Category Archives: Business/Economics

Business/Economics, International, U.S.

Global Economic War: Chinese economists continue to push their government to dump U.S. bonds, says the U.S. has passed point of no return, will continue on a downward spiral, Morgan Stanely agrees

“China should move progressively to cut its holdings of U.S. Treasury bonds and use it as leverage to ask Washington [DC] to further open its markets, including the high-technology sector, to Chinese investment.”-Xiang Songzuo, University of China

U.S. Vice President Biden is in China, trying to reassure the Chinese government that the U.S. will “…ensure the safety, liquidity and value of U.S. Treasury obligations for all of its investors.”

Chinese economist say it’s too late, the U.S. economy is too far gone: “But there is very little room left for the U.S. government to revitalize its economy.  Low growth and high unemployment will be regular features of the U.S. economy in the future.”-Wei Liang, China Institutes of Contemporary International Relations

Even officials with Morgan Stanely, an international finance company based in New York City, say the United States has lost all economic legitimacy: “The U.S. debt crisis has taken a serious toll on China’s confidence in Washington’s [DC] economic stewardship.  China is no longer willing to risk financial and economic stability on the basis of Washington’s hollow promises and tarnished economic stewardship.”-Stephen Roach, Morgan Stanley Asia

 

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

President Obama wants war with Syria, EU leaders want war with Syria, Canada wants war with Syria, it’s all about the oil baby!

“The future of Syria must be determined by its people, but President Bashar al-Assad is standing in their way.  We have consistently said that President Assad must lead a democratic transition or get out of the way.  He has not led.  For the sake of the Syrian people, the time has come for President Assad to step aside.”-President Barack Obama, written statement.

“Our three countries believe that President Assad, who is resorting to brutal military force against his own people and who is responsible for the situation, has lost all legitimacy and can no longer claim to lead the country.”-joint statement from British Prime Minister David Cameron, French President Nicolas Sarkozy and German Chancellor Angela Merkel

“I join with (U.S.) President Obama and other members of the international community in calling on President Assad to vacate his position, relinquish power and step down immediately.”-Stephen Harper, Canadian Prime Minister

Syria is “…a proxy for Iran, a supporter of terror, and a threat to United States interests and our allies in the region.”-Eric Cantor, U.S. House Majority Leader

All these statements were made after President Assad announced an end to the crackdown on the insurgency.  He also invited the United Nations to investigate claims of human rights abuses, however, U.S. officials, and the U.S. media are reporting that some how the UN already conducted an investigation and found Assad guilty.  That was fast!

Major oil pipelines run through Syria, from Iraq and Iran to Turkey, Lebanon and the Mediterranean Sea.  90% of the oil goes to Europe.  Remember, we’re attacking Libya, and the majority of Libyan oil goes to Europe, in fact almost all of Italy’s oil supplies come from Libya.

It’s really starting to look like Europe, with the help of the United States, is trying to save its sorry economic ass by taking direct control of their major suppliers of oil.

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

What Economic Recovery? Chrysler owner Fiat looking to move to Russia

“Fiat is intensively examining St. Petersburg along with Nizhniy Novgorod. No decision has been made yet. Most likely the Italian automaker will select a green field site. We expect that they will make a decision on the site in the fall.” –Dmitry Levchenkov, Russia’s Economic Development Ministry

Fiat, the owner of Chrysler, is actively looking to start factories in Russia, to build cars and spare parts.  The reason?  Car sales are booming in Russia.

Just in the first 8 months of 2011, Fiat saw a 59% increase in sales in Russia.  That’s impressive when you realize that most Russians are hesitant to own a Fiat: “Few Russian drivers opt for Fiat because the service and spare parts are difficult to find in Russia. However, if Fiat builds an assembly facility and handle the production and create a unique distribution channels with service centers its world popular five door hatchbacks could invade the Russian cities frequently.”-Alexandr Tsipin, journalist

Fiat has already made deals with Russian car maker GAZ.  Fiat hopes to build 120 thousand cars per year in Russia.

The major reason for Fiat’s huge jump in sales, they’re the cheapest foreign car in Russia.

I wonder what Fiat will do with it’s Chrysler operations in the U.S. and Canada?  Canadian labor unions have been warning that Fiat will shut down Chrysler factories.

Business/Economics, Opinion, U.S.

What Economic Recovery? Military Retirement Pay to be sacrificed on the 401k altar

In the name of providing more funds for weapons systems and combat operations, the Defense Department has decided it’s time to end their traditional retirement plan, and force military personnel into risky 401k plans.

The plan is described in the publication “Modernizing the Military Retirement System”.

Government officials say that current military missions can not be continued without cutting funding from other military programs, like retirement.  Hello, that’s a clear sign that you’re military is overextended! (That’s what happened to NAZI Germany and Imperialist Japan in World War 2)

Promoters say the good thing about using 401k is that a veteran can collect on the money even if they do not serve the full 20 years.  But all those people out there, trying to get by on their crashing 401k plans, will tell you the 401k is no guarantee you’ll have enough money to live on.

 

 

 

 

Business/Economics, U.S.

What Economic Recovery? Moody’s joins S & P’s in downgrading the U.S.

“The U.S. economy needs to grow 2.5% to 3% per year to add jobs fast enough to keep the unemployment rate stable. This will not happen soon.”-Mark Zandi, Moody’s Analytics

Moody’s Analytics downgraded projected GDP for the Untied States. One month ago they projected GDP to be at a yearly average of 3.5%, for the rest of 2011.  Now they say the U.S. will be lucky if it can hit 2%.

Moody’s also says the chance of an official double dip recession is now 1 in 3.  They also said every 100 point drop in the Dow Jones increases the chances of a double dip recession.

They pointed out that the current job creation rate in the United States falls way short of employment goals for 2012: “Employers will have added about 1.25 million jobs between the fourth quarters of 2010 and 2011, and 2 million more by the fourth quarter of 2012. By then, U.S. employment will still total some 1 million less than expected.”–Mark Zandi  (keep in mind he’s talking about projected job creation, there could be more jobs created, or less)

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

Government Incompetence: Obama says he wants jobs for the U.S., but spends $1.1 million on a Canadian made bus

It’s called Ground Force One, a $1.1 million dollar bus made in Canada, and used by the Obama administration.

There’s also a Ground Force Two, because your government bought two of these behemoth buses.  And your taxes paid for them!

Ground Force Two is actually being called Stagecoach. But don’t blame Obama, the second bus will be used to transport the Republican candidate for the 2012 election campaigns.

Officially the public is being told the buses came from a Tennessee company, but ABC News found out they were built in Canada, and only modified in Tennessee.

 

 

Business/Economics, International

Government Incompetence: Spanish taxpayers forced to pay for Catholic Pope’s visit

“We criticize this scandalous show at a time of such a terribly distressing economic situation, with entire families unemployed.”-Evaristo Villar, Christian Networks

The Pope is visiting Spain, and the taxpayers are paying for it, to tune of U.S.$70 million to $150 million.  This comes at a time when 20% of Spaniards are unemployed.

One protestor called the Pope’s visit a “huge Christian circus”.

72% of Spaniards claim to be Catholic, but that’s not stopping younger Catholics from joining the protests.  However, Catholics have also joined riot police in attacking protestors: “I was at the protest with my father, and one of the Catholics punched me in the face.” 18 year-old protester

When you break down Spain’s unemployment by age, 45% of teenagers and young adults are jobless.

 

Business/Economics, International, U.S.

Global Economic War: China sells record number of Yuan bonds, pushing to dominate bond market and influence the Yuan as the New World Currency

A record amount of Chinese government bonds have been issued in Hong Kong.  And investors are buying them up.

Several types of yuan based bonds, which mature between 2 and 10 years, were sold, totaling U.S.$3.1 billion, a record.

This was the third Chinese yuan bond issue in Hong Kong.

Demand was so high for this latest issue of yuan bonds that orders had to be stopped.  There were 4.6 times more demands to buy the yuan bonds than there were yuan bonds to sell!

Analysts said China plans to issue more yuan bonds, with the goal to help promote the yuan as the next world currency, replacing the U.S. dollar.

Business/Economics, U.S.

Government Incompetence: Social Security lists 14,000 living people as dead, every year, can you check to see if your really dead?

The U.S. Social Security Administration has been listing as many as 14,000 people, who are alive, as being dead and cutting off payments.

Between 2007 and 2010, 36,657 living people were declared dead.  I wonder if that’s had any affect on consumer spending?

Living people who’re declared dead by the Social Security Administration not only lose benefits, but have to prove they’re still alive.  That can take months.  Until then you won’t be able to make any financial transactions with banks, etc.

Most people find out they’re dead when their checks start bouncing, then their Social Security payments don’t show up.

Some people discover that not only were they declared dead, but the Social Security Administration “lost” their file, forcing the “dead” person to literally start over with the SSA.

The “deaths ” are listed in a Death Master File.  Many genealogy web sites offer a Social Security Death Index search service, that lets you search a person’s history using their social security number.  Maybe you can search for yourself, if you show up you know you’re dead.

Business/Economics, Idaho, Opinion, U.S.

What Economic Recovery? Idaho Poverty rates highest in the U.S., new report also insults single parents

“We need to really be concerned about the growing number of children in poverty. Our poverty rates are growing faster than the rest of the nation and that has long-term consequences.”-Lauren Necochea, Idaho Kids Count

The latest Kids Count survey found Idaho leading the country in poverty rates for children.  The national average is 18%, from 2000 to 2009.  During the same time period, Idaho’s poverty rate hit 29%!

To make things worse Idaho politicians are slashing and burning federally funded social programs.

Other bad news from the survey: Idaho teens who drop out of school, and are unemployed, are increasing year after year, 8% in 2008, 9% in 2009.

The Kids Count report also says teen deaths are on the increase.
Strangely the report considers single parent families to be a bad thing! It says single parent families are on the increase, but my own experience shows that is not a bad thing!  I’m a single parent and raised three children who were A/B students in grade school, now they’re all working adults, with two of them also taking part time college courses.  They have their own newer model cars, one is a homeowner, another is a landlord (on top of her job and going to college).  Tell me how being a single parent hurt my kids!