Category Archives: Business/Economics

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

No Economic Recovery for the U.S.: eBay striking it rich in China

“Chinese exporters today have a significant price advantage, and combined with eBay’s global reach, it creates a very powerful business opportunity.”-Jay Lee, eBay Asia-Pacific.

California based eBay is seeing huge yuan signs, not dollar signs.  That’s because the online auction and retail site is making big gains in China.

Just a few years back anyone in the U.S. who bought something from China, through eBay, had to wait nearly two months to get their item.  Now it’s taking less than a month (I know, I’ve bought a couple of things from China through eBay).

That reduction in shipping time is helping to boost eBay’s China operation: “Now it takes only seven to 10 days for Chinese products sold through eBay to reach any destination in the U.S.”-Jeff Liao, eBay Greater China. (Personally I haven’t experienced that fast of shipping time)

At the end of 2010, 20% of eBay sales were outside the United States, most of which involved China.  EBay officials predict their Chinese operation to grow an amazing 30%-40% every year!

 

 

Business/Economics, International, Technology

UN warns of return of Bird Flu, Vaccines not working

“Wild birds may introduce the virus, but people’s actions in poultry production and marketing spread it.”–Juan Lubroth, UN Food and Agriculture Organization

The United Nations Food and Agriculture Organization (FAO) is warning of a new mutant strain of H5N1 (Bird Flu).  They say it’s spreading throughout southern China, and Vietnam.

Current vaccines do not work on this latest strain.

The UN is predicting the mutant H5N1 virus could spread to Cambodia, Thailand, Malaysia, Korean and Japan.  The last H5N1 outbreak peaked in 2006.

Business/Economics, International, U.S.

Global Economic War: After raising prices in U.S., GM lowers prices in China, losing out to VW

“The next 12 months look tough.  Incentives brought forward buying in a very dramatic fashion in 2009, 2010, and now we are seeing a lack of pent-up demand.”-Ashvin Chotai, Intelligence Automotive Asia

General Motors can’t stand the heat of the competition in China, so they’re sacrificing profit margin by dropping their prices, on minivans.

“GM does not rely on the minibus for profit, they only contribute volume.”– Jenny Gu, JD Power & Associates.

GM might not rely on minivan sales for profits in China, but they’re sure taking the competition serious.  GM’s sales of minivans, in China, dropped 3% this year, so far.  That’s important when you realize that China, not the United States, is now GM’s largest auto market.

The minivans that GM sells in China, are made in China, not the U.S.  One in eight vehicle sales in China are minivans.

It looks like VolksWagen is taking up the slack in GM’s lagging Chinese made minivan sales.  GM sold 1.27 million vehicles in China in the first half of this year, compared with VW’s 1.1 million.  This means VW could soon overtake GM’s number one foreign car maker position in China.

 

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? East Idaho Salvation Army declares “food crisis”, 20% of Idaho kids going hungry as Idaho politicians slash and burn social services

“We’ve had an increase in requests for that type of service, and so our food supply is dwindling rapidly.”-Brenda Ames, Pocatello Salvation Army

A recent survey by Feeding America revealed that the economic situation in Idaho is much worse than elected leaders claim.  At least 20% of Idaho kids do not know where their next meal is coming from.

“Children are aware that the parents are struggling to feed them. They don’t know if there is enough in the house for breakfast, enough food for dinner.”-Joye Jones, Idaho Food Bank Pocatello Branch

The problem is made worse by the facts that because more people are making less money, donations to food banks are down, and, the state of Idaho has been cutting federally funded social programs.

The state with the least food insecurity is also the state with the best economy; North Dakota with less than 12% of kids going hungry.

 

Business/Economics, U.S.

United Police States of America: Adelanto, California, makes deal with private prison devil GEO, former prison guards still unemployed, prison to be replaced by immigrant detention center

More than one year ago, the city of Adelanto, California, sold their prison to GEO Group.  The Adelanto Community Correctional Facility was being used to house state prisoners.

City officials say they got a promise from GEO that the former city prison guards would be hired.  City officials also thought the prison would be reopened shortly.  One year later those former city paid prison guards are still unemployed.

GEO is remodeling the prison, because it is now going to be used as an immigrant detention center.  It’s been renamed the Adelanto ICE Procesing Center East & West.  GEO wants to start taking in immigrants by August 2011, but doesn’t expect the new detention center to be completed until August 2012.

GEO also runs the Desert View Modified Community Correctional Facility, in Adelanto.  GEO Group is the second largest for profit prison corporation in the United States.  GEO run prisons have histories of violence and sexual assaults.

 

Business/Economics, U.S.

United Police States of America: FBI investigates Florida prison deal involving GEO and the Republican Party

August 24, the Federal Bureau of Investigation seized a Santa Rosa County commissioner’s computer. It’s in connection with an investigation involving former Florida House Speaker Ray Sansom, and GEO Group.

Sansom is being investigated for improper use of the Republican Party of Florida credit card, in which thousands of dollars in charges where made, that do not appear related to Republican Party of Florida business.

The FBI now suspects that GEO Group, and Sansom made improper deals in order to guarantee that GEO Group would get the contract to run the Blackwater River Correctional Facility, in Santa Rosa County.

Back in July the FBI issued three subpoenas to the Florida legislature. One for all travel vouchers relating to Sansom, and his aides: Melanie Phister, Eric Edwards, Dort Baltes and Samantha Sullivan.

The second subpoena was specifically for Samantha Sullivan, and related to campaign finance.  The third subpoena related to GEO Group, and Sansom’s role is getting GEO the prison contract.  GEO Group is one of the biggest supporters of the Republican Party of Florida.

GEO run prisons have histories of violence and sexual assaults.

 

 

 

 

Business/Economics, U.S.

Corporate Incompetence: FDIC sues failed bank executives, board of directors were the cause of Georgia’s biggest bank failure ever, more proof that the bad economy is the fault of Corporate America

In 2009, Silverton Bank, in Georgia, failed.  The FDIC spent $385 million taking over the bank, it was the biggest bank failure in Georgia’s history.

Now the FDIC is suing the former board of directors, for gross incompetence.

The FDIC alleges that Silverton executives engaged in “extravagant spending on unnecessary items”, with “a complete disregard of a declining economy.”  Also,  they accuse the bank’s top dogs of “robotically voting for approval of transactions without exercising any business judgment.”

Business/Economics, International, U.S.

What Economic Recovery? Obama screws 400 Merchant Marines out of a job

“This has literally flabbergasted the American maritime industry.  The idea was to create American jobs and help the economy.  But all the profit from the sale of the oil has gone to traders and oil companies and all the profit from movement of the oil has gone to foreign shippers and crewmen, and that’s galling.“-Christopher Coakley, The American Waterways Operators

In the name of a national emergency, President Obama has waived U.S. Merchant Marine Law, and is allowing foreign ships to carry U.S. oil supplies.

About a month ago Obama decided that the situation in Libya was threatening world oil supplies, so he decided to release 30 million barrels of oil from the U.S. strategic reserves.

Under the U.S. Merchant Marine Act of 1920: “Section 27, better known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S. flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The purpose of the law is to support the U.S. Maritime industry.”-Wikipedia

Obama decided the situation qualified as a national emergency, which allows him to wave the Jones Act.

According to U.S. merchant marine officials, Obama’s decision cost at least 400 U.S. jobs.

 

Business/Economics, U.S.

United Police States of America: Arizona City stands up to evil prison contractor GEO, says no more

Florida based GEO Group, got slammed by hundreds of Goodyear, Arizona residents, after GEO attempted to convince local authorities to let them build a new prison.

The Arizona Department of Corrections wants a new 5,000 bed prison.  They’ve picked 5 possible locations.  The prison will be run by a contractor, for 20 years.

So far several cities have indicated their desire to be the location of the new prison, but one city, Goodyear, made it clear they did not want a GEO run prison in their back yard.

It wasn’t just the people of Goodyear, but several businesses, and organizations as well. The list includes Duncan Family Farms; the Litchfield elementary school district, along with the city of Litchfield Park; property developers Sunbelt Holdings and Robson Resort Communities; and Sub-Zero refrigerator manufacturer.

A GEO representative tried to convince the Goodyear council that the prison could bring in an annual payroll of up to $51 million to the community.

Mayor Georgia Lord responded: “A prison does not grow anything but more prisoners.”

Along with the 5,000 bed prison, GEO is trying to get Arizona to build a smaller 3,000 bed prison in San Luis, near Yuma.