How to spend £75m

http://www.economist.com/blogs/gametheory/2014/08/football-transfers

In the article How to spend £75m, Game Theory Sports investigates the history of soccer transfers. Last summer the Premier League saw the third most expensive transaction in soccer history. Liverpool, who was predicted to place fifth in the league, dealt superstar Luis Suarez to Barcelona for £75 million, which is equivalent to $124 million. The contract for the Suarez ranks in the top 50 most lucrative contracts of all time. The two footballers that have bigger contracts than Suarez are Lionel Messi from Barcelona and Gareth Bale from Real Madrid.

In the past, it has been difficult for Premier League teams to replace their most valuable and fittingly their most expensive players. Game Theory Sports looked at the change in soccer teams wages since there has been a positive correlation, around 90%, between wages and league rank. Three years ago Liverpool also sent another star, Fernando Torres, to Chelsea for £50 million or $81 million. As a result, Liverpool received 20 less points toward their standings during the season. Liverpool went from finishing second in the league, to sixth and then eighth in the subsequent years. The correlation seems obvious that trading expensive and valuable players would result in worse performance, but that has not always been the case. Manchester United, Arsenal, and Everton have all experienced similar result after trading away some of their best players as well.

In an attempt to replace their star in 2011, Liverpool purchased another star from Newcastle, Andy Carroll. The problem with the transaction was that Newcastle knew that Liverpool had excess in cash flow, thus inflating the cost of replacing the footballer. Also, by trading away valuable players, teams are helping their rivals. In all, it is better for teams to keep their star players rather than cashing them in.

CVS Is Now CVS Health (NYSE:CVS) After Stopping The Sale Of Tobacco Products

As of this past Wednesday, September 10, CVS Caremark Corporation made the decision to change their name to CVS Health, and to go along with their new name, discontinue their sales of all tobacco products. This meant taking a $2 billion cut in their annual sales. Like they say "no risk, no reward," and CVS is hoping their risk will be rewarded by the public by being seen as the pharmacy that really is all about health, and hopefully bring in new clients who want their products sold at, the now tobacco free, CVS stores. The discontinuation of selling tobacco products could also help take American's one step closer to being tobacco free, as was previously discovered was the case in Boston and and San Francisco. Both locations banned the selling of tobacco products in pharmacies, and as it turns out, tobacco sales fell by 13.3%. CVS plans to use the previously tobacco occupied spaces to advertise that they are no longer selling tobacco products, along with selling products that help quit the usage of tobacco products.

I think it will be interesting to see if other retailers follow in the footsteps of CVS. I can see this going two ways. Either this will increase the demand of tobacco products at all other retailers because the supply has now slightly decreased, thus also raising the, already ridiculously high, prices of tobacco products, or health clients will flock to CVS to sell their products, increasing CVS's revenue. Other retailers will see this increase and jump on the bandwagon and become tobacco free. Something very positive about this potential outcome is that the more available products that help people quit using tobacco becomes, the cheaper these products will be. With less retailers selling tobacco products and more selling quitting products, it would be cheaper for American's to kick this nasty habit rather than keep giving in to the addiction.



Link:  http://stocks.org/company/cvs-is-now-cvs-health-nysecvs-after-stopping-the-sale-of-tobacco-products/25280/

 

                             Is Radio Shack Bankrupt? 

http://www.stockwisedaily.com/radioshack-corporation-rsh-says-its-running-out-of-cash/235550/


     RadioShack seems to be running out of funds fast to fully stock their store and pay their employees. The company claimed their sales went down by a whole 20% making them rethink their strategy and to hopefully find better ways to bounce back.

    The company may have to get rid of some stores and let off some of their employers to focus on some of the main stores that bring in the most revenue. They may even consider the fact that they will have to sell out. These 4,500 stores only brought in about 30 million worth of sales which is roughly six grand per store, thats no where near enough money to keep a business running.

    Now with its investors, a lot are either selling stock or waiting for the perfect moment to sell because their is no confidence that the company is going to bounce back. The stock price has dropped nearly 96% with the stocks costing no more than 55 cents.

    I personally have been to Radio shack whether its for iPhone chargers or batteries or little electronic devices that I don't want to have to purchase at a massive store like a Best Buy, yet It's rare that one will visit the store frequently unlike a grocery store or a pharmacy. When I am purchasing an item at radio shack there is no one ever there and theres about three personal on staff. Not every company can survive and we will see if Radio Shack will be revived.

"Stronger Hiring Shines on Long-Term Jobless"

http://www.usatoday.com/story/money/business/2014/09/07/long-term-unemployment/15147943/

One positive to be found in the August jobs report was an impressive decrease in long-term unemployment. The number of Americans without a job for at least six months decreased by 192,000. The long-term unemployed make up 31.2% of all jobless Americans, a percentage that is still historically high, but down 38% from a year ago.  

Studies have shown that employers are reluctant to hire persons that have been out of work six months or longer due to the concern that these persons' skills have atrophied or are no longer suited to the new jobs being created. However, Josh Brivens, research director at the Economic Policy Institute argues that these persons are simply victims of the 2008 recession and that strengthening job growth and a tightening labor market are encouraging employers to hire back these persons.  

The article also mentions that another factor that may be decreasing long-term unemployment is Congress' cut-off of extended unemployment insurance; those who lost benefits are now more likely to accept the low-paying jobs they previously rejected.  

I think it will be interesting to see how the U.S. Government addresses the discrimination that long-term unemployment workers are facing from employers. I am also interested to see how the U.S. will continue its battle against long-term unemployment as it still makes up almost a third of those that are unemployed.  

Black-Owned Businesses Are Quietly Powering Detroit's Resurgence, But No One's Talking About It

http://www.huffingtonpost.com/2014/07/17/detroit-black-owned-businesses-_n_5587466.html

This article is written about a year after the city of Detroit declared bankruptcy. This article focuses on how the city is recovering now mostly due to the Black business owners of the city, but how no other media news source will acknowledge this. I find this article interesting because it talks about how there are over 32, 000 black owned businesses that have been open for decades in the city and have been through bad times before. Also after the introduction 13 Black owned Detroit businesses are profiled.

America has 4.7 million job openings

http://money.cnn.com/2014/09/09/news/economy/job-openings-increase-bls/index.html?iid=SF_E_River

This article is about the economic growth of the US recently. There is an increase of 800,000 job openings since January of 2014. This growth of jobs is causing a growth of income and is the driving force behind a growth in consumer spending, which then creates more job growth. It is a cycle that the people of the US get excited about. Due to the vast amount of job available, according to the data people seem to be happy at their job because they aren't worried about trying to find another one. Due to this fact the quit rate, meaning people who voluntarily left their job, has stayed at 1.8% for the past six months.

Janet Yellen of the Federal Reserve wants to remind people that even though this improvement in the economy looks good, the market still has not fully recovered. it is predicted that August's numbers will continue to improve, businesses will feel more better about hiring people and the job market will continue to grow.

Global Economic Growth Is Expected To Speed Up This Year

           The article talks about how it is predicted that this year (2014), the global economy is going to experience economic growth in USA and other majorly developed countries. It is also predicted that there might be deflation to follow which might be a problem as recovery from this deflation.
           The global economy is supposed to increase by 3.2% which is an 0.8% from last year. The World Bank forecast was that the majorly developed countries will grow more this year i.. 2.2%. The article further suggests that there will be growth in the developing countries such as China and India and though it will not be on a large scale, it will still be economic growth.
           Moreover the article talks about how the federal reserve has reduced the monthly bond-buying stimulus program which leads to the possible risk of reducing the capital and capital flow and a reversal of monetary policy in developing countries would lead to a hinder in the economic growth that is predicted.

Detroit Clears Crucial Hurdle on Bankruptcy

Detroit has reached an agreement with debtors about coming out of bankruptcy, and it has happened much sooner than expected. The bond issuer Syncora Guarantee has been the city's fiercest opponent in the past few months in settling these outstanding debts and the two parties have come to a preliminary agreement. Detroit will be giving them control of the Detroit-Windsor tunnel, allowing the company prime waterfront real estate. This could prove lucrative for Syncora, with the NYT stating that $13.5 million in repairs over the first 5 years could return as much as 40%. Detroit is also making many deals with suburban neighbors to repair their aging water and sewer system, which has caused millions in damage.

Detroit is attempting to get out of courts as fast as possible and are making deals with many private companies. Could these deals come back to haunt them in the coming years of recovery, with many deals, like the one with Syncora, lasting until 2040?

http://www.nytimes.com/2014/09/10/us/detroit-clears-crucial-hurdle-on-bankruptcy.html?ref=business&_r=0

5 reasons to worry about Scottish independence

         For 307 years, Scotland and England have been unified. Their economies, banks, currencies, and industries are tied and, if Scotland should become independent, the consequences will span all of those aspects.
         This past week, the value of the pound against the dollar has fallen to a 10-month low. This is largely because of the uncertainty of its future. Supporters of Scottish independence are fighting to keep the use of the pound in an economic union with the U.K. However, the Bank of England would likely impose strict budget rules if that were to happen. Scotland's only other option would be to create a totally new currency, which would bring about a whole new slew of problems. Adopting the euro is not a viable option.
         The U.K. currently possesses a large amount of debt. If the spilt occurs, the U.K. has said it will honor all of the debt, including that incurred by Scotland. Under these circumstances, the newly independent Scotland would owe the U.K. around 130 billion euros, roughly 10% of the public debt. Supporters of independence have said that they're ready to manage that debt and confident in Scotland's ability to do so. However, analysts at Standard&Poor's believe that the new Scottish economy would be  less capable of handling the debt because of its dependence on earnings from the gas and oil industries, which are prone to shocks.
           The U.K. produces about 90% of the EU's oil, most of which comes from land that would most likely be claimed by the newly independent Scotland. England will most likely want a share of the production and reserves and analysts believe that an agreement could be made. Supporters of independence estimate that oil remaining in Scotland is worth about 1.5 trillion euros. However, the U.K. government argues that it's less than 1/10th of that number.
           Large financial institutions based in Scotland such as Royal Bank of Scotland and Loyds have aired concerns that independence would damage their businesses by lowering credit ratings and increasing costs. The banking sector in Scotland would be 12 times the size of the newly independent economy, which raises concerns about Scotland's ability to deal with future financial crises. Large banks are worried that they may need to move their headquarters to England to avoid future financial strain.
            Supporters of Scottish independence want Scotland to remain part of the EU. However, as a new state, it would need to apply for membership. All 28 states would have to approve their entry, which some states would be reluctant to do for fear of fostering their own separatist movements.
           Prime Minister David Cameron has assured a vote for Britain's membership in the EU, assuming he wins the election next year.
          Overall, it seems like Scotland's separation from the U.K. would be beneficial for neither Scotland nor Britain. Economically, Scotland is unstable and would struggle intensely on its own. The U.K. would lose tons of revenue that it gains annually from Scotland. Scotland would also struggle to find its place and prove itself in the EU as well as the world economy.

Link: http://money.cnn.com/2014/09/09/news/scotland-independence-referendum/index.html?iid=SF_E_River
         

Offshore Oil Drilling

http://www.nytimes.com/2014/08/29/business/shell-submits-a-plan-for-new-alaskan-arctic-oil-exploration.html?_r=0

Any mention of oil drilling almost inevitably spurs conversation regarding its environmental impact. When the discussion turns to offshore oil drilling, the debate is even more heated, not just digging underground but rather thousands of feet underwater. Offshore oil drilling consists of drilling the sea bed from a platform to obtain oil lying beneath the sea; it is a risky activity fraught with potential for spills, and consequent catastrophic contamination. Advocates of offshore drilling maintain that it creates jobs for individuals, who will then spend money from the wages they earn in the local community. This in turn, the argument posits, increases GDP and could play a major role in the recovery of the current overall economy. When environmental depletion is added to the measure of GDP, however, we see that the economy as a whole actually deteriorates, not improves.

            Despite years of legal and logistical obstacles as well as relentless opposition from environmentalists, Royal Dutch Shell attempts yet again to drill for oil in the Alaskan Arctic, one of the great untapped frontiers in the United States. The proposed plan consists of two drilling rigs in the Chukchi Sea, which Shell believes could produce more than 400,000 barrels of oil per day. Such figures however, when weighed against the various costs associated with offshore oil drilling, only superficially impress. Given that Shell’s previous Alaskan Artic efforts have been marked by mistakes and accidents, I believe that the potential benefits of offshore drilling do not outweigh the potential costs. Easily my favorite quote in the article was from Travis Nichols, a spokesman for Greenpeace, who said “Anyone who has been following this story knows Shell is not Arctic-ready. And more importantly, the Arctic will never be Shell-ready.” 

http://www.nytimes.com/2014/09/09/us/ferguson-council-looks-to-improve-community-relations-with-police.html?nl=todaysheadlines&emc=edit_th_20140909&_r=0

Ferguson, Mo., has made the first steps towards major change since the shooting of the 18 year old Michael Brown. The City Council is attempting to deal with the problems of municipal court fines that leave many minor offenders in crippling debt. After Brown’s murder, Ferguson was put under the national spot light, causing them to reevaluate their policies in a predominantly black community where many had complaints of police harassment.

In response to the criticisms, one of the things the city is going to vote on limiting the amount of funds that can come from fines. They are limiting a number of the fines imposed on people who do not have the ability to pay. These include fines for not showing up to court, traffic fines and others. Many of these fines will be replaced with alternative options, such as community service, allowing those in poverty to not be stuck in debt.

Ferguson is attempting to improve the relationship between the police and the community. These changes are the first steps in that process.

Job market update and unemployment

Jobs: Signs of strength, pockets of pain

         This article helps analyze deeper into the job report of the past month of August. While just at face value, only a disappointing 142,000 jobs were created in August; however, there is evidence that shows some parts of the job market that are fairly strong and or improving. While there are still struggles for younger workers, minorities, and those without college degrees to find work, there seems to still be a demand for labor out there. One result of the recession was the increase in long-term unemployment. Now the total number of long-term unemployment is steadily decreasing. Furthermore, the number of people who are characterized as “underemployed”, or those who are looking for full-time work but had to settle for part-time work, is down nearly 1 million from last summer. Even the unemployment for youth’s has been on the high end; it also seems to be falling slowly. However, these numbers may be worse than suggested because young adults who cannot find work may be dropping out of the labor force for further schooling. With the small improvements stated throughout most of the article, the very end states the racial difference that still remains in the job market. Black unemployment is still in the double digits while Hispanic unemployment is still higher than that of whites.

            For me this article was very informational in getting me up to speed with the job market and unemployment in our country. As we are still recovering from the recession of 2008, it is encouraging to see the progress we are making, small or not. That being said, there is still a lot left to do to reduce unemployment. Personally, racial difference in unemployment numbers is a big issue that hopefully will improve in the short future.

http://money.cnn.com/2014/09/05/news/economy/jobs-strength-pain/index.html?iid=HP_River

Jobs: Signs of Strength, Pockets of Pain

"Jobs: Signs of Strength, Pockets of Pain"
The newest BLS statistics released show that August produced only 142,000 jobs. This article attempts to bring light to other factors of the economy that are often overshadowed by the numbers of the unemployment rate and the number of jobs added. The article concludes that even though these two numbers are important, they sometimes become people's main way of gauging the success of the economy.
The article speaks of the number of people who have been unemployed in the long-run, and shows the number has been steadily dropping since the end of last year. Also, the number of part-time workers searching for full time positions is down almost a million since last year. It also gives some examples of hardships in the economy that are also often overlooked by the average Joe. It speaks of the high rate of unemployment for teenagers and African Americans, problems that also need addressed.
I think the article does a good job of showing how many factors there truly are when analyzing the economy. Most people only hear about the unemployment rate or the number of jobs added, but fail to take the initiative to look deeper. Even when looking at statistics provided in this article you must dive deeper if you truly want an understanding of what you are seeing. The article speaks of the lowering numbers of long-term unemployment and underemployment, but fails to mention the labor force participation rate, a huge factor when analyzing these numbers. If people have simply stopped looking for work, they will no longer be counted as unemployed, lowering the numbers.

http://money.cnn.com/2014/09/05/news/economy/jobs-strength-pain/index.html?iid=SF_E_River

Guinness goes blonde for U.S. market

Guinness goes blonde for U.S. market

Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. Jame's Gate, Dublin. Guinness starts to target more at the American market and rolls out a brand new lager, Guinness Blonde American Lager. And it is 80% lighter in color than Guinness Draught. The reason Guinness taking such action is due to the fact that the beer sales have been down for the past five years; but craft beer is having a rapid growth and takes up 20% of overall US beer market. Some of the other largest beer companies have been taking actions as well, like Anheuser-Busch, planning to buy Blue Point Brewing Company; and Molson Coors Brewing Company also roll out a couple of its own craft beers. The competition between beer brewing companies is very intense.

The large brew companies mentioned above already feel the pinch, and start either attempting to release their own craft beers or buying the small craft brew companies to gain back their portions in this competitive market. Craft beers are known for their high quality and massive selections. That attracts a lot of customers who are often willing to try out new products instead of sticking with the same beer. But craft beers have one disadvantage: higher price than mass-produced big beers because brewers focus more on the quality instead of marketing campaigns and stock prices. That still doesn't stop craft beers taking up more and more of the U.S. beer market, because people are becoming more educated on the choices of beers. Lots of Americans' favorite beers, like Bud Light, Corona are often called "watery beer", because these brewers focus on mass produce and making benefit a lot more than putting good ingredients in the beers. It seems like big beer brewers have to work a lot harder to make better beers to fight in the increasing competition in the U.S market.

China's Trade Surplus Climbs tor record in August

Exports increased 9.4% from a year ago in China and imports unexpectedly dropped from 2.4%, creating a trade surplus of $49.8 billion. This pertains to our discussions in class about net imports/exports. China is the world's second largest economy, and their great manufacturing capability is one of the main reasons for this. China has been able to grow at very high rates over the past years due to the advantages of manufacturing in China for businesses. This has allowed for accelerated growth in GDP and as this article indicates, they are still shipping a large amount of goods over seas, and growing in this area.

There is no need for stimulus as the demand from overseas continues to rise which allows China in theory to have a stronger economy without the need for intervention. GDP in China is expected to grow at about 7.5% this year. The demand for products made in China is continuing to increase despite what the media has said about businesses wanting to manufacturing in America once again. This is evidence of that.

http://www.bloomberg.com/news/2014-09-07/china-s-trade-surplus-climbs-to-record-in-august.html

Ahead of the Bell: US Unemployment Benefits

http://finance.yahoo.com/news/ahead-bell-us-unemployment-benefits-101937690.html
This article gave us a bright light of employment situation due to many facts:
According to the article, jobless claims have fallen this summer compared to the start of the Great Recession at the end of 2007. Also, according to FactSet, employers are expected to have hire more 220,000 employees in August. Economists also predicted that the unemployment rate got to 6.1 percent, from 6.2 percent. Compared to 195,000 jobs added in 2013, employers now have added an average of 230,000 jobs a month so far this year.
This rising optimism about employment helped boost consumer confidence, according to the Conference Board, a research group. 
However, wage did not have the same effect. The article consequently points out that the more people have jobs, the more paychecks they should get, so that consumer spending can grow.

The fall could see housing rise

http://www.cnbc.com/id/101962864

This article shows the comparison between the sale figures for years 2013 and 2014, reflecting the difference in the house prices. The prices are being pushed lower by sellers as not many houses are being able to be sold, compared to last year. This trend is believed to continue in August, and possibly even in September and October. 

July 2013 was one of the years when the house prices rose, but it seems like to be shrinking. An observation was made by Redfin where more negotiable meetings have been taken place between buyers and sellers, resulting in lower price deals. 

Prices keep changing according to the geographic factors of different states. States like Florida, Texas and Arizona have been pushing their prices low, resulting in the market to be slow during the fall, whereas New England, California and New York seem to be heating up. 

It is very interesting to see how the market prices can keep fluctuating due to climate factors too. As stated in the article, an observation was made that "Markets where search activity is high in autumn tend to have warm and dry Septembers and Octobers relative to their local climate in the rest of the year," according to Trulia's chief economist, Jed Kolko. 

If we talk figuratively, 27% of their homes were sold above their price list, but this year it shrunk to 20%. 

Employers value skills over college degrees, workers say

http://money.cnn.com/2014/07/02/pf/worker-skills/index.html?iid=SF_BN_River

The article I reviewed discusses the topic of how employers don't look at college degrees and how well an applicant did in college but if they have the skills to do the job well.  The author used facts from a survey site that surveyed over 2000 adults.  72% of the adults said that being trained in a specific skill is valued higher than a college degree by their employer.  80% of respondents say that they have never been asked about their college grade point averages during a job interview.  It's clear for most jobs that spending the extra money to go to graduate school is not necessarily required to land a high paying job.

I'd like to think the article is just saying that an employer doesn't want just a robot but someone who can actually communicate with people, contribute to the culture at the employer's work space, and be social.  Even though someone may have earned a 4.0 grade point average from Harvard, an employer may choose someone over the applicant from Harvard because the other applicant can communicate well, work well with others and isn't afraid to voice their opinion.  Employers are now looking for the intangibles of applicants and not just one specific skill.

http://finance.yahoo.com/news/jobs-are-open-----but-companies-aren-t-filling-them--here-s-why-183423110.html

This article talks about the recent jobs survey from august.  They say job openings have reached the highest numbers in over a decade, but employers are taking longer to fill these openings (about 25 days and around 58 days at firms with over 5,000 employees.  An economist from the University of Chicago credits this to the economy still being pretty sluggish, and as a result of this he believes firms don't feel as desperate to fill these open positions.  He brings up the point how employers are using social media such as LinkedIn and job banks to find new prospects.  Another Reason he states for firms being cautious who they are hiring is in recent decades there has been an expansion in protected workers, meaning there are more reasons for them to be sued if they hire and then fire a worker.  His solution to this problem is for us to make it easier for employers to enter into no-risk or little-risk trial periods where they can hire someone they feel may not be the best candidate for a trial period.  If this candidate doesn't work out then they can fire them without any risk of litigation against them.

Some Americans Worry Over Possible Age Bias

Although 142,000 jobs were added this past August, it was the first time in six months that fewer than 200,000 jobs were created.  Those who are still struggling to find work believe that their age is holding them back from employment.  U.S. Labor Secretary Tom Perez admits speaking to many people who believe that this is the case.  According to CNN, 1 in 3 people looking for work have been unemployed for over six months, which currently equals about 3 million people. 

Perez later comments that over the past 12 months, professional services such as architects and accountants have been adding the most jobs.  Are firms now hiring college graduates over older and experienced workers, or is the worrying unnecessary?    

http://money.cnn.com/2014/09/05/news/economy/jobs-report-labor-secretary-perez/index.html?iid=HP_River

Is the unemployment rate still a relevant indicator of our economic health?

http://www.nytimes.com/2014/09/06/upshot/the-jobless-rate-the-worst-benchmark-except-for-all-the-others.html?ref=economy&abt=0002&abg=0

The main idea expressed in this article is that although we have hit an unemployment rate of roughly 6.1%, we may be misinterpreting its meaning.

A growing number of people who have been unemployed but avidly looking for work, have given up and are no longer in the labor force. Because they have left the labor force (Working and looking for work), they are not included in the calculation of our unemployment rate, even though they are not employed.

The participation in the labor force has been decreasing, and many are pessimistic about whether it will recover. It has been suggested that we move to wage growth as another means of tracking the labor market, but for now, Janet Yellen and her colleagues still believe the participation rate will rebound.

http://www.nytimes.com/2014/09/05/business/economy/fast-food-workers-seeking-higher-wages-are-arrested-during-sit-ins.html?ref=economy


There is a movement among fast-food workers for a raise to $15 an hour. Currently the average wage is $9 per hour. These protesters were arrested recently in three-dozen cities, as they protested and went on strike for the cause. Those protesting for better pay are currently dissatisfied with their current level of pay, claiming that minimum wage is not enough to raise a family on. Opponents to the raise of wages to $15 per hour warn that this would hurt businesses as well as many of the workers. With wages at $15 per hour, low skilled workers would be cut from the budget. The higher wages would leave fast food companies with little to no profits. The extreme raise in wages is one that seems to be a good idea for those working in the industry but would in reality cause many problems for both workers and fast food companies. 

http://www.economist.com/blogs/buttonwood/2014/09/markets-0

Scotland has been debating for quite a while among itself whether to vote to be independent from The UK and how that should be achieved. The article above goes over potential impact that a yes would have over the economy, the national debts of both countries, and also how it would mess with the the socio-political climate.

The reason this is important is that later this month, on September 18, the vote will be put out and it may be possible that a vote to separate will pass. Realistically even if Scotland votes for independence it may take until 2016 at the earliest to have all the details worked out according to David Owen.


I think that independence may not be necessary for Scotland, however I do think that there is a certain benefit to morale for being your own people and not under the rule of a larger entity. The monetary split will be messy but once the details are ironed out I think Scotland will have the potential to grow economically beyond what it could under the influence of the UK, particularly considering how one of the main selling points of the Yes party is the influence of Scottish oil.

A Coffee Crop Withers

          Across Central America, coffee farmers are facing an enemy that is nearly impossible to fight:  coffee rust.  The rust moves quickly, harming local economies by wiping out large portions of coffee crops which small farmers rely on for their livelihood.  The farmers cannot effectively fight the rust.  Even while putting large amounts of the little money they have toward pesticides and treatments, there is little guarantee that the treatments will stop the rust.  In many cases, it does not, and some farmers have lost up to 60 percent of their harvest.  The logical answer would be to turn to the growth of food crops, but the soil in many parts of Central America does not allow the growth of food crops.  Coffee is all that will grow.  The children of many farmers have had to postpone schooling, as their parents need them at home to help with duties that other workers would be ordinarily brought in to do when the economy was still strong.
     
        Coffee rust has shown weaknesses in both the economy and the surrounding environment.  The rust has been getting worse over the past 2 to 3 years, and does not show any sign of slowing.  If farmers continue to lose such a large portion of their crop, chances are they will not be able to sustain themselves and will turn to alternative jobs.  However, there is hope for the future.  Organizations set up for the specific purpose of fighting the rust have begun to show farmers how to prune and regrow their plants.  In the meantime, they are also showing them how to plant food crops along with coffee, to provide food to the farmers and their families while saving their future plants.

http://www.nytimes.com/2014/05/06/business/international/fungus-cripples-coffee-production-across-central-america.html?_r=0

Natural Gas Shortage in China

Natural gas plays a major role in a country’s economy so when the ability to extract a sufficient amount decreases, so does the country’s economy.  China has recently run into a serious natural gas drought and it has crippled the economy.  The amount of natural gas collected has fallen extremely short based on previous expectations so the Chinese government has recognized the issue and addressed it.  Wu Xinxion, the director of the natural energy administration in China,  has predicted that the amount  of shale gas and coal field gas would each supply one percent of China’s electricity generation needs in 2020.  Due to the fact that the economy keeps growing and the amount of energy used is also increasing, sustaining the energy supply in china will be difficult.  This issue is such a pressing matter that China has agreed to buy gas from Russia under a 30 year, $400 billion deal. They are hoping deals like this will allow them to cut down on coal based power plants which are a major factor in contributing to air pollution and global warming.  China plans to look into alternate methods in an attempt to increase the amount of natural gas being collected in the country. They plan on doing this in an effort to strengthen the economy and also have a sufficient amount of natural gas to supply the country with the power it needs.


http://www.nytimes.com/2014/08/22/business/energy-environment/chinas-effort-to-produce-natural-gas-falls-far-short.html?ref=economy