Category Archives: Business/Economics

Business/Economics, International

What Economic Recovery? EU holds back on second Greek bailout, possible “catastrophic default”, wants Greece to make even more cuts

European Union finance ministers are holding back on another bailout loan for Greece.  They’ve decided that Greece to needs to make even more cuts to social services, and other government spending (which is called “austerity”, something that’s going on in the U.S., but U.S. officials and media have avoided using that term).

The EU decision came even after Greece announce it would sell off government properties, like airports.  In July, Greece is supposed to make a payment on the bailout loan they got last year.

EU finance ministers are worried that Greece will experience a “catastrophic default” if it does not make even harsher cuts in spending, and so are holding back on the second bailout loan.

Last week the International Monetary Fund warned that the global economic crisis had entered the “political phase”, meaning that only governments could save us now.  Not good when you see what’s happening in Europe.

 

Business/Economics, International

What Economic Recovery? Japan posts 2nd worst trade deficit since 2009

For the second month in a row Japan has posted a huge trade deficit.  Not only that, it’s the second highest deficit since January 2009.  Preliminary reports say Japan’s May trade deficit hit $10 billion.

The March 11 natural and nuclear disasters are to blame.  Japanese economist are blaming increasing imports of oil and gas for power generation, since many of Japan’s nuclear plants went off line.  Also, the loss of electricity to run factories, and damage to other factories, resulted in huge reduction of exports.

Japan’s almost total reliance on nuclear power, and the ongoing efforts to deal with a nuclear disaster, coupled with the fatally flawed practice of “just in time” supply system for factories, means this economic situation could continue into next year.

 

Business/Economics, International

Deadly E Coli engineed in Lab, Russians asked to help

“If you look at it genetically…you have to come to the conclusion that this strain was exposed to eight different classes of antibiotics in its creation. This does not happen in the wild where you have a strain that is resistant. This looks like, genetically, that it had to be engineered.”-Mike Adams, NaturalNews.com

European Union scientists have sent the deadly e.coli samples to Russian labs.  At the same time the EU is complaining about Russia’s ban on EU vegetables.  Russia says it’ll lift the ban as soon as the EU can prove their  produce is safe.

 

 

Business/Economics, Opinion, U.S.

U.S. Postal Service facing similar problems as Canada Post, why aren’t U.S. Postal Workers striking?

Canadian postal workers went on limited strike because Canada Post wanted to cut their retirement and wages.  The situation escalated when Canada Post locked out all urban postal workers, in effect laying off 48,000 employees.

Canada Post says they’ve been losing money and need to make drastic cuts in pay and benefits.

Here in the United States a similar situation is happening with the U.S. Postal Service.  The USPS 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.  The result is that the USPS is losing millions and billions of dollars every year. (it’s almost as if Congress wants to put the USPS out of business)

So far thousands of U.S. postal workers have been bought out of their contracts, and even laid off.  What can U.S. postal workers do?  Nothing, because their employment contracts say that if they try to do anything, like go on strike, they automatically lose their job  (no strike clause).   So much for “Life, Liberty and the pursuit of Happiness”.

Business/Economics, Opinion

Global Great Depression: Manufacturing down Demand for oil down Looks like the Main Stream Media Experts Got it Wrong

I remember many main stream oil “experts” saying that oil prices would go up, because while demand in the United States might be down, global demand would be up, because of increased global manufacturing.

Well, it ain’t happening.  The latest economic data show that manufacturing is not only down in the U.S., but is way down in Europe (in fact it’s been falling sharply ever since January 2011).  Even China has cut back on manufacturing.

Why?  Consumer demand is way down, all over the world.  Why?  Consumers (people) don’t have money!  Why?  Because corporations have been cutting back on wages, benefits and even jobs!  Why?  Because the big money lenders have cut way back on the amount of credit they’re willing to give those corporations!

Why would lack of credit hurt those corporations?  Because the reality is that big business runs on credit, not cash.  In fact, in the United States even little businesses need credit just to survive.  Basically the Western Capitalist economy has become a false economy that is run by credit limits rather than actual revenues.

Now, oil speculators guessed wrong and overbid oil and fuel commodities.  Some studies show that there is a great disparity between what the petroleum speculators thought about consumer demand, and the reality of consumer demand.  One graph I saw indicated that oil should be at $70.00 per barrel, based solely on consumer demand.

The speculators thought consumer demand, on a global level, would continue to go up.  The reality is that it’s going down.  It’s going down because of reduced manufacturing, and because enough drivers have indeed cut way back on fuel usage.

The more optimistic analysts will say we’re heading for a “double dip recession”.  This is going to be a depression.  The recession is caused by credit companies cutting businesses off, and individuals off, in many cases for no good reason.  This depression will be because speculators and investors will realize that the capitalist economy is a house of credit cards, and too many credit cards have  been pulled.  Why invest your money into products that people can’t buy?

The amazing thing is that many speculators are operating on credit.  As more and more fail to pay back their short term loans, because they lost money on the stock and commodity markets, they’ll be another credit crisis, this time affecting the big market ‘players’.

The investment markets will dry up, because they’ll be a big drop in the number of ‘players’.  The result will be that not only will corporations be short on credit, they’ll be short on investment money.  Which will lead to more cuts in benefits, wages and jobs, which will lead to even less consumer demand.  In ‘nother words; this is a downward spiral that’s just starting to pick up steam.

Many “experts” have been calling for increased government spending.  They say it’s because corporations obviously don’t have enough money to pull us out of the recession.  These “experts” don’t seem to realize that most governments are broke.  Don’t let those quarterly profit statements fool you, many economists say the books are still being cooked, the reality is that lenders are broke, corporations are broke, and governments are broke.   It’s going to be a long drop to the bottom.

Business/Economics, International

No more mail service in Canada, no more airline service either? Canadian government getting Police State on Worker’s Rights-Oh Canada you suck!

“They did it with no warning. They trapped the public’s mail. It’s unacceptable.”-Denis Lemelin, Canadian Union of Postal Workers

Canada Post shut down all urban mail service today, June 15, after more than a week of strikes by 15,000 postal workers.  Ironically Canada Post officials say the shut down is meant to keep them from losing more money: “The price tag was climbing. It was reaching $100 million. We need to do something to jump start the negotiations.”-Anick Losier, Canada Post spokeswoman

If you’re losing money because workers aren’t at work, how do you make that better by shutting down altogether?  On top of that Union officials say they reached an agreement with Canada Post bosses and were heading back to work, when they were ‘locked out’: “All postal workers were ready to distribute mail across the country.”-Denis Lemelin, Canadian Union of Postal Workers

So from 15,000 striking postal workers to now 48,000 unemployed postal workers because of Canada Post’s lock out.

Add to the postal workers strike the strike by employees of Air Canada.  Today, 3,800 workers walked off the job.  Many travelers are being forced to use other air lines.

What’s the main motivation behind the two huge strikes in Canada?   Retirement benefits: “We’re Canadians. We deserve our pensions. We’ve worked hard for them.”-Loretta Pasqualini, 30 year employee with Air Canada

Air Canada and Canada Post wants to drastically slash worker’s retirement benefits, as well as other things like pay.  Canada Post says they have to cut costs because they’ve been losing money.  They blame the internet (very similar to what’s going on with the U.S. Postal Service).

Air Canada strikers started to leave their picket lines when security/police started taking pictures of them.  Also, the Canadian government is meeting today to come up with a plan that will force workers back to work, and end collective bargaining!

 

Business/Economics, International

Iran offering military aircraft overhauling & rebuilding service

When the United States sells military aircraft to other countries, the deal normally requires that the aircraft undergo major overhaul/rebuild by U.S. companies.  Iran is now offering the same service, for U.S., Russian and Chinese built military aircraft.

The Iran Iraq War of the 1980s, along with increased U.S. sanctions, forced Iran to learn how to rebuild their U.S. made war planes.  There are indications that Iran has even built “new” F-14s to replace those lost in the Iran Iraq War.  Iran soon learned how to overhaul Russian and Chinese aircraft during the 1990s.

Iranian air force officials say they will now offer their overhaul/rebuild know how to other countries: “We are able to overhaul the planes of our neighboring countries for them.  We do have this capability as well.”-Hamidreza Goudini, Islamic Republic of Iran Air Force

Iranian military leaders say the U.S. sanctions are actually good for Iran, because it forced Iran’s industries, military and civilian, to develop much faster than they would have without any sanctions.  As a result Iran is a truly independent nation.

Business/Economics, Idaho

The U.S. IS a Police State: Gold dealers must go through police background check and be fingerprinted

The city of Nampa, Idaho, now requires people who sell precious metals to go through new “licensing” by getting a background check and be fingerprinted by police.  They must also pay a fee for the cost of the new “licensing” procedure.

Nampa officials say the new process will help police with finding stolen property.  Police will start checking dealers for compliance on July 1.

A Boise newspaper gave this police phone number for more info: 208-468-5615

 

 

Business/Economics, International, U.S.

What Economic Recovery? The U.S. was lagging behind Europe even before the Credit Crisis

Before the 2007-08 Credit Crunch Crisis the United States was far behind the European Union, when it came to new job creation.

According to a Fortune article, from 1999 to 2008 the EU created 14 million new jobs, while the U.S. created 8 million.

On top of that, once the economy started down the drain the United States lost more jobs than were lost in the EU.  Percentage wise the EU and U.S. are around 9% unemployment (officially, unofficially the percentages are higher), but when you look at actual numbers the U.S. is leading the way down.  As of December 2010, the difference in job losses, between the EU and U.S., are about 7 million.