The World Economy in Spring 2013

Money and Finance

Finance Chart

The state of the global economy is very important to the venture capitalist like Efraim Landa. Over the last few decades there have been many changes in the VC market. There was a time when the venture capitalists was only interested in investing in their local businesses but over the last few decades as international options have become available, the VC market has continued to expand and to strengthen the global economy. Specifically many areas that were struggling have experienced some level of economic progress due partly to regulations which allowed for international investments. Just where does the global economy stand today? How serious was the latest recession and how has it affected the investment potential of VC firms around the world? Read the rest of this entry

Austerity and the European Economy

European money

Euro Money

Current Economic State in Europe

The European economy has experienced extreme economic trouble due to the recent worldwide economic crisis and has yet to embark on a recovery.  The economy is expected to shrink in 2013 for the second consecutive year.  The European Central Bank announced the region’s banks planned to repay less than half of expected amount of low-interest loans from last year and Moody’s Investors Service has downgraded Britain’s government bonds from its top AAA rating.  While many countries around the world have suffered from the economic downturn, Europe has continued to struggle and has yet to show progress towards revival. Read the rest of this entry

How Does VC Affect the Global Economy?

Globalization

Global Economy

As a venture capital firm, Effi Enterprises seeks out emerging businesses that are in need of the funding necessary to grow into a thriving, public company.  These early-stage companies have extreme potential for improvement, but assistance from a firm like Effi Enterprises is all they lack.  In exchange for equity in the company, venture capital firms will invest large amounts of financial capital into the startup to give it the boost necessary to become successful.  As an entrepreneur, Efraim Landa, the founder of Effi Enterprises, understands the importance of innovation and the promotion of small business to the overall success of the economy. Read the rest of this entry

The US Economy in March 2013

Economics

Wall Street

Effi Enterprises is a venture capital firm, which can provide funding along with managerial and business plan assistance to small companies in exchange for equity in the company. As a venture capital firm, Effi Enterprises searches for early stage businesses that need the necessary funding and business advice to succeed. Effi Enterprises can also assist businesses in becoming public companies in ten years or less. Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities. The venture capital industry has expanded around the world, and in recent years, Effi Enterprises has also become increasingly involved in global investments.  Read the rest of this entry

History of the Fed

The Fed

Federal Reserve System

The Federal Reserve System is the central banking system of the United States.  Under a presidentially appointed Board of Governors located in Washington D.C., there is a network of 12 Federal Reserve Banks and 25 branches.  It was officially established under Woodrow Wilson and the Federal Reserve Act of 1913.

Early Beginnings of the Fed

This modern federal banking system traces its origins to the First National Bank that was established by Congress at the urging of Alexander Hamilton.  Many agrarian minded Americans were unsettled by the idea of such a powerful and extensive banking system and Congress refused to renew it after its twenty-year charter expired in 1811.  In response to inflation after the War of 1812, Congress decided to charter the Second National Bank of the United States.  However, after the passionate objections of President Andrew Jackson that a central bank was a threat to the liberties of the American people, Congress once again refused to renew the bank’s charter.  State chartered banks and unchartered “free banks” with no federal regulation carried America’s banking for the next quarter century.  This system was characterized by inadequate bank capital, risky loans, and insufficient reserves against bank notes.  Even after the National Banking Act of 1863 attempted to stabilize American banking by allowing for the creation of nationally chartered banks, giving them the sole power to issue bank notes, bank runs and financial panics ensued.  After multiple depressions in the economy, Congress began to take action, setting the stage for the emergence of a decentralized central banking system.  First, the Aldrich-Vreeland Act of 1908 established the National Monetary Commission to generate a long-term solution to the country’s serious banking and financial difficulties.  This Commission created a plan that called for one central institution, called the National Reserve Association, under the control of a board of primarily bankers, with the power to issue currency and multiple branches across the nation.  Receiving aggressive opposition, this plan was never passed but it did prepare the way for the passage of a banking and currency reform program where central banking was placed under public, rather than banker, control. Read the rest of this entry

What is Demand-Side Economics?

Supply and Demand Cartoon

Supply and Demand Cartoon

As a venture capital firm, Effi Enterprises seeks out emerging businesses that are in need of the funding necessary to grow into a thriving, public company.  These early-stage companies have extreme potential for improvement, but assistance from a firm like Effi Enterprises is all they lack.  In exchange for equity in the company, venture capital firms will invest large amounts of financial capital into the startup to give it the boost necessary to become successful.  In demand-side economic theory, the government must take action to stimulate the economy when it is need and give it the necessary boost for recovery.

Introduction to Demand-Side Economics

Demand-side economics is an economic theory characterized by the idea that economic growth will be created by increasing the demand for goods and services.  Also known as Keynesian economics, demand-side economics strives to stabilize the economy through using government intervention.  To stimulate the economy, demand-side economics suggests the government should lower taxes on the middle and working class and increase government spending.  To prevent inflation, the government should raise taxes and reduce their spending.  Proponents of demand-side theory believe that when the economy is in a recession or economic downturn, the government should step in and take action to stimulate it. Read the rest of this entry

What is Supply Side Economics?

 

lowering income tax

Taxable Income

Efraim Landa is an entrepreneur that has founded Effi Enterprises to assist early-stage businesses in obtaining the funding and managerial assistance necessary to propel them into a public company in ten years or less.  Effi Enterprises understands the importance of investment and production efficiency to the success of a business and the economy as a whole.  These are the principles that underlie Supply-Side Economics.

Introduction to Supply-Side Economics

Supply-side economics is a macroeconomic theory that emphasizes the importance of increasing the efficiency of production, or supply, as the key to an economy’s potential for long term growth.  It maintains that aggregate supply constitutes the primary driving and stabilizing forces in the economy.  Focusing on alleviating barriers to higher productivity in supply, supporters of this theory advocate for lowering marginal taxes and deregulating heavily regulated industries. Read the rest of this entry

What Drives the Global Economy?

Global Economy and the US

Global Economy

In a time of needed recovery in many countries around the world from the recent economic downturn, many begin to wonder how this recovery can happen.  What is that actually drives an economy and pushes it towards growth and success? What factors need to be focused on to stimulate this recovery quickly?  Individual economies have experienced downturns in the recent years, but as an interconnected global economy, the financial crisis was not enough to stop growth.  To propel the global economy forward, factors such as physical capital, labor, productivity, and investment need to be prioritized.

What is the State of the Global Economy?

The economies of the world are constantly becoming more integrated through trade and investment into one global economy that has grown rapidly over time.  In 1970, the world produced about 12 trillion dollars worth of goods and services and 2010; world production reached 41 trillion dollars.  In four decades, global GDP has increased almost four times.  The pace of the global economy’s growth is gradual and consistent.  Individual nations may experience extreme economic boosts and downturns, but the overall global economy continues a slow uphill movement.  Even after a significant global financial crisis like 2009, there was a dip for that year but global GDP had fully recovered by the next year and even exceeded pre-crisis levels by the year after that Read the rest of this entry

VC market in 2013

 

Mobile Technology

Cellphone

Efraim Landa is a venture capitalist who provides both funding and expertise to emerging companies. A venture capital firm typically works with a startup company that needs funding and support to handle those first turbulent years until they can make an IPO. When a VC firm invests in an emerging company it basically purchases a portion of the company in exchange for a profit that will come as the company matures. It is generally expected that a company will be able to transition from its inception to an IPO inside of 10 years with the average being somewhere around 5 to 7 years. The venture capital firm provides the necessary funds to keep the business running efficiently until the time when a profit can be made. Entrepreneurs and venture capitalists such as Efraim Landa also offer their working expertise to the business to help ensure their successful business venture. Many successful entrepreneurs have stated that the expertise that is gained from experienced businessmen is more valuable than the funding that was secured. Read the rest of this entry

The VC Market in South Korea

Flag of South Korea

Flag of South Korea

A venture capital firm invests money in a start-up business as an investment which has the potential of bringing in a substantial return down the road. When an entrepreneur comes up with an idea and starts a business they typically lack know-how and funding. Efraim Landa offers both through his VC firm, Effi Enterprises. A venture capital firm will provide the funds that are necessary to grow a business to the point it can sustain itself and then make a profit; and mentorship can provide the wisdom and experience that a new business needs to make it successful on every level. The VC firm invests in the company in exchange for equity when the company makes its Initial Public Offering (IPO), or is acquired by another company. VC firms usually invest with the understanding that it may take 6 to 10 years to realize a substantial profit or return on their investment. Although it is a high risk investment, it also carries with it a potential of a high return. Read the rest of this entry

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