Taxation Revolution of Transfinancial Economics

This article is a brief, non-technical presentation of a project referred to as Transfinancial Economics, or more simply TFE. It is an evolving concept which is now starting to be seriously accepted by enlightened academics conerned with cutting-edge knowledge.

1. The Basic Concept.

Transfinancial Economics, or TFE, or Non-Taxation Monetary Reform believes that new unearned money can be created to replace direct, and indirect taxation. Thus, future democratic governments would no longer have to raise funds but instead have them created responsibly via a genuine independent public authority known as a Central Treasury Bank. Every finance order from a government is carefully checked, and passed. The important point to understand here is that it makes overspending less likely as there is no existing lump sum of tax money from which to drawn upon. It is simply created in a careful measured way. All this ofcourse has immense social,economic, and political implications.

Apart from central government,(and indeed local government too) non-governmental organisations, or NGOs would also have new unearned money created for them via Grant Generating Banks. Many of them will be partly, or fully funded without the need for fund-raising. This has extraordinary humanitarian implications for various social,economic, and political concerns. Incidently, the Grant Generating Banks would be independent of governments, and transnational corporations.

In TFE there are two Systems. The Human Financial System is what has already been discussed above whilst the Economic Financial System is where money is earned in the normal fashion.

2.Hyperinflation, and Supercomputers.

With the electronic transmission of new unearned money as legal digits of value into our world there is the great possibility of hyperinflation. This, if unchecked can lead to total devaluation of the national currency. In other words,the amount of money would outstrip the production of goods,and services. Thus, the retail prices would shoot up, and those notably existing on a fixed income would find that they can buy less than before.

What is the solution? The answer is the development of a credible programme for supercomputers which could track retail price levels in banks. In the past, there have been attempts to bring about price controls but these proved to be unpopular, and had mixed results. However, in the case of TFE super-flexible pricing would be possible, and this would allow for competitive capitalism as we know it today. This would be “unimaginable” with the controls of the past.

3. Three Basic Electronic Controls Over Inflation.

They are discussed as follows.

a) Super-Flexible Pricing.

An entrepreneur, and his company tries to sell a product, or service to the public. It has to be priced. When this has been agreed upon it has to be registered with a legally accountable centralised, or decentralised independent public authority, and/or a bank. The business concerned then receives retail price confirmation for the product, and/or service, and higher price range levels are given until the ultimate one is reached where it is automatically fined. This appears on a bank statement. However, the higher price range levels allow for Super-Flexible Pricing.

By Law, most products, and services have to be registered. There are those ones which have no obvious value, and can be exempt from the electronic controls over inflation. Anonymous cash transactions would still exist if democratically desired. The reason being is that it makes up a near non-existent portion of the entire money supply, and hence, would have little, or indeed, no affect on inflation.

The introduction of such electronic controls would be be initially unpopular with businesses. At first, they may try, and cheat the supercomputer systems. Yet, they will fail as a graduated system of automatic fines could be temporarily brought in to make sure that retail prices do not rise too quickly. However, such controls would be relaxed when businesses learn to adapt to responsible pricing of registered products,and services but allowing at the same time a high degree of competition.

With TFE such legislation as explained would be a small inconvenience for companies compared with the imposition of Income Tax, and other taxes as these would no longer exist. Thus,their growth, and profits would expand as never before. Moreover, loans could be created interest-free. Civil, and criminal fines of one sort, or another would still exist.

b)Excess Accounts.

These are specific bank deposit accounts in which saved money is indexed-linked to the inflation levels of an economy. When the monetary supply exceeds the production of goods, and services it is simply saved but does not loose its value. This can be a short, or long-term situation. In other words, the money cannot be spent simply because the resources are not there!! With greater economic growth though more products, and services become available, and thus, more of the saved money can be spent. In TFE such deposit accounts are said to be “in excess”.

c)Inflation Interest.

This can be summed up with a simple example. If person T buys a registered product, or service which is 10% above the national inflation level this same percentage can be created as new uneared money by the bank. Thus, the purchase for the customer has not been devalued. This is referred to as Inflation Interest, and is an essential feature of the entire economic system.

The above constitutes the basic controls in TFE, but there are other aspects of this subject not discussed here. Indeed, it will ultimately require the aid of experts in economics, finance, and IT to hammer out a credible programme for controlling inflations levels.

3. Some Major Anti-Tax Arguments for TFE.

Here, we list the arguments for Non-Taxation.

i) Everyone has a basic human right to all their earnings, and these should not be compulsorily deducted by any government.

ii) Taxation is no longer necessary in the 2lst century as we now have the technology to control inflations levels. It belongs to the past, and not the future.

iii) It is morally reprehensible for people to fund the mistakes, and abuses of any government in power.

iv) Taxation has been the direct,or indirect cause of many wars, and revolutions.

v) Though it is right for people to earn money, and pay for most things in life they should also be REWARDED by a policy of Non-Taxation. The reason being is that they are the creators of REAL WEALTH (ie. products, and services). Without that money as a medium of exchange would be worthless if such resources did not exist.

4. The Question of Redistribution.

In TFE there is no redistribution of existing wealth. Instead, there is the massive creation via electronic transmission of new unearned money. Through the programmes and reforms of democratic governments, and NGOs such funds could finance old, and new ways of poverty alleviation, and fairer distribution of financial wealth as never before in human history. To try,and achieve this via taxation, and other methods is old hat, and is clearly not working to the fullest degree. The most effective approach is to create new unearned money where,and whenever there is a genuine need. The ultimate aim of all this is for the beneficiaries to become independent, and self-financing in some manner. Thus, new unearned money can lead to greater productivity, and economic growth as never before. The only limits to all this is ofcourse, effective planning, and natural resources.

5. Interest Free Monetary Reform.

Virtually the entire money supply of the world is created by private commercial banks as a loan, or credit. Super-normal profit is created by the interest paid on it by customer. Governments though create coins, and paper money as something which is spent debt-free into society. Banks create the rest of it “out of thin air” through what is technically called fractional reserve banking. Thus, the money exists on paper, and computer as an electronic transmission of digits which ofcourse have legal force.

Some people believe that it is possible to create money as loans without interest. This would have great benefits for society, and the economy. Yet, it is very limited compared with TFE, or Non-Taxation Monetary Reform the social,economic, and political implications of which would be totally remarkable. As such, Interest-Free Monetary Reform should be unified with TFE, and this would arguably ensure its success.

6. Green Transfinancial Economics.

Green, or Sustainable Economics makes the vital point that there is a finite amount of natural resources on the planet. At present, they are being used up at an unprecedented rate by humanitys greed notably in the rich countries. Ideally, everyone should radically reduce their consumer wants, and live in small self-organizing communities which would respect nature, and the earth. Such a development though is clearly not going to happen fast enough to “save the planet” from total resource scarcity. The only way forward is the creation en masse of various forms of complex, and simple sustainable technologies at record speed. With TFE this can happen with the massive influx of new unearned money as business grants/interest free loans, and the financial empowerment of relevant NGOs. A new, and advanced understanding of money is absolutely crucial if we are serious about a sustainable (but high growth) economy as it is the POWER WHICH CONTROLS THE USE, AND ABUSE OF LIMITED RESOURCES.

7. The Third World, and the Transnational Corporations, or TNCs.

This in itself is a complex subject. With the financial empowerment of Third World charities, or NGOs many many lives could be dramatically improved, and many deaths avoided altogether. An “indirect” factor in all this are the transnational corporations, or TNCs who have ripped off poor workers, and destroyed much of the natural enivironment in the name of profit. Those NGOs concerned with corporate responsibility (or the lack of it!) would at long last be able to challenge their power on a fair playing field as never before. With financial empowerment in TFE they would have a variety of business, and non-business tactics to make them more ethical, and ecologically more friendly as never before.

8. A Final Comment.

What has been presented here on Transfinancial Economics, or Non-Taxation Monetary Reform is only the tip of the iceberg. In the right hands, it will work wonders. Furthermore, it could prove to be very popular with people in general as it has all sorts of of social,ecnomic, and political benefits. Interestingly, the basic concept of Non-Taxation is not totally new but what is presented here is its most advanced expression.

Lastly, Humanity Politics which is associated with TFE is also in the process of research, and development.

Robert Searle is an independent thinker, and researcher.Apart from Transfinancial Economics, and Humanity Politics he is also doing another project entitled Multi-Dimensional Science which is concerned with an attempt to marry science with religion,and mysticism.

Hard Money

The Merriam – Webster Online Dictionary defines hard as:

1 a: not easily penetrated: not easily yielding to pressure b of cheese: not capable of being spread: very firm.

2 a: of liquor (1): having a harsh or acid taste (2): strongly alcoholic b: characterized by the presence of salts (as of calcium or magnesium) that prevents lathering with soap i.e.hard water.

3 a: of or relating to radiation of relatively high penetrating power: having high energy hard X rays b: having or producing relatively great photographic contrast i.e.a hard negative.

4 a: metallic as distinct from paper hard money b: of currency: convertible into gold: stable in value c: usable as currency i.e.paid in hard cash. d: of currency: readily acceptable in international trade e: being high and firm i.e. hard prices.

5 a: firmly and closely twisted i.e. hard yarns. b: having a smooth close napless finish i.e. a hard worsted.

6 a: physically fit i.e. in good hard condition. b: resistant to stress or disease c: free of weakness or defects.

7 a (1): firm definite i.e.reached a hard agreement. (2): not speculative or conjectural: factual hard evidence (3): important or informative rather than sensational or entertaining i.e. hard news. b: close searching i.e. gave a hard look. c: free from sentimentality or illusion: realistic i.e. good hard sense. d: lacking in responsiveness: obdurate unfeeling i.e. a hard heart.

8 a (1): difficult to bear or endure i.e.hard luck or hard times. (2): oppressive inequitable i.e.sales taxes are hard on the poor.

9 a: characterized by sharp or harsh outline, rigid execution, and stiff drawing b: sharply defined: stark i.e. hard shadows.

10 a (1): difficult to accomplish or resolve: troublesome i.e. hard problems.

As used in this article, hard money is intended to convey the idea that because of the current economic conditions, many financing needs will be more difficult to accomplish. They will require great exertion and effort to overcome the economic obstacles of the current economy. Compared to 2006 and 2007, periods of relatively easy money, to obtain financing today you will have to have firm, definite facts to support your financing needs. And the cost of money will be more difficult to bear. Hard money is harder to find, harder to obtain and harder to repay. Nevertheless, hard money may be an economic necessity as a means to an end to grow a business or complete a real estate transaction.

Why is 2008 a time of hard money? This is a difficult question to answer. If you ask 3 experts you probably will get three different answers. It may be the economic equivalent of The Perfect Storm- a True Story of Men against the Sea. The phrase “perfect storm” refers to the simultaneous occurrence of events which, taken individually, probably would be far less powerful than the result of their rare combination. These occurrences are rare by their very nature, so that even a slight change in any one event contributing to the perfect storm would lessen its overall impact. The stock market crash of 1929 and following depression exemplifies a perfect storm of economic consequence.

What are these events today? 1) The Mortgage Melt-down. Major financial institutions in the United States are incurring billions of dollars in losses due to the loss in valuation of their investments in mortgage securities. The consequence for borrowers is that these institutions are less inclined to take risks when loaning money for fear of additional losses. And their regulators are demanding that regulated lenders raise their credit standards for borrowers to qualify for a loan. 2) The devaluation of the American dollar versus other world currencies. The U.S. government is spending ginormous amounts of money in excess of what it collect in revenue due to the political compulsion to spend taxpayers’ money, the war in Iraq, Hurricane Katrina (and other natural disasters) and the war on terrorism. This makes our currency less valuable. It makes importing to the U.S. more expensive. The American people have less money to spend on goods and services, and their money buys less than it did a year ago because prices of necessities such as gasoline are higher. 3) The current tendency of Federal and State governments to reduce funding for social services, health services and education because of inadequate revenues; this hurts individuals and businesses who have less money to spend on products and services which creates additional drags on our economy. 4) The diminishing value of residential real estate all across the United States. This is related to the mortgage meltdown and the fact that many people incurred debts that they cannot repay. The real causes of these events are complicated and beyond the scope of this article. Suffice it to say that these are hard times and hard times create needs for hard money loans.

What exactly is hard money? Here are seven examples:

1) A commercial real estate loan where the borrower receives funds based on the value of the property, usually 50% or less, at an interest rate higher than a bank would charge. This is the most commonly understood type of hard money. In this financing, neither the income from the property or the borrower demonstrably supports the repayment of the loan.

2) A real estate loan to buy a residential property where the borrower cannot prove their income. This may be accomplished with financing from a seller, the only party willing to take the risk of non-payment.

3) A small junior lien on income producing commercial real estate where the first lien is very large. For example, a million dollar second lien behind a ten million dollar first lien. Most lenders simply do not want to consider a loan of this type because of the potential liability for repayment of the first lien. It is ten times the risk of the secondary loan.

4) Most loans to people with less than excellent credit. Many loans are based on credit scoring. If you do not have a credit score that is high enough for the lender’s requirement, you simply do not get their loan and you may or may not be able to find a hard money loan to accomplish your objective.

5) Accounts receivable financing to construction contractors, medical providers and sellers of agricultural products. Most factors do not offer to these sectors of the economy because of the risks and complexities that are involved.

6) Purchase order financing for items with gross margins less than twenty percent. The twenty percent margin is a benchmark for sufficient profitability in a transaction to pay all financing costs and create profits for the business after all costs are paid. During hard economic times margins are squeezed. It is a vicious cycle.

7) Loans to businesses that are particularly negatively affected by the current economy. For instance, a loan to build a new lumberyard is impacted by the downturn in new real estate construction and a lower need for lumber. Most banks would simply decline to consider such a loan. The same is true for developers seeking to build new housing tracts or office building developments. This is not a good time to try to start a new mortgage brokerage company; although it may be a good time to be a hard money lender provided that you are very, very careful in assessing your transactional risks.

What do all of these situations have in common? In times of easy money these situations would be less costly to finance and more likely to receive funding. Today, the lender’s answer to your request for funding is more likely to be a polite but strong “no way”. Many lenders have effectively (if not actually) shut their doors. Many lenders will simply decline to lend on hotels/motels, gas stations, owner/user properties, properties with any environmental issues. Borrowers who do not have FICO credit scores above 680, with substantial net worth and income will find it is very difficult to obtain many types of loans. Fortunately, the door for accounts receivable financing is still wide open.

The bottom line: Hard times in our economy will tend to force more individuals and businesses to borrow hard money- if they are able to get any money at all. Commercial financing with hard money will tend to grow as traditional sources of financing from banks and institutional lenders simply will not be available.

Causes and Effects of Deficit Financing

As we know, the major sources of public revenue are taxes, fees, prices, special assessments, rates, gifts etc., etc. If during a given period of time, the government expenditure exceeds government revenue and the deficit is met by borrowing, it is called deficit financing or income creating finance. In order to have a significant expansion effects therefore, a program of public investment should be financed by borrowing rather than by taxation. This kind of borrowing or loan expenditure is popularly called deficit financing.

Deficit financing is said to have been practiced if state adopts any one or all the methods mentioned below:

(a) The government draws upon the cash balances of the past.

(b) The government borrows from the central bank against government securities.

(c) The government creates money by printing of paper currency and thus meets the expenditure over receipts.

(d) The government borrows externally.

Deficit financing was considered to be a very dangerous weapon by the classical economists. The modern economists are, however, leaning towards it and recommend it to be used for accelerating economic development and achieving high level employment in the country.

The problem to be solved here is:

(i) Whether income creating finance should be adopted for increasing total effective demand.

(ii) If deficit financing is desirable for ensuring high level of employment, then to what extent should it be carried out.

(iii) What are its good and bad effects?

Deficit financing is being practiced by advanced as well as underdeveloped countries. The advanced countries use it as an instrument of increasing effective demand whereas the underdeveloped countries employ it for increasing the rate of capital formation.

The scope of deficit financing for accelerating economic growth in backward economy is very bright as they are caught in a vicious circle of underdevelopment. They use funds for investment when the resources of the country are not adequate to initiate the processes of take off. So arises the need for deficit financing.

The underdeveloped countries are confronted with the following problems:

(i) The rate of growth of population is faster than the rate of economic development.

(ii) The state revenue received through taxes, fees, etc., is not sufficient to provide full employment to the labor force.

(iii) The per capita income is extremely low and so is the capacity to save.

(iv) Foreign loans for development purposes are not without strings and are also not available in desired quantity.

(v) There is a dearth of stock of capital in the country.

(vi) People lack initiative and entrepreneurial ability.

(vii) People are mostly extravagant and there is less voluntary savings.

(viii) A greater portion of the population lives in villages and are contended with their lot.

(ix) The government cannot incur the displeasure of the people by enhancing the tax rates beyond a certain limit. It cannot also impose additional taxes for the same reason.

(x) Thus there is too much evasion of taxes.

Under the conditions stated above, the reader can easily visualize the state of affairs with which a government of the backward country is confronted. Still no government would like to be a silent spectator and would desire that the standard of living of the people should go up in the shortest possible period of time. It will try to find money from the blue if necessary for spreading economic development of the country. Here deficit financing comes to its rescue. The state uses this instrument for lifting the economy out of depression and for accelerating economic development in the country. If, however, the state can increase the volume of resources by increasing the tax rates, imposing additional taxes or mobilizing enlarged saving, then it is not desirous to adopt deficit financing as it is a very delicate instrument.

Easy Ways to Protect Your Personal Finances

While the economy has already certainly softened, there may be further economic contraction for American consumers to face. Increasing job losses, higher inflation rates, and the growing food and energy costs are making personal finance budgeting difficult for most American families to achieve. The variable interest rate of recent mortgages makes critical, and the prospects for personal finance do not look bright for the next several years.

However, an ounce of personal finance planning is certainly worth more than a pound of monetary cure. It is not too late to start preparing your personal finance budgeting efforts to brace yourself for further economic contraction – ensuring that when America does recover from its economic weakness, your personal finance will be intact and still healthy.

Debt management strategy: watch your interest rates

When economic uncertainty is on the horizon, interest rates are the first to react – making debt management critical. Powered by both the Federal Reserve rate and each banking institution’s tolerance, interest rates can either soar or plummet, depending upon several factors.

Whereas our interest rates were at historical lows, the Fed Chairman Bernanke made adjustments to the rate in order to curb inflation, while attempting to simultaneously stimulate economic investment. What does this mean for your debt management? In essence, banks will now offer you great interest rates if you have good credit, making your debt management easy. If you have bad credit, then banks will increase your interest rates, as the risk of a default grows greater during an economic contraction.

Therefore, for debt management that will prepare for further economic contraction, you want to lock in low interest rates, which will be easy for those who already have good credit. You can refinance your credit cards by consolidating your debts, or you can even renegotiate your interest rates with your existing credit card company.

For those who have less than stellar credit, you want to carefully watch your mortgages, loans, and credit cards to ensure that they are not raising your interest rates. You may be particular susceptible to interest rate hikes in further economic contraction.

Smart personal finance budgeting

Keep in mind that regardless of how much income you earn, the key to maintaining financial stability is through intelligent debt management and personal finance budgeting. Even if you earn millions, your spending habits and debt are what determine your financial stability. In preparing for a further economic contraction, it is important that you take several personal finance budgeting steps:

o Tally all of your required expenses including your mortgage or rent payment, car payment, health insurance, and utilities. There are the bills you must pay each month, and therefore, are part of your mandatory personal finance budgeting process.

o Allocate a set amount each month for groceries. Keep in mind that you should try to purchase everything “on sale” for smart personal finance budgeting. Research shows that simply by purchasing the brand that is on sale, you can save approximately 20% each time you go to the supermarket.

o Minimize your entertainment expenses. Smart personal finance budgeting means limiting how frequently you eat out, or spend money on entertainment. For example, if you have a four-person family and you typically watch a movie at the theater each week, cutting this expense out could save up nearly $200 each month. Or, brown bag your lunch instead of eating at the local sandwich shop. This small change in your personal finance budgeting can save you conservatively $150 per month. Just these two small changes alone in your entertainment expenses can give you an extra $350 per month for your personal finance budgeting.

o Set money aside for your savings. In a further economic contraction, the greatest, yet most probably fear, is losing your job. Therefore, by taking conservative approaches with your personal finance budgeting now, you can still set aside emergency funds that will help your family if times are difficult. Saving 10% of your income each month is a healthy, yet reasonable, amount to save in your personal finance budgeting.

The key to protecting your personal finance against any additional economic contraction is through smart debt management and intelligent personal finance budgeting. By taking several preventative measures now, you can ensure that your financial situation will remain healthy – regardless of what happens to the economy.

Finance, Credit, Investments

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.

We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

o The loaning of money may bear no interest;

o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o It may not bear no interest (if the assignment doesn’t foresee something);

o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

– economical development according to the key directions to the concentration;

– providing high rates of economical growth;

– raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

– less then 6 months – quick compensative;

– from 6 months up to the year and a half – middle termed compensative;

– more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.

As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.

Does Money Buy Happiness?

An enduring paradox in the history of humanity is that although the rich are significantly happier than the poor within any country at any moment, average happiness levels change very little as people’s incomes rise in tandem over time. The question of happiness is central to our lifestyles, religions and societies. It can be argued, in fact, that all that we do is ultimately for the conquest and increase of happiness.

Happiness is also a central tenet of the science of economics: the measurement of changes of income levels vis-a-vis changes in levels of happiness have been interpreted to mean that happiness depends on relative rather than absolute income. However, another interpretation is true, that is gains in happiness that might have been expected to result from growth in absolute income have not materialized because of the ways in which people in affluent societies have generally spent their incomes.

Considerable evidence suggests that if we use an increase in our incomes, as many of us do, simply to buy bigger houses and more expensive cars, then we do not end up any happier than before. But if we use an increase in our incomes to buy more of certain inconspicuous goods – such as freedom from a long commute or a stressful job – then the evidence paints a very different picture. The less we spend on conspicuous consumption goods, the better we can afford to alleviate congestion; and the more time we can devote to family and friends, to exercise, sleep, travel, and other restorative activities. On the best available evidence, reallocating our time and money in these and similar ways would result in healthier, longer- and happier-lives.

A case in point is Japan, which was a very poor country in 1960. Between then and the late 1980s, its per capita income rose almost fourfold, placing it among the highest in the industrialized world. Yet the average happiness level reported by the Japanese was no higher in 1987 than in 1960.They had many more washing machines, cars, cameras, and other things than they used to, but they did not register significant gains on the happiness scale. The same pattern consistently shows up in other countries as well, and that’s a puzzle for economists. If getting more income doesn’t make people happier, why do they go to such lengths to get more income?

It turns out that if we measure the income-happiness relationship in another way, we get just what the economists suspected all along. When we plot average happiness versus average income for clusters of people in a given country at a given time, we see that rich people are in fact much happier than poor people. The evidence thus suggests that if income affects happiness, it is relative, not absolute, income that matters. Some social scientists who have pondered the significance of these patterns have concluded that, at least for people in the world’s richest countries, no useful purpose is served by further accumulations of wealth. On its face, this should be a surprising conclusion, since there are so many seemingly useful things that having additional wealth would enable us to do. There is indeed independent evidence that having more wealth would be a good thing, provided it were spent in certain ways. The key insight supported by this evidence is that even though we appear to adapt quickly to across-the-board increases in our stocks of most material goods, there are specific categories in which our capacity to adapt is more limited. Additional spending in these categories appears to have the greatest capacity to produce significant improvements in well-being.

The human capacity to adapt to dramatic changes in life circumstances is impressive. We adapt swiftly to losses as well as to gains. Ads for the Provincial Lottery show participants fantasizing about how their lives would change if they won. People who actually win the lottery typically report the anticipated rush of euphoria in the weeks after their good fortune. Follow-up studies done after several years, however, indicate that these people are often no happier – and indeed, are in some ways less happy – than before. In short, our extraordinary powers of adaptation appear to help explain why absolute living standards simply may not matter much once we escape the physical deprivations of abject poverty. This interpretation is consistent with the impressions of people who have lived or traveled extensively abroad, who report that the struggle to get ahead seems to play out with much the same psychological effects in rich societies as in those with more modest levels of wealth.

So, therefore, the economic answer to the question as to whether money buys happiness must be in the negative. The evidence described earlier suggests that the satisfaction provided by many conspicuous forms of consumption is more context sensitive than the satisfaction provided by many less conspicuous forms of consumption. If so, this would help explain why the absolute income and consumption increases of recent decades have failed to translate into corresponding increases in measured well-being.

An Economic Perspective

If you are presently a Tenant anywhere in North America, before you plan to remain a Tenant you should read this Article. There are several good reasons for ownership to prevail over tenancy and the real estate profession is littered with extremely clever pointers as to why Tenants should buy – and buy now. But quite aside from all the hype characteristic of real estate sales, there are five solid economic reasons for Tenants to purchase instead of renting. Here they are:

CAPITAL APPRECIATION

Real estate appreciates over time. This is due to a variety of factors, the most important of which is that bare land does not depreciate. The economic rationale behind this is that bare land cannot depreciate because free, available land diminishes as population increases. You may not notice this immediately if you live right in the middle of the Sahara desert, but in urban environments everywhere there is no question that land is scarce and, in turn, pricey. What depreciates in real estate is the structure, such as the walls, plumbing and electrical circuitry. This is normal functional depreciation due to the constant use – and subsequent wear and tear of the place. But functional depreciation almost never offsets land appreciation, with the end result that even if you mistreat your property you still end up building up equity.

Capital appreciation applies just as well to single-family detached houses as to condominium units. The ‘land’ of a condominium unit is the strata lot, so that if you so happen to live – say – on the twenty-fourth floor of a highrise tower in downtown like I do, your condo unit still sits on a strata lot. And on the twenty-fourth floor your strata lot does appreciate while the structure of your condo is subject to functional depreciation.

RENT MATCHES INFLATION

Inflation, as it is widely known, is defined as the loss of purchasing power of money. Inflation is due to a variety of economic factors and political choices but no matter what our governments do – or fail to do – at any given time, it all boils down to increased borrowing and increased monetary supply and availability which, in turn, decreases the purchasing power of money. In layman’s terminology what this means is that it will cost tomorrow, for the sake of an example, ten cents more to buy a certain good in the economic basket than it does today. You still end up buying the same good, but you pay more for it.

These days inflation is not a problem in North America – at least not the way it used to be. But every year our currencies still lose value, albeit minimally: two percent in the United States and almost three percent in Canada on the respective currencies as of last year’s count. Rent typically increase at the rate of inflation, so that a tenant in Vancouver that was paying – say – CAD $1,000 per month in 2005 can expect to pay CAD $1,030 approximately in 2006. Rent paid is, in essence, the cost of just another service this time offered by a Landlord , and once the rent money is into the Landlord’s pockets it can never be recovered.

MORTGAGE CAPITAL AND INTEREST PAYMENTS

Naturally when you go buy a house and contract out a mortgage with a lender, you will have to pay interest because you are using someone else’s money. But every time you make your monthly mortgage payment you also pay back some of this money. This builds up your equity which then grows over time. Equity growth is typically more evident in the United States where mortgages are amortized in a straight line over the term of the loan. In Canada lenders are more complicated and apply a process known in the business as compound interest, i.e. interest on the interest. Still at about halfway through over a typical 25-year amortization span, in Canada too principal repayment takes over interest payment, so that equity growth builds up faster.

CAPITAL GAINS

Capital gains are not to be confused with capital appreciation, although they are a consequence of it. Simply put, there is a realized capital gain when the amount of money you sell your property for minus the price you paid for it is positive. The real estate market may fluctuate, but it is a matter of fact that house prices increase over time. Economic capital gains are adjusted for inflation and expressed in Dollar/Year. For instance, here in Vancouver a single-family detached home that sold in 1975 for CAD $57,000 in 1975 Dollars may very well sell today for CAD $525,000 in 2005 Dollars.

On a cursory count, CAD $57,000 in 1975 are equivalent to approximately CAD $80,000 in 2005, so that your economic capital gains from the time you bought the house in 1975 to the time you sell it in 2005 are the difference between CAD $525,000 and CAD $80,000 expressed in 2005 Dollars, or a whopping $445,000. You can easily determine from this example how much real estate has appreciated over time in my hometown, with the appreciation already adjusted for inflation.

PRIVACY AND CONTROL

In a Tenancy Agreement you are entitled to privacy typically for the period you pay rent for, subject to the Landlord’s rights. These rights include the Landlord’s right to inspect the tenanted premises on reasonable notice, the Landlord’s right to sell the tenanted premises, the Landlord’s right to repair and ameliorate and so forth. In essence, just because you pay rent that does not make you the owner. The rent simply guarantees your exclusive use of the premises for a certain period of time, again subject to the Landlord’s rights.

Likewise, in most cases you as the Tenant have no control over items such as remodeling, repainting and redecorating. It is true that in most jurisdictions Landlords have a duty to rent premises reasonably fit for human habitation, but then it is also true that many Landlords do not go one inch over and above the minimum threshold required by law. But from an economist point of view, if you spend money you should be entitled to reap the rewards – something you entirely miss out in a tenancy situation.

Too many tenants and renters think that owning a property is a farfetched goal. Yet, now more than ever it is the best time for them to take the plunge and buy real estate. Mortgage rates are still historically low and the buying process is easier than ever.

Promotional Products for Travel and Leisure

Choosing promotional products can be tricky for your business. The key however, is to make them as relevant to your business as possible. The next step would be to personalise them to make them not only attractive, but also to define them as representing your company. This can be achieved with a range of printing and design work, aimed to market the product to your target audience.

If your business is involved in the travel and leisure industry, then it goes without saying that you should be searching for relevant products. Thankfully, the market is awash with all kinds of promotional products geared up for every line of industry, large or small.

Travel and leisure encompasses a vast array of products, so you will certainly not be lacking for choice. The one problem will be selecting individual products from such a large list. Even so, having such a range can only be a positive thing.

If your business caters for a type of sport, then you’ll find an excellent amount of products and will be pleasantly surprised by what you can make your own and personalise. Just for golf alone, you can purchase tees, golf balls, gloves, ball markers, club covers, pencils, caps, socks and more still.

Other fantastic options in terms of more general travel and leisure would be luggage tags, bank card holders, travel toothbrush, drawstring bags, beach balls, water bottles, travel games, first aid kits, pool inflatables, travel cushions and pocket fans. The list just goes on and on. Take bottles for instance – this is a single item but one that has a hundred variants, shapes, colours and sizes. It is some task to narrow it down to one particular item, but one that will be worth it in the long run.

The vast amount of goods available out there for travel and leisure makes it a very competitive market and so choose wisely before you buy and not act on impulses alone. The cost varies greatly between each item and you want to try and get the best value for money as possible, without losing too much in terms of quality.

By using the best travel and leisure promotional products, displaying them well and having them printed with your company details, you stand a great chance for a successful campaign. Products like those described are a fantastic marketing tool for getting the word out there about your business.

The Best Deals of Travel and Leisure Magazine

Constant travelers who want to score the best deals in every continent that they step into should never do without a copy of travel and leisure magazine. This magazine which is well known as travel + leisure magazine provides the A lists of the best hotels, restaurants, wellness clubs, cruise ships, events and festivals, resorts and beaches, food and drinks, and other significant facts that are essential to the well-being of one’s travel itinerary. The travel and leisure magazine is a top rated, professional travel companion that would make sure you do not lose your way in every travel decision that you make.

The travel and leisure magazine used to be a compiled journal of travel photographs which placed emphasis on leisure travel and often features contributions from novelists, poets, travel columnists, artists, and avid travelers who are eager to share their acquired wisdom and serve as a helpful guide especially for those who are still neophyte in the realm of travel. The magazine publishes in a monthly basis and has several international editions such as China, Mexico, Russia, Turkey, and South East Asia though most of them were already defunct.

The magazine is famous for their World’s Best Awards which is announced every August and has been practiced since 1995. This is an award body created on a basis of an annual survey from magazine readers who gave out their quantitative rating of world’s best travel destination and accommodation. For the 2010’s survey of the World’s Best Awards, the travel and leisure magazine offers a chance to those who will take the survey of winning a $10,000 dream trip. This award has various categories namely hotels, islands, cities, airlines and cruises, wellness and spas and business hotels. These categories are featured on all continents that the travel and leisure magazine encompass such as US and Canada, Asia, Latin America, Africa and the Middle East, Europe, Caribbean, Australia, New Zealand, and South Pacific. Last 2009, the Bushman’s Kloof atop the Cedarberg Mountains in Western Cape, South Africa emerged as the record holder of the number one spot in the survey with an overall score of 98.67.

Aside from the World’s Best Awards, the travel and leisure magazine also has what they call T+L 500 Best Hotels and America’s Favorite Cities where subscribers and magazine readers rank cities in the U.S. based on several categories. The categories are very informative because it covers almost all the things that one needs to know in famous cities such as their culture, hotels, nightlife, shopping malls, food and dining places, and airports.

The travel and leisure magazine also provides educational articles that are full of ideas not just about traveling but also informative discussions such as books and movies, charity programs, sports and fitness, gadgets, arts and culture, and basic photography lessons.

For those who are interested in subscribing to the travel and leisure magazine, the publication is giving out two risk-free issues of the magazine.

Use a Travel and Leisure Magazine to Plan Your Getaway

Whether you are looking to find a romantic weekend for two or a week long getaway for the whole family, a travel and leisure mag can make your planning easier. You can find recommendations for destinations and hotels in the area, a list of things to do, and reviews on lodging, restaurants, and attractions. In addition, you can usually find special offers available only to the readers of the travel and leisure mag that can save you some serious money.

You can read your travel and leisure mag online, or purchase a copy at your local newsstand. Either way, you will find fascinating articles and a wealth of information. Many sponsor contests for the readers of their travel and leisure mag, so you just might win the trip you’ve been longing to take.

Detailed hotel reviews are to be found at almost every travel and leisure site. You can find out whether they are quiet, clean, and efficient, as well as whether they have restaurants or clubs on the premises. Any other services, such as valet parking, turn down service, concierge, and currency exchange will also be provided by the travel and leisure mag.

One of the best sources for information on cruises is a travel and leisure mag. You will discover which lines or ships provide the most activities for children and which ones are planned for adults. You can also find out whether cruises are planned for singles, couples wishing to take a second honeymoon, or the entire family from Grandma to toddler. Often, you can find discount coupons at a travel and leisure magazine online site that will make your cruise even more affordable.

A travel and leisure magazine can also provide recommendations for destinations that may not have been on your list, but are exactly what you are seeking. Perhaps you want to find a beach resort that is off the beaten track, affordable, and far from the crush of civilization. Browsing a travel and leisure mag may be able to provide you with a list of several destinations that fit the bill.

Even if your travel plans are many years in the future, you can still use a travel and leisure mag to plan the vacation you will someday take. Anticipation is half the fun, anyway, and a vacation that you take only in your imagination still offers some benefit to your psyche.

A travel and leisure mag is practically an essential for couples planning a honeymoon. Together they can search for potential destinations and select one with features of interest to both. They can compare hotel rates and amenities, learn how to reach their destination, and perhaps find discounts to make their honeymoon even more special.

You can also use a travel and leisure mag to plan a day trip for the entire family. Almost everyone has state or national parks, amusement parks, or museums within a few hours’ drive. The magazine will provide with information on location, hours of operation, cost, and what is offered. That way, you will know in advance what to expect when you take your crew out for the day or weekend.