Economy

Black Friday Insider Secrets & Hacks From Employees

Black Friday Hacks Secrets

When it comes to holiday shopping and getting deals, nothing gets people revved up quite like Black Friday. Being from Europe, we find it fascinating that Americans trample each other the day after giving thanks for all they have. But what started it all? And why is it called Black Friday anyway? The phrase “ Black Friday ” was actually coined by the Philadelphia police force in the 1950s. Merchants wanted to take advantage of the out-of-towners coming in for the annual Army-Navy football game. Fearing that if they waited until Sunday to have the sale, many travelers would leave so they could be back at work on Monday morning, so they…

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How The Economic Machine Really Works

Narrator Ray Dalio shares his economic template which covers: 1. Productivity Growth 2. Short-Term Debt Cycle 3. Long-Term Debt Cycle Transactions are the building blocks of the economy. You take part in numerous transactions every day; it’s what we do. Basically, if you understand transactions, you can understand the entire economy. What is a Market? It consists of all the buyers and all of the sellers making transactions for the same types of things. For example, there is a Wheat Market, a Car Market, a Software Market, etc. The economy is the sum of all the transactions from all of the markets. It is money and credit exchanged for goods…

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Revival of sugar production would create 5,000 jobs study

The Irish Sugar Beet Bio-Refinery Group has released a feasibility study into the establishment of a bio-refinery plant which it says would create 5,000 jobs and eliminate imports of up to €200m a year. The integrated plant for the production of sugar and ethanol from sugar beet and grain would be located on a new site in the south east, at the centre of the sugar beet growing region. It would cost €350m to build of which around €200m would be spent on Irish services, equipment and expertise. According to the study, the plant could be built within two years of EU approval being granted for the revival of sugar…

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Global economic data better than sentiment – BoI report

Investor and consumer sentiment are at odds with the facts regarding global economic growth, according to Bank of Ireland’s latest analysis of the Irish and international markets. Author of the monthly Bulletin, Bank of Ireland chief executive Dr Dan McLaughlin, noted that the global economy slowed in the first half of 2011, with annual growth estimated at 3.8pc in the second quarter from 4.4pc in Q1 and over 5pc in 2010. He said the limited data available for the third quarter implies a similar pace to Q2, but that investor sentiment reflects a concern that the pace of expansion has slowed more sharply. McLaughlin said the rhetoric and actions of…

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ESRI expecting lower Irish debt levels

The decision to reduce interest rates on EU borrowing, agreed by the EU Council on 21 July, means that Ireland’s public debt levels will be substantially lower than previously estimated, according to a new article from the ESRI. In coming up with the new figures, John Fitzerald and Ide Kearney, authors of ‘Irish Government Debt And Implied Debt Dynamics: 2011 – 2015’, said they make very conservative assumptions on the interest rates available after 2013, “which could well be significantly lower than we have assumed, with consequential beneficial effects on debt sustainability”. The article estimates that the net debt to GDP ratio will peak at between 100pc and 105pc of…

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Minister proposes changes to JLCs

The mechanisms for setting wages for up to 190,000 workers in the services sector may be changed following proposals by the Minister for Jobs, Enterprise & Innovation. Richard Bruton said the measures he had planned would make the system fairer for the lower paid workers who work across various sectors. They include restaurant staff, hairdressers, contract cleaners and other services employees. Last month, a High Court ruling found that the JLC system was “unconstitutional” so Bruton said there was an urgent need to reform the area. The Minister said the new system proposed would help job creation but added that the rate of pay of current workers would not be…

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Moody’s downgrades Ireland’s rating to junk, warns of second bailout

Moody’s has downgraded Ireland’s rating to junk status. Last night, the credit ratings agency said it downgraded Ireland’s government debt one notch from Baa3 to Ba1. The outlook on the ratings remains negative, which means a further downgrade is still possible. The move came as a blow just hours after Ireland was optimistic that Europe had taken moves which would help it out of the financial crisis. Moody’s said it took the decision to downgrade the debt because of the growing possibility that a second round of financing by the EU and IMF will be needed at the end of 2013. The agency said it is possible that Ireland will…

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Civil partnership tax bill published

Michael Noonan today published a finance bill to allow same sex couples have the same tax rights as married couples. The Minister for Finance needed to change existing tax legislation to bring it in line wit the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010. Civil partners will now receive the same tax treatment as married couples in respect of income tax, stamp duty, capital acquisitions tax, capital gains tax and VAT. In addition, the bill allows for the taxation consequences of the redress scheme for opposite-sex and same-sex cohabiting couples provided for in the 2010 Act. Noonan gave credit to the previous government for its commitment…

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Noonan defends levy on pension funds

A levy of 0.6pc imposed on pension funds to pay for some of the measures announced in yesterday’s Jobs Initiative has produced an uncalled for “quasi-hysterical” reaction, according to Minister for Finance Michael Noonan. The effect the levy will have on pension funds has been “exaggerated” by the pensions industry, Noonan told reporters at a press conference following the Dáil announcement of the much-anticipated Jobs Initiative. He said the Government were “pulling back a very small proportion” of major tax reliefs that the funds have enjoyed in previous years. It will take very little from the value of the funds, he said. He criticised the “quasi-hysterical” reaction, pointing out that…

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Honohan welcomes foreign owners for Irish banks

Governor of the Central Bank Patrick Honohan has once again said he “looks forward” to welcoming foreign owners for Irish banks. Explaining his remarks, he said it is evident that the involvement of new foreign owners could put the banking system on a “firm footing”. He said they can bring capital, risk control and other management skills. Speaking at the Institute of International and European Affairs, Honohan said that the Irish banks need to be downsized, therefore reducing risks and helping the Irish economy demonstrate the tail risk is lower than investors currently believe. “An effective bank restructuring requires that the fortunes of the banks and the budget be convincingly…

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