We need to find a fairer way of providing Goods and Services to the rest of the people on Earth.Cryptocurrencies and/or Gold Standard of money....maybe the answer to fight hyperinflation caused by too much printing of paper/fiat currencies by Governments and Central Banks all over the World. (https://nomorefiatmoneyplease.blogspot.com)
Australia's jobless rate jumped to 6.3 per cent in July despite the creation of tens of thousands of new positions, official data showed on Thursday, as the economy struggles to shift away from mining-led investment.
PHOTO: REUTERS
[SYDNEY] Australia's jobless rate jumped to 6.3 per cent in July despite the creation of tens of thousands of new positions, official data showed on Thursday, as the economy struggles to shift away from mining-led investment.
The jobless rate has edged up over the past year to around a decade-high, while wages growth has been weak and business investment outside the mining sector remains soft.
The size of the labour force also increased, with the participation rate - which measures the proportion of adults in work or looking for work - surging from 64.8 per cent in June to 65.1 per cent.
A total of 38,500 jobs were created last month, the Australian Bureau of Statistics said, with some 12,400 of the positions added to the economy were full-time while 26,100 were part-time.
The Australian dollar slipped slightly to 73.43 US cents after the data was released.
The seasonally adjusted July reading was higher than analysts' expectations and followed a revised 6.1 per cent reading in June.
The unemployment rate last reached 6.3 per cent in January this year and in October 2014, and before that in September 2002.
"The broad story here if you look over the last 12 months, we've touched 6.3 per cent unemployment a few times," JP Morgan senior economist Ben Jarman told AFP.
"We'll still in that range though admittedly at the top end of it. It's a bit of a disappointing result in that context." The Australian economy has chartered a rocky path as it exits from an unprecedented resources boom that has helped it avoid a recession.
Despite the increase in the unemployment rate for July, analysts do not expect the Reserve Bank to shift in its outlook for the economy as it had previously forecast it to peak to around 6.5 per cent.
The central bank is due to release its quarterly reading of the economy in its Statement of Monetary Policy on Friday.
Greece and Europe: Is Europe holding up its end of the bargain?
This week the Greek parliament agreed to European demands for tough new austerity measures and structural reforms, defusing (for the moment, at least) the country's sovereign debt crisis. Now is a good time to ask: Is Europe holding up its end of the bargain? Specifically, is the euro zone's leadership delivering the broad-based economic recovery that is needed to give stressed countries like Greece a reasonable chance to meet their growth, employment, and fiscal objectives? Over the longer term, these questions are evidently of far greater consequence for Europe, and for the world, than are questions about whether tiny Greece can meet its fiscal obligations.
Unfortunately, the answers to these questions are also obvious. Since the global financial crisis, economic outcomes in the euro zone have been deeply disappointing. The failure of European economic policy has two, closely related, aspects: (1) the weak performance of the euro zone as a whole; and (2) the highly asymmetric outcomes among countries within the euro zone. The poor overall performance is illustrated by Figure 1 below, which shows the euro area unemployment rate since 2007, with the U.S. unemployment rate shown for comparison.1
In late 2009 and early 2010 unemployment rates in Europe and the United States were roughly equal, at about 10 percent of the labor force. Today the unemployment rate in the United States is 5.3 percent, while the unemployment rate in the euro zone is more than 11 percent. Not incidentally, a very large share of euro area unemployment consists of younger workers; the inability of these workers to gain skills and work experience will adversely affect Europe's longer-term growth potential.
The unevenness in economic outcomes among countries within the euro zone is illustrated by Figure 2, which compares the unemployment rate in Germany (which accounts for about 30 percent of the euro area economy) with that of the remainder of the euro zone.2
Currently, the unemployment rate in the euro zone ex Germany exceeds 13 percent, compared to less than 5 percent in Germany. Other economic data show similar discrepancies within the euro zone between the "north" (including Germany) and the "south."
The patterns illustrated in Figures 1 and 2 pose serious medium-term challenges for the euro area. The promise of the euro was both to increase prosperity and to foster closer European integration. But current economic conditions are hardly building public confidence in European economic policymakers or providing an environment conducive to fiscal stabilization and economic reform; and European solidarity will not flower under a system which produces such disparate outcomes among countries.
The risks for the European project posed by these economic developments are real, no matter what the reasons for them may be. In fact, the reasons are not so difficult to identify. The slow recovery from the crisis of the euro zone as a whole is the result, among other factors, of (1) political resistance that delayed by many years the implementation of sufficiently aggressive monetary policies by the European Central Bank; (2) excessively tight fiscal policies, especially in countries like Germany that have some amount of "fiscal space" and thus no immediate need to tighten their belts; and (3) delays in taking the necessary steps, analogous to the banking "stress tests" in the United States in the spring of 2009, to restore confidence in the banking system. I would not, by the way, put "structural rigidities" very high on this list. Structural reforms are important for long-run growth, but cost-saving measures are less relevant when many workers are already idle; moreover, structural problems have existed in Europe for a long time and so can't explain recent declines in performance.
What about the strength of the German economy (and a few others) relative to the rest of the euro zone, as illustrated by Figure 2? As I discussed in an earlier post, Germany has benefited from having a currency, the euro, with an international value that is significantly weaker than a hypothetical German-only currency would be. Germany's membership in the euro area has thus proved a major boost to German exports, relative to what they would be with an independent currency.
Nobody is suggesting that the well-known efficiency and quality of German production are anything other than good things, or that German firms should not strive to compete in export markets. What is a problem, however, is that Germany has effectively chosen to rely on foreign rather than domestic demand to ensure full employment at home, as shown in its extraordinarily large and persistent trade surplus, currently almost 7.5 percent of the country's GDP. Within a fixed-exchange-rate system like the euro currency area, such persistent imbalances are unhealthy, reducing demand and growth in trading partners and generating potentially destabilizing financial flows.3 Importantly, Germany's large trade surplus puts all the burden of adjustment on countries with trade deficits, who must undergo painful deflation of wages and other costs to become more competitive. Germany could help restore balance within the euro zone and raise the currency area's overall pace of growth by increasing spending at home, through measures like increasing investment in infrastructure, pushing for wage increases for German workers (to raise domestic consumption), and engaging in structural reforms to encourage more domestic demand. Such measures would entail little or no short-run sacrifice for Germans, and they would serve the country's longer-term interests by reducing the risks of eventual euro breakup.
I'll end with two concrete proposals. First, negotiations over Greece's evidently unsustainable debt burden should be based on explicit assumptions about European growth. If European growth turns out to be weaker than projected, which in turn would make it tougher for Greece to grow, then Greece should be allowed greater leeway after the fact in meeting its fiscal targets.
Second, it's time for the leaders of the euro zone to address the problem of large and sustained trade imbalances (either surpluses or deficits), which, in a fixed-exchange-rate system like the euro zone, impose significant costs and risks. For example, the Stability and Growth Pact, which imposes rules and penalties with the goal of limiting fiscal deficits, could be extended to reference trade imbalances as well. Simply recognizing officially that creditor as well as debtor countries have an obligation to adjust over time (through fiscal and structural measures, for example) would be an important step in the right direction.
1 The euro and U.S. unemployment rates are not precisely comparable, but what matters for my purposes here is the overall pattern and direction of change.
2 The unemployment rate for the euro zone ex Germany shown in Figure 2 has been "backed out" of the official data using official figures on unemployment rates and the number of unemployed for Germany and for the euro area as a whole.
3 Some have pointed out that much of Germany’s trade surplus is with countries outside the euro zone. That observation is largely irrelevant to my argument. The German surplus still likely displaces other euro zone exports to third countries, both directly and by leading to a euro that is stronger than it would be otherwise. Moreover, weak domestic demand in Germany means less demand for imports as well.
Ben S. Bernanke is a Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution. From February 2006 through January 2014, he was Chairman of the Board of Governors of the Federal Reserve System. Dr. Bernanke also served as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.
Some 100 survivors were plucked from the water. PHOTO: REUTERS
PUBLISHED
8 HOURS AGO
ROME (AFP) - Over 200 migrants attempting the perilous journey across the Mediterranean were feared to have drowned Wednesday after their overcrowded fishing boat capsized off Libya.
The boat, believed to have been carrying over 600 migrants including women and children, ran into difficulty about 15 nautical miles off Libya and sent out a distress call, which was picked up by the coastguard in Sicily.
Two vessels – the Doctors Without Borders (MSF) ship Dignity One and Irish patrol vessel LE Niamh – were immediately dispatched to the scene, but the stricken fishing boat capsized after the migrants moved to one side in the hope of being rescued, the coastguard said.
Coastguard spokesman Filippo Marini said around 400 people had been rescued from the water while 25 bodies had been recovered.
“The boat overturned and sank quickly because it was made of metal,” Federico Fossi, spokesman in Italy for the UNHCR, told AFP.
The agency’s chief spokeswoman Melissa Fleming said on Twitter that “100 (migrants) were in the hull” of the fishing vessel when it capsized.
Seven ships and two helicopters were helping search for survivors.
More than 2,000 people have already died trying to cross the Mediterranean to Europe this year, the International Organisation for Migration (IOM) said on Tuesday.
Wednesday’s disaster could be the worst since 800 migrants were feared drowned off Libya in April.
WORKING FLAT OUT
Ireland’s Defence Minister Simon Coveney confirmed that the LE Niamh was diverted to the scene at 7am and warned “the loss of life is likely to be significant”.
“The crew of the Niamh are working flat out with their counterparts to rescue as many as possible,” he said in a statement.
Doctors Without Borders said there could have been “up to 700 people on board”.
Nawal Soufi, an Arabic-speaking Italian based in Sicily who is often contacted by migrants in distress, told AFP she had received a call earlier on Wednesday about a boat in trouble with more than 600 people on board.
‘FLOODED ENGINE ROOM'
Soufi said she was called by someone onboard who said the fishing boat, carrying men, women and children, was in trouble because its engine room was flooded.
Marini confirmed it was probably the same boat but it was too early to say how many people may have disappeared below the waves.
The latest shipwreck was set to shift the focus in the immigration debate back to the struggles of those fleeing war zones, after weeks of complaints from France and Britain over the disruption caused by asylum seekers at the Channel Tunnel.
European Commission chief Jean-Claude Juncker told AFP Wednesday that EU governments have a duty to help the flood of migrants arriving in Europe and not cave in to “populist” demands to turn them back.
He said he was disappointed that EU ministers had failed late last month to agree on how to distribute a total of 40,000 mostly Syrian and Eritrean migrants from overstretched Italy and Greece.
They agreed to start relocating a little over 32,000 of the arrivals among the EU’s 28 members in October, falling around 8,000 short of the target agreed by EU leaders at a summit in June.
“If we don’t get there on a voluntary basis, we will have to reconsider the Commission’s proposals,” the former premier of Luxembourg said.
Nearly all of the people crossing the Mediterranean so far this year, often in rickety boats and at the mercy of human traffickers, have landed either in Italy (97,000) or Greece (90,500), according to the IOM.
The so-called central Mediterranean route proved by far the deadliest, with just over 1,930 people dying as they tried to cross from Libya to Italy, while only about 60 died trying to reach Greece.
The eastern route is shorter and IOM said that traffickers taking people to Italy tended to use more unseaworthy vessels.
China launches plan to support high-end manufacturers
China's government will support companies that make high-tech equipment for a range of sectors including railways, energy and agriculture.PHOTO: AFP
PUBLISHED
AUG 5, 2015, 10:54 AM SGT
SHANGHAI (REUTERS) - China's government will support companies that make high-tech equipment for a range of sectors including railways, energy and agriculture, the top economic planning body said, as Beijing focuses on more value-added industries to spur its economy.
In a statement published on Tuesday, the National Development and Reform Commission (NDRC) said the government would ensure these industries received financial support and would be encouraged to make overseas acquisitions.
The government will also actively procure from these companies, the statement added.
The NDRC said these efforts were part of a two-year plan to create globally competitive, home-grown brands in six industries: railway transport equipment, high-tech marine equipment, industrial robots, electric cars, modern agricultural machinery and high-end medical devices.
With the economy growing at its slowest rate in decades and rising costs eroding China's competitiveness as the world's factory, the government is keen to move away from low-value manufacturing and in May unveiled its "Made in China 2025"strategy.
The government also merged its top two train makers this year to create the world's biggest firm CRRC Corp with the aim of exporting China's rail technology.
Malaysia confirms plane debris is from flight MH370
Debris found on an Indian Ocean island last week (above) is from MH370.REUTERS
PUBLISHED
3 HOURS AGO
UPDATED
10 MIN AGO
KUALA LUMPUR (AFP) - Debris found on an Indian Ocean island a week ago is from flight MH370, Malaysia’s prime minister said Wednesday, confirming for the first time that the plane which mysteriously disappeared 17 months ago had crashed.
“Today, 515 days since the plane disappeared, it is with a very heavy heart that I must tell you that an international team of experts has conclusively confirmed that the aircraft debris found on Reunion Island is indeed from MH370,” Prime Minister Najib Razak told reporters.
French prosecutors used more cautious language, saying only that there was a “very high probability” the wreckage came from MH370.
The Malaysia Airlines jet disappeared on March 8 last year, inexplicably veering off course en route from Kuala Lumpur to Beijing with 239 people on board, sparking a colossal but ultimately fruitless multinational hunt for the aircraft.
Last week’s discovery of a 2m-long wing part called a flaperon on the French island of La Reunion has provided the first glimmer of hope for relatives desperate for answers.
It was examined at a military lab outside the French city of Toulouse in the presence of Malaysian and Australian experts, Boeing employees and representatives from China – the country that lost the most passengers in the disaster.
Malaysia Airlines hailed the news as a “major breakthrough”.
“We expect and hope that there would be more objects to be found which would be able to help resolve this mystery,” said the airline in a statement.
Sara Weeks, sister of MH370 passenger Paul Weeks of New Zealand, said the confirmation ended “a week of turmoil”.
“We’ve had 17 months of nothing... so actually finding something is the first step towards pinpointing where it is,” Weeks told the Fairfax New Zealand media group.
Some families said the confirmation was not enough to lay the matter to rest, as they reiterated demands to know why the plane went off course, flying for hours after its communications and tracking systems were shut off, in what remains one of the biggest mysteries in the history of aviation.
“Now I want to know where the main body of the plane is so that we can take out the passengers and get the black box so we can know what happened. Only that, for us, will be full closure,” said Jacquita Gonzales, wife of MH370 chief steward Patrick Gomes.
Weeks, meanwhile, said it was “pretty disgusting” that she heard about the confirmation from a reporter and had not been contacted beforehand by the Malaysian authorities.
Gerry Soejatman, a Jakarta-based aviation consultant, said proof the flaperon came from MH370 was a “huge step”.
“People want all the answers, but look, let’s be real. We must be glad that we found something at all. Now we know roughly where it might have crashed,” he said.
“This answers a lot of questions actually. It eliminates other theories, conspiracy theories. If the black box is found later on, it is likely we could get more answers.”
The Malaysian premier gave no indication that the analysis of the debris yielded any clues into the cause of the disappearance.
Many relatives accuse his government and the airline of a bungled response to the disaster, possible cover-up, and insensitive treatment of families, charges that are vehemently denied.
“I would like to assure all those affected by this tragedy that the government of Malaysia is committed to do everything within our means to find out the truth of what happened,” said Mr Najib.
“MH370’s disappearance marked us as a nation. We mourn with you, as a nation.”
PAINT, TRACES OF EXPLOSION?
Jean-Paul Troadec, former chief of France’s BEA agency that probes air accidents, had earlier said the paint on the piece was likely to be a key element of the probe.
“Every airline paints their planes in a certain way,” he said.
“If the paint used is used by Malaysia Airlines... there may be more certainty.”
It is hoped that more detailed examination in the coming days can yield information on the final moments of the plane by showing how it detached itself from the wing, or whether it showed traces of an explosion or fire.
Scientists have also pointed to the barnacles attached to the flaperon, saying these could give an idea of how long the piece had been in the water, and perhaps where it had been.
“If it has cold-water barnacles on it that might tell them it went down further south than they think. Or if it’s got only tropical barnacles, that might tell them it went down further north,” said Shane Ahyong, a crustacean specialist from the Australian Museum.
NO 'MIRACLES'
Troadec had also warned that the analysis was highly unlikely to give any clues as to why the plane mysteriously diverted off course.
“One should not expect miracles,” he said.
But for the victims’ loved ones, any tangible piece of information is likely to help them in seeking closure, according to psychologist Carole Damiani, who specialises in helping the families of people who died in disasters.
“The grieving process is about untying oneself from someone, accepting that they will not be found and they have gone forever,” she said.
“When someone goes missing, it is difficult to say ‘I will stop looking’,” she added.
“You need people to say ‘he is dead, you are allowed to start the grieving process and undo this bond’.”
India gold imports could fall a fifth to US$28b as prices fall: refiner
The value of India's gold imports could plunge over 18 per cent to US$28 billion this fiscal year due to lower prices and despite likely higher volumes, the head of the country's biggest gold refiner said, helping to narrow the trade deficit.
PHOTO: AFP
[MUMBAI] The value of India's gold imports could plunge over 18 per cent to US$28 billion this fiscal year due to lower prices and despite likely higher volumes, the head of the country's biggest gold refiner said, helping to narrow the trade deficit.
Gold is India's second-biggest expense on the import bill after oil, and purchases of US$54 billion two years ago forced the government to raise the duty on the metal to 10 per cent.
"Since prices have fallen and could drop further, I think imports will be around US$28 billion," Rajesh Khosla, managing director of MMTC-PAMP India Pvt Ltd, told Reuters on the sidelines of a conference.
India, the world's second-biggest gold consumer after China, paid US$34.32 billion to import around 930 tonnes of gold in the year ending March 2015.
Gold prices are hovering around a 5-1/2-year low of US$1,077 an ounce hit in late July.
Mr Khosla said prices could fall below US$1,000 in the next few months as the US Federal Reserve is likely to raise interest rates. Higher US interest rates would increase the opportunity cost of holding gold, an asset that does not earn interest.
"The impression of uncertainty reflects on the prices of gold," Mr Khosla added. "Right now everybody seems to think the problems of the world have been sorted out. So there is no risk (to drive up gold prices)."
Gold is typically regarded as a good investment in times of financial and economic uncertainty.
In volume terms, the country's imports in 2015/16 are likely to be between 900 and 1,000 tonnes as lower prices will boost demand during the festive season at the end of the year, Khosla said.
Demand for gold jewellery is usually robust in India in the last quarter as it celebrate festivals such as Diwali and Dussehra when buying gold is considered auspicious.
India's July imports are expected to be between 70 and 75 tonnes, up from 57 tonnes in June, Mr Khosla said.
"Imports in August would be higher than July. Jewellers are stocking up for the festive season," he said.
