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How to deal with uncertainty: The entrepreneur’s dilemma

How to deal with uncertainty: The entrepreneur’s dilemma | Economics | Scoop.it
Denis Duvauchelle is the CEO & co-founder of Twoodo, the ultimate online collaboration tool.
Things don’t stop changing just because we decide to stand still.

Via Ex FromTheLeft
Anthony M. Grimaldi's insight:

Amazing that the entire article's most valuable insight and advice are the last two sentences: Decrease uncertainty by not dwelling on time-consuming worries that do not help you achieve your goals. Don’t be your own worst enemy.

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A Nightmare Scenario

A Nightmare Scenario | Economics | Scoop.it

Most people have no idea that the U.S. financial system is on the brink of utter disaster.  If interest rates continue to rise rapidly, the U.S. economy is going to be facing an economic crisis far greater than the one that erupted back in 2008.  At this point, the economic paradigm that the Federal Reserve has constructedonly works if interest rates remain super low.  If they rise, everything falls apart.  Much higher interest rates would mean crippling interest payments on the national debt, much higher borrowing costs for state and local governments, trillions of dollars of losses for bond investors, another devastating real estate crash and the possibility of a multi-trillion dollar derivatives meltdown.  Everything depends on interest rates staying low.  Unfortunately for the Fed, it only has a certain amount of control over long-term interest rates, and that control appears to be slipping.  The yield on 10 year U.S. Treasuries has soared in recent weeks.  So have mortgage rates.  Fortunately, rates have leveled off for the moment, but if they resume their upward march we could be dealing with a nightmare scenario very, very quickly. ...


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oftwominds-Charles Hugh Smith: What Every Student in America Needs to Know About the Federal Reserve

oftwominds-Charles Hugh Smith: What Every Student in America Needs to Know About the Federal Reserve | Economics | Scoop.it

People are confused about the Fed, and I think it would be better if everybody had a clear understanding of what the Federal Reserve is and what it is not.First of all, the Federal government thinks of the Federal Reserve as a service bureau, whose function it is to print money that the government can spend. As long as the Federal Reserve performs that function--reliably printing, let's say, a trillion or more each year to top off the Federal budget--then Congress will be happy with the Federal Reserve (their rainmaker) and will follow its advice and try to keep it happy.

 

It should be emphasized here that the whole Keynesian smokescreen and sideshow has very little to do with the reality of the relationship here. The Federal Reserve's job is not just to lend Uncle Sam some money during a recession so as to provide temporary stimulus. The Fed is a milk cow for Uncle Sam. Its job is to give milk all the time.

So to summarize this first point, the Fed is a service bureau ...


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Hal's curator insight, July 11, 2013 11:42 AM

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reRoute: Building Power for a New Economy | New Economics Institute

reRoute: Building Power for a New Economy | New Economics Institute | Economics | Scoop.it

Our generation is in the process of inheriting a world in unprecedented systemic crisis. Inequality, poverty, climate change, corporate control of our democracy—these are symptoms of interconnected economic, political and ecological system failures. The overarching trends are so grim that some have already thrown in the towel, dismissively labeling the current cadre of folks under forty “Generation Screwed.”

 


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Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy

Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy | Economics | Scoop.it

A new set of regulations that most people have never even heard of that was developed by an immensely powerful central banking organization that most people do not even know exists is going to have a dramatic effect on the global financial system over the next several years.  The new set of regulations is known as "Basel III", and it was developed by the Bank for International Settlements.  The Bank for International Settlements has been called "the central bank for central banks", and it is headquartered in Basel, Switzerland.  58 major central banks (including the Federal Reserve) belong to the Bank for International Settlements, and the decisions made in Basel often have more of an impact on the direction of the global economy than anything the president of the United States or the U.S. Congress are doing.  All you have to do is to look back at the last financial crisis to see an example of this.  Basel II and Basel 2.5 played a major role in precipitating the subprime mortgage meltdown.  Now a new set of regulations known as "Basel III" are being rolled out.  The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019.  These new regulations dramatically increase capital requirements and significantly restrict the use of leverage.  Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit.  The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand.  By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy. ...


Via Hal
Anthony M. Grimaldi's insight:

Austerity measures for central banks!

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Central Banking's Split Personality Can't Go On - Wall Street Journal

Central Banking's Split Personality Can't Go On - Wall Street Journal | Economics | Scoop.it
WorldStage
Central Banking's Split Personality Can't Go On
Wall Street Journal
Central bankers have spent the past five years expanding their balance sheets to unprecedented degrees.
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LOL:Abbot and Costello on two ways to count unemployment...economics 101

LOL:Abbot and Costello on two ways to count unemployment...economics 101 | Economics | Scoop.it
COSTELLO: I want to talk about the unemployment rate in America . 

ABBOTT: Good Subject. Terrible Times. It's 7.8%. 

COSTELLO: That many people are out of work? 

ABBOTT: No, that's 14.7%. 

COSTELLO: You just said 7.8%. 

ABBOTT: 7.8% Unemployed. 

COSTELLO: Right 7.8% out of work. 

ABBOTT: No, that's 14.7%. 

COSTELLO: Okay, so it's 14.7% unemployed. 

ABBOTT: No, that's 7.8%. 

COSTELLO: WAIT A MINUTE. Is it 7.8% or 14.7%? 

ABBOTT: 7.8% are unemployed. 14.7% are out of work. 

COSTELLO: If you are out of work you are unemployed. 

ABBOTT: No, Congress said you can't count the "Out of Work" as the unemployed. You have to look for work to be unemployed. 

COSTELLO: BUT THEY ARE OUT OF WORK!!! 

ABBOTT: No, you miss his point. 

COSTELLO: What point? 

ABBOTT: Someone who doesn't look for work can't be counted with those who look for work. It wouldn't be fair. 

COSTELLO: To whom? 

ABBOTT: The unemployed. 

COSTELLO: But ALL of them are out of work. 

ABBOTT: No, the unemployed are actively looking for work. Those who are out of work gave up looking and if you give up, you are no longer in the ranks of the unemployed. 

COSTELLO: So if you're off the unemployment roles that would count as less unemployment? 

ABBOTT: Unemployment would go down. Absolutely! 

COSTELLO: The unemployment just goes down because you don't look for work? 

ABBOTT: Absolutely it goes down. That's how they get it to 7.8%. Otherwise it would be 14.7%. Our govt. Doesn't want you to read about 14.7% unemployment. 

COSTELLO: That would be tough on those running for reelection. 

ABBOTT: Absolutely. 

COSTELLO: Wait, I got a question for you. That means there are two ways to bring down the unemployment number? 

ABBOTT: Two ways is correct. 

COSTELLO: Unemployment can go down if someone gets a job? 

ABBOTT: Correct. 

COSTELLO: And unemployment can also go down if you stop looking for a job? 

ABBOTT: Bingo. 

COSTELLO: So there are two ways to bring unemployment down, and the easier of the two is to have people stop looking for work. 

ABBOTT: Now you're thinking like an Economist. 

COSTELLO: I don't even know what the hell I just said! 

ABBOTT: Now you're thinking like Congress.

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littlebytesnews's curator insight, July 4, 2013 10:27 PM

Think the sheeple will understand this?

Vincent Rossi's comment, July 6, 2013 4:54 PM
No they won't understand.
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Bitcoin will prosper — until governments or banks decide to crush it ...

Bitcoin will prosper — until governments or banks decide to crush it ... | Economics | Scoop.it
For all the talk of Bitcoin's brilliance and disruptive potential, what will prevent it from ever being mainstream is that the disruptees – big banks and especially governments – will intervene.
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Does America Suck At Globalization?

Does America Suck At Globalization? | Economics | Scoop.it

You might think that we’re shipping out so many Cokes and Big Macs that we’re remaking the world in our image, but it turns out we might not be very good at reaching the developing world with our products.

 

The story’s been told countless times: Globalization by America’s corporations has created the world in its image, no matter if you’re in London or Luanda. Travel anywhere abroad and you’ll find the familiar comforts of home: like fast food, Coca-Cola and rap music.

 

But it turns out that American companies are not really that great at globalization, particularly in the emerging economies where most of the world’s economic growth is currently happening. That’s the argument in a forthcoming paper by Tufts economist Bhaskar Chakravorti, which was summarized by Quartz’s Tim Fernholz earlier this week.


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Max Minard's curator insight, March 20, 8:42 PM

This article brings up the issue of globalization in concerns to American companies. Internationally, American companies only bring in 7% revenue form emerging markets in other countries. Despite America's reputation of bringing famous brands such as coca cola, McDonalds, and other major corporations regarding pop culture to all four corners of the world, it turns out that American companies fail to accumulate as much revenue as expected. Compared to America's 7%, France's international companies get 25% revenue. Geographers have determined key factors that help answer these questionable statistics. These include American company's tendency to focus on the domestic market, emphasis on standardization of products, and America's minimal experience in colonizing. Personally, I thought this basic fact was surprising considering America's reputation. Although, when given these key factors listed above, it becomes more understandable. I believe that, in addition to pertaining to domestic markets, America should find a way to give more attention to international markets and therefore expanding our corporations and gaining more revenue. Hopefully, in the future, it will be able to rise form only 7%. 

Flo Cuadra Scrofft's curator insight, March 22, 11:35 PM

In this article, Tufts economist Bhaskar Chakravorti talks about his theory about why the United States might not be among the most globalized countries, despite the millions of Big Macs and Coca Cola bottles that it exports each year. United States companies only make about 7% of their revenue from markets in the developing world. That’s not very much when those markets now account for 36% of the globe’s GDP and two-thirds of global economic growth. Europe also makes a higher percent of their income in emerging markets than the US (25%). Chakravorti proposes three reasons for this: 1) America's focus right now is on the domestic market; 2) US companies often ignore the fact that they need to produce different products at different price-points; and 3) America doesn't have a history of colonization, like European powers do. 

Reflection- It's funny how globalization is disguised as a bunch of popular American items being brought to different parts of the world. We should maybe look at numbers and statistics when making a report on globalization, instead of just asking people outside the US if they've ever had a Coke before. The US is good not so much at exporting products, but rather at exporting ideas, influence, and culture.

Emma Conde's curator insight, May 26, 9:55 PM

Unit 1 Geography: Its Nature and Perspectives 

 

This article is about how although Americans are quite often thought of as the epitome of globalization, America is not doing as well as we would like to think. Although there are definitley many globalized things that come from America, we are not doing a good job of penetrating emerging markets from developing and underdeveloped countries. America is more focused on our domestic markets and our own culture, expecting others to adapt rather than focusing our efforts on targeting these emerging economies.

 

This article pertains to the theme of globalization throughout Human Geography and the important processes that factor into it. 

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Meet Cannibalistic Capitalism: Globalization's Evil Twin - Truth-Out

Meet Cannibalistic Capitalism: Globalization's Evil Twin - Truth-Out | Economics | Scoop.it
One of capitalism's central attributes is opportunism. Capitalism is not loyal to any person, nation, corporation or ideology. It doesn't care about the planet or believe in justice, equality, fairness, liberty, human rights, democracy, world peace or even economic growth and the "free market." Its overriding obsession is maximizing the return on invested capital. Capitalism will pose as a loyal friend of other beliefs and values, or betray them in an instant, if it advances the drive for profit ... that's why it's called the bottom line! Growth is important because it tends to improve the bottom line. And ultimately, capitalism may not last without it. But those who profit from this economic system are not about to throw up their hands and walk off the stage of history just because boom has turned to bust. Crisis, conflict and collapse can be extremely profitable for the opportunists who know where and when to invest.

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Monetary Cocaine: How The Fed Steals America’s Savings

David Stockman, author of “The Great Deformation: The Corruption of Capitalism in America”, accuses the Federal Reserve of corrupting savings and the stock market by continually injecting liquidity, or as he calls it “monetary cocaine”, into the...

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Wall Street Banks Extract Enormous Fees From The Paychecks Of Millions Of American Workers

Wall Street Banks Extract Enormous Fees From The Paychecks Of Millions Of American Workers | Economics | Scoop.it

Would you be angry if you had to pay a big Wall Street bank a fee before you could get the money that you worked so hard to earn?  Unfortunately, that is exactly the situation that millions of American workers find themselves in today.  An increasing number of U.S. companies are paying their workers using payroll cards that are issued by large financial institutions.  Wal-Mart, Home Depot, Walgreens and Taco Bell are just some of the well known employers that are doing this.  Today, there are 4.6 million active payroll cards in the United States, and some of the largest banks in the country are issuing them.  The list includes JPMorgan Chase, Bank of America, Wells Fargo and Citigroup.  The big problem with these cards is that there is often a fee for just about everything that you do with them.  Do you want to use an ATM machine?  You must pay a fee.  Do you want to check your balance?  You must pay a fee.  Do you want a paper statement?  You must pay a fee.  Did you lose your card?  You must pay a big fee.  Has your card been inactive for a while?  You must pay a huge fee.  The big Wall Street banks are systematically extracting enormous fees from the working poor, and someone needs to do something to stop this. ...


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Hal's curator insight, July 3, 2013 10:45 AM

It's what I like to call the enslavement of the working class.

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Congress turns up heat on ‘Too Big to Fail’ banks

Congress turns up heat on ‘Too Big to Fail’ banks | Economics | Scoop.it
WASHINGTON – Pushing to restore congressional power, four U.S. senators introduced a 21st Century Glass-Steagall Act this week to rebuild the historic wall betw

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Gold price rigging is as old as gold itself | Gold Anti-Trust Action Committee

Gold price rigging is as old as gold itself | Gold Anti-Trust Action Committee | Economics | Scoop.it

"The problem with central banking has been mainly the old problem of power -- it corrupts.

 

"Central bankers are supposed to be more capable of restraint than ordinary politicians, and maybe some are, but they are not always or even often capable of the necessary restraint. One market intervention encourages another and another and increases the political pressure to keep intervening to benefit special interests rather than the general interest -- to benefit especially the financial interests, the banking and investment banking industries. These interventions, subsidies to special interests, increasingly are needed to prevent the previous imbalances from imploding.

 

"And so we have come to an era of daily market interventions by central banks -- so much so that the main purpose of central banking now is to prevent ordinary markets from happening at all.

 

"Central banking controls the value of all labor, services, and real goods, and yet it is conducted almost entirely in secret -- because, in choosing winners and losers in the economy, advancing infinite amounts of money to some participants in the markets but not to others, administering the ultimate patronage, central banking cannot survive scrutiny.

 

"Yet the secrecy of central banking now is taken for granted even in nominally democratic countries."


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Hal's curator insight, February 1, 2013 1:10 PM

Click through for the full piece.

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It’s Time To Occupy Central Banks, Not Wall Street

It’s Time To Occupy Central Banks, Not Wall Street | Economics | Scoop.it

Some would argue that the most recent global financial crisis was caused by a failure of capitalism, lack of regulation and greed. However, the truth of the matter is that Central Banks and global banking cartels are the real villains and are directly responsible for the demise of the western world. 

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Wall St. gets a lift from Bernanke's flexible Fed view - Reuters

Wall St. gets a lift from Bernanke's flexible Fed view - Reuters | Economics | Scoop.it
Economic Times
Wall St. gets a lift from Bernanke's flexible Fed view
Reuters
Hiring at wallstreet banks drop by 9%. I mean why would they hire as long as they are being fed by the Fed with cheap money.
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Bernanke Supports Continuing Stimulus Amid Debate over QE - Proactive Investors UK

Bernanke Supports Continuing Stimulus Amid Debate over QE - Proactive Investors UK | Economics | Scoop.it
Bernanke Supports Continuing Stimulus Amid Debate over QE Proactive Investors UK The Fed chairman spoke just three hours after the central bank released minutes of the June 18-19 gathering showing that about half of the 19 participants in the...
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US prosecutor warns Wall Street about repeat violations - Reuters

US prosecutor warns Wall Street about repeat violations - Reuters | Economics | Scoop.it
New York Magazine
US prosecutor warns Wall Street about repeat violations
Reuters
The messaging system is said to be gaining favor with some on Wall Street.
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