Category Archives: Business/Economics

Business/Economics, International

What Economic Recovery? Greece secretly defaults on bailout loans, on the verge of class war

“The measures that have been adopted are not to avoid the default, the default already took place, but it was not declared.”-Paolo Raffone, Secretary General of CIPI Foundation

Greece has cut even more social services and programs, and has jacked up taxes, in an effort to get more bailout loans approved.   The problem is that at least 16% of the Greek people are unemployed.

Analysts say most of the loans that Greece has gotten, have been going to pay previous loans.  Nothing is being used to try and build the Greek economy, like creating jobs.  The result is that the Greek government is just digging a deeper and deeper debt hole.

One analysts says what the Greek government is doing is called “virtual economics”, meaning the economy is based on loans, there is no true economy in Greece: “Economic specialists are trying to prop up an inherently unsustainable project, which is based on sometimes virtual economics.”-Sahara Ali, Green Party

Ali warns that continuing bailout loans will only make things worse for Greece, it’s really being done to save the European Union, and the Greek people know it: “That is what the general population has realized, that it’s increasing its indebtedness in order to prop up the Euro Zone.”

Ali suggested that part of the bailout loans require Greece to buy more products from other European countries, which actually works against building a Greek economy.

Paulo Raffone says the situation in Greece is heading towards a civil war based on class, rich vs poor: “The leadership in the country is always the same now for more than 40 years, and they’ve been profiteering on the People. There’re a few families that are sharing large shares of take in the national wealth.”

Raffone also says the control of Greece by the elites extends to the rest of Europe: “You have external European profiteers, which are the banks from Germany, France, Belgium and others, that have been profiteering on the Greek situation no matter what currency is there.” He says the elites don’t really want to change the current situation, because they’re making money off it.

Sahara Ali says the elites have revealed the “stupidity” of their economic reasoning: “Nobody’s actually able to eat the number of zeros, the negative zeros, in their bank balance.  What they actually are faced with, on a daily bases, is making ends meet.  Are we really thinking it’s reasonable to demand extra taxes from people in Greece who are on the minimum wage?”

Regarding the recent vote in the Greek Parliament, supporting their president’s latest efforts to get more loans,  analysts point out there is a huge gap growing between the People and their government officials.  The People do not want any more bailout loans.

More and more analysts are thinking that default, by many countries including the United States, is inevitable.  The problem is that the ruling elites of most countries are not being realistic, and are trying to pass the buck of responsibility of their bad choices onto the People/taxpayers.  This could result in class/civil wars on a global scale.

 

Business/Economics, International, Technology

Mazda claims new Mazda 2 blows away hybrids in fuel economy

Mazda announced that their latest generation Demio (aka Mazda 2) gets much better fuel economy than hybrids.  That mean no more expensive batteries to replace.

The Demio’s engine has uniquely shaped pistons to increase combustion efficiency, and, it has a computer that will shut off the engine when it’s idling beyond a certain time limit.

The Idling Stop System will automatically start the engine when you’re ready to go.

Mazda’s Chief Executive, Takashi Yamanouchi, says how well the car sells will determine the future of car design for Mazda.  He hopes that all Mazda cars will be produced with similar technology within five years.  No word on if the new gas saving Demio (Mazda 2) will be sold in the United States.

Business/Economics, International, U.S.

Iraq caves to U.S. pressure, might allow U.S. troops to stay beyond current withdraw date

June 30, Japan:  In an exclusive interview, NHK discovered that the Iraqi government might let U.S. troops stay.  For months U.S. officials have been pushing Iraq to ‘request’ that U.S. troops be kept past the current withdraw date.

Under the terms of the last agreement, the only way that U.S. forces would stay, is if the Iraqi government requested them to stay.  Officially Iraqi officials have stated that they want the U.S. out.

Iraqi government spokesperson, Ali al-Dabbagh, told NHK that some Iraqi officials now believe their troops need more U.S. training.  This is exactly the reasoning U.S. officials have been telling Iraqi officials to use.

The Iraqi Parliament is set to vote on the issue, it’ll take a majority of support for the request to become official.

Several militia groups, some very powerful, stated they will go on the war path if U.S. troops do not leave by the end of 2011.  Already attacks against U.S. troops have increased since Defense Secretary Robert Gates began pressuring the Iraqi government to let U.S. troops stay.  June, 2011, has become the deadliest month for U.S. forces since 2009.  Some economist say the U.S. wars in Iraq and Afghanistan have cost the U.S. economy $3 trillion.

Business/Economics, Idaho, International, Opinion, Technology

Japan not number one when it comes to computer skills, girls better at digital reading, computer use at school of little value, Idaho needs to get their act together

A survey by the Organization for Economic Cooperation and Development shows which countries are the top for computer/internet skills among teenagers.

Japan did not come in first.  South Korean teenagers are number one in computer/internet skills, followed by New Zealand, Australia, then Japan and Hong Kong/China.

The OECD study looked at the digital reading comprehension and computer operating skills of 15 year olds.  16 countries were involved with the study, the United States did not take part.   It turns out that girls are better at digital reading than boys (studies show that girls are better at print reading as well).

A surprising find was that use of computers in schools showed little benefit.  It could be because they aren’t used at school as much as at home.  The study showed that most teenagers learn their computer skills at home, not at school.

“But computer use at school had little impact on results, while using a computer at home had a more marked impact on results. To help students at school, computer use should be integrated into curricula and more invested in training teachers to use them for teaching and to help students learn, says the OECD.”

I can attest to that.  Almost every year here in Idaho, the Albertsons Foundation gives our schools new computers.  One year, right before the start of the school year, I was visiting Chubbuck Elementary school to meet one of my daughters teachers.  The teacher was busy trying to set up some of the new computers, she was also complaining about it.  She admitted that she didn’t “understand the things” and tried “not using them at all”.   Over their elementary school years, my daughters, and my son, confirmed that most of the teachers did not allow them to use the donated computers.  My kids learned their computer skills from me and their mother (passed away).   We did so well that I have to go to my now adult kids for help with any computer problems.

The state of Idaho is pushing a new computer system on our schools, they hope to give high school students their own laptops.  I’ve already read stories of how other states have done the same thing, then actually used those laptops to spy on the kids while they where at home.  This new study by the Organization for Economic Cooperation and Development blows holes in the argument by some education officials that pushing more computers in schools is the answer for our country’s educational disaster.  In fact the study proves that kids learn better at home.  It’s too bad most parents don’t have the luxury of home schooling.

Business/Economics, International

What Economic Recovery? China is a paper tiger, reveals $1.65 trillion in debt, get ready for Global Great Depression

A surprise announcement, China says local governments (cities, provinces and autonomous regions) have racked up $1.65 trillion in debt, threatening a new credit crisis.

The revelation came after the Chinese government conducted audits of local governments.  It seems the local governments are playing the same financing games that got the United States (and Europe) into its own credit crisis, which led to one of its worst recessions.

The local governments were using loan after loan on infrastructure projects and real estate development.  The audit by the Chinese government came as national leaders expressed concern over evidence of the skyrocketing number of potentially bad loans being held by Chinese banks (sound familiar?).

Is this the real reason China is dumping U.S. bonds, to raise cash to pay its debts?

Business/Economics, International

Sony shareholders want the heads of executives, record turnout

A record breaking turnout for a Sony shareholders meeting; more than 8,300 people showed up on June 28.

They want to overthrow Sony management.  It’s all because of the huge hack attack that breached the personal data of at least 100 million Sony customers.

One shareholder said the management lacks a sense of crisis.   Gee that seems to be the norm for Japanese officials.

 

Business/Economics, U.S.

What Economic Recovery? U.S. Postal Service slashes retirement for employees, on the verge of insolvency, Congress wants to slash & burn the USPS

The USPS is in real bad shape, much worse than its counterpart Canada Post.

The USPS stopped about $800 million in contributions to its employee retirement plan.  This is an effort to prevent becoming insolvent, over a $5.5 billion employee health plan payment.

Also, USPS Inspector General David Williams, claims they were overcharged $75 billion for the Federal Employees Retirement System plan, and they want Congress to give it back.

On top of that, a bill has been introduced in Congress that would cut billions of dollars from the postal service, by reducing employees (even more than they have) and reducing hours by going to a five day work week (instead of the current six).  The bill is called the Postal Reform Act.  It was introduced by Kalifornian (sic) Darrel Issa.

The USPS lost $8.5 billion in 2010.  The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge.  The problem is that Congress controls the postage they are allowed to charge, and so far Congress has refused to allow postal rates to reflect the actual operating cost of the USPS.

Business/Economics, International, U.S.

No Economic Recovery for the U.S.: Toyota launches new car in India

Toyota announced the premier of a new car, not in the United States, but India!

The new car is a small low priced car called the Etios Liva.  It’s smaller than most Toyota sedans.  The price is about U.S.$9,000.

Toyota also announced that India was becoming its fastest growing car market.  The number of Toyotas sold in India, last year, was double the number sold five years ago.

 

Business/Economics, International, U.S.

No Economic Recovery for the U.S.: Nissan says U.S. no longer target car market, the money is in South America, China, India & Russia

Nissan/Renault announced they plan to expand their global market share by 8% (an increase of about 10 million cars by 2017).  How are they going to do that? Definitely not by selling more cars in the United States.

Nissan/Renault says it will expand sales in China, India and Brazil.  They will boost production in China and India, and build a new factory in Brazil, that will produce 200,000 cars per year.

They will also buy more than 50% stake in Russian car maker Avtovaz.

 

Business/Economics, Idaho, U.S.

Government Incompetence: Home values drop, yet Property Taxes go up?

According to a Fortune article, some counties across the United States are trying to save their budgets by jacking up property taxes.  As a resident of Bannock County, Idaho, I can vouch for that!  Recently Bannock County announced they were jacking up farmland property taxes by at least 90%!!!

The National Association of Counties found that 15% of U.S. counties admitted to arbitrarily raising property taxes, for this year alone.

Real estate analysts say it’s the wrong thing to do, not just ethically, but economically: “Given the situation we’ve been in for the past few years, increasing property taxes is not likely to aid in the short-term recovery of the housing market.” McKay Price, real estate finance analyst Lehigh University

The fear by analysts is that by increasing property taxes homes sales will drop even more. The National Association of Counties says the trend of counties raising property taxes, as property values fall, is increasing.