Figures have just been released in the United Kingdom for the retail industry and the closures that happened in 2012.
In 2012 the number of retail businesses that closed were up 6% from the previous year.
Many economists believe that 2013 will be another tough year.
The numbers that went into administration
194 retailers last year.
This compares to 183 in 2011
It is an 18% rise on the 165 in 2010.
Names such as Comet, Clinton Cards, Game and JJB Sports were some of the big names.
The closure would have affected thousands of jobs. The retail sector employs 1,000,000 plus people but job creation will continue and employment opportunities are always being created. Work is available but it the cost of living that keeps increasing, so the outcome is a continuation of tough times for people and businesses. Companies from many industries have money to invest but the worry of Europe and the debt crisis in the USA, stops investments and job creation. Businesses are looking at ways to reduce costs and increase online exposure to generate new growth and profits.
Retail winners
John Lewis in the UK said like-for-like sales rose by 13% in the five weeks to December 29 compared to 2011.
They had record sales of £158m in the week leading up to Christmas,
This is the first time that sales have broken the £150m mark and record sales of £31.7m in the sales on December 27.
Online sales rose 44.3pc and now account for a quarter of group sales, thus showing the way forward for all businesses.
Online sales for businesses
The problem a business will face in making money online is they need to be found. The battle to be indexed in Google page results is a costly and time consuming effort.New businesses are being created to help with this as having your company on a list does not guarantee you will be chosen. Advertising and marketing costs are huge and small businesses need alternative methods to capture customers and drive traffic to the service they offer. If businesses can win customers from online trading, the result can be jobs being created. Moving away from the costs of operating on the ground and employing people in an online section of a retailers business, can be a solution.
The obvious answer is…Everything will change and the USA will never have the same image again
A default would have some “pretty serious ramifications” for the US economy and, because the US is still 20 per cent of world GDP, it would be terrible for a lot of other countries as well. With Europe in the middle of a huge crisis the knock on effect could be disastrous. The UK is struggling along with many other nations but the biggest economy in the world hitting the wall again….Disaster or just longer pain?
We will see higher interest rates and potential destabilization in financial markets, higher taxes, lower incomes, less money in the economy, market crashes, job losses, families suffering and much much more.
The question is what will happen to the relationships with the creditors that the US government owes so much to. China, Saudi Arabia and others are owed trillions of dollars by the American government.
What will happen if the debts and interest are not paid?
What happens if a country like the USA defaults on the bills and payments they owe to others?
We all know the consequences for the individual. For more information on this view the previous article I wrote.
How much is the debt?
$16,000,000,000,000 and growing!
Who does the USA owe money to?
A default will change the way the world looks at the once safe US economy. It will make Treasury bills more expensive over time and interest rates higher.
Many US businesses would face downgrades and that would lead to higher costs of capital. This would lead to less job creation and less investments in American companies and the economy as a whole.
The Federal reserve will serve notice on the government that the account they have is in overdraft and this is a violation of the Federal Reserve Act.
With Congress not allowing the government to borrow more, usual payments like social security could not be made. Social meltdown is on the way.
Even if the issue is resolved, most government services, programs and benefits will take a devastating hit.
Potentially the first assets to be affected after a default would be money-market funds that hold government securities.
Banks that buy bonds directly from the Reserve and resell them to consumers, including pension and mutual funds.
Foreign investors, which holds nearly half of all Treasury securities(China hold 50%of all US Treasury securities) could start dumping them.
The US dollar would be hit and the currency regarded by most as the reserve currency of the world, would no longer be the safe investment it once was. If other central banks start selling off the green backs , the value keeps dropping but what is the alternative some ask…The Euro? Will gold go higher?
If the dollar is worth less it will mean the cost of buying American goods becomes cheaper. The reverse side is it will cost an awful lot more for Americans to buy goods. Commodity prices are sure to take a hit.
China could become the real world leader and other currencies will become the new reserve currency of the world.
China and other countries will have an even stronger hold on the US government and even today they could cause a crash by dumping treasuries. Russia is also a player in this game and the Us government needs to be very careful as certain scenarios are too horrific to think about.
The answer to the question is difficult to know. What is known the image of America will change forever more. The greatest economy in the world is run on debt and the people will be the ones that suffer the most.
Creditors will negotiate new deals and will take haircuts in order to gain anything. If you owe a bank money and cannot pay, they will take what they can get and then kick you to the curb…will the United States of America be thrown away…No, but it will take the hit and in time ( along time) through a lot of pain rise again. The reason I believe this is simple…The citizens of the US have fought all of time and were formed through revolution. This is a new chapter, a new revolution is about to start but this we hope will end up with a positive outcome.
Apocalyptic ideas are not even worth talking about as these will affect every person on the planet. Many economists will always tell you that wars are a great diversion and a means to solve many economic problems. From war comes rebuilding and the chance to eradicate certain issues…this is a doomsday scenario but history shows huge growth after terrible events. Now I am not an expert on any of these fiscal issues and no single person can really answer what will happen if debts are not paid but we all know it will not be good for anyone. The world is global and every country is interlinked in some way. A hiccup in a small country these days can affect many other countries. Therefore the thought of this hiccup being in the USA paints a terrible picture in most people’s minds. Raising the debt ceiling does not fix the problem but it blocks that terrible outcomes that might happen worldwide.
As we near the New Year we can only hope for a positive outcome even though this affects every American. Business will continue and life will go on. We will keep building our business and hope to launch a company that can create jobs and help other businesses worldwide.
Fiscal Cliff Tax Hikes , less money in your pocket and a disaster for business and jobs
Here are some comments collected from around the web about the possibilities from a negative outcome to the fiscal situation in the USA. America is facing tough times and even if this is sorted out, it is only a short term financial solution. Most economist agree that the economical situation will not be solved just delayed until a new stop gap measure is created. The facts are the US is in debt and this needs to be paid, if not what is the solution?
30 million Americans will be damaged in some way..the reality is, all will suffer.
Your Income Tax Rates Will Go Up The expiration of the Bush-era tax cuts on Dec. 31 means nearly every American taxpayer will see their rates go up to levels of almost a decade ago
Paychecks Will Be Smaller after the Social Security payroll tax holiday expires on Dec. 31, raising the rate from 4.2 to 6.2 percent.
Tax Refunds Will Be Delayedby the Inland Revenue, this will effect your income and money levels that you require to control daily expenditure
You Cannot Collect Extended Unemploymentand this will have a disastrous effect on business, incomes, support structures, charities and more…
The cost of goods will be rising, a gallon of milk could double to $6…so once again your money will buy you less.
The child tax credit will be reduced…Your children Will Cost You More Money and your income will buy you less.
How to find a job?…A New Job Will Be More Difficult to find, employment opportunities will decrease, careers will be difficult to find.Job creation and the chance to work , even finding job vacancies will be difficult.
Stock markets and your shares could crash leaving you short and a more difficult future on the horizon…this in itself will affect jobs, businesses and financial systems worldwide.
Medicare,..It Will Be Harder To Find A Doctor to help you, if it was not difficult enough already and the cost will soar for many.
Obamacare…High Earners Will Pay New Taxes to pay for this, leaving them less money and putting their finances under threat. Money will be spent on basic requirements and businesses will then suffer from the lack of cash and dollars in the market place.
Recent updates…
US President Barack Obama has used a last-ditch White House meeting to urge Congress to back an interim plan to avoid the “fiscal cliff”, reports say.
He reportedly asked Republican and Democratic leaders to back tax cuts for those earning under $250,000.
They have only four days to reach an agreement before across-the-board tax rises and spending cuts take effect.
Analysts say sliding over the “cliff” could tip the US into recession and set back the global economic recovery.
Why does it matter?
Analysts paint a grim picture of the US economy, The situation is so bad it could make the Euro zone crisis seem insignificant.
“The US fiscal cliff represents the single biggest near-term threat to a global economic recovery,” the Fitch ratings agency said recently.
“The dramatic fiscal tightening implied by the fiscal cliff could tip the US and possibly the global economy into recession
Global growth rates will halve in 2013 is the latest prediction
The IMF warns that job creation and peoples money will be trashed.Growth rates could drop by 4% and thus effect the markets and growth of all other countries around the world
How will people in the US suffer?
Money losses… $550,000,000,000 will be sucked out of the economy. Imagine how the markets will deal with this money loss and how many jobs will be lost. Your local businesses and local areas, your community, family, children…..
The average yearly tax bill for each American would rise by $3,500 on average. Can the average American deal with losing $300 a month and the knock on consequences are huge
The super-rich face a tax rise of $121,000 approx a year.
Lowest earners will see an increase of about $420
For the middle income earners which is the largest proportion of the Us economy the average rise will be around $2,000.
If things go wrong , we are a small business that will do its part in helping reduce the costs to business…let’s all hope the short term problem is fixed as at the end of the day it is the people that will suffer
Jobs are not being created, employment figures are negative.
The government of the UK is under attack. Recent figures show the flagship job scheme is not working. The flagship scheme was to have 5.5 billion poured into it.Targets were to be 5.5% into long term employment. The results of job creation on a long term basis were 3.35%.Opposition parties are stating that if they had done nothing the figures would have been the same , so the money being wasted is incredible.The government want at least another year to prove the scheme is working. Is this another example of failed policies and kicking the “can” down the road?
However, the question of the effects on the future of unemployed and future job seekers needs to be addressed.
The question of long term unemployment has to be covered.
This week George Osbourne had stated that the UK could be in recession for another 5 years.
Mervyn King has warned the new governor that he has years of trouble ahead of him.
If this is the case and growth does not happen, what will be the lasting affects on those already out of work and those that will join them.
The consequences of long term unemployment are disastrous on individuals and communities.
With a massive lack of finance and no inward investment into new business creation, the situation seems doomed to many. Recent polls show that the majority of the population are highly negative about the future. The situation is the same in many other countries with 77% of Americans concerned about the consequences off the “fiscal cliff”.Barack Obama has a huge job on his hands. The infighting between republicans and democrats needs to be settled for the future of the USA.
Now add this to the equation..
Reports today that over 2 million children are not receiving a proper education and the costs of further education are rising…the picture is grim.
If you take a society that has few opportunities, children not gaining the education they need and schemes in place not working….where will we be in 12 months time.
Children leaving schools without skills leaves a society that not only has no jobs but the unemployed are not able to fill the jobs that are there.
Will it be a case of foreigners coming to the UK to fill skilled positions. Will that lead to money leaving the UK and supporting the growth of other economies.
The questions and possible outcomes are endless but the situation needs action and drastic action at that.
I could go on with other factors like Greece not having to pay back all the loans they received. What happens to the loans that the UK has given to others? Is this going to be less revenue for the Treasury? Tax avoidance from individuals and companies operating in the UK..less revenue???
We need action and what that is I do not know.
The situation is desperate and people need to react and put pressure on the politicians who are not fixing this recession and economical nightmare. Our future is in our hands but only if we voice our opinions. So start SHOUTING!!!
American businesses are sitting on huge amounts of cash but are unwilling to spend this due to the political uncertainty.
Can congress come up with a solution to the fiscal cliff crisis.
Is it not peculiar that after the USA voted to return Obama to power, this debate continues. The problem has to be resolved and the people of America voted to give President Barack Obama another chance.
Recent polls are showing 77% of Americans believe this economic situation is having a negative effect on them and are very concerned about the near future.They believe the fiscal cliff issue is a big problem and concern is growing.
If businesses have confidence they will invest in growth and therefore job creation but this is about politics and the elected need to deal with this NOW1
‘Fiscal cliff’: Consensus on increasing tax revenue, a wide gulf on how to do it: “For the first time in decades, a bipartisan consensus has emerged in Washington to raise taxes. But negotiators working to avert the year-end fiscal cliff remain far apart on crucial details, including how taxes should go up and who should pay more. . .Neither side gave ground in an opening round of staff-level talks last week at the Capitol. As President Obama and congressional leaders prepare for a second face-to-face meeting as soon as this week, the divide over taxes presents the biggest obstacle to replacing the heap of abrupt tax hikes and spending cuts, set to hit in January, with a less-traumatic debt-reduction plan.”….read more… (Washington Post)
NBC NEWS
Good news, bad news in averting the fiscal cliff… A potential compromise?… More GOPers say they’re willing to break Norquist’s tax pledge… Team Obama gets its cease fire in Gaza… McCain softens his criticism of Susan Rice… And Shelley Moore Capito and the potential 2014 retirees.
By Chuck Todd, Mark Murray, Domenico Montanaro, and Brooke Brower
*** Good news, bad news in averting the fiscal cliff: With Congress returning from its Thanksgiving break, here’s the good news for those looking to avoid the upcoming so-called “fiscal cliff”: Members of both parties do agree on one LARGE point — taxes for the wealthy should go up. “It’s fair to ask my party to put revenue on the table. We’re below historic averages,” Sen. Lindsey Graham (R) said on ABC yesterday, adding: “But to do this, I just don’t want to promise the spending cuts. I want entitlement reforms.” And, as it turns out, some Democrats are willing to look at some entitlement reform. “We can make meaningful reforms in Medicare and Medicaid without compromising the integrity of the program, making sure that the beneficiaries are not paying the price for it, except perhaps the high-income beneficiaries. That to me is a reasonable approach,” Sen. Dick Durbin explained on ABC… But here’s the bad news: The two sides can’t agree on how to raise the taxes on the wealthiest. Democrats are adamant that the Bush tax cuts must expire for them (which would raise their tax rate), while Republicans insist that rates can’t increase….read more…http://firstread.nbcnews.com/_news/2012/11/26/15454203-first-thoughts-good-news-bad-news-in-averting-the-fiscal-cliff?lite
Welcome to our new world…If you did not realize already!
I have been negative for many months now but it is a fact and their is not enough being done to change our path.
We will keep reporting stories on the negative future we are creating until people start to react and do something about it.
We have the power and must use it in every way we can because if you think this is the most negative it will be…you are wrong.
How will it turn around?
How will unemployment turn into employment
How will Greece pay the debt and start growing?
How will the USA pay off trillions without hurting millions of people?
How will the thousands of questions we have be answered and at what cost?
BBC report……
The chancellor may have to extend the squeeze on public spending until 2018 if the recent deterioration in growth prospects and tax receipts turns out to be permanent, a think tank has said.
This like many other reports show a simple scenario…we are sep in the **** and this journey is going to be very long.
Talks in Europe, fiscal cliffs in America, in fighting in Europe and in the Uk, Republicans fighting democrats….the list goes on and in the meantime we suffer.
Spain‘s unemployment is rising, France is being downgraded and new stories of a worsening situation keep hitting the news….
Growth can only be achieved through us the people and it is time to force our countries and politicians to help us …the masses. We want promises of finance to be easily available and regulations to open up opportunities to actually happen.
We at Zynkin will do our part in creating an alternative for businesses but this is 0.0000001% of what needs to be done…it is YOU that makes change happen.
Bloggers take the power you have and help force change…help build a better future and do it today
A recent news report on Sky News alarmed me.A recent attack on my company prior to even launching bothered me (not defeat ) me.
In the election in the USA , the amount of data that is being collected by each campaign is terrifying …What is secure these days?
The apps that have been created show who lives in a particular house, with added information on them.
Does this not leave the occupant of that property open for abuse and pose them a security issue.
For example ,”a single woman” …what could this information be used for. I can think of terrible consequences.
What other data is collected and how is it used?,…who can get their hands on this?….how secure is it?
Are the people collecting the data secure?
The world we live in is obvious…open and totally insecure. We have no control anymore and we are totally vulnerable to anyone that wants to attack us.
The recent report about George Osbourne demanding more money being invested in preventing cyber attacks, opens up a different question. What are you doing to protect the privacy of your voters.
Running my own business , I have to add a privacy policy and security policy. I have to do the best I can to protect any users. This is paramount to me but in this world is it really possible to protect anything?
Presidential candidates Obama and Romney have staff on the news saying it is amazing how much data they collect. Is this really what the voters want. Is this not showing a society where government advocate the collection of private information. Use it to your advantage ,we are!!!!
On a business front you are told to share,comment ,review and spread your name worldwide…the consequences can be great but also incredibly negative…Beware what can happen as I have witnessed first hand.
You are now open for attack! Thick skin is the only defence you really have as it will never stop and you must not let it ruin your life.I as abusiness man believe in what I am doing and if others agree,great!. If some read these other reports that are not true and choose to believe them, then their is nothing I can do.
I hope by writing this article people start to question the laws that are meant to protect us. In the age of analytics,tracking and customer habits…we should be demanding our politicians to stop leading by example and start questioning the consequences of what they are advocating.
A global world is a good thing if it still gives people the protection that they as individuals want. Let people have a life to control,enjoy and prosper in. Let people live! Will some people say that by having all information public is a good thing? This could be the case with certain subjects that warn people of potential dangers but I revert back to the App being used for a presidential election…Is this information really necessary for the whole world to know?
I by writing this,my other blogs and my website ….Guilty of doing the same.Welcome to the new world of information sharing at any consequence.
Follow http://www.zynkinmarketing another site that markets information as will my business with as many limitations as possible….I know! I write about this but have a business based on it ( well a little bit)
European Central Bank Executive Board Member Joerg Asmussen said countries sharing the euro must pursue reforms as the “current calm” on financial markets is “deceptive.”
“Our announcement that we’d do everything to save the euro contributed to a calming of the markets,” Asmussen said in an interview with Germany’s Bild am Sonntag published today. “But that will not be sufficient. The current calm is deceptive.”
Asmussen said many of his colleagues agree with his stance of only allowing the ECB to purchase sovereign bonds if states agree to conditions. When asked by the Berlin-based newspaper if a majority of his colleagues are of that opinion, Asmussen said “we’ll see if that situation arises.”
While the sovereign debt crisis is under control after efforts made over the last two years, European Union leaders must develop a vision for the bloc at summits this month and in December to attract bond investors, Asmussen said.
Mario Draghi is “the best president the ECB could have in the current situation” and recent criticism of him in Germany isn’t appropriate, the newspaper cited Asmussen as saying.
Asmussen said the ECB can’t assist Greece by extending the maturities of its holdings of the state’s bonds or lowering interest on the debt. The country’s request for more time to implement austerity measures necessarily means more aid as its spending outstrips revenue, he said.
The ECB expects inflation to decline to less than 2 percent next year and the central bank “will continue to guarantee the stability of the common currency,” Asmussen said.
* Obama leads Romney 47 percent to 45 percent* Romney post-debate ‘bump’ solidifies* 84 percent say “definitely” decided on their candidateBy Alina Selyukh
WASHINGTON, Oct 7 (Reuters) – Republican presidential candidate Mitt Romney stayed within striking distance of President Barack Obama in a Reuters/Ipsos poll on Sunday, two-points behind the Democrat for the third straight day after winning last week’s debate in Denver.
The online survey found 47 percent of likely voters saying they would vote for Obama and 45 percent for Romney if the Nov. 6 election were held now. That solidifies an improvement by the Republican who had trailed his opponent by six points in the same daily poll going into the debate.
“Romney’s performance in the debate I think has improved his share of the vote for now … It’s a significant change from where we were a couple of weeks ago,” said Ipsos pollster Julia Clark.
Barack Obama vs. Mitt Romney: President touts fundraising as GOPer questions jobs data
Republican nominee Mitt Romney worked to undercut a better-than-expected jobs report and President Barack Obama touted his largest monthly fundraising haul, as the candidates grappled for advantage in a tight presidential race.
Romney, seeking to capitalize on an aggressive debate performance against Obama and question evidence of a U.S. economic recovery, told voters the true unemployment picture is much worse than the 7.8 percent jobless rate reported on Oct. 5, the lowest since Obama took office.
“If we calculated, by the way, our unemployment rate in a way that was consistent with the way it was calculated when he came into office, it would be a different number,” Romney told more than 6,000 people at an outdoor rally last night in Apopka, Florida. “You see, if the number of people — if the percentage of the American population who were in the workforce were the same today as the day he was elected, our unemployment rate would be above 11 percent. This is inexcusable.” Romney appeared to be referring to the workforce- participation rate, which was 63.6 percent last month, compared with 65.7 percent in January 2009. That figure isn’t incorporated into the monthly unemployment number released by the government, and wasn’t before Obama took office
Check google news out as it is a great way to stay updated!!!!
40,000 Costa del Sol properties to be sold to Nordic buyers
• IT IS HOPED 40,000 PROPERTIES WILL BE SOLD TO SWEDISH BUYERS ON THE COSTA DEL SOL
SWEDISH buyers will be targeted in a new push to sell 40,000 properties on the Costa del Sol.
This week Malaga representatives, headed by tourism boss Elias Bendodo and tourist board manager Arturo Bernal, met with Swedish promoters at the Living Costa del Sol conference in Stockholm.“The Costa del Sol is sure to satisfy all expectations the Nordic market has for quality, diversity and competitiveness,” said Malaga tourism boss Elias Bendodo at the conference.Under the new deal, buyers from Sweden, Finland, Norway and Denmark will be encouraged to purchase second and holiday homes on Spain’s southern coast – many of which are lying empty as a fallout from Spain’s property crisis.The Real Estate Agency, which has 250 offices in Sweden and seven in Spain, will be in charge of promoting the region to Scandinavia, with an initial chunk of a thousand properties targeted.Some of the Costa’s assets expected to impress Nordic buyers are golf, food, culture – as well as the beach and the sunshine.Swedish buyers have already increased dramatically over the last two years, with close to 120,000 arriving in Malaga in 2011 – 41% more than in 2010.
Obama tells supporters the country has come too far to turn back
US Economy
The US unemployment rate fell last month to its lowest rate since January 2009, figures from the Department of Labor have shown, surprising analysts who had been expecting a small rise.
Last month’s rate came in at 7.8%, down from 8.1% in August.
The latest numbers also showed that the US economy added a further 114,000 jobs in September, beating expectations.
The presidential candidates sparred over the data, which is seen as a key issue for November’s elections.
