Category Archives: Business/Economics

Business/Economics, Idaho, U.S.

What Economic Recovery? U.S. home construction down again, no recovery in sight

“This range leaves us at the lowest levels since the series began in 1959. While monthly volatility is likely to continue, no real recovery looks to be on the horizon.”-Jill Brown, Credit Suisse

August 16, the United States Census Bureau reports housing starts fell 1.5% in July, and permits to build new homes fell by 3.2%.

The biggest drop came in what’s called “groundbreakings” of single family homes, down by 4.9%.

The Census Bureau blames the declines on too many existing homes on the market, no thanks to the big banks foreclosing on so many home buyers.

Just last week, Idaho officials downgraded their economic forecast, with one factor being a decline in construction jobs.

Business/Economics, International

What Economic Recovery? Europe continues to stagnate, media still calls it ‘slow growth’, Germany hit hard

The European economy is still stagnating, a GDP (gross domestic product) of 0.2% for this past quarter.  That’s a drop from 0.8% in the first quarter of 2011.

Mainstream media continues to call such numbers “growth”.

Europe reports their GDP as a quarterly average.  The U.S. reports GDP as a yearly average.

Germany, the economic powerhouse of the European Union, got slammed.  Their GDP fell to 0.1% for the second quarter 2011!

German officials blamed, as usual, German shoppers, but, they also blamed investors.  Not only are shoppers shopping less in German stores, but investors are investing less into German companies.

 

 

Business/Economics, U.S.

What Economic Recovery? WalMart says the economy still sucks, 9th straight quarterly decline in sales, blames you!

August 16, WalMart reporting their sales have dropped for the 9th straight quarter!  And that’s with higher sales than the same time last year!

WalMart blames us shoppers!  Just like most of Corporte America, WalMart says we shoppers aren’t doing our job spending money we don’t have!

To be fair, WalMart execs realize the bad economy has something to do with us shoppers not spending money: “We remain concerned about the economic pressure on our customers and the uncertain impact it can have on their shopping behavior.”-Bill Simon, CEO

Bill Simon’s statement also shows ignorance when he says a bad economy has an “uncertain impact” on shopping.  Hello, mister Simon, bad economy means no money, no money means a no shoppin’ ina you store!

This past quarter includes the coveted Back to School sales.  Back to School sales are the second most important for retailers, after the November/December holiday season.  Guess what, their Back to School sales sucked!

 

 

 

Business/Economics, International, U.S.

What Economic Revovery? Japanese companies report double dip decline in profits, predicts continued declines into next year, blames the crashing U.S. dollar

Major Japanese companies are reporting a second quarter of declining profits.  And that’s before taxes!

SMBC Nikko Securities has compiled the profit results of more than 1,200 companies.  Overall profits are down by 12%.  They also predict profits will continue to fall into next year, by at least 2%.

Business analysts in Japan blame the decline on lack of electricity, due to more than half of Japan’s nuclear plants being shut down, and the crashing U.S. dollar.

As the U.S. dollar falls, the yen is rising in value, making Japanese products more expensive for foreign customers to buy.  Most of Japan’s economy is based on exporting products to other countries.

Japan is also the second largest foreign holder of U.S. government debt.

 

Business/Economics, Idaho, U.S.

Government & Corporate Incompetence: Idaho punishes California’s Molina for screwing up Medicaid payments, some health care providers went out of business

Idaho is still trying to get back $10 million in overpayments, that Molina screwed up when they took over Idaho’s Medicaid payment system in 2010.

Idaho officials say they turned over the payment system to California based Molina Medicaid Solutions, to comply with Federal regulations.

The move cost taxpayers big time, and it shut down a few health care providers.

What happened was that at the beginning of Molina’s take over providers weren’t getting paid, for as long as two months!  Many providers came close to bankruptcy, and a few went out of business.

The state made emergency payments, then Molina went and finally responded by paying the original claims.  The result was double payments!

The state of Idaho is punishing Molina by reducing the amount of money they were originally to be paid.  Also, Idaho is trying to recoup the money from the double payments.

Molina has made improvements to their customer service, but as of this year they still have 10,000 claims pending, with just under 5% being more than a month old.  One northern Idaho mental health provider says her payment claims still get delayed for no reason.

 

Business/Economics, International, U.S.

What Economic Recovery? 2.5 million new jobs, not for the U.S., for Iran

The Iranian government is working to create 2.5 million jobs in the Iranian calendar year 1390 (March 21, 2011 – March 19, 2012).

The Iranian government claims to have the essential human and financial resources to achieve this goal.  Iran created 1.6 million new jobs last year.

To do what the United States government can’t seem to do, Iranian labor unions, and companies, are cooperation with their government.  It’s all part of a strategic 20 year socio-economic plan.  The 20 year plan is broken up into smaller tactical five year plans.  Iran recently started its fifth five year plan, which ends in 2015.

 

Business/Economics, International, U.S.

Israel preparing to let go of United States, finds new supporter: China

Israeli military industries have long had cooperative relationships with Chinese military industries.  Now the Israeli government is making big moves towards wooing the Chinese government.

On August 14, General Chen Bingde, of China’s People’s Liberation Army, met with Israeli Defense Minister Ehud Barak, in Tel Aviv.  Barak visited China two months ago.

The Israelis are trying to win increased support from the Chinese.  Possibly they realize the United States government is flat broke, and can’t continue to give Israel billions of the U.S. taxpayers’ money.

A Jewish commentator, Eran Shayshon, stated, on the same day that General Chen showed up in Israel, that Israel must adopt an “open tent” policy towards the BRIC economies.  BRIC stands for Brazil, Russia, India and China.  They’re the only countries with good economies.

This is the first time a Chinese military official has visited Israel.  General Chen will be there for the next three days.


Business/Economics, International, U.S.

Global Economic War: World Bank says China’s Yuan would make a good replacment for the U.S. Dollar

“The Chinese policy mix includes a tool box of administrative measures … In general, one of the lessons that the United States and others can learn (from China) is that to have supervisory policies for bank regulatory systems can be a useful part of the tool set.”–Robert Zoellick, World Bank president

Zoellick gave a speech in Australia, August 14, and made it clear that China was a shining example of how economic policies should work.  In fact he said that China’s yuan may help the world pull through “a time of danger.”

Zoellick did warn that the current inflation situation, in China, might be tougher to control than Chinese officials think.

The World Bank president also hinted that China’s cooperation with the bank, creating a “catalyst for consensus”, would benefit China in the near future.

Business/Economics, International

China to modify Tight Money Supply policy

China has tightened money supply (monetary policy) in order to control inflation.  Now they will modify it with a “directional loose” money supply.

What they mean is that certain industries will be allowed easier access to financing.  Those industries include agriculture, certain small and medium sized businesses, and construction of low income housing.

Chinese officials hope this new policy will still hold down inflation, without putting a drag on industries.

 

Business/Economics, International, U.S.

Global Economic War: Recent quotes from Chinese officials, commentators, business leaders and professors show China is preparing to distance itself from the United States

“The U.S. has made other economies, including China, partly pay the bill for its recovery.”– Zhang Xiaoqiang, National Development and Reform Commission

“…the global economy is strapped stiff in the chariot of the U.S. dollar.  The United States adopted quantitative easing policies and successfully levitated the inflation level on a global scale.  The country needed the world’s help to solve its debt pressure.  Its domestic economic growth can hardly free it from its debts.”-Ye Tan, National Business Daily

“More than 70% of our products are exported to the U.S. while the rest all go to Europe.  Therefore, the depreciation of the U.S. dollar as a result of an economic recession will have a great effect on us.  The only solution we can think of now is to produce high-end products.  Buyers of these goods usually care less about prices.”-Zhou Mingwang, Yiwu Mingwang Jewelry Company

“The economic situation in the United States and Europe is not going to recover within two or three years, so we will probably reduce the proportion of exports to 50%.”-Zhang Guanjin, Shaoxing Jinyong Textile Company

“It’s like gambling, it’s hard to secure substantial, long-term profits. The only thing we can do is to transfer our factories to the inland regions to reduce costs.”-Chen Xi, Wenzhou Dongyi Shoes Company

“The economic development mode, which is highly dependent on high energy consumption, heavy pollution and resource exhaustion has reached its end in China.”-Dong Dengxin, Wuhan University of Science and Technology.

“We cannot count on the U.S. promise to ensure the security of our assets [reference to the U.S. debt China holds].  We should rely more on domestic demand and become stronger by ourselves.  Don’t worry about any hard landing in China.”-Zhang Xiaojing, Chinese Academy of Social Sciences