economics demand/supply watch!!!!!!!!!!

Infltion and Deflation ( i can't copy diagrams because i've mac )

Infation : defined as a general increase in the price level over a period of time. For more tight people, Inflation - when the prices go up.
Cost - push inflation is caused an increase firms costs due to rising input prices ( wages, raw materials, energy, etc..)
Demand - push inflation is caused by a lot of demand chasing too few goods and services.
 One clever and educational humen said that : Inflation is one of the "evils" in macroeconomics. In fact, price level stability is one of the three main goals of macroeconimics policy. Inflation's effects iclude
* Loss of purchasing power - all prices rise and no income, in real terms people becoming poorer. "real income" is nominal income minus inflation.
* Loss of savings. Savers are negativly effected to inflation.If you put $1000
in the bank at 5% interest today, but there is inflation of 10% in the next year,
then you will have actually lost 5% of your savings. The real interest rate is the
nominal interest rate minus the rate of inflation.
* Higher interest rates for borrowers: In times of high inflation, banks will
raise the interest rates they charge borrowers. A lender charging 4% interest
when there is inflation of 6% will actually be paid back in money worth 6% less
than the money originally lent. To maintain profits, banks must charge a
higher nominal interest rate than the rate of inflation, making it more costly
for firmst and households to borrow financial capital
* Effect on international competitiveness: High inflation at home makes
domestic output less attractive to foreigners, and imports more attractive to
domestic consumers. This could move a country's trade balance towards
deficit.

  Deflation
When the prices go down is sound good, people who don't know about deflation become fools!

*Unemployment: Low demand for goods and services means firms must lay off workers.
*Delayed consumption: With the expectation of future price decreases,households will increase savings and decrease spending. This could lead to a deflationary spiral.
*Declining investment: If firms expect less demand for their output in the future, they'll invest less now, which could result in slower economic growth.
*Cost to borrowers: The real debt burden of borrowers increases as the price level falls. Bankruptcies result as borrower's incomes fall while the value of
the money they must pay back increases.

"East Asian Tigers"

Intersting to know...
THERE ARE MANY similarities between Hong Kong and Singapore. They have both enjoyed high rates of economic growth over the past three decades, averaging six percent a year in real terms. They have made the transition from poverty to newly industrialized economies in a relatively short time. Both started off as British colonies, with British legal and administrative systems, and made their living as trading ports serving their respective regions. Singapore has been an independent republic since 1965; Hong Kong was returned to China on July 1, 1997. While Hong Kong and Singapore are now the busiest ports in the world in terms of throughput, they have divested from their reliance on trade since the 1960s, climbed the industrial ladder, and are now important international financial centers as well.
"Speculating" or "investing" in a property market in both cities is indeed is the main course of risk-loving locals and foreignes alike. This cities are knowing lke free traders and international fiancial centers with a few restrictions on trade and capital flows, which are many times their GDP.
The economy of Singapure is a highly developed state with mixed economy.While government intervention in the market is kept at a minimum, the state controls and owns firms that comprise at least 60% of the GDP through government entities such as the sovereign wealth fund Temasek. It has an open business environment, relatively corruption-free and transparent, stable prices, and one of the highest per capita gross domestic products in the world. Its innovative yet steadfast form of economics has given it the nickname the Singapore Model. Exports, particularly in electronics and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Singapore could thus be said to rely on an extended concept of entrepot trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours to carry out such entrepot activities. The Port of Singapore is the busiest in the world, surpassing Rotterdam and Hong Kong. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.



Year Total trade Imports Exports % Change
2000 $273 $135 $138 21%
2001 -9.4%
2002 $432 1.5%
2003 $516 $237 $279 9.6%
2004 $629 $293 $336 21.9%
2005 $716 $333 $383 14%

2006 $810 $379 $431 13.2%

Year Singapore Dollars per US$1
1981   2.0530
1985   2.1213

1990   1.7275
1995   1.4148
2000  1.7361
2005  1.6738
2008  (April) 1.3643
2009  (March) 1.5123

click here ( it will help for understanding)

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLbxBpPsrld71St0rbdRedjL8MgYAyn5XB2ZjxnecbRKwZkJRJ3npTY1kN4V8RYSP8bK-i2uSzNCqftT05Nt75Tes_LL47Jf8plz6RYMMHNc9jTJHuq-XHwdP4UVLajwNIopXuhP97UQg/s1600-h/FinancialFlows-05-gic-temasek.png

Change this fucking tables!!!

I'm so sorry for bad words in my blogg but now i'm sitting in my room and try to study therefore i use this words. Try to imagine the room for 3 person. One - Chinese, second -  Iranian ( he always cough and seems that he will die a soon) third - i.   I have to learn economics ( expansion, contraction, shift and so on) How can i study when "fucking"  study TABLE smaller then I???!!! I  haven't got any place to study!!! My back is curved, elbow is resting on the iron... Oh...  Okay, if i would go to the study room? I'll come in and what can i see and hear?? crowded place where music plays in different loptops, a lot of voices and laughing! kill me...

reasons for a rise in the price of cocaine.

Since 2009 MNF of Columbia detained 14 submarines with coca and destroyed hundreds laboratories which were used for manufacturing drugs. Since 1993 MNF of Columbia detained 47 submarines when they were suppling cocaine and destroyed thousands ha with cocaine. In 2000 USA gave 5 bil $ for destruction drug barons and there business.
The reasons for high prices is obviously:
1.Destruction drug barons ---> difficult to transport drugs from Columbia---> high demand for drugs and low supply-----> free market prices = HIGH prices for drugs.

oXoXo Breaking NEWS

A CBI report suggests students should pay more interest on loans and higher tuition fees, sparking anger from their union...   

and what the reason? Now i'll show the topic from another link and It's the KEY. All we know that education in UK become more cheaper because the rate gone down.

The pound has fallen against the euro and the dollar after a warning that UK public debt levels may not be sustainable.

after that UK government  decide  to raise up prices on education....=(

reduce thr national debt

Reduce the national debt. The Organisation and Development estimates says that national UK will rise to 14% in 2010 and it's the highest in the West. The main hit will touch goverment bonds,pensions and saving suffer.While government raises taxes and makes big cuts in public spending,inflation growing up. Politician believe that the next priority must be reduce the national deficit.

recession in the football

When the club REAL MADRID bought fooball players for which of them more then 40-80 pounds and it's one of the reason of recession. Clubs borrowes a lot of money from sponsorships and banks.... all clubs rise prices for the tickets, t-shirts,food and players. I haven't enouhg time to write more....

"UK become a country of hustlers?"

Well. My dictionary says that "hustlers"- prostitution...funny isn't it? and another meaning "an enterprising and often dishonest person, esp. one trying to sell something." Which of this two allegations is more clear?...

In our days very difficult to earn money and a lot of people, businessmanes specially government try to find different ways of earning money. But "earning" doesn't mean legal. Legal earning is the most difficult way. And "dishonest" use "black schemes"- who knows what it's mean? Yes children it is illegal ie we cross the law. For example : when product comes from abroad and company must pay taxes,nds..etc there are a lot of rules and exceptions which i don't know.. (yes Chris it's my fall..) When the state has small means they become make " discounts " or "exceptions" for private companies or aliens for revenue MONEY! MONEY! MONEY! all society concerned by this "paper"... If the government will be doing BIG promotions ... whole economy goes to the dark gap... and it is values "become a country of hustlers"

"Every idea... is copied from a similar impression"