Category Archives: Business/Economics

Business/Economics, International

French Government Cracks Down, Because they want to go on Holiday

On the day the French Senate is to vote on a controversial retirement plan, French police have been ordered to crack down on protesters.  The first plan of attack for the police; get the oil refineries running again.

French gendarmes stand next to the entrance of the Grandpuits oil refinery southeast of Paris October 22, 2010 as striking workers continue to block the refinery. Police took over the Total installation, the CGT union said on Friday, in an attempt to end a blockade by workers striking over a planned reform of the pensions system. Police were expected to bring in workers who are not on strike later in the day. REUTERS/Benoit Tessier (FRANCE - Tags: POLITICS ENERGY EMPLOYMENT BUSINESS CIVIL UNREST)

The French government issued a ‘requisition’ order, which means they believe the strikes threaten public order.  A recent poll shows that 69% of the French support the strikes, but, when asked specifically about the shut down of the oil refineries the support drops to 52%.   It looks like the French government’s crackdown is actually motivated by upcoming November holidays.  Prime Minister Francois Fillon’s office issued this statement; “At a time when many French people wish to travel for the November 1 holiday weekend, it is in everyone’s interest to make all necessary efforts to return the situation to normal, which will take several more days.”

ATTENTION EDITORS : FRENCH LAW REQUIRES THAT THE FACES OF MINORS ARE MASKED IN PUBLICATIONS WITHIN FRANCE A high school student holds a sign as students French police during a demonstration over pension reform at Place Bellecour in Lyon October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. The sign reads, Police everywhere, justice nowhere . REUTERS/Robert Pratta (FRANCE - Tags: POLITICS EMPLOYMENT BUSINESS CIVIL UNREST EDUCATION)

French high school and university students continued to protest.  Trash collectors joined the strikes as well.

The delay on the Senate vote is because 250 amendments, to the retirement bill, are being argued over.

Business/Economics, Idaho, U.S.

Chubbuck, Idaho, to get 500 Allstate Jobs?

Allstate announced that Chubbuck, Idaho, will be the home of a new call center.  The building will go up across from the Chubbuck Home Depot, and could employ more than 500 people (if call volume supports that many jobs).

Lot where Allstate will build a Customer Information Center, in Chubbuck, Idaho.

They hope to have the 75,000 square foot building open by September 2011.  The Customer Information Center will handle not only incoming calls, but conduct outgoing customer calling.  This will make the fourth center for Allstate.  They have call centers in Texas, Illinois and North Carolina.

The Crossings, home to Chubbuck Home Depot, and now Allstate Customer Information Center.

There is some conflicting information about when hiring will start, and how much the starting pay is.  Some local media reports have stated that hiring will begin in November 2010, yet, the official Allstate press release says hiring will not begin until February 2011.  Allstate will post job openings for the call center “At the beginning of the New Year.”  Also, local media reports say starting salary will be $25,000 per year, some say $27,000.  The official press release does not indicate how much starting salaries will be.

Business/Economics, International, U.S.

Here we go again, Toyota recalls Millions of Vehicles

Today, Toyota announced that they are recalling 1.5 million cars and sport utility vehicles, in Japan and the United States, for faulty power brake systems and faulty fuel pumps.

NEW YORK - JANUARY 21: A Toyota Avalon is seen in a dealership lot in the Bay Ridge neighborhood of the Brooklyn borough of New York City on January 21, 2009. Toyota has toppled General Motors as the world's largest automaker for the first time in more than 70 years. . (Photo by Ramin Talaie/Getty Images)

The US recall includes 2005 and 2006 Avalon, 2004 to 2006 non-hybrid Highlander and Lexus RX330, and 2006 Lexus GS300, IS250, and IS350.

A Lexus sign seen at the Pohanka Lexus dealership in Chantilly, Virginia, on April 14, 2010. Toyota Motor Corp. suspended sales of the car after Consumer Reports warned shoppers not to buy the sport utility vehicle because of roll over concerns on sharp turns. UPI/Roger L. Wollenberg Photo via Newscom

The brake master cylinder leaks fluid, causing reduced brake performance.  The electrical fuel pumps can shut off, stalling the engine.  Get with your local Toyota or Lexus dealer to have the problems fixed (at Toyota’s expense of course).

Business/Economics, International

Britain Enacts Huge Budget Cuts, Will the British People Rise Up Like the French?

I was watching a debate on the French strikes, and a British commentator said that what was going on in France would never happen in Britain, because there are laws against such demonstrations.  I wounder, after the British government will start the deepest cuts in 60 years?

LONDON, ENGLAND - JUNE 22: Protestors dressed as Prime Minister David Cameron and Deputy Prime Minister Nick Clegg demonstrate against the budget in Parliament Square on June 22, 2010 in London, England. The Chancellor has announced a raft of tax increases and spending cuts to deal with the United Kingdom's growing debt. (Photo by Peter Macdiarmid/Getty Images)

By 2015, the cuts would amount to about 130 billion U.S. dollars.  490,000 government jobs would be cut over 4 years.  The retirement age would be raised to 66, four years sooner than first planned.  Even the rents on subsidized housing will be increased.  Also, the Value Added Tax (a type of sales tax) will increase to 20% (don’t go shopping there).  However, the British government plans to increase spending on things like cracking down on tax fraud, and anti-terror security.  Officials also claim that Health Care Services will not be cut, and that school funding will kept in “…real terms” every year.

A boy holds a poster at a public services protest during the second day of the Liberal Democrat conference in Liverpool, northern England,September 19, 2010.REUTERS/Nigel Roddis (BRITAIN)

But what will the People think?  There has already been past protests about the cuts,  as far back as June, so i don’t think that British commentator knows what he’s talking about.  According to al Jazeera, small protests have already started.

Business/Economics, International

French Senate Votes Friday, Travellers Walk to Airports, Lady Gaga Stays Home

Reuters is reporting that the French Senate will vote on a proposed increase to the retirement age, on Friday, October 22nd.  Originally the Senate was to vote Thursday, October 21st.  That proposal has sparked on again, off again strikes.  But the latest strikes have gone on for more than a week now, and involve everyone from teenagers to retirees.

To clarify the retirement age in France, because there has been some misreporting going on by the main stream media.  The current retirement age in France is 60, but that is not for full retirement benefits.  Full retirement is 65.  The proposal, of which the main elements have been approved by the French Parliament, would raise the age of partial retirement from 60 to 62, and full retirement from 65 to 67.

Passengers walk past a striking worker blockade as they arrive at the Marseille-Provence airport October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. REUTERS/Jean-Paul Pelissier (FRANCE - Tags: EMPLOYMENT BUSINESS POLITICS CIVIL UNREST TRANSPORT)

People using air transport had to walk to the airports because public transportation has been shut down.  Train workers joined the strike today, by forming blockades, and burning railroad ties.

Striking railway workers burn railway tracks during a demonstration at the old port of Marseille October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. REUTERS/Jean-Paul Pelissier (FRANCE - Tags: EMPLOYMENT BUSINESS POLITICS CIVIL UNREST)

The French Interior Ministry said that on Tuesday, October 19th, 1.1 million people went on strike across France. Union officials claim it was 3.5 million. Either way that’s a lot, when was the last time you saw even 1 million people protest on a single day in the United States? Even the Million Man March fell short.

ATTENTION EDITORS : FRENCH LAW REQUIRES THAT THE FACES OF MINORS ARE MASKED IN PUBLICATIONS WITHIN FRANCE. High school students shout slogans as they attend a demonstration over pension reform with private and public sector workers in Bordeaux, southwestern France, October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. The banner reads High school students don't beat a retreat . REUTERS/Regis Duvignau (FRANCE - Tags: CIVIL UNREST POLITICS EMPLOYMENT BUSINESS EDUCATION)

French high school students continue to protest.  Victor Colombani, a 16-year-old student and President of the National Union of Students explained; “Extending the age of retirement means reducing almost a million jobs for young people. We call for a fairer reform that takes into account years of study and periods of forced unemployment for young people.”

The Video Music Awards 2010 Arrivals held at The Nokia Theatre LA Live in Los Angeles, California in September 12th, 2010. Lady Gaga Fame Pictures, Inc

The strikes have also forced entertainer Lady Gaga to cancel her French tour. According to her website; “Unfortunately, as there is no certainty that the trucks can make it to the Bercy for this weekend’s shows, the Lady Gaga performances are now postponed.”

Business/Economics, International, U.S.

Venezuela & Iran Working to Create New, New World Order

On Wednesday, October 20th, Iranian President Mahmoud Ahmadinejad, and Venezuelan President Hugo Chavez, announced they had signed several energy deals, and, that they are working towards a new world order of their own.   Ahmadinejad stated; “We are united and determined to end the current injustice which dominates the world and replace it with a new world order based on justice.”

Iranian President Mahmoud Ahmadinejad embraces Venezuela's President Hugo Chavez during a welcoming ceremony for Chavez in Tehran, Iran on October 19, 2010. UPI/Maryam Rahmanian Photo via Newscom

Ahmadinejad also said; “If one day, my brother Mr Chavez and I and a few other people were once alone in the world, today we have a long line of revolutionary officials and people standing alongside each other. The enemies of our nations will go one day. This is the promise of God and the promise of God will definitely be fulfilled.”

Iranian President Mahmoud Ahmadinejad and Venezuela's President Hugo Chavez during a welcoming ceremony for Chavez in Tehran, Iran on October 19, 2010. UPI/Maryam Rahmanian Photo via Newscom

An example of how ignorant our government, and U.S. political advisers, have gotten, foreign policy analyst, Rick Casper said this deal between Iran and Venezuela was proof that U.S. sanctions are working.  What an idiot!  He also said; “There is no other country willing to do business with Iran except Venezuela.” Idiot!  Who do you think is building Iran’s nuclear power plant?  Russia!  Iran also has deals with China, and many Central Asian countries, as well as European countries.  This is the level of intelligence of U.S. foreign policy analysts?

Business/Economics, International, U.S.

Venezuela Building Nuclear Plant, says Yankee Empire Behind World Aggression

It’s interesting how our government, and main stream media, is so rabid about going after Iran’s nuclear power ambitions.   And now, in the back yard of the United States, Venezuela has signed a deal with Russia to build a nuclear reactor. I’m not seeing any rabid war mongering coming from our government, or media, about it.  Mmmm.  Here’s what U.S. State Department spokesman Philip Crowley had to say about it; “It is certainly a right of any country to pursue civilian nuclear energy, but with that right comes responsibilities,”.  Not as tough sounding as with Iran.

ITAR-TASS: MOSCOW, RUSSIA. OCTOBER 15, 2010. Russian president Dmitry Medvedev, Venezuela's president Hugo Chavez (R-L) sign agreements at the Kremlin. (Photo ITAR-TASS/ Mikhail Klimentyev) Photo via Newscom

Hugo Chavez, President of Venezuela, is traveling the world.  His first stop, Russia, where he gave a speech denouncing the United States, and expressing sorrow for the fall of the Soviet Union.  The nuclear plant deal was part of a larger economic deal with Russia.  Another part of the deal involves the sale of Venezuela’s stake in four oil refineries that are co-owned by a German company.   Other petroleum deals with Russia involve the sale of Venezuelan assets co-owned by British Petroleum (BP, remember those guys).  Gee, that doesn’t sound like a communist thing to do?   Chavez stated; “I’m a socialist, but also a good merchant.”

KIEV, UKRAINE. OCTOBER 18, 2010. Venezuela's President Hugo Chavez (C) touring the Antonov aircraft assembly plant in Kyiv, accompanied by its President and General Designer Dmitry Kiva (L). Photo ITAR-TASS / Vladimir Sindeyev Photo via Newscom

Chavez also stopped in Ukraine, and had a tour of the famous Antonov aircraft factory.

In a Russia Today interview, President Chavez blamed the current violent state of the world on the “…Yankee Empire.” (I wounder how many U.S. citizens know that ‘Yankee’ refers to them).  Russian President Medvedev said Russia and Venezuela are working to create a world order not dependent on the United States; “…a world order where our future would not depend on the will, desire, or mood of some country, but on joint efforts of the international community, and, indeed, internal development.”

Business/Economics, International, U.S.

French Strikers Blockade Airports. Don’t Get It?

The anti-government strikes continue in France. Strikers are now blockading airports.  French police opened access to most oil depots, although strikers managed to re-blockade one oil depot.  Liquid Natural Gas workers are now refusing to unload ships carrying LNG.  The French Government is saying they have things under control, and that strikers, like the high school students, will stop, because of an upcoming school holiday.

French striking workers block the Charles-de-Gaulle airport in Roissy near Paris October 20, 2010. Striking public sector workers disrupted travel across France as trade unions kept up their resistance on Wednesday to an unpopular pension reform due for a final vote in the Senate this week. REUTERS/Gonzalo Fuentes (FRANCE - Tags: CIVIL UNREST EMPLOYMENT BUSINESS TRANSPORT POLITICS)

Why is the retirement age increase so important to French workers? Basically because it was a long hard fight to get a retirement system, and now they see this as baby steps to taking it away.  It is a quality of life issue for the French.    Here’s what retired French policeman, Michel Fourgues, had to say: “I am a retired police officer, and we have known times when we earned very little money, but it did not bother anyone. Today we have a pension, we deserve one, and we wish the same thing for the younger generation.”

Demonstrators march through the streets to protest the French government's attempt to raise the minimum retirement age in Paris on October 19, 2010. Trade unions and students have staged nationwide street marches and disruptive strikes throughout France over the last few weeks. UPI/David Silpa Photo via Newscom

Another issue is jobs.  France has an unemployment rate of almost 25% for workers under 25 years of age.  So, naturally the youth feel threatened by an increase in the retirement age.  One protester’s sign read: “Grandpa took my job.”

A demonstrator marches through the streets to protest the French government's attempt to raise the minimum retirement age in Paris on October 19, 2010. Trade unions and students have staged nationwide street marches and disruptive strikes throughout France over the last few weeks. UPI/David Silpa Photo via Newscom

I don’t get it. People in the United States are facing increasing retirement age, yet no one seems to care as much as the French care.  Isn’t quality of life important?  You really want to work most of your life at jobs you hate, and, compete with your own children, or even your grand children?  I don’t get it.

Business/Economics, U.S.

Wells Fargo Making Profits, How? Magic?

Another big bank involved in foreclosing on homeowners, is reporting record profits.

OAKLAND, CA - JULY 22: A customer uses an ATM at a Wells Fargo Bank office July 22, 2009 in Oakland, California. Wells Fargo reported an 81 percent increase in second quarter profits with earnings of $2.58 billion, or 57 cents per share compared to $1.75 billion, or 53 cents per share one year ago. (Photo by Justin Sullivan/Getty Images)

According to the Mercury News, Wells Fargo posted a $3.3 billion profit for the 3rd quarter.  That’s 3.1% higher than last year, and yet, the bank’s actual revenues were down from the previous year, by 7.1%.  How do you get profits that are up from the previous year, when your revenues are down from the previous year?

Time for some math.  The formula for figuring profits is:

Profit = Revenue – Costs, or, Revenue – Costs = Profit

However you look at it, basically you can not have an increase in profits with  decreased revenue.  Unless you’ve somehow come up with a way of eliminating your costs, or some other accounting Magic?  (take some economics or accounting courses and you will find lots of Magic being used)

As far as foreclosures go; John Stumpf, Wells Fargo’s chairman and chief executive, says they are following the rules.

SAN FRANCISCO - APRIL 27: A Wells Fargo security guard attempts to move a protestor from the front of the building during a demonstration outside of the Wells Fargo Bank shareholders meeting April 27, 2010 in San Francisco, California. Hundreds of people held a demonstration outside of the Wells Fargo Bank shareholders meeting to protest Wells Fargo's alleged involvement in the financial collapse and excessive CEO and executive bonuses. (Photo by Justin Sullivan/Getty Images)

In a CNN/Fortune article Wells Fargo tries to make themselves look like the lesser evil in the housing foreclosure conspiracy.   Wells Fargo claims they are foreclosing only 1 in 12 mortgages (oh that’s not a lot?), compared to Bank of America with 1 in 7 mortgages being foreclosed.

CHICAGO - APRIL 09: A Wells Fargo sign hangs on the door of a Wells Fargo home mortgage office on April 9, 2009 in Chicago, Illinois. Wells Fargo & Co said it expects to post a record $3 billion first-quarter profit exceeding analysts� expectations. (Photo by Scott Olson/Getty Images)

Business/Economics, U.S.

Housing Start Numbers BS say Contractors

According to a CNN report, despite housing construction start numbers being up, contractors says actual construction is flat.

The official Federal government housing start numbers only indicate the number of construction permits approved by local governments.  Contractors say that banks are refusing to finance most new construction.

NORTH LAUDERDALE, FL - AUGUST 11: A building permit is seen on the wall as workers refurbish a home that Habitat for Humanity bought in a foreclosure sale on August 11, 2010 in North Lauderdale, Florida. In the nationwide program the organization purchases bank-owned homes and turns them into safe, decent, affordable place to live. (Photo by Joe Raedle/Getty Images)

“Remember a couple of weeks ago when they came out and said guess what the recession was over? That rumble you heard was the construction industry laughing their ‘friggin’ brains out,” says contractor Paul Kinney, owner of a top 500 home building company in the United States.  Another problem is that some U.S. banks agree to fund a project, then, as the project is about to start, they cancel the funding.

Contractors are saying that most big construction projects that do get built, are being built with foreign money.