RioVida Networks News You can Use and Trends You Want to Watch

RioVida Networks news you can use and trends you want to watch

$200 Billion Dollars allocated by Feds to stabilize the US economy.

In March 2008 the Fed said it would lend $200 billion worth of Treasuries to a wide range of banks for 28 days in return for debt, including triple-A-rated mortgage bonds. This will allow banks to get rid of the illiquid securities that are dragging down their balance sheets in exchange for very liquid Treasuries that can be traded in for cash. On Friday, it raised the TAF to $100 billion from $60 billion.

In December, the Fed was offering just $20 billion through the TAF. Also on Friday, the Fed announced a new type of repurchasing program, whereby it will lend banks $100 billion for 28 days at attractive rates in exchange for a broad range of collateral, including riskier mortgage securities.

"A different perspective about world influence."

Will the world move on without the US? Why would that happen and what does it mean?

Parag Khanna is a senior research fellow in the American Strategy Program of the New America Foundation. This essay is adapted from his book, “The Second World: Empires and Influence in the New Global Order,” to be published by Random House in March.

We are competing — and losing — in a geopolitical marketplace alongside the world’s other superpowers: the European Union and China. This is geopolitics in the 21st century: the new Big Three. Not Russia, an increasingly depopulated expanse run by Gazprom.gov; not an incoherent Islam embroiled in internal wars; and not India, lagging decades behind China in both development and strategic appetite. The Big Three make the rules — their own rules — without any one of them dominating. And the others are left to choose their suitors in this post-American world.

The more we appreciate the differences among the American, European and Chinese worldviews, the more we will see the planetary stakes of the new global game. Previous eras of balance of power have been among European powers sharing a common culture. The cold war, too, was not truly an “East-West” struggle; it remained essentially a contest over Europe. What we have today, for the first time in history, is a global, multicivilizational, multipolar battle. MORE

New America's Next Social Contract is designed to restore the balanced between workers, employers, and government that gives individuals the security they need to navigate a dynamic economy.

New America's Next Social Contract Initiative aims to make this vision a reality. Americans face a profound opportunity to seize the reins of our politics and restore balance to the social contract. New America has already outlined vital first steps -- both conceptually and on the cornerstone issue of health care -- for that long and difficult process.

Our February 29th event discussed the contours of the next era of American politics. With the prospect of a coming political sea change, the role of institutions, the boundaries of evolving coalitions, and the expanding frontiers for policy innovation remain uncertain. Mark Schmitt, David Frum, Jonathan Chait, and many other participants will offer their perspectives on these difficult questions.

The event also marked the release of two new new papers. "The American Public and the Next Social Contract: Public Opinion and Political Culture in 2007," by Professor Cliff Zukin of Rutgers University, explores the state of public opinion in America. Zukin examines enduring American values and current attitudes on pressing policy challenges. In "What Does 'Post-Partisan' Mean?", Phil Longman attempts to unravel the threads leading up to the current political moment.

"Banking and Interest Rates in Monetary Policy Analysis: A Quantitative Exploration“
by Marvin Goodfriend and Bennett McCallum (Carnegie Mellon)

This paper which is to apprear in the Journal of Monetary Economics, the authors try to rectify a glaring omission in standard macro models: they do not have a banking sector and there is only one interest rate, making them woefully inadequate to analyse situations of financial distress. The authors introduce banks as producers of credit. The cost of production drives the interbank rate, which is the target rate of most central banks, below the interest rate that borrowers have to pay. Over the business cycle, or due to shocks, the demand for credit and the production cost of credit vary in ways, which standard models cannot grasp. One important channel is the value of collateral, which enters the model as a resource making credit production cheaper.

With this paper the two authors calibrate Goodfriend's model with US data to provide information on the quantitative importance of these issues. The result indicates that single-interest-rate-models can be very flawed guides to monetary policy. Of particular interest is a policy experiment in which the authors assume a one percent decline in collateral to capture the consequences of financial distress. MORE

Mr. Jinichi Uemura
Director, Macroeconomic Analysis Group
Development Studies Center
Institute of Developing Economies
3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba-ken 261-8545

Written for the Japan External Trade Organization (Jetro)

Released: 12/ 2007

The purpose of this white paper is to provide an economic outlook that aims to faithfully reflect both theory and reality, by using a “macro-econometric model” – a method of analysis that maintains consistency with both economic and statistical theory – as well as links with IDE country specialists, who observe the current affairs of the economies they focus on, and also overseas local research institutes in the economies surveyed.

External Conditions

(1) The sub-prime mortgage financial crisis is likely to head toward resolution in the latter half of 2008, and its effect on the real economy of the U.S. is expected to be limited. In 2008, the economies of the U.S., Japan and Europe will slow.

(2) Due to the uncertainty in the financial market, investment funds are flowing into the commodities markets. In the latter half of 2008, these funds are forecast to return to the financial market, and the price of crude oil for 2008 as a whole to hover at approximately 80 dollars per barrel.

(3) Asian currencies are appreciating following the movement away from the dollar. It is assumed that this trend will continue in 2008.

(4) There will be little room for a continued fall in the price of IT-related products, which decreased in 2007.

Projections by Country and Regions

China........................................................................................................................... 28
The Economy in 2007: Above-11% Growth, Fueled by Accelerated Investment Forecast for the Economy in 2008: Growth Will Slow to 10.6% under the Effect of Weakening Export Growth

South Korea................................................................................................................. 31
The Economy in 2007: Firmer Domestic Demand, Underpinning Solid Growth
Forecast for the Economy in 2008: 5.0% Growth, Underpinned by an Increased Contribution of Domestic Demand

Taiwan.................................................................................................................... 34
The Economy in 2007: 5.4 % Growth, Sustained by Solid Domestic Demand
Forecast for the Economy in 2008: 4.4% Growth, as External Demand Grows at a Slower Rate, Despite Steady Domestic Demand

Hong Kong .................................................................................................................. 36
The Economy in 2007: 6.0% Growth, Supported by a
Steady Increase in Domestic Demand Forecast for the Economy in 2008: 5.3% Growth, Reflecting Moderate
Growth of Consumption Demand and Slowing Growth of External Demand

Singapore..................................................................................................................... 38
The Economy in 2007: 7.9% Growth, Led by Brisk Private Demand
Forecast for the Economy in 2008: Solid Growth of 6.6%

Indonesia ......................................................................................................................40
The Economy in 2007: Higher Growth of 6.2%
Based on a Recovery of Domestic Demand and Strong External Demand
Forecast for the Economy in 2008: 6.4% Growth,
Stimulated by Expanding Investment

Thailand....................................................................................................................... 43
The Economy in 2007: 4.6% Growth, Led by Vigorous Exports
Forecast for the Economy in 2008: 5.0% Growth, Led by
Strong Exports and a Recovery of Domestic Demand

Malaysia....................................................................................................................... 46
The Economy in 2007: 5.7% Growth, Underpinned by Domestic Demand
Despite Slowing Export Growth
Forecast for the Economy in 2008: Continuing Stable Growth at 5.8%,
Led Mainly by Private Domestic Demand vi

The Philippines ........................................................................................................... 49
The Economy in 2007: 6.7% Growth, Accompanying Fiscal Rehabilitation
Forecast for the Economy in 2008: Slowdown to 6.3% Growth,
Due to Stagnant Growth of Both Domestic and External Demand

Vietnam........................................................................................................................ 52
The Economy in 2007: Strong Growth of 8.4%, Reflecting Favorable Performance
in Both the Industrial and the Service Sectors
Forecast for the Economy in 2008: Continuing High Growth at 8.7%
Appendix: Summary Tables of Share and Growth Rates of GDP Expenditures.... 55

RioVida Networks news you can use and trends you want to watch




		$200 Billion Dollars allocated by Feds to stabilize the US economy.	In March 2008 the Fed said it would lend $200 billion worth of Treasuries to a wide range of banks for 28 days in return for debt, including triple-A-rated mortgage bonds. This will allow banks to get rid of the illiquid securities that are dragging down their balance sheets in exchange for very liquid Treasuries that can be traded in for cash. On Friday, it raised the TAF to $100 billion from $60 billion. In December, the Fed was offering just $20 billion through the TAF. Also on Friday, the Fed announced a new type of repurchasing program, whereby it will lend banks $100 billion for 28 days at attractive rates in exchange for a broad range of collateral, including riskier mortgage securities.

		"A different perspective about world influence." Will the world move on without the US? Why would that happen and what does it mean?	Parag Khanna is a senior research fellow in the American Strategy Program of the New America Foundation. This essay is adapted from his book, “The Second World: Empires and Influence in the New Global Order,” to be published by Random House in March. We are competing — and losing — in a geopolitical marketplace alongside the world’s other superpowers: the European Union and China. This is geopolitics in the 21st century: the new Big Three. Not Russia, an increasingly depopulated expanse run by Gazprom.gov; not an incoherent Islam embroiled in internal wars; and not India, lagging decades behind China in both development and strategic appetite. The Big Three make the rules — their own rules — without any one of them dominating. And the others are left to choose their suitors in this post-American world. The more we appreciate the differences among the American, European and Chinese worldviews, the more we will see the planetary stakes of the new global game. Previous eras of balance of power have been among European powers sharing a common culture. The cold war, too, was not truly an “East-West” struggle; it remained essentially a contest over Europe. What we have today, for the first time in history, is a global, multicivilizational, multipolar battle. MORE
		New America's Next Social Contract is designed to restore the balanced between workers, employers, and government that gives individuals the security they need to navigate a dynamic economy.	New America's Next Social Contract Initiative aims to make this vision a reality. Americans face a profound opportunity to seize the reins of our politics and restore balance to the social contract. New America has already outlined vital first steps -- both conceptually and on the cornerstone issue of health care -- for that long and difficult process. Our February 29th event discussed the contours of the next era of American politics. With the prospect of a coming political sea change, the role of institutions, the boundaries of evolving coalitions, and the expanding frontiers for policy innovation remain uncertain. Mark Schmitt, David Frum, Jonathan Chait, and many other participants will offer their perspectives on these difficult questions. The event also marked the release of two new new papers. "The American Public and the Next Social Contract: Public Opinion and Political Culture in 2007," by Professor Cliff Zukin of Rutgers University, explores the state of public opinion in America. Zukin examines enduring American values and current attitudes on pressing policy challenges. In "What Does 'Post-Partisan' Mean?", Phil Longman attempts to unravel the threads leading up to the current political moment.

		"Banking and Interest Rates in Monetary Policy Analysis: A Quantitative Exploration“ by Marvin Goodfriend and Bennett McCallum (Carnegie Mellon)	This paper which is to apprear in the Journal of Monetary Economics, the authors try to rectify a glaring omission in standard macro models: they do not have a banking sector and there is only one interest rate, making them woefully inadequate to analyse situations of financial distress. The authors introduce banks as producers of credit. The cost of production drives the interbank rate, which is the target rate of most central banks, below the interest rate that borrowers have to pay. Over the business cycle, or due to shocks, the demand for credit and the production cost of credit vary in ways, which standard models cannot grasp. One important channel is the value of collateral, which enters the model as a resource making credit production cheaper. With this paper the two authors calibrate Goodfriend's model with US data to provide information on the quantitative importance of these issues. The result indicates that single-interest-rate-models can be very flawed guides to monetary policy. Of particular interest is a policy experiment in which the authors assume a one percent decline in collateral to capture the consequences of financial distress. MORE

		Mr. Jinichi Uemura Director, Macroeconomic Analysis Group Development Studies Center Institute of Developing Economies 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba-ken 261-8545 Written for the Japan External Trade Organization (Jetro) Released: 12/ 2007	The purpose of this white paper is to provide an economic outlook that aims to faithfully reflect both theory and reality, by using a “macro-econometric model” – a method of analysis that maintains consistency with both economic and statistical theory – as well as links with IDE country specialists, who observe the current affairs of the economies they focus on, and also overseas local research institutes in the economies surveyed. External Conditions (1) The sub-prime mortgage financial crisis is likely to head toward resolution in the latter half of 2008, and its effect on the real economy of the U.S. is expected to be limited. In 2008, the economies of the U.S., Japan and Europe will slow. (2) Due to the uncertainty in the financial market, investment funds are flowing into the commodities markets. In the latter half of 2008, these funds are forecast to return to the financial market, and the price of crude oil for 2008 as a whole to hover at approximately 80 dollars per barrel. (3) Asian currencies are appreciating following the movement away from the dollar. It is assumed that this trend will continue in 2008. (4) There will be little room for a continued fall in the price of IT-related products, which decreased in 2007. Projections by Country and Regions China........................................................................................................................... 28 The Economy in 2007: Above-11% Growth, Fueled by Accelerated Investment Forecast for the Economy in 2008: Growth Will Slow to 10.6% under the Effect of Weakening Export Growth South Korea................................................................................................................. 31 The Economy in 2007: Firmer Domestic Demand, Underpinning Solid Growth Forecast for the Economy in 2008: 5.0% Growth, Underpinned by an Increased Contribution of Domestic Demand Taiwan.................................................................................................................... 34 The Economy in 2007: 5.4 % Growth, Sustained by Solid Domestic Demand Forecast for the Economy in 2008: 4.4% Growth, as External Demand Grows at a Slower Rate, Despite Steady Domestic Demand Hong Kong .................................................................................................................. 36 The Economy in 2007: 6.0% Growth, Supported by a Steady Increase in Domestic Demand Forecast for the Economy in 2008: 5.3% Growth, Reflecting Moderate Growth of Consumption Demand and Slowing Growth of External Demand Singapore..................................................................................................................... 38 The Economy in 2007: 7.9% Growth, Led by Brisk Private Demand Forecast for the Economy in 2008: Solid Growth of 6.6% Indonesia ......................................................................................................................40 The Economy in 2007: Higher Growth of 6.2% Based on a Recovery of Domestic Demand and Strong External Demand Forecast for the Economy in 2008: 6.4% Growth, Stimulated by Expanding Investment Thailand....................................................................................................................... 43 The Economy in 2007: 4.6% Growth, Led by Vigorous Exports Forecast for the Economy in 2008: 5.0% Growth, Led by Strong Exports and a Recovery of Domestic Demand Malaysia....................................................................................................................... 46 The Economy in 2007: 5.7% Growth, Underpinned by Domestic Demand Despite Slowing Export Growth Forecast for the Economy in 2008: Continuing Stable Growth at 5.8%, Led Mainly by Private Domestic Demand vi The Philippines ........................................................................................................... 49 The Economy in 2007: 6.7% Growth, Accompanying Fiscal Rehabilitation Forecast for the Economy in 2008: Slowdown to 6.3% Growth, Due to Stagnant Growth of Both Domestic and External Demand Vietnam........................................................................................................................ 52 The Economy in 2007: Strong Growth of 8.4%, Reflecting Favorable Performance in Both the Industrial and the Service Sectors Forecast for the Economy in 2008: Continuing High Growth at 8.7% Appendix: Summary Tables of Share and Growth Rates of GDP Expenditures.... 55



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Projections by Country and Regions

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Produced by Riovida Networks, LLC © All Rights Reserved 2008