Category Archives: Business/Economics

Business/Economics, International

What Economic Recovery? Spanish teachers and students protesting in the thousands

“Since the democratic transition in Spain, we have not seen such a hard attack on social services and essential public services. This is an attack by Madrid’s regional government against employment and public education.”-Cayo Lara

Spain’s attempts to pay down its debt has seen huge cuts to education spending, at least 13,000 temporary teachers will lose their jobs.

The public school system in Spain has never had a good track record: One of Europe’s highest dropout rates with nearly 30% of students under the age of 16.

More education strikes are planned for September 20 & 21.

Business/Economics, International

What Economic Recovery? Italians fighting with police, going down the debt tubes with Greece

September 15, scores of protesters hurled smoke bombs and other objects, even a cow’s lung, at the police.

The riots took place outside the Italian Parliament.  Italian politicians are trying to come up with a new debt reduction plan.  The plan will be similar to the Greek plan, meaning Italian taxpayers, and the unemployed are going to suffer.

The Italian government is trillions in debt. The latest debt reduction plan hopes to have the debt paid off by 2013.  It can only be done with drastic tax increases and cuts to taxpayer funded government services (which will mean more people getting laid off).

Business/Economics, International

No Economic Recovery with Government Incompetence: Greek tax collectors join anti-government protests

“The participation rate in the strike is over 90%. The workers are striking to protest the looting of their income.”-Yiannis Grivas, head of the tax collectors’ union

You know things are bad when the government’s own tax collectors join the protestors.  Not just tax collectors, but Customs officers joined the latest protests of the Greek government’s debt repayment plan.

The plan places the burden on the taxpayers of Greece, many are unemployed.  The government’s plan will add to the unemployment by cutting government jobs, and cutting government pay: “We are talking about cuts to our income of 60% over the past one and a half years, 30% last year and 30% this year with the new wage structure. Of course we are obliged to protest.”-Yiannis Grivas, head of the tax collectors’ union

If you think about it, the Greek plan isn’t about building a good economy, but totally about paying down government debt by raising taxes on those few who still have jobs, and cutting services for everyone!

“The biggest single concern is that we may face a outright tax revolt. Those who have been paying taxes are now being asked to pay again, and there is a fear they won’t be able to pay any more.”-Unnamed Greek official

Business/Economics, U.S.

Corporate Incompetence: Eldery woman loses home after selling everything to pay it off, a 101 year old woman gets foreclosed on, despite getting a reverse mortgage

“I had one year left on my mortgage, and it would have been paid off, I wanted to live here for as long as possible.”-Linda Hatchel

Linda Hatchel spent decades, and tens of thousands of dollars renovating her Chicago home.

What makes it all the more terrible is that more than twenty years ago she paid about one dollar for the home.  It was a demolition sale.  She took out loans to renovate the house, but her cancer treatment, and the loss of her job left her unable to make the final payment (she had one payment left), now she’s about to become homeless.

In Texas, 101 year old Texana Hollis was evicted from her home this week. In 2003, her son asked her to sign it over to a reverse mortgage company for $32,000 to help with home repairs.  Despite claims that reverse mortgages can keep you in your home, the bank kicked her to the curb.

 

 

Business/Economics, International, U.S.

Not everyone in China is doing well economically, restaurants forced to use ‘gutter’ oil for cooking, blame inflation

At least 32 people are on trial in China, for collecting used cooking oil from street gutters, then selling it back to restaurants.

A company that was supposed to be creating biodiesel from used oil, instead found it cheaper to simply strain the used cooking oil and sell it back to restaurants.

Also, according to local police, the company was using a “white substance” to remove the nasty smell from the used cooking oil.  Some local media speculate that it causes cancer.

China’s fast booming economy is causing rapid inflation, many individuals, and mom & pop businesses can’t keep up.  Buying recycled cooking oil is a cheap alternative.  One report said the price of new cooking oil in China is about 10,000 yuan, or $1,560 a ton, while ‘gutter’ oil sells for around 8,000 yuan to 9,000 yuan.

This is not the first scandal relating to food safety in China.  Scandals have included melamine tainted infant formula, and pork tainted with the chemical clenbuterol.   Melamine gives false increased protein levels in dairy products.  Clenbuterol helps make meat leaner.  The Chinese government says both can be harmful to humans.

Here in the United States the FDA has approved the use of clenbuterol in animals, but not in humans.  However, the FDA is out on melamine.  Their latest studies showed that melamine was dangerous only when combined with other chemicals.  One study showed cats had kidney failure after eating 32 parts per million of cyanuric acid and 32 parts per million of melamine.

 

Business/Economics, International, U.S.

What Economic Recovery? China says you created the economic problem, you fix it!

“Countries must first put their own houses in order. Developed countries must draw up responsible fiscal and monetary policies.”-Wen Jiabao, Prime Minister of China

Despite China becoming the biggest foreign investor in the United States, they say future investments depends on how the U.S. handles economic recovery.  The same goes for Europe: “European countries are facing sovereign debt problems and we’ve expressed our willingness to give a helping hand many times. We will continue to expand our investment there…Europe and the U.S. must adopt responsible and effective fiscal and monetary policies in a bid to reduce debt pressures.”-Wen Jiabao, Prime Minister of China

Analysts from Citigroup agreed: “What he is basically saying is China wants to help, they want to invest, but we can’t help you take the proper measures to control the debt crisis, you’ve got to do that on your own.”-William Rhodes

Another analysts says the EU and U.S. must stop paying for debt with debt: “Politicians have been paying their budget deficits by selling bonds, in other words mortgaging, or charging the future. Sooner or later that catches up with you, and 2011 is the year that the debt finally catches up with several European countries like Greece and Italy. So they have got to put their houses in order. They have to spend what they have, but not spend more than they have.”-Francis Lun, Lyncean Holdings

Business/Economics, U.S.

What Economic Recovery? Bank of America increases Home Foreclosures by 200%

Despite their promise to cut back on home foreclosures, Bank of America boosted foreclosures by 200% in August!

CNBC reported that other banks will follow suit.  California and Nevada are being hit the hardest.

RealtyTrac confirms the huge jump in foreclosures in August.  One analysts says don’t necessarily blame the home buyer: “This proves once again that ‘credit’ as measured by legal defaults and foreclosures is not necessarily about borrowers missing payments, rather about what the servicers [banks] chose to do about it.”-Mark Hanson, housing analyst

Business/Economics, U.S.

What Economic Recovery? Idaho Tax collections miss mark, again

Idaho is two months into its fiscal year and already sales and income tax revenues are $10 million LESS than expected.

The Idaho State Tax Commission says total collections, so far, are $403 million.

Individual income tax collections for August were $91.4 million, about $3.9 million less than expected.

Sales tax receipts for August came in at $86.8 million, $6.8 million less than expected.

July did a little better, but was still less than expected.  Other tax revenues also did well, coming close to expectations.  However, lower sales & income tax revenues means that people still aren’t spending enough money, ’cause they’re not making enough money. Obviously its a sign that for the average Joe & Jone in Idaho, the economy still sucks.

Business/Economics, Technology, U.S.

Corporate Incompetence: Pain killing drug pump killing the patient, says FDA recall

September 13, the U.S. Food and Drug Administration announced a recall on a drug infusion pump by Medtronic.

The recalled drug pump was called “SynchroMed II”, including models of 8637-20 and 8637-40, distributed between 2004 and July 2011.

There is a problem that actually causes recurrent or withdrawal symptoms, which could be life-threatening.  There are 55 known cases of failure, and one known death.  I personally might know of another unreported death, someone who died just two months after having a pain pump put in. It was a painfully slow death because her own doctors didn’t know what was going on.  She was a single mom.


Business/Economics, U.S.

United Police States of Corporate America: Artist being harrased by cops because of his anti-Bank paintings

“I’m not a terrorist. I’m not firebombing any banks.”-Alex Schafer, artist

A Los Angeles, California, artist is constantly harassed by police, because of his anti-bank paintings.

The paintings show major national banks on fire, the artist says they’re hot sellers!  “I started the bidding off at 920 bucks and its at $10,100 now.”

The artist also uses slogans like “Bad banks should fail”.  Apparently the paintings and the slogans have local police thinking the artist is a terrorist.

Who’s the real terrorists? Since 2008, none of the bank bosses in charge during the mortgage meltdown have done any jail time.  Instead, they were the recipients of bailouts and bonuses, while millions of U.S. citizens continue to suffer through foreclosure, unemployment and financial ruin.