World Economic News (Mon 1st. Nov ’10)

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  • Garryentropy

    German unemployment is at its lowest level since 18 years,it has just dipped under 3 million,perhaps it is because they are manufacturing the machines for the eastern factories,vorsprung durch teknik, nicht wahr?

    • http://overthepeak.com/wordpress/ Mystic

      Germany is fine and dandy (except the banks have lent the German’s savings to people who may not pay it back)……….but otherwise, yes…… the plan to conquer Europe is purring along nicely.

      • Garryentropy

        people like me!

        • CSArichardo

          I love the high volumn beer bottling machines these guys produce… or do I really love the beer they produce ? Yes the Germans have obviously conquered me and I do not even live in Europe !

      • Jantje

        That is why Merkel wanted to take away the vote rights of countries that do not stay in the budget demands.
        Once a German, always a German. Still that 3rd, sorry now 4th Reich thinking.

  • http://paradoxnl.wordpress.com/ ruud

    Indeed, it looks like last years more then 1 trillion dollars of extra government spending has (until now) no positive effect on the labor market.
    Maybe there aren’t better investment opportunities to stimulate the labor market…or ‘the government’ is not so professional…
    A worrisom picture.

    • http://paradoxnl.wordpress.com/ ruud

      Indeed, it looks like the more then 1 trillion dollars of extra government spending of last year has (until now) no positive effect on the labor market.
      Maybe there aren’t better investment opportunities to stimulate the labor market…or ‘the government’ is not so professional…
      A worrisom picture.

  • CSArichardo

    Nice baseball hat ! I see that you are adding to your collection. Yes education whether formal or not always helps you in finding a job. The key is having the drive and motivation to be a continual learner.

    • http://overthepeak.com/wordpress/ Mystic

      I’ve got the drive and motivation to learn continually (I hope no one offers me a job~!).

  • Anonymous

    Student’s graduating with a Bachelor’s Degree are incurring an average debt of $28,000. I wonder how a 24 year old with a spouse and a child on the way can afford housing, transportation, food, clothing and medical on top of the repayment of a student loan while working summers at the amusement park?

    Borrowing to pay for an education has become something similar to the Wall Street roullete game or crap shoot. For some it pays off nicely, for most it keeps you out of the gutters. As the people who use to retire work longer or take those unskilled labor jobs as a supplement to retirement and as educated youth take up the few vacancies in meaningful employment and grab up many of the remaining unskilled labor jobs, what are the vast majority of the unemployed supposed to do? I think MMT has an answer and I don’t think anyone else does.

    • Richard

      I’ve employed people straight out of university who’ve managed to rack up substantial student debts. It’s a crazy situation. I think one of the problems is degrees and qualifications are so common place – at one time having a degree made you stand out whereas today not having one has the same effect. I sometimes wonder how many people are employed to do a job related to their field of study – I’d guess not many in the big scheme of things. Regarding MMT: I’m in agreement with you. I think MMT is at the heart of the answer and on that note I’m off to read your long post from earlier today.

      • http://overthepeak.com/wordpress/ Mystic

        I am struggling to ask this question so that you understand it right…………
        Why would an employer want to employ someone with a degree~?

        • Richard

          I’ve got two conflicting answers to this.

          In my case, I soon got sick of unskilled people telling me they were qualified to do the jobs I’ve been advertising – so I completely ignore the education part of people’s CVs and job applications – seriously. I just want to find out if candidates can actually do the job and I rule people out for not having any examples to demonstrate. The ironic part to my personal situation is I don’t have any qualifications – I’m a college dropout. Contrary to the statistics in your video, I’m the only person in any of my companies without a degree, yet I earn more than all the people I partner with or employ.

          However, in large companies, it has been my experience that the people doing the hiring aren’t so much focused on finding the right candidate for the job as finding the candidate with the right qualifications. It’s a responsibility thing – if the candidate turns out to be a basket case or completely useless, the person hiring can remove themselves from any responsibility by claiming the candidate was correct on paper. It’s a bit of an arse-covering exercise and very much part of the “slopy shoulders” mentality (where responsibility is passed down rather than up) found in large organisations in both the public and private sector. I have a bit of an insight in to this from a friend who works in HR for local government and my own experience working in the recruitment industry.

          I also have a poignant personal example of this in action. In the late 90′s I was called for what I thought was an interview for a technical IT job with Capital One – they were setting up shop in Nottingham in the former Boots headquarters. But when I got there, I found myself in a room with 40 graduates to sit a series of psychometric tests. It was soon obvious to me I was the least qualified and I was there because the agent at the recruitment firm I’d submitted my CV too had blagged me in. From what I could tell, most of these guys were fresh faced and straight out of university and had no experience of the job at all. Anyways, the next week I was the first one called back for a real interview, because I’d scored the best on the tests. But the interview didn’t go at all well – the first and only thing the chap (who was not in HR, but was going to be my direct boss in IT if I was hired) focused on was my qualifications. He couldn’t grock that I could actually understand the nature of the job I was applying for because I wasn’t qualified to do so – even when I answered technical questions he was posing to me. What dawned on me later, and has been confirmed by my experience in the recruitment industry, is that he was worried that I might be a direct liability to him and his career progression if I did or said the wrong thing on the job. He couldn’t deflect any responsibility for my actions by claiming he’d hired the best qualified candidates because I simply didn’t have the correct qualifications. The only reason I’d made it through to the real interviews – apart from performing well on the tests – was because the testing had been outsourced to a third-party company and they were focused purely on trying to find the cleverest / most adaptable candidates. When my CV landed on the desk of the chap from Capital One – along with the other candidates who scored well – I must have stood out like a sore thumb.

    • CSArichardo

      The US government guaranteed student loans. The US banking system caught on to the idea that loaning to students was therefore a secure loan! Universities and colleges realized they could raise tuitions because students could easlily get loans that were guaranteed by the government! Does that sound much different from the housing situation in the USA ? The US is more “quasi socialist” than we think … especially where there is profit to be made in socialist ventures like education, housing and the medical system !!

  • James

    Albania personal income tax rate for 2009 is a flat 10%.
    Albania Corporate Tax Rate : 10%
    Albania is Booming :
    http://www.huffingtonpost.com/sali-berisha/economic-downturn-not-in-_b_775676.html

    • CSArichardo

      Of course we live in a mobile world…feel free to move there ! I think it was Ronald Regan or maybe Jimmy Carter that questioned China’s human rights. As I understand it someone in the Chinese government relied …. is part of this freedom a right to mobility to find work. The reply was yes from us western people. The Chinese leader said well we have a million or so who would be happy to exercise those rights to mobility and move to the USA ! Get ready for it…it is not the number of war ships the Chinese are producing … it is the number of cruise ships. If they start coming over to North America at what point do we start sinking the cruise ships ? After the first 100,000, or a million or 10 million hit the beach with white flags ?

      • James

        This is how the economy recovers. Yes, ‘free’ to move, and taxed on the worldwide income…Questioned but exploit their cheap labor, becoming richer thanks to the mask of debt. Maybe one day, Americans will be asking the Chinese to ‘help’…Like the French people, who did not need the Americans, but when the Germans were here, we love you Americans !!
        http://www.youtube.com/watch?v=Tc78yPv_ztM

    • http://overthepeak.com/wordpress/ Mystic

      `Booming`……….from a very low base (Oh so ever so very so low).

  • helen kurz

    education be damned. in us only landed jobs (those that can’t be exported) will be viable.

    i don’ t care what your education level is – if that job can be outsourced to a market with a significantly lower wage structure it will.

    additionaly, these people obtaining these degrees are burdened with horrific debt.

    • http://overthepeak.com/wordpress/ Mystic

      So, if you were 15, what would you do~?

  • Garth
  • ivovanderrijt

    Does graph 1 represent the current business cycle?
    It goes up down up down.So we can expect in 2011 decline then and in 2012 recovery again.
    If it will go on like this it will be triple dipping quadrupel dipping etc etc.Who ever mentioned the double dip?

    • http://overthepeak.com/wordpress/ Mystic

      Yes, something like that.
      Every time it gets going, it will bump into an `energy price shock`, and down she’ll go again.