Can you imagine that the highest denomination note would buy about two loaves of bread? Yes it is true. In this Friday at Harare Zimbabwe’s central bank unveiled a 500 million dollar note, as the African country struggles to manage with the world’s uppermost price rises and crippling money lacks. Finance minister Samuel Mumbengegwi declare the latest bills in a management gazette, bringing to 29 the number of figure of new notes put into flow this year alone.

The inflation problems in Zimbabwe are getting poorer day by day, due to total mismanagement of the present leader Mugabe’s government. In January, Zimbabwean Reserve Bank issued a 10 million dollar note to combat price rises and issued again a quarter of a billion dollar note as recently as 10 days ago. The half billon note, value about 10 US dollars, was launched jointly with a 200 million dollar bill, which the central bank said in a report was introduced for the “convenience” of the public. Just last Thursday, Zimbabwe launched a 100 million dollar bill that at the time was value of 14 US dollars and after passing one week its value is less than 50 cents.

The central bank is struggling to produce money quick enough to stay speed with prices that rise more than a few times in a day. Owing to currency shortages, money can now only be withdrawn one time a week from any banks. Ordinary citizens can pull out 500 million dollars a week as different companies are permissible to take out 50 million dollars.

The Mugabe’s government is fully disabled to keep running the wheel of finance. With no signs of relief, almost 80 percent of the Zimbabwean are living below the poverty threshold and have to suffer harsh shortages even for basic goods. In recent times an election was held in Zimbabwe and Mugabe’s opposition seemed to have won the elections but Mugabe is still dragging the case and hasn’t hand over his power.

Largest automaker company General Motors Corporation are facing serious financial crisis. Experts are blaming the global financial crisis. GM’s chief executive Rick Wagoner said that, the company’s cash reserved came down to $21bn in June to $16.2bn in September. It will need additional $2bn till the end of the year. That will leave the car giant only $14bn to launch with in 2009. Although the company claimed to have planned $15bn cost cutting since January 2008 but it still would force the company to sell there asset or request government funding to endure in 2009. However GM has lost 25 per cent of share on 10th November after analysts at Deutsche Bank said they expected the stock eventually to be worth nothing at all. The bank also said:

“Even if GM succeeds in averting a bankruptcy, we believe that the company’s future path is likely to be bankruptcy-like,”

General Motors is a multinational automobile manufacture which was found in 1908. It   is also the world’s largest automaker as measured by global industry sales. About 266000 employees are manufacturing and selling cars and tracks about 35 countries around the world. However the company has $38.7bn losses in 2007.

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At this moment, financial crisis is a burning question all over the world because the global financial system is now on threat. The experts hope any time a serious damage can be happened, in these circumstances, the government of United Arab Emirates (UAE) recently announced a plan of series steps to secure the country from the international financial crisis. The state-run Emirates News agency (WAM) reported that the cabinet, presided by Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed Bin Rashid AI Maktoum, in October approved a series of internal preventive steps and measures for maintain its current financial system.

After the cabinet session, in a press briefing Sheikh Mohammed said ‘out of keenness to serve national interest, ensure continuity of economic growth and protect national economy‘, he added ‘We are determined to protect our financial and banking system out of keenness to preserve the interests of our country and people. On the other hand, UAE President Sheikh Khalifa Bin Zayed Al Nahyan ensured that the UAE economy is strong enough and sound that its banking system is so solid and efficient.

According to, these special preventive steps and measures, the federal government will confirm that none of the UAE national bank will be exposed to credit risks, guarantee deposits and savings. Moreover, guarantee all inter-bank lending operations among the banks operating in the UAE in order to inject satisfactory liquidity in the financial system if when necessary. Now, wait to observe can these step protect the UAE financial system while many developed and modern country struggle to restore their financial system.

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At last after a long time, Malaysian crude palm oil price drop as much as 4.1% on Tuesday 12 August to hit a new 10-month low as wavering crude oil prices and expectations of higher worldwide stocks pressured vegetable oil costs. Oil prices have slid just about 13% this year and drop more than 40% from their March peak. On the other hand, traders have expected that there is a possibility to fall more even further and it may reach the 2,500-ringgit levels soon.

The benchmark October agreement fell on the Bursa Malaysia Derivatives Exchange as much as 110-ringgit to 2,561-ringgit or$770.9 each ton and it breaks well history a key resistance level of 2,600-ringgit for the first time of the year. That was the lowest price level since October 9, 2007 for the palm oil.

A trader with a foreign brokerage informed, “Crude oil sharp fall was the trigger point and it was compounded by news of defaults from India and China,” he also added “Now, even Pakistan appears to be delaying some part of its Ramadan purchases.” But another trader opinion was,” Exports may be recovering but we are not going to see the fantastic increases. There is too much palm oil around”.

At the present time Malaysia’s crude palm oil stocks dropped 2.8% to 1,977,060 tons in the month of July. It was more than the 2.2% fall expected in a Reuters’ poll, although still remained close to record levels.

Vegetable oil dealers and traders were waiting for an update on the US crops from the U.S. Agriculture Department due later on Tuesday. It was one of the most significant of this year since it contains the first US soy and corn yield estimates based on authentic field surveys.

The average analysts’ estimates pegged the US soy crop at about 3.001 billion bushels, mostly unchanged from USDA’s July calculate of 3.0 billion. On the other hand US soy oil for September delivery cut down nearly 1% in Asian regions since traders awaited the USDA’s estimated report. In the month of January soy oil contract on Dalian Exchange, China fell 0.8%. The same thing is happened in Indonesia, there crude palm oil prices dropped up to 5.5% on this Tuesday, tracking vacillating Malaysian market. However trading was thin with players ran away on the sidelines and waiting prices to become stable.

Last Monday the state marketing centre in Jakarta sold crude palms oils at 6,869 Rupiah or $0.749 per kg, a drop of 1.2% from 6,953 rupiah per kg and palm oil refiners offered RBD palm oil for cooking oil, at 7,500 rupiah per kg, which down from 7,750 rupiah per kg.The palm oil producers and manufacturers in North Sumatra’s Medan home to Belawan port that is the main port for palm oil exports, sold crude oil at 6,740-6,830 rupiah per kg on Tuesday, a drop of up to 5.5% from 7,137 rupiah per kg on Friday. Though a dealer of local plantation firm in Medan said “It doesn’t matter now whether it’s cheap or expensive, players just want stable prices to take position,”.

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It is very shameful for U.S.A that many corporations make large profits and pay nothing to support their country though these companies reported trillions of dollars in sales. A recent study of Congress shows that like other countries in U.S.A most of the corporations and foreign companies doing their business without pay no federal income tax. This new study by the Government Accountability Office, waited for to be released on 12 August Tuesday. It finds out those two-thirds of American. Corporations paid no federal income taxes between 1998 and 2005; on the other hand around 68 percent of foreign companies continue their business in the U.S.A avoided corporate taxes above the same time.

But nowadays there is increasing a good number of limited liability corporations as well as so-called “S” corporations pay their taxes under individual tax codes. On the other hand fifty percent of all business income in the U.S.A now ends up going through the under individual tax code.

The study did not identify or investigate why corporations were not interested to pay federal income taxes or corporate taxes, on the other hand it did not discover any corporations by name. The study said companies may escape paying such income taxes due to operating and management losses or on account of tax credits.
Moreover around 38,000 foreign corporations had no tax liability in the period 2005 and about1.2 million U.S. companies paid no income tax. Those companies combined had $2.5 trillion in sales. On the other hand, around 25% of the U.S. corporations not paying any corporate taxes were considered large corporations but these had no less than $250 million in assets or $50 million in receipts. The study said that the analyzed data from the Internal Revenue Service and it scrutinized over110, 003 tax returns from among more than 1.2 million corporations continue business in the U.S.A.

There is a complain about companies abusing transfer prices and it happen on amounts charged on transactions between companies in a group, for example a parent and subsidiary. Most of the cases, multinational companies are able to manipulate transfer prices to shift income from higher to lower tax jurisdictions, cutting their tax liabilities. But now the U.S government takes step for the big corporations to pay their fair share.