Category Archives: Business/Economics

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.

Business/Economics, International, U.S.

Former U.S. official supports my earlier posts, saying Libya is about oil & China

In an earlier posting I warned that the Libyan situation could lead to World War 3.  It’s all about not letting China have Libya’s oil.

Former U.S. Treasury official, Dr. Paul Craig Roberts, admitted to Iranian media, that the so called rebellion in Libya was about oil, and not letting China have it: “In my opinion, what this is about is to eliminate China from the Mediterranean. China has extensive energy investments and construction investments in Libya.”

Roberts says the real reason the United States wants Gaddafi out, is because he refused to join the U.S. created United States African Command, which was created to counter China’s influence in the region: “The U.S. is countering this by organizing the United States African Command (USAC), which Qaddafi refused to join. So that’s the second reason for the Americans to want Qaddafi out.”

Roberts says if NATO succeeds in Libya, Syria and then Iran will be next: “If NATO, which is now the cover for the ‘world community,’ succeeds in overthrowing Qaddafi, the next target will be Syria. Iran is a major target because it is an independent state that is not a puppet of the Western colonialists.”

Roberts warned that this could lead to World War 3.  He compared what the U.S. and U.K. did to Japan before World War 2: “In my opinion, what is going on is comparable to what the U.S. and Britain did to Japan in the 1930s. When they cut Japan off from oil, from rubber, from minerals; that was the origin of World War II in the pacific. And now the Americans and the British are doing the same thing to China.”

There is much more to the interview by Press TV

Business/Economics, International, Technology, U.S.

BP blames rig owner for Gulf of Mexico oil disaster

British Petroleum is suing Transocean for at least $40 billion in damages.  BP claims the worst offshore oil spill in U.S. history was caused by the failure of every safety system on the Deepwater Horizon rig.

BP is also suing Cameron International, claiming they provided a faulty blowout preventer.

Transocean, and Cameron International are suing BP, saying British Petroleum caused the problems, by making decisions based on cost savings, not safety.

Transocean is also suing Cameron International, and Halliburton, as well.

Business/Economics, International, U.S.

More details about extended Toyota factory cuts

On Tuesday Toyota announced more cuts for North American factories, now more cuts in Europe and China.

For Europe Toyota announced that they will cut production, after the already scheduled production halt for the end of this month.  The reason is lack of electronic parts.  Toyota’s Chinese factories will also see production cuts, in some cases production will be down to 30%.  The production cuts, around the world, could last past May.