The European Central Bank (ECB) has recently raised the key interest rate from 1.25 percent to 1.5 percent. As announced, the central bank is thus continuing its exit from the crisis policy of cheap money – despite the sovereign debt crisis in some eurozone countries.


Picture: Diagram in the business section Image: © Sonia Boukaia / / Text: dpa

Who use low interest rates?

Low interest rates tend to make loans cheaper: companies are investing more, consumers are buying more than they can or want to pay out of pocket. This is boosting the economy.

What’s bad about it, when the money is cheap?

Cheap money can lead to inflation, real estate bubbles and overheating in boom times. In Germany, where the economy is booming like nowhere else in the eurozone, the first industries such as mechanical engineering are already reporting supplier shortages due to high demand. This in turn increases the pressure on prices. Commerzbank fears that persistently low interest rates could underestimate investors’ risks. Eurogroup chief Jean-Claude Juncker warns: “Inflation is like toothpaste: it is easily pushed out of the tube, but very difficult to get back in.”

Who are hurting higher interest rates?

Higher interest rates are weighing on economies with a slowing economy, but also on all debtors. At the moment, higher interest rates could be an additional brake on the economic recovery in debt-ridden countries such as Greece, where rigid austerity measures make the upswing more difficult anyway. But the ECB can not and does not want to take that into account. From the point of view of the monetary authorities, it is up to national governments to eliminate deficits and reduce debt.

Will lending become more expensive for consumers?

As a rule, financial institutions quickly pass on higher interest rates on loans to their customers; in some cases, they praise interest rate hikes upwards even before the actual decision is made. However, mortgages in this country are usually calculated less on the basis of the prime rate than on long-term interest rates on the capital market. Max Herbst from FMH-Finanzberatung points out that this level has recently fallen. This could benefit homeowners now.

Will I get more interest on the savings account soon?

Interest rates on loans often increase banks faster than savings rates. Although the Federal Court of Justice prohibited the institutes arbitrariness in interest rates. Nevertheless, consumer advocates like Frank-Christian Pauli have learned that bank rate hikes will continue to be delayed when it comes to products for the benefit of customers. “It works best where the consumer can change quickly: with call money and savings contracts,” says Pauli. “That’s the power of the market.”

Are there any further interest rate increases?

Economists expect at least a third interest rate move up later this year. Probably another increase in October – again by 0.25 points to then 1.75 percent. This is supported by the relatively high inflation. Because the monetary authorities have basically just “a needle in their compass” as ECB President Jean-Claude Trichet likes to put it: To ensure stable prices for 331 million Europeans in 17 states. After their firefighting operations, the ECB strives for normalcy. Experts believe interest rates below 2.0 percent are only appropriate in times of crisis.

What are other central banks doing?

Zero interest rate policy and money glut – the US Federal Reserve is taking a completely different approach than the ECB. The Federal Reserve (Fed) considers support for the economy to be the key objective of its policy. About two years after the end of the Great Recession, the US economy is not getting back on track as hoped. Fed Chairman Ben Bernanke stated at the end of June that the recovery was “frustratingly slow”. He hinted that the Fed’s zero interest rate policy since late 2008 will not come to an early end. The most important central bank in the world held its key interest rate last at zero to 0.25 percent.


News Silver as an investment: value-shredder or protection against inflation

News Silver as an investment: value-shredder or protection against inflation News always well informed

Thursday, 05.12.13 , written by Bernd Lauberg In addition to gold, silver is regarded as the most important precious metal in terms of investment. But in 2013, many investors were disappointed. So the silver price has fallen massively this year. Instead of providing inflation protection, the silver investment has substantially reduced investors’ capital over the last year. Nevertheless, demand for Silber verliert als Geldanlage an Wert

Silver as investment: besides gold, the most popular precious metal

At the end of 2012, the price of silver was $ 34 per troy ounce. By contrast, at the end of November 2013, only $ 20 was left. So, if you chose silver as an investment last year, you had to accept a significant decline in value. And last year silver was the biggest value eraser among the precious metals. According to the news agency Bloomberg, the price of silver changed by -37.1 percent compared to the previous year. Gold lost only 26.5 percent in value, platinum 9.7 percent. Only palladium, a precious metal used, for example, to decolorize gold or medical instruments, posted an increase in value of 21 percent.

Tax on silver increases in 2014

For investors who are now considering investing in silver given low silver prices, a change in law from January 1, 2014 is important. Then silver coins lose their tax privilege. Instead of the previously reduced seven percent VAT then 19 percent VAT must be paid when buying silver coins. For silver bars, the higher tax already applies. The investment in silver thus loses even more appeal with the new year.

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Take advantage of low price for silver and access now

Currently, however, a rush on the precious metal is clearly noticeable. For example, Axel Potthast, Managing Director of Goldkontor Hamburg, and Daniel Marburger of Jewelers Trade Services Limited in London confirmed a strong increase in demand vis-à-vis manager magazin online. However, both also stress that an investment in the commodity should be made later this year to benefit from the tax privilege. Meanwhile, some silver coins are now difficult to obtain, the increased demand leads in part to supply shortages.

Silver price 2014: Development of the precious metal unclear

Meanwhile, it is questionable how the silver price – apart from changes in VAT – will develop next year. Because with the beginning of the new year, the demand is likely to decline markedly by the VAT increase. In addition, the price of silver also depends heavily on global economic development. The better the industry develops, the more silver is demanded as a raw material. If the world economy or large customers like China weaken, so does the demand and thus the price of silver. As inflation protection, silver is therefore only suitable for the long term. In the short and medium term, the precious metal is too dependent on developments on the world market.

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News Classical pension insurance Comparison: Where is the most money?

News Classical pension insurance Comparison: Where is the most money? News always well informed

Wednesday, 26.04.17 , written by Christian Hafler A recent comparison of various classic annuity policies shows how much this pension has changed over time. Some insurers are doing much better than others with the low interest rates. If paid in 2017, the differences between the providers will be in the range of several thousand euros. >  Private pension insurance: There was significantly more money here in 2017

A recent comparison of the branch service Map-Report has reviewed the success of classic pension insurance in recent decades . Among other things, the one-time disbursements of insurance policies with a term of 20 years and a pension beginning between 2005 and 2017 were scrutinized. The figures clearly show that a non-smoking, 43-year-old insured, who paid 1,200 euros annually to the insurance company, could enjoy a much higher return and thus a lump-sum payment if the pension started in 2005 and not in 2017. Depending on the period, the average return is 3.8 to 5.9 percent .

Private pension insurance: Situation on the financial markets influences returns

The average performance of the pension schemes tested fell between 2005 and 2017 from 46,256 euros to 36,390 euros . For precautionary interested parties, this means that traditional offers always yield less and less. This is also due to the guaranteed interest rate, which peaked at 4.00 per cent in the mid-1990s and since then has been reduced to 0.9 per cent.

In addition, insurers can achieve lower surpluses over the guaranteed interest rate compared to previous years. All this contributes to the fact that the classic pension insurance hardly pays off against unit-linked options and other pension plans .

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Benefit of pension insurance: differences of 6,000 euros and more

The map report has not only compared the amount of payouts for the different periods. The analysis also examined the level of lump-sum compensation within a single year and the insurer’s dependence on it. For a term until 2017 , benefits vary accordingly between 33,764 euros and 39,866 euros . Not all companies have participated in the market investigation. Nevertheless, it can be seen that, at the end of the term, it can make a significant difference to the amount of the lump-sum payment or the pension, which provider insureds choose for their retirement.

Top 3 of the pension insurance with retirement in 2017

  1. Cosmos
  2. Public Brunswick
  3. R + V

Alternatives to the classic pension insurance

The classic pension insurance offers a very high level of security, but is now unsatisfactory in terms of returns for many savers . In addition, more and more insurers are foregoing classic provision products due to the low return prospects. However, there are other ways to provide for the retirement. These include on the one hand unit-linked annuity and life insurance . For these, a higher proportion of contributions is invested in high-yielding assets such as equity funds. This increases the chances of returns, but also involves risks.

On the other hand, both classic and unit-linked provision products are available with government support. Depending on the personal life and work situation, Rürup pensions are suitable. However, a generally recommended product does not exist. Therefore, it is important for pensioners to find out in advance exactly about the different variants .

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Carlos Sánchez Mato: “The contract of the M-30 could cost more than 11,000 million euros”

Carlos Sánchez Mato: “The contract of the M-30 could cost more than 11,000 million euros”

  • The delegate of Economy and Finance of the City of Madrid ensures that there will be no cuts even if the 238 million euros requested by the Treasury are immobilized.
  • Sánchez Mato affirms that he has no differences with Carmena: “We agree that we have to be able to carry out our political plan.”
  • He argues that at the current rate “Madrid’s debt in five years would have disappeared”, even increasing social spending.
  • He dismisses the possibility of being the IU candidate for mayor in 2019: “I do not have any personal ambition, I will be a bricklayer”.
Carlos Sánchez Mato

The delegate of Economy and Treasury, Carlos Sanchez Mato, in his office, in Calle Alcalá 45. JORGE PARÍS

Among commissions, public events and other commitments, Carlos Sánchez Mato serves 20 minutes on the second floor of Alcalá 45, the imposing building that the City Council bought at the end of last December for 104 million euros. ” We save 20 million euros of rent until 2019″, explains the delegate of Economy and Finance of the City of Madrid on the property, headquarters of their area.

The City wants to appeal the resolution of the Treasury for the immobilization of 238 million euros for breaking the spending rule. Why have they made this decision?
That decision is made by the Treasury in accordance with a law against which we are politically against but which we are obliged to comply with. What we would like is that when a decision is made according to that unjust law, at least follow that law. When this law is not followed, what we do is to resort , without further ado .

If this cut has to be carried out, what specific investments will it affect?
In no case will these agreements of non-availability affect the budget items in the form of cuts. What we have done has been that certain investments we look for another place to finance them, but they are made the same. What we have approved in recent days have been non-availability agreements that mean that instead of financing it with the 2017 budget, we finance it with the surplus that we had in 2016.

It has given the feeling that there was no internal unanimity when it came to dealing with the breach of the spending rule. Has it made any difference to the mayor?
Not at all. We completely agree But not only the mayor and I, but the whole group. We fully agree that we have to be able to carry out our political plan. I understand that there are people who want to talk about differences.

Madrid’s Calle 30 investigation commission is underway. How much will it cost the people of Madrid the Calle 30 contract that former mayor Gallardón made?
Let it be clear to the people that the Government of Madrid is not going to put things under the carpet If the contract remained in the same conditions until the end of its expiration (in 2040) the M-30 would have cost more of 11,000 million euros to the citizens of Madrid. But the important thing is not the cost but if it is justified. What we have shown, and the Chamber of Accounts says, is that with another management model there would be 556 million euros more in public coffers to this day. That has already happened. If you do not change the contract or the management model that will continue to cost a lot of money.

Will the people responsible for this contract respond to justice?
It seems clear that the investigations leave evidence that there are things that are susceptible to action by the courts . And of course it is very clear to the people that the Government of Madrid is not going to put things under the carpet, which is what the Popular Party has done and is doing.

The municipal debt has been reduced by 36% since the arrival of Ahora Madrid. Is it the merit of the current Government or of the inheritance received, as the PP says?
All the good things about the city of Madrid were planned by the PP, but now Madrid has come to do it (jokes). The merit of Now Madrid is to carry out some budgets that we have liquidated and executed and others that we have approved with the help of the PSOE. And in those budgets, what we have done is to increase spending that is the highest priority for people. Social spending in 2016 was 33% higher than the previous year.

Do you see that Madrid may not owe the banks one day?
We will never presume to increase the rate of debt reduction if that is at the expense of public policies. At this rate, Madrid’s debt in five years would have disappeared. And at this rate, not debt reduction: increase social spending and debt reduction, both. Because if we made the policy that the PP wants, it would be in less time still the reduction of the debt. But we will never presume to increase the rate of debt reduction if that is at the expense of public policies. We have capacity before six years have settled the debt of Madrid. And this the Treasury did not like.

The City Council lowered the IBI in 2016 and in 2017 it froze it, except for some neighborhoods after a cadastral review. What will they do in 2018?
It is not planned to do anything yet. Among other things because we expect the legal framework at the state level to change other tax figures that have to do with decisions that exceed our competencies. The playing field would have to be clarified in order to know with what resources the town councils count.

The departure of Celia Mayer from Cultura and her own from Madrid Destino seems to have caused some tension among the families of Ahora Madrid. Have internal relationships become strained with these decisions?
There are logical debates that in the case of Ahora Madrid you want to magnify. They would like to those who say so that we got along.

The PSOE is being their support when it comes to taking forward budgets and other proposals. Are you in favor of the municipal government?
Absolutely. We have shown total maturity and strength to govern alone. But governing alone does not mean governing without agreements with other groups. We have the ability to negotiate with the Socialist Party and reach agreements.

Would you like to be UI’s bet for the Mayor’s Office in 2019?
Absolutely. I do not have any personal ambition. What will be there will be collective decision processes in which we will reach agreements with the groups that make up this confluence. We are talking about a myriad of projects that have our differences but we share the city project for Madrid. The last thing is the candidacies. What I am going to be is a bricklayer to build the processes that give rise to the revalidation of the Government of Madrid on many occasions.

BIO Carlos Sánchez Mato was born in Madrid in 1970. He is an economist and defender of public banking. He has a long career as an activist, is a Catholic base, anti-capitalist and comes from Izquierda Unida. Since June 2015 he is delegate of Economy and Finance of the City Council of Madrid and councilor president of Vicálvaro.

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RWE affair: 200 politicians should work for RWE, Meyer must continue to fear for office

Berlin / Essen (AP) – CDU General Secretary Laurenz Meyer must continue to fear for press office after his office. Relying on circles of the Union leadership reported the “Hannoversche Allgemeine Zeitung” on Tuesday, a fall of Meyer will continue to be considered possible, even if CDU leader Angela Merkel had put on Monday behind him. The matter could “go until Wednesday or Thursday on the stage”. Unity is that not yet the Christmas holidays should be charged with the topic.


Picture: Money 

Especially at the North Rhine-Westphalian CDU base caused Meyer’s whereabouts in office for displeasure. “The spearhead secretary-general has become pretty dull,” said the managing director of the CDU council faction in the city council of Dortmund, Manfred Jostes. At the base, the criticism prevails. Negative effects on the state election campaign are to be feared. “The talk of belt-tight buckles and privileges such as right of return with simultaneous severance pay do not match.” It would be difficult to convey this to the citizen.

The Cologne CDU candidate for the 2005 state election, Franz-Josef Knieps, criticized the proceedings. “I hope the topic will be settled soon, everything has to happen that is quiet in NRW.” Knieps had prevailed a week ago in a spectacular combat vote against the state parliament member Richard Blömer on the CDU list. Against Blömer determined the public prosecutor’s office in a party donation procedure.

Express demands for a resignation or a replacement Meyers were raised only behind closed doors. Landesparteichef Jürgen Rüttgers also wanted to express no more. “Mr. Rüttgers has said everything,” said his spokesman only. The Bundesparteivize, which is also the top candidate for the state election in May, had stated that the events surrounding Meyer were difficult to campaign for. The 56-year-old Meyer comes from NRW. The Bielefeld CDU district chairman Marcus Kleinkes holds resignation calls for completely missed. Meyer got money as an RWE employee and became corrupt because of the payments, he told the dpa.

Meyer does not see itself as a burden for the NRW election campaign. On ZDF he said on Monday evening, he would work with full force for “that finally comes after 40 years, the change and Jürgen Rüttgers Prime Minister”. That would certainly appreciate Rüttgers. At the same time he acknowledged mistakes. “I would not do that anymore today,” Meyer said when asked why he put the cards on the table so late.

In the statement, Meyer stated that it had received a total of 250,000 marks (127,822 euros) from the RWE Group in connection with a severance payment agreement in 1999 and in July 2000. RWE confirmed the information on Tuesday.

The Dusseldorf SPD parliamentary group wants to draw conclusions from the affair Meyer and make provision in the parliament against similar cases. In a letter to the President and all parliamentary groups in Parliament, SPD leader Edgar Moron called for more transparency in the exercise of his mandate and profession. A model of a common regulation could be the Ministerial Commission in NRW. It obliges all members of the Cabinet to disclose income and assets annually.

According to information from the “Financial Times Deutschland”, the energy group RWE now has a list of around 40 politicians who are said to have received at least indirect salary payments from the Group. The RWE spokesman described the report as speculation. There are only cases Meyer and the former CDA chairman Hermann Josef Arentz. Arentz has recently dropped over 60,000 euros in annual payments and free electricity without labor.

According to an RWE estimate, at least 200 politicians working in the Group in Germany with all their holdings work predominantly on a voluntary basis at local level. The Essen-based power company is also feverishly seeking the owners of Meyer’s sumptuous purchases.





How To Transform Your Credit Score

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Be careful when using your company card online or over the telephone. More and more people are using the Internet these days to make purchases. Although, it could be extremely convenient, be careful along with who you give your own credit card number too. Be sure that the merchant is using SSL secured credit card processing program. Also look for merchants who else uses Pay Pal or even Google as their check out processor chip. PayPal is a very secure method to shop online as they offer both the merchant and the consumer with fraud protection.

Request your friends and family if they have ever had an identical experience. They may have found an excellent dealer that will help you get yourself a brand new used car, even with bad credit score.

Check credit report and score- When it is that time of the 12 months to free credit scores from all three bureaus and credit score, invite your kids to join a person in reviewing them. This will likely give you the chance to explain to these individuals the importance of going over your credit report in addition to the score and in making sure that these are in good shape. Also, mention the need for keeping their scores as their chances of being approved involving credit cards and owning vehicles and homes will significantly depend on them.

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You will want to make sure to find the right financial loans for you as a student and precisely what will work for you now and perhaps in the future. Read through all the small print and find the excellent credit cards intended for students.

The bank renews the financial services contract for the Generalitat and "shows confidence" in its solvency



The regional Secretary of Finance, Clara Ferrando, and the director of the Valencian Institute of Finance (IVF), Manuel Illueca, signed this Saturday with representatives of banking entities the contract for credit operations and financial services for the Consell. With this renewal, “the bank shows its confidence in the solvency” of the institution, highlights the Generalitat in a statement.

The contract includes, on the one hand, the granting of lines of credit and, on the other, banking services for accounts, collection, collections, and payments, among others, all of which are necessary for the normal functioning of the Treasury of the Generalitat and the sector Valencian public.

The person in charge of the Treasury has highlighted in this respect that “all the entities of the Valencian financial system have maintained their permanence in the financing contract for the Generalitat and the Valencian Institute of Finance for one more year”.

The tender includes the financing of more than 2,253.3 million short-term debt, of which 2,133.3 million correspond to the Generalitat and 120 to the IVF. The Generalitat total includes 785.3 million credit policies, 1,175.5 million lines of ‘confirming’ and 172.5 million in short-term loans

The contract, which entered into force on February 27, 2017, was valid for two years and has been renewed by all parties for one more year, renewable for two more.



 All the financial entities that have been working with the Generalitat have attended the tender: CaixaBank, Sabadell, BBVA, Bankia, Santander, Cajamar, Ibercaja, Caixa Ontinyent, Caja de Ingenieros, Banco Cooperativo and Abanca.

The regional secretary has ensured that “financial institutions rely on the solvency of the Generalitat and the sustained growth of our economy.” “This is the best sign that the Consell is doing things well.” In previous terms, the Valencian public administration had problems adjudicating its financial services, which is a thing of the past, and now we generate confidence, “he added.

In accordance with the terms of reference of this contract, the financial services provided by banking entities are, among others, the opening of operating accounts, the contracting of credit policies – for Treasury and IVF -, Treasury loans and ‘confirming’ to suppliers of the Generalitat, the management of the collection of taxes, deposits of bonds and the management of payments by the fixed-cash system.

In addition to the usual banking services for the bank accounts of the Treasury of the Generalitat, the contract also includes the accounts of non-university public educational centers, the accounts of the institutions and the operations of the public sector, as well as the participation in the financial agreements carried out by the regional government and the placement of surplus treasury.

Regarding the previous contract, the new one contemplates the extension of the means of payment that the administration of the Generalitat intends to implement to facilitate the taxpayers to make the income. Thus, in addition to point of sale terminals, both physical and virtual, and ATMs, the contract provides for the development of online applications for card payment or online transfer without cost to the taxpayer.



Due to the “general interest of the Comunitat”, in the evaluation of the proposals presented by the bidders, criteria of scale have been included where the social commitment of the financial entity in case of a tie has been taken into account.

Thus, it has evaluated that the entities that certify that they do not apply eviction proceedings for housing occupants in the context of judicial foreclosure proceedings and that they offer the possibility of giving in payment to their mortgage debtors, in addition to the possibility of social rent.