Category Archives: Business/Economics

Business/Economics, International, U.S.

Chinese bankers say dump U.S. dollar, buy other currencies

Several banking officials in China, have stated that they Chinese government needs to “reduce” and “diversify” their foreign currency holdings.

Tang Shuangning, chairman of China Everbright Group said China must reduce its excessive foreign exchange reserves and further diversify its holdings.

Zhou Xiaochuan, governor of China’s central bank, said that China’s foreign exchange reserves “exceed our reasonable requirement”.

Xia Bin, a member of the monetary policy committee of the central bank, said China should further diversify its foreign exchange holdings.

According to western media reports, most of China’s foreign currency holdings are in U.S. dollars.  This is part of why the value of the U.S. dollar hasn’t dropped as far as it should have.  But if the Chinese government listens to its bankers, then the dollar could crash.

When the Chinese bankers say China must reduce its current foreign currency holdings they’re talking about U.S. dollars.  They’re saying the Chinese government has too many, based on how bad the U.S. economy is.

When the Chinese bankers say they want the Chinese government to diversify foreign currency holdings, they mean they want to get rid of U.S. dollars and buy money from countries that have good economies, like Russia, India, South Africa and several South American countries.

 

Business/Economics, International, Opinion

Subaru promotes killing of Palestinians

An advertisement by Subaru, in Israel, promotes running over Palestinians with your new Subaru car.  The tag line, in Hebrew, is: “We’ll see who can stand against you”

What makes it worse, is that the scene in the add is real.  The photo was taken last year, when an Israeli settler ran over Palestinian teens who were protesting the settlements.  The driver of the car, David Be’eri, is the director general of Elad, a hard-line property development company.

The advertisement was revealed to the world by Chinese news agency Xinhua.

Business/Economics, International, U.S.

Chinese issue warning over U.S. government debt

“The U.S. economic fundamentals are not strong, plus there is expanding fiscal deficit and declining financial revenue. We are closely tracking the performance of U.S. government bonds and considering a further adjustment based on current conditions.”-Guan Jianzhong, Dagong Global Credit Rating Company

It wasn’t just S & P that reduced the credit rating of the Untied States, Dagong Global Credit Rating company also downgraded the U.S.  That’s important, because it’s a Chinese company, and the Chinese hold most of the U.S. sovereign debt.

Chinese Foreign Ministry spokesman Hong Lei, along with several Chinese bank officials, urged the United States to adopt “responsible policies and measures” to protect the interests of investors (mainly Chinese).  The problem is that if those investors think they’re going to lose money then they’re going to start off loading their U.S. bonds in a big way (they’ve already been selling them off, slowly, for the past three months).


Business/Economics, International

Chile hoping to become major oil hub

Chile is investing more than $400 million into developing petroleum resources at the south end of the country.

Punta Arenas, in the Magallanes region, has become the “Alaskan Gold Rush” of South America.  Labor, oil prospectors and investor’s money is flowing in.  The area is also a tourist destination, for Antarctic trips.

The oil boom has resulted in high inflation in the area, which surprises many tourists.

Chile has been wanting to develop the region’s oil potential for a while, but costs held them back.  With oil prices back over $100 per barrel they are now proceeding full steam ahead.

Business/Economics, International

Food crisis hits Guatemala, needs $26 million in food aid

The Guatemalan government announced they have discovered 15 thousand cases of chronic malnutrition in the country, for this year so far.

Next week the government will reveal a “nutritional risk” plan.  They say the plan follows UN World Health Organization’s guidelines.

The European Union already sent about $9 million last year.  Now Guatemalan officials say they will need about $26 million for this year.

Business/Economics, International, U.S.

Like your online Poker games? The creators are now wanted men, under a new law

“Our 1.2 million members are shocked and outraged. Many players cannot get access to their money. It is a confusing and concerning time for our members.”-John Pappas, executive director of the Poker Players’ Alliance

Players can’t get their money because the online poker company’s bank accounts have been frozen.

Executives from online companies like PokerStars, Full Tilt Poker and Absolute Poker have been indicted by the U.S. Attorney General’s office for bank fraud, money laundering, illegal gambling and other crimes.

Three defendants were arraigned in federal courts in New York and Utah. Eight other defendants remain at large, and Interpol (international police) thinks they’re in Costa Rica, Ireland and the Isle of Man.

Costa Rica is the capitol of online gambling soliciting gamblers in the United States and around the world. Prosecutors are seeking U.S.$3 billion in assets from the three companies and have seized, or frozen, 76 bank accounts in 14 countries.

The Unlawful Internet Gambling Enforcement Act, made it illegal to accept or process payments in connection with “unlawful” Internet gambling, but did not define what “unlawful” gambling was. This is the second time arrests have been made under the new law.

Business/Economics, International

Booming economy in Argentina creates more homelessness

The United Nations released a study which shows that violent evictions in Argentina has increased, despite a booming economy.  The reason is inflation.  Along with a good economy comes inflation, and the cost of housing is leaving thousands of people in Argentina with nowhere to live.

Most of the evictions are from what’s called “informal” housing.  The UN reported that despite Argentina’s attempts to balance the housing issue, demand for “formal” housing still outpaces supply.  This is keeping “formal” housing costs too high for the lower income earners, who turn to “informal” (illegal) forms of housing.

 

Business/Economics, U.S.

Think gas is high now, wait ’till May. Or: How you can predict next month’s gas prices

Unleaded gasoline is traded on the commodity market.  That’s the price you need to watch.  Oil prices only affect gas prices indirectly.  Yes, as oil prices go up so will eventually gas prices, but for a direct cause watch refined unleaded gas prices (if you use Diesel watch Diesel futures prices).

Oil and gas are traded in the commodities markets as “futures”.  That because they are being bought in advance.  Example: Today’s unleaded gas “futures”, being sold in the commodities market, is for May “deliveries”.  So today’s “market” price of gas is actually for gas that will be sold at gas stations in the month of May.

What is today’s market price for gas? As of April 20, the closing price was $3.25 per gallon.  That price is not paid for by the gas station you get your gas from (and evil “speculators” looking to make fast profits).  It’s the price paid by the companies who supply it to the gas stations.  Of course they need to make a profit, so they’re going to charge the gas stations more.  This is why gas station owners, especially the independents, says they make only a few cents profit on every gallon.

Now, to explain how you can predict next month’s gas prices.

On April 18, the average “retail” price of gas at the pump, in the United States, was $3.84.   The April “futures” price was, on March 21, $2.98 per gallon.  That’s almost a full dollar difference.  You can see that’s not much of a profit split between the gas stations, and the gas suppliers.  But you can also predict how much we’re going to be paying in May.  It’s not good.

Current May “futures” are around $3.25 per gallon.  Add about a dollar for profit and you can see that average “retail” price at the pump, in May, is going to be around $4.25.  Ain’t no trick to it, just stop paying attention to the stock markets, and start paying attention to commodity markets.  What ever is the “future” price of gas that day, just add about a dollar to it to estimate what you’ll be paying at the pump in the next month.  This also applies to Diesel prices.  Also, if you live in the evil state of California, your prices are going to be much higher, due to federal, outrageous state, and even outrageous local gas taxes.  You might as well add at least two dollars onto the commodity market price of gas.

Business/Economics, Opinion

Ignore the Stock Market, it’s the Commodities Market that hits you in your wallet

The main stream media puts so much effort into reporting what happens in the stock markets.  Why?  Because the main stream media is controlled by big corporations.  Big corporations get investment money from stocks.  Big corporations use the main stream media to control the stock markets.

So you got money in your 401k, so what?  That’s for retirement, if you don’t lose it all in the next crash.  But on a day to day, affect your wallet right now kind of way, the stock markets don’t mean squat.   When you go to buy fuel for your car, or buy food for your family, or clothes, or anything, it’s the commodity markets you should be paying attention to.

Commodities affect every thing you buy; gas, food, household goods, a new car, new clothes.  Every basic resource is traded in the commodities markets; from oil to trees to metal, to all kinds of crops and livestock.  It could be that the main stream media’s focus on the stock markets is just a way of distracting the general public from the market that is really controlling everyday prices (or the main stream media is just ignorant).

Unless your an executive in a big corporation, or a big time stock holder in corporations, you should ignore the stock markets and start paying attention to the Commodities Markets.