Monthly Archives: October 2013

After 10 years of development, including a 2 1/2 year delay, the US has finally introduced the new $100 banknote into the circulation. This banknote employs two new security features: a three-dimensional blue strip with images that appear to move when the note is tilted, and an image of a copper inkwell containing a holographic bell whose colour changes when tilted. These features, along with the more traditional security, are designed to ensure that accurate reproduction of the note will be very difficult. Along with the fact that the $100 bill is the most counterfeited bill in US currency, the Federal Reserve estimates that 1/2 – 2/3 of $100 bills in circulation are outside of the United States. The new security features will be extremely important in reducing the number of illicit bills in the international market

Further information:

http://www.bbc.co.uk/news/technology-24431952

http://business.financialpost.com/2013/10/07/new-us-100-bill/.

Japan Airlines (JAL) has finally finished its search for a new addition to their fleet, striking a record breaking deal with Airbus. For around $9.5bn, JAL has acquired 31 Airbus A350s. The A350 is a competitor to the Boeing 787 Dreamliner. Historically, Boeing has dominated the Japanese aviation market, so this is a massive breakthrough for Airbus into a previously untapped market. The Dreamliner has been in the spotlight for all the wrong reasons lately, relating to technical and safety issues, and Airbus chief executive Fabrice Bregier says “it was a no-brainer to select the A350.”  Bregier repositioned the competition by drawing focus on the recent issues that the Dreamliner has been facing, and by focusing on the fuel efficiency of the A350 in comparison to the 787, Bregier repositioned Airbus as being the more cost efficient, safe, and overall better choice. This point has been of particular concern due to the fluctuation of fuel prices in recent years. Although this is a significant breakthrough for Airbus, Boeing 787s remain popular, with 950 Dreamliners on order so far this year.

What is happening?

The fiscal year (for accounting and taxing purposes) runs from September 30 to October 1. The sole job of the US Congress is to pass spending bills, including setting the budget at the beginning of each fiscal year. If a budget cannot be agreed on, the US government shuts down, and all non essential government workers are furloughed.

Why is this happening?

The US Congress consists of the House (which is mostly controlled by the Republicans) and the Senate (which is mostly controlled by the Democrats). All spending bills must be agreed on by both the Senate and the House. The House Republicans are calling for a new budget to defund or impede ObamaCare; the Senate Democrats are very against this type of budget.

What does this mean?

1. Non essential government workers (numbering around 800,000) are put on furlough, or unpaid leave

2. Although a shutdown is unlikely to cause an economic failure, the debt limit crisis could result in a catastrophe. On October 17, Congress must raise the debt ceiling or the US will default. The government would run out of money to pay its bills, which could cause another recession as confidence in the US economy would drastically fall.

Please visit these links for more information:

Debt Ceiling – http://www.cbsnews.com/8301-505123_162-57606253/debt-ceiling-understanding-whats-at-stake/

Detailed Explanation of Events – http://www.theguardian.com/world/2013/sep/30/us-shutdown-explainer-non-americans