LEHMAN BROTHERS GOST HIT CHINA

 Hi everyone today I'd like to speak about China a power in expansion which would to become the main economic power in 2030. About China importants business newspapers wrote articles every day.

In China it seems that things are no so good and People of Communist Party know that.China is confronted with bad loans crisis. To mask this problem China Central Bank and clampdown the inflation introduces 1 year Loan Prime Rate (LPR) lending benckmark.

Making a parallel with the situation in US 2007-2008 we can say it resemble in both casses we have bad loans.This situation causes concer to chinese autorities they ensure us that everything is under control and at the end we still to wait sa see what's going happen.

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Image source: The guardian)

NON FARM PAYROLLS DISAPPOINTED ME FOR THE FIRST TIME

Hi everyone as I said in my last article I promise that I try to write article everyday.As you probably know the US Congress passes the bill and rise the debt.Starting with this movements the things seems to go in to the normal on financial markets.

The important economic data of this week was with no doubt Non Farm Payrolls important economic indicator in US.This indicator measures the number of jobs excluding farming industry who was created in the previous month,it is called the indicator which move the markets.

Traders of all round the world wait this economic report for every month ,at ussualy it's published  friday in the first week of month.

After the goverment was shutdown the public institutions  closes their activities and reopen after the bill passe in Congress.In september was created only 169 K jobs in us,for october the economists forecast 182 K jobs.But as many time economists were wrong the official data was 148 k jobs in us in octomber and the unemployment rate 7,2%.

The reaction in Fx markets was sell us dolar.But where came my frustration? All most of all currencies pairs with us dolar reported important movements but with only exception (USDJPY)

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CONFIDENCE IN GOLD WAS RETURNED??

It passed a long time since I wrote the last article.Starting with today I promise that I try to write articles every day.Event that caught  my attention last week was the Congress passes bill and raise the us debt and reopen the government.

What followed  this deal was important gains in stocks.In FX markets those who traded against the us the dolar had gained.
It seems that the global economy is in trouble,us economy was threatened with default,Japan economy reported moderatly growth,eurozone area stagnates.Despite to this problems it seems that investors look attention on commodities in special gold.

The precious metal reported important earnings in the last week.The question is?  If the scenario from 2009-2011 will returned and the gold will become a safe haven.Will see what's will happen. In the chart you see how the resistance line was broken.

In the next period  I see buying opportunities for gold on weekly time frame you should wait to retest the support line 1315,12
 after the retest of this level you can choose to enter with buy orders started with 1328  first profit target ,stop loss behind support level 1246.

After the price will reache the level 1315 the pattern which has been formed is a double bottom ,I recomend to no enter immediately with buying orders you shoul wait untill the price will retest the level  of 1431,89 and enter with buying orders started with 1452,78 and the second profit target will be near the next level 1548,38.
This is my personal view about what will happen with gold in the next period.A don't foreget invest in stocks,fx,commodities markets implies risks.

ROMANIAN STUTTER ON CNN

In the last few days seems to broke a diplomatic scandal between London and Bucharest.I couldn't resist to tell my opinion about what happen.Recentely has discovered that in british supermarkets founded fresh horse meat.

Romanian ambasador in UK Ion Jinga  on intervention  on CNN explained how really  the situation is.He said that the romanian companies did not violate the law and not are the arguments that strenght the claims.

About this article what did me to laugh was how Mrs Jinga spoke english .I think it's unacceptable for a romanian ambasador to speak in that way english.But this example unfortunatelly is not singular in the past of the years important romanian politic leaders who stuttered the english on CNN.

AFRICA THE NEW EL DORADO

Until now I considered  that USA to be  the" land of choice"  for many . Today USA is yet the main economic power in the world even they have huge debt problem.

My childhood was marked by american movies ,when I saw how to live the" american dream"

Meanwhile my oppinion was changed ,North American continent was famous for stories with colonists who searched gold this period was called "Golden Rush".

El Dorado county was founded in 18 february 1850 and the main purpose was gold searching.In present a new continent tends to become a new EL Dorado more exactly Africa.

Today Africa is considered a poor continent but with important resources here I'd like to enumerate (gold,silver,oil,gas,etc).Important investors turned their attention to invest in Africa.Romanian entrepreneur Ovidiu Tender leased 4 perimeters in Senegal for the exploatation of heavy metals and also 50 % of Gambia in searching for phosphats.

In conclusion I think that who invest in Africa will have to gain,so my advise" Invest in Africa"


Image source: Free African media



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IT'S CHINA ABLE TO DUMP US DOLLAR ?

China becomes a formidable opponent for US in all points of view military and especially economic.Advantaging to weaknesses of us economy wiht huge debt problem.

This situation become a clash between titans from one part US injuried and another part China.In 2003 China bought us bonds at high historical level.But meanwhile US economy  went in recession.Not predicted this situation China is confrunted with a big problem that USA is or not able to pays his debts.

As for me this current situation become a fight for who will lead the world in the next decades.Many important economists are skeptical that USA are able to pay his debts.In an interview in 2011 to Bloomberg magazine the american bilionaire Warren Buffet said " Us debts are in dollar ,USA have to print currency and pay it"

Started to what Buffet said all of us knows that the us dollar represents world's reserve currency.Us is the only country which has the right to print currency.

Chinese officials are skeptic in posibility that USA to pay his debt.And started a plot  to dump us dollar as the world reserve currency.They started buying huge amonts of gold.

According to State Administration of Foreign Exchange in the last year China invest masive in gold getting to hold 33 890 000 ounces.Meanwhile us economy seems to recover.I think will be difficult to China to dump us dollar and I can't see what currency can replace it.

Image source: Reuters


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SALARIES IN CORPORATIONS

We live in a period that important business organizations wont to eliminate unnecessary expenses in hope to restructured their own business.Many important businesses  were affected by global economic recession.

It the past of the years it has been talking about huge salaries of executives who works in corporations here I would like to emphasize the bankers salaries.

In this essay I'd like to speak about two kinds of business organizations more exactly corporations and flat organizational structure.It's discutable to say what kind of organization is right to you to work and make a career.
On the one hand expenses in flat organization are lower than corporations here I refer to salaries.On the another hand salaries on flat organization are more likely based on performance and productivity.

First of all flat organization in hope to reduce costs outsourced important business departaments such a:( human resources,IT,Payroll) to outsourcing companies.

As for me I think it's important that employees should be paid form resuls,experience and expertize.Furthermore a flat organization can more easy to encourage the collegiality and cooperation among employees.
Despite a corporations it's huge structure it's more hard for persons to be promoted in top management board.Moreover in a flat organization dosen't exists middle-management level thus bringing to top management.With the elimination of middle-management level flat organization can more easy to gestionate their own expenses.

In conclusion I'd like to emphasize that corporations are ideal business models,but they have important gap.Researches shows that important part of employees works in corporations.For a person it's more easy to make a career in flat organization than a corporation,even whether the salaries in corporations are more big.

Image source:thingprogress.org

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