There are some terms regarding to mortgage . Mortgagee is usually the lender. Lender gives the money, and the borrower due to the mortgage persuades the lender. The debtor or the mortgagor has to get to know the conditions of the mortgage. Mostly mortgages are related to real estates , but naturally not even for lending purchases it is possible to take mortgages.

The annual percentage rate (APR) is the measurement which is to count the cost of the mortgagor.

In Spain, Ireland, and Australia and also in the United Kingdom have appeared some markets in order to provide services for mortgagors. People need homes, but they don’t have enough cash.

Before you are going to have a mortgage loan, you have to talk with your bank specialist or manager, and agree in a maximum term. After this term there is an amortizing loan which has to be paid. It has another type negative amortization, but not all the mortgage loans do have this amortization.

It is very difficult to decide to borrow, mainly if you are forced to mortgage. Getting to know the possibilities is just the first step. On the Internet there are free mortgage calculators which help the borrower in researching and planning. It is a very helpful method also to learn about the existing mortgage. It is easy to follow the payments, the rates, the amortization schedule and the pay-off dates.

Borrowing is a very complicated decision; due to the mortgage payment calculator it may be relaxing. It is also helpful for those with home mortgage, who want to count the monthly, yearly paid dues.

The client can fix or not to set a mandatory deadline for submission of bills to acceptance. Bill is presented to acceptance at home shot, usually.
Presentation for acceptance is mandatory if the bill is payable at a certain period of consideration, since the date of the acceptance period begins to run to maturity. Promissory note payable at a certain time from the view must be presented for acceptance within one year from the date of issue, tragatorul can reduce or extend this period by expressly mentions in the text.

Shot is not obliged to accept the bill, but upon acceptance bills, it becomes the principal debtor, and girantii and remain tragatorul bind if not held due to pay bill, which means that still bind in regression.

* Unemployment caused by the economic situation during the recession (economic depression) that usually takes 2 – 3 years followed by a period of economic boom with lower unemployment. “Seasonal unemployment, which usually increases during the months when seasonal work is not required (for eg in gastronomy, or personnel serving tourists).

Chronic unemployment is a serious unemployment in periods when no economic boom rather not markedly reduce the number of unemployed.> This can be structured in cases namely due to necorespuzătoare qualifications requirements, age, health or lack of desire to work due aplasarea of other regions in job or a salary (wage) low. Another cause of chronic unemployment is changing the economic structure through the emergence of new technologies that reduce employment or not existing properly qualified. This automation can remember in history are known Tesatorilor actions that destroy machinery in manufacture, although the long term, as automation has increased the purchasing power of the population, reflected in increasing the quantity and diversity of goods and services purchased, which means increased demand on the labor market (more jobs).

Economic literature has two categories of unemployment:

Voluntary unemployment is unemployment that type which describes a situation in which people able to work do not want to work in the overwhelming majority of situations, as have sufficient resources;

Involuntary unemployment (forced) describes a situation in which people capable of work they wish to engage, but found no jobs available. This type of unemployment is one that raises social issues, the only form accepted for payment of unemployment allowance in accordance with Law 76/2002 on the unemployment insurance system and stimulating employment. Involuntary unemployment is a negative side effect of labor law, which creates barriers to entry into the labor market demand for labor (employment), which has the consequence of an excess supply of labor (involuntary unemployment).

Barriers that prevent the meeting of supply and demand on the labor market:

* The minimum wage is imposed a lower limit of the salary set by law. Prevent entry jobs for people who are willing to work under the limit, forcing them to remain unemployed. Real wage growth over the minimum required at the lowest price tender, has the effect of rising unemployment:

File: SME.gif

* Limiting the number of angajatori.Cu few exceptions, labor law does not allow individuals to become employers as a barrier to the labor market by the fact that they blocked a lot of jobs that would be entered into direct competition with those offered by companies trade, with positive effects on employees and the unemployed.

* Compulsory social security contributions. Access to the labor market (employment law) of any citizen is subject to purchase social insurance through mandatory contributions paid from income. Refusal of an employee to buy insurance is penalized by removal from the labor market.

* Certification training. Conditional on possession of a diploma in the appropriate skills to operate a national, required by labor law is a barrier to entry into the labor market for people who have self-knowledge, skills and abilities necessary to engage in the economic.

[edit] Measures to combat

1. Unemployment caused by economic juncture, when demand is reduced economic market may be through a flexible fiscal policy to balance the losses caused by reduced sales.
In this U.S. policy is more flexible in comparison with Europe, if this policy is applied rationally to exclude the possibility of repetition of the day Black Friday on Wall Street U.S. on 25 October 1929, when he broke a world economic crisis that led to the bankrupt banks , devaluing the currency.
This course is not so intense has been observed since 1970 and in Germany where high taxes, increasing unemployment and high wages, which makes the high prices of German products could not compete with those produced cheaper in other countries.
2. A measure to combat structural unemployment, is the establishment of flexible wage rates through better cooperation between unions and management companies, as rates are adjusted depending on the rate of inflation.
Method extension school students and early retirement of employees turned out for a long period as an expensive and neeficace. Another measure to reduce unemployment was the creation of service shorter than 8 hours in order that a post should be occupied by two employees.
3. Active policy measures to reduce unemployment are:

* To new employees is a time trial, while receiving a lower salary, flexibility of working time, ease of disposing of employment rates and wage flexibility as the economic situation
* Training and unemployed trenarea the way and must seek employment
* Integration into the process of living in the country and a foreign nationality
* Raising skill levels and training schools

In many cases, active measures have the effect of increasing the number and intensity of barriers on the labor market, unemployment stressing.

Elimination of all barriers on the labor market (the specific labor law), would result in the elimination of any form of involuntary unemployment, increasing competition between employees for the best jobs (wages and working conditions above), increasing competition between employers for the best employees, the effects of an increase in labor productivity, reducing bureaucracy, increasing real incomes of the general population and will stimulate people’s desire to educate.

In the spotlight are the macroeconomic theories, finally, the role that the state has in the economic context, of these theories derivează addressed economic policy requirements. Governments try to change the size of which are significant because considerării ex-post. Thus, changes in taxes, interest or demand state-defined political goals, is pursuing other goals such as price level stability, full employment of labor and economic growth. Macroeconomic dimensions plays an important role in the political process of legitimation, as they can be interpreted by voters as an indication of the government quality work.

In the list below, from left, are third in the world according to gross domestic product (GDP) in millions of U.S. dollars, based on exchange rates from April 2005. Table includes 176 of the 191 states recognized by the UN, as well as data on European Union, Hong Kong, Macao, Taiwan and the Netherlands Antilles.

The table on the right side are the countries of the world in terms of gross domestic product (GDP), according to purchasing power parity (PPP) in millions of international dollars (PPP-$). The basis of calculation is the purchasing power of a U.S. Dollar in the USA. Table contains all the 191 countries recognized by the UN, as well as data on European Union, Hong Kong, Macao, Taiwan and the Netherlands Antilles.
List of countries according to GDP list of countries according to GDP (PPP)
Rank Country GDP (nominal)
Millions of U.S. dollars
- World 44,168,157
- European Union 13,926,873
1 U.S. 12,438,873
2 Japan 4,799,061
3 Germany 2906658
4 United Kingdom 2,295,039
5 France 2.216.273a
6 China 1.843.117b
7 Italy 1,836,407
8 Spain 1,120,312
9 Canada 1,098,446
10 Russia 755,437
11 India 749443
12 Brazil 732,078
13 South Korea 720,772
14 Mexico 714,530
15 Australia 692,436
16 Netherlands 629,391
17 Belgium 387,840
18 Switzerland 384,642
19 Sweden 383,816
20 Taiwan 345,105
21 Turkey 340,263
22 Austria 318,343
23 Poland 312,257
24 Norway 285,604
25 Saudi Arabia 284,895
26 Indonesia 284,072
27 Denmark 265,934
28 Greece 230,684
29 South Africa 226,486
30 Ireland 206,467
31 Finland 204,385
32 Iran 195,200
33 Portugal 185,091
34 Thailand 174,545
35 Hong Kong SAR. PR China 172932
36 Argentina 172,123
37 Malaysia 127,942
38 Czech Republic 125,709
39 Israel 122,987
40 Venezuela 122,301
41 Singapore 116326
42 Colombia 108,731
43 New Zealand 107,670
44 Hungary 107,144
45 United Arab Emirates 103006
46 Chile 101,526
47 Algeria 97,459
48 Philippines 92,586
49 Egypt 91,688
50 Nigeria 91,574
51 Pakistan 90,282
52 Ukraine 82,693
53 Romania 79848
54 Peru 72,888
55 Bangladesh 61,944
56 Kuwait 61469
57 Morocco 54597
58 Kazakhstan 51,876
59 Slovakia 50323
60 Vietnam 47,111
61 Luxembourg 35620
62 Slovenia 35,106
63 Croatia 35,103
64 Libya 32,962
65 Tunisia 31,970
66 Ecuador 31927
67 Qatar 31,550
68 Belarus 27,061
69 Guatemala 26978
70 Serbia and Montenegro 26243
71 Bulgaria 25,959
72 Syria 25694
73 Sudan 25,379
74 Oman 25,038
75 Angola 23,894
76 Lithuania 23702
77 Sri Lanka 22,351
78 Dominican Republic 21,476
79 Lebanon 20699
80 Costa Rica 19,558
81 Cyprus 17,144
82 Ivory Coast 17,084
83 Kenya 16,900
84 El Salvador 16,602
85 Cameroon 15,742
86 Iceland 15,388
87 Latvia 15,387
88 Yemen 15,204
89 Panama 14,531
90 Turkmenistan 13,846
91 Trinidad and Tobago 13558
92 Uruguay 13,116
93 Estonia 12,310
94 Zimbabwe 12,261
95 Tanzania 12.123c
96 Jordan 11,928
97 Bahrain 11,781
98 Uzbekistan 11,002
99 Azerbaijan 10,751
100 Ghana 10,340
101 Bolivia 9738
102 Bosnia and Herzegovina 9521
103 Botswana 9424
104 Jamaica 9199
105 Ethiopia 9005
106 Senegal 8936
107 Albania 8908
108 Myanmar 8867
109 Uganda 8257
110 Gabon 8230
111 Honduras 7864
112 Paraguay 7281
113 Democratic Republic of Congo 6980
114 Nepal 6680
115 Mozambique 6676
116 Zambia 6222
117 Mauritius 6202
118 Bahamas 5804
119 Burkina Faso 5722
120 Brunei Darussalam 5721
121 Mali 5537
122 Malta 5532
Afghanistan 123 d 5392
124 Chad 5388
125 Republic of Congo 5237
126 Namibia 5032
127 Macedonia 4962
128 Madagascar 4941
129 Benin 4773
130 Nicaragua 4740
131 Georgia 4737
132 Cambodia 4583
133 Equatorial Guinea 4489
134 Haiti 4465
135 Armenia 4213
136 Papua New Guinea 3924
137 Guinea 3647
138 Niger 3363
139 Netherlands Antilles 3063
140 Barbados 2964
141 Republic of Moldova 2897
142 Fiji 2808
143 Laos 2665
144 Swaziland 2505
145 Tajikistan 2338
146 Togo 2318
147 Kyrgyzstan 2290
148 Rwanda 2076
149 Malawi 2067
150 Lesotho 1660
151 Mauritania 1578
152 Central African Republic 1523
153 Mongolia 1400
154 Cape Verde 1180
155 Suriname 1144
156 Sierra Leone 1133
157 Belize 1104
158 Antigua and Barbuda 834
159 Maldives 828
160 Burundi 791
161 Guyana 782
162 Bhutan 769
163 Saint Lucia 731
164 Eritrea 730
165 Djibouti 709
166 Seychelles 629
167 Gambia 461
168 Grenade 451
169 Saint Kitts and Nevis 421
170 Saint Vincent and the Grenadines 418
171 Comoros 402
172 Samoa 334
173 East Timor 332
174 Vanuatu 328
175 Guinea-Bissau 316
176 Solomon Islands 274
177 Dominica 270
178 Tonga 227
179 Kiribati 72
180 São Tomé and Príncipe 69

Source: The World Economic Outlook database, International Monetary Fund, September 2004.

Note: List includes only economies with confirmed GDP estimates.
a. Data include the French department of Guadeloupe surveillance, Martinique, Reunion and French Guayana.
b. Data include Hongkong, Macao and Taiwan
c. Data refer only to the mainland of Tanzania
d. Data do not include trade in opium.

Rank Country GDP
$ Million worldwide
- World 59,559,770
1 USA 12,332,296
- European Union 12,329,110
2 China 8.091.851a
3 Japan 4,009,327
4 India 3,602,894
5 Germany 2,498,471
6 United Kingdom 1,825,837
7 France 1,811,561
8 Italy 1,694,706
9 Russia 1,585,478
10 Brazil 1,552,542
11 Canada 1,111,846
12 South Korea 1,099,066
13 Mexico 1,064,889
14 Spain 1,026,340
15 Indonesia 863,654
16 Australia 638,713
17 Taiwan 629,858
18 Turkey 570,748
19 Iran 560,348
20 Thailand 559,489
21 South Africa 532,011
22 Argentina 516,951
23 Poland 512,890
24 Netherlands 498,703
25 Philippines 409,445
26 Pakistan 392,526
27 Ukraine 339,676
28 Saudi Arabia 337,268
29 Colombia 336,808
30 Belgium 324,299
31 Bangladesh 303,655
32 Egypt 302,803
33 Malaysia 289,606
34 Sweden 267,427
35 Austria 267,053
36 Switzerland 241,265
37 Greece 236,311
38 Algeria 232,692
39 Vietnam 231,644
40 Hong Kong SAR (PR China) 226766
41 Portugal 203,947
42 Czech Republic 198,976
43 Norway 193,660
44 Denmark 187,721
45 Chile 186,733
46 Romania 183,162
47 Nigeria 173,704
48 Ireland 164,190
49 Peru 164,110
50 Hungary 162,289
51 Finland 161,099
52 Israel 154,174
53 Venezuela 153,331
54 Morocco 138,006
55 Singapore 124001
56 Kazakhstan 123,992
57 United Arab Emirates 111027
58 New Zealand 101,582
59 Iraq * 89800
60 Slovakia 87129
61 Sudan 85,461
62 Sri Lanka 85,155
63 Tunisia 83,353
64 Myanmar 78,564
65 Syria 72174
66 Bulgaria 71,381
67 Belarus 70,524
68 Libya 65,647
69 Dominican Republic 63,594
70 Ethiopia 62,744
71 Ecuador 56779
72 Guatemala 56736
73 Croatia 55,638
74 Ghana 54,330
75 Lithuania 49106
76 Uganda 48,620
77 Uzbekistan 48,137
78 Kuwait 44675
79 Costa Rica 44,579
80 Angola 43,599
81 Serbia and Montenegro 43462
82 Slovenia 43,260
83 Cameroon 40,744
84 Democratic Republic of the Congo 40,585
85 Nepal 39,815
86 Oman 39,559
87 Turkmenistan 39,458
88 Azerbaijan 37,841
89 Kenya 37,065
90 Cuba 33,920 *
91 Uruguay 32,885
92 El Salvador 31,171
93 North Korea * 30880
94 Luxembourg 30674
95 Cambodia 30,579
96 Latvia 30,227
97 Paraguay 29,014
98 Ivory Coast 28,460
99 Zimbabwe 28,304
100 Tanzania 27,006
101 Jordan 26741
102 Mozambique 25,974
103 Bolivia 25,892
104 Equatorial Guinea 25,439
105 Lebanon 23638
106 Qatar 23,584
107 Bosnia and Herzegovina 22,840
108 Panama 22,706
109 Estonia 22,239
110 * 21500 Afghanistan
111 Honduras 20549
112 Senegal 20,482
113 Yemen 19.324
114 Guinea 18,945
115 Albania 18.933
116 Trinidad and Tobago 17966
117 Botswana 17,207
118 Burkina Faso 16,916
119 Cyprus 16745
120 Madagascar 16,323
121 Mauritius 16,054
122 Nicaragua 16,052
123 Macedonia 15,996
124 Bahrain 15796
125 Georgia 15522
126 Chad 14,756
127 Papua New Guinea 14343
128 Namibia 14,198
129 Haiti 14,118
130 Mali 13,532
131 Armenia 13432
132 Rwanda 12,620
133 Jamaica 12,141
134 Laos 12,101
135 Niger 11,260
136 Kyrgyzstan 10,626
137 Zambia 10,568
138 Iceland 10,548
139 Gabon 9514
140 Macao SAR (PR China) 9100 *
141 Brunei Darussalam 9009
142 Togo 8945
143 Tajikistan 8711
144 Benin 8534
145 Republic of Moldova 8157
146 Malta 7909
147 Malawi 7507
148 Mauritania 6876
149 Bahamas 6085
150 Swaziland 5646
151 Burundi 5642
152 Fiji 5368
153 Mongolia 5230
154 Lesotho 5113
155 Sierra Leone 4910
156 Central African Republic 4773
157 Barbados 4735
158 Republic of Congo 4621
Somalia 159 * 4597
160 Eritrea 4250
161 Netherlands Antilles 4175
162 Guyana 3541
163 GAMBIA 3017
164 Cape Verde 2992
165 Bhutan 2913
Liberia 2903 * 166
167 Suriname 2812
168 Maldives 2557
169 Belize 2046
Andorra 1900 * 170
171 Djibouti 1686
172 Guinea-Bissau 1182
173 Samoa 1172
174 Comoros 1114
175 Seychelles 1017
176 Saint Lucia 985
177 San Marino 940 *
178 Solomon Islands 925
179 Grenade 883
180 Monaco 870 *
181 Antigua and Barbuda 835
182 Liechtenstein 825 *
183 Tonga 785
184 Saint Vincent and the Grenadines 751
185 Vanuatu 741
186 Saint Kitts and Nevis 626
187 Dominica 448
188 East Timor 370 *
189 Micronesia 277 *
190 São Tomé and Príncipe 268
191 Kiribati 243
192 Palau 174 *
193 Marshall Islands 115 *
194 Nauru 60 *
195 Tuvalu * 12.2

Sources: The World Economic Outlook database, International Monetary Fund, April 2005.
(*) The World Factbook, Central Intelligence Agency (CIA), in May 2005.
a. Data include Hongkong, Macao and Taiwan.

[edit] History of comparison

The following are represented on the one hand, countries with the highest GDP in millions of U.S. dollars. It should be noted that different growth rates can be achieved through changes in exchange rates.

On the other hand are the countries with the highest GDP based on purchasing power parity in the billion dollar international (PPP-$). The basis of calculation is the purchasing power of a U.S. Dollar in the U.S..
List of countries according to GDP list of countries according to GDP (PPP)
Rank Country 1980 1990 2000 2003
1. USA 2795.6 5803.3 9824.7 10857.2
2. Japan 1072.9 3052.2 4766.1 4290.7
3. Germany 826.1 1547.0 1875.2 2386.2
4. United Kingdom 536.7 994.6 1440.9 1775.0
5. France 682.4 1219.8 1313.3 1731.6
6. Italy 454.6 1104.5 1077.6 1455.4
7. China 301.5 387.8 1080.8 1372.0
8. Canada 268.9 582.7 724.2 850.5
9. Spain 221.8 511.5 562.8 827.1
10. Mexico 202.0 262.7 581.4 611.6
11. India 175.5 313.1 460.8 556.1
12. South Korea 62.2 252.6 461.5 520.9
13. Netherlands 178.4 295.5 371.6 509.3
14. Australia 156.7 307.9 378.7 508.2
15. Brazil 148.9 465.0 599.8 507.0
16. Russia 42.0 85.6 259.7 428.8
17. Switzerland 107.6 229.5 240.4 314.0
18. Belgium 121.7 197.8 228.7 300.8
19. Sweden 128.9 238.3 239.8 297.5
20. Taiwan 41.4 160.400 309.6 288.8
21. Austria 80.2 162.1 191.2 251.0
Source: OECD & IMF
Rank Land 1980 1990 2000 2003
1. USA 2741.5 5690.7 9634.0 10682.3
2. China 440.6 1593.8 5137.4 6701.9
3. Japan 1037.9 2324.4 3354.4 3548.8
4. India 357.9 959.5 2041.6 2488.6
5. Germany 729.3 1378.9 2051.8 2231.1
6. France 504.5 974.6 1451.2 1614.8
7. United Kingdom 464.4 916.7 1407.6 1575.8
8. Italy 516.1 967.9 1389.5 1535.6
9. Russia 739.8 1511.9 1144.5 1388.2
10. Brazil 422.8 746.1 1194.6 1337.2
11. Canada 276.1 551.0 898.9 1029.1
12. Mexico 278.2 506.5 876.4 973.5
13. South Korea 94.0 338.4 756.7 925.9
14. Spain 244.1 494.4 785.2 891.2
15. Indonesia 144.7 370.5 689.3 812.6
16. Australia 136.8 289.7 505.8 590.8
17. Iran 111.0 228.9 433.0 534.6
18. Taiwan 64.1 207.9 464.3 516.1
19. Thailand 69.2 223.8 422.9 486.5
20. Turkey 100.8 252.1 442.1 471.3
… … … … … …
… Austria 73.5 138.0 211.6 232.7
… Switzerland 82.8 154.9 207.6 224.9

Source: International Monetary Fund

This draws an excess demand for commodities leading to higher prices. Raising prices is not simply increasing the amount of money, but the demand which it makes possible.

Monetary inflation is well defined by the equation of exchange Fisher M * V = P * T
where: Broad money-M V-speed movement of the
P-The general level of prices T-volume transactions.

So you can see that if M (money) is greatly increased causing a major imbalance in that equation can not be brought to normal only by increasing of P (the general level of prices). Say this because:-T (the volume of transactions) can not increase more than the maximum we allow production – V (velocity of circulation of money) is not easily changed because they are difficult to change: the tastes, habits and consumer preferences .

This draws an excess demand for commodities leading to higher prices. Raising prices is not simply increasing the amount of money, but the demand which it makes possible.

Monetary inflation is well defined by the equation of exchange Fisher M * V = P * T
where: Broad money-M V-speed movement of the
P-The general level of prices T-volume transactions.

So you can see that if M (money) is greatly increased causing a major imbalance in that equation can not be brought to normal only by increasing of P (the general level of prices). Say this because:-T (the volume of transactions) can not increase more than the maximum we allow production – V (velocity of circulation of money) is not easily changed because they are difficult to change: the tastes, habits and consumer preferences .

GDP deflator is based on a “market basket” fix, representing goods and services. Basket size is amended in the light of human consumption and investment patterns. Thus, new patterns of expenditure deflator may arise as a response of humans to change prices.

[edit] Method of calculation

In most systems of national account, the GDP deflator measures the difference between real GDP and nominal GDP.

The formula used to calculate the deflator is nominal GDP/ real GDP

Last PR change was about one month ago. I am curious if the next one will be end june, as they said that are looking to change the algorithm.

Finance problem 1: the pensions funds will collapse. Also, the fact that the private sector is based on stocks so much, any big market fluctuation will affect your pension. If you want to retire during a recession, well, to bad

Finance problem 2: the energy network must be completly change. We cannot support burning fossile fuels so much time. When the stocks will be finished, then it will be a big shock, followed by big finance problems in all industries connected with oil (car industry, airplanes, plastics, etc)

Finance problem 3: living on credit is un-sustainable. US citizens are in debt. The nation is in huge debt. The world in in debt. Everything must be leverage.

So, these 3 crisis will follow shortly. Hopefully we will not have other types of disasters, that will generate by themselves crisis (tsunami, meteor, terrorist attack, etc)