Inflation Risks and the effects of QE

The Federal Open Market Committee meets on Tuesday to set monetary policy for the coming month and a half. The committee votes on Wednesday afternoon. Here’s the FT’s US economics editor Robin Harding on what to expect:

ECB president Mario Draghi faces a grilling from the Bundestag next week. The Bundestag hearing is an attempt by Mr Draghi to appease German anger over the central bank’s plans to buy bonds of beleaguered sovereigns in potentially unlimited amounts. It may seem a very risky move, but fear not, the risk of this happening is very small, this is to reassure markets that no one can fool around with EU member states to manipulate the currency and the economy. I am going to close all the loopholes in the entire world so that there will forever be growth and stability.

A decentralise approach to Central Banking to control Inflation Risks
You need to monitor your money inflows and outflows, with your balance of payments, the mechanics of Demand and Supply applies, if you print too much money your economy will suffer, so that when America sneezes you will not catch a cold, then you can apply interest rates and swaps to control inflation, I cannot do the work for everyone, I can only show you the ropes, the days of QE will not control inflation, it will only make matters worse, how successful you are depends on the liquidity and supply of money in your own economy, you need to start tweaking your supply of money(if you have no experience you can start small and nibble to test your results), depending on others will only cause wild swings in your economy. 
Factors Affecting Inflation Risks
Money Inflows/Outflows
Balance of Payments especially with your Top 5 Trading Partners
Income and Expenditure of Balance Sheet
Currency Exchange Controls
Your Targeted Export Markets for Trade
Once you are able to visualise the factors, you could set goals for interest rates peg and swaps to control inflation risks with a long term view by an averaging method to insure against wild swings, similar to controls for currency peg against a basket of instruments. Inflation Risks is linked to Liquidity Risks especially the movement of huge funds which will destabalise the industry, so you need to be able to control such risks by spread over a Timeline and allow it to flow thru the monetary system with small gains without upsetting the markets. Ideally inflation for your domestic economy should be managed at a 2-3% range where it will cause long term capital appreciation for the growth of the property and stocks market.
– Contributed by Oogle.

How Capacity Planning can improve your bottom line with historical data

How Capacity Planning can improve your bottom line with historical data

1) Let me give you an example, you have the ezlink card, where if you are SBS you need to know the movement of your passengers for capacity planning, every single trip that originates at which bus stop at what time, the capacity of your buses, and plan to at least fulfill 50% of each bus capacity, it is no point setting a goal of every trip in 10 minutes if there is no demand, as long as you can keep your waiting times within 30 minutes should be your goal, by fulfilling 50% of each bus capacity already you will not lose money, no point driving all bus drivers with stress where it is impossible to achieve you goals.

2) Likewise for SMRT it is possible to keep your train trips within 2 minutes apart for peak hours, but it does not justify outside of peak hours, you know every trip that starts from which MRT and ends where at what time, so base on the 50% capacity of your train and keeping your waiting time within 15 minutes, it is possible to improve your bottom line.

3) This also applies to all freight and transport operators, if you can plan ahead to fulfill and maximise your capacity, it will help improve your bottom line, it is the same for air, sea, road and rail, nobody likes to waste resources, unless you own Air Force One and you are the President of United States.

4) Likewise I can even plan for the capacity for road traffic, to link to CCTV camera to monitor traffic, the control of all traffic lights, and even manage Road Pricing with ERP via GPS by automating every process and linking everything for traffic control.

5) If I am crazy enough, I could even mine the data from taxi meters and link to the GPS system, to find out exactly the demand for taxis for every taxi stop, even planning ahead like a venue for concert and show, to supply enough taxis to cater to demand, the most efficient way to make money.
– Contributed by Oogle.

NOL’s boss warns of industry shake-up

SinoShip News- 18/10/12
Shenzhen: The container shipping industry will go through a significant shake-up and the growth it has become accustomed to will never return, according to the boss of the world’s seventh largest containerline.
In a frank speech on day two of the TPM Asia conference in Shenzhen group president and ceo of NOL, Ng Yat Chung suggested the sector was set for huge changes.  NOL runs containerline APL.
The industry is, Ng said, “in the middle of a deep downturn???”.
Container shipping will not benefit from GDP growth going forward as it has done in the past, Ng said, noting that era of outsourcing to China was over as was the era of high consumption.
“The industry is clearly not sustainable – something has to give,” Ng warned.
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