KoreanHerald- 130531

S. Korea's fiscal deficit widens in Q1

Read more from: http://www.koreaherald.com/view.php?ud=20130531000259

Summary: South Korea's fiscal deficit is widened during the first quarter of this year, 2013. The central government's total income and expenditure has 14.8 trillion won deficit for the first third months of this year, widening 3.5 trillion won more. Recently, the national assembly approved a 17.3 trillion won extra budget to recover the depression.

Opinion: Growing deficit is caused by slow economic growth.Government should put more efforts to support economic growth by frontloading spending. If we have more deficit, it might lead to economic depression and we would not be able to recover again. I hope Korean economy would jump up!

Relation:  Government taking action with the policies are called fiscal policy. Expansionary fiscal policy is to increase aggregate demand and stimulate the economy, and  Contractionary fiscal policy is to reduce aggregate demand and slow the economy


<Fed's actions>

 -   Expansionary Monetary Policy (Tight Money)
: In recession, Fed increases money supply to increase aggregate demand
: Buy bonds on the open market, lower the reserve requirement, and reduce the discount rate
-      Contactionary Monetary Policy (Easy Money)
: Fed decreases money supply to check aggregate demand and inflation
: Sell bonds on the open market, raise the reserve requirement, and increase the discount rate

CNN News- 130524

South Korea cheating scandal hits university bids

By Dan Rivers, CNN

May 10, 2013 -- Updated 1133 GMT (1933 HKT)

http://edition.cnn.com/2013/05/09/world/asia/south-korea-exam-scandal

Summary: Recently, SAT test had been canceled across the whold of South Korea. Many students felt panic because it was almost the first extreme decision that College board made. It was due to a leak of SAT questions and answers before the tests on January. Many students had to cancel their tests and had to wait for the next SAT. 

Opinion: As a student preparing for SAT in Korea, i feel very bad about Koreans for leaking the questions and answers. Because of some immoral teachers from Seoul SAT academies, many students are having troubles and will going to be harder time getting into American colleges. I hope everyone to be moral so that every student would get to college fairly with equal opportunities.

Relation: It is a big amount of economic loss in Korea. Korea lost its faith and the international students would be harder to get into college. Or the colleges would accept the students who can pay a lot of money. It is like taking away of money from Koreans more and more. Also, Korean students who are paying a lot of money to study for SAT means a big loss to Korean economy. I think we should fix the problem.

CNN News- 130517

Orphaned and homeless: Surviving the streets of North Korea

By Madison Park, CNN

May 14, 2013 -- Updated 1129 GMT (1929 HKT)

read more: http://edition.cnn.com/2013/05/13/world/asia/north-korea-orphans

Summary: The first time Yoon Hee was abandoned, she was an infant. Six months after her birth, her parents divorced and left her in the care of a friend. When she was 8, she had gone back to live with her mother. But she left her again and she was sent into the street. Like the general North Korean children, she had to freeze to death in winters, beg for mercy, pluck grass for food, and cry so hard at night for loneliness and starvation. But in the middle of those situations, she was undeterred- saying "I HAD A HOPE". A U.N. assessment in March found that country's estimated 28 million people, 16 million are chronically deprived of food. Nearly 28% of North Korean children suffer from stunting, according to the U.N. Office for the Coordination of Humanitarian Affair. She determined to leave North Korea and go to South. Two years after her arrival in Seoul, Yoon Hee's days are busy from 8 a.m. to 10 p.m. with studies and a part-time job. She sleeps on the floor inside a pristine wood-paneled room with a white teddy bear, lying next to the other North Korean girls on pink blankets.

Opinion: I appreciate to Yoon He for not giving up the hope and left for what she wants. In North Korea, the unemployment has increased in these days. Those who are unemployed have no place to sleep, live, and eat. Still many people are suffering from the starvation and fight earnestly to survive. I think for North Koreans who came to South, should get job in South Korea and South government should increase the job in order to save North Koreans.

Bloomberg- 130503

Apple Inc.’s sale of bonds this week was the biggest corporate offering on record. Photographer: Krisztian Bocsi/Bloomberg

Apple Avoids $9.2 Billion in Taxes With Debt Deal

By Peter Burrows - May 3, 2013 1:01 PM GMT+0900

read more from :http://www.bloomberg.com/news/2013-05-02/apple-avoids-9-2-billion-in-taxes-with-debt-deal.html


Summary: Apple Incs. avoided $9.2 billion in taxes by financing part of a $55 billion stock buyback with debt, Moody's Investment Services estimated. Based on current rates, Apple should pay interest of about $308 million a year on the $17 billion bond offering. In general, if the funds had come from Apple's offshore cash about $100 billion, iPhone makers did have to pay a 35% tax to repatriate the money. It means that Apple avoided taxes of $9.2 billion. Chief Financial Officer Peter Oppenheimer said on an April 23 conference will be held in order to provide benefits, a reduction cost of capital and an efficient leverage of the balance sheet. 

Opinion: This must be lies! It does not make sense that Apple Incs. has not paid the tax of that big amount of tax. As Apple Incorporation is known as one the biggest and most successful business in the world, they should show respectfulness to the law and be the good model to every business and individual as well. And keeping the law can gain the trust from others. 

Related to Economics: As the demand of the products increase, the incorporation should expect consumer's expectation. The more honest the business be, the more consumers can trust and buy the product from the company.