Category Archives: Business/Economics

World War 3, East Asian Front: South Korean bank paralized!

10 April 2013 (14:35 UTC-07 Tango)/29 Jumada l-Ula 1434/21 Farvardin 1391/01 Bing-Chen (3rd month) 4711

The ROK bank, NongHyup Bank, reporting that its internet banking service is paralyzed.  They do not know why.  Technicians are working at their operating system location in Anseong, they hope to have it solved before tomorrow.

World War 3, Economic Front: U.S. job losses & store closings 22 February 2013.

Hawaii’s Schofield Barracks furloughs 100 shipyard workers, pending federal government budget cuts. Also, the Pearl Harbor shipyard threatening to layoff 350 employees!

12 firefighters in Lorain, Ohio, now unemployed.  City officials blamed the expiration of a federal grant.

Giant City School District, in Illinois,  laid off 14 employees. School officials blame massive state funding cuts.  And after 30 years, Chiasso furniture store closed down in Chicago.  The owner blamed the bad economy.  Also, Chicago Public Schools wants to close two charter high schools. School officials say their budget is short $1 billion USD!

In New Hampshire, cable company MetroCast laid off 16 employees. The company will outsource (contract out) its installer positions, in an effort to make bigger profits.  And Hubbingtons Furniture closed their Hampton store. Operators blamed the property manager for making it not worth renewing the lease.

In Tennessee, Lincoln Memorial University refused to renew contracts for 13 teachers.  School officials blame declining graduate student enrollment.

In Plano, Texas, J.C. Penny laid off 300 more employees!  More layoffs are expected. Company officials refused to talk to local media.

In California, Abbott Vascular laid off another 450 employees! The cardiac and vascular care product maker laid off workers at their Temecula factory, and their French Valley distribution center. In 2012 they laid off almost 500 employees.  Company officials will only say they are trying to make the company more efficient. Also, the Fresno County Assessor’s office lays off 14 people, due to lack of funds.  In Mill Valley/Strawberry, the Ethan Allen furniture store closed down.

In North Carolina, recumbent bike retailer, Neighborhood Transportation, closed down.  The owner blamed health reasons.

After 23 years, Bonnie’s Place restaurant closed down in Michigan. The owners blame road/bridge construction for destroying 90% of their business.

In New York, the Wappingers Central School District says they must close down an elementary school.  School officials blame declining enrollment.

In Georgia, the Unity Elementary School in LaGrange could close. School officials say they need to save $4 million!

In Pennsylvania, Caterpillar tractors could close its York Distribution Center in Springettsbury Township.  250 employees would be affected!

Wausau Paper closing their Brainerd, Minnesota, factory. 130 employees affected! Company officials say the toilet paper competition is fierce.

Supermarket Marsh closing stores in Columbus and Marion, Indiana.  Company officials don’t want to renew the leases.

In Virginia, Weiman’s Bakery closed down in Richmond, with little notice.  The bakery supplied many restaurants, and many were left scrambling to find a new source of bread.  Local media said no reason was given for the closing.

Bay Hills Card and Gift Hallmark store closed in Maryland.  The owner opened the store in 1987, he says the bad economy did him in.

In Helena, Montana, Pet Town closed down after 30 years of operations. Local media said regular customers cried as animals in the store were shipped off.  The owner blamed the bad economy: “The last four years were just brutal!”-Dana Coil

H7N9 update: 8 dead, 28 infected! Competition to make a new vaccine threatens co-operation!

09 April 2013 (14:20 UTC-07 Tango)/28 Jumada l-Ula 1434/20 Farvardin 1391/29 Yi-Mao (2nd month) 4711

An 83 years old man in Jiangsu Province died.  Two people in Shanghai and two in Zhejiang province confirmed to have H7N9 infection.  This brings the cases to 28 in the past couple of weeks.

Citing time constraints, Taiwan’s Deputy Health Minister, Lin Tzou-yien, says his country will not co-operate with mainland China in developing a vaccine.  Could this be a capitalist maneuver because of concerns over patent rights?

Here’s how China responded: China’s State Food and Drug Administration is warning medical personnel and local health departments to inspect protective apparel, respirators, anesthesia machines and diagnostic reagents, among other equipment. Chinese officials want to make sure those products have officially-approved labels and manuals.   Also, the Chinese FDA is warning that prosecutions could take place for those who do not follow proper product registration laws in regards to H7N9 research.

The UN World health Organization says that , so far, H7N9 is not showing up in pigs.

 

World War 3, Economic Front: List of U.S. job losses & store closings for 21 February 2013. More health care layoffs! More video game makers make cuts! No more Rold Gold? More cuts to education! California still getting hit!

Texas based Advanced Living Technologies bankrupt. The non-profit nursing facility operator is in big debt.  Also, Dell computers announced undisclosed number of layoffs at their Round Rock, Texas, HQ.  An unnamed employee told local media at least 90 people were let go.

In Vermont, Grace Cottage Hospital to layoff 15 employees. Hospital officials blame the Obama/Romney Care cuts in Medicaid/Medicare payments.

Knott County, Kentucky, says they have to layoff 10 to 12 employees. County officials are blaming the Spotsplex, which is costing taxpayers $400000 USD per year.

In Florida, government contractor Predator Systems being closed down by new owners Curtiss-Wright.  20 people already laid off, another 25 will be let go by the end of the year.

In Louisiana, Libbey Glass laying off 200 people!   The company decided to end production of specific glassware, and move other production to Ohio and Mexico.

Video game maker, EA, announced an undisclosed amount of layoffs, to affect operations in California, Canada and “smaller locations”.

Another video gamer maker, IGN, also announced an undisclosed amount of layoffs.

Denmark based Vestas laid off at least 100 people working at their Colorado factories. The wind turbine maker blamed it on changes to federal tax codes.

BioFuel Energy laying off 40 people at its ethanol plant in Minnesota.  They actually stopped ethanol production at that specific plant in September 2012, but hope to re-start by the end of the year.

Grocery store, Giant Eagle, cut 75 jobs, mainly at their Pennsylvania HQ.  The privately held company is trying to reduce operating costs.  And after 35 years, Sneaky Pete’s closed in Ardmore.  The owner said the signs of the economic times indicated it was time to retire.

General Electric announced they are planning even more layoffs, and the sale of what’s left of their share of NBCUniversal.

In Canton, Ohio, Frito-Lay laid of 12 employees, and cut the hours for 15 other employees, at their Rold Gold Pretzel factory.  Reports say pretzel sales are crashing.

In Michigan, 840 people were told to get ready to look for new jobs! The Journal Register, which publishes newspapers in ten states, is about to be sold off on 17 April (to evil 21st CMH Acquisition). In Plymouth, Isabelle’s Copper Pot shut down.

In New York, Spotlight Newspapers ended two county editions. The publisher blamed increasing small business regulations.  And bus company Canal Escort no longer exists after a strike by employees.  Nearly 100 people out-o-work!  Company officials claim they lost their Department of Education contract because of the strike. One official was rather rude to the former employees: “This union thinks they can tell me what to do? They can go f-ck themselves!”-Joseph Fazzia

Grayslake Elementary District 46, in Illinois, to layoff 17 employees.  Officials say the district is short $2.2 million!

In California, Oroville City Elementary School District laying off six people. Blames declining enrollment and funding. In Westlake Village, Safeguard Properties closing its office and laying off 82 employees. Safeguard is also laying off 168 employees in San Bernardino. The company blames the layoffs on their takeover of some Bank of America operations. In Paso Robles the Wilson’s restaurant closed down. It first opened in 1948, and the owners want to retire.   And the Hollywood Park Casino might be closing in Inglewood (pending a decision by state officials).  600 employees affected!  In Nevada City, the Trolley Junction Restaurant closed down, 20 employees let go.

Indiana’s Cequent Performance Products factory, in Goshen, moving to Mexico. 350 employees affected!

In Oregon, the Jackson County Sheriff’s Department laid off 66 people.  Reports say its because of contract disputes.  And all five Old Farmhouse restaurants closed down. The owner blames himself for trying to expand his operation too fast on too little money.

Wholesale Sports closed stores in Spokane, Washington, and Coeur d’Alene, Idaho.  75 people out-o-work.  Blame it on California based real estate investment company Alamo Group.

In Virginia, Reston shoe store, Footsteps, closed down. The owner blamed it one the high rent.  He said if could find a more affordable location he will go back in business. And the Hoppy Dog gourmet food store in Richmond closed.  The owners said they wanted to pursue other interests.

Mexican-Italian restaurant, Chisme, closed down in Valley Junction, Iowa.  The owner simply said “everything happens for a reason.” And Planned Parenthood said they were closing two Iowa clinics, no reason given.

In Tennessee, the Archiver’s scrapbook store out-o-business. Reports say it was the last scrapbook store in Memphis.

Hilton is closing their Paradise Landing indoor waterpark in Wisconsin.  Hilton officials say they want something more upscale, but haven’t come up with anything so far.

World War 3, East Asian Front: North Korean KIR statement!

The Korean Peninsula has been put in the state of war due to the serious anti-DPRK moves of the U.S. and south Korean authorities and their moves for a nuclear war.

Not content with escalating military tension together with the U.S., the south Korean conservatives, in particular, are running the whole gamut of intrigues to find a pretext for igniting a war against the DPRK after reducing the Kaesong Industrial Zone to a theatre of confrontation.

Defying the repeated warnings of the DPRK, the south Korean confrontation maniacs are letting loose a string of invectives hurting the dignity of the DPRK, talking about “source of money”, “detention” and “hostages”. South Korean Defense Minister Kim Kwan Jin revealed his sinister intention to introduce a special unit of the U.S. forces into the zone, vociferating about an operation for “rescuing hostages”.

This goes to prove that the south Korean warmongers seek to turn the zone into a hotbed of war against the DPRK.

By origin, the zone was built as a symbol of reconciliation, cooperation and reunification after the DPRK granted a privilege to Jong Ju Yong, honorary chairman of Hyundai Group of south Korea, valuing his patriotic will for reunification.

The DPRK’s offer to south Korean enterprises a vast area near the Military Demarcation Line where armed forces of the north and the south are standing in acute confrontation was a bold decision based on ardent love for the nation and compatriotism and a manifestation of the firm will for independent reunification, peace and prosperity based on the spirit of “By our nation itself” clarified in the historic June 15 North-South Joint Declaration.

When traitor Lee Myung Bak did serious harm to the inter-Korean relations in all aspects, getting hell-bent on confrontation after coming to power, the zone remained unaffected by it thanks to the desire and will of all Koreans in the north and the south for reunification and kept its operations for common prosperity.

But the zone is now in the grip of a serious crisis.

The zone, a product of the June 15 joint declaration, has been reduced to a theater of confrontation with fellow countrymen and military provocation, quite contrary to its original nature and mission due to such hideous confrontation maniacs as Kim Kwan Jin. This situation can no longer be tolerated.

The south Korean conservative forces claim that the DPRK will never give up the zone as it benefits from the industrial zone, but it gets few economic benefits from the zone while the south side largely benefits from it.

The DPRK provided an area of military strategic importance to the south side, in particular. This meant a big concession.

It is a tragedy that the industrial zone which should serve purposes of national reconciliation, unity, peace and reunification has been reduced to a theatre of confrontation between compatriots and war against the north. The existence of such zone is no better than nothing.

The DPRK is compelled to make an important decision related to the issue of the industrial zone now that the south Korean authorities abuse the generosity and compatriotism of the DPRK for their hostile purpose.

Upon authorization, I declare the following important steps as regards the crisis in the Kaesong Industrial Zone:

1. The DPRK will withdraw all its employees from the zone.

2. It will temporarily suspend the operations in the zone and examine the issue of whether it will allow its existence or close it as the south Korean authorities and military warmongers seek to turn it into a hotbed of confrontation between compatriots and war against the DPRK, hurting its dignity.

The General Bureau for Central Guidance to the Development of the Special Zone will be responsible for the working matters related to the important steps including the withdrawal of the employees and the temporary suspension of the operations in the zone.

How the situation will develop in the days ahead will entirely depend on the attitude of the south Korean authorities.
Kim Yang Gon, secretary of the Central Committee of the Workers’ Party of Korea

World War 3, Economic Front: Idaho Sears closing down, without official notice? Kmart closing in South Carolina!

08 April 2013 (17:27 UTC-07 Tango 06)/27 Jumada l-Ula 1434/19 Farvardin 1391/28 Yi-Mao (2nd month) 4711

Click pics to make bigger

The Chubbuck, Idaho, Sears used to be located in the old vanished Pocatello Mall.  It was the last store remaining in the Pocatello, Idaho, location before moving into the Pine Ridge Mall, in Chubbuck.  The Pocatello Mall was torn down and replaced with the ‘new’ Fred Meyer plaza (for some reason a lot of people confuse the struggling Westwood Mall with the old Pocatello Mall).

In South Carolina, the second and remaining Kmart in Greenville will close down in May. 74 people will lose their jobs. It was revealed only because South Carolina requires a Worker Adjustment and Retraining Notification (apparently Idaho does not).  The closing of the two Greenville Kmarts will affect at least 140 employees.

The Calumet City Sears, in Illinois, will close by June. 164 employees affected!

Here’s the updated list of Sears/Kmart store closings since the end of 2011:

Arizona: Scottsdale Sears/Great Indoors, Chandler Sears/Great Indoors.

Alabama: Gadsden Kmart (50 jobs lost), Mobile Sears (at least 40 jobs lost), Auburn Kmart (at least 40 jobs lost), Anniston Kmart (no word yet on how many jobs lost).

California:   El Monte Sears (at least 40 jobs lost. Damien Arrula, El Monte’s economic development director, said the store manager had lied about what was going on: “The general manager of the store had just indicated to me that they were remodeling.”), two San Diego Sears (at least 80 jobs lost), Pleasant Hill Kmart (more than 50 jobs lost).

Colorado:  Broomfield Kmart (at least 40 jobs lost), Glenwood Springs Kmart (at least 40 jobs lost), Lone Tree Sears/Great Indoors, Longmont Sears (at least 40 jobs lost), Pueblos’ South Side Kmart (52 jobs lost),  Denver Kmart (number of jobs lost have not been made public at this time, but could be at least 40).

Georgia: Macon Sears (at least 40 jobs lost), Buford Kmart (at least 40 jobs lost), Douglasville Kmart (at least 40 jobs lost), Atlanta Kmart (at least 40 jobs lost), Columbus Kmart (at least 40 jobs lost), Jonesboro Kmart (at least 40 jobs lost), Cartersville Kmart (74 jobs lost).

Guam:  Sears Hometown Store.

Florida: Fernandina Beach Kmart (at least 40 jobs lost), Callaway Kmart (at least 40 jobs lost), Orange City Kmart (at least 40 jobs lost),  Deland Sears (at least 40 jobs lost), Stuart Sears (at least 40 jobs lost), West Palm Beach Sears (at least 40 jobs lost), Port St. Lucie Sears (at least 40 jobs lost), Crystal River Sears (at least 40 jobs lost), New Smyrna Beach Kmart (at least 40 jobs lost), Saint Augustine Kmart (at least 40 jobs lost), Pompano Beach Kmart (at least 40 jobs lost),  Jacksonville Kmart on 5751 Beach Boulevard (71 jobs lost), second Kmart in Jacksonville on 4645 Blanding Boulevard (83 jobs lost), Ocoee Sears (102 jobs lost), Pensacola Kmart on Airport Boulevard closed in 2011, Pensacola Kmart on Mobile Highway closed in February 2013 (69 jobs lost),  Pensacola Kmart on East 9 Mile Road will close in May (73 jobs lost), Hialeah Kmart (67 jobs lost), Bonita Springs Kmart (67 jobs lost), Mount Dora Kmart (100 jobs lost).

Hawaii: Honolulu Sears (owned by GGP, 372 jobs lost!!!).

Idaho: Lewiston Sears (at least 60 jobs lost).  No official announcement, but it’s painfully obvious the Chubbuck Sears going’ down.

Indiana:  Anderson Sears (at least 40 jobs lost), Saint John Kmart (at least 40 jobs lost), Indianapolis Kmart (at least 40 jobs lost).

Illinois:  Alton Sears (at least 40 jobs lost), Melrose Park Sears parts and repair center (50 jobs lost), Zion Kmart (at least 40 jobs lost), Oak Lawn Kmart (at least 40 jobs lost), McHenry Kmart (at least 40 jobs lost), Peru Kmart (at least 40 jobs lost), Lombard Sears/Great Indoors (at least 40 jobs lost), Fairview Heights Kmart (81 jobs lost), Freeport Kmart (45 jobs lost), Pontiac Kmart (more than 47 jobs lost), Homer Glen Kmart (82 jobs lost), Streator Kmart (45 jobs lost), Lombard Kmart (70 jobs lost).  Naperville Kmart (98 jobs lost), Calumet Sears (164 jobs lost). By the way, Illinois elected officials gave Sears Holdings/Hoffman Estates a $150 million USD tax break to keep their headquarters in the state.  The tax break was not tied to any promise not to close stores.

Iowa:  Cedar Rapids Kmart (at least 40 jobs lost), Davenport Kmart (at least 40 jobs lost), Burlington Kmart (50 jobs lost), Coralville Sears (94 jobs lost, this is a store sold to GGP earlier in the year).

Kansas: Lawrence Sears (at least 40 jobs lost).

Kentucky: Middlesboro Sears (in September 2012 the Sears store re-opened under independent ownership, official grand re-opening scheduled for November), Winchester Kmart (back in May, Rankin Paynter bought out what was left of the inventory and gave it to charity), Hazard Kmart (at least 40 jobs lost).

Maine: Lewiston Sears (60 to 70 jobs lost).

Maryland: Ellicott Sears (at least 40 jobs lost), Gaithersburg Sears/Great Indoors.

Michigan: Novi Sears/Great Indoors, Brighton Sears Grand/Essentials,  Harper Woods Sears Full line, Monroe Sears Full line, Adrian Sears Full line, Washington Township Kmart, Chesterfield Kmart, Woodhaven Kmart, Flint Kmart (46 jobs lost), Gaylord Kmart (48 jobs lost).

Minnesota: Willmar Kmart, Duluth Kmart, New Hope Kmart, White Bear Lake Kmart, Bemidji Kmart.

Mississippi: Jackson Sears Full line, McComb Sears Full line, Columbus Sears Full line.

Missouri: Lee’s Summit Sears Grand/Essentials, Saint Louis Sears Full line.

Montana: Missoula Kmart (50 jobs lost).

New Hampshire: Nashau Sears Grand/Essentials, Keene Sears Grand/Essentials.

North Carolina: High Point Sears, Moorehead Sears, Rocky Mount Sears, Statesville Sears, Durham Kmart (79 jobs lost), Asheville Kmart (53 jobs lost),  West Smithfield Kmart (59 jobs lost), Winston-Salem Kmart (69 jobs lost), Hendersonville Kmart (58 jobs lost).

New Jersey:  Lawnside Kmart (about 80 jobs lost).

New Mexico: Las Cruces Kmart (58 jobs lost).

New York: Depew Kmart (68 jobs lost).

Ohio: Chagrin Falls Kmart, Springfield Kmart, two Toledo Kmarts, Medina Kmart, Columbus Kmart, Columbus Sears/Great Indoors, Zanesville Sears (67 jobs lost), Trotwood Kmart (71 jobs lost).   Also, Van Wert Sears franchise bought out by Kirk Berryman, owner of Computer & Networking Technologies (CNT), who plans on moving the store to a new location.

Oklahoma: Oklahoma City Sears (98 jobs lost, GGP owned, GGP wants a $2 million sales tax rebate, claiming it’s needed to offset capital investments needed to bring the space up to the standards for potential new tenants).

Oregon: Roseburg Sears (at least 40 jobs lost), Tualatin Kmart Center (new property owner from California is tearing everything down for new shopping center, so far no indication the Kmart will be part of the new shopping center), Milwaukie Kmart (61 jobs lost).

Pennsylvania: Upper Darby Sears Full line, Pottstown Sears Full line, Pittsburgh Kmart, Wilkins Sears, Warminster Kmart (85 jobs lost), Shippensburg Kmart (46 jobs lost).

South Carolina: Sumter Sears (at least 40 jobs lost), Orangeburg Sears (57 jobs lost), Columbia Kmart on Fort Jackson Boulevard in 2012, Columbia Kmart on Bush River Road in 2009, Columbia Kmart on St Andrews Road (66 jobs lost), Irmo Kmart (no info on how many jobs lost),  both Greenville Kmarts (140 jobs lost between the two).

Tennessee: Antioch Sears (at least 40 jobs lost), Cleveland Sears (at least 40 jobs lost), Oak Ridge Sears (at least 40 jobs lost), Hendersonville Kmart (at least 40 jobs lost), Morristown Sears (about 70 jobs lost), Clinton South Kmart.

Texas: Two Sears parts and repair centers closing in The Woodlands (117 jobs lost), rebuild center in Garland (58 jobs lost), Farmers Branch Sears/Great Indoors, Houston Sears Great/Indoors.

Virginia: Norfolk Sears (at least 40 jobs lost),  Midlothian Kmart (at least 40 jobs lost), Richmond Kmart (at least 40 jobs lost), Lynchburg Sears (84 jobs lost), Fairfax Kmart (no word on how many jobs lost).

Washington: Walla Walla Sears Full line (in August 2012, it was reported that an independent owner of Sears Hometown stores will open a store in Walla Walla), Lacey Kmart (at least 40 jobs lost), Kelso Sears (47 jobs lost), Lakewood Kmart (59 jobs lost), Bellingham Sears (92 jobs lost),  Seattle Kmart (85 jobs lost).

West Virginia: Oak Hill Kmart (59 jobs lost).

Wisconsin: West Baraboo Sears (at least 40 jobs lost, local village officials say the store generated 3% of local tax collections), Rice Lake Kmart (about 71 jobs lost).

On top of that, Sears Holdings sold stores to General Growth Properties (GGP), of which it has been reported that most of those stores will be closed.

Here’s the list of 11 Sears stores now owned by GGP:

Iowa: Coral Ridge Mall (it’s official the Sears is closing, see above), and Mall of the Bluffs

Texas: The Woodlands Mall (this does not involve the two repair centers being closed by Sears)

Florida: West Oaks Mall

Utah: Fashion Place, and Provo Towne Centre (note the evil British empire way of spelling town & center. Due to a favorable lease agreement the GGP owned Provo Sears will continue to stay open under Sears Holdings management)

Oklahoma: Quail Springs Mall (it’s official, the Sears will be closed, see above)

Hawaii: Ala Moana Center (will be closed, see above)

Washington: Bellis Fair Mall (Bellingham store, see above)

Minnesota: Apache Mall

Illinois: Market Place Shopping Center

World War 3, Economic Front: Walmart & Sears end portrait studios!

08 April 2013 (15:01 UTC-07 Tango 06)/27 Jumada l-Ula 1434/19 Farvardin 1391/28 Yi-Mao (2nd month) 4711

In what is old news to me, the main streamer U.S. media has finally realized that portrait studios in Walmart and Sears have disappeared.

The portrait studio at the Chubbuck, Idaho, Walmart quietly shut down months ago, no mention in the local media.

According to a report out of Florida, the company that operated those studios, Canadian based CPI, is out-o-business.  The report says CPI was done in by the digital camera age, because more people are doing their own family portraits using digital cameras and their computers.

World War 3, East Asian Front: DPRK officially withdraws communist workers from KIR!

08 April 2013 (13:55 UTC-07 Tango 06)/27 Jumada l-Ula 1434/19 Farvardin 1391/28 Yi-Mao (2nd month) 4711

After nine years of operation Democratic People’s Republic of Korea is officially pulling out 53000 communist workers from the Kaesŏng Industrial Region (KIR).

Because the cheap North Korean workers are the overwhelming majority of workers at the KIR, the move effectively shuts down operations for capitalist South Korean companies.

Republic of Korean officials are holding North Korea responsible for effectively destroying South Korean companies, and said they “…will look into areas as compensations for businesses affected.”

H7N9 update: Economic toll being felt!

08 April 2013 (13:43 UTC-07 Tango 06)/27 Jumada l-Ula 1434/19 Farvardin 1391/28 Yi-Mao (2nd month) 4711

The H7N9 outbreak in China is affecting several industries.

The Nanshan Wholesale Poultry commodity market reports a 30% decline in trading.

Restaurants in China, including KFC and McDonald’s, report huge drops in orders for chicken products.

Reports that sales of other meats are dropping as well.

The Public Health Agency of the Federal Government of Canada is warning people about traveling to China.  The airline industry is bracing for a drop in passengers flying to China. Already the price of stocks of airline companies are dropping.

World War 3, Economic Front: United Kingdom rations baby formula, trying to stop sales to China?

08 April 2013 (13:29 UTC-07 Tango 06)/27 Jumada l-Ula 1434/19 Farvardin 1391/28 Yi-Mao (2nd month) 4711

“We would like to apologize to parents for any inconvenience caused by this limit. We know that most parents only buy one pack at a time, so we hope that the impact of this limit on U.K. parents will be minimal.”-Danone statement

Apparently people in the economic strapped United Kingdom have been buying bulk quantities of baby formulas and reselling them to families in China.

Chinese baby formula makers are still having problems with contaminated products, so foreign made formulas are in big demand. However, officials in U.K. apparently don’t want individual Brits making much needed money off selling baby formula to Chinese.

But it’s not just United Kingdom, Australia has already banned such behavior as well.  Officials say they’re concerned with violations of trade agreements.

But one formula maker, Danone, revealed the real reason for the retail store rations in the British empire: They are trying to boost their own sales in China and they don’t want the competition!

But another formula maker, Nestle, is challenging the claims of formula shortages by Danone and U.K. officials: “We do not have any evidence of bulk purchase of SMA for export, and we are in the process of contacting all our retail customers to confirm this, and to notify them that we do not have – and do not anticipate – any stock issues for powdered infant milks. We would like to reassure our consumers that we are not seeking to impose any limits on the sale of our formula, and any decision to do so is at the sole discretion of the retailer. Contrary to reports, Nestle UK has never requested that retailers limit the supply of SMA powdered infant milks sold to consumers.”