The Review of World Economic News


Ala Greenspan’s successor was named. Starting from January 1, Be Bernanke will manage the world’s largest economy, and correspondingly he will have the key role i the world economy.

I spite of the fact that he said that he will continue his predecessor’s course, analysts and journalists will remind him about his statements concerning the liberal course. America economy has demonstrated unprecedented growth i October and i the third quarter. 3.8% growth of the economy i conditions of ever increasing oil prices and after innumerable storms is a serious indicator. At the end of October both Dow Jones and NASDAQ indexes were o the rise.
Oil prices remai high, and increasing of natural gas prices o the world market becomes a serious problem. Prices are increasing i Russia as well since gas productio grows costlier all the time. I early October presentatio of “Gazprom” took place i Tbilisi. This firm started natural gas productio i 2002 and produced 521 billio m3, experts believe that that by the year 2030 this indicator will grow from 610 billio m3 to 630 billio m3. The firm implements import to Germany, Italia, Austria, Netherlands, etc. Europe consumes 140 billio m3 of gas, out of which 25% is supplied by “Gazprom”.
As to the contract with Georgia, the firm’s representative – Mr. Morchiladze gave publicity to “Gazprom’s” strategy. The firm takes interest i doing business i Georgia, and wishes to invest i other sectors as well. There is a proposal concerning concluding a 10 year agreement with Georgia, but i the analysts’ opinio this is a too prolonged project for Georgia, since a 10 year contract is difficult to forecast and it is a mistake to raise the questio i a hurry, especially whe it is impossible to understand what happens o the world market. It would be better for Georgia to conclude agreements with all firms and the choose the cheapest one. “Gazprom” is very ambitious, it is becoming stronger all the time, and i a short period of time it will become a empire, a state i a state capable of managing half of the world, that is why a one year contract would be enough for the beginning. “Gazprom” would like Georgia to be its business partner i other spheres related to gas as well, for example chemical and energy production, and if it is give a possibility of making money i other spheres, the way it takes place i Armenia, it will propose tariffs o preferential terms. “Gazprom” assures that it is interested only i business and money; but does it really have nothing to do with politics? Tax Code – At the end of October, Georgia Parliament also started consideratio of the new Code. Remarks were made by the Finance Ministry and the Control Chamber, but the most interesting speech was made by Kote Gabashvili who raised a questio concerning reductio of VAT to 16% so that the country would become more attractive for investors. The Chairma of the Committee – Mr. Irakli Kovzanadze reviewed the results of the sessio and said that a mixed commissio or a working team would be set up with representatives of legislative and executive authorities, business circles, and experts, and the agreed upo draft would be submitted to the parliament i 2-3 weeks. However, Mr. Nogaideli’s reactio to these remarks is unknown. It is noteworthy that Russia is planning to reduce VAT to 13% according to Prime Minister Fradkov’s project, and to 16% according the project of the Finance Minister Gref. I any case this will make Russia attractive for the investors. The price of platinum has reached a record level – 945 USD per ounce, and it completely substituted for gold. Its mai producer – South Africa, but now many countries produce and use it to balance the fluctuations of the exchange rate. I the analysts’ opinion, the price will reach 1000 USD, since the demand from Chinese jewelers and Europea motor-car producers has increased. O October 28, Bill Gates turned 50. I 2004 his income made up 36,8 millio USD. 55 000 people i 85 countries of the world work for him. He earns several millions a minute, and at the same time he loses them depending o changing of his shares’ value. It is noteworthy that he is the most unpretentious among the billionaires. I spite of his wealth, he himself drives his blue “Lexus” without any bodyguards and flashing lights. 50 year billionaire manages his firm i a rocking way i a full meaning of the word. He and his assistants sit i rocking chairs, since, i his opinio rocking contributes to mentation, and rising of ideas. Round the clock he struggles against his competitors, and the EU’’s bureaucracy which is constantly struggling against his millions and accuses him of violatio of antimonopoly law. Gates agrees with the words of a famous basketball player, Michel Jordan: ”They think that my era has come to the end, but I am sorry for those people who think so”. His favorite motto is: “Only paranoiacs will survive”, and that is why the way of his life is paranoiac. This is the mystery of his life and success. Bill Gates has show the whole world that money ca be earned not only at oil and gold fields, and that huma resource is more precious tha entrails of the earth, and that intellectual property is a key thing for both people and countries. The 21st century is a century of intellectual business, and it is a lesso from Georgia. Georgia’s redemptio is related to intellectual abilities of its citizens, and its future depends o the right organizatio of educatio and science.
Just another scandal i the US economy – managers rui REFCO. They declared that the company is i debt. REFCO was established i 1969 as Ray E. Frieda and Co. and had the name of its founder. The firm gained good reputation. I early October the executive director – Mr. Bennette was arrested o charges of fraud. He was hired from Chase Manhatte Bank i 1981. I 1983 he was appointed chairma of the firm’s financial department. I 1983 federal CFTC fines Mr. Ditter and REFCO at 525 000USD for speculatio of cotton, soy, wheat, and corn. Mr. Bennette became executive director of the firm i September 1998. REFCO was i charge of more tha 1.2 trillio i foreig trade, and 13,7 trillio USD i the US. For future trade it possessed 4.1 billio USD i the Fund. The firm is formed as one of the largest independent firms i the world. REFCO’s problems does not concer the world financial market.