Category Archives: Business/Economics

Business/Economics, International, U.S.

Global Economic War: Japan & India sign deal to use U.S. dollars only!

05 December 2012, Japan and India have signed a currency exchange deal that could prop up the U.S. dollar.

Banking officials from the two Asian countries have been working on the plan for about a year.  It involves the central banks of Japan and India exchanging up to $15 billion USD per year for the next three years.

They say the exchanges done in U.S. dollars will stabilize their own currencies.  It could prop up the value of the U.S. dollar, which would hurt U.S. factories (who’re still operating in the U.S.) who want to export their products. Japan has been blaming the rising value of their yen on the falling value of the U.S. dollar.

India is blaming the value of the European Union’s euro, for the rupee’s problems.

When a country’s money becomes more valuable it actually hurts their exports because it makes their products more expensive to foreign buyers. The only way for any country to achieve high economic growth is to have strong exports, a strong domestic economy can only achieve stagnation at best (relative to the size of the country).

Business/Economics, International

Trilateral Commission’s dream of one centralized European Bank dashed, for now

05 December 2012, European Union finance ministers shelved any plans to create a single centralized bank for the EU.

Last month things looked good for a central bank of Europe when 6,000 banks were put under EU “supervision”.  It was hoped an official EU central bank would be in place for 2013.

Some of the reasons for the collapse of such plans was that most EU member countries could not agree on the limits of power for a EU central bank. Also, France wanted immediate implementation while Germany wanted a gradual phase in.

EU finance ministers will resume central bank creation discussions next week.

Business/Economics, U.S.

What Economic Recovery? Almost 2,000 more job losses for the state of Illinois!

04 December 2012, eleven companies operating in Illinois will lay off at least 1,934 people in the next few months.

U.S. Cellular Corp cutting 492 jobs in Bolingbrook.  (last month the company said as many as 640 jobs would be eliminated in the Chicago area)

Willow Lake Mine in Equality is cutting 408 employees.  The mine wants to shut down permanently.

Fresh Express closing two operations in Franklin Park, some employees will be transferred to other operations.

World Kitchen laying off 180 employees in Monee, wants to cease operations there by end of 1st quarter 2013.

Jacobson Staffing Company cutting 145 jobs in Manteno and 84 in Romeoville.

PCCW Teleservices (a Hong Kong based company) laying off 139 workers in Quincy.

Bay Valley Foods laying off 113 workers in Mendota.

Restaurant, Buca di Beppo, letting go 70 workers.

Kmart cutting 70 jobs in Lombard.

R.S. Owens ending 95 jobs in Chicago.

Carson Pirie Scott laying off 76 workers in Calumet City.

Doblin Inc will cut 62 jobs in Chicago.

Source: Illinois Worker Adjustment and Retraining Notification Act (WARN) report.

 

Business/Economics, U.S.

What Economic Recovery? Illinois hit by another Sears/Kmart closing

04 December 2012, the latest Illinois Worker Adjustment and Retraining Notification Act (WARN) report shows another Kmart is being closed in Illinois.

Here’s the latest list:

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).

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).

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 Sears to be closed by 03 February 2013 (69 jobs lost), Hialeah Kmart (67 jobs lost).

Idaho: Lewiston Sears (at least 60 jobs lost).

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), recently revealed Lombard Kmart (70 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, and recently revealed Flint Kmart (46 jobs lost).

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

New Jersey:  Lawnside Kmart (about 80 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).

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).

Pennsylvania: Upper Darby Sears Full line, Pottstown Sears Full line, Pittsburgh Kmart, Wilkins Sears.

South Carolina: Sumter Sears (at least 40 jobs lost), Orangeburg Sears (approximately 50 jobs lost).

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).

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).

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).

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

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

Minnesota: Apache Mall

Illinois: Market Place Shopping Center

Business/Economics, International, U.S.

World War 3: India deploys navy to counter China in South China Sea, Vietnam accuses China of violating its territory & attacking its ships!

“Now, are we preparing for it? Are we having exercises of that nature? The short answer is yes.”-Admiral D.K Joshi, Indian navy

04 December 2012, India announces it is sending a naval fleet to the South China Sea, to counter the growing presence of the Chinese navy, and possible for war.

Vietnam is also ramping up anti-Chinese sentiments: “The blatant violation of Vietnamese waters by Chinese fishing vessels not only violates the sovereignty…of Vietnam but also interferes in the normal operations of Vietnamese fishermen and affects the maritime activities of Petrovietnam.”-Pham Viet Dung, Petrovietnam

Petrovietnam officials say Chinese ships recently cut cables being towed behind  company research ships.

The South China Sea has become an international hot zone because of huge oil and gas reserves.  Many countries claim the area, including Vietnam, Japan, Korea, Philippines, China and others.

Taiwan, a U.S. ally, has recently taken up sides with mainland communist China over disputes with Japan.

Officials with the Obama administration recently told Japan that they would honor their Cold War agreements which basically say the U.S. supports Japanese territorial claims.

Indian officials said their naval deployment was not just about oil: “It is one of the most important international waterways and freedom of navigation there is an issue of utmost concern to India because a large portion of India’s trade is through the South China Sea.”-Brahma Chellaney, Centre for Policy Research

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s Coldwater Creek still losing money. New CEO? More stores to be closed, bankruptcy near

On 28 November 2012, women’s clothing retailer Coldwater Creek reported a loss of $20.5 million USD.  Investors were actually happy, because that was an improvement over the same quarter last year.

Coldwater Creek explained that their losses weren’t as bad as expected because sales actually went up, by 7.3% for same store sales.

Dennis C. Pence is stepping down as Chief Executive Officer, to be replaced by Jill Brown Dean (current Chief Merchandising Officer) on 01 January 2013.  Pence will stay on as Chairman, so actually no new blood is being added to the executive branch, so don’t expect any real changes.

A year ago Coldwater Creek had 366 stores, now it has 354.  They plan to close more stores throughout 2013.

According to GMI Ratings, Coldwater Creek is showing all the signs of going into bankruptcy within the next 12 months.

 

 

 

Business/Economics, U.S.

Corporate Evil: More evidence the demise of Sears & Kmart is all part of Romney/Bain style vulture capitalist scheme to intentionaly run the business into the ground!

“You make Sears sound like a liquidation play, not a retail recovery.”-from Fortune magazine

“The retail recovery is a potential upside. Regardless, you’ll see gigantic cash flows from the closing of locations, the pulling-out of the cash from inventory, work in process, and distribution centers. They’re not idiots when it comes to real estate. They understand that today’s standalone store can be tomorrow’s multi-use hotel/residential-retail center. I think Eddie Lampert [chairman of Sears Holdings] will end up being one of a few unbelievable case studies on what it means to be a long-term investor.”-answer from Bruce Berkowitz, a major stockholder in Sears Holdings

Fortune published a recent interview with Bruce Berkowitz, in which he basically said Sears and Kmart could make more profits for investors by being closed down and selling off their inventories and real estate.  I warned of this last year.

An InvestorPlace contributor, Will Ashworth, explained how the Romneyesque scheme is actually working.

For real estate, Ashworth says Berkowitz values the land property owned or leased by Sears Holdings to be about $17 billion USD.  Then there’s inventory.  Berkowitz estimates that a net profit of $2.5 billion could be made by selling off inventory. Ashworth himself is more conservative, thinking it be about a $1 billion net gain for investors.

Of course you can only sell off land and inventory by closing down the stores: “Many see Lampert using Sears as the next Berkshire Hathaway (NYSE:BRK.B), taking the proceeds of assets sales and reinvesting them elsewhere until Sears, the retailer, ceases to exist. It might take awhile, but Berkowitz is willing to patiently wait because deep down he knows Sears is worth far more dead than alive.“-Will Ashworth, InvestorPlace

 

Business/Economics, International, U.S.

Global Economic War: Japanese car production crashing in China! Japanese exports to China crashing!

29 November 2012, anti-Japanese sentiment in China is having a drastic effect on Japanese car production in the (supposedly) communist country.

Overall, the six Japanese car companies operating in China saw a 48.9% drop in production in October (compared to October 2011).  It’s even more drastic when you look at production for each company.

Mazda down 27.6%

Suzuki  down  32.6%

Nissan down 44%

Honda down 54.2%

Toyota down 61.1%

Mitsubishi down 84.6%

Even cars made in Japan for the Chinese market are not going anywhere fast:

Nissan exports to China down 75.9%

Toyota exports to China down 91.3%

Mazda exported zero cars to China in October!

There might be some good news for the United States.  Japanese car company officials say they will now shift focus of production of many vehicles to South East Asian countries, and the U.S.

Business/Economics, U.S.

Sears & Kmart news: Fail to pay off loans received in 2010! Kmart reneges on new layaway policy? Sears looking for independent store operators

29 November 2012, a retail real estate watchdog, CoStar Group, revealed that Sears, Kmart and even JCPenny have fallen behind in payments on loans they got back in 2010.

CoStar says about 24% of Commercial Mortgaged Backed Security (CMBS) loan payments are 30 to 90 days late, and that “…two of the largest three tenants were either a Sears, Kmart or JCPenney [mall] anchor.” 

There are other retail mall based businesses behind on their loan payments as well, click here to see the list.

In a report on The Consumerist, a frustrated Kmart shopper revealed that Kmart might be lying about their new no fees layaway policy: “…Kmart was not honoring the prices I agreed to pay or the no layaway service charge that is advertised on their website.”

She says she was told it was a software glitch, but when she tried to cancel the whole thing they wanted to charge a $10.00 per item cancellation fee!  She claims she even got a Kmart executive on the phone, but he hung up on her.

The Argus Press just posted a notice that Sears Holdings is looking for an independent owner to operate a Sears Hometown Store in Owosso, Michigan.

Business/Economics, Opinion, U.S.

Corporate Evil: After blaming Unions for their shut down, Hostess now wants to pay out big bonuses to their execs! Shut down really part of Romney style crony vulture capitalist plan!

29 November 2012, gee after saying they didn’t have the money, and blaming unionized labor for the shut down of Hostess, suddenly they’ve got the bucks to pay bonuses to their incompetent executives!

Hostess officials are asking a bankruptcy judge to approve the paying out of $1.8 million USD in bonuses to their 19 executives.  Company officials say it’s necessary to keep the execs on board until they finish selling off their brands.

It’s starting to look like the running into the ground and eventual shut down of Hostess is really a Romneyesque vulture capitalist plan to chop up and sell the company off.  Hostess officials say there are more than 100 potential buyers chomping at the bit.

Hostess product sales were down, but last week a company official told the bankruptcy judge they still had $2.3 billion in sales last year!

So 18,500 people lost their jobs, and Hostess wants to pay $1.8 million in bonuses to 19 executives, that’s about $94,736 each (if my math is correct).  And those execs are still being paid big salaries as well; for example, CEO Gregory Rayburn has a monthly salary of $125,000!

I don’t think the Hostess shut down is about not having enough money.