Financial Crisis News

[Roosevelt]

Malivia's Finance Minister resigns following Economic Crisis; Political Uncertainty Arise As The Coalition Government is Falling



The current minister of finance, Mrs.Estibaliz Lehahall Carmona have resignedhttp://classic.particracy.net/viewnation.php?nationid=14.She further stated that she wasn't ready to confront the economic crisis as she doesn't think she is capable enough to take on such a task and believe that one of her other colleagues in the Cabinet, should take over the task. She has informed the Malivian news that she tendered her resignation today to the Prime Minister and the President. However there are those who believe that the Finance minister was forced out by the current Foreign Affairs Minister, Dr Julian Ferdinand who they believe wants to take over such a position and poise himself as next in line for the top job as Head of Government as he recently brought a motion before parliament for a cabinet reshuffle seeking the resignation of the finance minister but it was met with resistance http://classic.particracy.net/viewbill.php?billid=517291. But many believe that either way he's one of the best ministers the country has seen in the current government and has confidence that he will turn things around for the economy.

Prime Minister OF Malivia seeks to form a new coalition government




Malivia's government lead by Prime Minister Mrs Smith has tried to avert the economic crisis by working along with the banks but the free fall in the economy was inevitable as the banks in Malivia are closely tied with that in Dalibor Markets and thus three of the banks of Malivia has become too big to fail that they need bail out while the automobile company along with Wandals resort has laid off thousands of workers to avoid massive losses and bankruptcy. The Prime Minister went on to state that she will seek to form a new government as proposed yesterday http://classic.particracy.net/viewbill.php?billid=517508 and have a new crop of ministers or perform something like a cabinet reshuffle save an except that one of the major parties have split away from the cabinet.

All this comes on the heel Unstable Markets in Dalibor as:

colonelvesica

Dalibor Markets Unstable Following New Verham Bank Default

The markets in Dalibor City are in crisis as it was announced that the New Verham Government is defaulting on a massive loan to the Schofield Financial, a Luthori bank based in Dalibor. The default comes on the heels as two major New Verham Companies, a arms manufacturing firm and state owned shipping concern filed for bankruptcy to the government following the loss of a massive shipment of arms by the infamous Rapa Pile Pirates.

Both of these firms, which were state owned or subsidized were both bringing in key income to the government which relied on loans from Schofield Financial to remain solvent.

Schofield, one of Dalibor's five biggest banks and one of thr largest though quietest players in Artania has long been considered too big too fail and there is already concern there will be a run on the bank.

However, words are coming from the emergency cabinet meeting because of the finance Minister resignation that the coalition government also has split up over the approach in handling the crisis and thus seen the possibility of a new government and cabinet being formed. Words from the Presidential palace is saying that the new government to be sworn in soon will see Dr Julian Ferdiannd, the son of the founding father of Malivia and nephew of longest serving and who is considered the best and most progressive Head Of Government Malivia ever hand, to be sworn in as the new Finance Minister.

When reaching Dr Julian Ferdinand for a comment he said that he has been in politics growing up with his dad and uncle who were giants in the political arena and believe that he has the skills and experience to solve the economic crisis and steer Malivia's economy on the track of economic growth.

Current minister of foreign Affairs Dr Julian Ferdinand




He further stated that his first mission will be to create an economic recovery committee that will comprise of the Head of State, Head of Government, Minister of Trade and Industry, Foreign Affairs Minister, Internal Affairs Minister, the Governor of the Central bank and his team and himself as Minister of finance that will coordinate the recovery effort. Also, he said that he will bring a budget bill proposal to parliament to avert further crisis and try to arrest the high unemployment but working together with the private sector and use that state to create jobs through a massive infrastructure rehabilitation program

All this is happening on the heels that Malivia is less than two years from a general election and this move to some is seen as power politics at play or can possibly exacerbate the economic crisis while creating a political crisis as well which can land Malivia in deep political instability.

The Leader of the Opposition, Mr Josefina Marie Errai said that his shows that the current government is weak and incapable of handling the economy and that the people wants new leadership and he's ready to perform that role to bring an end to turmoil and economic hardship in malivia to rescue the nation from the hands of what he term, an incompetent government.

[General.M]

Vanuku highers taxes as reserves are going empty

Vanuku has highered the sales tax. While the kodonist Trigunian economist Katina Lesya Yurievna praised Vanuku for its economic policy, Vanuku doesnt seem to want to go into debt. The sales tax on essential goods is highered from 6% to 8%. The sales tax on essential goods is highered from 10% to 12%. The moment the bill was announced the stock got up as there was a run on all products. But, when the bill was passed the stock dropped with 6.8%. The reason of the bill is that the government doesnt want to create big bubbles and because the national reserves are slowly going empty. It seems like the government is slowly going the way of the Williams school of economics.

[Aquinas]

Trigunian economy "recession-ready", says Dragunin

[Adithya]

Schroeder Criticizes Yurievna,Says that Trigunians interest in Dorvish Politics is alarming

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[Axxell]

Inflation and unemployment continue to rise: the Government responds by launching the cut in income tax immediately, while the central bank cuts interest rates
Welfare reform is ready to pass: the stocks of the Hasan group stabilized, but also contributed the intervention of the Mariani group

ROMULA - New data from UNAST, the National Bureau of Statistics, which do not deviate from the forecasts already made: unemployment at 9.6% while the inflation exceeds the 2.7%.
The general rise in prices and more and more workers without job are increasingly easing the purchasing power of the Istalian population, aggravating the slowdown in general demand and causing more and more difficulties for companies, craftsmen, professionals, etc...
Particularly severe the situation in Trivendito and especially in the industrial area between Rocca di Tullio and Verunia, notably noted for the production of ceramics, where four factories have already failed, while the largest factory in the area, CerAmica Srl, has minimized the production leaving more than 2500 workers at home for the next two weeks.
Meanwhile, the protests of the Unions are multiplying as well as a large number of movements of various kinds, especially left and far left, and among them, to worry about the authorities, it has seen also re-emerged anarchist flags, which were joined by the protest on friday of the students associations of universities and high schools who demonstrated in Romula against the Global Capitalism.
The President of the Council of Ministers, Luca Cecconi, in the light of the UNAST's data, therefore wanted to meet with the President of the Republic and the Minister of Finance to make a point of the situation and change the priorities for the next steps to be taken Pushing to proceed with the reform to ease the tax burden on income so as to help families to withstand growing difficulties.
The President of the Republic Berlusconi seems to have decided to leave to Cecconi and Marra de decision, given his institutional position, leaving the task of expressing himself to members of his party who were strongly opposed to anticipating the cut in the income tax by pointing out how the State is already operating in deficit following the cut of corporate tax and VAT on ordinary goods.
Marra and Cecconi, supported by their respective parties, have nevertheless succeeded in convincing the Republican allies, stressing both how the country has accumulated considerable reserves in the past years, with the latest deficit spending for the Republic dating back to the 30's of the past century.
The cut in income tax will reduce the tax burden for low and medium incomes and hence the elimination of the last brakets affecting large assets, for which President of the Council Cecconi was very satisfied:

With this fiscal lightening, the government first want to protect the incomes of the weakest categories which are chronically the most affected during such crises, but we also wanted to proceed with an important lightening for the highest incomes to face a growing situation of strong tesaurisation and thus encouraging investment and private consumption.

Meanwhile, the Governor of the Banca d'Istalia (Bank of Istalia) Luciano Ortali announced a cut in interest rates starting next year to stimulate banks' money supply to businesses, hence investment and production of goods and services, a measure which raged new protests from within the majority as it seems that the decision was taken too under strong Cecconi's pressures, but he has quickly silenced the criticisms by replying that regardless of any government intervention, Banca d'Istalia, like any other another national central bank, would have acted in this way for the stimulus that such a monetary policy can offer.

Meanwhile, the Welfare Reform is getting closer to the final vote but as of today there are no doubts about the passage of the law so much so that we are already seeing a gradual stabilization of the stocks linked to the Hasan group which predict a strong reversal of the trand thanks to the role which will have its most important subsidiary, Umana Servizi, on the future Istalian Welfare Market.
Contributing to the stabilization of the stocks, which has been considered also too quickly, has contributed to an agreement reached by Hasan with the Mariani Investment Group, whose holding has suffered significantly less than most of the rest of the Istalian companies and has announced that it will support the purchase of a large shares controlled by Hasan Grand Holding, a solution that will save the Holding from the total collapse but which will see the influential Hasan family definitively attained by to the historical competitors of the Mariani family which, by voice of the Group Chairman, Alice Mariani, nephew of Roberto, already President of the Council, announces that the Mariani Group will take over from all Dovani sufferings on behalf of the Hasan but has also announced further investments in the promising Dovanian country of Vanakalam, hoping to find a favorable situation and then to tackle with the sufferings that will be forfeited with the entry into the Hasan group.

[Aquinas]

October 4206
Communism to achieve "final triumph" in 4207, predicts Metz descendant


Arkady Metz, descendant of Karlstein Metz

Arkady Metz, a direct descendant of Karlstein Metz (OOC: Karl Marx) living in Trigunia, has made an astonishing speech to the Trigunian Metzist Historical Society in which he predicted the triumph of world communism next year (4207). In the key part of the speech, he said:

With the economic tribulation the world is currently going through, capitalism is now in its final death throes. It has been dying for a long time. Some centuries ago, we saw the collapse of colonialist imperialism, one of the defining features of capitalism. Captialism has gone through crisis after crisis since, and perpetuated injustice after injustice. But now, comrades, the time of its demise is very near indeed. We are living in the End Times of capitalism. We are about to see a most extraordinary, a most glorious and wonderful thing. What we are experiencing now is the final apotheosis, the triumph on earth if you like, of the ideals of Karlstein Metz and of the communist social and economic philosophy.

Our fellow comrades have been working hard in every country, all over Terra, to bring about the revolution. And comrade brothers and sisters, we are close now, very, very close. The next year, 4207, will witness the final defeat of capitalism and triumph of communism.

He went on to extol the successes of various left-wing movements all over Terra, amongst these being Kalopia, where Communists have ousted the previous pro-slavery regime; Jelbania, where communists are wrestling for power in violent revolt; and Deltaria, Narikaton, Maliva and Trigunia where the left is wielding strong influence. He predicted a "chain reaction of collapses of capitalist governments all over Terra, one by one, and the establishment of worker republics".


Arkady Metz's Museum of Capitalism in Petrograd, Trigunia

Arkady Mets is the founder and director of the Museum of Capitalism in Petrograd, which aims, according to its literature, to "chronicle and expose the evils, crimes and inefficiencies of the capitalist system", and hosts numerous exhibitions and talks "detailing the iniquities of capitalism and the inevitability of its collapse". Some Trigunian media commentators have speculated that Metz made his speech in order to gain publicity for his museum and boost ticket sales. However, Arkady Metz and the chairwoman of the Trigunian Metzist Historical Association have issued statements denying this is the case.

[Dinkus]

Gaduridos joins the International Union for Economic Protection and reforms its national currency

Gaduridos' Federal Assembly has just approved two bills, one that will make the country join the IUEP and another one which reforms the system behind the Gaduridan national currency, the Gadur, to prevent inflation and stabilize the economy further.

[Liu Che/Zhuli]

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[IntruderEmerald]

ALORIAN PRESIDENT REECE ATTACKS PARTS OF INTERNATIONAL COMMUNITY, THREATENS TO WITHDRAW FROM IUEP

President of Aloria, Ellis Reece, has declared parts of the international community reckless for prioritising running a surplus during a recession. He says he agrees with Yurievna, a Trigunian economist, that countries trying to balance the budget for political reasons are irresponsible and selfish. He told an Alorian radio show that 'they are manipulating the ordinary people, creating a lie that needs to be proved wrong and that is why I am speaking out'. He urged other world leaders to follow him and condemn countries trying to eradicate the deficit by making drastic cuts. He was ridiculed last week for saying he has 'no problem' with running a deficit. Currently, the Alorian deficit stands at 9.6bn ALO. He was asked whether there will be tax raises or budget cuts to reduce the deficit. In response, he laughed and said 'of course not, what a ridiculous suggestion'. A lot of his critics say he is becoming a more erratic president who is willing to publicly attack the international community, even world leaders. One Alorian political commentator has today condemned the president for 'seemingly trying to damage foreign relations'.


ALORIAN PRESIDENT WARNS DORVIK OVER AU MEMBERSHIP

The Alorian President Ellis Reece has said Dorvik's economy will crumble in the long-term if it rejoins the Artanian Union. This comes on the same day President Reece called some governments around the world 'economic vandals' for their obsession with balancing the budget. Reece said the AU has been indecisive in these dark economic times, failing its members. He said the AU has never in its history responded to a crisis well, whether it be economic or war-related, but the way they have dealt with this crisis is by far its biggest failing yet. Reece said the answer to Dorvik's economic problems is not to rejoin the sovereign-stealing superstate, but to work with its closest allies and with the the world's biggest economies to form bilateral trade deals.

I thought when Dorvik left the AU, it would be the end of the failed project. I thought a powerful country leaving the declining bloc would kill it off for good, but yet again the elites are telling us that joining the undemocratic superstate is the way forward during these tough economic times. Not one of them has explained how giving a way a large membership fee annually is going to benefit us. Not one them has explained how the transfer of sovereignty will give ordinary, real people more of an input. Not one of them has explained how a trade deal among multiple members all with different priorities and interests in the negotiations is going to benefit the owner of a small business, whether that be a hairdressers in Dorvik or a pharmacy in Aloria. The reason why they haven't explained it is because they can't; they can't because they are wrong. Out of all the crises this continent has had to face over many, many years, the Artanian Union has NEVER did anything productive or meaningful. We cannot let the elites do this to us! We must rise up and make sure the ordinary people are not put at risk by these out of touch, dangerous people.

[Aquinas]

January 4207

Yurievna embroiled in further Artanian Union controversy


Trigunian economist Katina Lesya Yurievna is again attracting negative headlines over the arrangements concerning her role as a paid economic consultant for the Artanian Union (AU). In the first development, it has emerged that she has used her AU expenses allowance to pay her 19 year old grandson a substantial fee of 10,000 Rabol for less than 6 month's part-time work as a research assistant. Critics are demanding she provide full details of the work he did and justify the fee involved, but she is refusing to do so on the grounds that her role as an economic consultant means the work she does is "confidential".

Perhaps even more controversially, an explosive top secret report she wrote for the Artanian Union's senior officers has been leaked to the press. In the report, she argues that Dorvik still owes the AU money following its leaving the organisation, and that it should also pay the AU compensation for "the economic, political and administrative disruption caused by the scrappy way in which it withdrew from the AU's structures". Alarmingly for some, she recommends Dorvik "should not be permitted to rejoin the AU until it has squared its accounts by handing over a payment of 80 billion Dorvikian Dolgar".

Yurievna has refused to comment in detail on the report, saying it was "part of a private correspondence between myself and AU officials". However, when one journalist asked her whether the report was written in Rodshyan (OOC: Russian), she laughed and replied:

No, it was written in Luthori (OOC: English). I could have written it in Dundorfian (OOC: German), since I know that language very well, but with Dorvik out of the AU, Dundorfian is not such an important language anymore.

Yurievna praises President Ellis Reece

Yurievna has paid warm tribute to Aloria's President Reece for his "political courage and common-sense", saying he was "absolutely right" to increase Aloria's budget deficit and to consider withdrawing from the "right-wing, hopelessly inept" International Union for Economic Protection (IUEP). However, she disagreed with his views on the Artanian Union (AU), arguing "the AU is far from perfect but it is an important vehicle that needs to be put to work to help deal with the economic crisis".


Istalia "generally on the right track" says Yurievna

Reviewing Istalia's economic situation, Yurievna has commented the Istalian government is "generally on the right track, doing many of the right things, including borrowing to finance tax reductions, cutting sales tax and reducing income tax", arguing "Istalia has an idea of what it needs to do to increase aggregate demand, and it is doing it - so full credit to them for that". She reserved special praise for the recent Anti-Corruption Law, saying "this desperately needed to be done, and I can't emphasise enough that without tackling corruption, even the best economic reform programs can end up failing". She also praised the investment put into high-speed rail and the expansion of the Port of Triesta. However, she expressed concerns about the privatisation of pensions and the health system, arguing "governments should be confident enough to organise health and pension systems by themselves, because they can do this much more efficiently and fairly than the private sector".