All posts by Hutchins AAron

Born in Deutschland 1965, hometown was Bütthart, parents were not U.S. government employees. However, when father was tricked into joining the U.S. Air Force Civil Service, in 1969, with the promise that we could remain in Germany, we were promptly shipped off to Iran. Due to one of my Iranian educators being disappeared, along with her husband, by the U.S. ally Shah of Iran's Israeli & U.S. created Savak (for the then official terrorist act of promoting the idea that women can vote), and due to my U.S. citizen mother being placed on Savak's Terrorist Arrest List (for supporting the idea that women should vote, at that time the U.S. ally Shah of Iran did not allow women to vote, now they can) we left Iran for the United States in 1973, literally in the middle of the night. At the U.S. Embassy airbase the CIA operated Gooney Bird (C-47) was so packed with other U.S. citizens fleeing our ally Iran (because the Shah gave the OK to arrest any U.S. citizen for such terrorist acts as promoting the concept of voting) that we were turned away by the Loadmaster and had to take a chance on a civilian flight out of Tehran's airport. My father told me he and my mother had three culture shocks; first when they arrived in Germany as civilians, then after being shipped off to Iran as U.S. government employees, then again returning to the United States as unemployed civilians (because so much had changed in the U.S. while they were gone, their only news source was the U.S. Armed Forces Radio & Television Service which heavily censored information about the home front). Since I graduated high school in 1982 I've worked for U.S. government contractors and state & local government agencies (in California), convenience store manager in California, retail/property management in Georgia, California and Idaho. Spent the 1990s in the TV news business producing number one rated local news programs in California, Arizona and Idaho. 14+ years with California and Idaho Army National Guard and the U.S. Air Force. Obtained a BA degree in International Studies from Idaho State University at the age of 42. Unemployed since 2015, so don't tell me the economy has recovered.
Business/Economics, International

What Economic Recovery? Japan to fight inflation with butter, lots and lots of butter, it’s not funny

Inflation is hitting other countries harder than the United States (so far).  In Japan inflation has caused the price of butter to go up so high, that the government announced they will flood the butter markets with more butter.

But that butter isn’t coming from Japan.  Butter production collapsed after the March 11 disasters, so the Japanese government will import 2,000 tons of butter.

It’s not just butter that will be imported, but fish as well.  This is no thanks to the radiation being poured into the Pacific Ocean off the Japanese coast.  Japanese fishermen are having a hard time selling their catch, even if it’s certified to be free of radiation.  The result is a fish shortage, and of course the price is going up.  Japan will import 13,700 tons of fish.

The situation in Japan will only strain the growing world food crisis.

Business/Economics, International

What Economic Recovery? Will Sony join Hitachi and stop making TVs in Japan?

Believe it or not the electronics giant Sony has been losing money big time on TV sales.  Prior to the March 11th disasters Sony lost about $95 million from TV sales.

Hitachi recently announced they would shut down their last Japanese TV factory by March 2012.  They claim they’re losing to competition from South Korea.

Sony says it wants to continue to make TVs in Japan, in fact they say making TVs is “the biggest and critical issue” for Sony.

Sony would not give any details of their plans to rebuild their TV business, but analysts think Sony is hoping to expand sales in emerging markets.

The concern over TV production is overshadowing Sony’s next generation video game system, the PlayStation Vita, which is due to be released at the end of the year, or beginning of next year.

Business/Economics, U.S.

Government Incompetence: IRS will not collect lost tax revenues caused by FAA shut down, airlines get away with not paying taxes

Recently it was announced that the U.S. Senate made a deal that would put thousands of FAA employees, and contractors, back to work.  This after it was revealed that the government was losing hundreds of million in tax revenues from the FAA shutdown.  Those loses far outweighed the savings from not having to pay the laid off FAA employees.

Now the Internal Revenue Service says they will not attempt to recover those lost airline ticket taxes.  IRS officials say they were ordered by the U.S. Senate not to collect taxes on ticket sales relating to flights made during the FAA shutdown.

Also, people who flew during the FAA shutdown, but bought their airline tickets before the FAA shutdown, will not get the taxes they paid refunded.  Since the airlines are not required to pay the IRS the taxes they collected, on tickets for flights that occurred during the FAA shutdown, essentially the airlines made some free money.

Business/Economics, U.S.

What Economic Recovery? Fannie Mae wants another $5 Billion bailout from taxpayers

The mortgage lender Fannie Mae reported a huge 2nd quarter loss of $5.2 billion. Now they want another $5.1 billion from taxpayers.

Let me remind you that Fannie Mae asked for $8.5 billion back in May!  So far the mortgage lender has gotten about $99 billion in bailout money from the U.S. government (taxpayers).

Fannie Mae officials say the answer to the continued housing finance crisis is jobs: “We’ve got to clear the mortgage market of the excess inventory and employment needs to recover, I believe, before we’re going to see a stabilization of home prices.“-Susan McFarland, Fannie Mae Chief Financial Officer

U.S.

United Police States of America: TSA deprives diabetic pregnant woman of insulin

“It made me feel upset and made me feel somewhat helpless.”-Aaron Nieman, husband of TSA victim

A pregnant woman flying from Denver to Phoenix, was deprived of her insulin by TSA officials.  They claimed the insulin could be used to make a bomb!

The woman even had a note from her doctor explaining her situation, the Transportation Security Administration official didn’t care.

What makes this even more alarming is that they let the woman keep hair spray, nail polish, and even the syringes used to inject the insulin!

Luckily, the woman managed to sneak half a vial of insulin past the TSA idiots, and she was able to arraign for more insulin when she got to Phoenix.

Business/Economics, International, U.S.

U.S. Debt: The Big Three countries U.S. taxpayers are beholded to, U.S. government bonds drop in rank

Most people know that China is the largest foreign holder of U.S. debt.  Japan is the second biggest, and the United Kingdom (Britain) is the third.

According to the most recent information, China holds a little more than $1 trillion in U.S. government debt (bonds), Japan holds $912 billion and the U.K. holds $346 billion.  Those bonds are held not only by foreign governments, but by private banks and corporations.

Standard & Poor’s downgrade means that U.S. government bonds are now ranked 2nd place.  Germany, United Kingdom and France still hold their triple A 1st place ranks.  Interestingly the Federal Reserve Bank (not a government agency) says the drop in ranking will not change how they handle U.S. bonds.

The problem is that foreign banks will surely change how they handle U.S. bonds.

The majority of U.S. government debt is still held within the United States, by banks, corporations, individuals and taxpayers via the U.S. Treasury.

 

 

Business/Economics, U.S.

S & P’s says Debt Limit Deal not enough, downgrades the United States anyway, U.S. officials cry foul

Standard & Poor’s downgraded the U.S. from a triple A credit rating to double A plus.  They cited three main reasons.

Reason one is that the GDP to debt ratio is too high for triple A.  They estimate the U.S. has a 74-79% debt to GDP ratio.  Some European countries have higher debt ratios, but S & P’s says those countries have implemented plans that give them a better chance at getting their debt under control (why do you think there’s so much rioting going on over there).  S & P’s says there are no signs the U.S. can get its debt undercontrol.

This brings us the the second reason for the downgrade: The Debt Limit Deal won’t bring down the debt.  The Debt Limit Deal aims to cut government spending by $2.1 trillion over ten years.  Standard & Poor’s says that doesn’t even come close.  They claim at least $4 trillion needs to be cut, and they say $4 trillion would be just a “down payment” against U.S. debt.  Obviously the elected officials in Washington DC still don’t realize the seriousness of the situation.

That brings us to the third reason: Government incompetence.  S & P’s says the lack of performance by elected and appointed federal government officials proves they are not taking the issue seriously: “The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned.”-Standard & Poor’s

Of course officials at the U.S. Department of Treasury are crying foul.  They claim there are mistakes in the official S & P’s notice of the credit rating downgrade.  S & P’s says they will review it for any mistakes.

 

 

International, U.S.

Russian envoy to NATO reveals planned NATO attack on Syria, says Iran is next

“This statement means that the planning of the military campaign is well underway. It could be a logical conclusion of those military and propaganda operations, which have been carried out by certain Western countries against North Africa.”-Dmitry Rogozin, Russian envoy to NATO

The “statement” refers to the recent UN Security Council’s statement against Syria.

Rogozin also says the U.S. led NATO attacks on Libya, and the build up against Syria are all part of the “west’s” plan to invade Iran, and finally take total control of the oil rich region: “The noose around Iran is tightening. Military planning against Iran is underway.  And we are certainly concerned about an escalation of a large-scale war in this huge region.”


U.S.

United Police States of America: Anonymous political cartoonist to be arrested for posting cartoons about bad cops

Mr Fiddlesticks is wanted by the Renton Police Department, in Washington state.  The anonymous cartoon poster’s crime?  Stalking police by making cartoon parodies of real life cases of bad police behavior.

A local Washington media source broke the story.  The actual court documents show that the local police department is simply out to avenge the parodying of actual cases of cops who got caught misbehaving: “…discussed a past incident that has already been investigated….regarding a dating relationship (a female detective) had with a suspect.”-from the actual search warrant

An attorney who specializes in cyber law says the police action is pathetic and the case won’t stand up in court: “The cyberstalking angle doesn’t pass the laugh test.  It’s a serious stretch and I’d be surprised if somebody looked at it and realistically thought these acts actually fit the statute and we could make somebody criminally liable.”-Venkat Balasubramani

This tells me that the Renton Police Department are afraid that Mr Fiddlesticks might reveal some bad cop behavior that has yet to be made public, and they want to stop him before it happens.

 

Business/Economics, U.S.

What Economic Recovery? Ford, GM, Chrysler; can we trust their sales and profit reports? U.S. auto sales actually stagnating

Ford and GM reported profits in July.  They also reported increased U.S. sales.  Ford claims 9% increase, GM an 8% increase, while Chrysler claims an incredible 20% increase in U.S. sales.

This while Japanese car makers Toyota and Honda reported that their U.S. sales crashed by more than 20% each.

Despite Chrysler reporting a 20% increase in sales, they claimed a net loss in profits, from buying back stocks from the U.S. taxpayers (interestingly the U.S. taxpayer also lost money).

Ford reported a small 9% increase in sales, but a big increase in profits.  One reason is because they jacked up the prices of their cars.  According to one report, the price increases accounted for $900 million of Ford’s profit.  Profiting by inflation.  Ford’s Chief Financial Officer, Lewis Booth, said they expect a drop in U.S. sales in the second half of 2011.

GM reported a small 8% increase in July sales, with a profit of $2.5 billion.  Remember GM still owes U.S. taxpayers for the bailout.  However analysts say now would be a bad time for taxpayers if GM decided to buy back its taxpayer (U.S. Treasury Department) held stock.  Just like the Chrysler buy back taxpayers would lose big time.  Most of GM’s sales came from pickup trucks.  The problem is that GM still has a surplus of pickup trucks, equal to a 115 day supply.  In order to get the surplus inventories down GM will continue with planned factory shut downs, that means more people out of work.  GM officials also expect the second half of 2011 to be hard on sales.

Mitsubishi reported an amazing 41% increase in July sales, while sales for most other Japanese companies stalled or crashed.

German car makers did well: Volkswagen reported a respectable 21% increase (not counting their AUDI brand).  Mercedes had a 13% increase.  BMW increased by 11%.

British companies Jaguar and Land Rover went in opposite directions, with Jaguar down 0.3% and Land Rover up 22%.

The problem is that you can’t go by percentages.  Here’s an example: Even though Toyota’s U.S. sales for July were down 22.7%, they still sold 130,802 vehicles in one month.  Compare that to Chrysler’s huge gain of 20%.  In July they sold 112,026 vehicles, still less than Toyota.

For another example of how percentages can deceive, let’s look at Mitsubishi and GM.  Mitsubishi reported an amazing 41% increase in July, but the actual number of vehicles sold that month was only 7,972.  GM reported a 8% increase in U.S. sales.  Sounds small, but the actual number of vehicles they sold in July is 214,915.  That makes GM the sales leader, however GM officials pointed out  they’re still stuck with a surplus of vehicles to sell.

So, is the auto industry on the rebound, or not?  Overall light vehicle (cars & pickup trucks) sales indicate that the auto industry stagnated in the month of July.  Car sales down 3%, pickup truck sales up 4.8%, almost cancelling each other out.

Data from Autodata Corp