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

TECHNOLOGICAL UNEMPLOYMENT

                                  Published in El Nuevo Herald on February 08, 2011


According to French chemist Antoine Lovoisier, no material is destroyed only transformed. We may apply this theory to the problem of unemployment in the U.S. today only to face a serious drawback: the jobs that have been displaced by technological advancements can not find where to relocate them. Technology simply making great fortunes grow but unemployment and poverty are increasing. Under these circumstances the question arises as to, How we are going to sustain our economic model ? The following examples illustrate this situation:

-The use of technology in tolls has accelerated the circulation of automobiles but has laid off thousands of workers nationwide.
-The technology online and ATM banking processes have been streamlined but have eliminated thousands of positions in this field.
-Software for declaring taxes have provided useful to the taxpayers but have severely limited the practice of certified public accountant.
-The widespread use of electronic mail has revolutionized communications but has laid off thousands of letter carriers and postal workers.
-The presence of Stockbrokers on the Internet has increased the income of this sector but has eliminated the manual labor of thousands of workers.
-The online edition of the newspapers has improved the information but has forced employers to lay off thousands of workers.

After seeing these eloquent examples is to ask us if whether we should regulate the technology. Obviously yes because otherwise it will destroy us.

FREE IMMIGRATION AGREEMENT

                            Published in El Nuevo Herald on December 28, 2010

In light of the continuing controversy over illegal immigration, the most sensible idea about illegal immigrants currently living in the United States is to integrate them into the production process. U.S. companies which relocate its manufacturing again on American soil, will be able to recruit this competitive workforce, which will be compensated under the bond given in replacement of regular salary. These immigrants in turn, after five years of uninterrupted work, may apply for permanent residency and then citizenship. This is a primary and a basic solution that aims to combat unemployment by encouraging domestic manufacturing, while regulating the unauthorized immigration.
However, authorized immigration could be regulated effectively by the creation of free immigration agreements in the same way that free trade agreements exist. The same rationale would apply for immigration. That is, the treaty would be negotiated with countries that share our basic values ​​of law and democracy, and where is  not expected a stampede of immigration in the medium term. Migrants between the countries signatories of the agreement would have the rights of permanent residents but  retaining their original citizenship.
When you make a trade between two countries generally pursued mutual benefit. In the case of an immigration treaty, several studies have shown that the free movement of people among countries usually contributes to greater prosperity when that movement is controlled.
Specifically, in the U.S. case, a free immigration would benefit from joint trade agreements since it would stimulate the transit of U.S. citizens to other countries.
Many strategies can be thought and some actions can be taken, but certainly something we have to do in the short term to legislate and implement real solutions immigration voting.

Economy and the DREAM Act

                  Published in El Nuevo Herald on December 07, 2010

According to a recent study by the University of California, Los Angeles, the passage of the DREAM Act will reduce the U.S. deficit $ 1.4 billion and increase government revenues by $ 2.3 billion over the next ten years. The study also predicts that students benefit from the DREAM Act in their careers will generate taxable gross income by a large value of between $ 1.4 and $ 3.6 trillion.
It is clear that under current economic circumstances facing the country, the DREAM Act appears to be a relief. However, it would be important to know the cost on health care, education, police and fire services incurred by the immigrants before they reach the status promised by the DREAM Act. Whatever be the cost of the considerable expense and based on the study before mentioned, it would seem logical to think that the Dream Act would overcome this cost because of the revenue expected.
Given the seriousness of the economic crisis facing the U.S., where the lack of domestic manufacturing jobs creation are limited only to the services sector, and even threatening the stability of the dollar on the world market, a type of action as The DREAM Act is justified, at least in the present. Of course, other studies have to be done to the near future.

URGENT MEASURES TO REACTIVATE THE ECONOMY IN EEUU

Published in El Nuevo Herald on Novembre 04, 2009

Personal credit reactivation, mortgage installments prolongation and employment of migrant labour are three key factors for the economic reactivacion in the medium run.

Indeed, in a country where most of the purchases of movable and immovable property are made to credit, is essential to have a credit system that really works. In this sense, it is important that the three credit bureaus not evaluated payment mistakes caused by the crisis in the last two years. They can instead establish a parallel table where to stay this record for legal purposes, but not affect the granting of new credits.
The adoption of hereditary mortgages to 80 years term, where the grandchildren of a couple end up paying the acquisition of a property is necessary to revive the economy. One of the factors with the most dynamic mode of capitalist production is the construction. So, in order she doesn't continue stagnant, buyers are essential to encourage its offer. Certainly, with deadlines for 80 years, the monthly payments of houses would have an average of approximately $450.00 per month and down payment would be minimum. Elderly people or those unable to have descendants, won't be affected because they also would be considered for this type of acquisition, while making his modest mortgage payment. Of course, this important measure should regulate its settings, as a first requirement, a unique first compulsory marriage  for applicants who must reside in United States. These requirements will fight merchants who could have many divorces or those who living overseas and pretending renting his property for a lot of money.

Immigrants make up a very important part of the economy.  They contribute with his not 'census'

 effort, to the gross national product. At the same time, they consume resources such as health, education, police and firefighters, therefore it is necessary to integrate them in a legal way to the production process. And how more sensible than is offering its workforce to American companies who decide to relocate back on u.s. soil. The immigrant do its part, have right of residence five continuous years of work and the citizenship later. Companies would have trade-off tax return to American territory.
If there is a reopening of the personal credit together with new modalities of mortgages and employment of immigrant with mentioning security workforce, a booming market which will demand more goods and services, and thus encourage the formation of saving and investment which finally will lead to increase employment.
Without a doubt, it is extremely important to take these and other measures to ensure the permanence of our economic system. That would be fatal is no action is taken and just the partisan struggle is continuing.

BENJAMIN F. DeYURRE
Miami

HOW IS SURVIVING THE ECONOMY IN EEUU

Published in El Nuevo Herald on January 29, 2010

In a country where economic indicators do not grow, an increase in income of the majority of large American companies is given by a factor not tabulated but very real: stolen from others.

In a healthy and growing Economy, an increase in revenues is mainly due to an increase in production, productivity, sales, exports, or the overall demand for goods and services. Since this is not the present case of United States, the change more important perceived in the country is an increase in consumer prices and taxes.
Basic services like power and water are increased frequently. Surcharges for alleged arrears on mortgages and credit cards comprise the most extraordinary revenue of these companies. The law firms swarm everywhere doing a party with despair of the public. Insurance companies cancelling and imposing prices on policies at will.
Because of all this, the public insists on making telephone calls to those companies. In many cases they fails because automated systems  are configured so that the consumer not achieve its objective. When finally the company is contacted, the phone call, if not hanged, is transferred to multiple extensions until you "see" the appropriate employee since the first served, did it in another country.
If we do not take urgent measures to allow United States recover its domestic manufacturing path  and reduce the deficit in its trade balance increasing national exports, a catastrophical crisis could whip to the country and topple the dollar as a global currency sign.
Measures should be taken on an emergency basis without waiting for the creation of parliamentary committees or bright political dissertations.


BENJAMIN F. DeYURRE
             Miami