Category Archives: the economy

What is Going on in China?

What is Going on in China
The news about China’s economic woes is wide spread and it seems that the equity markets in China are along for the ride. This has been felt even in the stock markets in the US since investors like Efraim Landa can become concerned about what impact China’s economy may have on the economy on a global level. Plenty of negative influences are heard because of the upheaval.

Is China okay?

It’s rather obvious even to the casual observer that everything is not running perfectly in China. However, there should be some thought given to the economic growth in China and perhaps there is a different perspective from which to view it. In 2015, the GDP of China has been estimated at more than $11 trillion. This is not actually too bad when you compare them to others like Germany and Japan who are both closing in on the United States at 7% growth factors. This is an enormous amount of growth considering it’s not been done before. China’s economy has lots of prospects and investors who are patient will likely be rewarded eventually.
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Global VC Post Financial Crisis

Global VC Post Financial Crisis
No matter your stance on the great Bubble debate, 2014 was a relatively remarkable year for those involved in the venture capital industry. Overall there was an increase in investing, valuations and fundraising. There was also a huge trend for industries to consolidate. Last year, about 4% of the firms who raised any funds accounted for just less than half of all capital raised. This led many to think that the VC industry was beginning to decline and shrink. However, after much research, most VCs continue to be excited about how their opportunities are lining up especially when it comes to tapping into the upcoming transformative tech companies. Read the rest of this entry

The State of the Private Equity Market

Private Equity Markets

Private Equity Markets

The private equity market is showing great promise for 2015 and beyond. The choices for new ideas and business concepts are seemingly endless, the entrepreneurs are eager to get their start-ups running and the loan rates are relatively low. Investors have the potential to make huge profits from smart new tech companies that aim to make life easier for consumers. By focusing on a select group of start-ups, venture capitalists can expect to spend more money on fewer investments, but they can also expect a bigger return for their money. Read the rest of this entry

The Current State of Venture Capital in the World

Venture Capital in the World

Venture Capital in the World

Last year brought many changes to the state of venture capital around the world. The fact is that fewer deals were actually made. The interesting part, however, is that the deals were made at a higher cost, showing an increase over that of 2013. That growth has continued in 2015, mainly in terms of tech companies. The market hasn’t come close to being saturated with new, inventive ways to save time, save money or enhance social media usage as we know it. These areas still show promise worldwide for the near future. Read the rest of this entry

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

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