IS THE DOLLAR FALLING BEHIND ?

Published in El Nuevo Herald on January 13, 2012

The Peterson Institute for International Economics recently estimated at 24% devaluation of the yuan against the dollar. Because in recent months was recovered by 4%, on December 27, 2011, the Treasury secretary, Timothy Geithner, has decided not to designate China a "currency manipulator". Instead it has decided to keep the pressure on China in international forums as the Group of 20 leading nations and the International Monetary Fund. As a campaign platform, Republican Mitt Romney says it will bring this case before the World Trade Organization.

China, meanwhile, and perhaps as a reaction to this pressure, recently made a pact with Japan and Thailand for trade without the presence of the U.S. dollar. Clearly, China is trying to start promoting the yuan in the Association of Southeast Asian Nations (ASEAN), thus establishing free trade zones. The exchange between China and Japan was $ 340.000 million last year, so that an agreement of this magnitude makes it the largest ever made. However, this figure languishes before the three domestic financial aid packages awarded by the U.S. government for more than $ 700.000 million each. This comparison allows us to appreciate the gigantism of the great American Union.

This important agreement without the intervention of the dollar, has yet to be implemented. In particular, banks have to open their build process of Credit Letters with yuan designation to be used in international trade. Up until now, the transactions in Yuans have been made in Hong Kong mainly. The U.S. trade deficit with China was $ 273.000 million last year. When this deal, China-Japan-Thailand is in full swing, you can expect a revaluation of the Yuan, which was far away from the financial turmoil caused by the crisis since 2008. If so, will trigger the interest rates and with it the prices of all Chinese products.
Major U.S. brands dominate the Chinese market, 350 Walmart stores, 400 McDonalds, hospital equipment are primarily GE and Boeing commands the civil aviation. Is estimated at over $ 100.000 million annual profit accruing to U.S. corporations in China, but the biggest problem facing America is the lack of jobs caused precisely by the absence of these and other businesses on U.S. soil. 

Large financial capitals are managed primarily in New York, London and Frankfurt-Munich axis Berlin. This enormous treated China-Japan-Thailand, it create a new world economic order? Will it leave the dollar to exercise its hegemonic role in international trade? Major changes can be made in the medium run. What is a disturbing reality is that the U.S. must urgently take steps to safeguard our system. And these measures can be unrewarding for many.

BENJAMIN F DeYURRE
Miami

PROS AND CONS OF MEGA CASINOS IN MIAMI

Published in El Nuevo Herald on December 11, 2011

Many comments are around the project for a mega casino in the city of Miami. So,  in order you can be more objective, below outlines what we believe are the truths and falsehoods to the issues raised.

-It is true that the casino has recruited a distinguished former congressman to represent them in government negotiations. Undoubtedly, this adds an additional advantage in any negotiation.

-It is true that the revenues generated by these casinos are not reinvested in the city, county or state. Could be achieved to secure legislation in 20% of the net profit the amount to be reinvested in the community. This would be in business investment that will generate direct employment, other than the game.

-It is true that the dealer authorization for a mega casino will make legally inevitable appearance of the like.

-It is true that a flood of casinos will dethrone the former desert of Vegas as the Mecca of the international game.

-It is true that Miami was not conceived as Vegas and therefore its infrastructure would not support an enormous motor traffic.

-It is true that thousands of jobs will be created that  logically doesn't  exist right now.

-It is true that state revenues will be increased significantly.

-It is not true that Miami would become a major tourist destination. It already is.

-It is not true that the game generates more economic activity. On the contrary, small businesses will disappear and with them the small entrepreneur.
-It is not true that this mega casino can be approved without a final submission to an electoral vote.

BENJAMIN F. DeYURRE

JOB CREATION & DEVALUATION

Published in El Nuevo Herald on October 23, 2011

Among the various mechanisms that can be chosen to stimulate job creation in the U.S., perhaps the most important is the increase in tariffs for manufactured goods in China. Since then, the measure faces a formidable obstacle: more than 95% of these factories are owned by U.S. citizens and, obviously, they will oppose such a measure even if survival is at stake in the country
.
In recent years there has been discussion in Congress that several countries, especially China, deliberately manipulating its currency to keep it undervalued. This deceptive practice makes it stimulates the import of Chinese products.

With a fierce Republican opposition in Congress, has tried to pass a law criminalizing the artificial devaluation. Specifically, Rep. John Boehner, Speaker of the House, said "this legislation exceeds Congress's role and is extremely dangerous." In response, the Democrat Charles Schumer argued: "There is nothing more important for Congress to defend American jobs." The law ended up happening with 225 votes, of which only 61 were Republicans.

On October 4, Sen. Charles Schumer, Democrat of Brooklyn, introduced the bill Currency Exchange Rate Oversight The Reform Act, which among its proposals are: if a nation is accused of keeping its currency undervalued and not set in a period of three months, the tariffs will be increased; prohibits federal procurement of goods and services to those nations; prohibits the Trade Promotion Agency of the United States invest in those countries.

Indeed, if import tariffs significantly increase, you can redefine the domestic manufacturing lead to an increase in employment. We would combat primary labor cost with immigrant labor, which would be compensated by the figure of bonds in lieu of regular wages while processed American citizenship. In this way, we would  face two serious problems: unemployment and illegal immigration. At least it's something we can do.
 





BENJAMIN F DeYURRE
Miami

LUCRATIVE BUSINESS

                                                   
                PUBLISHED IN EL NUEVO HERALD OF MIAMI ON SEPTEMBER 14, 2011

The late fees and reconnection fees are no longer fair warning to consumers and have become a lucrative business. The costs of delay in payments and reconnections are very high, sometimes 30% of the value of service. The question that arises is: What bank charges interest of 30% financing?

What is the cost generated by this reconnection?  We believe that late fees should be collected only by banks or credit cards, and reconnection fees should reflect the same interest rate prevailing in the market, otherwise business would remain a very speculative indeed.

It is common to notice a marked sacrifice in the face of consumers when they line up to pay the reconnection and the high costs of basic services and cell phone, which often is the only means of communication they have and this should be also considered a basic service.

Many monopolic companies have merged and created centers of power to impose prices and conditions at will while hiring influential political lobbies to set the standard of "deaf ear" to many complaints. In addition, the most feasible way of communicating with these companies is phone to make a purchase.  If the call is for other reasons, hardly communication is achieved.

We believe in free enterprise and Democracy, so we a make public call to politicians with real vocation of service to regulate the costs associated with delays in payments and reconnections, especially now in rampant unemployment and economic crisis in full effect.

BENJAMIN F. DeYURRE

Miami

WARREN BUFFETT AN AMERICAN PATRIOT

Published on September 08, 2011 in El Nuevo Herald of Miami

Besides being one of the two richest men in the world, Warren Buffett for his actions, has proven to be a true American Patriot.

The Oracle of Omaha, as it is also known by his financial genius, has published an OP-ED in the newspaper of largest circulation in the U.S. requesting the he should be charged with more taxes. Even, his friend contacted mega-rich, all agreed they are able of paying more taxes to help with the enormous economic crisis plaguing the U.S.

Of course, a claim of this magnitude, destroys the Republican view that the tax increase in the wealthiest sectors, would increase domestic unemployment and capital flight to other countries.

Additionally, Warren Buffet recently invested five billions Dollars in one of the most important banks in America, with many branches and employees. It would have been catastrophic if one of the biggest banks closed its doors, not only for the new thousand of unemployed people, but by the negative expectations that generate more distrust in the U.S. financial system that could led to a “domino effect” thus breaking down other financial institutions that currently show a poor relation Capital – Assets.

As we see, Warren Buffett is not only a multimillionaire but also a man concerned about his country and the actions taken by him are extremely important contributions to the maintenance of our system as we know it today.

Hopefully our politicians can follow this honorable Patriot and stop thinking of their own profits while adopting the necessary measures to safeguard the Economic model of our great country.

BENJAMIN F. DeYURRE

EE.UU. IN BANKRUPTCY ?

Published in El Nuevo Herald on June 30, 2011. (It is one of the first written opinions alerting people about this dangerous situation)

If by August 2 is not reached a bipartisan agreement in Congress, the Treasury Department will  declare the country's inability to pay its debts.
The Republicans insist on reducing current expenditures by $ 2 trillion and not raise taxes on wealthier class. Under these parameters, debt and the deficit will grow further beyond its highest level in the last 60 years. As a macabre solution, the financial geniuses of Wall Street are offering papers with up to five years protection against default.
In practice, the default is translated as a real catastrophe for the economy, that in the beginning could stop paying pensioners and soldiers, and later to health care (Medicaid-Medicare). To make matters worse, investment banks have threatened to stop selling bonds in the market if it came to default.
The former Director of the International Monetary Fund, Dominique Staruss-Kahn, recently accused of rape in New York, had a plan consisting of two types of dollars, one for U.S. domestic consumption and another external with very favorable exchange rate, while taxing the holders of those dollars overseas. So debts will depreciate.

Probably will have to reach an agreement before the August 2 to avoid default. This agreement will provide  raising the debt ceiling above $ 14.3 billion and paying interest payments of $ 250 billion for only six months.
This could affect the U.S. credit rating internationally making even more expensive  this debt financing.
If we want to save our country, the economic model we know today can not continue. Private enterprise has to offer jobs and banks have to offer loans because the sacrifice should be for all of us, like it or not.

BENJAMIN F. DeYURRE
Miami

DEBT & CREDIT

                                          Published in El Nuevo Herald on March 18, 2011

The economic crisis we face in the U.S. for the past three years has, in addition to some supporting actors, two main actors: banks and credit bureaus.
As a result of the housing bubble, many consumers assumed impossible to meet financial commitments once the property returned to a value even smaller than the original. To avoid foreclosure, consumers chose to safeguard all your home, delaying other payments such as automobile and credit cards. This results in a severe penalty of the credit bureaus, which drastically reduced the rating of these consumers, severely limiting their access to new credits.
The banks, following the dictates of the credit bureaus, reduced its portfolio of new loans by 90%. Despite new technologies and a broader financial spectrum, many bank executives came to a fantastic solution: auto given larges bond. This came up with a penalty to charge consumers who cashed a check in their offices and clients who did not maintain a certain minimum balance in their current accounts.

Some bank executives, brazenly, have argued that many customers are now asking for changes to their loans because their home price declined, but when the value of their home has doubled, no customer returned some of their profits to the bank. With this in mind,  is very hard to overcome the crisis.
Politicians should take notice of this matter by legislating for the three major credit bureaus do not penalize consumers who have been affected by the crisis. Instead, they would turn to bank financing for these special cases. Also, the government should increase its guarantee to underwrite the new credits. And it should create an oversight committee to regulate the activity of the entities that rarely collaborate on economic recovery.

BENJAMIN F. DeYURRE

Miami