674 Tonnes of gold bars being kept in New York and Paris by the German Central Bank is to return to Germany by 2020. The gold, worth $36 Billion USD, was kept in foreign nations to quickly buy currency in times of crisis. The method of keeping gold in foreign banks, has been used by several notable nations. The German Central Bank stated also that the gold reserves in the Bank of England will not be touched, until concern or need to remove them arises. The bars that are returning however, were taken out of Germany due to the possibility of a Cold War Soviet invasion, that did not occur. The gold being taken out of Paris, is the remainder of the gold being kept in Paris for the German Central Bank.The reason for this, is due to the fact that both nations use the Euro, and seem to have no longer a need for the gold to sit in a French vault. The Germans will still keep some gold (37% of all gold reserves) in New York as a precaution against an economic crisis. The 37% may seem like a large number. It should, as Germany keeps less than 30%of its gold reserves in Germany. The gold being kept in foreign vault has caused much concern with the German people, economists, and even the German audit office. There have been suspicions that some of the gold isn’t real, and that the German and foreign authorities alike haven’t even confirmed their authentication. The German government has also come under fore for not keeping proper records and tracking of the bars, further provoking uncertainty.
So, will the German Central Bank’s decision to move the bars be a successful gander in their current economic state? Or will it all be for absolutely no gain, and only loss?
Gold bars, such as these, will be transported back to Berlin under orders of the German Central Bank and German Government(Photo credit: Wikipedia)
Hong Kong skyline, pollution has caused some economists to expect future hardships for entrepreneurs(Photo credit: xopherlance)
Over the course of the past 40 years, Hong Kong has been the core of the Asian shipping industry. The port of Hong Kong alone attracts thousands upon thousands of contracts and ships each year. Also over the past 40 years, the vehicles to transport the goods that come in and out of the Port have aged significantly. Some vehicles in current use are more than 50 years old. This poses a threat, to the environment, and the Government. Some of these vehicles rely on gasoline and petrol for fuel, while a majority rely on Diesel. Diesel, when ignited, creates carbon dioxide, helping pollute the streets and alleys of Hong Kong. The Government has attempted time and time again, to get these vehicles off the road. So far, they’ve failed. And so, the Government of Hong Kong is announcing a $1.3B investment to help phase out heavy polluting vehicles. According to a Government review taken last year, 2 out of every 5 diesel consuming vehicles in Hong Kong are deemed “heavy polluters” by the Government. The Government released planned statistics of carbon emmisions should this plan work: Airborne particle decrease by 80%, carbon dioxide emission decrease by 30%. These numbers may seem far fetched, if not ridiculous, but pollution in Hong Kong has reached such a point, that an average of 3,200 people die from it each year; a worrisome thought. All 3,200 die prematurely, mostly between the ages of 20-55. However, many small buissnessess rely on these diesel running vehicles as their lifeline. Being said, most cannot afford a newer transport vehicle to run their buissness, provoking a possible economic issue should the plan go into affect. Therefore, the government may risk an economic crisis in a sacrifice to improve living conditions and lives. However, the problem has stood for far too long, and with the increasing possibility of emigration levels (thousands have emigrated due to pollution levels since 1975) As a result of this emigration fewer are wanting to move into Hong Kong due to pollution, putting the Government in between a rock and a hard place. Nevertheless, pollution in Asia in general has risen over the past 20 years due to industry, over population, and lower tourism ratings.
So, will the Government of Hong Kong go forth with their possibly life changing investment? Or will they procrastinate, as they supposedly have for the past 35 years?
Renault, a prominent European automaker, has planned to cut about 7,500 jobs by the beginning of 2016. The cuts represent about 14% of Renault’s workforce in France. The company has more than 120,000 employees worldwide. These job cuts have been analyzed by Renault officials. Here are their statistics: 5,700 are to go through “natural wastage”, while the rest are due for retirement. Noted also, the company said the cuts should save about 396M euros (£328M) between this year and 2016.There has been suspicions that these numbers are inaccurate, but no official objection has been put forth. Renault claims that these numbers were agreed upon with union officials. Renault chief Carlos Ghosn warned last July that the carmaker was in a “difficult and uncertain” environment. This was in remark to the economic difficulties that the auto industry in France had started the summer off. As well,last month, Renault’s car registrations in France fell 27%, although the company is having more success in overseas markets. For the year, Renault’s registrations in France fell 20% to 551,334. That may seem a minor change, but it forced the company to make measures that will affect it’s workers. So far, so good for Renault, they have made man arrangements and agreements with unions and union workers, so as it seems, Renault shouldn’t stray too far from it’s current path. So, will these cuts graant the company breathing room with their funds? Or will these departing workers force Renault to rethink its actions?
The logo of Renault (Photo credit: Wikipedia)
Despite the adversion of the infamous “Fiscal Cliff”, the World Bank downgrades their growth expectations for 2013. The Bank’s prediction of growth this year? 2.4%. Now, this percentage is determined via information set out by the stock markets and world economy near then end of 2012 (among other factors). Many 1st World nations have experienced economic difficulties throughout last year, most notably Greece, the U.S., and Spain. Due to the fact that dozens of 1st World nation’s economies have been suffering lead to a major factor in the predictions of economic growth for 2013. The Asian markets have also suffered throughout 2012, most notably China, and it’s markets in terms of industry and production. Now, having said so, Chinese trading and shipping contractors have been relatively unaffected, but the demand for Chinese mass- produced products and machines has dropped a percent or two. The World Bank are also concerned about territorial issues, regarding a well-known island dispute between China and Japan, which could affect commerce between the two nations.Nevertheless, Chief World Bank officials have confidence that over the next decade, the world will have recovered fully from recessions, debt crisis’s etc.
So, will the International community prove the World Bank’s prediction wrong? Or will the World Bank’s predictions be right on target?
The World Bank & Inspection Panel’s headquarters in Washington, D.C. (Photo credit: Wikipedia)
The current Canadian $20 Bills (pictured above) received a polymer composition update by the Bank Of Canada(Photo credit: Diego3336)
As to the knowledge of many, the Bank of Canada released it’s new polymer $2o Bills, today Nov.7. These new bills have been regarded as a great pro and con to the economy. The reason being the polymer. The polymer that constructs the bills is near unrippable, but shrivels up like a plastic when exposed to heat. This was noted a year or so ago when the Bank of Canada released it’s $100 Polymer bills. Since the $100 polymer bills were released before the summer, they became quite popular with the general public. When summer hit though, the public became slightly angered due to the fact that even if exposed to 28 degree Celsius interiors of automobiles, they either fuse together, or shrivel up. This is expected to happen with the $20 Bills. The Bank of Canada has yet to comment on the issue. The Bank did release a statement that they plan to make 800,000,000 bills for circulation. This is equivalent to $16000000000! The bills, feature a portrait of Queen Elizabeth II, and on the reverse, the Vimy Memorial So, will these new bills become a hit with the general Canadian public? Or will they result in the failure of it’s predecessor?
The Yen character used by the Japanese economy(Photo credit: Wikipedia)
Japan exports were affected the most the first six months of 2012 as shipments to Europe and China tumbled. This prompted worries as to the fact that global export demands may be suffering. Japan’s tumble was far greater than economically forcasted. The forecast for their fall was 2.9% as in reality, it was 8.1%. Japanese companies and economic forecasters alike, blame the affect in the European trade tumble to be the European financial crisis. Lesser demands in China provoked the problem there, which showed that exports to China fell 11.9%. As with Japan, South Korea is also suffering export profit problems, but not nearly as severe as Japan. Japan’s deficit is also pretty large, approximately 517.4 Billion Yen ($6.5 Billion CAD). All of this combined provoked a suspected reduction in the request for Japanese Exports, which may affect both the world economy, but more less the Japanese. This lesser need for exports may also cost Japanese companies jobs, as some companies may be forced to close should the situation not improve. So, will Japan continue to suffer the coming economic hardships? Or will the world once again regain the need for Japanese exports?
Chinese Coal Burning Power Plants such as this one, will have major reviews and modifications in the coming years(Photo credit: Groven)
China is committing $372 Billion (CAD) to energy conservation projects and to reduce pollution across the People’s Republic of China. China is the World’s largest producer of greenhouse gasses, as they count for 29% of the world’s CO2 emmisions. This huge investment comes after China stated that it wants to eliminate 40%-45% of CO2 per GDP by 2020. This investment will “Bring China almost halfway to its goal of elimination carbon emmisions.” In a release from the State Council. Here are some statistics of how China is enforcing the industry to follow these regulations. Steel plants will have to reduce their energy use by a quarter per unit of production over the next 5 years. China will also reduce the amount of coal burning facilities as well, to help with the project. Many people think that this will prove successful, but the amount of money invested may be a bit much. However, like any investment, this is a huge risk. For the money invested may not be worth it, and it could all be wasted. We will know the result when the time comes.
World Trade Organization Logo(Photo credit: Wikipedia)
Russia formally joins the World Trade Organization today after 18 years of negotiations. Russia is now the 156th member of the world’s largest free trade organization. Russia is the last major leading power in the world to join the WTO. This was caused by the fact that 18 years ago, most nations in the world decided that it may be too drastic a change for Russia at the time, as it was still recovering from it’s Cold War Era economy. But finally, they have joined. Russia’s membership into the WTO will also give more access to foreign investors who can then invest in Russian buissnessess and companies. According to the World Bank, due to Russia’s induction into the World Trade Organization, Russia should see a 3.3% boost in their GDP (Gross Domestic Product) within the next three years, but due to the state of the Global and especially the European economy, that may all change. Russia was also before its membership, a large trade partner to many nations. Canada is one of them. Canada exported about $1.5 billion in merchandise to Russia in 2011 and imported almost $1.3 billion from Russia, to give an idea of how they were doing before their membership. So, will Russia’s economic sector greatly profit by their new membership? Or will this be the beginning of a fatal mistake that Russia took, that will destroy their economy?
A Frenchman sold more than $1.2M worth of video games to an unknown Canadian via eBay. Image via CrunchBase
A French video game collector sold a collection of thousands of video games on eBay for more than $1.2 million (CAD). The collection that was sold included every single video game for almost all Nintendo video game consoles (pre-2006). The astounding collection includes the rarest video games ever to be on the planet. One game imparticular, is 1 of only 2 on the planet which is worth thousands due to its mint condition and rarity. The seller, a Frenchman named Andre, says it was his greatest achievement to sell so much for even more. The total payment for the collection was approximately $1,231,930.69 CAD. Around 7000 games made the astounding collection. According to Andre, ”Any good video game store could sell instantly a 20,000 games stock, and it wouldn’t approach such price.” Apparently, the man has thousands more in his personal collection. The buyer remains anonymous, but is from Quebec in Canada. Andre states that the collection hasn’t yet been paid for and is worried that the buyer could be fake, which happens sometimes on eBay. Should the collection not be paid for by the end of the week, Andre plans to re-sell it again on eBay or a Japanese auction site. In the end though, this could also be one of eBay’s largest sales in terms of price and quantity, but will forever remain one of the world’s largest video game purchases.
A recent review by several chief executives show that many large U.S. companies don’t plan to hire or boost spending by the end of the year. This constant plan may affect how the world sees the U.S. economy. Job growth will affect should more companies and corporations decide to do this. Some economic forecasters that this current idea of spending cuts may influence others to do the same. The result of this may boost company value, but will show less development along the way. Companies, including Boeing Co. have the ”concern over increasingly persistent obstacles to a stronger recovery.” therefore, the delayed development and worrying with spending cuts. Many question this decision(s) however they can go both ways. To either economic boosts, or complete disaster.