Brazil, Argentina Economic Report

First, Brazil, Argentina Summary Brazil is located in the eastern part of South America, Eastern Atlantic Ocean, with the exception of Chile and Ecuador, with all the bordering countries of South America. Brazil's land area of 8,547,000 square kilometers, accounting for South America with a total area of 46%, second only to Russia, Canada, China and the United States, the world's fifth-largest country, the largest in South America. Brazil have the best and most Latin American industrial system, economic strength among the first in Latin America. The economic structure close to the level of developed countries, output and employment services sector, with a population of over 50%. Brazil once in the history of a single agricultural economies, sugar, coffee and so on for their main cash crops. From the 50s of the last century, Brazil "import substitution" economic model, and a large number of relying on borrowing to obtain the economic take-off, with gross domestic product in 1968-1973 average annual growth rate of 10%, to create a "Brazilian miracle" and Preliminarily established a relatively complete industrial system. In the 1980s, Brazil is facing a serious debt crisis, plagued by high inflation and severe economic stagnation and even recession. 90 from the start, Brazil to export-oriented economy in transition mode. In 1994 the Government implemented a real plan, an effective solution to the problem of high inflation, on the basis of which had a macro-economic structural reform, vigorously promote privatization. In 1997, as a result of the Asian and Russian financial crisis, Brazil hampered economic development. In early 1999, the Brazilian financial market turbulence, the government was forced to give up in 1994 since the implementation of the fixed exchange rate system, the sharp currency depreciation in the economy has been hit. As the Brazilian government has implemented stringent fiscal adjustment measures to increase revenue and reduce expenditure, so that rapid economic growth on the road to recovery, economic growth in 2000 reached 4.46 percent, and inflation has been basically brought under control. In 2001, global economic recession, Argentina's economic crisis and domestic electricity crisis, the Palestinian economy growth rate dropped to 2-2.5%. Lula came to power in 2003 after the implementation of the balanced development, social justice and stability in economic policy, taxation and promote social welfare reform, increased social investment to address poverty, employment and other issues, the results. In recent years, Brazil has to rid itself of the financial crisis, the economic development of a stable, rapid export growth, inflation under control. In 2006, Brazil's gross domestic product of about 1 trillion dollars, more than South Korea, the world's 10th largest economy. At present, the stability of the financial situation in Brazil, the increase in the inflow of foreign capital, production resumed growth, improve the employment situation, to achieve moderate economic growth. Argentina is located in the south-eastern South America, covering an area of 2,780,000 square kilometers, second only to Brazil is South America's second-largest country. Argentina has South America is the most economically developed countries, their industry categories, developed agriculture and animal husbandry, known as "the world's granary and meat library." But in early 2001 after the financial crisis hit, the sharp currency depreciation in the severe recession of the national economy, social unrest plunged into intense, the evacuation of a large number of investors in Argentina. Suffered heavy losses after the financial crisis, Argentina began to reflect on the country's economic development model. Kirchner came to power after Argentina's economic policies have been adjusted to ensure the smooth functioning of the economy and the health of public finances has become the core of the government's economic policy, at the same time the Government has stepped up its financial markets and regulatory intervention. ? In recent years, the world economy to grow steadily in the international market on higher prices of primary products for the financial crisis in Argentina out of the predicament created a favorable external environment. 4 recent years, Argentina's GDP average growth rate of about 8%, among the highest in Latin America. Kirchner during the administration of the Afghan government to pursue sound fiscal policy, foreign trade surplus at a high, the ability to resist financial risks greatly enhanced, maintain a healthy macro-economic operation. During this period, the proportion of poor people in Argentina from 54% to 23.4% from 17.8% unemployment rate decreased to 8.2 percent, the salary level of funding each year to maintain double-digit growth. Argentina before the National Assembly also amended the relevant laws, tax cuts for low-income and accumulate wealth. On the one hand, these measures greatly alleviate the social conflicts, on the other hand, the growing strength of the middle class, for Argentina's economic development and social stability to create favorable conditions. Argentine First Lady Cristina in October last year, the presidential election to win big advantage, was elected president. Kirchner's government economic policies continued. In recent years, Argentina is still slowly emerging from the shadow of financial crisis, the rapid development of the economy onto a fast track. Second, Brazil, Argentina to monitor the price situation Brazil since 1945 to start the process of industrialization. During 1945-60, encountered serious inflation, the Brazilian government has been trying to use administrative measures to control prices. From 1945 to 1993 only, prices on many occasions by the national government regulation and administrative intervention. But each time found after the intervention price, although the emergence of short-term price drop and rebound in the near future, resulting in three or four decades in repeated many times inflation, a vicious cycle. In the face of this situation, Brazil will be opened in 1994 as imports of national policy. In a large number of inexpensive imported goods under the impact of that, in order to seek the survival of domestic commodity prices also decreased gradually formed a level playing field for a virtuous circle of the situation, stabilize domestic market prices. In addition, Brazil is also appropriate to adjust the import and export tariffs, exchange rates and interest rates and other economic means, so that the Brazilian inflation rate has stabilized at about 4% in order to fundamentally stabilize the price Brazil, so that the national economy onto a sustained Development. Brazil is a market-oriented economy, in addition to a small number of countries involved in the national economy and people's major commodities such as energy, transportation, pharmaceuticals and some food prices due to control by the state, most of the commodity prices are determined by the market. The main means of price control: energy, unity from state-owned enterprises - Brazilian oil company responsible for the planning, production, sales and pricing; subway, unified by the state-owned enterprises - Brazil Mass Transit Railway Corporation is responsible for the planning, management, is responsible for the development of prices and subsidies; public transport, national Every three years for open tender for the right to operate the line, determined to take the survival of the fittest Ventures, a private company to obtain the right to operate the line at the same time clearly in the contract price; Highway, the former state-owned highway through open tender to sell 25 years The right to operate, operation and management standards and prices were clearly in the contract; aviation, water transport through the competition to obtain the right to operate the route, the price determined by the market; drugs, the state of the national production of drugs commonly used to stabilize prices; on rice , Daily necessities such as milk, Suihangjiushi prices, but those who take low-income subsidies. Brazil is responsible for the management of prices is under the Ministry of Finance of Brazil's economic development and price office, the agency does not directly manage prices, but rather to investigate and control, and price subsidies. Monopoly on the sale of high-priced, low-price dumping, counterfeit and inferior, in violation of intellectual property rights, unified by the Consumers Association to address the economy or to the court by the prosecution CaseTrust, the court can be based on the seriousness of the parties to the imposition of fines, cancellation of the right to operate until Be held criminally responsible. Argentina is also to introduce a market economy country, the vast majority of commodity prices determined by the market, the Government does not intervene directly. However, a number of important commodity prices, when the abnormal fluctuations, often by increasing government subsidies to carry out control measures. In recent years, such as to curb the price rise, the Government has increased the food, public transport and services in areas such as subsidies. In the first quarter of this year, the Albanian government into the types of government subsidies to reach 4,588,000,000 pesos (1 peso 3.18 U.S. dollars), more than 132 percent increase over the same period last year. One for energy and food subsidies increase significantly, in the field of energy subsidies reach 2,548,000,000 pesos, an increase of 218 percent. In the first quarter at a time when Argentina's Southern Hemisphere summer, the peak period for electricity, power supply is very tight, government subsidies to increase efforts to ensure a normal supply of electricity. In addition, due to international market prices of agricultural products, in the first quarter of this year, the Albanian government food subsidies in the 4.3 billion pesos, is 3 times the same period last year. Argentina is currently lower than domestic food prices in the international market prices, which spread a large part of the product, the Albanian government to maintain domestic price stability, we must continue to increase food subsidies. In addition, the delegation of Brazil, Argentina between the two countries and protect the housing price research conducted focus. Brazil, Argentina is the private ownership of land, housing a full market price, the Government does not directly control prices, the only group to provide low-interest loans to low-income public housing building, the so-called "Singapore residential" to the gradual eradication of slums. At present, Brazil, Argentina ongoing slum upgrading is funded by the federal government, the city government in charge of the land, building infrastructure and undertake specific operations, and rely on local community management and slum families together to complete a comprehensive reform plan. ? Brazil for the federal government's national housing construction, there are three main sources of funding channels, one staff security fund, and the other is turned over to 3% of the enterprise fund and the third is from the construction budget. Argentina slum upgrading projects by governmental organizations, public bidding, building successful businesses, to give priority to low-income families to choose the local workforce to participate in construction projects, which can greatly increase their employment opportunities and improve revenue. Brazil slum upgrading the distribution of housing are two ways for the lowest-income families, the government provided free housing and free rent, utilities and so on all charges. For low-income families will have to pay low rent on a monthly basis and paid in full 17 years after the owner of the property. The national housing market trading, Brazil provides that if the property has been bought, lived in 5-10 years can be traded, all of the personal income, but the head of the family can no longer apply for a new public housing. Slum demolition reconstruction of the distribution of housing in general smaller area, is to meet the basic needs of living, population and family situation and inter-generational distribution. Argentina, the average floor area of 50 square meters to 70, at Room 000, Room 000, Room 000, and so on. Brazil's low-income housing in general use in the area of 50 square meters or so, for the lowest income families with housing in general in the 38 to 40 square meters. The private development of housing, in the general area of 70 to 160 square meters, the price of 140000-400000 Palestinian dollars (1 U.S. dollars or about 4 Pakistani currency). More high-end residential and about 400 square meters, the price of 2,000,000 yen around Pakistan. The Brazilian Government has drawn up a national housing plan, to plan for all residents to provide appropriate housing, and to encourage self-built housing residents. At the same time, to take discrimination, focusing on low-income families in subsidized policies for different income groups to provide housing loans. The annual income equivalent to 1-3 times the minimum income line of low-income, the lowest annual income equivalent to 3-6 times the revenue line of middle-income class, you can buy government investment in the construction of housing, and to achieve a minimum annual interest rate of 1% Long-term preferential loans, they buy houses and the price level is different. Third, the harvest and experience Through this visit, study to understand the South American country's market prices, an increase of knowledge, a wide field of vision, was inspired benefit. (A) of the Government in commodity prices, an important regulation mechanism of inspiration. The first is the introduction of competition in the market, breaking the monopoly price. Brazil, Argentina and China are developing countries, but between the two countries with a high degree of privatization, market economic system better, especially in terms of price regulation on maximizing the role of market mechanism. Will be opened as a national policy of Brazil, by opening the door to participate in international competition, domestic enterprises will be placed on the international market competitive environment, the survival of the fittest, and thus break the monopoly, lower prices and keep prices low. According to the Brazilian Association of Economists Punia, Brazil since 1994 to implement the open door policy, by reducing import tariffs, export proper control, such as adjusting interest rates means a substantial decline in domestic prices. For example, the telecommunications industry, operating exclusively in the past, loaded up the phone to a few thousand dollars, in Sao Paulo, Brazil's fastest-growing areas, the installation of a telephone to wait for two years. Now a phone call to the installed capacity, and also to avoid the initial installation fee; Another example is the automobile industry also has been a great opening. The second is to promote the development of production, means to be used with caution administrative intervention. Mr. Punia said that in Brazil in 1994 before the implementation of a number of interventions to suppress the price, just the opposite effect. Practice has shown that simply take administrative measures, not the development of production, restrictions are only temporary, and the inevitable price rebound. Argentina's domestic market more price regulation is to increase subsidies to promote the development of production. In the current international food prices against the background of the two basic food prices remain stable. China's current market price continued to rise, especially food prices higher, to prevent fast economic growth to overheating and prevent prices rising structural evolution of the obvious inflation this year to become China's macro-control priority and an important goal. In an important part of the goods and services to implement temporary price intervention measures at the same time, we must control the prices of the two countries learn from the experience and lessons focus on commodity-related production and supply, to intervene in the selection of varieties, production and marketing of the burden, promote Production increased supply as well as subsidies to support policy co-ordination should consider implementation of the joint, with a view to promoting a virtuous circle, and sustainable development.

South American economic integration of the new trend

Covering a population of more than 300,000,000, the GDP size of the economies of more than 1.5 trillion U.S. dollars in South America's economies, walk alone in the lonely walk alone to do things on the age, in recent years as the "BRICs" and "VISTA" burst of red, also in the international arena Rapidly became; and the emerging potential of special international organizations, whether its substance, the mode of operation, future development trends and impact of that? Know who is worth pondering in-depth, there is still room for further observation ... BRIC concept has been moved to attract many international companies have been engaged in the BRIC markets, as the Golden one of Brazil's natural that this has become the next wave of beneficiaries. Austin Rating Consultant based on the revised formula, in 2005 Brazil's GDP over South Korea, the Netherlands, as well as Australia, the world's 10th largest economy. In addition to the outside of Brazil, BRICs Economic Research Institute will be Argentina as the next wave of proposals

Events in South America (the economy)

Latin America, the number of mobile phone users has reached 83,400,000, surpassing the 83,000,000 of the region's number of fixed phone users. Jan 7: The Central Bank of Brazil in U.S. and European markets to issue 12.5 billion dollars in long-term global bonds. Jan 13: Venezuela's domestic savers and investors rush to buy a large number of dollars, the U.S. dollar resulted in short supply, to reduce the state treasury reserves. Earlier this year, less than two weeks since the period of time, the Central Bank of Venezuela's foreign exchange reserves dropped to 4.2 million. At present, the country's foreign exchange reserves have dropped to 17,830,000,000 U.S. dollars more than in early 2000 of 21,240,000,000 U.S. dollars a decrease of 3,410,000,000 U.S. dollars. Jan 16: Mexico Attorney General's Office and military investigators in the northern state of Tamaulipas Li Basi captured the city of Matamoros, the country's main drug cartels one of the "Group of the Gulf", the third leader Saucedo and other 9 000 drug traffickers. In 2001, various anti-drug operation in Mexico, police seized a total of 469 tons of marijuana, 7.66 tons of cocaine and a large quantity of opium and heroin. In addition, destroyed 13 drug processing plant, a 1493 confiscation of motor vehicles, 11 boats, 7 aircraft, as well as large amounts of cash and weapons. A total of 5538 drug-smuggling suspects arrested in anti-narcotics operations. On the same day, Peru, according to statistics released by the Gold Commission report, the country's 2001 gold production was 135 tons more than in 2000 2.4 tons, the highest record. Antapite the south-central Peru, La Jinu Santa Rosa and three new mine started production in 2001, making that year gold production over the previous year, a sharp increase. Peru had planned to gold mining in areas such as re-investment 700,000,000 U.S. dollars, so that gold production over the next 6 years to reach 170 tons. January 21: United States Agency for International Data Corporation announced the transfer study report points out that in 2001 broadband users in Latin America grew 175 percent, and Latin American countries broadband users the fastest-growing in Brazil, Mexico, Argentina, Chile and Venezuela, whose Growth rate of more than 100%. Jan. 25: Bogota, Colombia A bomb exploded, killing 6 people were killed and 9 others were injured. Since 2002, in order to force the Government to make concessions in peace talks, the two Colombian anti-government armed groups have stepped up attacks on government targets and to the frequent damage to civilian facilities. In the capital, Bogota, near the province of Meta and Cundinamarca, there are 22 high-voltage power transmission tower was blown up, to the Bogota city to provide drinking water reservoirs in a large electric gates also were damaged, affecting the capital Electricity and water supplies. Feb. 2: In 2001, foreign investment in Chile 5,521,000,000 U.S. dollars, representing 48.7 percent increase in 2000. Chile Foreign Investment Committee reported that in 2001 Chile to absorb the bulk of foreign investment concentrated in the telecommunications industry, transport, water, electricity and gas and mining industry into three sectors accounted for foreign investment in the country that year the total foreign investment of 27.1 percent, 19.2 % And 19% respectively. Chile absorbed 37.1 percent of foreign investment from the United States. From Italy, Spain and Australia's foreign investment capital accounted for 19.4 percent of the total, 9.1% and 8.3%. Feb. 6: Venezuela's Atlantic continental shelf Deertana natural gas development program officially started. Feb. 6: The Government of Chile in 2002 decided to increase investment in the tourism industry, the financial allocation by the State 2,000,000 U.S. dollars for the tourism sector and promote tourism development projects. Feb. 8: UNESCO reported that existing in Latin America about 22,000,000 school-age young people can not enter the primary and secondary school. Argentina, Bolivia, Brazil, Cuba, Ecuador, Mexico and Peru, 7 Latin American countries, universal primary education; Costa Rica, Uruguay and Venezuela 3, and other countries close to achieving universal primary education. Latin America, there are still about 2,000,000 school-age children into primary school unable to read, or primary school-age children, about 20%. Latin America, age is only 54 percent of middle school students to be able to schools, out-of-school youths of about 20,000,000 people. In addition, conditional on the University of young people account for only 20% of school-age youth, and even some countries, only 12%. Feb. 19: Central Bank of Chile decided to guiding the country's banks to reduce interest rates by 0.5 percentage points, deposit and loan interest rates from 6.0% to 5.5%. This is the second time this year, Chile guiding banks to lower interest rates. March 4: Peru in the Andean region in the north heavy rains, causing the river run wild, to the lives of local residents and caused serious property damage. Cajamarca province cajabamba City Luliqiuke the upper reaches of the river flood so far has resulted in at least one person dead and 40 missing and 18 injured. In addition, the floods also caused the city's water and electricity, traffic disruption, and destroyed a number of houses, bridges and roads and other public facilities. March 5: The Uruguay government and the International Monetary Fund to provide emergency loans reached an agreement. International Monetary Fund, in principle, the Government made sure that Uruguay's economic development plan and agreed to provide 2 years 400,000,000 U.S. dollars loan to Uruguay to help finance an urgent need to address. March 5: The Central Bank of Brazil on the international market to issue 12.5 billion dollars in global bonds. The bonds for a period of 6 years, the annual return rate of 11.736%. Brazil initially plans to issue 750,000,000 U.S. dollars of bonds, but because of well-known U.S. investment institutions by the end of February to improve the prospects for Brazil's bond rating, these bonds by investors in hot pursuit, the subscription amount of up to 30 million. March 12: Brazil famous tourist city add to the epidemic of dengue fever in Rio de Janeiro. Nearly 24 hours to identify new patients up to 4213 people, making the city since the beginning of this year, the total number of patients reached 37,750 people. So far, died of dengue fever in Rio de Janeiro, a total of 23 people, ranking first in Jeonju. Rio de Janeiro as a whole the total number of dengue patients has more than 80,000 people dead has reached 35. March 12: Central Bank of Chile to the bank to guide interest rate of 0.75 percentage points lower deposit, lending rate from 5.5 percent down from 4.75 percent. This year Chile is the third consecutive month, Bank of guiding interest rates lower. April 19: In order to save on the verge of collapse of the financial system, the Central Bank of Argentina announced an indefinite cessation of banking and foreign currency exchange transactions. This is the central bank's aim is to prevent the freezing of bank financial control system of funding as a result of the intervention of the judiciary and a large number of outflow, thus avoiding the Argentine banking system as a whole pay for the crisis occurred. A senior central bank official said the government prepared to submit to Congress a "freezing of all bank deposits to the bond proposal" was passed by Congress after the banking and bureaux de change will it be possible to resume normal operation. June 10: Chile Civil Aviation Authority to stop the capital of Peru, Chile Continental Airlines all flight activities, sparked the dispute between the two countries. Is the cause of the Civil Aviation Authority, Continental Airlines asked Chile to use the cash to pay its airport and maintenance cost 3000 U.S. dollars, said the company refused. This matter has aroused strong repercussions in Peru. Peru Parliament adopted a resolution calling for an immediate halt to the Government of Chile Peru airline subsidiary of all business activities. June 14: The Andean Community of Nations's two largest trading partners of Venezuela and Colombia in the first 5 months of 2002 bilateral trade volume amounted to only 780,000,000 U.S. dollars the same period last year dropped by 25%. Venezuela in January 2002 to May of Colombia's exports to 289,000,000 U.S. dollars, and 491,000,000 U.S. dollars of imports, the trade deficit more than 200,000,000 U.S. dollars. June 13: Brazilian Minister of Finance announced Malan, Brazil spent about 10,000,000,000 U.S. dollars of the International Monetary Fund special drawing rights, to fight against Brazil's financial speculation in order to stabilize the volatile domestic financial markets. Agreed to by the International Monetary Fund, Brazil's foreign exchange reserves from the lower limit of 20,000,000,000 U.S. dollars to reduce to 150 billion U.S. dollars, the Central Bank in order to be able to use more of our foreign exchange reserves to intervene in the foreign exchange market, and in the international market by speculators to buy back a serious impact on Brazil's Short-term bonds. June 23: The Government of Venezuela Bolivia eliminated from the beef import ban. By the end of 2001, as a result of discovery of beef imports from Bolivia, and other fast-food hamburger food did not meet health standards, the Government had appointed issued a ban on beef imports from Bolivia ban. June 28: Police announced that Bolivia, La Paz, seat of the Bolivian government on the outskirts of major traffic accidents occurred, killing at least 31 people were killed and 12 were seriously injured. The vicious traffic accidents occurred in La Paz suburb of Villa search area to Los Kiyonga of of a small town on the highway. A full load of passengers in the car at high speed in all of a sudden out of control and crashed into the street 350 meters deep valley, resulting in numerous casualties. Initial investigations showed that the rain to wet and the driver was speeding caused a major traffic accident that the main reason. July 5: Chile parts of the outbreak of chicken flu, all Latin American countries have stopped imports of poultry products, Chile. Chile chicken producers association said that in order to prevent the spread of chicken flu, Chile has already slaughtered 500,000 chickens and caused huge economic losses. July 16: The Government of Chile announced that in order to protect its business interests, decided to import some steel products imposed 10% tariff. Provisions of the Act, at least in the next year, Chile will import hot-rolled sheet, plate and wire rod 10% of the tariff imposed to prevent the recurrence of such low-priced foreign products to enter Chile, damage their own iron and steel enterprises. July 31: Uruguay's Economy and Finance Minister Gary Atsou confirmed that after a long and difficult negotiations, the International Monetary Fund and the United States to Uruguay 1,500,000,000 U.S. dollars to provide emergency assistance to Uruguay to help ease the shortage of funds in the banking system to meet the urgent needs. The above-mentioned foreign aid funds on August 2 to the Central Bank of Uruguay to the Department. 1,500,000,000 U.S. dollars of international loans to Uruguay to make the financial system from collapse. August 1: As the country's financial situation deteriorated, the lives of low-income people become more difficult. Uruguay's capital Montevideo, there have been large-scale strikes and processions and meetings, asked the Government to guarantee the basic needs of residents. Montevideo, some of the criminals were looting shops, at least 20 people were arrested and several others in clashes with police were injured. August 4: Uruguay both houses of parliament were passed bill to stabilize the banking system in order to stabilize the banking system and prevent the country's foreign exchange reserves continue to drain. Uruguay economy has been in the past two years as a result of the Brazilian currency devaluation of the Argentine financial crisis and the dual impact of the devastated. In 2001, Uruguay's GDP fell 3.1 percent in the first quarter fell 10.1 percent in 2002, the year is expected to drop 8%. Since the beginning of 2002, Uruguay intense turmoil in financial markets, China's foreign exchange reserves from 3,000,000,000 U.S. dollars to 10 billion U.S. dollars, 66% loss; foreign currency deposits of the banking system of personal loss of 30%; national currency devaluation rate of 41.8 percent. Aug. 11: Argentina National Bureau of Statistics released by the income report showed that the economic and financial crisis, Argentina rise in the unemployment rate, low-income revenue fell sharply, leading to the current social Argentina income gap between rich and poor has widened, reaching The country's history, a record level. Since the 1970s, Argentina National Bureau of Statistics began to investigate the social gap between rich and poor statistics, Argentina's richest and the poorest of the two sectors of the growing income gap, of which 70 during which the former is 6 times that of the 80's 20 times; decline in the early 90's, but in 1993 began expanding; in 2001 to 33.9 times, 46.6 times that of 2002. Buenos Aires, the capital and surrounding areas are the poorest 300,000 families, has a population of 1,500,000, the per capita monthly income of about 29 pesos a day, less than 1 peso (about 30 cents); 300,000 The richest family, with a total population of 647,000 people, per capita monthly income for 1364 pesos. Sept. 2: Bolivia, La Paz, the seat of government on the outskirts of major traffic accidents occurred, killing at least 32 people were killed and 12 others were injured. Sept. 3: In the devaluation of the peso and assets of the double impact of Argentina's dollar-denominated assets of commercial banks appear more than 200 billion dollars in a huge deficit, the whole banking system is effectively bankrupt. September 7: From the beginning of the year, the dengue epidemic spread rapidly in Latin America, Latin America, 9 countries a total of 27 million people infected with dengue fever, of which nearly 100 people died of hemorrhagic dengue fever deaths. Brazil's dengue epidemic spread of the most serious in the first 4 months on was found in patients with dengue fever in the past 20 million, of which 62 people died. Honduras the number of dengue patients for 23,900 people dead and 16; El Salvador for 4251, 10 people died; Guatemala 2118, the death of 4; Mexico 3819, 4 people died. Venezuela has also been found in patients with dengue fever 26,400 people, Costa Rica 5612, 3500 Ecuador, Peru 2050 people. 4 countries which have not yet occurred in a patient death. Sept. 11: Latvia archaeologists from the Riga 120 km northeast of Simiertai in a nearby lake and found a sleeping Ancient Boat thousands of years. It is the ancient people used to Latvia and the relocation of the fishing boat. Ship captain 4.2 m, 0.48 m wide. Strangely enough, at the rear of the boat has a big hole in the other Ancient Boat extremely rare, at least 5,000 years. September 26: Brazilian President Fernando Henrique Cardoso and visiting Argentine President Duhalde, co-chaired the signing of a number of agreements in order to promote the two countries and the countries of the Southern Common Market trade development and the elimination of trade disputes between the two countries. Under the agreement, Brazil and Argentina in the automotive trade will gradually increase the duty-free imports for the other side of the ratio, and in 2006 the full realization of a free trade car; Argentina will put an end to pork from Brazil, the anti-dumping investigations and in the next 30 Days of the cessation of related anti-dumping measures; In addition, the central bank between the two countries will "credit mutual agreement" with a mechanism to enhance mutual line of credit to import enterprises to solve the problem of payment arrears, the two countries so as to encourage enterprises to increase exports. Sept. 30: Argentina's Economy Ministry issued a communique, the first 8 months of this year, the Arab-Israeli foreign trade surplus reached a total of 10,959,000,000 U.S. dollars. By the economic crisis, Argentina 8 months of import and export trade has fallen substantially and exports of 16,768,000,000 U.S. dollars for the same period last year fell 8 percent, while imports amounted to 5,808,000,000 U.S. dollars, the decline of 62%. October 9: The United Nations Office in Mexico pointed out that the economic crisis in Argentina and Brazil, there are factors of instability will have an impact on other Latin American countries in 2002 economic growth. The report said that in 2002 Latin America's gross domestic product from 6 months before the projected growth of 0.3 percent to reduce the 0.9 percent decline, the regional economy as a whole will be negative growth. Oct. 10: Latin America and the Caribbean as a result of the growing phenomenon of desertification, the region's arable soil degradation, poverty, population growth, and financial losses. Latin America and the Caribbean so far has been more than 300,000,000 hectares of land desertification, nearly 2 million hectares of farmland soil degradation. Three-quarters of the region-wide drought has been the land of "moderate or severe desertification." And every year to desertification in Latin America caused a direct economic loss of up to 20 million. Nov 22: The Argentine government announced this month since the lifting of 25 already in place for nearly a year of the current bank savings accounts and restrictions on withdrawals. This means that tens of thousands of depositors are free to dominate the bank savings and current accounts of about 210 million pesos (about 5,900,000,000 U.S. dollars) deposit. The Albanian government does not include measures to freeze bank deposits. Nov. 29: Argentina and Uruguay to connect the natural gas pipeline officially opened. Argentine President Duhalde and President Jorge Batlle of Uruguay, attended the opening ceremony. The gas pipeline at the starting point for the suburbs of Buenos Aires, Argentina Bilal angle, across the Rio de la Plata pipeline, the city of Colonia in Uruguay's landing, and then through the province of San Jose and Canelones Province finally arrived in the capital city of Montevideo, the total length of 405 km. Projects with a total investment of 150,000,000 U.S. dollars. Dec. 1: Venezuelan capital of Caracas, a small downtown discotheque in the early morning of the day the peak of business suddenly caught fire, 47 people were killed in the fire. Dec. 3: Peru national anti-drug Bureau announced this year, secret national anti-drug police carried out anti-drug operation has seized 127 tons of various drugs and arrested 12,400 drug trafficking suspects. Dec 3: U.S. bank JP Morgan announced that Brazil will be the government bonds rating from "neutral" fell "below average" and recommended investors reduced holdings of Brazilian bonds. Affected by this, the international market, Brazil's main bond prices fell 1.38 percent, the country risk index rose 1.4 percent to 1549 points. In the domestic financial markets, Brazil's currency, the real against the U.S. dollar fell 1.8 percent. Dec. 2: Venezuela to hold the country's total opposition strike to demand Chavez accept the "advisory referendum." Venezuela oil company part of the first-line managers and workers have joined the ranks of the strike, leading to the country's oil sector under-employed. Venezuela's oil sector is a pillar of the economy, 80 percent of the country's source of foreign exchange and 50% of the revenue sources of income to rely on the oil sector. Dec. 5: Brazil oil company announced that the company in the northern part of the seabed in the Persian Gulf Hom found a crude oil reserves of 3 million barrels of oil. This is the last two years, Brazil has made oil exploration is another major achievement.

South America's largest economic integration organizations, the Southern Common Market Council to support the Government of Bolivia

Southern Common Market Council 15 in Montevideo, capital of Uruguay issued a statement, expressed support for the Government of Bolivia. The statement said that the firm support of the Common Market of the South lawful government of Bolivia to support the people of Bolivia elected leaders and government agencies. Recently, Bolivia occurred in a number of large-scale demonstrations, protesters were not satisfied with Bolivian President Evo Morales to the economic and social policy, the road blockade, occupation of government agencies, destruction of public facilities such as a series of activities. Morales believes that this is the destruction of elements in the implementation of the United States supports a "civil coup" in an attempt to overthrow the current government. Mercosur is South America's largest regional economic integration organizations, member states are Argentina, Brazil, Paraguay, Uruguay and Venezuela, Mercosur Parliament based in Montevideo

Brazil to support economic integration in South America

Brazilian Foreign Minister Amorim on May 12 in Vienna, Austria, said the Southern Common Market is in addition to developed countries other than the best example of regional integration. He believes that the Common Market of the South despite the problems, but for the integration of developing countries in the region has set an example. He also said that Mercosur has always been the driving force to promote South American integration. Amorim stressed that the integration of South America for all South American countries a competitive advantage, Brazil has always supported the integration of South America

South American economic growth rate will fall to 3.5 percent

Island Development Bank (IADB) 19, said that the U.S. economic slowdown, the global stock market crash and Argentina Ting time of economic uncertainty, and so the impact is expected this year's South American economic growth by four per cent last year Fell to 3.5 percent. IADB believe that the global economic slowdown so that investors increase investment in South America worries so that the countries in the region In both lending and fund-raising more difficult. On the other hand, due to be adversely Argentina's domestic and international problems, investors long delay Extension of investment and weak consumer confidence, so last year in Argentina, there is absolutely no economic improvement. In order to avoid the Government itself in a financial crisis, finance ministers last week, Mei Fei announced a series of financial austerity measures, a substantial 4,500,000,000 U.S. dollars to reduce government spending and the abolition of several tax exemption. However, on the whole, this year's South American economy is not too bad, as the U.S. interest rate cut of at least a hundred 75 basis points, so in times of the national debt, is expected to be less interest to pay up to 2,500,000,000 U.S. dollars

2008 World Index of Economic Freedom ranked 92 in the Philippines

The Heritage Foundation and "The Wall Street Journal" published the 2008 annual Index of Economic Freedom in the world ranking, Hong Kong ranked the first 14 years in a row. Philippines ranked 92, China's first 126. The Philippines score was 56.9 points, the same as last year have, in 30 countries in the Asia-Pacific, the Philippines ranked 15th. And the Philippines in two areas of relatively good scores: freedom of trade and the size of government. Financial freedom in general, the Philippines because of the income tax and corporate tax burdens are heavy, but the tax revenue accounted for a lower proportion of GDP. Philippine lower the average tariff, but non-tariff barriers seriously. The total government expenditure on GDP accounted for 20%. Philippines in the business freedom, investment freedom, property rights and clean government, lower scores. The Philippine government on foreign investment to set up formal and informal barriers

Ranking of the 10 countries of the world economy

Countries in the world economy (measured by GDP) of the International Comparison of the three conditions be met: First, the GDP indicator of the same concept, and the other is the same as currency unit and the third is to measure the same price level, which eliminate the differences in prices of various countries in order to carry out volume comparison. For the first condition, by using the same version of the System of National Accounts such as 93SNA resolved; for the latter two conditions, the general use of purchasing power parity (PPP) exchange rate and method to achieve. According to the exchange rate is the result of the accounting method: In 1980, the total GDP of developing countries in the world GDP accounted for 23.5 percent of the total, developed countries account for the total GDP of the world total GDP of 76.5 percent; In 1985, the total GDP of developing countries in the world GDP accounted for 20.4 percent of the total, developed countries account for the total GDP of the world total GDP of 79.6 percent; In 1990, the total GDP of developing countries in the world GDP accounted for 15.9 percent of the total, developed countries account for the total GDP of the world total GDP of 84.1 percent; In 1995, the total GDP of developing countries in the world GDP accounted for 18.0 percent of the total, developed countries account for the total GDP of the world total GDP of 82.0 percent; In 2000, the total GDP of developing countries in the world GDP accounted for 19.5 percent of the total, the developed countries of the world's total GDP of 80.5 percent of total GDP. According to purchasing power parity is the result of the accounting method: In 1980, the total GDP of developing countries in the world GDP accounted for 40.6 percent of the total, developed countries account for the total GDP of the world total GDP of 59.4 percent; In 1985, the total GDP of developing countries in the world GDP accounted for 41.2 percent of the total, developed countries account for the total GDP of the world total GDP of 58.8 percent; In 1990, the total GDP of developing countries in the world GDP accounted for 41.2 percent of the total, developed countries account for the total GDP of the world total GDP of 58.8 percent; In 1995, the total GDP of developing countries in the world GDP accounted for 41.1 percent of the total, developed countries account for the total GDP of the world total GDP of 58.9 percent; In 2000, the total GDP of developing countries in the world GDP accounted for 43.2 percent of the total, the developed countries of the world's total GDP of 56.8 percent of total GDP. The above data indicate that the exchange rate in accordance with accounting law, from 1980 to the present, developing countries in the world economy of a smaller proportion, at the same time show a downward trend; according to purchasing power parity method accounting, from 1980 to the present, developing countries in the world economy The larger, but also on the rise. Economies of scale in the world top 10 national ranking, also showing a markedly different results. According to purchasing power parity basis, China, India, Brazil, Russia among the four large developing country with the world's top 10, their economic status improved significantly. Among them, China's GDP total in the world ranking from No. 6 of the Law on the exchange rate, purchasing power parity rose to law No. 2, after the United States; India rose to 13th from No. 4; no precedence in Brazil Changes in both the first 9; Russia rose to 16 from the 10th. The following table lists the 2000 GDP in the world top 10 countries: Precedence 1 2 3 4 5 6 7 8 9 10 Rate method USA, Japan and Germany Britain France, China and Italy Canada, Brazil and Mexico PPP France, USA and China Japan, India and Germany France United Kingdom Italy, Brazil and Russia The United States, the European Union, Japan's three major economies in the balance of power has changed: according to purchasing power parity method, the United States, the European Union, Japan's economy is a comparison of the total 100: 94:34, according to the exchange rate calculation method, the ratio for the three 100:80:49. From purchasing power parity calculations, the European Union and the United States equal the size of the economy, and the Japanese economy and the relatively small size. Can be seen, according to the exchange rate and purchasing power parity method of calculation of the world gross domestic product different. Exchange rate method underestimated the total economic output in developing countries, developed countries had over-estimated the total economic output. This is because the exchange rate reflects only between the prices of tradable goods relativities, rather than reflect the national construction materials, a variety of services and other non-tradable goods price relativities. In addition to the countries affected by exchange rate changes, the rate of inflation, mainly by the decision of the relationship between supply and demand in the foreign exchange market, and by the national balance of payments, interest rates, economic growth, or even government intervention, speculation and capital flows and other factors. At present, the exchange rate has become an important means of macroeconomic regulation and control. As a result, in the short term changes in the rate of exchange rates, frequent changes. Purchasing power parity method over-estimated the total economic output in developing countries, developed countries underestimated the total economic output. Purchasing Power Parity Act of lack of reliable data sources, data is not accurate enough, the quality (for developing countries, especially data). At present, to the International Comparison Program (ICP) for the framework of the PPP survey also not on a global scale application. China, India and other developing countries have not formally participate in all the ICP project. In this case, the World Bank's purchasing power parity law number (particularly in developing countries, the figure) is one of the few experts through the projections made, the results of the calculation errors. Compared with developed countries, many developing countries, economic restructuring, the low level of market opening to the outside world so as to construction materials, services as the main content of the non-tradable goods account for a large proportion. And the non-tradable goods are of poor quality, if such a low quality of non-trade goods on the international market with good quality goods and services mix for comparison, obviously over-estimated the purchasing power of money in developing countries, and over-estimated the size of its economy . Governments of developing countries for education, health care, rent, salaries, and other items to give different levels of subsidies, which have been seriously distorted prices. Summary of purchasing power parity approach to a certain extent, also over-estimated the least developed countries of the economic scale.

European Central Bank to the market more than 75,000,000,000 U.S. dollars capital injection to deal with the crisis

Washington Mutual Bank of the United States after the collapse of the European Central Bank decided to combine forces to the multinational market to provide 75,000,000,000 U.S. dollars of funds to meet the market demand for cash. The two other U.S. banks, Wachovia and National City Bank are also affected, the two banking stocks fell on the 27th more than 25%. According to Singapore's "Lianhe Zaobao" reported that the European Central Bank, the Bank of England and the Swiss National Bank to market the injection of 75,000,000,000 U.S. dollars of funds a week. U.S. Federal Reserve in order to maintain the overnight interest rate at 2 percent, was forced to take part in the recent injection of capital markets. Major banks are also trying to obtain a federal loan assistance, so this week, the average daily amount of borrowing from the central bank as much as 187,750,000,000 U.S. dollars more than in the previous week's record figure by a 4-fold. According to another report, the Washington Mutual Bank closed down the U.S. banking industry further. The fourth-largest U.S. bank Wachovia shares fell 27 percent, closed 10 U.S. dollars per share offer. National City Bank, another bank by market also dragged down the atmosphere in the doldrums, plunged 25.6 percent, closed down 3.71 U.S. dollars per share. At present, even though the two banks are still part of the surplus business, but investors worry that their mortgage-related business loopholes. According to media reports Friday that Wachovia has been with the National Bank of Spain, Wells Fargo and Citigroup, and other potential buyers to acquire an initial consultation issues. Wachovia No. 2 in the quarter to reach 9.1 billion loss 10,000,000 U.S. dollars and has announced plans to lay off 11,350 people. In addition, national banks are doing our best to reduce the loan was followed by housing construction loans and other related loan portfolio size. At present, this part of the lending bank loans accounted for 1.5 percent of the total. The Bank has recently announced layoffs. Analysts said the two banks have an urgent need to rush through a huge government rescue package.

Africa attracted foreign direct investment in new high

United Nations Conference on Trade announced on the 24th annual World Investment Report said that in 2007 the African countries to absorb foreign direct investment reached 53,000,000,000 U.S. dollars, again a historical record. The report notes that African countries over the past two years, foreign direct investment rate of return the highest in developing regions of Africa to absorb investment and increase the return on investment is mainly due to rising global commodity prices and African countries to improve the investment environment. The report said that last year the North African countries to absorb foreign direct investment in Africa, 42% in sub-Saharan African countries absorbed 58 percent. However, African countries, foreign capital flowing into the state of imbalance still exists, the largest foreign investment in 10 African countries, Africa accounts for the inflow of foreign capital for more than 82% of the total. While the African countries to absorb foreign investment last year reached a new record high, but African absorption of foreign direct investment in the global foreign direct investment in the proportion of the total is still very low, around 3%

Or join the world's major central banks cut interest rates

U.S. government 700,000,000,000 U.S. dollars rescue package abortion drama programs, shocked the world, an alarming decline in the Dow, the world's financial markets into a panic and confusion. According to Hong Kong, "Wen Wei Po" integrated foreign reports, the U.S. government, the leaders of the two parties and two parties and 30 presidential candidates hope to be able to re-bill package passed as soon as possible, the stability of global financial markets. House of Representatives to the United States to the fastest time Thursday in order to vote on the new program, 30, U.S. President George W. Bush made a televised speech that "now in critical condition, worse, if it is not timely, economic difficulties will be long and painful." Bush also national and global commitments, this is not the end of the legislative process, this week to rescue the market will continue to implement the program. The White House said the two parties presidential candidate Barack Obama and John McCain called George W. Bush, the White House dialogue between two "very constructive." Ao Mai Chang with by the Deposit Protection Although there is hope that the leaders of the House of Representatives to re-draft, but is generally considered that this was a waste of time, would not be desirable. Democratic presidential candidate Barack Obama said on the 30th, members should not be re-draft the program should be some slight modifications, such as federal deposit protection by the amount of 100,000 U.S. dollars to 250,000 U.S. dollars to upgrade and strengthen the banking system in the United States, to restore the public's financial system Confidence. Republican presidential candidate John McCain of respondents also put forward the same proposal. At the same time, Obama warned that, if we do not take timely action for the U.S. economy and American families have disastrous consequences. It is reported that House Democrats have two options, namely, amending the program to attract more Republican support, but that may divide the Democratic Party votes; another option is to give up the fight for the cross-party support, re-draft the program to include more assistance Terms of the owners, to bypass the House of Representatives, the Senate passed directly in the program. However, House Speaker Pelosi has always emphasized the need for cooperation between the two parties through this highly controversial bill, and now is widely accused of the stock market collapse of the Republican Party, the Democratic Party to take the second approach is very low. Members setback in the stock market forced into submission BMO Capital Markets analyst Busch said that the sharp reaction in financial markets may be pressured to make up. Busch said: "The stock market crash, the leaders of the two parties will find the remedy, the city is expected to save the program will be referred to another form of the National Assembly. Now the two parties should know that failure to take action, Wall Street's reaction will be fast How deep. "

Davos in the search for the world economy, "Dinghaishenzhen"

When the world's political and business elite of this year once again came to the small town of Davos, Switzerland, and they feel this is not just a ski resort off the cold, there are strong winds of the world economy, "the wind of recession." As the world's highest standards of non-economic event, the annual Davos World Economic Forum is an important trend in the global economy "wind vane." Last year, with the general mood of optimism, this Forum will be filled with the United States as well as concerns about global economic prospects. At the same time, China and other emerging economies can become the support of the world economy, "Dinghaishenzhen"? Growing the sovereignty of the Fund can be made to save the financial markets in the West who? Jan. 27 closing of the Davos Forum, a lot of questions left to the people. U.S. recession to last a year? Will the U.S. economy slid into recession, 23, Davos is the focus of the first seminar, the experts come up with a "certificate" is not optimistic. Well-known U.S. economist Nuri than Rubinstein, said: "The question is no longer whether the U.S. economy into recession, recession, but there are more serious." Roubini last year Davos Forum The only forecast the U.S. economy will be a turning point. In his view, the credit crisis is far from meeting ends, the impact of the crisis has spread to credit cards, auto loans and credit in areas such as the U.S. economy's recession is likely to last a year or so. Morgan Stanley Asia Chairman Stephen Roach also believes that the U.S. economy will experience a "very painful, a relatively long period of recession." As the second-largest U.S. investment bank Morgan Stanley in the fourth quarter of last year's second loan-to-bond investment losses as high as 94 billion U.S. dollars to set up 73 years ago for the first time quarterly loss. Roubini and Roach at the same time criticized the Federal Reserve's 22 emergency decision to cut interest rates, that it did little to help reverse the trend of recession. However, U.S. Secretary of State Condoleezza Rice to speak at the meeting said the rate cut and the U.S. government announced plans to stimulate the economy will have an effect, the United States is the world's economy is still the main engine of economic growth. IMF Managing Director Dominique Strauss - Kahn's view that it took compromise. He believes that the U.S. economy will be "a serious slowdown." Although different point of view, it is a basic consensus: The United States economic slowdown obviously is a foregone conclusion, and the global economy dragged down overall growth. China and India difficult to fill gaps in the U.S. "If the United States to play a sneeze, the world will follow the cold?" A forum for discussion on this topic. One of the "still" reveals people's expectations of the emerging economies. Chinese Academy of Social Sciences Institute of World Economics and Politics, Yu Yongding, director of the Forum during the "International Herald Leader," an interview that the Chinese government policy instruments available, by expanding domestic demand and make up as a result of the U.S. economic slowdown and the emergence of unfavorable export situation. According to his conservative estimates that this year China's economic growth rate will remain below 9%. Indian Minister of Commerce and Industry Kamal Nath was more optimistic. He believes that India's economic growth to a large extent depend on investment and support domestic demand, so the U.S. can avoid the impact of the economic slowdown. He said: "This will be the first time in the world, China and India, the two engines of growth driven by looking at (U.S.) recession." However, although China and India will not follow the United States, "cold", but would like to replace the United States "enough" is still too early. Roach pointed out that the current U.S. consumption is about the size of China and India combined 6-fold, if the Americans to tighten the purse, China and India will not be able to demand a premium on. Fund sovereignty dispute again In the last annual meeting, from Russia, the Middle East oil-producing countries and some Asian countries the total value of about 2.5 trillion-dollar fund to become a hot topic of sovereignty. At present, the fund's sovereignty over the hedge funds and private equity, the global financial industry has become the most important driving force for growth. Insiders predicted that by 2015, the fund will account for the sovereignty of the world's financial assets of 10%. What sovereign funds to rescue the market is good, or the threat of industry? In fact, the United States and other Western countries is their love-hate. On the one hand, the West would like to take the sovereignty of the Fund's ability to help financial institutions out of the sub-loan crisis and financial market turmoil in the shadow. A week ago, the capital loss of the two major U.S. financial institutions, Citigroup and Merrill Lynch acquired from Asia and the Middle East more than the sovereignty of the fund in recent 20,000,000,000 U.S. dollars of financing. On the other hand, the West also worry that the political sovereignty of the Fund with the intent to threaten their own security investments. U.S. Deputy Treasury Secretary Robert Kimmitt on the 24th of sovereignty at the meeting to discuss a special fund that, in view of the sovereignty of the Fund grew so fast, there is a need to be vigilant. He said the G-7 has asked the International Monetary Fund and the World Bank together with the sovereignty of their country to develop a set of voluntary compliance with the Code of Conduct. However, this was their country's sovereignty against the fund. Russian Deputy Prime Minister and Finance Minister Alexei Kudrin said that the sovereign funds are playing in the West to ease financial market liquidity shortage active role in their political intention to invest exaggerated accusations. Can be expected, disputes over sovereignty of the Fund is continuing. Much sovereignty to the Fund, that are subject to policy bottlenecks

U.S. economy: adjustment has begun

Morgan Stanley chief economist Stephen Roach (Stephen Roach) once again expressed his pessimism on the U.S. economy is expected. In his view, in 2007 the U.S. economy may be very surprised that a crisis or recession will be. "This (downturn in the U.S. economy) from the beginning of the real estate market." Roach said Mr. Greenspan as early as four months ago had said that real estate prices have reached the bottom, but in fact it continued to fall. The real estate market, including residential, industrial plant construction, real estate brokerage firm, and other related industries, the United States is in fact a great source of new jobs, while the housing market will bring down the U.S. job market and income growth of a great Impact. Merrill Lynch Asia Pacific chief economist Timothy Jomes Bond also of the view that the U.S. real estate market slowing down, consumer confidence declined in the U.S. economy will lead to a slowdown in 2007. This will lead to the goal of the U.S. Federal Reserve monetary policy changes, "we will not see the Fed raising interest rates further, but will cut interest rates." Former Morgan Stanley economist Andy Xie, chief Asia-Pacific region talking about the U.S. economy that "next year can stay in the past, but I think 2008 will be very difficult, in 2008 the world economy as a whole is likely to appear tough ups and downs, the main reason The United States is far from the real estate adjustment in the end.

What is the basis for future U.S. economic support

State Department of Labor announced on November 2 of the unemployment index in October rose by a substantial 0.5 percent, the U.S. unemployment rate reached 5.4 percent. Rise in the unemployment rate to the U.S. consumer confidence hit in the first capsule of the unemployed in the shy, shrinking consumption. Although much of the adverse impact is obvious, but the negative effect on consumption is not the most serious, and the unemployed accounted for 94.6 percent of the population employed in the fight against consumer confidence is on the economic recovery constitute the most seriously affected. The unemployment rate rose to the employment base hit consumer confidence, first of all from the "effect of concern." When the work of the people still have to see their own neighbors, relatives and friends of people unemployed, they will subconsciously worried about their jobs or incomes fall, also tighten their belts in order to reduce consumption. In fact, employment income groups fell, no longer just a concern, has become a grim reality. Statistics have shown that in the late 1990s, the U.S. consumer income growth has been higher than the inflation rate of 2.5 percent or so, and this year is worse than the drop to less than 1%. The slowdown in wage growth, indicates that consumption will gradually lose the support of the role of economic development. This was followed by reducing subsidies. For a long time, a fixed annual salary subsidies in the United States outside of the management staff of the revenue growth of a larger proportion, but "9? 11" terrorist attacks before falling trend, the situation is even worse. Many companies fell due to profit will be reduced or even completely canceled for many years to an employee of the subsidies. The latest survey shows that 68% of companies have varying degrees of reduced subsidies to employees, 22% of the companies simply cancel the subsidies. The decline in the level of subsidies as a whole, the employment of groups of consumption is bound to have a negative impact. Third, the phase of economic growth, over-time consumers are also a source of income. Now, because of under-employed businesses, working fewer and fewer opportunities for overtime, statistics show that in October, the total hours worked fell by 1.6 percent, since 1982, is the largest single-month decline. Consumers should be pleased that although the data are not many, they are not, such as the survey shows that almost all large enterprises this year and next year did not reduce the merit pay plan as a whole is expected to pay contributions will remain at the consumer's total income to 3% And 4%. In the period of economic downturn, merit pay is to enhance the morale of the employees of one of the important tools. The majority of U.S. economists forecast in the spring of 2002 the U.S. unemployment rate may rise further to 6.5% to 7%, the unemployment rate continues to rise and its impact on employment and psychological aspects, there will be a further blow to the consumer.

U.S. economic strength, how strong

U.S. government statistics published in 2001, U.S. gross domestic product of 10.2 trillion. In the third quarter of 2002 to an annual rate of the U.S. gross domestic product of about 10.5 trillion. Judging from the economic growth rate is not fast, but from the absolute value of the growth is still very substantial. In 2002 compared with 2001, preliminary estimates of growth in value may also be in the upper and lower 300,000,000,000 U.S. dollars, equivalent to about all the African countries of GDP a year. With the U.S. economy and other Western countries compare may be easier to see in the world economy that it's an important position. Released by the World Bank in the 2002 "World Development Indicators" report statistics as an example: in 2000 the world's gross national income to the income that is measured by the gross national product of 31.3 trillion. 9,600,000,000,000 U.S. dollars for the United States, the world's total revenue of more than 30 percent, ranked first; in second place as Japan's 4.5 trillion, accounting for the world's total revenue of nearly 15%, less than half of the United States ; Germany ranked third with a total value of more than 20,000 billion U.S. dollars, less than half of Japan. 7 largest economy in western countries, Germany, Britain, France, Italy and Canada, 5 countries, the total combined income of less than 6,800,000,000,000 U.S. dollars, only 70% of the United States. Even with Japan, 6 countries, the total income of only 11,300,000,000,000 U.S. dollars, only one country more than the United States nearly 1,700,000,000,000 U.S. dollars. As a comparison, the U.S. economy in the world economy where how important it is, the more clearly seen. Why is the United States in the world, such a "cow" is not hard to understand. As the United States can not let the world listen to it, and that is another matter.

U.S. economy

The American people have now met the high standard of living. U.S. economic system has been repeatedly criticized, but it does stimulate people to develop land resources, and encourage them to find newer and better ways. A small number of companies controlled by the colonial era most of the business empire. Most of them are family, father and son from the co-operation. Until today, small businesses in the United States economy continues to play an important role. However, in recent years, some companies have developed business at National Cheng Kung University. Industry In the United States in the industrial, manufacturing accounted for three-quarters of the total national production each year for the country for 4,500 billion U.S. dollars of income. This number reflects the value of the U.S. manufacturing sector, which does not include the costs of raw materials and supply costs, fees and fuel costs. The United States is the world's largest producer, the plant's annual production value of the goods, the world's second largest producer of the Soviet Union more nearly 500 million. On the base metals iron and steel industry, the U.S. produces one-fifth of the world; Motor account for a quarter of the world production, meat production accounts for one fifth of the world, and production accounts for one-third of the world's aluminum. In cheese, clothing, chemicals, paper, cardboard, textiles and other manufactured goods, the United States are the world's leading position. In the printing industry and the publishing industry, the United States is second to none. The largest of its most important industrial production, machine building, followed by the food industry. Other leading role in the manufacturing industries, including transportation equipment, chemicals, electrical and electronic equipment, basic metals, printing, publishing, paper manufacturing, and metal products manufacturing and so on. Throughout the history of the U.S. economy is a success from the colonial economy in transition to the 20th century, the world's largest industrialized nations of the course. The U.S. economy, both capitalism and the characteristics of the mixed economy. In this system, enterprises and the private sector to do the main micro-economic decision-making, in domestic economic life of the minor role; However, the sum of all levels of government accounted for 36% of GDP; in developed countries, the United States of society A relatively small network of well-being, the business of government control is also lower than in other developed countries. In all regions of the country, different center of gravity of economic activity. For example: New York City is the financial services, publishing, broadcasting and advertising industries at the center; is a Los Angeles film and television production center; San Francisco Bay Area and the Pacific Northwest coast is a technology development center; Midwest manufacturing and heavy industry center of Detroit is Famous motor city, Chicago is the region's financial and commercial center; to the south-eastern Chinese medicine research, tourism and building materials industry as the main industry and because of its salary costs lower than other regions, the manufacturing sector continued to attract investment. U.S. service sector accounted for the largest proportion of three-quarters of the country's labor in the service industry. The United States has abundant mineral resources, including gold, oil and uranium, but many of the energy supply are dependent on foreign imports. The United States is the world's largest agricultural exporting countries, mainly agricultural products, including corn, wheat, sugar and tobacco, the Great Plains in the central and western areas of agricultural production so that it astonishing as the "granary of the world." U.S. industrial products include the automotive, aircraft and electronic products. The United States also have well-developed tourism industry, ranking third in the world. U.S. aircraft also, iron and steel, electronic equipment and arms of the major exporting countries. The nation's largest trading partner is adjacent to Canada (19%), China (12%), Mexico (11%) and Japan (8%), followed by a day, up to about 1,100,000,000 U.S. dollars worth of products flow through the United States and Canada The national boundaries. The U.S. economy is considered to be the world's largest and most important economies. U.S. economy is highly developed, the world's countries with currencies pegged to the dollar, while the U.S. stock market is considered a barometer of the world economy. Although the United States per capita income among the best in the world, but the relative concentration of wealth, and Western Europe, compared to 40% of the population is relatively more poverty, and 20% of the more affluent. Since 1975, the low level of social mobility, the polarization of the labor market, the fruits of economic growth at the higher end of the flow of 20% of the families, the gap is due to the relatively higher in terms of economic freedom arising. However, the Gini coefficient, as shown in the United States that the average household income is still much higher than the vast majority of industrialized countries. And the United Nations in its "2006 Human Development Report," which the United States of the Human Development Index, the United States of the poorest 20% of the human development index and the self-proclaimed "superiority of socialism" of communist Cuba's National Human Development The same index. Since the 1980s, Ronald Reagan's presidency, the United States increased by neo-liberal economic policies on the use and reduce government intervention in the economy and reduce the size of the welfare system, since abandoned since the Great Depression of the long-standing, bias Kaiensipai interventionist economic policies. As a result, the U.S. government to provide social welfare services than other industrialized countries have little to lower domestic taxes and more dependent on the free market and private charities on. U.S. industrial manufacturing, led by California. This was followed by New York, Ohio, Illinois, Pennsylvania, Michigan, as well as a manufacturing center, and so on. The first U.S. manufacturing industry is New England along the river's development. From the rapid rivers and waterfalls to promote hydraulic machinery plant. Since coal has become the main source of power, many factories moved to Pennsylvania and other coal-producing states of the region. The big industrial cities such as Birmingham, Cleveland and Pittsburgh are a result of coal and prosperity. Wait until oil and electricity has become an important energy source, some industries will no longer be located in the coal-producing area. As long as sufficient manpower or raw materials, can be set up factories. Transit also be able to influence the establishment of industrial zones. Chicago has become the most important industrial centers of the United States, in part because it is located at the top of Lake Michigan, and the intersection of the continental United States. New York City Transit excellent, excellent port, making it the first U.S. city and manufacturing center. The Great Lakes region has made Buffalo, Detroit, Milwaukee, an important industrial center. In 1800 arising from the development of two big industrial revolution. First, the machine tool invention, and the other is the use of individual parts. Until the 20th century, the United States has no industry and the development of the two production lines at the association together. When the mind, low-cost mass production of a new era began. Henry Ford is the first to engage in mass production of risk-takers. Mass production makes the United States as the world's industrial giant, and raise the standard of living in the United States. Industrial automation to the United States of the importance of being constantly on the increase. Today, many of the industrial use of automatic machines. Automated production can reduce the manpower demand for labor, who made the training of senior technicians and engineers is more important position. Production automation to increase production, there have been many problems. For example, the machine has been replaced by workers on the other have to accept professional training, otherwise there will be the threat of unemployment. For the industrial sector to develop new products and the development of better technology is always full of interest, in order to achieve these objectives, the U.S. Open to set up more than 10,000 laboratory. These labs employ nearly 380,000 scientists and engineers, spent a year in scientific research funding is also up to 250 million. Industrial Research is a research project in the United States a very important element, from government, universities, colleges, as well as private support for the consortium. Agriculture The United States is the world's most important agricultural countries in the world. Farm production in the United States each year 90,000,000,000 U.S. dollars worth of agricultural products. U.S. farmers produced 50 percent of the world's corn, oats 20%, and 15% of chicken, pork, cotton, tobacco and wheat. In 1850, the United States for almost three-fifths of the working population are farmers living. Today, only 5% (about 4,250,000), who is still farming. The vast majority of domestic livestock and food crops and industrial crops are relying on their production, as well as the supply of exports. Machinery and scientific farming methods widely used, making the need for more manpower savings. In 1820, an American farmers out of farming food supply can only 4 individuals; Today, a farmer by farming out food to feed 56 individuals. U.S. farmers use the tractor, seeder, cultivators, harvesters and other machinery engaged in farming, these little people will be able to operate a large farm. Modern farming law, including improvement of fertilizers, plant resistance to disease, crop rotation and animal husbandry science and the feeding method, and so on. Overproduction of crops, look for the market to become an important issue. About 90% of U.S. farmers own their land, while others hire other people's land for farming. A large-scale farms in the United States in the mid-1970s, the average size of each farm 440 acres. When become more and more mechanized farms, farm land area is constantly increasing. In the 1930s during the Great Depression, the federal government promulgated a series of laws to protect farmers against low-priced, over-control of grain, as well as to encourage soil and water conservation. These goals until today or federal agriculture an important part of the plan. U.S. grain farming land area of almost 33,600 hectares. Types of grain and farming methods, according to different soil and climate change. Rocky Mountain, as well as in New England, first of all farmers planting corn in order to support their families. Then, the small-scale farms also produce some of the daily supply of poultry and nearby cities. But in southern California, where farmers have found that the soil, climate, flat coastal plain of the land and are suitable for cultivation of tobacco and cotton, the cultivation of these crops to form a piece of land in a systematic and farms. In the Midwest, the Trail Blazers found a broad, fertile land suitable for a variety of cereals and pasture, today, this is only one-fifth of the land area of the United States, including the United States but 60% of the arable crops. Whether on the acreage or economic interests, the U.S. corn are the most important crops. Other important crops, respectively, followed by wheat, soybeans, tobacco, cotton, sugar beet, peanuts, sugar cane, citrus, barley, apples, grapes and many other crops. The United States for more than a quarter of the area are grasslands and pastures. 11 states in the western area of about 10,600 hectares of public land is divided into a number of pasture areas, the private owner of the ranch by the Ministry of the Interior permission, you can use these pasture areas. Beef and dairy farms in the United States is the most important livestock. Midwest farms as well as the western hilly region is the largest beef cattle feeding areas; cows with the United States from the southern United States, Minnesota, New England to extend. Most of the pigs reared in the Midwest corn belt. In the United States, almost every farmer has chickens are raised to supplement the family's meat and eggs. But there are also some large group of farmers in particular keeping the chicken meat or chicken eggs. Mining The total value of mineral resources of the United States each year about 600 billion U.S. dollars, of which the value of oil production accounted for almost all of the 40% of the value of the mineral. Coal is second only to the value of mineral oil, natural gas is ranked 3. With an annual output of the United States accounted for 18% of the world's natural coal and oil, and accounts for 45% of the world's natural gas. U.S. industrial sector in the increasingly urgent demand for minerals, mining is a series of challenges - they have to discover new mineral deposits. Surveyor was pick and shovel used to find veins. Today, however, mining companies and drilling companies who employ advanced training of engineers and geologists to find new veins. These experts also try a new approach by those who at one time was considered useless low mineral content, to extract the mineral. Petroleum industry is engaged in the scientific method to explore the best example. From the beginning of 1900, the experts continued to predict that the United States will soon end in a few years in domestic consumption of oil stocks. However, until today, the new oil field is constantly being uncovered. Engineers have invented a new method of oil extraction, many have abandoned oil field operation again. In any case, USA Today, the amount of oil so that she has to import oil from abroad. Experts believe that research better technology and more investigation, is to reduce oil imports must do. The U.S. mining industry to improve the work of the ring within pits Pei's contribution to be considerable. At the same time, it has also increased ore production. Only the Soviet Union and Saudi Arabia's oil production than the United States. Texas, the United States is a major oil producer, accounting for domestic oil production and 40% of the world's output of 6%. California, Louisiana and Texas is second only to oil production. At the same time, the United States is the world's largest natural gas production. Texas natural gas production by about 40 percent of domestic output, reserves accounted for 30% of the country. Only the Soviet Union's coal production is greater than the United States. The United States the largest distribution network in a coal mine in Illinois, Montana, West Virginia and Wyoming. 8 of the Mississippi River in the eastern province of the country's coal output accounted for about 78 percent of production. Pennsylvania is the United States are the only reserves of anthracite. The United States for more than four-fifths of the iron ore production were arrogant Lakes region of Lake Michigan, Minnesota and Wisconsin. These soft ore by rail and shipping to Chicago, Pittsburgh steel these centers. The United States the use of one-third of the iron ore imports. U.S. production of copper in the first volume in the world. Main produced in Arizona, U.S. production accounts for almost half of total output. Utah is the second-largest U.S. copper production, production accounting for about one-seventh of the total output of the United States. Aluminum is a kind of iron known as bauxite production of 90%. In addition, Alabama and Georgia, there are iron ore bauxite. Often in the lead and zinc mining area in the same. The United States is the world's primary zinc production of the country. New York is the nation's largest zinc producing states. Missouri, is the most important lead-producing states. Arizona, Colorado, Montana, Nevada, South Dakota, Utah and most of the gold reserves of the United States. The main U.S. production of silver is the state of Arizona, Idaho, Montana and Utah. Trade The United States has the world's largest volume of trade, domestic trade and international trade much higher than that. Nearly 18 million Americans based on the wholesale or retail business to earn a decent living, the manipulation of these businessmen on the trade from wholesalers, department stores, down to the local grocery store. The United States each region to produce the most needed products, sales of the remaining material was re-shipped to other areas to sales. U.S. annual trade volume of domestic wholesale at about 5,800 billion U.S. dollars. The retail area by as much as 645 billion dollars. The mid-1970s, the United States each year from foreign import 1,200 billion U.S. dollars worth of goods, the output value of 11.5 billion U.S. dollars of goods. America's most important trade partner Canada is no doubt. The United States will export one-fifth of the goods shipped to Canada, but also to one-fifth of Canada's exports of U.S. goods in return. The other U.S. trading followed by Japan, West Germany and the United Kingdom. China and the United States, Brazil, France, India, Italy, Mexico, Venezuela and other countries have trade relations with China. U.S. exports of primary goods, including machinery, communications equipment, food, wild animals, products and raw materials (such as cotton, soybeans, minerals, etc.). The main fuel for the importation of goods, machinery, communications equipment, as well as processed products. Throughout the history of the U.S. economy is a success from the colonial economy in transition to the 20th century, the world's largest industrialized nations of the course. The U.S. economy, both capitalism and the characteristics of the mixed economy. In this system, enterprises and the private sector to do the main micro-economic decision-making, in domestic economic life of the minor role; However, the sum of all levels of government accounted for 36% of GDP; in developed countries, the United States of society A relatively small network of well-being, the business of government control is also lower than in other developed countries. In all regions of the country, different center of gravity of economic activity. For example: New York City is the financial services, publishing, broadcasting and advertising industries at the center; is a Los Angeles film and television production center; San Francisco Bay Area and the Pacific Northwest coast is a technology development center; Midwest manufacturing and heavy industry center of Detroit is Famous motor city, Chicago is the region's financial and commercial center; to the south-eastern Chinese medicine research, tourism and building materials industry as the main industry and because of its salary costs lower than other regions, the manufacturing sector continued to attract investment. U.S. service sector accounted for the largest proportion of three-quarters of the country's labor in the service industry. The United States has abundant mineral resources, including gold, oil and uranium, but many of the energy supply are dependent on foreign imports. The United States is the world's largest agricultural exporting countries, mainly agricultural products, including corn, wheat, sugar and tobacco, the Great Plains in the central and western areas of agricultural production so that it astonishing as the "granary of the world." U.S. industrial products include the automotive, aircraft and electronic products. The United States also have well-developed tourism industry, ranking third in the world. U.S. aircraft also, iron and steel, electronic equipment and arms of the major exporting countries. The nation's largest trading partner is adjacent to Canada (19%), China (12%), Mexico (11%) and Japan (8%), followed by a day, up to about 1,100,000,000 U.S. dollars worth of products flow through the United States and Canada The national boundaries. The U.S. economy is considered to be the world's largest and most important economies. U.S. economy is highly developed, the world's countries with currencies pegged to the dollar, while the U.S. stock market is considered a barometer of the world economy. Although the United States per capita income among the best in the world, but the relative concentration of wealth, and Western Europe, compared to 40% of the population is relatively more poverty, and 20% of the more affluent. Since 1975, the low level of social mobility, the polarization of the labor market, the fruits of economic growth at the higher end of the flow of 20% of the families, the gap is due to the relatively higher in terms of economic freedom arising. However, the Gini coefficient, as shown in the United States that the average household income is still much higher than the vast majority of industrialized countries. And the United Nations in its "2006 Human Development Report," which the United States of the Human Development Index, the United States of the poorest 20% of the human development index and the self-proclaimed "superiority of socialism" of communist Cuba's National Human Development The same index. Since the 1980s, Ronald Reagan's presidency, the United States increased by neo-liberal economic policies on the use and reduce government intervention in the economy and reduce the size of the welfare system, since abandoned since the Great Depression of the long-standing, bias Kaiensipai interventionist economic policies. As a result, the U.S. government to provide social welfare services than other industrialized countries have little to lower domestic taxes and more dependent on the free market and private charities on.

Soft-dollar decision of the U.S. economy in the future

U.S. government adhere to the verbal strong dollar, weaker dollar actually allow the key point is: soft dollar policy in the United States a new component of macroeconomic policy, the policy at this time to launch all-round rejuvenation of the U.S. economy is a heaven-sent opportunity Depreciation of the U.S. dollar last resort The current weak dollar policy of the United States in order to stimulate the sluggish economy, a new package of macro-economic policies as an integral part. The new macro-economic policies of the United States by the following main elements: the first is to lower interest rates: the Fed from early 2001 to start lowering interest rates 12 times already; is the second tax cut: The U.S. Congress has recently adopted by President Bush 350,000,000,000 U.S. dollars of tax cuts , Although the size of the tax cuts have greatly reduced, but after all of the economic downturn will have some stimulus; depreciation of the dollar is the third policy: the United States in an attempt to stimulate exports and thus stimulate economic growth, which in international economic policy coordination and Stirred up great controversy in the international financial markets; is the fourth oil reserves policy: the war in Iraq, the United States efforts to expand oil reserves and increase economic growth momentum of the energy infrastructure. If, according to the chronological order, the soft-dollar policy in the United States issued a final macro-economic control policy, and in fact the U.S. economic recovery is finally able to order the hanging. From the effects of policy, tax cuts and a longer delay, the effect is difficult to grasp; has cut interest rates 12 consecutive times, the effect is not obvious, therefore, also blamed the Federal Reserve; more effect is the policy of the oil reserves policy, the United States Taking advantage of the war in Iraq to increase national oil reserves, but also a great deal of control over oil resources, U.S. economic growth momentum with the energy of a solid foundation. As a result, the U.S. economy is the most important thing is how to improve the macro-economic policies and other aspects of the policy portfolio to match in order to achieve the economy has clearly recovered soft dollar policy has become the new U.S. macroeconomic policy mix of the most important component of the . At present, with some signs of recovery in the U.S. economy, the United States tried to promote investment through tax cuts and lower interest rates to promote the production, export promotion weaker dollar will increase employment and stimulate further economic recovery in Mexicali. The implementation of soft-dollar policy will help curb the trend of deflation, which is the current U.S. economy can bear. At present, the U.S. stock market continued to rise significantly, even the three major stock indexes hit new highs in the past two years, the exchange rate will be reduced in favor of bank lending, and enhance consumer confidence. Therefore, the U.S. government to implement policies dollar right time. U.S. dollar assets was also dispersed to The reality that the United States needs to absorb a large number of foreign capital to make up for the huge trade deficit, it is therefore concerned that the implementation of soft-dollar policy would affect the flow of funds to save the world, the United States, the United States in the investment will flee the United States. According to statistics, in 2002 the U.S. current account deficit of its gross domestic product accounted for 5% of the total number 503,400,000,000 U.S. dollars is expected in 2003 the U.S. current account deficit accounts for at least the proportion of GDP will reach more than 4%. At the same time, the United States on tax cuts, borrowing to foster economic growth, making the federal government's budget deficit continued to rise, in 2003 the federal government's budget deficit could be as high as more than 400,000,000,000 U.S. dollars. On the other hand, in the 1990s in the U.S. economy for 10 years of high growth, the wealth effect arising from the dollar also overflow the world, not only dollar-denominated assets to further expand the coverage, but also the world's dependence on dollar-denominated assets increased. At present, the world's reserves of foreign exchange reserves in dollar assets, an unprecedented rise in Asia alone reached 1.2 trillion dollars of foreign exchange reserves, the world's foreign exchange reserves accounted for nearly 80% of the total, most of them for dollar-denominated assets. The world's dollar-denominated assets have had a cumulative effect of the new: on the one hand, increase the international financial system to the degree of dependence on dollar-denominated assets; on the other hand, an increase of international economic dependence on the dollar. People worried about the dollar led to the loss of wealth at the same time, not too much to flee U.S. assets, and not allow the dollar declined too, have to invest in U.S. assets, they have had a return of U.S. dollar assets of the new trend in the external environment in order to give the United States To support the economic recovery. In the past the United States must be based on a strong dollar to attract foreign capital to invest in dollar-denominated assets, but now it must be the natural flow of external funds in U.S. dollar assets in order to maintain the exchange rate is relatively balanced. The U.S. Treasury Department data show that as of June 11, foreign central banks from the Federal Reserve Bank of hosting the Treasury up to 746,600,000,000 U.S. dollars, representing an increase of 1 year in the past 126,000,000,000 U.S. dollars. There are indications that the weaker dollar in the case of a large number of Asian countries in recent months to buy U.S. Treasuries in order to reduce the pressure on their currencies. Compared with Europe and Japan, the United States remains the world's long-term investment reserves the Holy Land, and the market in Europe and the United States between the outflow of capital inflows, mostly short-term funds. The Japanese government is the direct holdings of U.S. assets, the European Central Bank is an indirect encouragement for the euro to reduce the relative assets, such as increased purchases of U.S. dollars of assets. As a result, the international environmental conditions of the new changes in a short period of time in the United States have the courage to implement soft-dollar policy, the flexibility of the exchange rate policy has been reflected in the new. Coordinate the operation of the market exchange rate In the United States a new package of macro-economic policy mix, with the exception of internal matching, international macroeconomic policy coordination is also a new trend. Not long ago in Evian, France for G-8 summit should discuss exchange rate issues, but did not reach the United States and Europe and the U.S. dollar exchange rate on the three major economies, currency exchange rate coordination. The weaker dollar, people have different views, debate, to build from here. Under the floating exchange rate system of exchange rate policy coordination, in a very different system of fixed exchange rate policy coordination can only be achieved through the operation of the market is conducive to national or economic entities reasonable price, no one can provide a model. Depreciation of the U.S. dollar is about at home and abroad "kill two birds with one": to meet the domestic need for policies to stimulate the economy and easing international pressure on exchange rate policy coordination. From the dollar's exchange rate policy co-ordination of the international demand to see the dollar pushed the euro down naturally, which is why in order to keep inflation under control as a fundamental concept of the European Central Bank not to cut interest rates for a long time, but early in June eventually forced to cut interest rates by 50 basis points. This game also shows that the situation between the United States and Europe of the basic contradictions in the economy is the contradiction between the monetary and financial. Japan on the other hand, the relatively weaker dollar also pushed up the yen, but the United States and Japan is not a major contradiction between the monetary and financial conflicts, but the export trade of conflict, pushing up the yen will help ease between the United States and Japan A visible trade deficit to force Japan to continue to carry out structural adjustment. From the international point of view of policy coordination, as the basis of different countries, to deal with fluctuations in the exchange rate policy is also psychological, Japan has to deal with exchange rate fluctuations in the experience of fear is not actually weaker dollar, Europe is more a lack of experience. For a long time, often used in some of the world's leading monetary policy or pattern of the policy carried out under the operation of the market, or if the trend of policy happened all of a sudden reversal of the larger, giving rise to confusion on the market. From the weaker dollar after the current round of the responses shows that the policy game continued. U.S. government will be a new round of policies to the apparent recovery, they would come to naught

The U.S. economy out of the current crisis will meet recovery

Former Federal Reserve Chairman Alan Greenspan said on the 2nd, even though the U.S. is experiencing a rare and painful financial crisis, but he expects the U.S. economy will soon recover. Comprehensive news coverage on October 2, the former U.S. Federal Reserve (Federal Reserve, referred to as Fed) Chairman Alan Greenspan (Alan Greenspan) 2 on the U.S. economy delivered a speech optimistic. He said that despite the current situation is described as a rare and painful financial crisis, but he expects the U.S. economy will soon recover. Greenspan said the United States is experiencing a rare major financial crisis; end of the day, as investors fear the step by step to try once again to accept the risk, the market will be gradual revitalization. Greenspan said the cause of the current credit crisis because of the financial market's lack of trust accounting records, and the level of bank capital over the past year related problems also led to one of the reasons for the crisis. However, Greenspan said that the trust should be returned, investors will hesitate to re-enter the market. Greenspan said that at that time, the economic recovery will begin, "the economy is expected to recover as soon as possible."

Relatively closed economies in the euro zone will not be subject to U.S. economic decline

European Central Bank President Duisenberg this week that a U.S. economic slowdown has not affected the euro-zone economy, at present there is no indication that European economic growth slowed down. Duisenberg at the European Parliament Economic and Monetary Affairs Committee made the above statement. At the meeting, inspiring him to predict that the euro-zone economy will be strong growth in 3 years in a row, the inflation rate this year will prompt the European Central Bank to lower the target rate below the unemployment rate will continue to decline. Last week, Federal Reserve Chairman Alan Greenspan has just announced that, despite the two rate cuts in January, the U.S. economic outlook is still good, just Duisenberg's remarks contrast. Duisenberg acknowledged that the world economic slowdown may affect the euro-zone exports, but he stressed that the European economy is heavily dependent on domestic demand, largely closed, blocking does not. He disclosed that the central bank, according to insiders estimated that over the next 3 years in the euro zone economy will grow 3.4 percent last year, slightly lower level, but will remain "strong." However, Duisenberg's remarks in Germany was the heat. German National Chamber of Commerce Federation, a director of the view that in accordance with the Duisenberg, European Central Bank will keep short-term interest rates in Europe above the potential rate of economic growth, which will greatly inhibit investment. He pointedly commented: As a European, not only will the new economy in the area behind the United States, will also be lost in traditional areas of economic opportunity. Since the mid-year, a marked slowdown in economic growth in Germany. Economists pointed out that since Germany last year, the inflation rate low, making the real interest rate is higher than the average level of the region, so Germany than in other countries within the euro zone increased by the European Central Bank's tight monetary policy