I wanted to do these a few weeks ago. This is something I came up with while reading some online news. My aim on this one is to correct my belief on what’s with the news, the way it was written, to challenge the published article on the web and give my opinion on the subject. So here I go. Wish me luck in this one as this is my first time to do this and the article I have chosen is about CNN’s published article about “These big economies suffered self-inflicted wounds in 2016”.
The article discussed the three countries whereas two of them, (the United Kingdom and Italy) were member of the famed “the Group of Seven” or simply the G7, classified as the countries with the greatest economies around the world. The other country being also a major force in Asia ~ India.
The title speaks for itself. It was about those three countries who have taken serious financial policy that worsen their economic stand throughout the world. Let’s start with the United Kingdom.
The famous and trending topic that shocked the world was the “Brexit” or the Britain Exit. It was their decision to ditch the Euro and get back on their well-known currency, the pound. Going back when I was in high school, I remember back then that the value of the UK pound was the second highest currency around the world. Yes, higher than the dollar, but now, they’ve lost their charm. Because of their decision to leave the European Union, they have struggled to get business partners around the world that inflation hit them hard. This was the country that I loved to go to when I was young but now, I have to think twice because I have to consider heavily the cost of living even in a vacation. I wonder how the life there is now that they are bringing up the pound in circulation immediately. We, in the Philippines took five long years just to change bills and our Central Bank is still struggling to have around 2 billion of bills still in circulation that shouldn’t be around. Whereas them, they put in the pound in circulation immediately. I wish them really big luck in circulating it and get through the inflation.
The next one is India, come on! the major move that they have done was to change bank notes. It was a bold move to battle counterfeit currency and tax evasion but it was done dramatically that even normal people was affected. I have seen some Facebook posts whereby an Indian citizen is enraged by the drastic move to get his hands on those new bank notes. They started the year right economically but because of this sudden move, their growth projection gets affected. What happens when growth projection is affected? Well, you would lose potential investors and even loyal investors would hold on to their money rather than bringing it in circulation to let their money work for them. There will be sudden loss of jobs, increased cost of living and even higher poverty.
Lastly we go to Italy, people have reacted and proposed a bailout or rather a total protest against the policies imposed by Prime Minister Matteo Renzi. The people succeeded in their protest and even had their leader resigned the next day after an overwhelming number of votes against his policies. Investors became nervous that they do not want the oldest bank ~ Monte dei Paschi di Siena to have their money. Having nervous investors is such a serious problems these days. Whenever they are not certain on how the things will work, they would not simply give out their money even though the returns are higher because it’s too risky. Common sense will dictate that if an unstable economy might go in your favor or against your favor because you are not certain on how the people in the economy would behave with the changes that are bound to happen. With the vacancy of their leader, there are no known methods as to how their country will run, thus, Investors are holding their money. I just do wish that they elect a leader the soonest.
And that’s it for now. I’m sorry if this was the topic I have chosen. This was something that caught my attention and all I am giving here are my opinion. If ever you had some news you want me to write on. Kindly send the link through the comments section. Have a good day ahead! Let’s get it on!