Toyota announced that not only is it halting operations in Japan (due to the Fukushima disaster), but in the United States as well.
This is because most of the parts used in U.S. factories come from Japan, and parts production has come to a halt.
Category Archives: Business/Economics
Official says Japan’s Economic situation now a matter of National Security
NHK interviewed an economic official (analyst?) who said the economic situation in Japan is now a matter of national security, as a result of the Fukushima disaster.
Some Japanese companies have announced plans to re-start operations, but that is contingent upon the ongoing situation with aftershocks, infrastructure issues and nuclear problems.
Toyota announced that its Japanese factories will remain closed for another week. Toyota will not increase production at foreign factories.
Three prefectures are asking for 33,000 temporary homes. The emergency shelters are overwhelmed.
The Bank of Japan continued to flood billions of cash into the finance and investment markets.
Electronics industry analyst are warning that if parts supply from Japan is down for a few weeks it will drastically raise prices for electronic items.
Economic losses for Japan are predicted to hit $200 billion.
Japanese Stock Markets Crashing, Implications for World Markets
Trading in Japan’s stock markets fell for a second day. This is due to announcements that not only are Japan’s industries going to be shut down for longer than thought, but that Japanese consumers are pulling back on spending big time (especially now that they can’t get out because of the radiation).
For those of use dealing with high fuel prices, the fact that Japan’s industry is shut down, and Japan’s consumers are holding back, is resulting in dropping oil prices. The situation in Japan means demand for oil there could drop enough to counter the predicted increase in world demand for oil.
Another reason for the drop in oil prices is that investors are shifting to liquid assets, meaning CASH. This is an indicator that investors feel it is not worth putting their money into stocks or commodities, due to what looks like a looming world economic collapse.
Bank of Japan Floods Economy with Cash, U.S. Bonds could Suffer
Bank of Japan officials are issuing millions in cash, into the Japanese economy. This is due to the earthquake and tsunami destroying a major part of Japan’s infrastructure.
Major Japanese manufacturers have closed, mainly because employees and supplies can not get to the factories. Farm lands have been destroyed by the tsunami.
Japan must focus on financing a major recovery effort, and this will affect U.S. Treasury Bonds. Japan was one of the biggest buyers of U.S. bonds, helping the U.S. government deal with its debt, but now that money will go to rebuilding efforts. Also, Japan might be forced to sell off its existing holdings of U.S. bonds, to help pay for the rebuilding of their country. This will affect interest rates in the United States.
For all those electronic junkies out there, get ready for withdrawal symptoms. Japan is a crucial electronics supplier, but don’t expect anything now. About 40% of lightweight chips, for computers and phones, are supplied by Japan. Objective Analysis, a semiconductor research firm, said “This may cause phenomenal shortages…”. You can bet this will affect prices of goods, and trading in stock markets around the world.
Like your Blue-Ray movies? Forget it, Sony shut down operations at their Blue-Ray plant in Japan, thanks to the disaster.
Were you thinking about getting one of those gas saving Toyota Prius, or Honda Fit? They are made mainly in Japan, and production has been halted.
Speaking of gas. Expect fuel prices to go up, even more. Japan is being forced to turn to other sources of fuel to run electric generators, now that their nuclear plants are going critical. Already two tanker ships, with LNG, were diverted from their original destination in Russia, to Japan.
Japanese Car Makers Shutting Down, forget economic recovery
Japan’s NHK is reporting that Japanese car maker Toyota is extending its plant closers. Other auto manufactures are joining Toyota in closing down operation. These include, Honda and Nissan.
It is not damage to their factories that caused them to shut down, it is the near total destruction of Japans infrastructure. There is no power, and because roads are destroyed employees and supply of parts can not get to the factories.
The near total lose of infrastructure, in the northern half of the state of Honshu, guarantees that there will be no economic recovery for Japan, in the short run. The northern area of Honshu is home to many of Japan’s major factories. This include factories that are for other products, besides automobiles. If they can not operate, they can not sell anything. Don’t forget that the area’s agriculture industry has been wiped out.
The only way Japan can recover quickly is with economic help equal to what the United States provided after World War 2, and the U.S. is not able to do that now.
Economy About to Crash? What Happened to Recovery? 10 Reasons
March 10, 2011.
“I think this is the beginning of something severe.” said chief investment strategist at Windham Financial Services, Paul Mendelsohn. He’s referring to the more than 220 point drop in the DOW, which got little to no mention in national TV news coverage on March 10. There’s a lot of legitimate reasons for investors getting out of the market, not just in the U.S., but world wide. Those reasons also prove that there is no economic recovery.
Reason 1: First time jobless claims, in the U.S., for state benefits went up, more than expected (again).
Reason 2: World wide unemployment is high. Most of the violence around the world involves unemployment. The current crisis in North Africa and the Middle East is due, in part, to high unemployment rates. In 2010 Macedonia took the top spot with an official unemployment rate of 33.8%. How can the global economy recover when there are so many people not making any money to buy things with?
Reason 3: U.S. trade deficit increased (again).
Reason 4: China’s trade deficit increased (a surprise).
Reason 5: Credit ratings for Greece and Spain decreased (again).
Reason 6: Oil prices remain high, and still look to go higher (it’s interesting how analysts predicted the increase in price, without even considering, or knowing, that there would be a “revolutionary” crisis affecting many oil producing countries, or did they, mmmm?)
Reason 7: Food prices are increasing, worldwide. The UN (United Nations) says it does not see any improvement in food supply worldwide. I have read that Chinese wheat farmers will have only enough harvest for subsistence in 2011, nothing left over to sell. Across the world the food supply (“supply” is the key word, because some areas have plenty of crops but they aren’t getting to market) situation is getting worse for a number of reasons, from climate change, to the cost of transportation, to lack of credit, to political/social instability. A new problem adding to food supply issues is that migrant workers are not working. This is due to things like anti-migrant attitudes in the U.S., and the increasing violence in North Africa and the Middle East.
Reason 8: Union busting in the United States. Why should this be considered a factor? Because the goal of union busting is to reduce pay and benefits for employees. If workers are going to be making even less than what they are now, then that’s less they’ll spend while shopping. Gee, isn’t the U.S. economy a “consumer” based economy, which would mean the more a worker spends the better it is for the economy?
Reason 9: Stagnant pay for 90% of U.S. workers. Recently the IRS (Internal Revenue Service) reported that their own study, into the wages and salaries of taxpayers, reveled that 90% of taxpayers had no increase in pay in the past 20 years (when adjusted for inflation). The study also showed that the top 5% of taxpayers saw a 33% increase in earnings over the same period (also adjusted for inflation). Basic economics states that for an economy to do well the money in the system needs to go through as many hands as possible. Clearly the money is staying at the top and not trickling down.
Reason 10: This is probably a very important sign that there is no U.S. economic recovery. The world’s largest bond fund, PIMCO’s Total Return Fund, dumped all its U.S. government bonds, then moved into cash/cash equivalent big time. Why is that important? PIMCO used to be the biggest holder of U.S. bonds. That’s because they trusted that the U.S. government could pay its debts. By selling ALL its U.S. bonds PIMCO is indicating that they don’t think the U.S. government can pay back its debts. PIMCO has actually told other investors to get out of U.S. bonds. Not good. The move into cash is a traditional investor’s way of preparing for the worst. How much did PIMCO move into cash? In January PIMCO’s cash holdings were about 5%, now they are at 23%, a big jump. PIMCO is now selling off mortgage backed securities, this indicates that PIMCO is expecting another drop in the housing market.
There are plenty of other reason to list, you can do your own homework. Some of my sources: Voice of America, Reuters, CNN, Russia Today, The Atlantic. Do your own research, I’m not getting paid for this.
Proof that Congress is Above the Law: Insider Trading. Idaho Senator Crapo Involved
Ever wonder why our Federal government does little, or nothing, when it comes to finance reform, or investment reform? Maybe it’s because they’re getting rich from insider trading. And it’s legal for them, but not for us.
It is against the law to buy and sell stocks based on information that the general public is not privy too, unless you are a member of Congress, or a Congressional Staff member. Can you say legalized corruption? The Wall Street Journal recently reported that congressional staff members are making stock trades that are directly related to their jobs. What a deal! Your job is to create laws and policies, that regulate the investment industry, and as a result you to know all kinds of details that the public would never know and allows you to make trades based on that info! And, you make it illegal for anyone else to do the same!
Senator Mike Crapo (R), Idaho
A staffer, Karen Brown, working for Idaho’s Senator Mike Crapo (R), is reported to have made several trade deals with Bank of America (a leading home fore-closer bank), making her an investment gain of 43%. When asked by the Wall Street Journal about it, Senator Crapo said the trades were made by Mrs. Brown’s husband, and that she would be amending her disclosure forms to show that. The problem with that answer is that, as of October 23rd, Karen Brown’s latest disclosure forms shows her making additional Bank of America stock purchases.
This year, Represenative Brian Baird (D), of Washington, tried to get Congress to pass a bill that would make it illegal for them to do insider trading. In the House of Representatives only 9 members endorsed the bill. In the Senate no one endorsed it. That should tell you that they all need to be fired!
From Russia to Coca Cola; Big Profits. From Coke to Russia; $1 Billion.
Coca-Cola reported a third quarter profit for 2010. Russia being their biggest market, with 30% growth in the past year. Coke’s North American market (Canada, United States and Mexico) had only 2% growth. A very obvious sign, I think, of who has the money to spend.
Coca-Cola has figured out where the money is and has announced that it will invest $1 billion into their Russian operation, over the next five years. Another obvious sign, to me, that the U.S. economy isn’t ’bout to recover soon.
Who loves ya baby? Not the the United States. From Russia with love.
Pocatello, Idaho, Could be Site of New Super VA Clinic
A little history: When I was a student/employee at Idaho State University, in Pocatello, Idaho, there was hope that the State of Idaho would use the old hospital to create a much needed medical school. After all, the local economy was going down, a new owner of the hospital was building a new hospital and vacating the old one, and, the United States is suffering from not enough medical personnel. But, our wise state leaders basically said no (some of those leaders are currently campaigning for re-election).
On to plan B. The owners of the Portneuf Medical Center (PMC) announced that they have been working to convince the Federal Department of Veterans Affairs (VA), to turn the soon to be vacant old hospital (West Campus facility) into a Super VA Outpatient Specialty Clinic.
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PMC West Campus, Pocatello, Idaho.
The new PMC hospital (East Campus facility) is complete, and they will be moving out of the old West Campus. The new East Campus should be open by the middle of 2011.
PMC East Campus, Pocatello, Idaho.
Officials from the cities of Pocatello, and Chubbuck, as well as Bannock County officials, are working to help convince the VA to choose Pocatello. What are the benefits? Because of the War on Terror there is an increasing need for VA clinics and hospitals. The old West Campus hospital would be ready made, no need to build a new facility, and, PMC says they will even leave medical equipment behind. The location would mean that East Idaho, Montana and Wyoming veterans would not have to travel to Salt Lake City, Utah, for treatment. Idaho State University, located right next to the West Campus, would be involved because they are already getting Department of Defense grants for several veterans programs.
A recent meeting with officials in Washington D.C. revealed that funding has become an issue, even with the fact that the VA wouldn’t have to build anything. I think the residents of Idaho need to get behind this plan, especially since the Idaho National Guard (including members from Montana and Oregon) is currently serving another War on Terror tour of duty.
Beat the Food Crisis, Go Native. Free Seeds?
Our civilized society has taken too many things for granted, like where our food comes from. Mass produced by big farms, using lots of chemicals, and even genetic modification. Those chemicals and modifications are supposed to help our traditional crops produce more, and handle extreme weather.
Mother Nature already has plants that can do that, they’re called Native Plants, and you can eat them (not all of them, of course). How do you know which native plants you can eat? You can check your local bookstore, or public library, for local books on the subject. You can check the internet, under native plants and whatever state you live in.
Can We Eat It? City Creek, Pocatello, Idaho.
In Idaho an organization has formed that is pushing for the use of native plants in landscaping (because they can save water and are fire resistant), and native plants you can eat. The Boise based Idaho Native Plant Society even sponsors plant sales and seed exchanges.
Don’t think of snatching some native plants out of the wild, believe it or not, there is such a thing as plant poaching.
There’s a seed bank that has spent decades searching the world for food plants that do well in Idaho’s climate. They have lots of high altitude crops, Siberian Tomatoes, and Tomatoes developed by the University of Idaho (I think the company used to be in Idaho, but relocated to Arizona. You can still order the seeds).
Want to start a garden but don’t have the money? Texas based The Dinner Garden gives away seeds. They admit that they are backlogged trying to meet requests for seeds. Their website says they have a partner in Kimberly, Idaho.