Circulation Of Money. Velocity of Money (Circulation) Part 1 http://www.youtube.com/watch?v=lXoAjTVyMxQ&feature=related Velocity of Money (Circulation) Part 2 http://www.youtube.com/watch?v=50WIo0CfwBI&feature=related. Greece ’ s Economic Debt Crisis.
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Velocity of Money (Circulation) Part 1
Velocity of Money (Circulation) Part 2
Greece’s Economic Debt Crisis
- an economy that relies chiefly on market forces (corporations) to allocate goods and resources and to determine prices
-are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment.
– An acronym referring to the four countries in the Europe Union - Portugal, Ireland, Greece and Spain, where they are in a heavily indebted economic situation.
2010: First Bailout for Greece $147 Billion
2012: Second Bailout for Greece $170 Billion
“The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with one other.”
With some European countries seemingly unable to control their spiraling debt, and with uncertainty over the type of financial relief the European Central Bank may contribute, there are fears the end of the euro is near.
Why Canadians should be concerned about a Euro collapse (source: CBC Dec 1, 2011):
Greece Owes the Following:
Britian $15 Billion
France $75 Billion
Germany $45 Billion
Ireland $8.5 Billion
Italy $6.9 Billion
Spain $1.3 Billion
Portugal $9.7 Billion
Euro Zone Debt Total $161.4 Billion
Debt to other countries: $74.6 Billion
Grand Total: $236 Billion
Interest Rates charged by investors for 10 year bonds 7.6%
In comparison Germany was only 3%
Interest per year for 10 years at 7.6%:17,936,000,000
Interest per year for 10 years at 3.0%:7,080,000,000
E.g. A country wants to borrow $100. It issues a bond that it sells for $100. To attract investors, the issuer of the bond offers to pay $4 a year to holders of the bond, and will do so for 10 years. At that time, the bond matures, and the bold holder gets $100 back.
GDP: $318.1 Billion
Public 60%Private 40%
Greece's economic crisis has forced the government to cut public spending by tens of billions, slash salaries and raise taxes. Greeks have raided their savings. According to small Greek lender Attica Bank, around 50 billion euros ($68 billion) have been taken out of Greek banks over the past two years, much of that by middle class people. This has effected the liquidity of the banks (ability to hand out cash).
Greek political earthquake shakes EU. 8 May 2012. CSF Rieti
BBC This World - Michael Portillo's Great Euro Crisis (2012)
Debt Clock For Canada
WTF: The federal budget and 50 years of Canadian debt
Canada Budget Cutbacks What's in Store (The National)
Consumer Debt in Canada
Debt and Mortgages
Greece seeing deposits drain, report says
Greek elections set for June 17 after talks collapse
Go to CIA Factbook and Assess Canada’s Economic Situation. Create an outline using indicators and your understanding to write about the state of our economy.