Category Archives: Business/Economics

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s Coldwater Creek loses money again! Executives oblivious? Stocks worth less than $1.00

Idaho’s Coldwater Creek women’s clothing retailer just posted their 1st quarter 2012 results.

For the 1st quarter, which ended April 28, the struggling apparel company reported a loss of $23.8 million USD.  But that was less than company execs thought they were going to lose!

Chairman and Chief Executive, Dennis Pence, actually takes the news as a good sign: “Customers responded favorably to our spring and early summer collections, which offered an increased emphasis on color, print, and pattern.”

The problem with that train of thought is that Coldwater Creek lost money for the same reason as always, their sales are down!  Pence calls that “responding favorably”?

The news caused Coldwater Creek stock prices to drop to 84 cents per share before the closing bell on 30 May.  But, it’s dropped to 74 cents in after hours trading!

 

Business/Economics, International, Technology, U.S.

Oil & Gas Prices: Disparity in fuel prices; Eastern U.S. vs Western U.S. It’s all about supply vs demand! Western U.S. fuel supply lowest since 1999! Expect U.S. fuel prices to drop in long run!

I was upset by a Memorial Day report on one of the mainstream U.S. national TV news programs, ’cause they reported gas prices down across the country!  Wait a minute, I live in the United States and gas prices actually went up where I live!

I noted that the mainstream media report focused only on the eastern half of the United States. I checked the internet for reports concerning the western half, and sure enough fuel prices have been going up here!

In the Pacific Northwest U.S. state of Idaho gas prices average $3.64 USD, according to the American Automobile Association (AAA).  But here in eastern Idaho it’s more like $3.77 per gallon.  In Mackay (pronounced Mac-Key), Idaho, it’s $3.90.

In the U.S. state of California prices are more than $4.00 per gallon. Gas prices have not come down in the past few weeks, even though oil prices have!

What’s going on? Why have fuel prices come down in the eastern half of the U.S. and, in some cases, actually gone up in the western half?

For one, the eastern half has a glut of oil, from the fields in the U.S. state of North Dakota, and from the northern country of Canada.  However, in recent months there was a lot of predictions that fuel prices would actually go up for the eastern half of the U.S., because several major refineries were being permanently shut down.

Two of those refineries are located in the U.S. state of Pennsylvania.  Fears of skyrocketing fuel prices turned to joy when it was revealed, towards the end of April, that Delta Airlines and Energy Transfer Partners will buy those refineries, and keep them up and running!

Also at the end of April, it was revealed that a new refinery, also in Pennsylvania, was up and running on the Delaware River!  It’s primary source of oil is shale oil from North Dakota and Texas.  This is important because it turns out that many of the older refineries can not handle refining shale oil.

Another important fact is that finally new oil pipelines are opening up, helping to get that bottlenecked glut of oil in North Dakota, and from Canada, down to refineries along the Gulf of Mexico, and to ports in Portland, Maine.

Finally, there was a recent report that a new diesel fuel refinery will be built near Williston, North Dakota!

So what’s happening in the western half of the U.S.?

On 22 May it was reported that U.S. oil supplies were at a 21 year high. However, when you look at refined gasoline and break it down between eastern and western U.S. you get a different picture, because you’ll see that having a lot of oil does not translate into having a lot of gasoline.

The very next day, 23 May, the U.S. Department of Energy (DOE) released a report which stated: “PADD 5 gasoline inventories at 24.1 million barrels on May 18, about 5.1 million barrels (17 percent) below typical levels for that date, the lowest for the region since March 1999.”

The DOE explained: “Abnormally low refinery runs on the West Coast since February tightened local gasoline markets, causing both wholesale and retail gasoline prices to rise.”

The DOE blamed reduced fuel supply to the western U.S. on that fact that several refineries were shut down for maintenance.  One of those refineries, British Petroleum’s Cherry Point, in the U.S. state of Washington, should be re-starting.

The DOE also explained that the western half of the U.S. sees higher fuel prices because of a lack of pipelines: “While unplanned refinery outages generally cause retail product prices to rise, the West Coast market is especially sensitive to such shutdowns. That is because the West Coast market is relatively isolated. Given the West Coast’s lack of significant pipeline connections to other markets and relative distance from the active physical trading markets….”

According to the DOE, it takes six weeks for any change in the price per barrel of oil plus any shortage or surplus of refined fuel, to be reflected in western U.S. fuel prices at the pump, but, if there are no further interruptions in western refinery operations prices should start coming down.

Business/Economics, Idaho, International, Technology, U.S.

What Economic Recovery? Problems, and hopes, for east Idaho’s Eagle Rock owner; Areva

Back in March, Areva announced a $3.2 billion USD loss, which is what it would cost to build the planned Eagle Rock Enrichment Facility near Idaho Falls, Idaho.

Now Areva, based in France, is struggling to raise cash just to survive.  But there is also some hopeful news for Areva.

29 May 2012, Areva announced “outstanding” performance results from their Steam Generator Repair Services crew.  They just finished work on the Indiana Michigan Power Donald C. Cook nuke plant:  “Constant monitoring and good peer checking by our team were the key factors that contributed to zero safety incidents and very low dose [radiation exposure].”-Mike Jefferson, Field Operations Manager

 

 

29 May 2012, Finnish media reporting that Areva is five years behind scheduled, for completion of Finland’s third generation nuclear power plant.  Areva officials blame it on the fact that no nuclear plant has been built in Europe for 20 years, resulting in troubles finding reliable supply chains for proper construction materials.

28 May 2012, The Canadian Environmental Assessment Agency started taking final public comments on the possibility of Areva operating a uranium mine located 700 kilometres north of Prince Albert, Saskatchewan.

15 May 2012, Areva announced that it will partner with Japan’s Mitsubishi to search for uranium in Australia.

2 May 2012, Areva announced it was selling its nuclear radiation measurement unit in Australia, to raise needed cash.  CEO, Luc Oursel, says the company needs to raise at least 1.2 billion euros by the end of 2013, to make up for huge loses!  He plans on doing that by selling off Areva assets.

At the end of April 2012, the country of Jordan announced that Areva and Mitsubishi were being considered to build the country’s first nuclear reactor.

 

 

 

Business/Economics, International

Government Coverup: Japan’s nuclear policy commission suspended, too many pro-nuke lovers and secret meetings!

29 May 2012, The Japan Atomic Energy Commission (JAEC) suspended a commission which was reviewing the Japanese government’s official nuclear policy.

A number of members of the commission discovered that the policy review was being unfairly influenced by other members who were actually employed by the nuclear power industry.

On top of that, it was discovered that since May 2011 those members who are pro-nuke, or actually employed by the nuke industry, were holding secret closed door meetings with government leaders!

Demands were made that a independent third party investigate the closed door meetings. Instead the JAEC simply suspended the policy review commission, with a promise that they would create a new review commission that did not have pro-nuke industry panelists.

Business/Economics, International, U.S.

Global Economic War: New study shows lack of business had a lot to do with the collapse of the Mayan Empire. Similar to the collapse of the Caliphate. “It’s the Economy stupid.”

A new study published in the journal Antiquity, reveals a new factor in the collapse of the Mayan Empire.  You can now add ‘bad economy’ to social unrest, disease, warfare, drought and deforestation.

The bad economy was due to a shift away from inland centers of business, to coastal centers.  Researchers at the University of Illinois say the main product the Mayan’s traded was obsidian.  It was used for making tools, as the Mesoamericans had not yet learned how to make metals strong enough for tools.

Researchers say Mayan maps show that the obsidian, and other products, were increasingly sent to coastal areas for trade.  They are not sure why, but speculate that military/political/social/environmental problems inland could be factors. Also, methods to ship over water probably improved.

I think they are correct, because if you study the demise of the Islamic Caliphate you realize that it was a combination of internal political disputes and, mainly, the ability of the Europeans to sail directly to Asia, thus avoiding the traditional Silk Road.

The invasion of North Africa by Napoleon, and finally the demise of the Ottoman Empire, were only the end result of a long period of decline for the Muslim Empire.

From the beginning of the Caliphate there were always internal problems arising out of differences of opinions as to how the Empire should be run, but that’s typical with all societies. The true cause of their collapse is economic. The Muslim Empire controlled most of the famous Silk Road trade routes, and the Christian Crusades were attempts by Europeans to regain a piece of that pie (of which they had since the time of Alexander the Great, forget the rhetoric about religion and god).

It actually began in earnest when the Portuguese, followed by the British and Dutch, were able to finally sail around Africa to the point where the Silk Road actually began, in a sense cutting out the middle men who controlled the trade routes through the Muslim Empire.

What’s been going on since the discovery of oil in the Middle East, is an attempt by Western societies to maintain control of the region, and prevent the locals (who have radically different ideas about politics/religion/economics) from regaining a position of economic power.

So, as usual, most wars are economic, that is, an attempt to monopolize international trade. As one infamous U.S. President said, before he became president: “It’s the economy, stupid!”-Campaign slogan created for Bill Clinton, by James Carville, criticizing then U.S. President George H.W. Bush

 

Business/Economics, U.S.

What Economic Recovery? Despite defending Obama’s NATO meeting, Chicago can’t pay its cops!

“First, the City took the unusual position that Officers could not request to be credited with compensatory time for any overtime that they worked during the NATO Summit knowing that this was a clear violation of our contract. Now, after our Mayor, Superintendent, and the citizens of Chicago have heaped praise upon Chicago Police Officers for their excellent work at the NATO Summit, the City has taken the position that Officers are not entitled to compensation for working a sixth or seventh consecutive day during a single calendar week.”-Fraternal Order of Police (FOP) Chicago Lodge 7

“NATO is not an excuse for the city of Chicago to circumvent the contract. It clearly states that officers working overtime are to be paid in either time or money…..This is just another example of the city not honoring the contract.”-Mike Shields, FOP president

Some Chicago cops are starting to realize that those elites they defend are about to screw them over, welcome to the club!

Business/Economics, U.S.

What Economic Recovery? 45,000 U.S. Postal workers to be forced out

25 May 2012, the U.S. Postal Service is offering buyouts to 45,000 part time mail handlers.

It’s part of the USPS’s plans to layoff 150,000 employees by 2015.  Postal officials had no comment about how they were going to do that.

You can blame the U.S. Congress for forcing the Postal Service to over pay into government retirement and health plans, even though the USPS does not get any tax dollars!!!

The money for the U.S. Postal Service comes directly from sales of postage and mail services!

Business/Economics, International, U.S.

Global Food Crisis: Japan now dependent upon other countries for fish, as much as a 74% increase!

25 May 2012, Japan’s Fishery Ministry reports a huge decrease in fish catches.  Blame the 11 March 2011 disasters.

The reports says the fishing industry in the northeast of Japan was hit hard by the disasters, and has not been able to recover enough to supply Japan with enough fish.  Supplies of local fish to Japanese markets is at about 78% of what it was before the disasters.

About 70% of the fishing boats damaged or destroyed have been repaired or replaced.

And don’t forget the fish that are radioactive.

As a result Japan has increased imports of Pacific saury (aka mackerel pike) by as much as 74%.  Oyster imports are up 20%.

 

 

Business/Economics, International, U.S.

Government Incompetence: U.S. Courts allow Japanese banks to do buisiness with Iran

On 17 May 2012, the Bank of Tokyo-Mitsubishi UFJ filed a suit against the U.S. government’s sanctions on Iran.

25 May 2012, the Bank of Tokyo-Mitsubishi UFJ said they’ve officially restarted transactions with Iran, after a U.S. court decided in their favor.

The whole thing was because of a U.S. federal judge deciding that Iran was responsible for the 1983 bombing of the USMC barracks in Beirut, after the U.S. invaded Lebanon.  Their is little evidence to back up such a claim. And by the way, shouldn’t the invader (the United States) by held responsible?

Attorney’s for Bank of Tokyo-Mitsubishi UFJ argued that the U.S. court ruling is not valid under Japanese law.

It’s estimated that the Bank of Tokyo-Mitsubishi UFJ handles 70-80% of Japan’s transactions with Iran.

Business/Economics, International, U.S.

Global Economic War: Japan & China drop the U.S. dollar, will use their own money for international transactions! Britain wants in on the deal!

26 May 2012, Japan and China could begin using their own money for international transactions as early as June.

The two countries have been working on a plan to conduct business with each other using the yen and the yuan, and avoiding international banks requiring the U.S. dollar.

Japan’s Kyodo News said Japan and China need to use their own money in order to reduce risks associated with exchange rate fluctuations in the U.S. dollar.

Japan’s NHK is also reporting that United Kingdom and Singapore want similar deals with China. This is an acceleration of the Chinese yuan as the new international currency, replacing the U.S. dollar!