What Is Deficit Financing?

What Is Deficit Financing? 7.1: Elaborate what you understand by deficit financing. What do we mean by deficit financing this is a strategy or ways to management of money which when spending is more than collected at the same period of time. In order words this is referred to budget deficit, this approach is used in business that is small, household budgets, in corporations and also in, governments sector mostly in all the level. If deficit financing is used in the right way it will help to launch a chain of the event and this will help in financing situation instead of any debt may cause problem or difficult to pay. Mostly common or know example of government deficit financing is how the government stimulate the economy of that country or nation to put a stop to any recession that country is facing. The government has a set aside a plan which will involved using borrow resources to purchase, the government can use different strategy like increasing demand output for product in all business sector of that nation. It also helps in the motivation of many business in o rder for them to hire more employees and it will reduced the level of unemployment in the country during the period of recession. Further more, the consumer confidence and trust will be restored in the market place because of the safe transformation, and these make it safe for the buyer to buy more goods and services. If the economy of a country in closely looked into and the deficit financing is carefully monitored, it will bring back economy stability in the country over short period of time like few month or few years. Deficit spending in economic does not only occurred in the government sector only but also in all business as well A company may plan to spend a certain amount of money as a kind of upfront thinking that they will be able to generate the fund back for investment .An investor or company owner may decide to buy a new machine for the company production with the hope that a new machine will hasten and make the production of goods in a less period of time with larger unit of goods, and with less cost. This kind of idea or strategy in business help the business to flourish and the manufacturer will be able to pay off his debt and have budget surplus instead of deficit, the owner of the business will be debt free and enjoy the surplus. 7.2: The limitations of Deficit financing being an instrument of economic development. In any given economy, there is a kind of between the government, project output There is always a time lag between Govt. investment and the output from the projects. If the government prints more money out it will cause inflation in that economy and this situation usually affected the poor people in that society. The rich will be richer and the poor will be poorer. The buyer straight will be reducing to greater level and the businessmen profit margin will increase. In any society there is always the people that have and those who do not have so any increase made in price domestics goods leads to importation of cheap goods and the domestic goods high price will reduced the export. This in turn leads to adverse in balance of payments. Never the less this will affect the cost of the production because the raw material used in process of production has being increased, so the goods will be increased as well, perhaps it will definitely reflect on foreign investment, it will be less attrac ted by other country. Listed below are the disadvantages of deficit financing and some other cogent reasons to be alert about a National debt. The interest Payment. In a society people do not lend to the government with the charity. Government must pay interest on every debt they are involved in just like any one in the society, it was recorded that last year government spent the sum of  £31 billon on interest payments alone. Looking at this in a perspective manner it will equate to 15 p on income tax. This amount is more than what UK spends on National Defense. The government borrowing for the year 2007/08 going to be  £42 billion same amount the government pays in interest. The Crowding Out. The government debt always affect the private sector because they sell bond to the private sector in order for the government to borrow money and this in turn lead to less private investment because the government has bombard them with the bonds. Also the private spending is more efficient than the government level of spending because the government result to inefficient spending .this is what we called crowing out, the private investor is crowded out with government bonds because the government needs to borrow the financial crowding out. The financial crowding out is when the government want to borrow large sum of money and they tried to increase the interest rate on bonds in order to attract many lender. The bonds rate is increased this will definitely put pressure on the interest rate generally, in order words this increase in the interest rate will affect the economy of that country because people will reduced their way of spending, investment level will be low and later run the economy growth will be low. The tax rises for the future. The tax rises for the future look into how the public sector debt is being paid. Any increasing public sector debts indicated that the future taxpayer will be the one to bear the burden by paying the bill. No matter the situation of the public sector debt reduced or not, the future taxpayer will be the one to pay the interest on the debts. Further this will a problem because, has it was mentioned above, changing of demographics show that government finances is usually placed under pressure, though without borrowing from at that moment of time. Limits Fiscal Policy In a normal situation the government should be able expand the fiscal policy in a situation where the economy is facing problem or recession. When a government has urge public debt they tried to reduced the scope by lowering tax in order to enhance demand. Then government must increase taxes and cut their spending in order to meet up with the budget .this is advisable because of the existing problems in the market economy. 7.3: Suggested recommendations to eliminate a federal deficit In summary, I like to recommend these three-step formulas for prosperity: 1) Elimination of federal taxes. It will good to cancel government taxes because when the citizen gives money to the government is just like throwing coals to Newcastle. Government is the maker of money, they are the producer that has no limitation to their production. . When the citizen sends taxes to the government, they just used it to pay debt. When you send your tax money to the government, the government simply uses it to pay down debt. When paying down debt it destroys the economy money in a given society. In order words taxes damaged money in the society. More so, the federal tax system is a waste of resources, it will be good if the government can spend the billions of dollars spent on compliance on production of useful goods for citizen and this will ease the problem of the economy and the people. Visualize millions of people shoveling dirt into a hole, while millions more shovel it out. That is our tax system. The first suggested tax that should be eliminated is; the Medicare taxes and Social Security taxes. These will be politically popular; also regressive taxes directly impact businesses on low and the middle income people. That politician that ends FICA will becomes a hero. This will give federal government the opportunity to create money to support retirement and health care sector. 2) Elimination of federal borrowing. Government being a producer of money, an established government will not need to borrow money. These are inefficient; they are harmful, the exercise which provides no economic benefit. The Federal government borrowing provides semantic impression that government is in debt, and people it find repugnant. If there no borrowing; there would not be debt. 3) Establishing a national, money-supply goal. It is good to organize a congress, a congress that will look into the checking account called money created, They will add money to this account when needed. They will write checks and make a kind of transfers from the Money Created account in payment for all goods and services. This will be the suggested system for federal money creation in our economy. The congress will be the one to determine on how much money to be added to the Money Created account, however giving Congress power over money creation. Thus, the Federal will continue to control the interest rates and inflation. The congress will spend what is necessary on retirement, the military health care, crime prevention, education, the infrastructure, and other national needs. The country will be free the tyranny of semantics and the problem of federal debt. This society prosper has rapid growth in their economy.

Chapter 2 Exercises & Case Exercises Essay

Exercises 1. Consider the statement: an individual threat agent, like a hacker, can be a factor in more than one threat category. If a hacker hacks into a network, copies a few files, defaces the Web page, and steals credit card numbers, how many different threat categories does this attack fall into? a. Overall, I believe this attack falls into four major threat categories: deliberate acts of trespass, compromises to intellectual property, technical failures, and managerial failure. Furthermore, I believe this attack would be categorized as a deliberate act of theft/trespass which compromises intellectual property due to technical and managerial failures. b. It seems as this hacker was deliberately causing harm (i.e. copying files, vandalizing the web page, and theft of credit card numbers); due to their method of entry – hacking into a network – it leaves me to believe there were some technical failures, such as software vulnerabilities or a trap door. However, that is just one possibility as to what could have occurred. This could have also been a managerial failure; say the unknown hacker used social engineering to obtain the information to gain access to the network – proper planning and procedure execution could have potentially thwarted this hacker†™s attack. 2. Using the Web, research Mafiaboy’s exploits. When and how did he compromise sites? How was he caught? c. Michael Demon Calce, also known as Mafiaboy, was a high school student from West Island, Quebec, who launched a series of highly publicized DDoS (denial-of-service) attacks in February 2000 against large commercial websites including: Yahoo!, Fifa.com, Amazon.com, Dell, Inc., E*Trade, eBay, and CNN. Calce also attempted to launch a series of simultaneous attacks against nine of the thirteen root name servers. d. On February 7th, 2000, Calce targeted Yahoo! With a project he named â€Å"Rivolta† – meaning riot in Italian. This project utilized a denial of service cyber-attack in which servers become overloaded with different types of communications, to the  point in which they completely shut down. Calce managed to shut down the multibillion dollar company and the web’s top search engine for almost an hour. His goal was to establish dominance for himself and TNT – his cybergroup. Over the next week, Calce also brought down eBay, CNN, Amazon and Dell via the same DDoS attack. e. Calce’s actions were under suspicion when the FBI and the Royal Canadian Mounted Police noticed posts in an IRC chatroom which bragged/claimed responsibility for the attacks. He became the chief suspect when he claimed to have brought down Dell’s website, an attack not yet publicized at the time. Information on the source of the attacks was initially discovered and reported to the press by Michael Lyle, chief technology officer of Recourse Technologies. Calce initially denied responsibility but later pled guilty to most of the charges brought against him – the Montreal Youth Court sentenced him on September 12, 2001 to eight months of â€Å"open custody,† one yea r of probation, restricted use of the Internet, and a small fine. It is estimated that these attacks caused $1.2 billion dollars in global economic damages. 3. Search the Web for the â€Å"The Official Phreaker’s Manual.† What information contained in this manual might help a security administrator to protect a communications system? f. A security administrator is a specialist in computer and network security, including the administration of security devices such as firewalls, as well as consulting on general security measures. g. Phreaking is a slang term coined to describe the activity of a culture of people who study, experiment with, or explore telecommunication systems, such as equipment and systems connected to public telephone networks. Since telephone networks have become computerized, phreaking has become closely linked with computer hacking. i. Example of Phreaking: Using various audio frequencies to manipulate a phone system. h. Overall, a security administrator could use this manual to gain knowledge of terms associated with phreaking and the in’s & outs of the process (i.e. how it is executed). However, the security administrator should focus on Chapter 10 – â€Å"War on Phreaking† – this section (pg 71-73) deals with concepts such as access, â€Å"doom,† tracing, and security. An administrator could reverse engineer this information to protect his/her systems from such attacks. 4. The chapter discussed many threats and vulnerabilities to information security. Using the Web, find at least two other sources of information on threat and vulnerabilities. Begin with www.securityfocus.com and use a keyword search on â€Å"threats.† i. http://www.darkreading.com/vulnerability-threats ii. Dark Reading’s Vulnerabilities and Threats Tech Center is your resource for breaking news and information on the latest potential threats and technical vulnerabilities affecting today’s IT environment. Written for security and IT professionals, the Vulnerabilities and Threats Tech Center is designed to provide in-depth information on newly-discovered network and application vulnerabilities, potential cybersecurity exploits, and security research results j. http://www.symantec.com/security_response/ iii. Our security research centers around the world provide unparalleled analysis of and protection from IT security threats that include malware, security risks, vulnerabilities, and spam. 5. Using the categories of threats mentioned in this chapter, as well as the various attacks described, review several current media sources and identify examples of each. k. Acts of human error or failure: iv. Students and staff were told in February that some 350,000 of them could have had their social security numbers and financial information exposed on the internet. v. â€Å"It happened during an upgrade of some of our IT systems. We were upgrading a server and through human error there was a misconfiguration in the setting up of that server,† said UNCC spokesman, Stephen Ward. l. Compromises to intellectual property: vi. Today we bring news of action against a site that supplied links to films, music and games hosted on file-hosters all around the world. Authorities say they have charged three individuals said to be the administrators of a very large file-sharing site. vii. To get an idea of the gravity local police are putting on the case, we can compare some recent stats. According to US authorities Megaupload, one of the world’s largest websites at the time, cost rightsholders $500m. GreekDDL (according to Alexa Greece’s 63rd largest site) allegedly cost rightsholders $85.4m. m. Deliberate acts of espionage or trespass: viii. The individual responsible for one of the most significant leaks in US political history is Edward Snowden, a 29-year-old former technical assistant for the CIA and current employee of the defense contractor Booz Allen Hamilton. Snowden has been working at the National Security Agency for the last four years as an employee of various outside contractors, including Booz Allen and Dell. ix. Snowden will go down in history as one of America’s most consequential whistleblowers, alongside Daniel Ellsberg and Bradley Manning. He is responsible for handing over material from one of the world’s most secretive organization – the NSA. x. Additional, interesting, read: http://www.cbsnews.com/8301-201_162-57600000/edward-snowdens-digital-maneuvers-still-stumping-u.s-government/ 1. The government’s forensic investigation is wrestling with Snowden’s apparent ability to defeat safeguards established to monitor and deter people looking at information without proper permission. n. Deliberate acts of information extortion: xi. Hackers claimed to have breached the systems of the Belgian credit provider Elantis and threatened to publish confidential customer information if the bank does not pay $197,000 before Friday, they said in a statement posted to Pastebin. Elantis confirmed the data breach Thursday, but the bank said it will not give in to extortion threats. xii. The hackers claim to have captured login credentials and tables with online loan applications which hold data such as full names, job descriptions, contact information, ID card numbers and income figures. xiii. According to the hackers the data was stored unprotected and unencrypted on the servers. To prove the hack, parts of what they claimed to be captured customer data were published. o. Deliberate acts of sabotage or vandalism: xiv. Fired Contractor Kisses Off Fannie Mae With Logic Bomb xv. Rajendrasinh Babubha Makwana, a former IT contractor at Fannie Mae who was fired for making a coding mistake, was charged this week with placing a â€Å"logic bomb† within the company’s Urbana, Md., data center in late October of last year. The malware was set to go into effect at 9 a.m. EST Saturday and would have disabled internal monitoring systems as it did its damage. Anyone logging on to Fannie Mae’s Unix server network after that would have seen the words â€Å"Server Graveyard† appear on their workstation screens. p. Deliberate acts of theft: xvi. Four Russian nationals and a Ukrainian have been charged with running a sophisticated hacking organization that penetrated computer networks of more than a dozen major American and international corporations over seven years, stealing and selling at least 160 million credit and debit card numbers, resulting in losses of hundreds of millions of dollars. q. Deliberate software attacks: xvii. China Mafia-Style Hack Attack Drives California Firm to Brink xviii. A group of hackers from China waged a relentless campaign of cyber harassment against Solid Oak Software Inc., Milburn’s family-owned, eight-person firm in Santa Barbara, California. The attack began less than two weeks after Milburn publicly accused China of appropriating his company’s parental filtering software, CYBERsitter, for a national Internet censoring project. And it ended shortly after he settled a $2.2 billion lawsuit against the Chinese government and a string of computer companies last April. xix. In between, the hackers assailed Solid Oak’s computer systems, shutting down web and e-mail servers, spying on an employee with her webcam, and gaining access to sensitive files in a battle that caused company revenues to tumble and brought it within a hair’s breadth of collapse. r. Forces of nature: xx. Websites Scramble As Hurricane Sandy Floods Data Centers xxi. The freak storm flooded data centers in New York City, taking down several major websites and services — including The Huffington Post, Buzzfeed and Gawker — that depended on them to run their businesses. xxii. Several websites stored their data at a lower Manhattan data center run by Datagram, whose basement was inundated with water during the storm, flooding generators that were intended to keep the power on. s. Deviations in quality of service from service providers: xxiii. China’s Internet hit by biggest cyberattack in its history xxiv. Internet users in China were met with sluggish response times early Sunday as the country’s domain extension came under a â€Å"denial of service† attack. xxv. The attack was the largest of its kind ever in China, according to the China Internet Network Information Center, a state agency that manages the .cn country domain. xxvi. The double-barreled attacks took place at around 2 a.m. Sunday, and then again at 4 a.m. The second attack was â€Å"long-lasting and large-scale,† according to state media, which said that service was slowly being restored. t. Technical hardware failures or errors: xxvii. A hardware failure in a Scottish RBS Group technology center caused a NatWest bank outage. xxviii. It prevented customers from using online banking services or doing debit card transactions. u. Technical software failure or errors: xxix. RBS boss blames software upgrade for account problems xxx. The boss of RBS has confirmed that a software change was responsible for the widespread computer problems affecting millions of customers’ bank accounts. v. Technological obsolescence: xxxi. SIM Cards Have Finally Been Hacked, And The Flaw Could Affect Millions Of Phones xxxii. After three years of research, German cryptographer Karsten Nohl claims to have finally found encryption and software flaws that could affect millions of SIM cards, and open up another route on mobile phones for surveillance and fraud. Case Exercises Soon after the board of directors meeting, Charlie was promoted to Chief Information Security Officer, a new position that reports to the CIO, Gladys Williams, and that was created to provide leadership for SLS’s efforts to improve its security profile. Questions: 1. How do Fred, Gladys, and Charlie perceive the scope and scale of the new information security effort? a. Charlie’s proposed information security plan aims at securing business software, data, the networks, and computers which store information. The scope of the information security effort is quite vast, aiming at securing each vulnerability – in addition to the aforementioned, the new information security plan also focuses on the company’s staff. Since extra effort will be required to implement the new managerial plan and install new security software and tools, the scale of this operation is quite large. 2. How will Fred measure success when he evaluates Gladys’ performance for this project? How will he evaluate Charlie’s performance? b. Gladys is appointed as CIO of the team, which is gathered to improve the security of the company due to virus attack that caused a loss in the company; I believe Fred will measure Gladys success by her ability t o lead, keep the plan on track (i.e. time management) and successfully sticking to the proposed budget. Charlie was promoted to chief information security officer, a new position that reports to the CIO; I believe Fred will measure Charlie’s success by his ability to implement the new plan, report his/their progress and the overall success of the new system. 3. Which of the threats discussed in this chapter should receive Charlie’s attention early in his planning process? c. Portable Media Management (Ex. USB, DVD-R/W) should receive Charlie’s attention early in his planning process

H&M: Target Costing and Business Model Essay

In the world globalization competitive increasingly environment, how is H&M’s business model maintain and enhance the competitiveness of high-speed growth? With the research of target costing and business model of system innovation theory, you can understand the H&M’s successful business. And you can understand to make much more profit by controlling target costing. Password 1: Accurately grasp and dig into the demand of the client value. Customer, this is undoubtedly the center of the whole enterprise. Philip Kotler , who from American Marketing From EMKT.com.cn think solving the problem in accordance with the conventional innovation of logic in such a competitive market is no longer applicable. But creative thinking that is based on customers showing growing charm. It is by the original alternative concept and product development to stimulate new markets and profit growth. Obviously, H&M is the master of â€Å"creative thinking† to customer demand, H&M noted that almost every shopper likes fashionable design and image of luxury clothes. But the vast majority of people have to wait until the clearance sale. Why cannot meet the customers demand of famous brand fashion design and cheap parity? According to the survey of professional organizations Verdict Research, the average price of clothing in 1995 fell 34%. But in the same period the number of women buying clothes has doubled. This suggests that consumers pay more attention to the fashion style. They buy more clothes, but wearing the times less. Meanwhile, the current consumer market is showing to the two extreme diversion state of â€Å"luxury† and â€Å"save money. In the â€Å"luxury† mode, consumers buy product and service of high quality, reflecting the personality characteristics and meeting the emotional needs at any cost. In the â€Å"save money† mode, consumers try their best to find low-cost but high-quality goods. These â€Å"contradictions† demand implies the desire of consumers for affordable fashion. H&M Fashion Group, which is to see the change of social structure and consumers, seeking to find crack password equilibrium point, creating a cheap fashion clothing brand positioning. It use the combination of its use of changing fashion and luxury quality and public evaluation to realize trafficking â€Å"fashion† like McDonald’s selling hamburgers.

The Classical Definition of a Tyrant

A tyrant—also known as a basileus or king—in ancient Greece meant something different from our modern concept of a  tyrant as simply a cruel and oppressive despot. A tyrant was little more than an autocrat or leader who had overturned an existing regime of a Greek polis and was, therefore, an illegitimate ruler, a usurper. They even had some measure of popular support, according to Aristotle. Before Turannoi Were Tyrants: Rethinking a Chapter of Early Greek History, by Greg Anderson, suggests that because of this confusion with modern tyranny, the perfectly good Greek word should be removed from scholarship on early Greece. Peisistratus (Pisistratus) was one of the most famous of the Athenian tyrants. It was after the fall of the sons of Peisistratus that Cleisthenes and democracy came to Athens. Aristotle and Tyrants In his article, The First Tyrants in Greece, Robert Drews paraphrases Aristotle as saying that the tyrant was a degenerate type of monarch who came to power because of how insufferable the aristocracy was. The people of the demos, fed up, found a tyrant to champion them. Drews adds that the tyrant himself had to be ambitious, possessing the Greek concept of philotimia, which he describes as ​the  desire for power and prestige. This quality is also common to the modern version of the self-serving tyrant. Tyrants were sometimes preferred to aristocrats and kings. The article, ÃŽ ¤Ã Ã ÃŽ ±ÃŽ ½ÃŽ ½ÃŽ ¿Ãâ€š. The Semantics of a Political Concept from Archilochus to Aristotle, by Victor Parker says the first use of the term tyrant comes from the mid-seventh century B.C., and the first negative use of the term, about a half-century later or perhaps as late as the second quarter of the sixth. Kings vs. Tyrants A tyrant could also be a leader who ruled without having inherited the throne; thus, Oedipus marries Jocasta to become tyrant of Thebes, but in reality, he is the legitimate heir to the throne: the king (basileus). Parker says the use of tyrannos is common to a  tragedy in preference to basileus, generally synonymously, but sometimes negatively. Sophocles writes that hubris begets a tyrant or tyranny begets hubris. Parker adds that for Herodotus, the term tyrant and basileus are applied to the same individuals, although Thucydides (and Xenophon, on the whole) distinguishes them along the same lines of legitimacy as we do. Greg Anderson argues that before the 6th century there was no difference between the tyrannos or tyrant and the legitimate oligarchic ruler, both aiming to dominate but not subvert the existing government. He says that the construct of the age of tyrant was a figment of the late archaic imagination. Sources Before Turannoi Were Tyrants: Rethinking a Chapter of Early Greek History, by Greg Anderson; Classical Antiquity, (2005), pp. 173-222. The First Tyrants in Greece, by Robert Drews; Historia: Zeitschrift fà ¼r Alte Geschichte, Bd. 21, H. 2 (2nd Qtr., 1972), pp. 129-14 ÃŽ ¤Ã Ã ÃŽ ±ÃŽ ½ÃŽ ½ÃŽ ¿Ãâ€š. The Semantics of a Political Concept from Archilochus to Aristotle, by Victor Parker; Hermes, 126. Bd., H. 2 (1998), pp. 145-172.