Economics, Promissory Notes, and Escrows

Individuals, families, companies, and nations all make economic decisions. All have limited amounts of money, requiring each to make hard choices on how to spend their financial resources. Each carry their own system of dispensing their finances:

Households make a decision between paying the rent and buying medicine;
Making a decision involving entertainment--it's a choice between buying a ticket to a movie or a football game;
Companies make decisions based on using their savings to purchase more merchandise, take a vacation, or pay bonuses;
Nations too, have to make a decision between spending on natural defense or building highways

In economic terms, families, storekeepers/businesses, the nations--all must economize in order to satisfy their most important needs and wants.

An economy grows when it produces more goods and services: factories, machines, farming, and education. An economy must grow to provide people with an increased standard of living--more and better goods and services. The faster an economy grows the faster the standard of living increases.

Four elements are recognized as productive resources:

natural resources: soil and water;

capital: factories, tools, supplies and equipment; capital also means money to buy things;

labor force: people who work and people who are seeking work, and;

technology: scientific and business research and inventions

Of the four elements listed, capital, the money to buy things, is our subject. Capital is an asset or resource from which one can buy or sell.

A promissory note is an asset or capital. A promissory note is a documented written agreement (sometimes a legal document) that states a promise to pay, and the terms which include the total amount due, amount to pay and frequency (i.e.: weekly, monthly, semi-monthly, annually), interest rate, and the length of time to fulfill the commitment.

Banknotes have evolved over time. Original money was based on precious metals. Banknotes were seen as an essential IOU (a promise to pay note but without a specified payment to pay or payment plan). With the removal of the precious metals from the monetary system, banknotes evolved into the credit card system we know today.

With the increase of technology and computers, the money system now includes credit/debit cards, prepaid credit cards, and online banking.

The value or devalue of the dollar is driven by our economic system as seen by the ups and downs of the Wall Street market (stocks, bonds).

Known types of notes: real estate (residential and commercial property); structured settlements (involving lawsuits with an injured party, and a final judgment, order, decree, deed, lien); and wills (estates, trusts, probate and inheritance).

Terms of a note: principle amount, payment plan and frequency, interest rate, if any, and the maturity date. In the event of a default for failure to pay, language is included on behalf of the payee's rights if foreclosure of assets is involved.

Demand promissory note: Notes that do not carry a specified date of maturity are due on demand by the lendor. The lendor will usually give a few days notice before the payment is due.

Promissory notes when sold, can serve to solve a financial crises to families, companies, or nations to satisfy a need.

Once sold, the promissory note is sent into escrow for safekeeping and monitoring of payments processed.

An escrow can also be referred to as a trust account, or trustee (a financial institution).

The process of an escrow is a documented written agreement given by one person to another person for delivery to a neutral third person after a financial transaction has taken place (i.e. a contract or promissory note). This third person is referred to as an escrow agent.

The agent receives the document from the grantor (the seller-receiver of payments), and holds it for the grantee (the buyer--maker of payments) for handling the paperwork and transfer of funds.

The agent creates a ledger (record of payments), containing the details of the installment of payment schedule:

creates the principle amount due; records the amount paid, and the interest rate;
calculates late fees, if any;
the ledger is posted with any overpayments or adjustments;
accommodates for any custom language, ie. balloon payment;
calculates any early payoffs or balloon payment;
handles any "insufficient funds" checks and forgeries;
sends out any notices as needed to parties;
deposits funds received and transfers to seller;
holds and distributes any funds for property taxes or homeowner's insurance fees;
the agent can deduct an escrow fee for processing and handling activities, including paying off liens, clearing titles and other debts associated with the account

This processing continues until the conditions of the note have been met, thereby protecting both the seller and the buyer.

Most escrow documents are deeds to land. Stock certificates, stocks, bonds, and even cash may be placed in escrow. The terms of most escrows are stated in the promissory note.

An escrow cannot be changed unless all parties agree by modifying the original promissory note.

If parties are intent on creating their own promissory note, and if unusually large amounts of money is involved, it's to each party's interest to discuss it with a reputable attorney.

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Come, visit the Resource Shoppe which has been created to provide any interested consumer on the different types of books on a variety of notes.

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Fundamentals and Basic Principles of Economics - Domestic and International Approach

Wherever we go, economics is everywhere all over the world and it can be located in all major continents around the globe. This begins in domestic up to global approach. In my own opinion, economics is a social science. There are several branches of economics to deal with and these are: Sociology that studies the society and culture, Physics that studies the useful in the production of goods and services that produces machines and electricity,Political Science because it will study the economic policies of each leaders across the globe because it influence from the government of economic activities,History that studies the past, present, and future events of economic developments, Religion because it will based on the studies of religious traditions and beliefs that can encourage or discourage of economic development.

Readers and Viewers must discover and know the content of economics. This article will be tackling fundamental and basic principles of economics. Fundamentals of economics is focus on banks or banking, business, business cycle, depression, economic freedom, income, inflation, investment, labor force, manufacturing, marketing, money, monopoly and competition, consumer price index, cost of living, physiocrats, price, production, profit, property or dealing with real estate business, recession, rent, standard of living, supply and demand, trust, unemployment, value added tax in which I believed that this term will be understand by the viewers. The meaning of economics is very simple. According to Fajardo, the author of his book titled "Economics" third edition, The meaning of economics is the social science that deals with proper allocation and efficient use of available resources for the maximum satisfaction of human needs and wants.

Here in economics, there is also an economic system and theories to be learned by the readers and viewers. They must know the information of capitalism, communism, economic determinism, Facism, laissez faire theory, Theories of business cycle, Manioralism, Mercantilism, Socialism, and Syndicalism. They must take note that economic system is a set of an economic institutions that dominates a given economy. There is also a history in Economics from past to present times, even in the future. According to Fusfeld, who has a knowledge of John Meynard Keynes or known as "Baron Keynes of Tilton" that has a famous books which is very popular until now titled "Keynes General Theory of Employment, Interest and Money" which was written in the year 1936 which ranks among the most important books on economics. Aside from this, among his other works are A Tract on Monetary Reform written in year 1923, The End of Laissez Faire Theory written in year 1926, and also A Treatise on Money written in year 1930. There are also future in economics and these are called "ethico-economics in which I will discover it on my next article and next is economic crisis that cannot predict when will it happen so it belongs to the future.

After mentioning the introductory part and historical background of Economics, this time I will proceed to domestic approach. The writer of this article will focus on the Philippine Financial System in order to share ideas, thoughts, and opinions from other nations. This article is a big help for those who will take Master's and Doctoral Degree in Economics. In Philippines, the most common financial institutions are based on banking, pawnshops, insurance companies,lending, financial or lending companies. The Banngko Sentral ng Pilipinas or known as BSP (former Central Bank of the Philippines) is the central monetary authority and their purpose is to maintain monetary stability, and to promote a balance and sustainable economic growth.

The last part content will be international approach because it deals with global economy. In our planet Earth, seven continents around the globe gather to participate in International Trade. To those who are interested in this part of my article, they can find or search it in tariff, trade, International Monetary Fund or known as IMF, Asian Development Bank or known as ADB, Exports and Import, Common Market, Exchange Rate, World Bank.

To understand the meaning of international trade, according to James B. Calderwood, "International trade is the exchange of goods and services between countries and it is sometimes called "world trade" or "foreign trade". to explain this meaning, it enables a nation to produce the goods it can make the most cheaply and exchange them for goods it finds more costly to produce from one country to another countries. That is how the international trade means to the economics. The good example that practice International Trade is Japan because they can compete with other countries.

The World Bank, International Monetary Fund, and Asian Development Bank are the major lenders to our country. Their development funds have been focus on economic development such as agriculture.

After mentioning my content of economics from domestic up to global approach, they must take note that we are in the concerns of social responsibility this is not referring to the rich or poor people.

A. Books

Calderwood, James B. "International Trade" Vol. 10, The World Book Encyclopedia. Chicago, World Book, Inc.,1985.

Fajardo, Feliciano R. "Economics" 3rd Ed. Sta. Mesa Heights,Quezon City:Rex Printing Company, Inc. May,1996.

Fusfeld, Daniel R. "Keynes, John Maynard" Vol. 11, The World Book Encyclopedia. Chicago, World Book Inc.,1984.

Your Country Is Called Earth! Global Economics Are the New Truth

In a recent article by Jeff Seigel, he cited a number of responses to a news release outlining General Electric's decision to commit to a Joint Venture with Harbin Power Equipment to build wind generation turbines in China.

I was flabbergasted to read that there are still people on this planet who are living under the illusion of "our patriotic duty" being to horde all business activities within the boundaries of their homeland rather than abroad.

Even President Obama does not seem to wave the "Buy American" flag much anymore.

After all, what is there to buy that is all American, or even completely made in the United States? I will bet you that even your favourite American car or even Harley Davidson motorcycles are not completely made of parts made in the "Good Old US of A".

This type of patriotism died back in the 1980s when US manufacturers set up factories in Mexico, China, Indonesia and other smaller nations with cheap labor. That was the time people should have been voicing their opinions about nationalism.

I remember years ago speaking with an engineer at a pulp mill in a small town in northern Canada. He told me that the unionized staff was going on strike because they were going to have whatever pay raise they wanted and would stay off the job until they got it. Their rationale was that since they were the only pulp mill in town, they could ask for whatever they wanted!

I don't mean to seem insensitive to people's concerns or to disrespect their right to speak out, but I do want to say that everyone, including these people, need to understand that we now live in a world economy. We need to understand that the competition to the pulpmill in Mackenzie, BC is located in Norway.

Almost everything we purchase today is produced somewhere else. In order for your American or Canadian based company to prosper, we all need to support their ambitions and investments in other countries.

The people who provoked Jeff's writing of this article even went more insane when they chided GE for building the turbines in China. If they had read the article further, they would have realized that rather than chastising GE, they should be looking for ways to invest in the project. After all, the turbines were for Chinese use (so they can produce all those great toys you like to have).

The world is changing. It will continue to change. We may want to keep things the way they were and we may even feel fear over losing control of our lives, however, this tide is here and is almost at Tsunami proportions.

Trying to hold on to old concepts of protectionism is just going to leave you behind. With the challenges we are facing in the world economics, we just cannot afford to have one person hanging on to the old ways. After all, this will just leave broke and frustrated people in its wake.

China in particular, but also India, Brazil and several other countries that are becoming the rising stars of world economics need to be in your view. If you are an investor, they must be in your portfolio or you will continue to see your funds slipping away as we have seen for the last two years.

The world is our country. Be proud of where you live and do what you can to make it a better place to live but for your sake and for the sake of the world's economic future hold your hand to your heart and adapt the world as your home!

Monty Ritchings, the contributor of this article, is a free lance writer who provides IP support services to Lucky Strike Resources Ltd.

This article is inserted for reader interest only. It is the opinion of the writer and not necessarily the opinion of the owners of this website or Lucky Strike Resources Ltd. ( http://www.luckystrikeresources.com )

At no time are any statements that appear in this article intended to lead the reader to invest in any particular stock. Due diligence is always encouraged before making any investment.

Obesity and Economics: Part 2

In the last article, you were introduced to the connection between obesity and poverty as well as the systems that enforce that relationship. Here you will read about a few options our government has to turn the situation around, as well as tips on how to eat healthy even in this backward system.

Food Subsidies: Need for Change

When a government contributes to its own national health crisis, it is time for a change of policy. The giant corn, soy and meat industries are contributing to the obesity epidemic in America. Removing the subsidies legislated by the farm bill would instantly and drastically change the American dietary landscape; in what way, however, remains a controversial topic.

One argument against removing subsidies from the corn and soy industries is that their production would decrease and their cost, increase. This would mean that the production of processed foods would decrease and the poverty-stricken would have nothing at all to eat.

There are a number of possible points of contention within this argument. First, these markets are currently subsidized so heavily that we produce far more than Americans can consume. The surplus is "dumped" onto other countries at an extremely low price. This prevents the people of that country from making money off of their own labor to grow these crops. If we stopped producing so much surplus, this problem would be eliminated.

Another consideration is that the reallocation of land that has been set aside for corn and soy would be available for growing other, healthier forms of produce. Since more produce would be supplied, its price would decrease.

Without subsidizing the corn market, it may be too expensive to go through the process of extracting corn syrup. Imagine a world where corn is just corn and not the focus of laboratory experiments! A removal of the importation restrictions on sugar associated with corn subsidization would allow corn syrup to be replaced by an affordable and less hazardous sweetener.

While some argue that removing agricultural subsidies altogether would be best, others advocate the subsidizing of healthy food crops. For more on the complex nature of subsidies and the possible effects of removing them, see the article "Tackling Obesity Though Agricultural Policy" by Erin Miller.

Another way to combat the accessibility and affordability of junk food is to make food stamps and WIC benefits usable at farmer's markets. This is unfortunately not a national standard, but there are grassroots example of this occurring. In the Philadelphia area, for example, a group called the Food Trust teamed up with the Philadelphia Department of Public Health to create an incentive program for people receiving government assistance to purchase healthy, fresh foods. The program is funded by a federal grant called Communities Putting Prevention to Work. For more on this initiative, please see http://www.thefoodtrust.org/php/programs/farmers.market.program.php.

What You Can Do Now

Culture and policy do not change overnight, and you can't afford to wait for the day of change to come to you. Though there are certainly obstacles between you and healthy food, they are not insurmountable. The very first step is to acknowledge that what is easiest to obtain is toxic to your health.

Next, it's time to do your research. Find out if there is a farmer's market, produce farm, meat farm or bakery near you. You are on a mission to find whole foods, foods that have little to no processing. Whole foods don't contain added fats or sugars that are normally used as stretchers. Strive to purchase only foods with ingredients you can pronounce and identify.

With local farms, it may be possible to obtain cheap, fresh produce. Some farms may sell their products in bulk, and since transportation is not an expense, the food may be affordable even on a tight budget.

Local co-op stores offer you a share in their business in exchange for membership. This often entails a small amount of work on your part, a discount on purchases and a small cut of their profits every year. They also generally have bulk sections where you can purchase high-quality grains, dried beans, herbs and spices for a very reasonable price.

If you do not have access to these quality markets, there is still a way to avoid heavily processed foods. One tip is to eat in season. Find out what produce is in season and try to limit yourself to it. Frozen vegetables are an option if your selection is not in season. Since these fruits and vegetables are frozen almost immediately after being harvested, they contain near maximum nutrient content. Produce that is harvested, shipped and sitting on a shelf for days has degraded nutritional value.

It is surprisingly fast and inexpensive to prepare a healthy meal using a small number of wholesome ingredients. This will take a little more time and creativity than throwing a frozen pizza in the oven, but it will leave you with a meal you can feel good about and enjoy much more.

While it is possible to work toward a healthier diet in a nation where the worst foods are the easiest to get, there will not likely be a national movement toward health until some of the obstacles are removed. When a government simultaneously endorses health and disease, public consciousness cannot be clear.

Perhaps the most important cultural step in the health movement is to stop talking about obesity as a mere aesthetic phenomenon and to emphasize the very real danger of it. Being fit isn't just about looking good; it's about living a longer, better life.

Life is a matter of choice. And believe it or not so is back pain. However, obesity and back pain may not be. Questions, comments or stories related to this article can be submitted here Contact Us