Go Team USA!
It seems like yesterday the opening ceremony for the Summer 2012 Olympic Games were streaming live on my television from London. It is always encouraging to see how the world can come together during the Olympic Games to engage in healthy competition. Athletes from 204 Nations from around the globe competed in 26 different sports this year. Large crowds filled the stadiums in support of their home country and motivate their fellow countrymen and women to perform on behalf of their respected Nation. The amount of planning and collaboration it takes to host such a wide scale event is astounding. Unfortunately, there is never enough time to truly appreciate the hard work and training these athletes put in to have the opportunity to represent their country and to compete on an International level. The United States of America dominated again this summer winning 104 metals. The People's Republic of China came in a close second with 88 total metals. I look forward to seeing what the winter games will yield.
Many folks are relieved that the election primaries are now over. The people have selected who they think would best represent them this coming November. There are a lot of issues in the mainstream that have been heavily debated to help inform the voter. This is a grueling process that is necessary when speaking in terms of your country and livelihood. One can hope that there is a large turnout this November so we can begin to address the issues that weigh heavy on our hearts and minds. Whatever the outcome, America needs to rise and meet her challenges.
The market also seems to have experienced some relief from the heavy losses in the first half of this year. The Central Banks and the Federal Reserve have expressed further easing in an attempt to reach stability. It is troubling that our financial overseers have concluded that the only tool they have at their disposal to reach price and market stability is printing money and extending their balance sheet. This dangerous tool has been abused since the key interest rate was reduced to near zero. This easing should come in September as reported and the key interest rate doesn't look like it will be up for review to increase until 2014. The extent of easing has yet to be determined. Investors are trying to recuperate some of the losses they have encountered for a hopeful fourth quarter. All things considered, investors and citizens around the world are still wondering what condition this economy is really in. Once the elections are done in November, we are sure to see a direct reaction to those exact questions.
Fall is around the corner!
Jordan Muns, M.A.
*At a Glimpse, Not the Whole Story
This snapshot provides 13 economic indicators that are most commonly viewed. There are others that provide more accurate information but these seem to be the most understandable. These indicators allow the viewer to quickly glance through this slideshow and draw their own conclusions. The truth is... these numbers are not always accurate. The indicators and valuations that are seen here were allowed to be released to the public. Many private firms exist that provide the exact same information, but give you more information and have better explanations for trends. However, it is important to look at both sources when comparing information and drawing conclusions. Looking at these indicators, I was puzzled at the message that these values were communicating. Based on this information, one would think that a real recovery is underway. Check them out and let us know what you think..... http://money.cnn.com/galleries/2012/news/economy/1206/gallery.Obama-economy/index.html
*Is the Labor Force Having a Negative Impact on Debt Collections?
The answer to this question is yes. Companies have made decisions that position themselves to be profitable in an uncertain marketplace. It is very unfortunate that jobs are hard to come by in today's environment. Businesses must survive or no one prospers. Economic theory and application meet where productivity and wealth are experienced. The main source of wealth is productivity. The process of production also creates wealth along the supply chain. Even after the final purchase, wealth can be generated by the consumer. How productive a company or a country is can determine its future. This article presents a clear premise to the reader of how important productivity is as a whole.
Unfortunately, there is a downfall to a highly productive industry, company, country, and/or individual. They all share limitation and scarcity in a variety of ways. Businesses and individuals are limited and resources are scarce. The economy can only support in relation to its capacity. A side effect of this condition is the inability to service their liabilities and debt. For millions across the globe, this harsh reality is felt. Scarcity is the main reason why economies exist. Civilizations have continually shown that this is true. The inventions and products that have provided many alternatives or solutions to scarcity, have kept their importance over time. Anything that battles scarcity is sure to create wealth, production, and increase the standard of living for all. Read the full article here.... http://www.bloomberg.com/news/2012-08-08/productivity-in-u-s-rebounds-as-employers-try-to-curb-costs.html