Category Archives: Business/Economics

Business/Economics, U.S.

Quotes from the front line of unemployment

In June, the average amount of time a person is unemployed reached a record 39.9 weeks.

“We have had many, many months to stimulate this economy and still not seeing businesses hire, it’s a real concern.”-Frank Davis, LEK Securities

“I send out 50 to 60 resumes a week. Nobody ever gets back to you.”-Rob Attanasio, unemployed more than one year

“I feel washed out from the statistics, in terms of not being heard, in terms of the energy that it has taken for me to keep trying to find work. I don’t feel like I’m even on the radar screen in Washington.”-N. David Cooper, unemployed more than one year

“I’ve had nightmares about my family living on the street.”-Said Nasser, unemployed more than one year

“What we’re seeing here is a sort of settling into the reality of where things are, maybe not holding out as much hope as they once held out that there’s going to be a big recovery, and all of it is going to come back. Instead, people are looking around and saying, ‘Maybe this is going to be what it’s going to be.'”-Rusty Rueff, Glassdoor.com

“Your hope soars when you snag a job interview; then it’s dashed when there’s no job offer. Repeat this over and over again and you start to feel like it’s better not to get your hopes up.”-Fran Hopkins, unemployed more than one year

“It’s very hard when you’re over 60. Nobody wants us. We’ve just been leaving resumes, that’s it. You get no reply.”-Mary Kadin, unemployed since April 2011

 

Business/Economics, Opinion, U.S.

What Economic Recovery? Mainstream Media Experts get it wrong, again. Job creation predictions way off

“Today, companies are producing more goods and services than ever before. The economy is able to do that with 7 million fewer workers. If we can do so much with so much less, where is the incentive to hire?”-Bernard Baumohl,  The Economic Outlook Group

For the past few days the stock markets have been going up (mainly those reported by the Dow Jones).  Some mainstream U.S. media outlets were saying it’s because of good jobs data.  It turns out their claims of good jobs data was based solely on “expert” economists, who were just plain guessing (like always).

Today, July 8, the U.S. Department of Labor released the official job hiring numbers for June, and boy are the “expert” economists way off.  The mainstream media had been reporting that “expert” economists predicted 120,000 people would be hired in June.  The actual number of people hired…18,000.   That’s a big difference.  It’s also clear proof that the U.S. economy is not recovering.

The job creation number is a “net” number, meaning it’s what’s left over after you subtract the number of people who lost jobs.  Another way to say it is that corporate america fired way more people than they hired.  And this has been going on for years now.

“We are backsliding. The chances are that we go into another recession or we muddle along at technical growth, but actually making no improvements as far as Main Street goes. The chance of one of those things happening is extremely high.”-Heidi Shierholz, Economic Policy Institute

How bad is the unemployment situation?  Officially 7 million people lost their jobs as a direct result of the credit crisis, which started in 2007/2008.  Today, officially there is still 6.3 million people with no jobs!   And by “officially” I mean those people who’re still counted by state and federal unemployment agencies, there are potentially millions who’re no longer counted.

If you notice I used two quotes from economist who seem to know what’s really going on.  I see many reports and comments from such economists, yet the mainstream U.S. media always goes with the “experts” who always get it wrong.

Why would the mainstream U.S. media continue to report faulty data?  Could it be because the mainstream U.S. media is not only traded on the stock markets, but is actually invested in the stock markets, so basically they’re scamming potential investors to give up their money to the biggest casino in the world, The Stock Market?

There are also those who believe the mainstream U.S. media is doing the bidding of the Federal government, in trying to make things look better than they really are, to try and prevent mass civil disobedience (like what’s happening in some European countries).

In any event, it is clear that you can’t rely on the mainstream U.S. media for “facts” about our economy.  And you can not use the stock market as a gauge for the performance of our economy.

The fact that 6.3 million people are still officially out of work, shows that after three years of promises about improving our economy, and claims that the recession is over, absolutely nothing has improved and many “Main Streeters” think we’re heading into a Depression.

 

Business/Economics, International, U.S.

New York takes over Germany, the real reason the stock market is going up

U.S. media reported that the continued increase in the New York Stock Exchange (reported by the Dow Jones) is because of good economic data, like better than expected job numbers.

Monthly unemployment numbers are still over 400,000, and many economists have repeatedly stated that it needs to drop below 400,000, for several months in a row, to be considered a “good” sign.

Could the real reason be that the NYSE (aka NYSE Euronext) was just approved, by shareholders, to take over one of Germany’s stock markets: Deutsche Boerse AG.

The take over still needs approval of Deutsche Boerse shareholders.

This seems to be a more likely reason for the upswing in the NYSE trades, because Germany is the only economic powerhouse left in the European Union, thanks to its many trade deals with China.

According to the NYSE website, “…NYSE Euronext’s equities markets include the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca.  NYSE Euronext also operates NYSE Liffe, a European derivatives business.”

The Dow Jones is a stock market index, which includes the NYSE Euronext trades in its daily reporting.

Business/Economics, International

What Economic Recovery? Chinese credit crunch could burst Chinese housing market bubble

In an effort to fight inflation the Chinese government recently ordered banks to tighten their grip on the money supply.  One way is to cut back on loans.

The China Construction Bank announced they will increase down payments on homes, for first time buyers, to 40% of the purchase price.  The Chinese banks were told to either raise the amount of down payments, or increase interest rates on mortgages.  This could pop China’s housing market bubble.

Business/Economics, U.S.

Proof that insurance is too powerful: GM cars now come with insurance

General Motors, desperate to increase domestic sales, will include insurance on new car purchases.  But only if you live in Oregon or Washington states.

It is part of an experimental marketing program, to increase car sales.  The insurance will be provided by Met Life.

The experiment will last until September 6.  Oregon and Washington are being targeted because GM sales suck in those two states.

Business/Economics, International

What Economic Recovery? S & P’s says Europe’s action on Greek debt will result in automatic default

Standard & Poor’s is warning that a French plan to “rollover” Greek debt will force Greece into default.  The plan was put forth by the Fédération Bancaire Française.

S & P’s is not the only finance rating company to make such a claim.  It’s complicated, but basically they claim the French plan would result in current “investors” in Greek bonds receiving much less of a return on their investment, so much so that S & P’s is willing to declare Greece in default.

The plan was approved by the only economic powerhouse in the European Union: Germany.

“In our view, Greece’s near-term reliance on European Union and International Monetary Fund official financing, the government’s difficulty in reducing its sizable fiscal deficit, and the current pricing of Greek government debt in the secondary market all underscore the Hellenic Republic’s weak creditworthiness and, consequently, point to a ‘realistic possibility’ that financing option would fit the ‘distressed’ category.”-Standard & Poor’s

Business/Economics, International, Opinion, Technology

Government Incompetence: Europeans now blaming Egypt for deadly E Coli, no real proof, are GMOs to blame?

First the Germans blamed Spanish cucumbers.  Then they blamed sprouts, from a northern German farm.  Then the French blamed a German owned grocery store selling French grown sprouts.  Then the French blamed a U.K. seed company which supplied the seeds to grow the sprouts.   Then the Swedish blamed the Germans, then backed off when they began having e.coli cases in people who’d never been to Germany, or eaten sprouts.  Now the Europeans are blaming Egyptian fenugreek seeds for the deadly e.coli.  Fenugreek is used as an herb and a spice.

The Europeans have gone so far as to ban any more imports of Egyptian fenugreek.  On top of that they’re banning other Egyptian agricultural products, until they can be proven safe.

Here’s the problem; no one has proven conclusively where the deadly e.coli strain is coming from!

Fact: German health officials traced some of the e.coli cases back to a typhoid Mary suspect, a woman who worked for a catering company.  The woman seems to be a carrier.  She thinks she might have eaten sprouts.

Fact: E.coli comes from humans, not plants.  The only way plants could get infected is if they came into contact with humans waste.

So far at least 49 people have died, and more than 4,000 are sick.  Knowing the facts about the case, how can European officials now blame Egyptian fenugreek?  Of course they claim the seeds were used to grow the sprouts that made people sick.  But up ’till now the claim has been that “bean” sprouts are the culprits. Now suddenly it’s fenugreek sprouts?

Seeds get contaminated when they come into contact with the bacteria.  This could be at anytime in the planting, growing and harvesting process.  It only takes a tiny bit of the bacteria, once the seeds are planted not only does the plant grow, but some does the e.coli, and it spreads.  That’s the traditional way.

Here’s a new way: In an earlier posting I wrote how some scientists say it looks like the deadly e.coli strain was engineered in a lab.  If you understand the way genetic engineering of plants works, then it actually makes sense.  In order for scientist to make their genetic modifications ‘stick’, they must use a bacteria that is resistant to almost all forms of self preservation by the original plant genes.  Yes, e.coli is one of those deadly bacterias that agricultural giants like Monsanto could be using to create GMOs (Genetically Modified Organisms).

They also want their newly modified plants to be super resistant to natural diseases, and man made chemicals.  Again, that’s where the deadly bacterias come into play.  GMOs contain bacteria that are intentionally made to be super resistant.

Are we looking at the first cases of deadly results from genetically modified plants?

Business/Economics, International

No Economic Recovery for the U.S.: German car sales explode, but not because of the United States

German car makers are scrambling to keep up with international orders.  They expect that by the end of the year they will have exported 4.15 million German made cars.  But the majority of those cars are not going to the U.S., they’re going to China, and to some extent India.

“We are seeing international markets pick up much more rapidly than many had expected.  The drivers of growth are above all Asian markets.”-Matthias Wissmann, German Car Industry Association

Audi alone saw a 64% increase in their sales to China and Hong Kong, in 2010.  But BMW is turning out to be the big money maker, just in the first six months of 2011, their sales in China exploded by 101%!

Executives for German car makers admitted they are scrambling to rethink their corporate strategy, because they never expected such high sales in China, so soon.

 

Business/Economics, International

No Economic Recovery for the U.S.: Germany & China sign $3 billion deal

Germany, not the United States, is becoming China’s most important business partner.

In fact the latest deal puts to shame the recent deal signed between China and the United Kingdom, by several hundred billion dollars.  At the end of June Germany and China signed a $290+ billion deal.

The deal includes not just the purchase of products, but investments into anything from universities to medical research to environmental services.  Sounds like everything President Obama promised the people of the United States.

Currently Germany has invested $20 billion into Chinese industries, with China investing only $600 million into Germany.  This new deal greatly increases Chinese investment into Germany.

According to Rainer Gehnen, managing director of the German-Chinese Business Council, China, not the United States, is now Germany’s most important market, and will be for the long run.

 

 

 

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

Rare Earth Minerals the ‘oil’ of the 21st Century. Who controls the most? Same old adversaries of the 20th Century

Rare earth minerals will become the ‘oil’ of the 21st century.  That’s because they’re used in high tech electronics, and the more the world becomes reliant on electronics, the more valuable rare earth minerals become.

In fact, some analysts say some of the current wars raging on the African continent are all about control of rare earth minerals.

Here are some examples of rare earth minerals: Dysprosium is used in electric motors for vehicles, and Terbium for the latest televisions.

Who’re the biggest controllers of rare earths?  Why they’re the same major players of the Cold War in the 20th century: Russia (the boss of the Soviet Union during the Cold War), China and the United States.

However, China actually controls 90% of the production/refining of rare earths.  This is where their true power comes in.

Rare earth minerals are so important that the Japanese University of Tokyo spent a lot of money conducting a search for other sources of rare earths.  Their target search area was the Pacific Ocean.  International law would prevent any monopolization by any country, of rare earths found in the Pacific Ocean.

They found plenty.  From 2000 samples taken at 78 locations, Associate Professor Yasuhiro Kato estimates there is 800 times the rare earths at the bottom of the Pacific Ocean, than there is on land.

They targeted volcanic vents on the Pacific Ocean floor.  Hawaii has a lot.  The problem is that most of the high concentrations are at depths of 3,000 to 6,000 meters (9,842 to 19,685 feet).  So there are technical limits to getting at the Pacific Ocean rare earths.