America's debt default averted - Financially Greece is now in a better state!
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Today the U.S. has agreed to increase the level of debt owed per head of population to a staggering $48,000, and avert defaulting on repayment of it's debt, President Barack Obama and congressional leaders announced the agreement on emergency legislation last night, lifting a dark cloud that had threatened to rain down untold damage on a US economic recovery. So rather than default on the national debt which no doubt would have serious ramifications around the world the US has decided to increase it's own overdraft facility. Interestingly the Markets around the world responded positively to the news. The increased debt facility should gives the government enough wriggle room to allow it to function normally until the next general election.
So American debt per head of population is now greater that the $43,000 of Greece and in getting close to double the UK debt of $26,000.
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America's debt default averted - Financially Greece is now in a better state!
Today the U.S. has agreed to increase the level of debt owed per head of population to a staggering $48,000, and avert defaulting on repayment of it's debt, President Barack Obama and congressional leaders announced the agreement on emergency legislation last night, lifting a dark cloud that had threatened to rain down untold damage on a US economic recovery. So rather than default on the national debt which no doubt would have serious ramifications around the world the US has decided to increase it's own overdraft facility. Interestingly the Markets around the world responded positively to the news. The increased debt facility should gives the government enough wriggle room to allow it to function normally until the next general election.
So American debt per head of population is now greater that the $43,000 of Greece and in getting close to double the UK debt of $26,000.
Apple to release OS X Lion a Cash game changer
Mac OS X 10.7 Lion release will set the cat among the pigeons ... but why should you be interested? For the first time Apple will release a new operating system only as a digital download available from it's online app store. Overnight this will dismantle the software reseller market and rebuild a direct sales channel to Apple’s customers. Obviously this will adversely affect companies that used to create and distribute the DVDs for the Operating System. A grave impact could be felt by the business plan of PC World, best buy etc. as software manufacturers make the move to digital download only.
Putting to one side the technical difficulties in deploying a 4gigabit download, from design to delivery no physical touch is required, and the speed of product deployment is vastly improved as postage and packing becomes irrelevant.
More importantly the Cash implications are huge as the lead to Cash has just come down from weeks to minutes. Reseller bad debt has become extinct, and to top it all that Apple will be selling the software with an eye watering profit margin approaching close to 100%, once it recovers it’s development costs, which could happen within days of the release.
The release of OS X Lion is a Cash game changer it should make you stop and think about the way you handle Cash in your Business. Remember, it's all about Finding Cash in Your Business , handling it well and looking for the golden opportunities it creates.
Phone hacking and the real costs
Wimbledon Centre Court Nadal V Murray in the Cash growth Semi Final
Let's look at the financial prize stats to date and see if we can serve up any conclusions on the outcome of the match (Wimbledon 2011) Andy Murray has played 391 Career tennis matches of those he has won 289 and lost 102 and in the process has earned himself $16million USD that works out at an average of $41,000 for each game played. Rafael Nadal has played 625 Career tennis matches of those he has won 517 and lost 108 and in the process has earned himself $42million USD that works out at an average of $67,000 for each game played.
The Greek Tragedy
The Greek government employs 1/3 of the population. It has the highest budget deficit in the EU. In monetary terms it spends approx. $45Billion per annum more than it raises in taxes, and it's debt mountain stands at about $544 billion. A new loan package of a further circa 120 billion euro over three years is currently being considered by the IMF. So not surprisingly any additional loans come with very strong caveats. O n 13 June 2011, Standard and Poors lowered the Greek sovereign debt credit rating to "CCC', which means: vulnerable, dependent on current economic situation!
If the outstanding debt is restructured delaying repayment further the credit agencies will rate the Greek government bonds as Junk, which means that the lenders are not expected to get anything like the face value back. It's all very well getting a loan but t he debt problem has not gone away, the deficit has not gone away and in fact the problem has now been compounded with high interest payments.
The next few weeks will be critical to the future of the eurozone. H ere are some potential consequences of the a Greek sovereign debt default. The so called PIIGS (Portugal, Ireland, Italy, Greece, Spain) will struggle to raise any additional funding at favourable rates. A number of banks including the bank of Cypress could go bust, "flag of convenience" shipping and holidaying in Greece could become much cheaper.
But here is the billion dollar question "why are the eurozone heavy weights like Germany and France not throwing themselves behind more loans to Greece at more favourable rates?" Could it be that the eurozone has reached the tipping point, and it is now better for the eurozone if Greece just slipped away? Ask yourself the question how long could you run a business in deficit? The key to surviving the global credit crunch is to look for cash in your Business, find it, handle it well and look for the golden opportunities it creates. Finding Cash in Your Business