money Archives - Economics in relatividad.org

Comparing 20 years of stocks, oil, pension plans, housing and gold

Let's see a comparison of 20 investment products, analyzing its evolution during the last 20 years, that is, from July 1990 to July 2010. The comparison is very interesting coming out as the winner the investment in oil with an annual profit of 7,09% and as a loser the investment in the Japanese stock market with an annual loss of 5,72%. See the summary:

MAIN ASSETS
Profitability
Brent
7,09%
Emerging RV
7,02%
RV Spain
6,76%
RV USA
6,61%
RF credits USA
6,21%
RV Germany
5,99%
Gold
5,94%
RF rental eurozone
5,90%
Mixed RV pension plan
5,72%
Spanish housing
5,32%
RF pension plan credits
5,26%
Mixed RF pension plan
5,11%
RF p USA
5,03%
RF p eurozone
5,03%
Plan pension RF p
4,96%
RV United Kingdom
4,10%
Inflation in Spain
3,37%
RV France
3,13%
RV pension plan
2,17%
RV Japan
-5,72%

Annualized data (evolución Julio 1990 –; Julio 2010)

About productivity in Spain and other European countries

En Cotizalia  ; Kike Vázquez delights us with a post about productivity, that I liked so much that I'll copy it here:

I do not know if you happen to everyone but to me that about productivity that is talked so much not just stay clear to me. They say that we are working little, that we are lazy, that we have to lower our salary by 25% to start being competitive or "to work a little more and earn a little less" according to other sources. Go, well, we are so cheeky the Spaniards?! Fortunately, they warn, because to today I went out with confidence into the street without fear of being extorted by any of these hazardous man…

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The destruction of money and the crisis

The money can be created, as I indicated, and can be destroyed. I do not mean to burn banknotes. Merely to repay a loan is a destruction of the virtual money involving own debt. If I sign a promissory note and others used this promissory note as payment, the promissory note is money. If I cancel the debt of the promissory note, the promissory note ceases to exist, the money disappears from circulation. Both money existed in the time before my payment, the promissory note and my money, and when cancelled it ceases to exist the promissory note. Destruction of money.

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The Money and money creation

MONEY AND MONEY CREATION (How to do)

Money in today's world is pretty confusing. It is not gold. It is not even a right to you receive gold. It is simply "buying power". Whether it is a paper-currency or a point in your bank account, what it represents is your purchasing power.

Why central banks are so obsessed by inflation. Its primary mission has become to get that the money in circulation remains reasonably its purchasing power. If there is high inflation, then the purchasing power of our money decreases rapidly and the money ceases to have value; and everyone is looking for an alternative, other currency, property, gold, whatever that were not loosing "purchasing power" in the market.

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