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n of the FED hinted at reducing asset purchases which currently stand at US$85billion according to ‘The Globe and Mail’ online newsfeed, has made investors to pull out their investments out of the emerging markets and prepare to buy the dollars readying to invest in the US markets (Reuters 2013).
Domestic problems have not helped the situation get better; the unrests that have been experienced in the mining industry have worsened the strength of the rand. The closer of Lomnin mines unnerved investors forcing the large pull off witnessed in early may, and with the riots not seeming to end anytime soon and the negotiations still in progress, the rand seem likely to remain on low levels for the coming few months.
Another issue that is ailing the south African rand is the widening trade deficit that the country has; according to end of April report, the12-month debt levels had reached a staggering ZAR134 billion which is approximately 6.5% of the country’s GDP. With the strikes in the mines and crisis in the Euro zone where South Africa mainly exports its manufactured goods to, the deficit problems is not likely to go away and with it the current trends in the rand are to be maintained.
The import market in South Africa has suffered the greatest blow; importers of good from overseas have been forced to increase prices for their commodities, which have trickled down to the citizens in this middle-income country in Africa. Exporters, who some few years back were lobbying the central bank to weaken the rand have also suffered huge setbacks in their business as they have to pay more to import the heavy machineries that are used in mining and manufacturing industries. The South African chamber for commerce is also not very optimistic about the situation as it reported lower confidence levels in the markets in the last two months. Most of the firms that depend on imports and goods for the high-end consumers have had to cut on their costs that includes laying off
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Most Americans blame Obama government for not providing immediate solutions to the prevailing problems forgetting that he took over some of them from Bush government. For instance, the government in 2009 inherited a huge debt spread over by Bush government up year 2011 being money used to finance some of the most expensive wars undertaken by America.
For instance, the journal updates the readers on the current economic matters and trending business, politics and its drama among others. This article provides a thoughtful discussion on the trending economic issues like inflation and house prices, entrepreneurship ups and downs, and unemployment.
The worldwide crisis in the U.S financial markets and also the sluggish growth rates in the emerging markets like China are slowing down the trade. This has become a hindrance to the global economy; thus the baby booming generations have become highly concerned about the retirement income security.
This was unprecedented because economist believed that the economy was doing a lot better and communicated the same message to the public. Some of the reasons for the lower gross domestic product could be weak business investment, decreased consumer spending, and the reduction of the overall export by the United States.
In addition, the worsening economic state of china could also be considered as a contributing factor for America’s emergence as the top investors’ destination. The undergoing financial recovery spear headed by the Obama’s administration could have motivated most of the confidence in United States by foreign investors.
It gives the “illusion” that the company is doing well, or profitable due to its high valuation but really, it is the same stock as before (with a lower price). The practice is not healthy to the economy but it is not illegal so many companies still use this “trick” for their stocks to be valued higher and have higher returns.
Of course everybody knows that ObamaCare is a health insurance sponsored by President Obama but many are still oblivious of what it is really about, why many politicians disagree about it and whether if it economically advantageous to Americans both as a country and individual.
onsidering the launch of anti poverty campaigns by President Johnson and the calculation of Orshansky, a civil servant for determining the number of those people who are below the line of poverty. While the calculation is intriguing, it might seem to the rest of the world that
As a result, many readers have turned to this journal to identify job opportunities that are advertised in this journal on a weekly basis. Similarly, readers become aware of how different companies perform their duties and how the
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