and television stations. In order to build their own networks, Murdoch joined the American nationality.

In 2007, Murdoch’s News Corporation Youyi total $ 60 per share price of $ 5.16 billion and the group will be Dow Jones’ Wall Street Journal “income under its command. This time, Murdoch has already boarded the pinnacle, known as the “media geek”, “media industry Napoleon.”

Murdoch is the media business genius, but he understood the traditional sense of the news and far from serious news. Driven by commercial interests, Murdoch has repeatedly pursuit eye effect, many people think that the spirit of his departure from the press, publishing content to interfere too much. Murdoch’s acquisition of almost every newspaper, there is a group of high reputation of the newspaper reporters and editors to resign.

British “Guardian” reported on July 13, 2007 the Dow Jones group and the “Wall Street Journal,” sold to Rupert Murdoch’s Bancroft family, 13, said they regret the “Wall Street Journal,” sold more than silent grams.

Over the years, the huge News Corporation acquired in a second incident, the change in support of partisan turmoil and many enemies. Close hundred best-selling tabloid and give up the acquisition of British Sky Broadcasting’s decision seems to imply that Murdoch and News Corporation hopeless situation, the world will enter a crowded media “Houmoduoke era.”

July 13, News Corporation announced that its Board of Directors has approved a total of $ 5 billion stock repurchase program. News Corp. this repurchase plan in scale than the original $ 1.8 billion in a substantial increase. As investors worried about the “World News” ceased to News Corp. will bring further negative impact in the past four trading days, the News Corporation’s stock market value has shrunk $ 7.0 billion total. 12, the stock was down 7.6%, the highest since April 2009 single-day decline since.

News Corporation’s investment in recent years, cases are not very successful. For example in 2005, News Corporation bought the social networking site Myspace to 5.8 billion shares, but since then the site shares all the way down, Murdoch had to throw cheap shares last month, leading to loss of billions of dollars.

Insiders have speculated that News Corp. could face a number of easy to master the media storm, which has 80 old Murdoch resigned from News Corp. may also be the CEO position.

International Monetary Fund (IMF) Dominique Strauss, former president – on suspicion of sexual assault Kahn was arrested in New York and the resignation of the new president regarding the selection of a focus of attention.

IMF13 night announced the final race of the candidates for president of the organization, the French Finance Minister Christine Lagarde and the Central Bank of Mexico Agustin Carstens stand out.

The International Monetary Fund (IMF), the statement, May 23 launch of a new president of the selection process, the end of June 10 nominations, June 30 to complete the president of the selection.

French Finance Minister Christine Lagarde and the Central Bank of Mexico Agustin Carstens, a race (IMF), President of the final candidates.

Lagarde mixed

55, French Finance Minister Christine Lagarde to work resolutely and with determination. In 2009 she was the British “Financial Times” as the best euro-zone finance ministers, because she was in tackling the global financial crisis “measures proper time” in international financial regulation and a series of negotiations to show good diplomatic skills and formidable negotiating skills, strengthen the French position.

Washington, experts and scholars are more than clear that the IMF Lagarde is the best candidate for president. Lagarde has been present in Europe and African countries support the U.S. and major emerging market countries, although not yet made it clear, but there is no objection.

But Lagarde also inadequate, analysts pointed out that the weakness concentrated in the following areas:

First, as Lagarde on behalf of Europe, and Europe is a sovereign debt crisis to the IMF to borrow money too much, which may affect the impartiality of Lagarde.

Second, some people criticize the lack of formal economics Lagarde academic training.

Third, Lagarde, France faced a lawsuit in the case, if you can not settle, you may cast a shadow over the future of their employment.

In addition, people think IMF has too many of them served as president of the French. IMF official since the founding president of a total of 10, all held by Europeans, four of whom are French.

Carstens have weaknesses

Carstens, Mexico’s central bank 53. Domestic undergraduate he studied economics in Mexico, and later in economics from the University of Chicago master’s and doctoral degrees.

Carstens, IMF president announced after the contest, repeatedly stressed that he as an economist, and representatives of the characteristics of emerging economies. He also said, IMF president, the selection should be transparent and based on ability and experience.

Fellow, American Enterprise Institute, Claudio Deba Rumsfeld that Carstens is the biggest weakness, though he claimed on behalf of emerging market countries, but in fact he more representative of Mexico and some Latin American countries.

A condition of anonymity, said IMF economist, IMF greater choice for president is a political game. Which has veto power in the United States and the Europeans do not want to change the IMF as president of the United States by both the World Bank any pattern.

Turning may be unsuccessful, Carstens said he hoped his experience in emerging market countries can pave the way for future candidates. “If we want to have an open and fair selection process, we need to recommend a candidate.”

Carstens said: “I will not deceive myself that this is like a 5 to 0 to start the football game.” He acknowledged that his chance of winning slim chance Lagarde was “quite high.”

“Dark horse” out because of over-age

International Monetary Fund announced two candidates for president can say that people expected, but is somewhat surprised that the 67-year-old Israeli central bank governor Stanley Fischer does not appear in the list. Has an excellent academic expertise and institutions of the Bretton Woods system of high-level work experience, Fisher made immediately after the election to obtain the economic sector and the market participants sought after, some people think he is the Lagarde’s real opponents.

IMF press officer confirmed that the reason Fisher is not short-listed over-age. According to IMF requirements, age of first time candidates running for president should not exceed 65 years. This makes the Fisher this horse “dark horse” can only regret that out.

Xinhua Addis Ababa, May 24 (Xinhua Guitao Liang Shang Gang) of the AU Commission President Jean Ping said at a 24 second India – Africa Summit of the Forum opening ceremony, called on non-Indian in the Doha Round negotiations, agricultural development, trade, combating terrorism, climate change and other aspects of cooperation.

The two-day summit, the theme of “Promoting Partnership: a shared vision.” Jean Ping, Indian Prime Minister Manmohan Singh, as well as Ethiopia, Malawi, Burundi, Kenya and other African heads of state attending the summit opening ceremony.

The AU’s rotating presidency, President Obiang of Equatorial Guinea opened the meeting and thanked India for poverty reduction, achieving the UN Millennium Development Goals to help give African countries.

Singh said at the opening ceremony of the second India-Africa Summit is a historic session of the meeting is the first time in India and among non-host such a high African continent, the meeting will be printed on the development of non-cooperation and outlined the future of new blueprint.

He said that India Summit in 2008 the first non-Indian partnership with Africa since the development of satisfactory, but there is still further cooperation between India and non-space and potential. He said India is willing to share with African countries experience in national development.

Singh announced that India will in the next 3 years to provide 50 African countries billion credit line to help African countries develop, to provide 700 million U.S. dollars to Africa for the construction of new institutions and provide training programs, and to Ethiopia – Djibouti Railway Project to provide 3 billion dollars.

Singh has also proposed the construction of an “Indian – African Virtual University”, the further development of India and non-distance education project between the network and promised to provide 10,000 college scholarships.

After the opening ceremony, the Indian delegation to the summit of 15 African countries, the delegation held a closed-door meeting to discuss including the World Trade Organization dispute settlement and negotiation capacity building, and building a non-Indian Institute of Foreign Trade, and strengthen trade and investment relations between India and other non-issues.

India – India Africa Forum Summit is a non-cooperation in the political, economic and other areas of coordinate positions, an important platform for exchanges and cooperation, held once every 3 years. First India – Africa Forum Summit in 2008 in the Indian capital New Delhi.

The world’s population will likely more than 100 million end of this century – the United Nations Department of Economic and Social Affairs issued on May 3 “World Population Prospects 2010 revision”, said.

Population growth of labor for the production of development, but also led to food and water crisis. Behind the 100 billion figure is a worry or hi?

Population “dividend” of the “machine”

“Demographic dividend” means a country larger proportion of working-age population, low dependency ratio, for economic development and create favorable conditions for the population. It does not necessarily mean economic growth, but economic growth is bound to be there pushing additives.

Appeared in America after World War II “baby boom”, and later become a “boom generation.” Data showed that the “demographic dividend” of the 1970-2000 U.S. economic growth up to 20%.

Recent years, the BRIC countries, the proportion of young population, 60%, and remarkable economic achievements and the “demographic dividend” are closely related.

Goldman Sachs research report that over 100 million young people will be Brazil’s greatest asset the next 30 years. In India, the average age of the workforce was only 27 years old, some analysts said that in the next 5 years, due to younger population, India’s average annual GDP growth could reach 8.8%.

China’s “demographic dividend” is seen as a strong recovery in the global economy “stimulant.” Downward trend of world economy, the Chinese economy in recent years, the average growth rate of close to 10%. In 2009, China’s working age population ratio reached 72.35% of the total population to ensure economic growth in the demand for labor. A research institute, said 27% of China’s economic growth from the “demographic dividend.”

Population “liabilities” of the “danger”

“Dividends” in many cases and the “debt” as opposed to human beings enjoy the “demographic dividend” when the rich rewards, but also must face the people “liabilities.”

U.S. “civic Times” the world’s population growth and a series of “global tension index” link: With the population growth, pollution caused by human activities and frequent extreme weather; forests, land and other resources destroyed, worsening desertification; a large number of farmers into the cities, slums surged; food prices soaring, resulting in more than 30 countries to protest and riots occurred.

Compared to enjoying the “demographic dividend” of some developing countries, mostly developed countries facing problems of population decline and aging of that population, “dividend” after the “liabilities.”

A new survey shows that the Japanese government to maintain a good social structure, the ideal situation is for each couple gave birth to 2.48 children, but in 2008, the average fertility rate per couple is only 1.37. Declining population means that no labor, no consumption, under such circumstances, the recovery seems nonsense.

Like Japan, Europe developed a marked labor shortage. To meet the demand for labor, some countries began to extend the working hours of the elderly, retirement age. Europe is the continent most severe aging, the aging of the world’s 25 worst in 23 countries in Europe, and this aging will continue the regional position.

Population of the “knot”

Party in the enjoyment of population “dividend” of the sweet, the other in the bear population “liabilities” of the pain. Population increase and economic development, how should the relationship between the view?

Relevant United Nations reports are that the impact on economic growth is really important is the change in population age structure. Can population growth and social development is the crux of the problem.

Middle East, “youth bulge” and Europe’s “old inflation” phenomenon not solve the exposed parts of the developing education and employment, the development of the European economy is weak, people’s welfare can not be maintained as before.

Population “dividend” drifting away, more and more countries will face population “liabilities.” Swedish scholar Powell believes that ultimately depend on development of population issues to resolve.

In recent years, experts have proposed “reform dividend”, “bonus system” and so on, that is, increasing investment in education, improve the quality of labor, and tap the “demographic dividend” of the potential; further improve the social security system to cope with population aging; extension of the labor supply chain, the trans-regional, cross-border human capital allocation and so on.

Control over the global economy, the exchange rate is an important part of the battle, for inclusion in special drawing rights (SDR) and allow the yuan freely convertible worth the candle. Both the real economy or the virtual economy, China is not ready convertibility of RMB.

March 31, the international monetary system reform, G20 heavyweight high-level seminar held in Nanjing, SDR become a focus of controversy, the real exchange rate appreciation is still dispute.

U.S. Treasury Secretary Timothy Geithner said the U.S. support for changing the composition of SDR basket of currencies, but the countries want to join must have the flexibility in SDR exchange rate policy, independent central banks and allow free movement of capital. He stressed: SDR not the ultimate solution to solve the problem, countries have agreed should be adjusted SDR currency composition and structure, this adjustment is likely to be in China (exchange rate) reform, and not before. The United States needs the so-called market-oriented, the RMB is freely convertible, it would not support the increase of RMB’s international status.

China insisted, adding SDR is not necessarily a prerequisite for a freely convertible currency and floating exchange rate. China’s central bank governor Zhou Xiaochuan said that while the yuan by understanding other people also just missed joining SDR terms, China is also for this effort, but joined the SDR is not an absolute condition if we all welcome, we welcome into the early, But he also said that China is not in a hurry, be patient. Central bank Deputy Governor Yi Gang said, SDR into the currency requirements of the country share in global trade, and whether it is widely used, the RMB is not an absolute condition of joining SDR in the global currency is widely accepted also need a process.

China to float yuan in exchange for inclusion as a condition of SDR, worth the candle.

China Foreign Exchange Trade Center from the latest data showed March 31 reporting central parity rate of RMB 6.5564 to the dollar again hit a new high since the exchange reform. Since the dual exchange rate and inflation pressure, the Chinese real economy is already facing a greater impact, in the eastern coastal region can not export orders have been difficulties.

RMB exchange rate are the bottom line, that is, to take over the central and western regions to the east by low-cost manufacturing. If even the manufacturing sector in central and western regions have been destroyed by the high exchange rate, China’s economy will overnight back ten years ago. The reality is that a large trained labor force will not become an unbearable weight. In accordance with the National Bureau of Statistics data released by Ma Jian Tong, 2009, China’s three industry employment in total employment share of the population were 38.1%, 27.8% and 34.1%. Our primary industry is agriculture in the high proportion of secondary industry and tertiary industry the proportion is still low, which in the proportion of secondary industry, only the initial stage of industrialization that is equivalent to the U.S. 1870 to 1910 levels; third the proportion of industry is lower than in developed countries by half. Currently engaged in agricultural production, there is a million or more people who want to transfer out of the countryside, then the global market and domestic demand are very important.

In a virtual financial market, China is not the biggest names in international opponents, the real estate market in Europe and other gains, it can not cover in the futures, arbitrage, derivatives market crashed encountered shame.

Financial giant Hong Kong, China are already in the layout, and sent for their Zhechongzunzu mainland release of the portal. Hong Kong Securities and Futures Commission on March 11 released a report, as of September 30, 2010, the SFC licensed hedge fund managers of hedge funds managed in Hong Kong, a total of 538, equivalent to nearly 5 times the 2004 level. Soros last year set up an office in Hong Kong, the result of short sub-prime derivatives hedge fund Paulson fame also came to Hong Kong – March 3, the Hong Kong Securities and Futures Commission announced that Paulson, the hedge fund company has been in 2 21 issued by the Hong Kong Securities and Futures Commission Class 1 license to be allowed, and other companies sell their own funds, and to engage in brokerage business. The scale of funds under management of 280 billion one of the world’s largest hedge fund group altogether De Shao next studio layout ready to Shanghai.

To be sure, if the yuan freely convertible, it has experienced in the short term will be dropped from the rose to the roller coaster market, the Chinese economy is left to chicken feathers. Do not think the Western world really do not control the exchange rate from U.S. to Japan’s quantitative easing, direct intervention in currency markets, these show the market is forcing other people’s rhetoric, but he will not behave themselves by the rules.

Finally, even if the yuan into the SDR, U.S. dollar is still impossible to change the situation of dominance, SDR only unit of account is to balance the national debt means the world. For long-term goals, and give up control of the currency is silly. SDR has practical significance only, or the U.S. promise and reliable anchor currency pegged to the degree of Chinese control over the exchange rate have practical significance. The most realistic game is to negotiate the exchange rate to the global balance and prevent abnormal fluctuations in the exchange rates.

Mr. Li Daokui at this meeting that, SDR aspects of running there are still many details that need, such as the SDR in the individual transactions, the promotion of private transactions and other fields. RMB has been included in SDR, in the long run there is definitely a positive role, but currently SDR is not very popular in the international arena, China can not because of vanity and let the real short-term profits. This is a pragmatic statement. Mr. Xia Bin expressed a similar view.

Market-oriented way of RMB should learn from Germany, strict control of domestic inflation, according to the competitiveness of the real economy step by step, the magnitude of exchange controls relaxed, this is the only economy to avoid big ups and downs and reliable way.

United States, four states are trying to be seen as a scourge of marijuana legalization, and now is the legalization of marijuana has become a hot topic in North America. One of the most notable is California Proposition 19, which advocates the legalization of marijuana completely. If the original identity of this drug in California had been completely upset, really do not know the neighbors will have the ongoing anti-drug war in Mexico, what kinds of impact. The endless violence there, what is fueling this move, or root of the problem, or harmless? However, one thing is clear, U.S. Attorney Eric Holder has announced that state law no matter what changes occur, the Federal Ministry of Justice will continue to continue to prosecute marijuana users and distribute those. These photos record the following in the past year, involving medical, entertainment, and the issue of cannabis into legal disputes.

September 20, 2010, Oakland, California. A new member of Teamsters Rodriguez Avery potted cannabis plants being done to clean up care. The truck drivers union has absorbed nearly 40 new members, set up the first U.S. marijuana growers association.

April 20, 2010, San Francisco, California. In Golden Gate Park at the “hippie hill” celebration, a marijuana cigarette is. April 20 has become a marijuana advocate happy occasion, they gathered together in many parts of the United States to enjoy the pleasure of puff.

April 20, 2010, Boulder, Colorado, area. In celebration of marijuana smokers, about 12,000 to 15,000 people gathered at Colorado State University breath marijuana smoke.

October 22, 2009, which is a Portland, Maine medical marijuana users show homegrown cannabis buds. July 9, 2010, Maine Department of Health announced the approval of medical marijuana dispensary list of applicants.

April 20, 2010, University of Colorado. Cannabis Seller (left) is Dr. Reefer sold marijuana pharmacy marijuana packaged for customers. Colorado is to allow marijuana for medical treatment of one of the 14 states. In the past year, where the use of marijuana has become a trend, marijuana pharmacies, trade shows and related business has experienced explosive growth.

May 10, 2010 Monday morning, Billings, Montana area. A local pharmacy marijuana were thrown out the front door an incendiary, the fire was quickly extinguished, police and fire department launched an investigation at the scene. September 28, 2010, Billings City Council held a vote and decided to suspend new business of medical marijuana to extend for one year.

April 18, 2010, Aspen, Colorado area. In 2010, local police cannabis products exhibition held in Aspen, hotel lobby arrested a man. The man stole the marijuana trade fairs and stored in the basement stairwell of a large pot of cannabis. The Houe Si Peng police found the man did not marijuana medical license, he also has to be considered illegal in Colorado, the brass knuckles.

August 16, 2010, US-Mexican border city of Ciudad Juarez. This is the comprehensive development of lay organizations in Mexico, a family man abandoned baby, he did not name, may be domestic violence or victims of drug abuse. Mexican government and many independent groups in the study of organized crime, track “orphan drugs” number. The children’s parents or the party were killed in the war on drugs.

May 6, 2010, Colorado. In downtown Denver, at a press conference, covered wire in the introduction of women launched their campaign against marijuana. Mom asked for a tougher law against drunk driving. Currently, marijuana legalization activists are fighting for the support of mothers, they think marijuana safer than alcohol.