This national debt has continued to increase an average $3.92 billion per day since September 28, 2007. Based off of the assigned video, plethora amounts of people dislike big governments because of taxes; this includes income tax, Medicare, tariffs and international trades. The government has two types of spending, Mandatory and Discretionary spending. Mandatory spending goes towards entitlement programs, social security and interest payments the government has to make. Discretionary spending is at the discretion of the Congress, where the money can be divided up into however they want.
The income statement’s total revenues doubled in two years due to their unusual growth. The problem to behind income statement and balance sheets stems from their company owned and franchised factories; instead of selling the donuts, the company sold machinery to make their products. The goodwill and required franchise rights doubled each year until 2004 which raised questions and concerns as to whether Krispy Kreme improperly implemented accounting treatments. Compared to the industry, Krispy Kreme was apparently a very high performing company, but we questioned the performance data. First problem we encountered were the current and quick ratios were unusually high due to the amount of cash, receivables and short term investments that Krispy Kreme held.
Bitcoin has grown throughout the years extensively at such fast growing pace that some countries have banned the use of Bitcoin. I mean who can blame them, who wouldn’t be a little scared of a currency that has appreciated in the range of 2-400 percent per annum. With that being said, the dollar is slowly dying with time so yes, eventually it will have to be replaced but it’s more likely to be replaced with euros than a currency created online overnight. Bitcoin could have the potential to be like a PayPal 2.0 but it will never be the dollar 2.0. Not when prices would have to fall over 90 percent if they’ve been set in terms of Bitcoin.
The other reason was adjustable mortgage rates. Adjustable mortgages allowed banks to increase the monthly balance, when monthly payments were not large enough to cover principal and interest, which made loan takers to pay more payment that what they were not accepting. This caused owners to owe more on their loans than its market value with an inability to refinance. Lehman Brother’s was also in Commercial paper lending market and they were one of the largest commercial paper lending institutions in the world. Commercial paper lending market is short-term debt that big businesses and financial institutions sell primarily to money market fund managers and other institutional investors.
Despite a terrible current account deficit (USD800), the USD is heading towards a 140 JPY/USD level. There are 2 main reasons to explain the USD level in 2005. The first one is that thanks to a rising interest rates policy led by the FED (4.75%), the USD rose. Indeed high interest rates attracted Foreign Direct Investments (FDI), for example when the oil price increase a lot of oil exporting countries received a surplus in dollars and invested this surplus in US treasury bonds, and it helped to keep a strong USD. In the same time, the bank of Japan (BoJ) kept its interest rate close to zero.
The direct influence was that Argentina’s exchange rate and monetary policies were determined by the United States. And the U.S. Federal Reserve determined Argentina’s interest rates as well. When world commodity prices declined, the U.S. dollar, and hence the Argentine peso, strengthened against other currencies. Concurrently, Argentina’s main trading partner, Brazil, devalued its currency. As deflation started, both the Argentine government and many private companies found it was difficult to pay their debts.
I very rarely do things at the spur of the moment due to money. Here in America to relate to the time is money metaphor we have a national debt clock that shows how every second our national debit goes up. Our outstanding public debt as of February 11,2013at 02:14.27am GMT is $16,499,693,671,769.62. The estimated population of the US is 314,401,188 so each citizen’s share of the debt
Many may argue that the falling economy and the wealthy not wanting to share their shares is to blame for the raising rates of poverty here in the states. Poverty of course, has a lot to do with money and income but underneath that it is has a deeper story. Stories of how different people are suffering from it and how they are managing to live day by day. It almost seems as if it’s a foreign nation of its own and you only understand the concepts if you are in it. There is no doubt that here in America we are dealing with one of the greatest economic downfalls.
In 1914 the exchange rate of the dollar to the pound was $1 to 1mark, by 1923 the exchange rate was $1 to 1trillion marks. This is an astronomical rate of inflation.As you can see from the graph the rate of inflation rocketed upwards in around 1923. It affected everyone in society. The rich bought expensive material good while they could so their price didn't change. For me there are several causes of this failure.
Prison Overcrowding America's prison population has more than quadrupled since 1980. A special report released by the Public Safety Performance Project of the Pew Charitable Trusts in 2007 predicts that the nation's prison population will rise to more than 1.72 million by 2011(According to“Public Safety, Public Spending” (2008), The Pew Charitable Trusts). From a comparative perspective, the number of people behind bars in the United States is striking. An even more recent report from Pew notes "the United States incarcerates more people than any country in the world, including the far more populous nation of China." Even though many new prisons have been built throughout the nation during the past 20 years to accommodate the growing number of inmates, prison overcrowding is still very much a reality in many jurisdictions.