Blogpost 0: Climate change
The last few weeks there has been a lot of talk about climate change and its effects. I believe that climate change is real and should be dealt with. I’ve read an article about the United States and climate change that really impacted me.
In the article they state that William Hopper would be on the committee about climate change. I personally believe he shouldn’t be on the committee.
First of all there has been climate change but he suggests instead of lowering our use of carbon dioxide, he states that higher levels of carbon dioxide are beneficial. This in conflict with the vast majority of climate scientists.
Further he states that he doesn’t believe in the immediate threat of climate change, he even states that climate change research has become a ‘cult’ movement.
This in contrary to other experts who actually state that climate change already threatens public health and the economy in the US.
To summarize, I don’t believe it would be smart to have William Hopper on the committee because he believes we should higher the levels of carbon dioxide and he even believes that climate change search is simply a ‘cult’ movement. Climate change is real, it is happening and even has an impact today. Therefore, it should be taken seriously.
Source: https://www.theguardian.com/environment/2019/feb/20/white-house-climate-change-national-security-panel
In the article they state that William Hopper would be on the committee about climate change. I personally believe he shouldn’t be on the committee.
First of all there has been climate change but he suggests instead of lowering our use of carbon dioxide, he states that higher levels of carbon dioxide are beneficial. This in conflict with the vast majority of climate scientists.
Further he states that he doesn’t believe in the immediate threat of climate change, he even states that climate change research has become a ‘cult’ movement.
This in contrary to other experts who actually state that climate change already threatens public health and the economy in the US.
To summarize, I don’t believe it would be smart to have William Hopper on the committee because he believes we should higher the levels of carbon dioxide and he even believes that climate change search is simply a ‘cult’ movement. Climate change is real, it is happening and even has an impact today. Therefore, it should be taken seriously.
Source: https://www.theguardian.com/environment/2019/feb/20/white-house-climate-change-national-security-panel
Blogpost 1: president trump & economics
President Trump is one of the most important figures in the world. Daily he makes an appearance in all sort of newspapers. Sometimes positive, although mostly negative. That brings me to an article I stumbled on this week that states: “Trump doesn’t understand economics”. I found it much fascinating and I actually agree with this statement.
First of all, The President is as per usual focussing on the wrong issues. China and the US have been in a year long dispute but remedying bilateral trade deficits with other trade partners is not the solution. It’s not an appropriate objective of policy.
In addition, President Trump’s attacks on current Fed chair Jerome Powell were harmful to the publics confidence in the central bank. Obviously I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability.
Not only was this conflict open to the public but also the President professed himself not "a fan" of the standard Memorandum of Understandings (MOU) that are used when drawing up trade deals.
I can only conclude that once again the President has made the news on a negative way, he proves that he doesn’t understand economics and just can’t get along with his own staff. I’m curious on how this matter will end!
Article: https://www.bbc.com/news/business-47369123
Blogpost 2: ECB & boosting the eurozone
As promised to my readers, I have read and checked the financial and political world this week looking for interesting articles. I stumbled on this article from BBC news regarding initiatives the European Central Bank is making to boost the struggling eurozone. I believe the ECB is making a good effort to try to boost the economy.
First of all, the ECB has brought a fresh stimulus into the financial world. For example, the ECB is offering banks cheap loans to try to help revive the economy. Also there are plans for a new round of what are known as targeted long-term refinancing operations or TLTRO.
In addition the European Central Bank has stated that interest rates in the eurozone will not rise until next year at the earliest. This to ensure the smooth transmission of monetary policy. As a result this means spreading the effect of the low interest rates throughout the eurozone economy.
Nevertheless, we can still question if these initiatives are enough, especially with the threat of protectionism and vulnerabilities in the emerging markets.
To summarise I believe the ECB is making a good effort to boost the Eurozone, but one can still wonder if they aren’t a little too late. It will be a big question mark whether these initiatives will have the desired result.
Article: https://www.bbc.com/news/business-47485200
blogpost 3: THe great britain & their focus on financial matters
This week, during the crazy Brexit days, I found an article that captured my attention. All the focus is put on the Brexit, that other problems tend to go on the background. I agree with the article’s statement that Great Britain is in need of an urgent spending review.
First of all there has been a great delay in other financial issues that the Great Britain is dealing with. I believe that while the Brexit is an important matter, it shouldn’t be the only thing to matter to politicians.
Also the big heist around the Brexit is diverting the focus from other economic concerns, such as the benefits squeeze, education funding, etc. But when fixing those concerns, the plans must be carefully thought out and implanted, if they want it to be effective and fair.
Nonetheless, dealing with these problems, depends on a smooth Brexit. This because if the Brexit happens disorderly, the Great Britain would deal with a significant blow to the economic activity in the short term.
To conclude, I believe that the spending review in the Great Britain deserves more attention. The Great Britain needs to review their spending, but will have to keep a smooth Brexit into consideration. I am curious to find out if politicians can shift their focus and help out their country.
Link article: https://www.bbc.com/news/business-47567037
Blogpost 4: slower us growth means no interest rate for 2019
The US has no good outlook when it comes to finance. The US has been experiencing difficulties with economic growth. I believe that a slower US growth, will mean that there will be no rate rise for 2019.
First of all, the US Federal Reserve has no expectations when it comes to a possible interest rise. In addition, the policymakers have even voted unanimously to keep the US rate between 2,25% and 2,5%.
Secondly, the Fed has had a change in outlook, not once, not twice but three times. In December they double predicted that there would be in increase of rate rise, to absolutely none in March 2019. In my opinion, this doesn’t promise a bright looking future for the US.
Finally, the stock exchange hasn’t been positive for the United States. The dollar has fallen against the Japanese Yen and the euro. As a result, the Fed only expects one increase in 2020.
To conclude, with the slow economic growth in the US, there will be no rate rise for 2019 as even the Fed, who changed their outlook three times, has no expectation that it will rise. In addition, the negative stock exchange won’t make it any easier. I can only hope that the future looks brighter for 2021.
Article: https://www.bbc.com/news/business-47644267
First of all, the US Federal Reserve has no expectations when it comes to a possible interest rise. In addition, the policymakers have even voted unanimously to keep the US rate between 2,25% and 2,5%.
Secondly, the Fed has had a change in outlook, not once, not twice but three times. In December they double predicted that there would be in increase of rate rise, to absolutely none in March 2019. In my opinion, this doesn’t promise a bright looking future for the US.
Finally, the stock exchange hasn’t been positive for the United States. The dollar has fallen against the Japanese Yen and the euro. As a result, the Fed only expects one increase in 2020.
To conclude, with the slow economic growth in the US, there will be no rate rise for 2019 as even the Fed, who changed their outlook three times, has no expectation that it will rise. In addition, the negative stock exchange won’t make it any easier. I can only hope that the future looks brighter for 2021.
Article: https://www.bbc.com/news/business-47644267
Blogpost 5: the us and china and their trade war
The trade war between China and The United States has already received a lot attention in the media. It’s an important matter, because if they are not able to find a solution, it will have drastic economic consequences. This week I found an article about this trade war. After reading it, I believe that the US and China will not be able to solve the trade war.
First of all, there already have been a lot of meetings between China and the US that have proven to be unsuccessful. Since as the negotiations have at times been rocky. In addition, they broke up without a deal on February 20. I don’t think that this gives a positive outlook towards finding a solution.
Next, the US and China have been negotiating for a long time now. They just can’t seem to find a consensus, instead they keep accusing each other. For an example, the US is accusing China of stealing intellectual property, whilst China states that US is at fault for starting the largest trading war in history. It’s evident to me that accusing one another is not the way to solve this matter.
Furthermore, there have been contradictions between the US and China. While President Trump has been casting the meetings in a positive light, results have proven otherwise. It stuns me that the President has even said that they are very close to signing a trade agreement.
In conclusion, with the way both China and US are behaving, I don’t believe we are getting closer to a possible ending of the trade war. Discussions between the two countries are going rocky and have been taking a lot longer than expected. I am curious to see if they can get a consensus by the end of this year.
Article: https://www.bbc.com/news/business-47634103
First of all, there already have been a lot of meetings between China and the US that have proven to be unsuccessful. Since as the negotiations have at times been rocky. In addition, they broke up without a deal on February 20. I don’t think that this gives a positive outlook towards finding a solution.
Next, the US and China have been negotiating for a long time now. They just can’t seem to find a consensus, instead they keep accusing each other. For an example, the US is accusing China of stealing intellectual property, whilst China states that US is at fault for starting the largest trading war in history. It’s evident to me that accusing one another is not the way to solve this matter.
Furthermore, there have been contradictions between the US and China. While President Trump has been casting the meetings in a positive light, results have proven otherwise. It stuns me that the President has even said that they are very close to signing a trade agreement.
In conclusion, with the way both China and US are behaving, I don’t believe we are getting closer to a possible ending of the trade war. Discussions between the two countries are going rocky and have been taking a lot longer than expected. I am curious to see if they can get a consensus by the end of this year.
Article: https://www.bbc.com/news/business-47634103
Worth watching:“How Trump’s economic policies have helped the middle class”.
I found an interesting YouTube video from Fox Business that puts Trump and his administration in a positive light. The video is titled: “How Trump’s economic policies have helped the middle class”. This video provides a new perspective to review the Trump administration and is worth the watching. Moody’s chief economist John Lonski talks about how deregulation and tax cuts have opened doors, like wage growth, for entrepreneurs in the middle class, the so-called little businesses.
Blogpost 6: A slower growth worldwide?
A little over a decade ago, the world went through the 2008 financial crisis. Many economies still haven’t fully recovered of the crisis. With current economic problems we face today, I believe that there will be a slower growth for most countries worldwide.
A first reason is that the current economy is losing momentum, which means it’s not moving forward. This is due to the many problems, like the rising trade tensions, the concerns of the Brexit and tougher financial conditions issued by the ECB. I believe that these current problems won’t make it easy to enable growth.
Secondly, many economies aren’t just resilient enough. Countries suffer a high public debt and they also have a low interest rate. Countries are not prepared to deal with the next downturn.
Furthermore, some countries have already experienced difficulties. For an example, Turkey has been struggling with it’s economy four a couple of years now. And did you know that German manufacturing output of cars have dropped and that China car sales have fallen for the first time in 30 years?
Nevertheless, with the future not looking bright, I do think that we can steer clear of a complete recession. This because economist have predicted a little growth in the second half of 2019 and into 2020.
In conclusion, given the current facts, such as problems like the Brexit, there will be a slower growth worldwide. But I don’t think there will be a big financial crisis like the one we had in 2008, we still have time to work on the economy. Maybe the trade war will miraculously be solved and we can still pray for a smooth Brexit. I hope you are as curious as me to see how the next year will play out.
Article: https://www.theguardian.com/business/2019/apr/02/imf-chief-warns-of-slower-growth-for-most-countries-christine-lagarde?fbclid=
A first reason is that the current economy is losing momentum, which means it’s not moving forward. This is due to the many problems, like the rising trade tensions, the concerns of the Brexit and tougher financial conditions issued by the ECB. I believe that these current problems won’t make it easy to enable growth.
Secondly, many economies aren’t just resilient enough. Countries suffer a high public debt and they also have a low interest rate. Countries are not prepared to deal with the next downturn.
Furthermore, some countries have already experienced difficulties. For an example, Turkey has been struggling with it’s economy four a couple of years now. And did you know that German manufacturing output of cars have dropped and that China car sales have fallen for the first time in 30 years?
Nevertheless, with the future not looking bright, I do think that we can steer clear of a complete recession. This because economist have predicted a little growth in the second half of 2019 and into 2020.
In conclusion, given the current facts, such as problems like the Brexit, there will be a slower growth worldwide. But I don’t think there will be a big financial crisis like the one we had in 2008, we still have time to work on the economy. Maybe the trade war will miraculously be solved and we can still pray for a smooth Brexit. I hope you are as curious as me to see how the next year will play out.
Article: https://www.theguardian.com/business/2019/apr/02/imf-chief-warns-of-slower-growth-for-most-countries-christine-lagarde?fbclid=
blogpost 7: government borrowing lowest for 17 years
Finance and the political world, a subject that will never get boring. Governments are elected through politics, then that elected government takes the lead over the country. In order to properly lead the country, they need financing. As a result, they borrow, but sometimes the government borrows too much money, but will it ever get better? I do believe, after reading an interesting article, that the UK government borrowings have dropped and will continue to lower.
A first reason is that the financial year 2018/2019 was the lowest year in borrowings in 17 years. For instance, the government has loaned 17,2 billion pounds less than the previous year. I find that a spectacular number.
Furthermore, the chancellor of Exchequer, Philip Hammond, is extremely motivated to lower the borrowings. He wants to reduce it to the equivalent of 2% of economic output. In addition, it was only 1.2% last year. Hammond is already doing a great job.
However, there is still a focal point. Even with the borrowings lowering, it is still too high. This year the government loaned 24,7 billion pounds, which is much higher than the forecast made by the Office for Budget Responsibility.
To conclude, the UK government borrowings are indeed lowering, but the government still has a great deal of work in order the respect the forecast.
Article: https://www.bbc.com/news/business-48036184
Blogpost 8: a revolution in the british economy
Most economies in the world use the system where their citizens pay taxes based on their income. That has worked out well for a while. But lately people are noticing that the rich are getting richer and the poor are getting poorer. Isn’t it time for a change? I feel that the British economy requires revolution.
First of all, and the biggest argument of them all, the people of the UK are demanding it. Certain issues, for instance the Brexit and many other things, are so desperate now. Things just aren’t working out for people, so they’re looking for a drastic change.
Secondly, labour has heard the demands and is already planning a massive change. For instance, plans for higher taxes on the wealthy and companies are in the make. Further they are aiming for a major expansion of public investment, the re-nationalisation of certain utilities. Lastly, the labour is making moves to give many more workers a direct financial ownership stake in their firms. They are certainly motivated.
However, hasn’t history, like the Brexit, taught us that drastic changes in a short amount of time don’t work. This approach would mean a major break from the Thatcherite legacy of lower taxes and don’t forget about the free markets, deregulation and privatization. Another very important argument is that higher taxes would choke the economic growth, this because tax money can’t be reinvested in the wider economy.
To conclude, the British economy is indeed in need of a revolution, especially because the citizens need one, but it also requires time. First focus on economic growth. I feel his subject is certainly one too closely think about. I am curious to see how this one works out.
Article: https://www.bbc.com/news/business-48094621
First of all, and the biggest argument of them all, the people of the UK are demanding it. Certain issues, for instance the Brexit and many other things, are so desperate now. Things just aren’t working out for people, so they’re looking for a drastic change.
Secondly, labour has heard the demands and is already planning a massive change. For instance, plans for higher taxes on the wealthy and companies are in the make. Further they are aiming for a major expansion of public investment, the re-nationalisation of certain utilities. Lastly, the labour is making moves to give many more workers a direct financial ownership stake in their firms. They are certainly motivated.
However, hasn’t history, like the Brexit, taught us that drastic changes in a short amount of time don’t work. This approach would mean a major break from the Thatcherite legacy of lower taxes and don’t forget about the free markets, deregulation and privatization. Another very important argument is that higher taxes would choke the economic growth, this because tax money can’t be reinvested in the wider economy.
To conclude, the British economy is indeed in need of a revolution, especially because the citizens need one, but it also requires time. First focus on economic growth. I feel his subject is certainly one too closely think about. I am curious to see how this one works out.
Article: https://www.bbc.com/news/business-48094621