(SOCIOLOGY) merchant class in a colony; usually dependent on exports of raw material from the colony (or former colony) in exchange for overpriced imports from the former colonial power.
As a class, the compradors are usually nationalistic--they usually want the trappings of independence. However, they are totally dependent on the global economy and its structure of hegemony. The rich nations benefit from excellent terms of trade, specialization in manufactured goods or intellectual property, etc.
After nominal independence, the comprador class usually become very powerful in the former colony; major powers like the USA or the EU ensure the comprador remain the de facto leaders of the colony. Anti-US rhetoric is usually just political theater or may reflect petty rivalry on the part of the compradors with their foreign masters.
As a class, the compradors are usually nationalistic--they usually want the trappings of independence. However, they are totally dependent on the global economy and its structure of hegemony. The rich nations benefit from excellent terms of trade, specialization in manufactured goods or intellectual property, etc.
After nominal independence, the comprador class usually become very powerful in the former colony; major powers like the USA or the EU ensure the comprador remain the de facto leaders of the colony. Anti-US rhetoric is usually just political theater or may reflect petty rivalry on the part of the compradors with their foreign masters.
Eventually, the terms of trade become so bad that the relationship breaks down and the country suffers a sovereign debt default, revolution, or permanent FUBAR status. At this point the comprador class has to share power with the local Junker class.
by Abu Yahya May 18, 2010
Get the comprador mug.The belief efforts to protect people from calamity will only lead to them being more careless, and bringing on more calamity.
This is a fallacy because it (a) assumes people can adjust personal risk to replicate an incomparable situation, and (b) it confusing risk-taking and risky behavior. "Risk-taking" is a neutral term that includes anything that increases risk in some way, such as operating a machine at a higher speed. This usually is done to get some other benefit. "Risky behavior" is foolish, feckless, or sloppy behavior that has no intrinsic utility to the person engaging in it.
This is a fallacy because it (a) assumes people can adjust personal risk to replicate an incomparable situation, and (b) it confusing risk-taking and risky behavior. "Risk-taking" is a neutral term that includes anything that increases risk in some way, such as operating a machine at a higher speed. This usually is done to get some other benefit. "Risky behavior" is foolish, feckless, or sloppy behavior that has no intrinsic utility to the person engaging in it.
An example of the curmudgeon's fallacy is the erroneous claim that safer cars make for careless drivers.
by Abu Yahya October 19, 2008
Get the curmudgeon's fallacy mug.(FINANCE) the rate at which Federal Reserve System member banks lend reserves to each other. It is the one interest rate actually set by the Federal Reserve Board. The other rates, such for treasury securities, are set by auction.
Bank reserves are a fixed percentage of deposits held in reserve against sudden demand by the depositor. In some cases bank reserves take the form of deposits with a Federal Reserve Bank, like the Federal Reserve Bank of New York.* Such deposits do not earn interest for the member bank, unless they are re-lent out at the federal funds rate.
"Federal funds" refers to emergency lending (overnight) among member banks so that the borrower can meet its reserve requirements. Reserves may include deposits with a Federal Reserve Bank which can be loaned by the member bank to another member bank (thereby earning interest).
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* Member banks in the FRS are regular national/state chartered banks, or investment banks. The FRS itself includes 12 Federal Reserve Banks, which actually do the financial work of the FRS.
Bank reserves are a fixed percentage of deposits held in reserve against sudden demand by the depositor. In some cases bank reserves take the form of deposits with a Federal Reserve Bank, like the Federal Reserve Bank of New York.* Such deposits do not earn interest for the member bank, unless they are re-lent out at the federal funds rate.
"Federal funds" refers to emergency lending (overnight) among member banks so that the borrower can meet its reserve requirements. Reserves may include deposits with a Federal Reserve Bank which can be loaned by the member bank to another member bank (thereby earning interest).
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* Member banks in the FRS are regular national/state chartered banks, or investment banks. The FRS itself includes 12 Federal Reserve Banks, which actually do the financial work of the FRS.
by Abu Yahya September 04, 2010
Get the federal funds rate mug.*noun*; a subdivision of economics that focuses on addressing recessions by stimulating supply, rather than demand. During a recession, supply siders recommend cutting taxes rather than increasing government spending.
"Supply side" is in contrast to traditional practitioners of Keynesianism, "demand siders" who believe the main fiscal policy tool for recessions should be increased government spending.
Both supply siders and demand siders believe the government is responsible for formulating effective fiscal policy during recessions.
The most famous advocate of supply side economics was Arthur Laffer.
"Supply side" is in contrast to traditional practitioners of Keynesianism, "demand siders" who believe the main fiscal policy tool for recessions should be increased government spending.
Both supply siders and demand siders believe the government is responsible for formulating effective fiscal policy during recessions.
The most famous advocate of supply side economics was Arthur Laffer.
When Ronald Reagan ...promised to cut taxes ...he claimed tax revenue would go up, not down... as the economy boomed in response to lower rates. Since then, supply side economics ... has become a central tenet of Republican political and economic thinking in the country.
"McCain sticks to Supply Side Economics..." *International Herald Tribune* (24 March 2008)
"McCain sticks to Supply Side Economics..." *International Herald Tribune* (24 March 2008)
by Abu Yahya March 05, 2009
Get the Supply Side Economics mug.(JOURNALISM) using flattery to gain access to sources. The phrase is usually used in the context of White House or Congressional press corps, who use fulsome praise of high-ranking officials whose favor they need. Usually, officials like to be publicly represented as magnificent, selfless, tireless public servants; in exchange for such blurbs, they may invite specific reporters to exclusive events, thereby boosting the reporter's status.
It's actually been a feature of the business press for ages.
It's actually been a feature of the business press for ages.
Since the financial crisis of 2008, business reporters have tended to write dismissively of bank executives. Six years ago they were likely to have written a beat sweetener about some CEO who was now shithead-of-the week.
by Abu Yahya April 09, 2010
Get the beat sweetener mug.*noun*; in Keynesian economics, the rate at which aggregate consumption rises in response to a rise in national income.
For example, suppose the marginal propensity to consume (MPC) is 0.95. If the national income is 100 billion dollars, and it rises 10%, then consumption will rise by 9.5 billion, and saving will rise by 0.5 billion.
If this theory is correct, then an expanding economy will suffer insufficient demand for its own output, and a recession will be inevitable.
This is why national governments respond to recessions with deficit spending: they are trying to counteract the MPC's effect on aggregate demand, and bring it in line with potential output.
For example, suppose the marginal propensity to consume (MPC) is 0.95. If the national income is 100 billion dollars, and it rises 10%, then consumption will rise by 9.5 billion, and saving will rise by 0.5 billion.
If this theory is correct, then an expanding economy will suffer insufficient demand for its own output, and a recession will be inevitable.
This is why national governments respond to recessions with deficit spending: they are trying to counteract the MPC's effect on aggregate demand, and bring it in line with potential output.
Not only is the marginal propensity to consume weaker in a wealthy community, but, owing to its accumulation of capital being already larger, the opportunities for further investment are less attractive...
J.M. Keynes, *The General Theory of Employment, Interest, and Money* (1936), Ch.3
J.M. Keynes, *The General Theory of Employment, Interest, and Money* (1936), Ch.3
by Abu Yahya March 03, 2009
Get the marginal propensity to consume mug.(FINANCE) an amount of precious metals, silver, cash, or other thing of value that a bank keeps in storage to meet unexpected liabilities.
Banks generally accept deposits and lend out money. The deference between the rate of interest paid out to deposits, and the rate of interest required for loans, is called "the spread"; it is the bank's source of income.
Banks are not allowed to lend out 100% of the money they receive as deposits; if they did, then depositors would be unable to take money out of the bank. On the other hand, the bank has to lend most of the money out, since it needs the income earned from interest on loans. Throughout the history of the Usonian banking system, the US states or the federal government have had rules about interest rates, reserves, and financial accounting used by banks.
Since Aldrich-Vreeland Act (1908), banks have been allowed to hold deposits with the US Treasury, then (after 1913) with the Federal Reserve System. Deposits in the FRS do not earn interest, but the reserve banks permit member banks to borrow if they fall short of the reserve requirements (see federal funds rate)
Banks generally accept deposits and lend out money. The deference between the rate of interest paid out to deposits, and the rate of interest required for loans, is called "the spread"; it is the bank's source of income.
Banks are not allowed to lend out 100% of the money they receive as deposits; if they did, then depositors would be unable to take money out of the bank. On the other hand, the bank has to lend most of the money out, since it needs the income earned from interest on loans. Throughout the history of the Usonian banking system, the US states or the federal government have had rules about interest rates, reserves, and financial accounting used by banks.
Since Aldrich-Vreeland Act (1908), banks have been allowed to hold deposits with the US Treasury, then (after 1913) with the Federal Reserve System. Deposits in the FRS do not earn interest, but the reserve banks permit member banks to borrow if they fall short of the reserve requirements (see federal funds rate)
Bank reserves serve two purposes: they allow banks to pay depositors on demand, and they play a role in monetary policy.
by Abu Yahya September 04, 2010
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