Blog 11- Greek Parliament, will they keep trying?-11/9/12

Prime minister Antonis Samaras helped the Greek parliament to approve a bailout method that was approved by 153 votes (out of 300). This inhaled fifty thousand protesters that basically acknowledged their dramatic deficit. "A lot of what we're voting on today are measures we should have taken a long time ago", but during the coalition, the deceivers were revealed by not obliging to legislative regulations. This deemed seven prime ministers out of office, but only for the good.
The approval was named the austerity bill which implemented an age limit increase in order to retire which would help diminish the deficit in the long-run. This effect will require more hours for them which in turn would generate more revenue considering their 25% unemployment. The statistic doesn't show everyone out of the workforce, but just the people who are looking for work.
The procedure could also encourage the unemployment because of the fertility rate diminishing at a current rate of around 2.1% with a total population of almost 800 million people. Samaras then promised that this cut expenditure will be the last for a while since they caused an economic shrink of 25% in the last couple of years. It might be the last, ut domestic income will plunge and depreciate the number of educational civilians as well as the rest of future generations.

http://www.nytimes.com/2012/11/09/world/europe/defections-shake-greek-coalition.html?src=twr&_r=0

http://www.bloomberg.com/news/2012-11-07/samaras-wins-approval-of-greek-austerity-in-race-to-secure-aid.html

Blog #10:European Manufacturing Declines- 11/2/12

America is impoverishing because of European's lack of manufacturing and factory production. This has happened three times in the past four days and is a good reason to believe in global economic contraction. Production was faced with weak demand causing domestic markets to decline in trade flows which also lead to a prevailing cutbacks in employment. Ireland in the Euro zone is the only country remaining without contraction. Britain is doing slightly as well, but now euro zone finance ministers are now expected to create new adhocracy and innovative ideas to help prosper the euro-zone. Their decisions include the nuisance about Greece and Spain as well. The U.S economy in summary seems to slowly recover and create more jobs (171,000 added since October and September). U.S unemployment is now at 7.9 from 7.8, but the U.S is still outpacing Europe's slow recovery. The European union will help modify these scattered standards while the slipping rate is now dotted at .7%. 


http://www.nytimes.com/2012/11/03/business/global/daily-euro-zone-watch.html?ref=global

Blog 8: Eurozone's Potential Recovery Methods-9/17/12

 First off, a reward for the best designed economic plan to help seize the shadowy income rates and inflation of the eurozone will get to cross off "Winning a Wolfson Prize" their bucket list. The reward comes with $250,000 along with great enrichment to one's credibility.
Small countries like Greece might end up leaving the eurozone to develop their own essential currency. The seventeen "unsure" countries could potentially end up on the losing side due to inflation and being less developed. However, despite the cooperation of LCDs, the eurozone must try to create tactical procedures in case if consequences like these were to negatively impact the European's economy. As said before, small countries, like Greece in particular will suffer a depreciation value in their new currency, but will generally be benefited by the accelerated growth rate which gives an acceleration to their currency ratio. They also have an advantage to evade from the crippling economic downfall of the euro. Countries before have left their primary currencies and have not effected powerful currencies like the Euro; 69 in fact. Evidently, countries who leave will receive just little devaluation and slight injury in the short-term, but will then not regret their departure in spite the long-term.
Another potential problem could be a freeze in the eurozone by countries breaking up even though there are trillions of eurozone contracts. The top 17 eurozone leader would discuss a way to develop smaller countries' currencies under a different contract. This disorderly conduct might disrupt or potentially freeze other countries due to the offset and fast-paste maneuver within regards of the financial system.
Lastly, since the eurozone is compromised of 17 countries, some could potentially be withdrawn into a new financial settlement more appropriately, like splitting an egg. The debt that they are focusing on is what the evening out is subjected to, to divide the debt. This in turn will let countries prosper more faster and have more time to create ideas to gain more annual retained earnings.



http://www.bbc.co.uk/news/magazine-18193962

I.M.F. Urges U.S. and Europe

A three day meeting in Tokyo brought officials from the I.M.F. to urge the European and U.S. to take quick and aggressive action to clean up their financial stance.  The economy of the richer nations was down and only bringing the poorer nations down more.  The impact of the U.S. and Europe were having a negative effect on the more economically challenged countries who rely on exporting their goods to help lift them out of poverty.  Asia was noted as the one who is carrying most of the weight, and wouldn't be able to keep this up.  Although not all news was negative, there were signs of the financial crisis decreasing, but still was not moving up into positive numbers and effects.  One of the largest topics was about the Obama administration needing to come to a quick agreement on raising taxes and cutting spending in order to counteract this "fiscal cliff" that the nation was following due to the 2008 crisis.  U.S. is the largest economic nation and it's actions will effect all.

In the European Union, the French have signed agreements to follow a budget deficit treaty.  While the leader of France was originally against this treaty in his campaign, he has recently decided to back this treaty, because of the positive effects that it will have on Europe.  France is the second largest economy in the Euro Zone and it is important for them to lead in the right direction for economies like Germany.  This country is taking the steps needed to follow the suggestions from the I.M.F. and turn the Euro economy in the right direction.  "The treaty obliges the 25 members of the European Unionwho signed it in March to limit their deficits to prevent further debt crises. Countries are supposed to keep their budget deficits to 3 percent of gross domestic product, and countries with high debt must keep their structural deficits below 0.5 percent of gross domestic product. Only Britain and the Czech Republic refused to sign."http://www.nytimes.com/2012/10/10/world/europe/french-assembly-approves-european-budget-discipline-treaty.html

Obama's plans for the new term has been to reduce the spending especially on military funding.  His ideas are to use the money to go toward funding schools, R&D and clean energy.  These proposals come with a huge savings to the U.S., as much as 476 billion dollars.  Not only is this saving money on war efforts to go to much more needed causes, but it is bringing families home, to the U.S.  "President Obama’s final budget request of his term amounts to his agenda for a desired second term, with tax increases on the affluent and cuts in spending, especially from the military, both to reduce deficits and to pay for priorities like education, public works, research and clean energy." "he budget would use projected military savings — a gimmick, Republicans say — to help pay for a six-year, $476 billion program to modernize the nation’s transportation network." http://www.nytimes.com/2012/02/14/us/politics/obama-budget-raises-taxes-on-the-rich-to-spend-on-jobs.html

http://www.nytimes.com/2012/10/14/business/global/imf-urges-us-and-europe-to-act-decisively-on-debt.html?ref=europe&_r=0

More Reforms Expected to Boost India's Flagging Economy

India has made plans to open the doors to foreign investors in there multibillion dollar insurance premium and pension industries.  Currently investors are only allowed to invest up to a capped 26% for the insurance and it's closed completely to foreigners for the pensions.  They are also planning on making a way for people to report their earnings online, but want to be sure to establish an oversight committee to be sure it will be running legally and smoothly.  Other proposals are for the Indian government to come to an agreence on allowing companies such as Wal-mart enter their goods market.  There is a little controversy over this topic and the results could be the look more down then up.

Wal-mart is a multibrand retail industry that some have praised, and others have protested against.  While India is proposing the idea of wal-mart, there are good points that keep the fight to keep them out acceptable.  One anti-walmart activist proclaims that large retailers such as wal-mart just aren't good for small scale economies.  "Large-scale retailers had a devastating affect on small shopkeepers, workers, farmers and consumers in developing and developed countries. We are working against the relaxation of foreign direct investment without any protection to smaller communities. In Thailand, due to tremendous easing of foreign direct investment norms, 60,000 small traders were forced to shut shop. We fear the same will happen in India if big retailers come here." http://www.rediff.com/money/2007/apr/23inter1.htm

But speaking on the terms of these pension and insurance plans will benefit a lot of people who are working abroad, in particular women.  These investments are meant to help people to save money when they plan on returning to India to retire.  About 20% of the people working abroad are women and they are usually paid less than men, so this will deem to be a big help for the female Indian population. http://www.pancardnri.com/blog/how-to-invest-in-pension-life-insurance-fund-in-india-plif-for-nris



http://india.blogs.nytimes.com/2012/10/04/more-reforms-expected-to-boost-indias-flagging-economy/

blog 5; I.M.F Praises central Banks

I.M.F. Praises Central Banks, but Sees Slowing Ahead

I.M.F. managing director, Christine Legarde, speaks on the progression of the world in economic terms.  She is announcing the cut in the previously estimated growth rates in the U.S. as well as in the euro zone.  The central banks have still played a helpful role in helping global recovery, but these countries haven’t made quite the climb that was predicted.  The original predictions were 3.5 percent in 2012 and 3.9 in 2013 but will be reanalyzed with a joint meeting of the World Bank and the IMF in Tokyo next month.  Legarde made sure to point out that the ideas of raising taxes and cutting spending in the U.S. by their political leaders wasn’t a wise one, and impact the world, not just the U.S. alone.  

The economy of the world has reached it’s highs and lows in every country.  Before there were organizations such as the world Bank and the I.M.F the world took a longer time to recover from economic fall.  These organizations have helped countries climb out of depressions and helped them in recessions.  The worlds top economist have used their knowledge to predict outcomes of countries leaders plans for attack.  The U.S. and the euro zone have been trying to recover for years now.  The feedback that world leaders like the managing director of the I.M.F. Christine Legard have can help to save challenged countries, like the U.S. from making matters worse.  It is clear that countries need assistance from others that are looking from the outside in and have the expertise to guide in the right direction and steer away from the bad decisions.  Its a bit startling that these experts have suggested that the plans from the political leaders in the U.S. should sit back and reanalyze their ideas.  Are they going to take this advice and alter their ideas for recovering the countries economic stand?  The future is in the hands of these leaders that the citizens have allowed to be in control and make those decisions.  azxaw1

http://www.nytimes.com/2012/09/25/business/imf-sees-economic-deterioration-ahead.html?_r=1

Blog #2: China Cannot Wait Until Christmas- Steven Sciacchitano 9/7/2012

China is now subjected under a diminishing growth rate due to economic complications from the effect of Europe's financial crisis. Pan Junping is concerned that, because of this, he expects a thirty percent decline in annual sales from his toy shop company in Yiwu city, in eastern Zhejiang province. An economic report due on September 10th will show that China is still increasing at a 2.9% income rate, but previous years show a paramount of an 18% income accumulation. Without increments of annual income, China cannot support its goal to provide urban infrastructure and increase social welfare.

In just two days, China counteracted their problem with solutions of investing in their own infrastructure with over $150 billion to build new highways and airport runways. The structural development will benefit China commercially to promote enterprise and increase annual output. This infrastructure solution will enlighten not only themselves, but prove to other countries that implementing accessible routes to quicken enterprise will be greatly appreciated in the future. If this investment works, it could create a prime example of a nations' reinforcement to defeat national crisis.

To understand the importance of China's economy, companies such as Wall-Mart outsource jobs within their nation to gain more profit from the lower wages their workers obtain. This in turn helps Wall-Mart acquire more profit which creates more tax benefits to generally assist America financially. Since China's economy is slowing down, America and other nations such as Europe who cooperate with Chinese Solar Panels will also seem to trickle down because of the mass production China produces to help global economy. If not only China, but any other nation falls, it will disservice every other nation tremendously. The severe impact will cause nations to utilize more resources for production and for globalization to shift in terms of disregarding another non-dependent country . Controversially, the results will end up with nations using more scarce time to innovate products and generate income.

In my opinion, globalization has to mix harmony along with international integration and human connectivity, just like a family gathering during Christmas.











Sources:
http://www.bloomberg.com/news/2012-09-06/china-s-goal-of-10-trade-growth-drifts-out-of-reach.html
http://in.reuters.com/article/2012/09/07/china-economy-idINDEE8860E220120907

Blog 1: Government Population Control Sustains, Steven Sciacchitano 8/30/12

                     Some people bite their nails and some people don't. Some people wash their hands continuously. There's nothing wrong with doing these things. It's not immoral, harmful, but nor prized or complimented. Everyone has a so-called "second standard" or habit to remedy their infatuation. Just like cigarette smokers; there is nothing obscure about it, but there are definitely risks involved. Someone biting their nails might give them a bloody finger or maybe a little cold, but it sure won't be near enough as a risk as one cigarette could trigger. It is said that every eight seconds an individual dies from tobacco use. A third of the male population in the world smokes, mostly in Eastern Asia. America does not even reach the top ten of the world's highest smoking population and is a prime example for the inclination of tobacco use. The Center of Disease Control and Prevention estimates about forty five million adults in the United States smoke cigarettes; and that's just adults. Fifteen percent of Americans might not be a tremendous amount and might slack some acknowledgement. Despite children, there are 18.7% of which people smoke out of 240 million American adults. That's almost twenty percent of a powerful nation under the influence of tobacco. The World Health Organization(W.H.O) predicts that up to eight million people will die each year by 2030 if the government does not take action in public safety.

The United States is a great way to exemplify the usage of tobacco by explaining how the F.D.A (Food and Drug Administration) tried pursuing risk health management-implementing graphic images on the back of cigarette packages. Controversially, it was said that the F.D.A violated corporate free speech rights which raised questions about government authority of forcing companies to go beyond actual limits of just advertising their company. Unfortunately, the F.D.A could not prove how graphic images would decrease the number of smokers. Although the case was defended and won by five tobacco companies, Judge Judith surprisingly agreed for the graphic illustrations to be necessary. 

The Food and Drug Administration was given broad jurisdiction in 2009 over tobacco companies and authority over labeling. Fifty percent of cigarette packs are covered with warning labels at the top, and other printed advertisements comprise of at least twenty percent of labeled illustrations. At least something can contribute to lung safety. 

About 1.3 billion people on Earth smoke cigarettes which is the second major leading cause today and by far one of the most avoidable. 

Sources:

http://www.forbes.com/2007/12/04/smoking-africa-asia-biz-cx_tvr_1203smoking_slide_12.html?thisSpeed=undefined

http://www.nytimes.com/2012/08/25/business/tobacco-groups-win-ruling-on-graphic-cigarette-warnings.html?_r=1&ref=advertisingandmarketing

http://www.msnbc.msn.com/id/48779505/ns/health-addictions/#.UD7m1MFlQ8w

Last Blog! The Pain in Spain could hit worldwide economy.

The Pain in Spain could hit worldwide economy.

Anna Sophia Riley April 22, 2012

    This article is about Spain, and the inevitable failing economy there. The article basically states that with Spain in an ever-deepening financial crisis, the entire European economy is facing a terrible hit, and will inevitably cause the entire global economy to suffer from new economical problems. Not only would this affect Europe in many ways, including job opportunities, (which means unemployment statistics,) but it would also cause a lot of social issues that would only contribute to the current social unrest the union is facing now, at it's current state. This downfall would also affect the United States in many ways, both affecting the country through the global issues in the collective economy, and would in fact cause social and political issues here, including the presidential election coming up after the summer.
    Spain is basically suffering from problems similar to those suffered in the United States. They experienced a housing bubble burst just like the US, causing recognizable problems, such as government deficits and enormously above-average unemployment numbers. The responsibility of Spain, and Europe, is to find an at least temporary solution to this problem, before chaos ensues, and if affects the rest of the union group, and the world all over.
    This problem is particularly terrifying to anyone who has spent the last years paying attention to both the United States national economy, and the global economy. Neither are in great places, and problems like this aren't doing anything but perpetuating people's fears that things aren't going to get better anytime soon.
    In conclusion, I'd like to say that I chose this article as my final blog article because it obviously relates to my other articles, but most of all, it supports what I said in my project presentation, that one economy affects another, and all economies affect each other, in many ways, and for many reasons, despite national borders, bailouts, or political promises by any one nation. The global economy is a thing to be managed, and at this point in time, not much of the world is doing a very good job.

http://www.washingtonpost.com/opinions/the-pain-in-spain-could-hit-worldwide-economy/2012/04/22/gIQAQCfiaT_story.html

Blog #13: Obama seeks to confront oil market manipulation

This article is about what Obama is going to do about the gas prices. Obama will ask Congress to implement a plan that entails strengthening federal supervision of oil markets and increasing penalties for market manipulation. This is mainly because the republicans have been hammering him on his energy policies, because the political cost of high gas prices is on the president. Obama plans to turn the tables on Republicans by taking aim at Wall Street's role in the oil price chain. Republicans are also trying to place limits on the financial regulation legislation Congress passed in 2010 over Republican objections. Though the House Republican budget, which calls for sharp reductions in government programs, does not specify reduction in spending by the trading commission, the administration officials said that if the cuts were applied the commission would lose more than five times what it spends on regulating energy markets.

I think that the fact that the government is allowing offshore drilling will decrease prices because the supply curve would shift a bit to the right, but this is only for a little bit. I have no idea what exactly "market manipulation" is because the article did not discuss it. This is probably another example of how vague the media is when reporting important situations like this. We just discussed today in class about peak oil, so that is why the increased supply is only temporary. I do believe in the Peak Oil theory and I do believe that we will see the end of oil pretty soon. I also find it surprising and pretty amazing how every time we have been near a Malthusian catastrophe and we have invented new technologies to get out of it. I wonder what new technologies would be invented to get out of this one. But regardless of policies and what the politicians say, they will only be prolonging the oil shortage effect and they better be thinking of implementing alternate energy in our society such as solar.

http://www.cbsnews.com/8301-250_162-57415066/obama-seeks-to-confront-oil-market-manipulation/

Blog 12: If oil prices drop, how much will that boost the economy?

If oil prices drop, how much will that boost the economy?

    This article discusses the price of oil, and how that has an affect on the rest of the economy. The article states that oil pricing has stabilized, and might be on a downturn. The theory is that with a drop in the prices, the United States economy might see some growth. They state that the growth might not be as significant as many hope, but would still be noticeable. What many people don't think about when the price of gas is a source of conversation is how gas prices affect people outside of their local gas stations. Oil prices raise the price of anything that uses this product. That means that utilities are higher, etc. It also means that people are providing less to the auto industry, because they cannot afford, or do not want to purchase new cars. The theory behind this is not simply that as soon as gas prices are lowered, that the auto industry etc. will see an immediate boost, but is instead that while people might feel more comfortable and have a little more to spend, the state of the economy will not rise greatly, and people have become more cautious and are less likely to simply rush out and make brand new automobile purchases. This article is positive about the state of the economy, and how the United States might see a slight rise, but does make some comments about how gas prices are unsteady, and due to global issues, these predictors might be somewhat uncertain regardless.

    This article is significant to the global economy in many ways that I have discussed in previous blogs. Again, the United States is a big contributer to global spending, and throughout the economic crisis, trade and spending has changed both within the country and outside our borders. People are timid, and unlikely to trust a stabilizing economy without some guarantees that things will take a turn for the worse again. This article also brings up a good point. Any instability and extra tension in the middle east could very well put a strain on the oil business, therefore causing a rise in prices again. The price of oil is something that changes on a daily basis, and cannot always be predicted accurately. This scares people, and has a causal affect on the United States and global economies.

http://www.washingtonpost.com/blogs/ezra-klein/post/if-oil-prices-drop-will-that-boost-the-economy/2012/04/13/gIQACcF4ET_blog.html

Blog #12: Gas prices, now averaging $3.92 a gallon, may have peaked

 This article discusses the average gas prices this year compared to in the past. In the past, the gas prices have peaked shortly before memorial day. But according to senior analyst Patrick DeHaan, "By the behavior of the market, things are just running out of steam; barring any major event — refinery problems, Iran — I think prices have peaked." He also said that the national average would lower to 3.7 dollars a gallon by early May. On the other hand, the federal Energy Information Administration predict that gas would peak at 4.01 dollars in May and average at around. 3.95 dollars a gallon in September. There is also optimism that the political tensions with Iran — which boosted crude oil prices by $15 to $20 a barrel on speculative trading — could soon ease, Milne said. Gas prices in some of the nation's priciest markets, such as Los Angelas and Chicago, have already dropped 12 to 20 cents a gallon. That adds "confidence that the overall market is heading down," said industry tracker Trilby Lundberg of the Lundberg Survey. "Even if demand were to surge, we have flush supplies, a lot of refining capacity and repeated assurances that Saudi Arabia would step in and hike production if there are problems with Iran."

I think that this article is very optimistic that there are predictions of the oil prices going down. It does not seem that way at all right now. The only way I see the oil prices going down is if there is a switch over to another energy source, like how Iran is planning to switch over to nuclear soon. If the demand for oil decreases (in places like the United States), the supply will increase (due to other countries cutting down their use of oil) and therefore the price level will fall. It will be interesting to see how accurate their predictions are when we are in the month of May and September.

http://www.usatoday.com/money/industries/energy/story/2012-04-10/gas-price-surge-appears-over/54160854/1

Blog 11: Public Sector Layoffs Continue Despite Economy's Signs of Life

Public Sector Layoffs Continue Despite Economy's Signs of Life

    Much of the public sector relies on money from citizens, and members of the community. In this article, the community discusses relying on the money from much of the residential real estate. Despite some growth in the economy, real estate still suffers from the recession and therefore Virginia has been forced to cut public sector jobs twice. The state is now on the verge of a third round of job cuts. They are not recovering in the way that they had hoped. The state has suffered dramatic losses, and hasn't seen numbers like this since the 1950's. If the numbers were reversed, the article states that there would potentially be up to 1.2 million additional public sector jobs in the United States today.
    The United States economy affects the global economy in that the United States contributes greatly to international trade, buying, selling, etc. The growth of the U.S. economy both public and private would have a positive impact on the global economy, and could potentially improve poor economic scenarios happening internationally.
    The article goes on to give examples of firefighters that lack the ability to provide services as timely as they might've before, due to layoffs and job cuts. This is how the layoffs in the public sector affects the general population, and is a great example of why it is important to maintain and grow our economy. The article also uses Des Moines, Iowa as an example of a city that did rather well through the recession. It states that while the area did a good job maintaining somewhat low unemployment rate, they too have been forced to recently lay off a number of public positions, due to a loss in property value.
    It is important for the United States to continue to work to improve the national economy, as it does affect the global economy. It is very important for local and state economies to improve, to both provide jobs and help position communities to improve the values of the local areas.

http://www.huffingtonpost.com/2012/04/08/public-sector-layoffs-continue-despite-recovery_n_1410688.html

Blog #11:Crazy gas prices driving German consumers mad

This article discusses the impact of rising gas prices in Germany. Normally, German drivers only encounter severe congestion on their famed autobahns. The traffic flow is often hampered there by the large number of construction sites regularly installed by the German government to keep its state-of-the-art highways "in order." When the prices are lowered, many inner-city gas stations in Germany see drivers pull up in hordes. Given costs of up to 1.70 Euro (and more) per liter of unleaded fuel – the equivalent of $8.56 per gallon – it should come as no surprise that Germany's drivers have become bargain hunters. Officials say, "Frustration over high fuel costs has also set off a high level of fuel thefts across the country." The statistics indicate that criminals are mainly targeting fuel depots, heavy construction machines and large trucks. Police have recorded incidents in which criminals have drilled holes into gas tanks of private cars or used stolen or fake license plates so that they can remain unidentified at gas stations when they drive off without paying the bill. Politicians in Berlin suggested that oil firms should be required to warn of new fuel prices by 2 p.m. on the day before the change, and the altered prices would have to remain unchanged for at least 24 hours. Prices could also be stored in a central public database under a new law, which would give motorists the ability to check the cheapest pump prices in their vicinity with the help of the Internet or modern smart phones. Yet, a decision on a possible new law is not expected before the end of the summer, but some believe it will not come at all.

I usually stick to the oil prices in the US and the Middle East region, but I am particularly intrigued by these fuel thefts occurring in Germany. Yesterday I attended a colloquial in which a visitor from Germany came in and spoke about ecotourism in Germany. She spoke a lot about the culture and the German attitudes and I find it appalling that the Germans are finding a way to steal gas, very creative on their part! But I am not sure about how the new polices about announcing the new gas prices will work if the law is implemented; I personally do not see them as being really effective seeing that the people will probably continue to steal the gas since it has nothing to do with decreasing the prices.


http://worldnews.msnbc.msn.com/_news/2012/04/03/11000226-crazy-gas-prices-driving-german-consumers-mad

Blog 10: Will Greece Abandon the Euro? Markets say yes, within 3 years.

Will Greece Abandon the Euro? Markets say yes, within 3 years.

    Greece is in trouble economically, and it's causing speculation about how long the Euro will actually last in the country. The risk is that they leave the Eurozone, but many are skeptical and propose logistical problems, if Greece were to choose to leave. The Eurozone has placed many very strict demands on Greece, in order to improve the situation, and help Greece stay within the Eurozone. The problem with these requirements being implemented is that it is happening in tandem with Greece's failing economy. Many Greek people are struggling, and this number is not decreasing as of yet.

    Greece is positioned to make numerous changes to their government during the spring season. The current leading party will likely see a huge decrease in authority during the next election, which will lead to a new powerful group within the government. This set of elected officials are part of a party likely in support of leaving the Eurozone. If Greece does not make the decision to detach, they also are at risk, and might be kicked out regardless. While this is what many predict for Greece's future, there are no guarantees, and only time will be able to tell if Greece can or will remain part of the European Union.

    I have written about the European economy a number of times throughout my blog entries, and it is easy to see how the struggles of one area effect another. Spain is also part of the EU, and is also struggling with unemployment. Many speculate that Spain will eventually see some sort of downfall, much like Greece is suffering from at this time.

    The EU is suffering from what many believe to be an inevitable major downturn. The slowing, weakening economy has effected imports and exports, thus causing changes in the global economy, and profits for countries handling production of goods they would typically sell to Europe. A failing economy in Greece is linked to a failing economic system throughout the entire EU. The problems in the EU inevitably effect the global economy, which of course, includes everyone who is part of the global trade system etc.


http://news.yahoo.com/blogs/signal/greece-abandon-euro-markets-yes-within-three-years-181559254.html

Blog #10: GOP blocks Obama’s effort to end tax breaks for Big Oil

This article discusses the recent oil crisis and efforts at the national level. Obama called to Congress to end tax breaks for oil companies in a populist speech he delivered that sought to turn the blame for gas prices, currently nearing $4 a gallon, back onto his Republican critics. “With record profits and rising production, I’m not worried about the big oil companies,” Obama said. “I think it’s time they got by without more help from taxpayers who are having a tough enough time paying their bills and filling up their tanks.” The administration apparently has worked to arrange a global release of emergency petroleum reserves to reduce the price of oil, according to reports from French government officials. French Prime Minister, Francois Fillon, said there was a “good chance” that the United States and Europe would tap their reserves. But experts are divided over whether now is the right time for countries to tap their strategic reserves because the reserves were designed to be used in the event of a severe supply disruption, not merely to combat high prices. The biggest question of all, however, is how much of an impact on prices a strategic release would actually have.

This article proves that Iran is not the only factor of the rising oil prices. Some of my past articles have been about the potential of a nuclear war in Iran due to their nuclear advances, but this articles shows that that is not necessarily the only factor of increasing prices. Yes, this is one factor that brings up many issues, but it is not the sole cause of the recent spike in prices, as some of my past articles states. This itself shows the inconsistency with the media, therefore questioning the factual content of the news reports because the media reveals only what it wants to reveal. Anyway, I do agree that this is not a reason to tap into our resources. As the article mentioned, it is only meant for an emergency, not to lower the prices. After all, the US has about 2% of the world's oil, but consumes about 20%, so it is a better to conserve and save that oil for the future as we do not know what the future brings.

http://www.washingtonpost.com/business/economy/gop-blocks-obamas-effort-to-end-tax-breaks-for-big-oil/2012/03/29/gIQAbuTwjS_story_1.html

In Spain, economy poised for rocky ride. (Blog 9)

http://www.bendbulletin.com/article/20120324/NEWS0107/203240367/

In Spain, economy poised for rocky ride.

This article is about the Spanish economy, and how it is posed to meet it's downfall in a way that resembles the Greek economy. The article discusses how Spain is not yet in need of a bailout, and in fact looks to be somewhat fine on paper, but it continues, and goes on to say that Spain will inevitably need a bailout at some point. The country is not only struggling to support it's workers, but businesses entirely aren't surviving, and lending is starting to become a big issue as well. In a situation similar to the United States, a lot of the young people looking for work aren't finding any, and almost a quarter of the country's workers are without employment. This article talks about how much of the debt in Spain is private, and not owed publicly. It is above 200% of the gross domestic product, and is one of the highest in Europe in general. The government in Spain knows that the country will not meet goals for this year, and they have taken into consideration the effects this will have on the country as it is not far behind some of the most problematic places within those in Europe. Much of Europe is suffering from issues like this, the economy of the Eurozone as a whole is not great, but Spain seems to be falling further and further behind, and also seems to be making less and less progress repairing the situation. With unemployment at such high levels, and businesses owing much more than they can imagine paying back right now, the fate of the country isn't looking too bright. Hopefully with time, Spain will avoid such major issues as those facing Greece.

Blog #9: Saudi Arabian oil minister says kingdom ready to boost output

This article continues to discuss the oil situation. Even though Obama has been urging more action for alternate energy, the world is still focused on the oil produced in Saudi Arabia. This article states that Saudi Arabia will be producing a lot more oil in the future. Its council of ministers asserted that excessively high petroleum prices threaten the global economy and that a downturn would lead to an abrupt pullback in prices, therefore hurting the interests of oil exporters and consumers. In fact, Last week, the transport arm of state-owned Saudi Aramco booked at least nine supertankers, far more than usual, for shipments to the United States. But, the oil markets are still unimpressed; expensive crude is driving up the gas prices instead. Also the concern about rising demand and tensions with Iran continues to offset Saudi assurances and any increase in U.S. production. New restrictions on transactions with Iran’s central bank are pinching Iranian foreign trade, including crude oil.

Bill Day, a spokesman for Valero, the largest U.S. oil refiner, said: “To us it would make more sense to have the Obama administration approve the Keystone pipeline to bring low-cost oil from Canada rather than rely on imported oil from the Middle East, but the more oil the better.” I personally think that no matter the speed of drilling and producing more oil, there is still a dire need for alternate energy. The sooner the public realizes it and takes action, the better it will be for our global society in the long run. Moreover, this article emphasizes the fact that oil prices are not going to decline despite the fact that Saudi Arabia plans on producing more. Also, consumers "are not interested in buying more than they are now." Therefore, there is really no need to be producing so much oil. Since prices are adjusted on a monthly basis in Saudi Arabia, it could lower the prices in order to persuade more people to buy more oil. Not to mention the controversial nuclear testing in Iran. So, there is a lot going on in the oil market that could have drastic changes economically, politically, environmentally, and thus socially.

 http://www.washingtonpost.com/business/economy/saudi-arabian-oil-minister-says-kingdom-ready-to-boost-output/2012/03/21/gIQAW0DfSS_story.html 

Service Economy Keeps India Afloat

      This article is about India’s poor industrial growth. It discusses the Indian economy, and how poor performance and growth in this sector is dragging the whole country down. The article talks about India’s service workers and service jobs. It explains that India’s economy is being saved by the service industry. Their economy is expected to grow slightly within the next year, but not by much until after 2012-2013.  They are only expected to maintain, (much less grow,) if oil remains stable, and the world economy continues to stabilize. The article also explains that the country has been forced to deal with inflation, raised interest rates, etc. which has affected industry. The country has decided to invest in power, air transport, roads, etc. which is going to cost nearly $1 trillion dollars, and they have also stated that they need to be more innovated in the way they invest in industrial progress.

      This article is significant to understand the way global economy works, because it does a good job at illustrating how the world economy affects other countries, and vice versa. India is making some decisions that are important to India’s infrastructure, as well as suffering from a world economy that isn’t entirely stable at the moment.

http://india.blogs.nytimes.com/2012/03/16/service-economy-keeps-india-afloat/

Blog #8: Sanctions choke off Iran oil output

This article discusses the decrease in the output of Iranian oil. According to the International Energy Agency (IEA), the country's crude production fell by 50,000 barrels a day to 3.38m b/d in February; the last time it was that low was in late 2002. Late last year, the IEA predicted that Iranian production capacity would decline by 890,000 b/d to just under 3m b/d by 2016 as a result of tighter sanctions. Yet it is still possible that the Iranian output of oil could fall even further. In its monthly market report, the IEA said that from July onward- when a European Union oil embargo comes into effect- Iranian exports could be limited by about 800,000 b/d to 1m b/d, about a third of the current total. Moreover, the unscheduled production outages from South Sudan to Syria have reduced global supply, despite the fact that Saudi Arabian output is running at a 30-year high. That, combined with geopolitical issues about Iran, has pushed oil prices up 20% since last December. And Obama still firmly states that, "I'm determined to prevent Iran from getting a nuclear weapon."

Daniel Poneman, the US deputy secretary of energy, recently visited Kuwait. "There is a need for more production as oil prices are not consistent with the global economic recovery," he says. Iran is one of the world's greatest hydrocarbon powers, with the largest conventional oil reserves after Saudi Arabia and Venezuela and also contains the biggest natural gas reserves after Russia. But its oilfields are old and dwindling, with annual rates of decline in some cases exceeding 10%. This is the main reason for the decrease in production. The oil is Iran's lifeline and the drop in output would further increase the economic pressures on Tehran just as a power struggle is under way between competing conservative factions following the parliamentary elections on March 2 mainly because oil exports provide half of Iran's government revenues and account for 80% of the country's total exports. In the US, economists fear rising petrol prices could jeopardise the country's slow return to economic health. We are currently in a growth recession, but we have the potential to do worse in the future than now. The more production Poneman is talking about would help us recover faster because it would show to to our people (and the world) that we are finally recovering.

http://www.cnn.com/2012/03/14/business/iran-oil-output/index.html