Economy – Modern day Economy

Introduction:

We all have come to live the fact that recession has affected our lives to a great extent. The recession last year has been one of the biggest the world has seen ever since The Great Depression of 1929 in America. What we have to realize now is how long the recession is going to stay. The recession that started last year is going to make us stand on our toes. At least that is what most analysts say. But, what is the current state of economy in 2010? This might probably one of the most important articles you will have read in the most recent times. So, gear up for its going to be a hayride.

Overview:

You must have heard of the situation that had arisen in Greece some days back. Riots on large scale are being done by the people against the decision of the governing leaders of its country. You may be wondering what those decisions are. The repercussions of those decisions are that unemployment has risen to almost 10% and the economy as expected is in a very bad state of affairs. Greek people are in need of desperate help. Greece had agreed to raise taxes up to 24% and other accompanying factors in barter for a 144 billion bailout loan from other countries. This would only directly affect the people of Greece. Even worse, is what you are going to hear. This bailout plan is intended to sort out the problems of Greece only for 1 year.

Factors leading to the situations:

Many factors can be blamed responsible for the situation that has arisen in Greece. Each nation has a central bank and each central bank has a authorization to print currency without having anything to back it up, no assets to guarantee the value. This crisis can be traced back to the year 1971 when the law was first removed where each nation had to have assets (Gold or Silver as collateral or security). This, in turn is showing results these days in comparison to the Euro Dollar, wherein each nation is printing currency for free with this authorization. Euro dollar is in such bad shape that it is not surprising that this condition is spreading to other parts of the world too. Countries like UK, US, Japan, China too have been affected to a large extent due to such decisions.

Another major factor that has to be taken into consideration is the credit report scam. This has to be dealt with in a careful manner, especially in these times of distress. You have to be very careful with regard to your Credit Card Statements. Keep a constant check on them. Money laundering is very common these days with regard to credit report scam. You have to exercise properly the credit card information you provide to others otherwise your money will be another person’s feast. Money gone is money gone, especially in these times of recession.