Will you have blood running in the streets? A guide to navigate the maze of the current economic crisis in the euro
Another week before they implode the euro, or so at least we are told for the thousandth time. More likely is that the ECB do just enough to keep the show, which follows the 
fiscal austerity and intensified the riots and unrest in the streets of Madrid, Athens, Rome and Paris. Like the movie, “There Will Be Blood” before there is a shift toward growth-oriented policy significantly in the Eurozone.
Given the troubles in the Eurozone, how is that the euro remains relatively robust? A currency that is supposed to disappear a few weeks, should not be changed and almost at parity with the dollar? Continues to surprise the divergence between opinion and actual market action. With all the talk of the possibility that the euro will evaporate before Christmas, it is surprising that the currency remains stubbornly stable at around 1, $ 34, substantially above the den of 1, $ 20 recorded in May 2010 (when almost everyone predicted the immediate parity with the dollar).
For this reason, we also have a paradox on the other side: Every time appears the possibility of an immediate solution to the problems posed by the euro, the euro strengthened. After all, perhaps not so surprising that one thing, but for the fact that the solution in which almost everyone agrees â € “namely, a more holistic sustained and 
purchase of bonds by the Bank European Central Bank (ECB) â € “is presented as a” quantitative easing “[American style]: What we are not told over and over again that” quantitative easing “means” print money “, which would bring a depreciation of the currency? Is not that what they repeated last year who opposed the program of “quantitative easing” of the U.S. Federal Reserve?
Of course, in the case of EMU, the ECB president, Mario Draghi, insists that the bond purchase activity will not be made without following the proper “sequence”, what he means: first, fiscal austerity, then and only then, buying bonds. The effect of the former override any impact of the latter, as the “channel of inflation” (to the extent that inflation) can only come through fiscal policy. And indeed, caught in the jaws of a severe recession, the cuts proposed by client governments of Italy and Greece (along with the renewed assault on President Sarkozy to the French welfare state) almost certainly exacerbate the deflationary pressures now operating deep in the Eurozone. In the end, no doubt, that social instability will generate more background and more blood, but the impact on the euro itself would be negligible.
What is really happening now with the euro?
What is really happening now with the euro? Take a little distance from the talk of panic. The latest data from the COMEX (Commodity Exchange, Inc.) suggest that speculators are very short euros, despite which, the currency has fallen less than 10% from its recent levels higher. The question may legitimately be asked is this: to what extent the current fiscal austerity will lead to greater deficits, which in theory would lead to a weaker euro (to the extent that the euro would be “easier to get”)?
I have been raising this issue for some time: why the return remains a strong currency, despite the accretion fiscal deficits.
For now, purchases of bonds in the secondary market by the ECB are operationally sustainable and non-inflationary. If the ECB begins its operation purchase of bonds, debt sales are limited simply to displace net financial assets of which is holding the “economy” from the liabilities of the national states to the liabilities of the ECB by way of clearing balances at the ECB. Note that this process does not alter or “flows” or “net stocks of euros” in the real economy.
As Warren Mosler and I have argued for some time, while the ECB to impose terms and conditions of austerity, its bond purchases will not be inflationary. Inflation for that channel is spending. However, in this case, the support of the ECB has only reduced spending by way of imposition of fiscal austerity. Mr. Draghi has made it explicit now, which almost certainly is the quid pro quo for tacitly supporting a proposed expansion of 
the Secondary Market Program (SMP, for its acronym in English). And reduced spending means reduced aggregate demand, which in turn means low inflation and a stronger currency. We also know, and no less an authority than the source BIS (Bank for International Settlements, for its acronym in English, ironically the same as “Blood in the Streets” blood in the streets …) that banks can provide reservations, so that the increase in reserves in the banking system can not be inflationary per se, as, instead, insist on alert over and over again the Weimar hyperinflation of megaaltavoces.
One may note now in the retail channel, despite the rapid weakening of the economy now (Europe is now almost certainly in recession), we are not seeing a lot of deterioration of current account deficit in the Eurozone. The truth is that the eurozone economy appears to be a remarkably self-contained and, in a sense, mercantilist, fed less likely to matter when the economy slips. Thus, even as imports decreased, trade deficits also decline because of falling demand. Exports do not fall and may even rise, in this type of environment. All this helps the euro.
The ECB, inflation threats and expansion of the bond-buying program
As to what might happen if the ECB significantly expand its program to buy bonds on the secondary market, the idea that the euro would fall is twin to the idea that the dollar would collapse with the second program of quantitative easing Federal Reserve. And if that inflation was easing, Japan would be found now undergoing a process of hyperinflation, with the U.S. to its rear.
There is no sign that the purchase of government bonds denominated in euros from the ECB has resulted in some type of monetary inflation: anything but rising deflationary pressures can be seen in this ongoing debt implosion. The reason there is no inflation resulting from the purchase of bonds by the ECB is that all it does it is to move the titles of investors who are holders of public debt of the national states to the ECB’s balance sheet, which is not alter anything in the real economy.
But the question again and again arises when one calls for a larger institutional role played by the ECB if this could be detrimental to the balance of the ECB. The answer, from the point of view of modern monetary theory is: NO. No, because if the ECB buys its bonds, then, by definition, the “spenders” will not fail. The truth is that, as a supplier of monopoly euros, the ECB could easily set the rate at which you buy bonds (say, 4% for Italy), and could eventually recover their capital through the benefits they receive for the purchase of debt in trouble (not that the ECB needed capital in an operational sense, as usual in the eurozone, it is a political issue). To some extent she is right to Professor Paul de Grauwe, once convinced of the seriousness of the ECB point to solve the problem of solvency, the markets begin to buy back bonds leaving, indeed, that the ECB will do for them work harder. A hamstrung these levels, no bond would trade unless it resolves the issue of solvency, which the ECB can easily do if he tries. But that is a matter of political will, not of “sustainability” operational.
The great irony of our times
Thus the great irony of our times turns out to be this: while there is nothing that the ECB can do to cause monetary inflation, even if it is proposed, the ECB, fearing inflation, declines in the purchase of bonds that could eliminate the risk of solvency of the nation states but not to slow deflationary monetary forces now underway.
All right, now, who bears the loss? Assuming that the bonds do not expire simultaneously, it is beyond question that a bank sells a bond in the distorted levels today could have losses, and whether the losses were large enough, then the banks in this situation may well be in need of recapitalization program. In this scenario, Germany would suffer a setback, like any other state to use such resources to recapitalize national tax. A more serious setback, since the Germans are pushing the crisis to the limit.
The idea that the ECB is restricted in terms of capital is an idea sickly
But this is a separate question of whether the bond-buying program, per se, would threaten the balance sheet of the ECB. Well, no, a huge transfer of income from private bondholders to the ECB, by way of sale, it just means that the ECB may make its capital base through the benefits that made the sale of these bonds in trouble . Again, the idea that the ECB is restricted in terms of capital is an idea unhealthy.
Instead, the status quo is harmful for everyone, including Germany. The persistent refusal of Germany to a more active and expanded role for the ECB as a lender of last resort, with its insistence on removing vanílocua greater losses in the private sector contribute much more to damage the credit standing of Germany that policy measures in the practically coincides recommend everyone in Europe. Why would you buy a European bond any private bondholders with a minimum of fiduciary responsibility, knowing that the rules have changed and that the private buyer could end up meeting with losses imposed unilaterally? The only good news is that, finally, seem to begin to recognize the dangers of this way of seeing things. For the Wall Street Journal:
“Mrs. Merkel said on Thursday left reconsider its emphasis on the loss of the bondholders ‘We have a draft for the European Stability Mechanism to be changed in light of the developments’ in the markets financial statements from the decision to restructure the Greek debt in July, said after his meeting with Austrian Chancellor in Berlin.
More on
The Reserve
Mario Draghi
Angela Merkel
Jean-Marie Le Pen
Marine Le Pen
“Austrian Finance Minister, Maria Fekter, at a conference in Hamburg on Friday, was more direct:” The confidence in Treasuries was destroyed to the point to involve private investors in the debt relief, which is there is still amazing that he is willing to buy a government bond, “said Ms Fekter.”
Political unsustainability of the position of Germany
There are other issues that become increasingly untenable position of Germany, notably on the political front, and most particularly, in the rising tensions between France and Germany. Wolf Richter notes that virtually all French candidates for President of the Republic advocated a more aggressive role for the ECB. If Chancellor Merkel believes he has now achieved a break with Sarkozy, is soon likely to have to deal with François Holland, the Socialist candidate, a favorite in all the polls, and calls for a 5-point plan that is anathema to the ruling coalition in Germany:
1) Expand as much as possible the European Financial Stability Fund (EFSF).
2) Issuance of Eurobonds and domestic liabilities distribution among all countries of the Eurozone.
3) Let the ECB to play an “active role”, ie to buy European sovereign debt.
4) Instituting a tax on financial transactions.
5) Launch growth initiatives, instead of applying austerity measures.
As noted by Richter, points 1), 2) and 3) are unacceptable to the political elites who decide in Berlin. Even more radical socialist candidate’s views Arnaud Montebourg, who has spoken openly of “the right Prussian annexation of the French right.”
Do not walk much better things in the right side of the political spectrum. French President Nicolas Sarkozy at risk of being overwhelmed by the National Front leader, Marine Le Pen (daughter of Jean Marie Le Pen), which is building an application explicitly anti-European with increasing carrying capacity, as the new French policies austerity continue to undermine economic growth. In their futile attempt to maintain the AAA credit rating of France with increased fiscal austerity measures, Sarko you risk that the firecracker explodes in his hands, as the most likely effect of such measures will be the rise of French unemployment to double figures digit. Pay homage to the moods of Moody’s, Fitch and S & P through fiscal austerity is the economic equivalent of negotiating a peace treaty with al Qaeda.
What happens if you decide to leave Germany, the Eurozone
It’s true: Germany could well decide that until we have reached that the actions of the ECB ride as much as “printing money” and begin a process of abandonment of the eurozone. But let’s be clear about the consequences of undertaking such a course of action is most likely that Germany suffered in huge trade shock, especially as his aversion to “fiscally wasteful behavior” would condemn to higher levels of unemployment (unless your suddenness experienced government road to Damascus conversion to Keynesianism, which is highly unlikely), or return to its old policy of buying dollars. It could also affect the living standards of the average German, for the great German industry bought into the monetary union with the idea of preventing chronic once devaluing their own currency, such as Italy, they used the policy to achieve greater share in world trade at the expense of Germany. Faced with the loss of market share, German transnational corporations might simply move their factories to the southern European regions to retain market share and cost advantages, or, as a last resort, to use the threat of outsourcing to pressure low salaries and related costs in return for staying in Germany. At that point, you would also blood on the streets of Berlin.
It is, indeed, doubly ironic that Germany punish their neighbors as “spenders”, but depends on the “lifestyle beyond one’s means” of these to produce a trade surplus that allows the German government to incur in lower budget deficits. Germany is, in fact, structurally dependent on the dis-savings of others simply to grow. Current account deficits in other parts of the euro area are absolutely necessary for the German creamiento. It is the height of hypocrisy that the German protest against the excessive spending of the southern countries, where the excess of spending all that has allowed the German economy grow. It is also fool the Germans argue for a tough austerity for the southern countries and interfering in their potential spending without falling even realize that it’s going to end up reverberating in Germany itself.
Merkel plays a high-risk poker
Needless to say that Chancellor Merkel does not have to be fully aware of all that. You just said that the allegations, according to which Germany seeks to dominate Europe, seem “extravagant”. But for any target audience is clear that the political quid pro quo for greater involvement of the ECB in the resolution of the national credit crisis in Europe is the German control of the fiscal performance of countries like Greece, Italy, etc.. Mario Draghi is Italian, but the head of the ECB is playing a game of chicken German [1] is taking exactly the strategy the political director Angela Merkel, Klaus Schüler, designed a few weeks ago: to extort the weak countries ” Club Med “commitments for fiscal union in exchange for making the ECB in a lender of last resort. So, while many Germans might want to believe that euro zone smaller and more cohesive, without profligate countries, the fact is that political elites recognize that a “United States of Germany” under color of a United States of Europe , are ready to actually realize its aspirations to dominate Europe politically and economically. That is why we are seeing the draft agreement, under which a more involved ECB is the quid pro quo for increased German control of fiscal policy across the Eurozone. It is equivalent to the golden rule: “Whoever pays, boss.”
Play poker is a high risk: a bluff end leading to more bloodshed, very pertinently observed by my friend Warren Mosler in a recent article:
“There is no plan B. They simply raise taxes and cut spending, even when those policies lead to higher deficits, not less. So, while it addresses the problem of solvency and funding, the relief does not last to the extent that funding is conditional on the current austerity and negative growth. And austerity is unlikely to persevere, but intensified, although the Eurozone has already slipped into recession. From what I can see, it follows, as well it therefore impossible for the ECB to finance and at the same time, soaring deficits rule necessary for recovery. In this case, the only thing that can lead to austerity is blood in the streets, and in sufficient quantity to chaos and trigger a change in the way of governing “(italics are mine, MA).
The U.S. Federal Reserve can do nothing to save the Eurozone
By the last: the suggestion [recently made by economist Dean Baker and Mark Weisbrot of the CEPR, NT] that this terrible dynamic could be slowed by the U.S. Federal Reserve acting as a global central banker of last resort seems stupid. As noted by Bill Mitchell in a written note in recent days:
“Today, 1 Euro = 1.3294 U.S. dollars. So simply buy government debt PIIGS countries to finance their deficits in 2010 would have required the Federal Reserve sold 347.034 million dollars, which is about 5, 8% of U.S. GDP during the last four quarters. abnormality is an injection of U.S. dollars in the global currency markets.
“The volume of expenditure that would be needed would be even greater than the estimates made here. This means that to really solve the crisis of the euro, deficits in (probably) all the nations of the European Monetary Union have to grow substantially.
“What do you think would happen to the value of the dollar? The answer is that a very significant collapse. Speaking of global meltdown may be more appropriate to talk about fall … At this point in the crisis, nothing is can win with a massive depreciation of the dollar and inflationary impulses that a depreciation of such large size would most likely result. ”
Blaming the Fed not to support eurozone bonds is like blaming a bystander not to stand in the path of a bullet when you see someone take a gun and shoot another person. Who is shooting who has the ultimate responsibility. For this reason, the euro crisis is a crisis that is rooted in the ill-fated financial architecture of the eurozone â € “nothing less than just admit Jacques Delors world-europe-16016131) â € “and can only be settled by Europeans, and specifically by the ECB, which is the only institution capable UME spend without resorting to pre-financing, and that because of the fatal institutional design of monetary system that was imposed on Member States to the birth of the union.
Trojan horses do not masquerade as Greek
This is Mario Draghi accept the German political quid pro quo: to act, insists on greater fiscal austerity as a condition, which so sick wicked brings deflation in these economies, their subsequent fall into the pit and generation of even higher deficits. Needless to say, that’s one reason why Germans are so comfortable with the appointment of an Italian for the ECB. Apparently, in these times, Trojan horses do not come dressed in Greek. A Europe in countries like Italy and Greece become client states of Germany offers much more effective results for Germany than, say, do the same by another destructive World War.
________
NOTE T.: [1] The “Game of Chicken” is a mathematical structure of the theory of strategy games in which players have preferences similar to those of two cars traveling at full speed in the same direction and in opposite directions, set out to win by way of intimidating another, to get that first section of the road, leaving the way open for the winner. The loser is the “chicken.” If both have the game until the end, the two engaged in not being the “chicken” that names the game, the result is a clash castastrófico, and probably the death of the two players.
Family businesses, a brake for Italy
by By STACY Meichtry and DEBORAH BALL
PRATO, Italiae € “Dell 8217; Orco, 64, head of the recycling machine factory in Tuscany. Among the various factors that hinder the growth of the company are strict labor laws and an inefficient legal 8220, under which it becomes difficult to work if one is .com / # 8221, he says.
The lack of growth in family businesses such as Dell & 8217, Orco is a huge obstacle for the country more dynamic, especially at a time when Italy urgently needs to pay a higher growth its $ 2, 6 trillion (million million) of debt.
In one of his first speeches after being appointed prime minister of Italy, Mario Monti said the country needs to make a huge effort to revive growth. 8220; We owe it to our children 8221, he said.
Credit rating agencies Moody8217; s and Standard & Poor8217; s noted the lack of growth in Italy as a major obstacle to lower your debt when it lowered its rating a few weeks ago. The European Central Bank (ECB) asked Rome to remove the procedures that prevent the recruitment and expansion of companies.
Today, Italy’s economy is only 3% larger than a decade ago. Many factors have contributed to the stagnation of the country from his battered education system to the low employment rates among women, young and older adults. However, some economists say the main reason is that the private sector consists mainly of small family businesses who seem unable to grow.
The unions, meanwhile, oppose government proposals to loosen labor laws of Italy and threatened to paralyze the country if such measures are adopted.
Behind the atrophied companies in the country are the habits and fears of a long list of family businesses that clings to the control of their companies until the end of his days. Surrounded by a tangle of regulations and legal restrictions, many families have learned to survive in business within networks of trusted customers and suppliers, rather than take risks with outside firms.
& # 8220; Such companies are less likely to innovate, participate less in research and development and rarely penetrate emerging # 8221;, said in a Mario Draghi recent speech by ECB President and former head of Bank of Italy.
Italy’s economy has traditionally relied on an exchange rate to fall and rising public debt. Now that none of these options is available, the country needs a growth based on increasing the productivity of companies.
Italian companies traded are relatively few. According to the Italian Stock Exchange, the number of domestic firms in stock markets fell from 336 in late 2008 to 326 at present.
The prevalence of small businesses is a central issue in the crisis economies of southern Europe. Businesses with fewer than twenty workers employ about 60% of the labor force in Italy and Greece, 50% in Spain and Portugal, 30% in Germany and 20% in the U.S., according to the Organization for Economic Cooperation and Development ( OECD).
More on
Mario Draghi
Mario Monti
Silvio Berlusconi
Bank of Italy
World Bank
The legal and regulatory environment in Italy discourages firms to take a leap in size, according to new research. Companies need an average of 258 days to get approval to open a new warehouse, compared with the 26 days required in the U.S., according to the World Bank. A businessman who went to court to enforce a contract must wait an average of 1,210 days for resolution, compared with about 300 days in the U.S. or France.
As a result, employers prefer to deal informally with people they know, rather than relying on the public if something goes wrong. Therefore, keep their small businesses, even when they have the opportunity to grow, says economist Magda Bianco Bank of ; The inefficiency of the judicial system is a widespread problem & 8221, he says.
Family firms in Italy peaked in the decades of the 50 and 60, amid the country’s economic miracle after the Second World War. Small manufacturers were installed around cities like Turin, home of the automaker Fiat SpA, or in small towns like the Tuscan textile center of Prato. However, business owners ran their fiefdoms and companies rarely merged to gain economies of scale.
Orco & Villani, the recycling machine company founded by his grandfather.
In the decades of 80 and 90, many Italian manufacturers expanded abroad, taking advantage of the devaluation of the lira to compete on price against foreign rivals. That advantage disappeared when Italy adopted the euro and low-cost rivals from emerging economies like China and India, have gained ground.
It should be noted that many of the most successful companies â € “as the rule of fashion Giorgio Armani €” began as family businesses or remain under the control of their founders or heirs.
A 2003 effort to relax labor laws by introducing temporary contracts left the most highly regulated and protected jobs, while younger workers are increasingly in a precarious position in the short term. They have been impacted by the recent recession, with youth unemployment rate is 29%.
Former Prime Minister Silvio Berlusconi had promised to reform labor laws and tax some that inhibited recruitment. However, reversed face of opposition from small business associations.
Now, Monti will have to get enough parliamentary support to push labor and tax reforms encountered strong resistance from some time in Italy, including small business owners who fear that deregulation and increased competition finished with them.
# 8220; The model of family entrepreneurship in Italy is a failure, but nobody wants to admit ;, Enrico Ceccato Case, who runs a investment fund. 8220; We are nearing the end of the road. These companies are 8221, he adds.
â € “Alessandra Galloni contributed to this article.
Soyou liked the article and the topic of the blog, please be very interesting for all of us to leave your comment.
In addition, you can receive all the full articles in your email inbox by entering your email address in the subscription option on the home page. Your e-mail address will be used only to send you the blog updated daily. Thank you very much for joining us.
You can find more material related to this, our SMEs Big Blog
It should help, but not create dependency
For ricardo1980
Sharing is certainly a wonderful thing if we do primarily with real love, when we help people overcome by a feeling of joy and happiness, but you have to do to become a help and not a burden after carrying hate.
When you look at the history of millions of winners in different areas, we see that in many adverse situations with real people desire, faith and determination have been overcome obstacles to become successful people and good.
What was the first step of such people to overcome? It was the belief in themselves, the true, I know I can, God has given me gifts and power to initiate changes in my life, I will fight to get it, and so on. This is called character and a deep desire to excel.
Now you tell me you’re reading this article you are an incompetent, can not read! How did you feel? Of course, if someone tells you that anyone would feel bad even for a moment, what most do not realize is that thousands do not develop because there are other limiting and chain makers.
Many times I feel sorry for the way they treat certain groups, they begin to speak with words of sadness, poor things!, This gives pain!, What happens is that people begin to feel as victims of society, Government, their families, and so on. To that extent nothing will change for these people because they believe they are persecuted by the circumstances.
Every time you treat someone as incapable of solving their own problems is perpetuating mediocrity, you should not do that!, You really should believe in people, help them fulfill their dreams, all the time say they are very able, they begin to act and change their lives right now, give them motivation and see how these people begin to make progress.
More on
Government
I was born in a developing country and follow me pain and making the same mistakes over a century ago, see people as incapable and continue taking things for nothing, can change someone when all you get without effort? It is too improbable, these are the typical people who today thanked them because they gave 100, but then curse because now it does not take 200.
It is also important to clarify that it is insensitive and we know that there are situations such as health emergency or natural disaster, there is different because the solutions required are immediate and you must cooperate within their means.
What do I do to help? Well as we said Andrew Corentt in his book I Am Happy, I am rich you must provide opportunities for people with this initiative, the people will begin to develop itself, look for a job, help low-income people to study, but in Based on results, buy their products, knowledge for these people to learn how to create wealth in their lives for themselves. Then you’re doing good, through reading the book I’m happy, I’m rich you will learn the most powerful techniques for personal development, you know that has an extraordinary power that is capable of removing any critical condition and carry on the path of great success.
Everyone, without exception, have fallen into the comfort and realize that maybe we’re doing something wrong but no one bring us well and that we can become an integral part in our lives and then defend at all costs.
You must teach people that the abundance there, the opportunities are for people based on the search effort and discipline, all desire can be realized, life is wonderful, you just need to believe in the depths of our being , convince yourself of this, visit:
Some tips for entrepreneurs to start
A few days ago, we invited the submission of the second book published by Initiator , a community of entrepreneurs in technology, which comes just one year after the publication of his first book: ” Tips for Initiating Investors . ”
The new book is titled ” Tips entrepreneurs to start “, and it participated in an altruistic way few successful entrepreneurs, which include: Agustín Cuenca (ASPgems), Alvaro Cuesta (AjeMadrid), Carlos Blanco (Group ITNet) Carlos Barrabés (Barrabes) (Carlota Mateos (Rusticae), Catherine Hoffman (Vitalia), Didac Lee (Inspirit), Diego Ballesteros (SinDelantal.com), Enrique Dubois (Mola.com), Elena Gomez (Adigital), Elisa Queen (Petuky.com), Gustavo García Brusilovsky (BuyVip), Ismael Muñoz (Natura 2000), Jesus Alonso (restaurantes.com), Jesús Encinar (idealist), Jimena Llopis (Uplaya.com), Jordi García-Par Collell and Mila (eyeOS), Jose Cerdan (Acens), Juan Luis Polo (Creative Planning), Marta Esteve (Rentalia and TopRural), Max Oliva (Hub Madrid), Rafael Jimenez (Desmark), Ricardo Galli (Digg), Ricardo Lop (steels Hispania), Sebastián Muriel (Myspace), Xavier Verdaguer (Innovalley).
I recommend reading this book, you can download Bubok, and where you can find a wealth of tips brave when your company move forward. These tips are the result of many years of experience, shared by these professionals. To motivate you forward some of the most important that can be drawn from the book:
Whether you think you can, as if you do not think you’re right: When embarking on personal conviction is most relevant.
To be a successful entrepreneur you must be a good communicator and salesman . You are the public relations company.
The Pact partners is essential to clarify positions from the start and avoid future problems.
The Communication is an essential tool for any project to succeed.
Networking , a weapon of mass creation of value for the entrepreneur, nothing is even close to the immeasurable value they bring people and any time you can cross some to be a key point in your project.
The error management is quite complex, we have to do is use it as a source of learning and approach it as a failure.
The Passion : Your project must therefore be ilusionarte your life.
Find the WOW effect : focusing all your attention on being useful to solve a problem and more. Get users to talk to you without investing in advertising.
The greatest need of the entrepreneur, the idea above, equipment and funding, is to not be the only fool who wants to transform this concept into the project and the project company , in fact .
The essential component in any start-up is the perseverance , the more you try a better chance of winning.
You move the passion : If your project or start-up brings something different to society, help others or make the world a little better, you have more than enough justification for apasionarte.
The important thing to implement a good idea : If we have a great idea but do not work hard in their implementation at the end we have nothing. We have to take it forward.
You have to dream and fight for dreams without risking fear of failure. Work hard but you have to have fun. “Work Hard, Play Harder!”
Launch is always a winning bet if you go well you turn your dream into reality, if you go wrong will stay with a wealth of knowledge with what they have learned.
The metrics of the business model are all , esppecialente to begin. You have to understand the flow of data, conversion rates, etc.. to make a business work.
Initiator held on December 1, 2011 its second congress in Madrid under the title ” We start here . ”
If you liked the article and the topic of the blog, please be very interesting for all of us to leave your comment.
In addition, you can receive all the full articles in your email inbox by entering your email address in the subscription option on the home page. Your e-mail address will be used only to send you the blog updated daily. Thank you very much for joining us.
Innovation for an active and healthy aging
The Spri organized on December 2 in the new auditorium of the UPV-EHU the conference ” Innovation for an aging active and healthy ‘which examined the opportunities for business and the new markets in the coming years will be created in the heat of the needs and requirements that older people will need to develop this stage of his life in the best of conditions.
An area which is betting Euskadi, as we said Olga Rivera, Deputy Minister of quality health research and innovation, to remind us that the National Center for Aging is a reality in the coming years Miramon.
In the table of challenges and opportunities we had the opportunity to hear first hand, industry specialists, the windows are opened in this area in the coming years.
José Javier Yanguas Ingemar reminded us that not only the elderly but the disease chronic go to assume a new market of opportunities for business and that, contrary to the EU from Ingema not consider (for the search for these new opportunities) that the chronicity is a matter exclusively associated with aging.
The disease caused 80% of health interventions, two thirds of health spending and cause 3 of every 4 deaths in 2020. To address the technology is not the only area to develop, but especially, prevention, taking into account the 4 risk factors behind 70% of chronic diseases: Snuff, obesity, poor diet and lack exercise.
His strategy to meet the challenge of chronicity in Euskadi is based on 3 points: patient, organization, technology. To Ingema latter is where are the opportunities of business : History Clinic Unified , e- pilots , center multichannel , Telecare , prescription electronics, …
And is that the demographic data give us new idea of the challenge we have at hand. In Europe the number of people over 65 is expected to grow 45% between 2008 and 2030 and is 30% of the population in 2060 (those over 85 years would amount to date 12% of the total population).
On the other hand we should remember that aging is not synonymous with dependence, but interindividual variability, so any approach to the question must be global , cross- and interdisciplinary .
The chances that Mr. Yanguas noted for Euskadi lie in:
- We have good research in this area.
- Good integration into the professional field.
- Major driving forces.
For his part Mr. Shabs Rajasekharan from IK4, made an interesting contribution from how technology can address this new challenge and the characteristics of this new market (not forgetting that technology is part of innovation, but not everything ).
Rajasekharan sees three barriers to entry in this sector:
1. This market is not open.
2. There is still a lack of support for the prescriber.
3. And we meet end-user resistance.
Likewise, and in general there is a lack of knowledge of whether the investment will return.
From IK4 are also of the view that multidisciplinary collaboration can help overcome these barriers.
Finally Josemi Tecnalia Azkoitia also reinforced this idea of active aging as one of the most promising areas of innovation and market. As an example we mention that the pharmaceutical companies know this and already 76, a new drug business is linked to aging.
Another relevant fact is that by 2020, 6000 new jobs are expected social Gipuzkoa (which would mean a world of Orona used as CAF and together).
But in addition to demographic change will boost the sectors beyond health care as they could be the technology industry, the biomedical industry, construction, insurance, leisure, tourism, food, …
All this implies, as mentioned the other two speakers, an opportunity multisectoral. And we emphasized in its opinion the 5 key reliability to give us presentations.
1 – The extent of the phenomenon is already unquestionable, gaining increasing weight in the political agenda.
2 – There is a sociological profile changes in old age (generation of the Beatles, May 68, internet developers, …) that we should be aware, to adapt products and services to the needs of the elderly.
3 – There is conjecture, and no voices that doubt the phenomenon.
4 – To address the challenge will be to develop a new multi-sector economy.
5 – Euskadi we think on a ‘one meter lead’ regions of our environment and the aim should be to try to get a distance of two meters.
The last speaker gave us two final recommendations aimed specifically at those interested in taking in these areas: before writing any proposal to visit the Department of Health and Innovation with the aim to drink at first hand the requirements of the region in the area, and second, for any design put the users at the center of it, but we find that potential users are not going to sue or be interested.