Category Archives: Business/Economics

Business/Economics, International

Iran says U.S. led military actions cause of World Instability, part of Control though Chaos

“Military buildup does not result in energy security, rather it causes instability in the energy market.”-Massoud Mir-Kazzemi, Iranian Oil Minister

Mir-Kazzemi says the West’s militant approach to world issues is the root cause of instability in the global energy market.  The U.S. does not have an interest in creating “win-win” situations.

Iran suggests that the situation in Libya is all about driving up the price of oil, in the interests of Western oil companies.  It is also true that non-western oil companies are benefiting as well.

Iran is the current President of OPEC.  The Organization of the Petroleum Exporting Countries was created in September 1960. The members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

Business/Economics, International

Bike sales Triple

“I was in Tokyo when the earthquake hit, and everything stopped. Trains stopped, buses were in chaos and cars were jammed. Within that, you could just see bicycles swimming through. Some of our stores stayed open until 4 a.m. to meet the surge in demand.”-Susumu Shimoda, Asahi Co. President

Bicycle sales in Tokyo tripled thanks to the March 11 disasters.  People needed a way to get home after all normal modes of transport got shut down.

For the retailer Asahi, sales surged 200%.  It’s not just the disasters that are pedaling bike sales upward: “In addition to the disorder in the public transportation system, rising gasoline prices are also boosting the demand for bicycles.”-Akinori Sato, Daiwa Securities Capital Markets Company

Bike parts maker Shimano also reported increase in sales, as well as Taiwan bike maker Giant Manufacturing Company.


Business/Economics, International

For the first time since 1959 Cubans can buy & sell homes, get access to Credit

Cuban President Raul Castro announced that Cubans can now sell, and buy homes.  Up ’till now Cubans could only pass on their homes to children, or arrange complicated trades.

Raul Castro warned that Cubans will not be allowed to collected large amounts of property, under the new rules.

Fidel Castro approved of the communist party decision.  The Cuban communist party also agreed to let the general population have access to credit.  Since October 2010 more than 200,000 Cubans have started businesses.

The Cuban communist party also made the revolutionary statement that they will not be involved with the administration of the state government.

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

Former U.S. official says don’t blame China for U.S. economic problems, yet

“If we didn’t import from China, we’d import from somewhere else.”-Henry Paulson, former U.S. Treasury Secretary

Henry Paulson is saying that if U.S. corporations didn’t have China to ship jobs to, they’d ship off U.S. jobs somewhere else.  He, and others, believe that by shipping off U.S. jobs to other countries, it helps to keep inflation down.

Of course it does, because that means less people working which brings down consumer spending which helps keep inflation down.  Inflation traditionally goes up when the economy is good and people spend more money, which is what is happening in China right now.

There is worry that the fast growing inflation in China could spread to the rest of the world.  For those countries whose economies are in trouble it’s not a good thing: “If China has problems, our problems would be more difficult.”-Henry Paulson

 

Business/Economics, International, U.S.

North Dakota flooded, Red River flooding Canada, called “unprecedented”, will affect wheat production

The Red River has flooded North Dakota, now flooding in Manitoba, Canada is being called “unprecedented”.

Emergency Measures Minister, Steve Ashton, says this is one of the worst flood situations Manitoba has seen in 150 years.  The flood is expected to hit Winnipeg by the first of May.

“Flood fighters” in North Dakota are still dealing with the flooding.  Officials there say it’s being caused by ground that is too saturated to handle the snowmelt, along with rain.   The flooding will affect U.S. spring wheat production, and sugar beat production.

In Canada, the flooding will affect wheat and canola production.

It’s not just the Red River that’s flooding.  About 100 North Dakota National Guard personnel are working to shore up the levee along the Sheyenne River.

Flooding in Canada also damaged rail lines used by the Canadian Pacific railways.

Business/Economics, International, U.S.

Credit Rating of United States trashed, kind of

Today, April 18, Standard & Poors downgraded the long term credit rating of the U.S., to a negative rating!

“More than two years after the beginning of the recent crisis, U.S. policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures.”-Nikola Swann, Standard & Poor’s

Standard & Poor’s is one of three major agencies that evaluate government and corporate debt.  The S & P analysts think the division between Democrat and Republican law makers is too far apart for them to make any real progress in dealing with the country’s public debt.

Investors with the Dow Jones reacted by dropping the industrial average by 200 points in the first half hour of trading.

The downgrade of the U.S. follows the downgrading of Ireland’s banks, as well as several other international financing issues.   Even though S & P dropped the U.S. credit rating to “negative”, they still maintain a AAA/A-1+ rating on U.S. sovereign debt.

Long term debt, money borrowed from financial institutions, is debt that will take more than ten years to be paid back.  Sovereign debt refers to government bonds.