Summary of the week of March 19th

I have learned what i believe to be a good amount about the economic systems of the world and how they work.     The subject interests me so I have an easier time paying attention to it.  I am regretful that I did not participate twice in the debate not only because that will affect my grade but because it is such an interesting topic.  I feel like I had a hard time participating in the debate though because when people made points about floating or not floating the currency I had trouble wrapping my mind around long term and short term affects.  I feel like if we had the debate now then I would be better prepared for it as I think i understand more of the system now.  I do not think that anyone, even experts, truly understand everything about the economy.  I think that that is the big problem with our economic problems is that no one knows everything about it, and many people do not know enough to do anything about it.   I look forward to learning more about the economy of different areas of the world and how they can be changed for the better.

Week Overview

This week was a very informative week for me.  I have recently started thinking about how the monetary system works because I did not understand where the worth comes from.  All I could determine before is that the money was not backed up by gold.  Knowing that money is only backed by belief I have begun to think that the only reason that this system works is ignorance.  I think that if everyone knew that paper money was not backed up by anything, then the whole system would fall apart.  I am still confused as to why the countries haven't decided to make one currency yet, but maybe it is because competition.  The whole topic of money interest me greatly because, as of now, I want to go into finance in college.  Hopefully I find out exactly why people don't all use the same currency someday, because I feel like that would solve a lot of problems and bring the world a little closer than it already is, kinda.

March 9 Work

Terms

GDP- gross domestic production. Amount of profit made by products being exported. 14.59 is US and 5.93 China, in trillions.

Import- Products bought from outside of the country and taken in. US 227 billion, 122.7 billion

Export- Products shipped out of a country to buyers. US 178 billion, 149.9 billion

Tariff- a tax placed on a good being traded so the economy of the importing country remains the same.

Trade Surplus- extra good left over after a country has exported goods.

Trade Deficit- when a country does not meet the demand of another country who would like to import their products.

Treasury Bond- marketable fixed interest US govt. debt security with a maturity of more than 10 years.

Foreign Direct Investment (FDI)- investment made in a company in a foreign country. CHINA 143 billion.

Budget Deficit- spending more money than you have. US 15.5 trillion, 1.9 trillion

Foreign Currency Reserve- deposits and bonds held by central banks and monetary authorities. US 148.5 billion, China 3181 billion

Currency Exchange- exchange rate of different currency from one system to another. Money can lose value or gain value based on country you are in so money is exchanged to make it easier.

Subsidy (subsidies)- government buys a product so it can be selled at a constant price.

Glogster Poster

http://www.glogster.com/bonettibobby/poster-glog-by-bonettibobby/g-6lmgsorlm28tbebgkl6kva0

Last week. Late though

I learned how America reassured its control in the relationship with China. After being kicked around we finally stood up to them militarily. The relationship with China gets better because the US shows China that they are their equals and not their little slave of sorts. China has more respect for America and businesses prosper. Clinton commands China's respect although he does go back on his promise to not put too much importance in foreign policy.
Sorry this was late. I forgot we had to do it.