Mr. ZP! Could you control the public spending?

This week the European Union is working in Brussels (led by Germany) new rules to force countries to control the deficit. Spain is one of the countries that are being watched more closely, because over the last few months it’s under stricter control by the European Central Bank and the European Commission. I honestly feel a little embarrassed, because we must support our President, who is unable to do anything himself…he looks like a small child being educated in economics.

Europe has warned that the penalties for misuse of the deficit will be severe (1000 million per tenth of a deviation), so it reminds us again that economic recovery will come true if we know to control public spending (precisely what our President not do), because the incomes, in times of crisis, are very difficult to increase.

Rigor and austerity are the keys that should be imposed on the states economic action. Because of that Government is unable to apply them in practice, we expect that from Europe, they know how to lead the complicated 10th World Economy.

Nikkei 225 up test

The natural disaster that Japan is living is higher than many might think. The dimensions of the disaster will be greater because of the Japanese culture. For a country where most people consume only products of Japanese origin, is exposed more to possible setbacks produced in the country.

We live in a globalized world where every event affects the neighbor country. That has advantages and disadvantages. The obvious advantages are that, when the economy is buoyant and economic growth rising steadily, most of the economic regions tend to catch the furor. But the same happens when things don’t go so well.

But the case of Japan is one of those cases that we need to look separately. Japanese society is unwilling to open to the world and foreign trade, thus the relationships and dependencies with the West are reduced considerably. If I had to mention the most obvious link would be the ratio of currency to buy foreign debt by Japan.

I explained what makes me think that Japan and its financial market (mainly the Nikkei 225) in this case, are trapped by fault of their own culture, which has created an excessive dependency between the needs of the country and the national companies.

The power of humility

Today, it’s common to think that to be a big businessman is due to have a set of values (against values in my opinion) that could correspond to a Hollywood movie. The typical executive as represented by Alec Baldwin in "Glengarry Glen Ross".

I want to set an example of a world leader in the textile industry: Inditex. This company was born from the humility of a Spanish businessman. A company that knew how to adapt to its time and achieve a perfect understanding of market demand.

Honestly, it's a national pride to have a company that has managed to evolve and enlarge itself, without falling into the usual nonsense of large corporations. Inditex, currently has a strong moral code that governs the steps of the company and introduced into social action.

Nothing would have been possible without the work of Amancio Ortega, who despite being the 7th World Forbes fortune, has not neglected his humility to continue to live according to basic principles. He is used to combine a rigorous professionalism with the concern for their personal affairs. Combine these fields without being able to harm each other (An example is that the successor will not be anyone of the family, will be the brilliant Mr. Pablo Isla Álvarez de Tejera) is the backbone of a good entrepreneur.

Intrusion into the Economy

Today is born "Pecûnia by Ignacio Fuentes Albesa" as a blog of economic and financial topics. I intend to show my views on current issues, in the same way I do in "Absit" (my other blog about politics and society). In this case I want to show the most relevant events, that in my opinion deserve to be explained.

(I apologize if in the future I could make mistakes writing in English)