Category Archives: Business/Economics

Business/Economics, U.S.

What Economic Recovery? Beige Book shows New York, Philly, Atlanta and Chicago Slow Down

The big bank known as Federal Reserve released its “Beige Book” of economic conditions (aka Summary of Commentary on Current Economic Conditions).  Four districts of the United States show a slow down in economic activity.

Activity in the New York (district 2), Philadelphia (district 3), Atlanta (district 6) and Chicago (district 7) regions are slowing down.  The Federal Reserve blames the down turn on everything from the March 11 disasters in Japan, to a weak housing market, to increasing food and energy prices.

Their are 12 Federal Reserve districts in the United States.  The Beige Book will be presented at a Federal Reserve meeting on June 21.

Business/Economics, U.S.

What Economic Recovery? Diesel Fuel usage new Canary in the Coal Mine, Recovery is Dead

“I was optimistic we’d have a better month, but it looks now like the recovery ended last summer, which means we’re just idling.”-Ed Leamer, University California Los Angeles economist

If you use diesel fuel you might have noticed that the price has been slowly going down.  That’s good for those of use who pay at the pump, but for the economy as a whole it’s a Canary in the Coal Mine of worse to come for our economy.

Diesel fuel prices are dropping because of a huge drop in demand.  That drop has been ongoing since last year, and in the past four months has been picking up speed.

Most users of diesel are transportation industries.  They ship products all over the country, but shipments of new products have dropped so much in eight of the past 12 months, that trucks, ships and aircraft are sitting idle.

According to the Ceridian-UCLA Pulse of Commerce Index, the drop in diesel fuel demand is proof any economic recovery that might have been, is over.

Ed Leamer says the two main reasons demand is down: Low wages/lack of jobs and high debt.  Notice they’re the two things our elected officials, across the board from local leaders to the White House, can’t seem to deal with.

Leamer also says such a drop in demand, in the U.S., is a first in world history: “U.S. demand has been such a key for the rest of the world for so long. This is sort of uncharted territory.”

 

 

Business/Economics, International

Government Incompetence: Greece has been paying thousands of dead people money

The insolvent government of Greece has just discovered that 4,500 dead people have been receiving government retirement pay, for years.

The government is now investigating whether there was a slip up on their side, or the families never filed notifications of death.  At least $23 million was paid out to dead people.

The Greek government is also investigating another 9,000 possible dead recipients of retirement money.

Business/Economics, U.S.

What Economic Recovery? U.S. unemployment much higher than officially reported, Corporate America needs to create 500,000 jobs EVERY month

The official U.S. unemployment rate is currently 9.1%, but that does not count those unemployed who dropped off the official lists, or those who are discouraged job seekers.

Fadhel Kaboub, an economics professor at Denison University in Ohio, says when you take into account people who are no longer counted by official sources, the actual unemployment rate is 17%.

The U.S. Department of Labor said 14 million people are officially unemployed, but Kaboub believes it’s actually 20-23 million.

He said the reason the stock markets reacted badly to the May job creation numbers, is because the only way there can be a recovery is if Corporate America creates 500,000 new jobs every month.  That has yet to happen, and as demonstrated by the May numbers, jobs creation is actually going down.

 

Business/Economics, Idaho

What Economic Recovery? Pocatello city budget now cutting Muscle

The city of Pocatello, in eastern Idaho, is trying to figure out how to cut $2 million from its budget.  The mayor says they’ve already trimmed all the fat: “What fat there was we’ve cut and now we’re starting to cut into muscle.”-Brian Blad, Pocatello Mayor

So far city officials have decided to cut $150,000 from the police force.  More meetings are scheduled to figure out what else to cut.

Local media reports say the city is hoping to see an increase in property tax revenues.  That’s highly unlikely since Idaho leads the U.S. in falling home prices.  Officials might be overly optimistic, or maybe they’re planing to increase taxes?

Business/Economics, International

Corporate Incompetence: Strange Japanese Rules

Women in Japan were asked to post online, strange rules that their employers have.

“In our company, women are forbidden from putting on makeup. On top of that, the only underwear we are allowed to wear is white or beige. We are also not allowed to date guys under 23. If they catch us doing so, they cut our monthly pay and ask us to write and submit an official self-reflection letter. When we eventually find a marriage partner, we have to introduce him to the boss and ask for his blessings.”

“When we get to work, we are required to greet the boss’ dog. This should happen before we greet our colleagues or even the boss himself. In cases where someone has forgotten, they are given a lecture on morals by the boss.”

“Every morning when we arrive at the office, the first thing we are supposed to do is greet our company’s ‘special’ female coworker. We never know why we are forced to do so, because her status is not above ours. In fact, we don’t know what her status is. We are also not allowed to leave before her. If this happens, we are called to publicly apologize in front of everyone at work.”

“Our boss has a bell on his desk, which he uses to summon us. He never pronounces our names. When the bell rings, we know what to ask: “Coffee or tea, sir?” His desk is just two meters away from ours. It’s not that far, but maybe he doesn’t like calling people by their names.”

“When I was working at a department store as an elevator girl, we all had to keep our possessions in a bag that was specifically for work. While this is common for some types of jobs, what was strange in our case was that full time employees had a Chanel bag, contract employees had a Louis Vuitton, and part-timers had no-brand bags. That was the unspoken rule. Also, when we are in the restroom, we can’t leave before any full time employees do. In fact, we have to hold the door for them.”

It makes you wonder why they don’t revolt?


Business/Economics, International, U.S.

What Economic Recovery? Mazda will stop U.S. production, moving to Japan & Mexico

Mazda announced that it will stop production of its Mazda6, at a Ford plant in Michigan.  Mazda will move production of the Mazda6 back to Japan.

The Michigan plant is a joint venture between Ford and Mazda, known as AutoAlliance International.  The joint venture has been losing money ever since the ‘credit crisis’.

Mazda also plans to build cars in Mexico, mainly for the booming Latin American car market.  Some Mexican built Mazdas will be sold in the United States.  Rumors are that Mazda wants out of its joint venture with Ford.

 

 

 

Business/Economics, International, U.S.

Global Food Crisis: Deadly E-coli hits United States, FDA can’t inspect for new strain

“We usually consider that a rare complication, and to have 470 is absolutely extraordinary. This is a new public health problem.”-Robert Tauxe, CDC

Center for Disease Control believes three people in the U.S. have picked up the latest deadliest form of e-coli.  They had returned from Germany.

Michael Osterholm, at the University of Minnesota, says the e-coli outbreak in Europe is the deadliest on record.  1,624 cases are being reported by hospitals, but the actual number of infected people could be ten times higher.

Chinese scientist, working with German scientist, says the new e-coli strain is not only “super toxic”, but is resistant to treatment.  The strain is similar to the 0104:H4 strain, except for its resistance to antibiotics, which is why scientists think this is a new strain.

Earlier the Food and Drug Administration said it was inspecting vegetables from Europe for e-coli, but it’s been reveled that the FDA can not test for the new strain.  The FDA tests for e-coli 0157 strain (which is also deadly).