The Effects an Attack on Syria May Have on the US Debt in China and Russia. Matthew Hughes. mdh82. Department of Economics: The University of Akron

Size: px
Start display at page:

Download "The Effects an Attack on Syria May Have on the US Debt in China and Russia. Matthew Hughes. mdh82. Department of Economics: The University of Akron"

Transcription

1 Hughes 1 The Effects an Attack on Syria May Have on the US Debt in China and Russia Matthew Hughes mdh82 Department of Economics: The University of Akron Fall 2013 Abstract: This paper contains a short economic analysis about how the US economy could be affected by actions on our debt held by China and Russia brought on by anamerican attack on Syria. The information is based on the idea that the US attacks Syria, and that China and Russia are angered enough to fight back through an economic means. The focus will be on economic effects, rather than military, focusing on the damage that can be done by the two countries with the amount of US debt they hold (~ 25% of total foreign debt). If angered enough by US involvement in Syria, China and Russia could cause a large amount of destruction to the US debt and currency, hindering future US economic performance.

2 Hughes 2 In the post 'Great Recession' era, people in the United States should be asking more questions about the economy. In a way, more people should revert to the toddler stage of their lives and ask 'Why?'. Curiosity should play a bigger part in the life of an economist if they wish to gain interest and understand the workings of the economy. Given recent events in the Middle East, focusing on Syria, my interest was peaked thinking about our economy having to deal with any more military action. For this reason, I found myself asking what effect(s) attacking Syria would have on US debt held by foreign countries; specifically, I wanted to know how China and Russia would react. To find some answers, some research on the implications an attack on Syria would have with regard to the holdings of US debt by China and Russia, and how the US economy would be affected, is needed. Currently, President Obama is contemplating a plan of attack on Syria as punishment for the Syrian military s use of poison gas against civilians believed to support the rebels in the civil war that has been raging for more than two years and that has caused some 100,000 deaths and a flood of refugees. i The policing of other countries' affairs has been a recurring action taken by the US, from Hitler's persecution of the Jewish people to the Yugoslavian civil war in the 1940s to as recently as Saddam Hussein's actions in Iraq. While it may be viewed as something that needs to be done to protect the innocent people from being harmed by people within their own country, others are against the attack and claim we should 'keep our noses out of it'. However, President Obama is still pushing to get an attack approved. As noted by one economic blog, survey after survey has shown that the American people are overwhelmingly against an attack on Syria, people around the globe are overwhelmingly against an attack on Syria, and it looks like the U.S. Congress is even going to reject it. But Barack Obama is not backing down. ii It has been made clear that many opponents prefer focusing on domestic economic problems first, instead of prioritizing foreign conflicts ahead of them. Even with very low approval ratings, recently reported as below 30%, an attack is still on the table. Nevertheless, the possibility of an attack on Syria by the US has angered

3 Hughes 3 both the Chinese and Russian governments to the point that both have sent some warships to the region. How Russia and China Come into Play In response to US involvement in Syria, the Russian government has taken a stance against any Obama led attacks. It is known that Syria hosts Russia s only military facility outside the former Soviet Union, at the port of Tartus iii so getting any military personnel into the area wouldn't be difficult. However, the military issue isn't what the US should be most concerned about and won't be addressed further. What we should be concerned about is the $162.9 billion (as of January 2013) of US debt that Russia owns, adding up to approximately 1.4 percent of the total debt. iv While it may not seem like much in the big picture, the long term implications may prove costly to the US economy. In the past few years, the economic situation between the US and Russia has been very tense, especially during the debt-ceiling discussions in 2011 and 2012 which caused Prime Minister Putin to call the US a 'parasite'. Since then, the problem has been solved and Russia has increased its holdings of American debt by tens of billions of dollars to current levels. v As one looks at the figures, it doesn't seem that there would be much to be concerned about, being that Russia holds only a small portion of US debt. However, as it will be discussed in a later section, Russian economic action involving US debt due to our involvement in Syria could prove disastrous. Along with the Russian government being angered, the Chinese government has also threatened to act if the US does continue with its plan on Syria. As with Russia's case, we will be considering only the implications on the US economy concerning the amount of US debt that China holds. Being the world's second largest economy, China would make an obvious candidate at the top foreign holder of US debt. In fact, China held $1.26 trillion of US debt at the beginning of 2013, which makes up approximately 11 percent of our debt. vi The increase in debt held compared to Russia means that more effects could be felt if China decided to act in response to US action. As far as we can tell, there are definitely economic ramifications that most likely would follow

4 Hughes 4 if US involvement in Syria angers the Chinese and Russian governments further. Because of this, we should be aware of what could happen especially as it pertains to our problematic national debt. So What Could Happen? If both Russia and China are angered enough into acting, specifically with relation to the amount of US debt they hold, our economy will feel a huge shock. Both have already entered the military side of it, but the economic side would be even more dangerous. Because each of them hold a relatively large portion of the US debt, both have a fair amount of control over what happens with the debt money. As one writer explained, 'Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills?' What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own? If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria. vii As far as I can see, this is a very plausible fear to have. So how would the dumping of US debt work? In essence, the countries holding US debt in the forms of government bonds or other securities, would stop buying future US debt and would attempt to sell the debt that they already hold to any willing buyers. By taking this stance, China and Russia could inhibit the US government's ability to deal any debt and cause disastrous consequences in our economy. With the expected 4 trillion dollars to be borrowed in 2013viii, the loss of debt-buyers in China and Russia would cause shocks throughout the US bond market, which would most likely trickle throughout the economy. For starters, when we are unable to sell our debt to foreign countries or these countries begin to get rid of what they already hold, it becomes even more unattractive to other buyers. Becoming less attractive and more dangerous for other countries to hold, US debt will be tougher to deal with and cause increased costs to the US government if they wish to borrow any money from overseas. The increased costs may cause extra money to be raised via taxes, raising interest rates, or cuts of

5 Hughes 5 government programs to have more government funding available. In short, dumping our debt will cause the government to find other ways to raise money that could ripple through to the average citizen. In addition to our debt becoming more risky and less attractive, Michael Snyder writes that if China and other big foreign lenders quit buying our debt and started dumping what they already hold, that would send yields on U.S. Treasuries absolutely soaring. ix The higher yields on bonds will cause bond values to go down which could cause enormous losses to the bond holders. More people would be losing money on previously safe bonds, adding another problem to the mix. Bond markets would suffer and cause less incentive to but money into government bonds, which creates another hole in the flow of money into the government's hands. The increase in yields will also most likely increase interest rates in the US, which will cause an economic slowdown which could be even more dangerous to future economic recovery. Higher interest rates may deter investment, among other things, and cause people to be more wary of any choices they may make. Economic recovery will be stopped with the probable decrease in money flow, making the danger of this Syrian situation increase even more. Conclusion and Wrap Up Theoretically, if any US military involvement in Syria is enough to anger China and Russia so that they begin dumping the US debt they hold, then we would face enormous economic danger. There will be many consequences that would follow, in addition to the few that are briefly discussed above. Because of all the different economic implications that could follow from any action, the US government should reserve any ideas about invading Syria and acting as the 'World Police'. By dumping and/or refusing to purchase future US debt, China and Russia alone could cause some form of devastation that could ripple through the economy to many different sectors. As Snyder said it best, In a word, it would be disastrous. x

6 Hughes 6 i Posner, Richard. "When Should We Interfere in Another Country s Internal Affairs?" 'The Becker-Posner Blog' N.p., 8 Sept Web. 11 Sept ii Snyder, Michael. "Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?" The Economic Collapse. N.p., 06 Sept Web. 11 Sept iii Snyder, Collapse. iv Roos, Dave, Cristen Conger, and Jacob Clifton. "Top 10 Countries the U.S. Owes Money To." HowStuffWorks. N.p., n.d. Web. 11 Sept v Roos, Top 10. vi Roos, Top 10. vii Durden, Tyler. "Who Is Going To Buy The US Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?" Zero Hedge. N.p., 07 Sept Web. 11 Sept viii Snyder, Collapse. ix Snyder, Collapse. x Snyder, Collapse.

Option 1: Use the U.S. Military in Syria

Option 1: Use the U.S. Military in Syria 1 Option 1: Use the U.S. Military in Syria The Syrian Civil War has been raging for five years. Nearly four hundred thousand people have died and more than one million have been injured. More than half

More information

Option 1: Use the Might of the U.S. Military to End the Assad Regime

Option 1: Use the Might of the U.S. Military to End the Assad Regime 1 Option 1: Use the Might of the U.S. Military to End the Assad Regime The Syrian dictatorship s use of chemical weapons against its own people was terrible. But we must not let it overshadow the larger

More information

The Return of Saving

The Return of Saving Martin Feldstein the u.s. savings rate and the global economy The savings rate of American households has been declining for more than a decade and recently turned negative. This decrease has dramatically

More information

Don t Double Our Rates

Don t Double Our Rates Don t Double Our Rates An Issue Brief Congress should be helping to keep college affordable, not making it more expensive for student loan borrowers to pay for college Background Unless Congress acts decisively,

More information

The Refugee Crisis in Syria

The Refugee Crisis in Syria The Refugee Crisis in Syria Syria has become the most dangerous crisis for global peace and security since the Second World War. United Nations High Commissioner for Refugees, António Guterres The ongoing

More information

Feared God Plutus Strikes American Debt. Having a good economy is really important for a country because that determines

Feared God Plutus Strikes American Debt. Having a good economy is really important for a country because that determines Feared God Plutus Strikes American Debt Having a good economy is really important for a country because that determines whether you are wealthy or not. One of the main reasons for why a country develop

More information

The History of Crisis. Background Information: The Financial Crisis and Fair Value

The History of Crisis. Background Information: The Financial Crisis and Fair Value The History of Crisis What is going on? Privatisation of money supply Financialisation: commodification of money and debt (linked to accounting) Deregulated global flow of capital (but not labour) (linked

More information

HITTING THE DEBT CEILING: What does it mean? Talking points for webinar, presented by National Priorities Project, May 2011

HITTING THE DEBT CEILING: What does it mean? Talking points for webinar, presented by National Priorities Project, May 2011 HITTING THE DEBT CEILING: What does it mean? Talking points for webinar, presented by National Priorities Project, May 2011 Slide One: Hitting the Debt Ceiling: What does it mean and why should we care?

More information

Costs of Major U.S. Wars

Costs of Major U.S. Wars Stephen Daggett Specialist in Defense Policy and Budgets June 29, 2010 Congressional Research Service CRS Report for Congress Prepared for Members and Committees of Congress 7-5700 www.crs.gov RS22926

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common

More information

Large and Small Companies Exhibit Diverging Bankruptcy Trends

Large and Small Companies Exhibit Diverging Bankruptcy Trends JANUARY, 22 NUMBER 2-1 D I V I S I O N O F I N S U R A N C E Bank Trends Analysis of Emerging Risks In Banking WASHINGTON, D.C. ALAN DEATON (22) 898-738 adeaton@fdic.gov Large and Small Companies Exhibit

More information

Commentary: What Do Budget Deficits Do?

Commentary: What Do Budget Deficits Do? Commentary: What Do Budget Deficits Do? Allan H. Meltzer The title of Ball and Mankiw s paper asks: What Do Budget Deficits Do? One answer to that question is a restatement on the pure theory of debt-financed

More information

Obama Sets Plan for 'Leaner' Military

Obama Sets Plan for 'Leaner' Military VOA Special English (voaspecialenglish.com) is our daily news and information service for English learners. Read the story and then do the activities at the end. Obama Sets Plan for 'Leaner' Military Reuters

More information

The default rate leapt up because:

The default rate leapt up because: The financial crisis What led up to the crisis? Short-term interest rates were very low, starting as a policy by the federal reserve, and stayed low in 2000-2005 partly due to policy, partly to expanding

More information

Terrorism Finance in Turkey: A Growing Concern

Terrorism Finance in Turkey: A Growing Concern FOUNDATION FOR DEFENSE OF DEMOCRACIES Terrorism Finance in Turkey: A Growing Concern Jonathan Schanzer February 2014 Terrorism Finance in Turkey: A Growing Concern Jonathan Schanzer February 2014 FDD PRESS

More information

Constitutional legal regulation of monetary system

Constitutional legal regulation of monetary system Constitutional legal regulation of monetary system V. N. Nazarov, Associate professor of administrative and financial law of Plekhanov Russian University of Economics (Moscow) Analysis of constitutional

More information

Federal Reserve Monetary Policy

Federal Reserve Monetary Policy Federal Reserve Monetary Policy To prevent recession, earlier this decade the Federal Reserve s monetary policy pushed down the short-term interest rate to just 1%, the lowest level for many decades. Long-term

More information

UNITED NATIONS HUMAN RIGHTS COUNCIL

UNITED NATIONS HUMAN RIGHTS COUNCIL UNITED HUMAN RIGHTS COUNCIL The United Nations Human Rights Council was created in March, 2006 and is the successor to the United Nations Commission on Human Rights, which was often criticized for the

More information

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital Chapter 4 - Sample Questions 1. Quantitative easing is most closely akin to: A) discount lending. B) open-market operations. C) fractional-reserve banking. D) capital requirements. 2. Money market mutual

More information

A Case for Variable Rate Mortgages ( P. d. Last Fall's Policy Changes: A Sound Program for Reducing Inflation < P. 5) Winter 1979

A Case for Variable Rate Mortgages ( P. d. Last Fall's Policy Changes: A Sound Program for Reducing Inflation < P. 5) Winter 1979 Federal Reserve Bank of Minneapolis Q u a r t e r l y R e v i e w Winter 1979 A Case for Variable Rate Mortgages ( P. d Last Fall's Policy Changes: A Sound Program for Reducing Inflation < P. 5) District

More information

www.citizenshipteacher.co.uk 2011 16228 1

www.citizenshipteacher.co.uk 2011 16228 1 The stock market www.citizenshipteacher.co.uk 2011 16228 1 Lesson objectives I will understand what a stock market is. I will identify what caused the downturn in the American Stock Market. www.citizenshipteacher.co.uk

More information

Q&A for Small Business Owners

Q&A for Small Business Owners Q&A for Small Business Owners What did the Obama Administration announce today? The Treasury Department will commit up to $15 billion to help unlock the secondary markets for small business loans. By purchasing

More information

The Saturday Economist

The Saturday Economist Special Feature - Who bought all the gits? According to the latest figures from the Debt Management Office (Q2 2011), the total market value of central government liabilities was 1.1 trillion of which

More information

The President Can Worry About Syria

The President Can Worry About Syria Page 1 of 5 The President Can Worry About Syria September 2013 Market The Syrian Civil War and whether or not the U.S. is going to become involved has been a major headline for weeks now. On the off chance

More information

Surviving the Era of Hack Attacks Cyber Security on a Global Scale

Surviving the Era of Hack Attacks Cyber Security on a Global Scale Surviving the Era of Hack Attacks Cyber Security on a Global Scale Dr. Adriana Sanford ASU Lincoln Professor of Global Corporate Compliance and Ethics Clinical Associate Professor of Law and Ethics This

More information

For countries to trade goods and services, they must also trade their currencies.

For countries to trade goods and services, they must also trade their currencies. How is Global Trade Financed? (HA) For countries to trade goods and services, they must also trade their currencies. If you have ever visited a foreign country, such as Mexico, you know that you must exchange

More information

TOP 10 WAYS THE OBAMA BUDGET DISPLACES PRIVATE ENTREPRENEURSHIP

TOP 10 WAYS THE OBAMA BUDGET DISPLACES PRIVATE ENTREPRENEURSHIP TOP 10 WAYS THE OBAMA BUDGET DISPLACES PRIVATE ENTREPRENEURSHIP By: Joseph Onorati The President s 2010 budget proposal increases taxes and spending by magnitudes only matched previous to this year by

More information

BARACK OBAMA S COMPREHENSIVE TAX PLAN

BARACK OBAMA S COMPREHENSIVE TAX PLAN BARACK OBAMA S COMPREHENSIVE TAX PLAN Barack Obama s tax plan delivers broad-based tax relief to middle class families and cuts taxes for small businesses and companies that create jobs in America, while

More information

National Public Radio

National Public Radio National Public Radio GREENBERG QUINLAN ROSNER RESEARCH INC Methodology The reported results on public attitudes come from a national survey conducted by Greenberg Quinlan Rosner Research (GQR) and Public

More information

Making Home Affordable Updated Detailed Program Description

Making Home Affordable Updated Detailed Program Description Making Home Affordable Updated Detailed Program Description The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout

More information

LEGAL AND ILLEGAL MONEY TRANSFERS AS RUSSIAN FOREIGN POLICY INSTRUMENTS

LEGAL AND ILLEGAL MONEY TRANSFERS AS RUSSIAN FOREIGN POLICY INSTRUMENTS LEGAL AND ILLEGAL MONEY TRANSFERS AS RUSSIAN FOREIGN POLICY INSTRUMENTS FATIH OZBAY SENIOR FELLOW, CENTER ON FOREIGN POLICY AND SECURITY, HASEN FATIH OZBAY 128 Migrants who are mostly coming from former

More information

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 VP: Miraj Rahematpura Associate: John Cherian Analysts: Reinier Eenkema van Dijk, Michael Limandibhratha, Ian Naccarella, David

More information

11/6/2013. Chapter 16: Government Debt. The U.S. experience in recent years. The troubling long-term fiscal outlook

11/6/2013. Chapter 16: Government Debt. The U.S. experience in recent years. The troubling long-term fiscal outlook Chapter 1: Government Debt Indebtedness of the world s governments Country Gov Debt (% of GDP) Country Gov Debt (% of GDP) Japan 17 U.K. 9 Italy 11 Netherlands Greece 11 Norway Belgium 9 Sweden U.S.A.

More information

JAPAN AND THE ATOM BOMB: TASK INSTRUCTIONS

JAPAN AND THE ATOM BOMB: TASK INSTRUCTIONS JAPAN AND THE ATOM BOMB: TASK INSTRUCTIONS The key question: Was Hiroshima the biggest event of World War 2? Your task: You must argue the case that dropping of the A-bomb on Hiroshima in August 1945 was

More information

Do Tax Cuts Boost the Economy?

Do Tax Cuts Boost the Economy? Do Tax Cuts Boost the Economy? David Rosnick and Dean Baker September 2011 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202-293-5380 www.cepr.net

More information

Bodie, Kane, Marcus, Perrakis and Ryan, Chapter 2

Bodie, Kane, Marcus, Perrakis and Ryan, Chapter 2 Bodie, Kane, Marcus, Perrakis and Ryan, Chapter 2 Answers to Selected Problems 1. The following multiple-choice problems are based on questions that have appeared in past CFA examinations. a A firm s preferred

More information

STATEMENT BY SEN. BERNARD SANDERS ON SOCIAL SECURITY

STATEMENT BY SEN. BERNARD SANDERS ON SOCIAL SECURITY STATEMENT BY SEN. BERNARD SANDERS ON SOCIAL SECURITY Sometimes we all tend to take things for granted and we forget that Social Security is the most successful government program in our nation's history.

More information

Economic Factors Affecting Small Business Lending and Loan Guarantees

Economic Factors Affecting Small Business Lending and Loan Guarantees Order Code RL34400 Economic Factors Affecting Small Business Lending and Loan Guarantees February 28, 2008 N. Eric Weiss Analyst in Financial Economics Government & Finance Division Economic Factors Affecting

More information

18th Year of Publication. A monthly publication from South Indian Bank. www.sib.co.in

18th Year of Publication. A monthly publication from South Indian Bank. www.sib.co.in To kindle interest in economic affairs... To empower the student community... Open YAccess www.sib.co.in ho2099@sib.co.in A monthly publication from South Indian Bank 18th Year of Publication SIB STUDENTS

More information

The Impact of Gold Trading

The Impact of Gold Trading The Impact of Gold Trading By: Dan Edward, Market Analyst: FOREXYARD Date: December 2010 In this Issue: I. Introduction A brief history of gold trading II. What affects commodity prices? III. The Global

More information

CHAPTER 20 INTERNATIONAL TRADE FINANCE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS

CHAPTER 20 INTERNATIONAL TRADE FINANCE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS CHAPTER 20 INTERNATIONAL TRADE FINANCE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Discuss some of the reasons why international trade is more difficult and risky

More information

Support Under the Homeowner Affordability and Stability Plan: Three Cases

Support Under the Homeowner Affordability and Stability Plan: Three Cases Support Under the Homeowner Affordability and Stability Plan: Three Cases Family A: Access to Refinancing In 2006: Family A took a 30-year fixed rate mortgage of $207,000 on a house worth $260,000 at the

More information

Investing in infrastructure?

Investing in infrastructure? Investing in infrastructure? Independent guide for investors about infrastructure investments This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

q1 Do you approve or disapprove of the way George W. Bush is handling his job as President?

q1 Do you approve or disapprove of the way George W. Bush is handling his job as President? CBS NEWS POLL The President, Terrorism And Iraq October 20-21, 2003 q1 Do you approve or disapprove of the way George W. Bush is handling his job as President? Total Rep Dem Ind Sep03b Approve 54 87 26

More information

David M. Woodruff Too much of a good thing? High oil prices and Russian monetary policy

David M. Woodruff Too much of a good thing? High oil prices and Russian monetary policy David M. Too much of a good thing? High oil prices and Russian monetary policy Policy Memo Original citation:, David M. (2000) Too much of a good thing? High oil prices and Russian monetary policy. PONARS

More information

Unit 6. The Cold War ( )

Unit 6. The Cold War ( ) Unit 6. The Cold War (1945-1991) Learning Target 23 Summarize how atomic weapons have changed the nature of war, altered the balance of power and started the nuclear age. Following World War II, the United

More information

Articles distributed in each month (Sum:450) China Daily

Articles distributed in each month (Sum:450) China Daily Media Analysis Articles distributed in each month (Sum:450) China Daily 201005 201003 201001 200911 200909 200907 200905 200903 200901 200811 200809 0 20 40 60 250 200 150 100 50 0 journalist academic

More information

Apple Capital Group, Inc.

Apple Capital Group, Inc. COMMERCIAL FINANCE Commercial finance typical revolves around what are considered the assets of your business and are often called "asset based loans". The assets of your business are things such as your

More information

Short Selling Tutorial

Short Selling Tutorial Short Selling Tutorial http://www.investopedia.com/university/shortselling/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/investopedia/contact.asp

More information

Foreign Affairs and National Security

Foreign Affairs and National Security Foreign Affairs and National Security Objectives: TLW understand and explain the following questions as it relates to the Foreign affairs of the American Government What is foreign policy? What is the

More information

THIS FREE CONTENT WAS PROVIDED TO YOU BY BPP ACCA EXAM SURGERY

THIS FREE CONTENT WAS PROVIDED TO YOU BY BPP ACCA EXAM SURGERY THIS FREE CONTENT WAS PROVIDED TO YOU BY BPP ACCA EXAM SURGERY FOR MORE INFORMATION, GO TO BPP.COM/ACCA FOLLOW US ON: FACEBOOK TWITTER LINKEDIN PAST EXAM QUESTION AND ANSWER F9 Answer - 11 PKA Co Text

More information

Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget

Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget SUMMARY The Congressional Budget Office s (CBO) Preliminary Analysis of the President s FY 2012 Budget released

More information

The Key to Stabilizing House Prices: Bring Them Down

The Key to Stabilizing House Prices: Bring Them Down The Key to Stabilizing House Prices: Bring Them Down Dean Baker December 2008 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202-293-5380 www.cepr.net

More information

Presidential Decree Law No. 01/P, March 17, 2008

Presidential Decree Law No. 01/P, March 17, 2008 Contents Section I... General Provisions... Section II... Foreign Exchange Trading... Section III... Opening and using of bank deposit accounts in foreign currency by a resident and a nonresident of the

More information

The World War I Era ( )

The World War I Era ( ) America: Pathways to the Present Chapter 19 The World War I Era (1914 1920) Copyright 2005 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, New Jersey. All rights reserved.

More information

PERFORMANCE UPDATE ASSET CLASS REVIEW THE STOCK MARKET WORLD CUP WINNER SEPTEMBER BLUES WHAT RISK ARE YOU TAKING WITH YOUR MONEY?

PERFORMANCE UPDATE ASSET CLASS REVIEW THE STOCK MARKET WORLD CUP WINNER SEPTEMBER BLUES WHAT RISK ARE YOU TAKING WITH YOUR MONEY? PERFORMANCE UPDATE ASSET CLASS REVIEW THE STOCK MARKET WORLD CUP WINNER SEPTEMBER BLUES WHAT RISK ARE YOU TAKING WITH YOUR MONEY? FINAL COMMENT PERFORMANCE UPDATE Stock market performance in July was generally

More information

SOCIAL STUDIES TEST for e-lessons day 2

SOCIAL STUDIES TEST for e-lessons day 2 SOCIAL STUDIES TEST for e-lessons day 2 Name Directions: Use your own piece of paper as your answer document. Do not print off the test. You will need to only turn in your answer document. 29. The Cold

More information

Assessment: The Civil War

Assessment: The Civil War Name Date Mastering the Content Circle the letter next to the best answer. Assessment: The Civil War 1. Which of these was a Northern advantage at the start of the Civil War? A. highly trained soldiers

More information

Costs of Major U.S. Wars

Costs of Major U.S. Wars Order Code RS22926 July 24, 2008 Costs of Major U.S. Wars Stephen Daggett Specialist in Defense Policy and Budgets Foreign Affairs, Defense, and Trade Division Summary This CRS report provides estimates

More information

Preventing further overpopulation in developing nations while dealing with its already existing effects

Preventing further overpopulation in developing nations while dealing with its already existing effects Committee: Issue: Student Officer: ECOSOC Preventing further overpopulation in developing nations while dealing with its already existing effects Farida Soliman (ECOSOC Chair) I- Introduction The current

More information

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS Introduction Bryan Taylor The recent devaluations in Asia have drawn attention to the risk investors face

More information

Global risks in Mike Jakeman, Global Analyst The Economist Intelligence Unit 28 January 2016

Global risks in Mike Jakeman, Global Analyst The Economist Intelligence Unit 28 January 2016 Global risks in 2016 Mike Jakeman, Global Analyst The Economist Intelligence Unit 28 January 2016 How to we define a risk? A threat to global economic growth or progress, of varying probability and impact,

More information

US Sovereign Debt - Truth and Consequences

US Sovereign Debt - Truth and Consequences US Sovereign Debt - Truth and Consequences The rapid increase in US Federal debt over the last few years has recently moved the US from its once stellar position of a AAA to AA+ as S&P changed its rating

More information

Interest Rates, the Fed and the Bond Market Eric Jacquier

Interest Rates, the Fed and the Bond Market Eric Jacquier Interest Rates, the Fed and the Bond Market Eric Jacquier Interest rates have been very low for a few years. Since last year, there has been speculation of when the Federal Reserve will raise interest

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Best Essay from a First Year Student

Best Essay from a First Year Student RBA ECONOMICS COMPETITION 2010 Appreciation of Australia s real exchange rate: causes and effects Best Essay from a First Year Student ASHVINI RAVIMOHAN The University of New South Wales Appreciation of

More information

Pre- and Post-Test for The Great Depression Curriculum Answer Key

Pre- and Post-Test for The Great Depression Curriculum Answer Key Pre- and Post-Test for The Great Depression Curriculum Answer Key 1. Deflation occurs when: a. there is a sustained increase in the price of gasoline. b. there is a sustained decrease in the price of gasoline.

More information

President Richard Nixon: New Federalism and Realpolitik

President Richard Nixon: New Federalism and Realpolitik President Richard Nixon: New Federalism and Realpolitik E. America Enters World War II (1945- Present) h. Describe and evaluate the political and social impact of the Vietnam War 2.Changes at Home c. Identify

More information

http://angel.bfwpub.com/section/content/default.asp?wci=pgt...

http://angel.bfwpub.com/section/content/default.asp?wci=pgt... Hmwk 14 1. Let's find out what counts as money. In this chapter, we used a typical definition of money: A widely accepted means of payment. Under this definition, which people are using money in the following

More information

Origins of the Cold War. A Chilly Power Point Presentation Brought to You by Ms. Shen

Origins of the Cold War. A Chilly Power Point Presentation Brought to You by Ms. Shen Origins of the Cold War A Chilly Power Point Presentation Brought to You by Ms. Shen What was the Cold War? The Cold War was a 40+ year long conflict between the U.S. and the Soviet Union that started

More information

Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance.

Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance. Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance. Learning objectives: understanding that some money choices are risky evaluating the

More information

The Business Cycle and The Great Depression of the 1930 s

The Business Cycle and The Great Depression of the 1930 s The Business Cycle and The Great Depression of the 1930 s With the stock market crash in October, 1929, the U.S. entered a period in its history known as the Great Depression. This lasted for almost the

More information

Fiscal Policy: Structural/Cyclical. Size of government Questions And Business Cycle Smoothing Issues

Fiscal Policy: Structural/Cyclical. Size of government Questions And Business Cycle Smoothing Issues Fiscal Policy: Structural/Cyclical Size of government Questions And Business Cycle Smoothing Issues When is government a preferred provider of goods? What is a PURE PUBLIC GOOD? My consumption of the good

More information

What is the Relationship Between the Exchange Rate and Oil Prices?

What is the Relationship Between the Exchange Rate and Oil Prices? daleorr@economicinsight.ca May 2009 What is the Relationship Between the Exchange Rate and Oil Prices? As we move into economic recovery over the next several years the economic performance of both Canada

More information

Public Debt: Private Asset

Public Debt: Private Asset Public Debt: Private Asset Government Debt and Its Role in the Economy Is government borrowing always bad? Are savings bonds debt or assets? How are interest rates established on U. S. debt? What types

More information

Americans Budget Priorities

Americans Budget Priorities HART RESEARCH A S S O C I A T E S Americans Budget Priorities Nationwide Survey Among 1,009 2012 Voters Conducted October 25-30, 2013; M.O.E. +/-3.1% for Overview of Findings A debate framed in terms of

More information

The Solution is the Problem

The Solution is the Problem 11 LP May/June 2009 Special Issue The Solution is the Problem MARKETS AT A GLANCE Eric Sprott David Franklin The US government raised $705 billion worth of new debt in 2008. The debt was raised to pay

More information

Copyright Brodie Millar (http://www.teacherspayteachers.com/store/brodie-millar)

Copyright Brodie Millar (http://www.teacherspayteachers.com/store/brodie-millar) Social Studies Name: Espionage, or spying, is when one secretly gathers information about a foreign government or a competing business / company, with the purpose of placing one's own government or business

More information

extend certain foreclosure protections afforded under the Servicemember Civil Relief Act to servicemembers serving in harm s way.

extend certain foreclosure protections afforded under the Servicemember Civil Relief Act to servicemembers serving in harm s way. FACT SHEET: President Obama Announces New Steps to Provide Housing Relief to Veterans and Servicemembers and Help More Responsible Homeowners Refinance In his State of the Union address, President Obama

More information

The Aged care Review by the Productivity Commission raises a number of issues which require a response.

The Aged care Review by the Productivity Commission raises a number of issues which require a response. Submission to: Aged Care Review By Margaret Kearney Aged Care Review Cremorne 2090 NSW The Aged care Review by the Productivity Commission raises a number of issues which require a response. The following

More information

MACROECONOMICS. Government Debt MANKIW N. GREGORY. PowerPoint Slides by Ron Cronovich C H A P T E R SIXTH EDITION

MACROECONOMICS. Government Debt MANKIW N. GREGORY. PowerPoint Slides by Ron Cronovich C H A P T E R SIXTH EDITION C H A P T E R 15 Government Debt MACROECONOMICS N. GREGORY MANKIW 2008 Worth Publishers, all rights reserved SIXTH EDITION PowerPoint Slides by Ron Cronovich In this chapter, you will learn about the size

More information

Investing In A Low-Return World

Investing In A Low-Return World morgan stanley financials oaktree conference conference june 10, 2012 2014 distressed opportunities Investing In A Low-Return World Howard Marks, Chairman Oaktree Capital Management The Investment Environment:

More information

The U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty.

The U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty. Presentation to the University of Washington Business School For delivery November 15, 2001 at approximately 8:05 AM Pacific Standard Time (11:05 AM Eastern) By Robert T. Parry, President and CEO of the

More information

Debt and Deficits. David Rosen

Debt and Deficits. David Rosen Debt and Deficits David Rosen Grade Levels: 9,10,11,12 Document Type: Supplementary Materials Description: Examines the national debt and deficits, looks at their size and impact, and discusses various

More information

Problem Set #1 - Answers International Transactions And Exchange Rates

Problem Set #1 - Answers International Transactions And Exchange Rates Page 1 of 7 Problem Set #1 - Answers International Transactions And Exchange Rates 1. On page 2 is the structure of the balance of payments accounts for a country, Wonkland, whose currency is the policio,

More information

The Road to Good. How to Start Building Your credit with In-House Auto Financing

The Road to Good. How to Start Building Your credit with In-House Auto Financing The Road to Good Credit: How to Start Building Your credit with In-House Auto Financing I. Introduction II. What is a credit score? III. How credit scores are calculated Payment history Amount of debt

More information

The 2003 ISDA Credit Derivatives Definitions

The 2003 ISDA Credit Derivatives Definitions The 2003 ISDA Credit Derivatives Definitions Edmund Parker, Mayer Brown www.practicallaw.com/0-380-8160 This note provides an overview of the 2003 ISDA Credit Derivatives Definitions (the 2003 Definitions).

More information

How to Stop and Avoid Foreclosure in Today's Market

How to Stop and Avoid Foreclosure in Today's Market Solutions Home Buyers, Inc. 800-478-9213 ext. 700 SolutionsHomeBuyersFL.com How to Stop and Avoid Foreclosure in Today's Market This Guide Aims To Help You Navigate the foreclosure process [Type the company

More information

Reverse Mortgages. The pit-falls and how to avoid them. Dangerous to your health?

Reverse Mortgages. The pit-falls and how to avoid them. Dangerous to your health? Every Mortgage Payment Added to Your Equity YOUR HOME IS A GIANT PIGGY BANK Reverse Mortgages Dangerous to your health? The pit-falls and how to avoid them Bob Adams, Director InvestEd Inc. Associate Director,

More information

The Plight of Christians in the Middle East. Supporting Religious Freedom, Pluralism, and Tolerance During a Time of Turmoil

The Plight of Christians in the Middle East. Supporting Religious Freedom, Pluralism, and Tolerance During a Time of Turmoil AP PHOTO/HUSSEIN MALLA The Plight of Christians in the Middle East Supporting Religious Freedom, Pluralism, and Tolerance During a Time of Turmoil By Brian Katulis, Rudy deleon, and John Craig March 2015

More information

A Beginner s Guide to the Stock Market

A Beginner s Guide to the Stock Market A beginner s guide to the stock market 1 A Beginner s Guide to the Stock Market An organized market in which stocks or bonds are bought and sold is called a securities market. Securities markets that deal

More information

GOP College Loan Interest Plan Would Hurt Ohio Gutting Illness Prevention Fund Would Cost Ohio Millions And Be Especially Hard on Women and Children

GOP College Loan Interest Plan Would Hurt Ohio Gutting Illness Prevention Fund Would Cost Ohio Millions And Be Especially Hard on Women and Children GOP College Loan Interest Plan Would Hurt Ohio Gutting Illness Prevention Fund Would Cost Ohio Millions And Be Especially Hard on Women and Children Executive Summary Unless Congress acts, interest rates

More information

René Garcia Professor of finance

René Garcia Professor of finance Liquidity Risk: What is it? How to Measure it? René Garcia Professor of finance EDHEC Business School, CIRANO Cirano, Montreal, January 7, 2009 The financial and economic environment We are living through

More information

Energy Prices. Presented by: John Heffernan

Energy Prices. Presented by: John Heffernan Global Wholesale Energy Prices Presented by: John Heffernan Energy in 2012 In 2012, the growth in Energy consumption slowed in 2012 90% of this growth came from China & India Consumption & production of

More information

Refinancing Student Loans 101

Refinancing Student Loans 101 Student Debt Refinancing Student Loans 101 Everything you need to know about how Congress could help millions of American borrowers, boost the economy, and tackle our student debt crisis. Sarah Audelo

More information

Tax credits: The current picture

Tax credits: The current picture CAB survey findings Advice Week briefing September 2007 Tax credits: The current picture Introduction Tax credits form a vital component of the Government s strategy for tackling child poverty and making

More information

An Environmental Perspective on International Greenhouse Gas Emission Trading

An Environmental Perspective on International Greenhouse Gas Emission Trading An Environmental Perspective on International Greenhouse Gas Emission Trading Speaking Notes for Chris Rolfe West Coast Environmental Law Association Speaking Notes for a Presentation to After Kyoto --

More information

story: I have no problem lending money to family & friends as long as I can afford it.

story: I have no problem lending money to family & friends as long as I can afford it. name: Emily state: Texas story: My husband has borrowed money from his parents many different times without my knowing. I think that if you expect repayment, a written loan agreement or share secured loan

More information

Money Supply. Key point: if banks hold 100% reserves (i.e., make no loans), they do not change the money supply. 1. Who affects the money supply?

Money Supply. Key point: if banks hold 100% reserves (i.e., make no loans), they do not change the money supply. 1. Who affects the money supply? Money Supply 1. Who affects the money supply? 2. 100% reserve banking 3. Fractional reserve banking 4. Money Supply determination and the money multiplier 5. What causes money supply to change? 6. Instruments

More information

Military Transactions

Military Transactions 8 Military Transactions In this section: Coverage and definitions Estimation methods overview U.S. receipts Transfers under U.S. military agency sales contracts U.S. payments Direct defense expenditures

More information