Susceptible Infected by Virus Asia Crisis U.S. and Europe

Singapore - Asia, including China and India, will be vulnerable if the United States and Europe slipped into another recession. Concerns were conveyed by the Prime Minister of Singapore Lee Hsien Loong.

In his annual policy speech, Lee warned, the world may be sinking into recession because the debt crisis in Europe and the U.S. economic woes resulting downgrade by Standard & Poor's.

"Europe is in trouble, America is in trouble," said PM Lee in his speech as quoted by AFP on Monday (8/15/2011). He said the issue has fueled market volatility.

Lee added that market volatility is "just a reflection of the real issues" that reduce investor confidence in U.S. and European governments whether they can "make the hard decisions and to solve the problem of deep and very serious."

The U.S. government judged Lee spent too much and the fiscal deficit "unsustainable". He added that the deep divisions between Republicans and Democrats have made the country more difficult to solve the problem.

Over the issue, Lee assessing China, India and other developing countries to do "good enough" for now.

"But if America and Europe will go into another recession, then I think China, India and other developing countries will also be affected, will also be vulnerable," said Lee warned.

"And so Singapore must be vigilant. We do not need to press the panic button, but we must be vigilant because there is quite likely that the world will go into another recession," he added.

"That will affect us could easily happen," he added.

Singapore economic growth contracted 6.5% in the second quarter as demand for global electronics slump, according to official data. Singapore's export-dependent Asian economies is the first negative growth during the last global crisis in 2008 but also led the recovery with the development of a strong rebound in 2010.

Markets worldwide have been roiled amid fears that the U.S. debt crisis and the euro zone could trigger a new recession. The crisis began in Greece and is now driven by fears that the Spanish or Italian may default their debt.


source: http://finance.detik.com

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Know what part of our financial system

Continuing to comment on how it works and is structured our financial system, this time I will refer to the savings system, a matter which to date has been a major problem in providing security for the government to small savers, since in the past they have broken their savings efforts, because everywhere are always the vivales and left on the street many of these people.

Therefore, I now offer:

In this new field involving the Savings and Loan Associations, Federations and Confederations. Then mention how you made each of them.

Institutions are shaped by the Cooperative Savings and Loan and Finance Companies People. The first are companies formed to operate under the General Law of Cooperative Societies and the latter are corporations formed to operate under the General Law of Commercial Companies. Both are governed also by the Law of Popular Savings and Loan and applicable laws. These entities are considered as financial intermediaries therefore should be authorized by the Ministry of Finance and Public Credit, and the National Banking and Securities Commission (NBSC).

These entities will target the savings and loan, ie they may raise funds from the general public (customers) or their partners, and then put through financing to micro, small and medium enterprises (clients) and any of the partners required.

Each Federation will consist of a minimum of 10 Savings and Popular Credit and must be authorized by the NBSC. Shall be the function to the enforcement of legal framework and shall exercise the powers of supervision and monitoring of ancillary manner, the powers that have the CNBV, ie, each Federation should monitor and supervise ancillary manner to each of the Entities are affiliated to it, and also all those unaffiliated assigned by the Commission. This function must take place through a Steering Committee, which is authorized by the NBSC.

Like each Confederation Federation shall be constituted with the voluntary group of at least five federations, and must be authorized by the NBSC. Confederations should be exercised administrative powers Protection Fund, besides being the organ of the federal government partnership for the design and implementation of programs to facilitate the activity of savings and loan.

Protection Fund This primary goal will cover deposits of individual savers' money, considering the amount of principal plus accessories.

Both confederations and federations can also perform the following activities:

Act as legal representatives of their affiliates,

Provide technical, legal, financial and training support to its affiliates (you)

Contract loans in order to channel them to the Federations and affiliated entities that require it,

Promote improvement and operational and technical capacity of its affiliates.

To date, there are still some Savings and Loan institutions through which at first the federal government tried to protect savers, as to its organization and operation of express authorization required by the Ministry of Finance and Public Credit, more than that have also been under the supervision of the Commission Nacional Bancaria y de Valores.

In these circumstances, these entities (SAPS) have an obligation to be dictated by certified public accountants, and deliver the document to the NBSC, like the return for income tax purposes, should be delivered dictated by a registered accountant in the register the Treasury itself. With this the government felt that such requirements exist and the delivery of regular reports to regulators, depositors and members of the same would be more protected.

Importantly, many thanks to the popular savings and low-income people in areas where the bank does not provide financial services, access to credit, which many of them allowed them to be great entrepreneurs of both the commercial field, as in the industrial and service provision.

Thanks to these thrifts popular people can have access to credit to repair, expand and build their homes, for what it is and have been critical to the economic development of large, medium and small communities across the country .

Testing the potential of this sector of people to some extent forgotten by the big commercial banks, we note the success that has achieved the Banco Azteca, which to date has more than four million small savers accounts, and each days the institution sees positive results in their business to such a degree that has already gone beyond our borders, have a presence in Panama and Peru, where many people, like in our country, have welcomed the presence of the financial institution.

To date, the federal government has approved in this field (thrift) institutions that provide similar services to which Banco Azteca has been providing, among which we mention: Banco Wal-Mart de Mexico (855 stores), Bancoppel (478 stores Copel), Banco Facil (chain of 97 stores Chedraui), Famsa and Autofin Bank, which operate with Barclays Bank, Prudential Bank (Prudential Apolo with 17 branches), as we can see, the attack on Financial Services for the coming year will be very strong, therefore, users of these (small investors) have to learn every day to know how to select the institution best service given that no major risks (as they will be supervised and monitored by the CNBV) can have better, more profitable, they may eventually make better business, to have better life, they should always investigate, compare and choose the best option in terms of financial services will require.

Dr. Luis Nunez Alvarez.



source: economia.com.mx

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Meet the Mexican financial system

We often hear people say: go to the bank. Why that term? Do you really know what the main purpose of this type of financial institution? Here:

The purpose of a financial institution is to connect (intermediate) to people who need money (or requiring plaintiffs to pay them money), and those who have it (suppliers, who have accumulated money through his habit of spend less than they earn), that is financing, also fulfills the function of helping the efficient flow of money, this is the payment system.

When individuals or companies have the money to a financial institution (a bank), are looking for two things: One, protect your money (either saving or investing to earn more for performing various operations) and the other to use the institution as a means of payment and control of its operations.

Through a financial system has established a payment system, which consists of:

• Money banknotes and coins in pesos or in other countries as the dollar.
• Documents: Checks, promissory notes, bills of exchange, promissory notes known as credit card vouchers.
• Electronic media: SPEUA Transfers between accounts, utility payments with debit cards, electronic purses.

The Mexican financial system is regulated by the Ministry of Finance and Public Credit, the National Banking and Securities National Commission of Insurance and Finance, the National Savings System for Retirement, the National Commission for Protection and Defense of Users of Financial Services.

The Bank of Mexico is an institution independent of the executive has control efforts particularly in relation to the payments system.

It is important to know different concepts regarding the financial activity of a bank, so I'll mention a few:

• Financial transaction: You make a financial transaction when hiring a financial product or service, are distinguished from commercial operations because they necessarily involve the purchase or sale of a commodity directly, but facilitate access to monetary resources to perform various operations.
• Service: Refers to when the financial institution will provide facilities for you to be traded, usually only involved as an intermediary institution.
• Product: When you and the financial institution signed a contract to perform certain types of operations together, taking responsibility for meeting both parties as indicated in the contract under the conditions specified therein. There are various tools available to a financial institution authorized by the competent authority to conduct financial activity.
• Individual: Refers to human beings like you. When we speak of users refers to people with legal capacity to hire and / or products offered by financial institutions, ie, over 18 years with all the mental and legal, in the case of beneficiaries also can to the case of minors or adults who can not fend for themselves, but they have the right to receive the results of operations or financial services in which they have been designated as beneficiaries.
• Legal entity: It is the union of two or more individuals formed for a common purpose, refers to companies or firms. This is how you call them legally.

HOW IS OUR INTEGRATED FINANCIAL SYSTEM?

Commercial banks or lending institution, or commercial banks: These companies through various products capture, ie, receive money from the public (savers and investors) and place it is, lend it to people or companies need and meet the requirements to be eligible for credit.

Development bank or second-tier bank or development bank: banks are run by the federal government whose purpose is to develop certain sectors (agriculture, auto parts, textiles) address and solve problems of regional or municipal funding or encourage certain activities (export , supplier development, creation of new businesses). They said second-tier support for their programs or lines of funding, made through commercial banks that are primarily to companies or users requesting the loan.

Limited purpose finance company or Sofoles: We call specialized banks because they pay only for one sector (eg construction, automotive) or activity (eg consumption through credit cards), only instead of taking deposits to capture resources need to raise money through the sale of securities or seeking loans.

National Savings and Financial Services: (formerly National Savings Trust). It is an institution (Banking Development) whose purpose is to promote savings, financing and investment, as well as offer financial tools and services among members of the sector. This sector consists of the Savings and Loan Associations which are: Cooperative Savings and Loan and Finance Companies People (before credit unions, solidarity funds, savings and loan, etc.)..

Dr. Luis Nunez Alvarez.

source: economia.com.mx

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globalization of money

After reading a review on a book entitled "Making globalization work," authored by Nobel Prize winning economist Joseph E. Stiglitz, I brought to mind what has been and continues to represent for the economy, so born and brought globalization.

Having been so close to the global economic affairs, put it in a privileged position that allowed him to observe the macroeconomic policies over the past decade have been applied to development of some countries, which allegedly were aimed at seeking the welfare of their populations. However, the reality that these policies, what they have accomplished is the growing gap between the richest and the poorest.

What makes us understand in their various writings and published works, is that market imperfections are produced by the fact that they are in constant asymmetry due to differences between the information available to the worker and the employer or the lender and the borrower, or the insurer and the insured. This is explained from a different perspective to the "natural balance" of the market, the reason for the existence of unemployment or because they need credits are often those least get them.

In our country, for example, governments in one way or another have focused their development policies under the rules of international institutions like IMF, World Bank, the Inter-American Development Bank, the Organization for Economic Cooperation Development, the World Trade Organization, which really has been obtained is an improvement in the macroeconomy, responding precisely to these postulates, which can be seen in controlled inflation, devaluation within acceptable limits, interest rates down, but unfortunately low growth, unemployment at high rate.

In fact, globalization came to our country from the entry into the GATT (now WTO), deepened with the signing of a Free Trade Agreement for North America (and all other treaties have been signed in the last three presidential terms).

Therefore, Professor Stiglitz says that globalization is that all national economies are in constant interaction, which should promote economic growth in less developed countries, but to make this possible, not just the institutions supra-national economic, applied to provide recipes for growth, but they must respect the sequences and rhythms that require some economies with a weak level of development.

It also becomes critical to a frontal attack, the neoliberal ideology that requires the abandonment of ideas about the role of states in the development of national economies, as proposed from the end of World War II, This meant that these economies should act under the laws of free market, according to which the profit motive is the force that drives the economy to efficient outcomes.

Why globalization for some, a force that has produced so much good, has become so controversial?

Among the advantages that could be considered for the decrease of isolation experienced by many developing countries, the real possibility of an exchange between these and other developments in a global market, globalization has enabled many countries to grow much faster than at other times, has also that a larger number of people now enjoy a higher purchasing power, and a standard of living much higher than they had ever enjoyed, and has provided a greater number of people access to a degree of knowledge that only a century ago was not attainable, nor the richest in the world.

This is because the facility now has access to information, as with the Internet.

With these views very short, I want planted concern about what globalization has been for our country. Do you really feel that we have and enjoy its benefits?

Dr. Luis Nunez Alvarez.


source: economia.com.mx

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Mexico's central bank regulates bank charges

Seeking to protect people who use the services of the banks in our country, the Bank of Mexico provides new rules on fees.

From 22 July 2009, the bank is prohibited from charging the following committees:

1. In deposit accounts in sight, such as checking and payroll may not be charged together in the same period, account management fees and no minimum balance.
2. In no case may charge fees to a client for having checks deposited in your account that are returned for any reason.
3. When banks set as a condition of a loan that the customer opens a deposit account to make credit payments, may not charge fees on the above account the following concepts: i) opening, ii) management, and iii) failure to maintain a minimum balance.
4. No fees may be charged for exceeding a client or attempt to exceed the balance on your debit card. It is noteworthy that the law provides a similar provision for credit cards.
5. No fees may be levied by cancellation of deposit accounts.
6. No fees may be levied by cancellation of credit cards or debit cards.
7. No fees may be levied by cancellation of direct debit payment for goods and services.
8. Nor are no fees for the cancellation of the Internet banking service.
9. In the case of funds transfer orders, institutions may not charge fees differentiated by the amount of transfers requested their customers.

Know when you should not charge fees for you to defend against the abuses of the banks and other financial institutions.

source: economia.com.mx

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electronic money

10% of the money was still in the form of notes and coins. This had to be removed so as not to arouse suspicion. While people used cash, would be free to buy and sell as you want - people still had some control over their own lives.

But it was not always safe to carry notes and coins. Checks were not accepted outside the country, and therefore sought a more convenient. Again Fabian had the answer. His organization gave each a plastic card showing the person's name, photograph and identification number.

Wherever this card was presented, the dealer phoned the central computer to control credit. If you have credit, the person could buy what you want, up to certain amount.

At first, people were allowed to spend a small amount on credit, and if it was paid within a month, was not charged any interest. This was fine for the employee, but what about employers?. They had to install machinery, manufactured goods, paying salaries., Sell all his goods and just repay the loan. If you exceed a month, charged with 1.5% for every month the debt was due. This amounted to 18% per year.

Businessmen had no option but to add 18% on the selling price. But all this money or extra credit (18%) had not been given to anyone (not in circulation). Across the country employers had the impossible task of paying $ 118 for every $ 100 they borrowed - but the extra $ 18 had never been created in the system. Did not exist.

Fabian and his friends further increased their social position. Were regarded as pillars of respectability. His statements in finance and economics were accepted with almost religious conviction.

Under the burden of ever-higher taxes, many small businesses collapsed. Special licenses were needed for various operations, so that other companies find too difficult to participate. Fabian owned and controlled all the large companies that had hundreds of subsidiaries. They appeared to be in competition with each other, however Fabian controlled them all. Eventually all competitors were forced to close. Plumbers, carpenters, electricians and many small industries suffered the same fate - they were swallowed by the giant companies Fabian who had government protection.

Fabian wanted the plastic cards to replace notes and coins. His plan was that when all notes were withdrawn, only businesses that used the card system to the central computer would work.

He planned that eventually some people would lose their cards and would then be unable to buy or sell anything until that was done a proof of identity. He wanted to impose a law, which would give him total control - a law forcing everyone to have their identification number tattooed on his hand. The number would be visible only under a special light, linked to a computer. Each computer would be connected to the central computer giant and Fabian could know everything about everyone.


source: economia.com.mx

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Utilities, taxes, public debt

Utilities

One by one, the government was forced to take these services on their own. Teachers, doctors and many others became public servants.

Few were satisfied with their work in the state. Receiving a reasonable wage, but lost their identity. They became small cogs in a giant machine.

No room for personal initiative, little recognition for effort, their income was fixed and only rose when a superior retired or died.

Taxes desperation, the governors decided to seek the advice of Fabian. He was considered very wise and seemed to know how to solve money matters.

Fabian listened to them explain all their problems, and finally answered, "Many people can not solve their problems themselves - they need someone to do it for them. Surely you will agree that most people have the right to be happy and be provided with the basics to live. One of our great sayings is "All men are equal" - is not it? "

"Well, the only way to balance things is to take the excess wealth of the rich and give to the poor.

Introduce a system of taxation. The more a man has, the more you pay. Collect taxes from each person according to his ability and give to each according to his need. Schools and hospitals should be free for those who can not afford them. "

Public debt He gave a long talk about high ideals and finally said:

"Oh, by the way, do not forget you owe me money.'ve Been borrowing for long. The least I can do to help is, as attention to you, I only pay the interest. We leave the capital and debt only pay the interest. "

They went out and without much discussion of the philosophies of Fabian, introduced the graduated income tax - the more you earn, the higher your tax rate. No one liked this, but they either paid the taxes or went to jail.

The new taxes forced traders to raise prices again. Wage earners demanded higher wages which caused many businesses closed, or to replace men with machinery. This caused additional unemployment and forced the government to introduce more welfare schemes and unemployment insurance.



source: economia.com.mx

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Strikes and social assistance

Strike

To pay interest on the loans they had asked, traders had to raise prices. Wage earners complained that wages were very low (when prices could buy less with your wages). Employers refused to pay higher wages, saying it would fail. Farmers could not get fair prices for their produce. Housewives complained that food was very expensive.

And finally some people declared themselves "on strike", something that had never been heard before. Others had been hit by poverty, and their friends and relatives had no money to help them.

Most had forgotten the real wealth all around them - the fertile land, large forests, minerals and livestock. They could only think about money, which always seemed to be missing. But they never questioned the banking system. They believed that the government was driving.

The economic situation deteriorated. Employees were sure that the bosses were taking much profit. Employers say that workers were vague and were not doing their day's work honestly, and everyone blames everyone else. Rulers could not find an answer, and besides, the immediate problem seemed to be fighting growing poverty.

Social assistance

The government then launched welfare schemes and made laws forcing people to contribute to them. This angered many people who believed in the old idea of ​​helping your neighbor will.

"These laws are nothing more than legalized robbery. Get something to someone against their will, beyond the purpose for which will be used, is no different from stealing."

But each man felt helpless and feared going to jail if not paid. These welfare schemes gave some relief at first, but while the problem of poverty increased again and more money was needed for charity. The cost of welfare schemes rose higher and higher and the size of government grew.

Most of the rulers were sincere men trying to do my best. They did not like asking for more money of the people (raise taxes) and finally had no choice but to borrow from Fabian and his friends. They had no idea how they would do to return it. The situation worsened, the parents could not pay teachers for their children. They could not pay doctors, and transport companies were going bankrupt.


source: economia.com.mx

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Gold reserves, savings, credit and insurance.

Gold Reserves

"Secondly," Fabian said, "some people have been excavated and are making their own gold coins. I suggest we pass a law so that anyone who finds gold nuggets must hand them over. Of course, it will be paid with cash and currencies. "

Saving

The next stage of the plan began. Until now, People Fabian was paying to save money. To attract more money into the vault Fabian offered to pay depositors 3% interest on deposits.

Most people believed he was paying that money to borrowers at 5% and profit was 2% difference. Also, people did not ask much, because you get 3% was far better than being paid to deposit money in a safe place.

The amount of savings grew and with the additional money in the vaults, Fabian was able to provide $ 200, $ 300, $ 400 to $ 900 for every $ 100 in notes and coins held in escrow. He must be careful not to exceed this factor of 9 to 1, since a person out of ten, you remove the deposit required to use their money. If there was not enough money available when someone needed it, people had begun to suspect, as the deposit books showed exactly how much they had deposited.

Beyond this, over $ 900 in accounting entries Fabian lent by writing checks himself, could claim up to $ 45 of interest, (45 = 5% 900). When the loan plus interest was returned ($ 945), $ 900 was canceled the debit column and Fabian kept the $ 45 interest. Therefore, he was more than happy to pay $ 3 interest on the $ 100 originally deposited, which had never left the vault. This meant that for every $ 100 they held in trust, could obtain a 42% gain, while most people thought he was earning only 2%. The other goldsmiths were doing the same thing. They created money in the air, just signing a check, paid and charged interest on top.

Credit

True, they were not doing bills, the government printed the bills and gave them to the goldsmiths to distribute. The only expense of Fabian was the small printing fee. However, they were created money "claim" that came from nothing and charge interest on it. Most people believed that the money supply was a government operation. They also believed that Fabian was lending them the money that someone else had deposited, but there was something strange: no deposit decreased when Fabian gave a loan. If everyone had tried to withdraw their deposits at once, the fraud had been discovered.

Emission

There was no problem if someone asked for a loan in coins or bills.

Fabian merely explained to the Government that the increase in population and production required more notes, and obtained for the small printing fee.



source: economia.com.mx

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