American Dream Grant and American Dream Accounts

Hillary Clinton has stated that she has a plan for America and a Plan for the Middle Class. She has indicated any speech that she wishes to promote the American Dream Plan. The plan is to make the middle class affordable again. Hillary Clinton's plan does not sound like anything at least in a way she presents the plan that it is not something that the Democratic Party would necessarily subscribe to. Why do I say this?

Because the plan insists that all those receiving benefits from it would have to be responsible. This wording of the word responsible is not something you often see in Democrat giveaways. Is Hillary Clinton taking a chapter out of the Republican playbook in order to become more of a centrist?

One of the items in the plan is to promote scholarship grants and accounts for college or American Dream Grants, which would also give additional credence to attendance. And yet there are already all sorts of scholarships and such. The American Dream Accounts are interesting spin on the power of compounded interest and a smart idea at $500 for each new born and yet that number will need to be $1,000 due to expanding World economy and future inflation.

It is interesting all this pre-election maneuvering and even more interesting the economic issues during peak employment times and good economic growth. Will this political posturing help her and other democrats in the future elections? Perhaps we might all consider all this in 2006.

US Is Committed In Reviving WTO Talks To Improve Global Trade

United States Trade Representative, Susan Schwab said that the US is determined to press ahead with attempts of restarting the World Trade Organization talks that has been completely prostrated last July 24. The meeting held in Geneva, collapsed on Monday suspending five years of worldwide effort to alleviate poverty in developing nations through free global trade. Since 2001, WTO members have argued on how to achieve the goals set at a conference in Doha, Qatar. The main aim of the Doha meeting is to bring the advantages of greater global trade to the world's poorest countries.

Schwab did not give an exact date when the Doha meeting will commence again. She simply stated that the meeting is not yet dead, instead it is just suffering under serious dilemma. She also added that she'll do anything she can to have the meeting achieve a desired conclusion or outcome for the free global trade issue. The US and the European Union have given more market access to the world's impoverished countries, and there was a bright future that the framework for the final deal could possibly be reached by the end of April this year.

However, hopes were bogged down especially in key global trade areas like agriculture. Major agricultural exporters wanted the EU, US, and Japan to open their markets fully through cutting on their farm subsidiaries and tariffs. EU Trade Commissioner Peter Mandela accused the US for inflexibility and for not offering sufficient cuts on its agricultural subsidies. On the other hand, US blamed (EU) that it has failed to equalize concessions about the agricultural subsidies. On the other side of the talks, both union and other developing countries wanted nations such as Brazil and India with growing trade powers, to become more open in accepting imported industrial services and goods.

Business experts said the collapse of the talks will only make the global trade more cumbersome and costly for poor and underdeveloped countries. With companies and governments struggling with separate rules for different countries, the Doha agenda would not have much progress, unless these countries come back and agree on moving forward. Developing nations who are eager to sell their goods overseas missed a good opportunity to intensify economic growth due to the failed meeting. The gap between the EU and the US, according to Schwab, was bitter, and it would likely take a significant amount of time to rouse the meeting.

To salvage the Doha Agenda, Schwab is committed to get a deal done. Also, she's planning to look for ways to revive the said meeting in future conferences of global trade leaders and at the convention that Bush will be attending with Asia Pacific countries. Schwab also announced that she will travel to Brazil and other countries as the first exploratory step towards reviving the WTO's stalled Doha Round trade conference. She also disclosed that she'll be speaking with Mandela in the near future despite the latter's complaints and comments against the US agricultural subsidies. She added that the arguments in the global trade negotiation is not personal.

http://www.tbc-world.com/US_Is_Committed_In_Reviving_WTO_Talks_To_Improve_Global_Trade.asp

Coffee Shop Economics and Foreign-PolicyIt is truly amazing to see what people really think about the war in Iraq and the price of oil in towns and ci

It is truly amazing to see what people really think about the war in Iraq and the price of oil in towns and cities across this nation. Many people simply take and the nightly news and adopt those opinions discussed on television as their own. However, there is a group of people who we should probably call the silent majority who feel otherwise. This group of real Americans is not swayed by the political correctness observed on television.

In fact, when you listen to these people talk you get a whole different perspective of what is going on and what people really think about. They say such things as; This is not right and it is unacceptable. As I sit in coffee shops across the country and meet with people who work for a living and have a family they often say things off-the-cuff that are a little disturbing. One gentleman the other day told me; let's just nuke the Middle East and take the G-darn oil.

Another one told me; $500 billion for Iraq might say they owe us some oil and a lot of it. It appears that people are getting very upset and when Iran threatens to raise the price of oil if we attempt to prevent them from building nuclear weapons to give to international terrorist, folks are just not going to go for that, as they are very upset. They demand their quality of life and that comes first and many of whom are now calling for war if anyone stands in our way. All for the price of oil people are just that angry. Consider this in 2006.

OPEC Pushing Envelope on High Oil Prices and They Know It

OPEC realizes that it is pushing oil prices too high and it also realizes that the world demand is going up and if it does not move quickly to keep prices lower and keep production high then it is obvious that there will be problems down the road for their economies in the Middle East as well as the world's first world economies.

OPEC also realizes that it is pushing the envelope on high oil prices and they realize that if they do not keep these prices lower the new technologies and research and development dollars will be from thrust into the market and propel a future without oil.

We can already see in the United States with the new initiatives for alternative fuels that the bankers and venture capitalists are putting new monies into innovative technologies, which will use alternative fuels, hybrids and propulsion.

If OPEC fails in keeping prices low for sweet crude oil then in the future they stand to lose out. Currently with gasoline prices at three dollars per gallon and oil barrel prices approaching $80 it is quite obvious that biofuels such as Biodiesel and Ethanol are starting to make a lot more sense.

If OPEC is to keep their stranglehold on world markets for energy and fuel then they will need to consider the price point at which they are offering it to the rest of the world. If oil prices get too high and economies stagnate there will be less purchases of oil and they will have shrunk their overall pie for demand.

Indeed this would keep prices high but volumes low and therefore they will make less money in the end. Please consider all this in 2006.

Free Trade Agreement With Oman Disregards Best Interests of U.S.

Free Trade Agreement With Oman Disregards Best Interests of U.S.

Since the United States became a party to the North American Free Trade Agreement (NAFTA) in 1994, U.S. construct of the Foreign Trade Agreement (FTA) has changed considerably. Such agreements now have a much more profound impact on state and local economies across the country.

Generally, treaties with foreign governments were a vehicle for regulating tariffs and quotas relative to the export and import of products, but within the parameters of U.S. law. However, since 1994, FTAs have expanded to include non-tariff barrier issues and regulated under the purview of international law.

Unbeknownst to most of the public regarding the Dubai Ports World agreement with the U.S., approved by the Committee for Foreign Investments in the U.S. (CFIUS) in February 2006, enabling the country of Dubai to take over port operations of six major U.S. east coast ports, was that the U.S. had been in negotiations for a FTA with the United Arab Emirates (UAE) since March 2005. While members of both houses of the U.S. Congress feigned shock that there was such a deal in the works, that FTA in particular provided the backdrop to allow such takeover of U.S. strategic assets, regardless of national security risks.

Since Dubai verbally agreed in March 2006 to sell its rights in the U.S. port operations to a U.S. entity, which to date does not exist in writing, the FTA with the UAE, of which Dubai is one of its seven emirates, has been put on hold. However, a similar deal with the country of Oman, also negotiated since March 2005, was approved by the U.S. Senate on June 28, 2006. The passage of the Oman FTA, still to be ratified by the entirety of the House of Representatives in July 2006, is considered to enable easier passage of several other U.S. FTAs pending, which include Peru, Thailand, Vietnam, as well as the UAE, among several others.

Unlike other federal legislation, however, the FTA is signed by the President prior to ratification, as President Bush did so on January 19, 2006 with the Oman FTA. Unlike most pending legislation, the Oman FTA is under the auspices of the Trade Promotion Authority (TPA). The 2002 Trade Promotion Act allowed for “fast track” status before the Congress which hands over its authority to the President to negotiate the terms of the agreement. The President then hands over to the Congress the finalized legislative package. However, the Congress is not given the right to amend any of the agreement’s provisions but only to take a vote. Also, the Congress must vote upon its passage within 90 days subsequent to its formal submission from President Bush, which was on June 26, 2006.

Yet, due to the complex nature of such an agreement, the rush-to-ratification style lawmaking does little to clarify the voluminous rules and regulations for lawmakers. And passage of such legislation includes irrevocable provisions once the pact is signed. There are arguably three or more major areas of concern with the Oman FTA with the U.S.

At issue are the present labor laws in Oman, its continued boycott of products from Israel and the dispute resolution process which stands to override U.S. national, state and local laws. According to numerous national and international labor rights organizations as well as the AFL-CIO, Oman labor abuse practices are rampant. All workers are denied basic labor rights. They include the inability of workers to organize in order to impact fair wages and safe working conditions as well as humane treatment.

Oman has failed to measure up to the International Trade Organization requirements for fair labor practices. Additionally, 80% of Oman’s laborers are from the South Asian countries of Bangladesh, India and Pakistan, and have no legal rights to demand any changes in labor abuses, as they are foreign nationals. The only stipulation in the agreement is that Oman enforce its own labor laws. Yet, U.S. FTAs with Communist countries or those previously under Communist regimes have far more stringent language concerning labor rights abuses, upon which the U.S. insists. According to U.S. Trade Representative spokesman, Stephen Norton, “We have no reason to suspect that goods made with slave labor would be imported from Oman into the U.S.”

Although Oman assured the U.S. during negotiations that it no longer abides by the Arab League Ban of refusing Israeli imported goods and would disengage from the boycott, such is not the case. Oman’s Directorate of General Customs Mohammed Nasser recently told the Jerusalem Post that “even catalogs of commercial products that mention Israel would likely be seized by Omani authorities.”

And the hot button issue which has not been publicly addressed by the Congress is the potential for U.S. law conflicts under the terms of the U.S.-Oman FTA. Deeply buried in Chapter 11 of the agreement along with Annex 2, establishes that commercial disputes be settled under the realm of International Tribunals. Therefore, commercial activity agreed upon which includes operations of seaports, stevedoring and loading and unloading of goods either by Oman or any foreign entity or country which buys any of Oman’s service contracts or proprietary company interests, would override local, state or national U.S. laws. No distinction is made between commercial interests and those considered strategic national assets of the U.S., with no reference to national security considerations.

The objective of these trade deals, specifically in the Middle East is for the U.S. to garner support with allied nations in the interest of ending terrorism, as is the case with Oman, which is geographically closest to Yemen, Saudi Arabia and the UAE. But it could as easily be argued that the U.S is throwing the proverbial baby out with the bath water in approving such lax controls and oversight in such a vast agreement.

And it also can be argued that such agreements with the third world will put the final nail in the coffin for U.S. workers in the textile industry. They cannot compete with slave wages, nor should they. The U.S. has led the way for workers’ rights and wages and in eliminating child labor. Yet, federal trade agreements without enforcement will only continue to erode away any progress realized for workers not only outside of the U.S. but on its very shores.

While much lower energy costs also remain attractive for U.S. multi-national corporations setting up shop in the third world, it does not excuse the U.S. from making demands in the interest of human decency over strategies to accumulate immediate profits. The waiving of 100% of the tariffs, in this case between goods and services flowing between the U.S. and Oman, does not alleviate such U.S. obligations as fairness and decency, which the U.S. has always represented.

While once the world’s watchdog on human rights, the U.S. has given new meaning to “free” trade in 2006. And it comes at the cost of not only the American worker’s quality of life but predominantly on the backs of those third world workers who remain without the right to take a stand. Worst of all, it is but another example of the flagrant failure of both houses of the Congress to realize the ramifications of its members’ inactions and laziness. For if lawmakers were given a questionnaire on the provisions of this latest U.S.-Oman FTA, rest assured that as many as 90% of them probably would take the Fifth.

Copyright 2006 Diane M. Grassi

Business and Market Overview on Brunei

Business and Market Overview on Brunei

ECONOMY. Brunei's economy is dependent on oil and gas and is the third largest producer of crude oil in Southeast Asia after Indonesia and Malaysia. Brunei is also the world's fourth largest producer of natural gas. Brunei's current oil and gas reserves are sufficient at least until 2015. Thus, Brunei’s government has used its oil wealth for investments outside the country for future generations. Furthermore, the government seeks to develop the country's economy beyond on oil and gas but with little success.

Brunei’s GDP was US$5.2 billion with a GDP per capita of US$13,879 in 2004. The economy grew at an average GDP growth of 3.0% annually from 2000 to 2004 driven mainly by Brunei's export of oil and gas and therefore dependent by world oil and gas prices. Inflation was less than 1.5% in 2000-2001, experience deflation in 2002-2003 but inflation eventually crept at 0.9% in 2004. The government is Brunei's largest employer and many of its citizens prefer to work with the government. The country experienced increasing unemployment from 2002 to 2004 but remained below 5.0%.

The industrial sector (mainly oil and gas related activities) contributed towards 56.1% of Brunei’s GDP in 2004. The service sector contributed towards 40.3% while the agriculture sector contributed only 3.6% during the period. Main industries are petroleum, petroleum refining, liquefied natural gas and construction. Major agriculture products include rice, vegetables, fruits, chicken and eggs.

DEMOGRAPHY. Brunei has a small population of slightly more than 370 thousand. Brunei Malays are the largest ethnic group and account for nearly 70% of population followed by Chinese accounting for 15%. Others include indigenous people and immigrants who have settled in the country. Islam is the official religion of the country and 70% of the population practice the Muslim faith. Other religions include Buddhism, Christianity and indigenous practices. The official language is Malay while Brunei’s Chinese community often used the Chinese language within the community. The population is generally proficient in English since schools teach the language and used in higher education, business and the sciences.

Three quarters or 75% of the population live in the urban areas and mostly work in government services, oil and gas industry, wholesale and retail trade and construction. Major urban areas include the nation's capital Bandar Seri Begawan, Muara, Tutong, Seria and Kuala Belait. Poverty is practically non-existent in the oil rich nation of Brunei. Brunei's GDP per capita is half of Singapore but based on purchasing power parity (PPP) it is slightly less than Singapore. Nearly 70% of the households belong to the middle or high-income categories while the remaining 30% in the lower-income category.

INFRASTRUCTURE. Telecommunication services within the country well developed while reliability of services outside from Brunei is good. Internet access is available throughout many parts of the country but broadband services are limited. Towns well connected by roads and crosses the border into East Malaysia. Country served by single international airport at Bandar Seri Begawan.

INTERNATIONAL TRADE. Major trading partners include Japan, South Korea, Australia, US, Thailand, Indonesia, China, Singapore and Malaysia. Much of the imports from Singapore are Singapore's re-exports from other countries. Major exports include crude oil, natural gas, refined petroleum products. Major imports include machineries and equipments, vehicles and vehicle parts, consumer goods, foods, construction materials and chemicals.

CONSUMER USAGE OF TECHNOLOGY. Nearly all homes in Brunei have fixed-line telephones and the penetration of mobile phones by population was 40% in 2004. Brunei's general population have the financial means to install computers in their homes but the penetration in homes is low at 20%. Penetration of internet users is also low at 9% of the population or 34,000 users. Nevertheless, nearly all homes in Brunei have televisions and refrigerators.

RETAIL MARKET. Marketers into Southeast Asia often neglect Brunei as a potential market because of its small consumer population. However, the country has the second highest GDP per capita in the region after Singapore and depends on imports for nearly all of its consumer goods and foods. The estimated value of Brunei’s retail market in 2004 was US$390 million in 2004 of which foods accounted for nearly US$280 million. The "mom and pop" stores and mini markets dominate the retail industry alongside a few department stores and supermarkets. Consumers in Brunei often shop cross the border into Malaysia for wider choices of consumer goods.

FOOD CULTURE. Foods eaten by the Malays tend to be rice with spicy meat and vegetable dishes. However, the people of Brunei are accustomed to Indian foods due to the numerous small Indian eateries across the country. Thus, homes often serve fish, chicken or beef curry dishes. Popular food service establishments include Chinese, Indonesian, Indian, Thai and Japanese restaurants but interestingly few Malay restaurants. Among the younger generation, many are accustomed to western style foods served by the fast food outlets and bakeries.

America and her Economic Future in the World Economy, a Thought

It appears we are attacking ourselves in the United States and punishing our own team thru over regulation. We need to fix ourselves by becoming better at what we do, better than everyone else in the World. Just because Multi-National Conglomerates cannot make a huge killing over there every quarter is no reason to sacrifice our standard of living here. The European economies would like to be on the same page as us as far as a standardized Euro=Dollar, and that would be great, but not until tariffs disappear so we can make the stuff here too. Also what happens when we change our chess game for a weak dollar and then they restrict our goods to save their corporations and job base there?

We are different cultures and different political whims and the book Future Perfect sounds great, but there is a reality check on many of the notions of this type of game plan. Why choose a plan, have several plays ready to execute, ones which will not affect our middle class and job base. If we concentrate on quality, strength, innovation and have a great economy then entrepreneurs who built America can continue to find funding to explore new fields, and continue to hit milestones like Chuck Yeager did while we watched our technology break the sound barrier. Look at Intel, and Andy Groves vision, protecting our intellectual property and producing smaller, faster and more powerful chips exponentially. Do we need to weaken the dollar for companies like that? NO, we simply sell our wares a little cheaper in those markets, which require us to or we simply do not sell there. Is it the roll of government to decide that for us? By lowering our standard of living until the dollar reaches a lower rate against the other World Currencies? Especially considering that those other currencies are much less stable than ours and those markets may disappear at anytime if they collapse. Then is it up to us and the IMF to bail those economies out, when they fail to listen to reason, pollute the World, steal the money is and bow out gracefully when it is time to return the money? Look at this last round in Russia, 1/3 of the money to clean up the nuclear problem of Chernople, gone. Russian Nuclear Subs of the Arms Race Era docked in a muddy inlet, some on their sides. And the money given to clean it up, where did it go? They built a new fighter jet to compete with our newest. Why, not go clean it up our selves or just forget it? We may as well put to work America factories to build rockets and shoot them into the sun for fun. Or build devices to go on the back of cows to capture the methane to use as fuel to run steam generators to make electricity. Oh you know what? Just think about it yourself, we need a reality check in the real world; not a created reality that is not working.

India: Next Leader of the World

India, officially the Republic of India, is a country in South Asia. It is the seventh-largest country by geographical area, the second most populous country and the largest democracy in the world. India has a coastline of over seven thousand kilometres, and borders Pakistan to the west, Nepal, the People's Republic of China and Bhutan to the north-east, and Bangladesh and Myanmar to the east. In the Indian Ocean, it is adjacent to the island nations of Sri Lanka, Maldives and Indonesia.

Home to the Indus Valley Civilization, a centre of important trade routes and vast empires, India has long played a major role in human history. Hinduism, Sikhism, Buddhism and Jainism, all have their origins in India, while Islam and Christianity enjoy a strong cultural heritage. Colonised as part of the British Empire in the nineteenth century, India gained independence in 1947 as a unified nation after an intense struggle for independence. The country has one of the most diverse populations, wildlife, geographical terrain and climate systems.

INDIA ECONOMY:

The economy of India is the fourth largest in the world as measured by purchasing power parity (PPP), with a GDP of US $3.63 trillion. When measured in USD exchange-rate terms, it is the twelth largest in the world, with a GDP of US $775 billion (2005). India is the second fastest growing major economy in the world, with a GDP growth rate of 8.4%, as of the first quarter of 2006. Wealth distribution in India, a developing country, is fairly uneven, with the top 10% of income groups earning 33% of all income. India's per capita income (PPP) of US$ 3,400 [8] is ranked 122nd in the world.

For most of its independent history, India adhered to a quasi-socialist approach, with strict government control over private sector participation, foreign trade, and foreign direct investment. Starting from 1991, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. Privatisation of public-owned industries and some sectors to private and foreign players has continued amid political debate.

India has a labour force of 496.4 million of which 60% is employed in agriculture or agriculture-related industries, 17% in mainstream industry and 23% in service industries. India's agricultural produce includes rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes. Major industries include textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum and machinery.

India's large English speaking middle-class has contributed to the country's growth in Business Process Outsourcing (BPO). India is also a major exporter of software, financial, research and technology services. India's most important trading partners are the United States, China, UK, Singapore, Hong Kong, the United Arab Emirates, Switzerland and Belgium.

Federal Reserve Tightens Again Due to Inflation

The Federal Reserve has once again stair stepped its tightening of the interest rates and will do it a couple of more times or more depending on the expectation of inflation and other factors and we should expect this. Some considered that the Federal Reserve might tighten 50 basis points and they very well could have, yet there is no sense in sticker shocking the stock market.

The stock market had huge gains of 200 points and this appears to be a sign that it is indeed coming off its re-correction lows and headed back up again. Yet there are still issues to be concerned with. The Treasury Secretary was also confirmed by Congress and things look as if they are under control with the Fed and the gambling casino we call the stock market.

There are still some issues to be addressed however such as increasing oil prices during the 2006 Atlantic Hurricane Season, flooded out refineries in Pennsylvania and the escalation of an Iranian conflict over the manufacturing of nuclear weapons. There are also concerns with housing as there is some debate as too the seriousness and the industry figures being purported in the sector.

All in all things are not so bad on the economic home front. Now all we need is to get those podium pushers to stop spending like a bunch of shop until you drop Prozac induced Christmas Season credit card holders with no limits folks. Consider all this in 2006.