Category Archives: Business/Economics

Business/Economics, International, U.S.

Obama’s order to release U.S. oil reserves is BS, 27 other countries to release oil reserves is also BS, blame war on Libya

All indicators are that global demand for oil is going down, despite the oil “experts” continuing to say it’s going up.  The fact that oil and gas prices are going down is proof of the decrease in demand.  One study says oil should be at $70.00, based on actual consumer demand.

Yet President Barack Obama, and 27 other members of the International Energy Agency, are ordering the release of their respective strategic oil reserves.

The official reason the Obama administration gives, is to ease the supply problems with oil from Libya.  First off, the U.S. is a minor user of oil from Libya, secondly the U.S. is partly to blame for the oil supply problems in Libya!

The U.S. uses about 1% of oil produced in Libya, according to a USA Today report.  The U.S. has been supporting rebels who destroyed Chinese run oil fields in Libya, according to the Chinese government.

As I’m writing this U.S. crude oil prices are at $91.00 per barrel.  Why release U.S. oil reserves now, and not back when it was more than $100.00 per barrel?

Here something interesting; the U.S. Department of Energy reports that the strategic oil reserves are at record highs, 727 million barrels to be exact.  Why would that be? Because demand is down?

The IEA (not to be confused with the United Nations IAEA) is made up of 28 oil consuming countries, including the United States.  The decision of the IEA to release 60 million barrels of oil reserves, is to benefit the countries that get most of their oil from Libya, ie Europe.  One report showed that almost all of Italy’s oil comes from Libya.

In other words, Obama’s decision to release U.S. strategic oil reserves is for the benefit of the Europeans, not the United States!

It is also totally because of the U.S. supported European war on Libya, the aggressors (U.S. and Europe) brought it upon themselves.

 

 

 

Business/Economics, Idaho, U.S.

Idaho Personal Income report misleading, wages & construction down again

Idaho media reporting an increase in “personal income”.  The problem is that “personal income”, as reported by the U.S. Bureau of Economic Analysis, includes things the average person does not consider “personal income”.

What government officials consider “personal income” includes unemployment benefits, business investments, business profits, farm profits, construction profits and government payments, besides individual wages.

The report for the first quarter of 2011 shows an increase.  But that’s due mainly to business profits, investment returns and farm profits.  When you look at wages for workers, it went down.

Also, income from construction in Idaho also fell, for the 3rd straight quarter.

If your wondering how businesses keep showing a profit, it’s because they’ve been laying workers off, or not hiring when they should!

Business/Economics, International

What Economic Recovery? Credit Crisis hits SAAB, can’t pay employees, shuts factory

A few days ago U.S. Federal Reserve boss Ben Bernanke said one of the factors in deciding the economy was worse then they thought, was continuing financing problems (credit crisis).  Swedish car maker SAAB, just announced they are the latest victims of the credit crisis.

SAAB can not get short term loans, which is what it uses to pay its employees.  Not only is this a bad sign of the economy, but a reminder that “Western” corporations run on debt, not revenues.

This inability to pay its employees comes after SAAB closed one of its factories in Trollhatten, due to lack of parts (thank Japan’s failed “just in time” supply system).

SAAB is trying to get loans from Chinese companies, they’re waiting for government approval.

Business/Economics, Idaho, U.S.

What Economic Recovery? Bannock County, Idaho, jacks up property taxes on farmers, by 90%

“We’re trying desperately to hold to these farms and we are paying our share. And if we haven’t been paying our share, it’s because assessors haven’t been doing their job.”-Grant Olson, wheat farmer

In a surprise announcement, Bannock County officials said they messed up and failed to properly assess farmland.  They will now hit farmers with a property tax bill that’s at least 90% higher than last year!

Grant Olsen, a farmer in Robin, Idaho, says his tax bill has gone up year after year.  Olsen is highly suspicious of the county’s reasons: “They say the reassessment hasn’t been done for 10 years, and now they have to obey the law. Why haven’t they been obeying the law?”

As a resident in Bannock County I can say that property taxes have gone up yearly, even with the decline in residential property prices.  When I’ve complained to the assessor they’ve blamed increased fees due to the passage of school levees.  That’s part of the problem, but the specific “property” tax has gone up as well.

County officials told the public that they would provide a better explanation of why they have to increase farmland property tax so much.  Bannock County has a reputation for having higher than average property taxes.


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

What Economic Recovery? Idaho can’t comply with No Child Left Behind, no money

Idaho Superintendent of Public Instruction, Tom Luna says No Child Left Behind (aka Adequate Yearly Progress, AYP) is actually stopping states from improving student’s academic performance: “The law has become a stumbling block to continued improvement in raising student achievement.”

The main reason that AYP is a stumbling block is that states are required to pay for efforts to comply with higher standards set by the Federal program.  Luna officially told the U.S. Department of Education that Idaho will not comply with AYP standards, until it is revised to help states do so.  Idaho, among many other states, does not have the funding to meet AYP standards: “We don’t have the luxury of time and resources to continue on with the federal law that should have been rewritten four years ago.”

The problem is that Idaho’s education system is already lagging behind most of the United States, in performance and funding.  So even if AYP is revised it’s highly unlikely that Idaho can comply.

Business/Economics, Opinion, U.S.

Despite bad economy 1 in 3 U.S. workers hate their job so much they want to quit, careers offer diminishing returns

“From the employee viewpoint, not only has the deal been redefined, in many cases, the new deal is not being delivered as promised.”-Mercer

In a report from human resource company Mercer, one in three workers in the United States hate their job so much they would rather quit and take their chances being unemployed.

One of my daughters works for a local Home Depot store, and they have employees quitting almost weekly.  And the local job market really sucks.  By the way, she really likes working at the local Home Depot and thinks there are other issues regarding those employees who quit.

But I’ve been amazed at how many people quit their jobs in these bad times, and the times are getting worse.

According to Mercer, the main reason for employees hating their jobs, is actually part of our economic problem; decreasing pay/benefits, cuts in work hours and the realization that their jobs are dead end careers.  When adjusted for inflation, the average U.S. worker is making $400 a year less than in 1988.  Why bust your butt for diminishing returns?

 

Business/Economics, International, U.S.

What Economic Recovery? United Nations says government cut backs making things worse

“Austerity measures in response to high government debt in some advanced economies, such as Greece and Spain, are not only threatening public sector employment and social expenditure, but also making the recovery more uncertain and fragile.”-UN Department of Economic and Social Affairs

The UN is warning that cuts in government spending will only make the global economy worse.  This comes a week after the International Monetary Fund said the economic crisis was now in the political phase, meaning the private sector had failed.

Interestingly the UN is also blaming the bad economy on global lenders like the IMF.

 

Business/Economics, International, Opinion

What Economic Recovery? Britain wants the European Union to collapse

Discussions within the U.K. Parliament reveal that British leaders are hoping for a quick end to the European Union via a Greek collapse.

Former Foreign Secretary Jack Straw said, concerning the Euro: “…is going to collapse…” and “Is it not better that this happens quickly rather than a slow death?”

Current Financial Secretary to the Treasury, Mark Hoban said: “I am not going to comment on whether the eurozone will remain intact or not. Clearly, this crisis demonstrates the huge strain the eurozone in under. That is why it was right for us to stay out of the eurozone.”

Current Prime Minister, David Cameron said: “We were not involved in the first bailout of Greece; we don’t believe the European financial mechanism should be used in any way.”

Conservative Member of Parliament, Anne Main said Greece “…should be allowed to depart peacefully from the eurozone.”

Current Chief Secretary to the Treasury, Danny Alexander, said the U.K. would not help Greece:  “The package for Greece that is already in place is a eurozone package with the IMF.  It’s the eurozone that is taking forward discussions now about the next stage of dealing with Greece’s substantial problems.  There’s simply no proposition on the table for the U.K. to contribute beyond that IMF involvement and I don’t expect there to be one.”

When you take what the British leaders are saying, along with the International Monetary Fund’s warnings that the default of Greece will lead to a collapse of European Union, then it definitely looks like the British want Greece to default.  Historically the British never really liked the concept of the European Union.

 

 

Business/Economics, International, U.S.

Global Great Depression: IMF warns of global collaspe if Europe goes down the economic toilet

“Given the euro area’s role in the global economy, success in addressing the sovereign debt crisis and raising growth has a significant impact elsewhere.”-IMF report

June 21, a new report by the International Monetary Fund says European economic collapse could bring on a Global Great Depression.

All international finance eyes are focused on what happens with Greece.  There could be a domino effect if Greece defaults.  A check of history will show that a similar situation happened prior to the U.S. Stock Market Crash of 1929, which eventually led to the Great Depression in the U.S.

Here’s a little reminder: Germany was forced to pay the United Kingdom and France (and some other countries) huge reperations after losing the First World War.  The U.K. and France owed the United States big time money for saving their butts during the war.  U.S. corporations were banking on that money from U.K. and France, and actually ran their businesses on debt thinking ‘no problem the French and British will pay up’  (it was called “The Roaring Twenties”).  Well, the victors of the First World War made things so bad for Germany there was no way they could make the reparations payments, so they defaulted.  As a result, the U.K. and France defaulted on their payments to the United States.  As a result, U.S. corporations defaulted leading to the Crash of ’29.

Basically the IMF is saying we are in a similar situation with the current debt crisis in Europe.

Business/Economics, U.S.

Who the Government works for: Supreme Court screws 1.5 million Walmart employees

The United States Supreme Court stopped a class action lawsuit against Walmart.  A sexual discrimination claim could have affected 1.5 million employees.

In a 5 to 4 ruling the Supreme Court ruled there was not enough evidence to proceed with a lawsuit.  Originally Walmart was faced with thousands of smaller lawsuits, but lower courts agreed to merge the claims into one big class action lawsuit.

The main evidence of discrimination against women is the fact that 70% of Walmart hourly paid employees are women, yet less than 1/3 of salaried management positions are held by women.

Justice Ruth Ginsburg offered encouragement to the plaintiffs: “Walmart’s delegation of discretion over pay and promotions is a policy uniform throughout all stores…” and that plaintiffs should work to provide overwhelming proof of such.

Early reports said the Supreme Court voted against the lawsuit because chances were good Walmart would lose, and it would cost Walmart tens of millions in settlements.  Walmart has a track record of losing lawsuits, not just in the United States, but around the world.

In the words of Telly Savalis: “Who loves ya baby?”  It’s not your government that’s for sure.