Category Archives: Business/Economics

Business/Economics, International

Britain Enacts Huge Budget Cuts, Will the British People Rise Up Like the French?

I was watching a debate on the French strikes, and a British commentator said that what was going on in France would never happen in Britain, because there are laws against such demonstrations.  I wounder, after the British government will start the deepest cuts in 60 years?

LONDON, ENGLAND - JUNE 22: Protestors dressed as Prime Minister David Cameron and Deputy Prime Minister Nick Clegg demonstrate against the budget in Parliament Square on June 22, 2010 in London, England. The Chancellor has announced a raft of tax increases and spending cuts to deal with the United Kingdom's growing debt. (Photo by Peter Macdiarmid/Getty Images)

By 2015, the cuts would amount to about 130 billion U.S. dollars.  490,000 government jobs would be cut over 4 years.  The retirement age would be raised to 66, four years sooner than first planned.  Even the rents on subsidized housing will be increased.  Also, the Value Added Tax (a type of sales tax) will increase to 20% (don’t go shopping there).  However, the British government plans to increase spending on things like cracking down on tax fraud, and anti-terror security.  Officials also claim that Health Care Services will not be cut, and that school funding will kept in “…real terms” every year.

A boy holds a poster at a public services protest during the second day of the Liberal Democrat conference in Liverpool, northern England,September 19, 2010.REUTERS/Nigel Roddis (BRITAIN)

But what will the People think?  There has already been past protests about the cuts,  as far back as June, so i don’t think that British commentator knows what he’s talking about.  According to al Jazeera, small protests have already started.

Business/Economics, International

French Senate Votes Friday, Travellers Walk to Airports, Lady Gaga Stays Home

Reuters is reporting that the French Senate will vote on a proposed increase to the retirement age, on Friday, October 22nd.  Originally the Senate was to vote Thursday, October 21st.  That proposal has sparked on again, off again strikes.  But the latest strikes have gone on for more than a week now, and involve everyone from teenagers to retirees.

To clarify the retirement age in France, because there has been some misreporting going on by the main stream media.  The current retirement age in France is 60, but that is not for full retirement benefits.  Full retirement is 65.  The proposal, of which the main elements have been approved by the French Parliament, would raise the age of partial retirement from 60 to 62, and full retirement from 65 to 67.

Passengers walk past a striking worker blockade as they arrive at the Marseille-Provence airport October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. REUTERS/Jean-Paul Pelissier (FRANCE - Tags: EMPLOYMENT BUSINESS POLITICS CIVIL UNREST TRANSPORT)

People using air transport had to walk to the airports because public transportation has been shut down.  Train workers joined the strike today, by forming blockades, and burning railroad ties.

Striking railway workers burn railway tracks during a demonstration at the old port of Marseille October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. REUTERS/Jean-Paul Pelissier (FRANCE - Tags: EMPLOYMENT BUSINESS POLITICS CIVIL UNREST)

The French Interior Ministry said that on Tuesday, October 19th, 1.1 million people went on strike across France. Union officials claim it was 3.5 million. Either way that’s a lot, when was the last time you saw even 1 million people protest on a single day in the United States? Even the Million Man March fell short.

ATTENTION EDITORS : FRENCH LAW REQUIRES THAT THE FACES OF MINORS ARE MASKED IN PUBLICATIONS WITHIN FRANCE. High school students shout slogans as they attend a demonstration over pension reform with private and public sector workers in Bordeaux, southwestern France, October 21, 2010. France faced another day of strikes and confrontation on its streets on Thursday as the government grappled to restore fuel supply with senators just a few days away from voting on pension reform. The banner reads High school students don't beat a retreat . REUTERS/Regis Duvignau (FRANCE - Tags: CIVIL UNREST POLITICS EMPLOYMENT BUSINESS EDUCATION)

French high school students continue to protest.  Victor Colombani, a 16-year-old student and President of the National Union of Students explained; “Extending the age of retirement means reducing almost a million jobs for young people. We call for a fairer reform that takes into account years of study and periods of forced unemployment for young people.”

The Video Music Awards 2010 Arrivals held at The Nokia Theatre LA Live in Los Angeles, California in September 12th, 2010. Lady Gaga Fame Pictures, Inc

The strikes have also forced entertainer Lady Gaga to cancel her French tour. According to her website; “Unfortunately, as there is no certainty that the trucks can make it to the Bercy for this weekend’s shows, the Lady Gaga performances are now postponed.”

Business/Economics, International, U.S.

Venezuela & Iran Working to Create New, New World Order

On Wednesday, October 20th, Iranian President Mahmoud Ahmadinejad, and Venezuelan President Hugo Chavez, announced they had signed several energy deals, and, that they are working towards a new world order of their own.   Ahmadinejad stated; “We are united and determined to end the current injustice which dominates the world and replace it with a new world order based on justice.”

Iranian President Mahmoud Ahmadinejad embraces Venezuela's President Hugo Chavez during a welcoming ceremony for Chavez in Tehran, Iran on October 19, 2010. UPI/Maryam Rahmanian Photo via Newscom

Ahmadinejad also said; “If one day, my brother Mr Chavez and I and a few other people were once alone in the world, today we have a long line of revolutionary officials and people standing alongside each other. The enemies of our nations will go one day. This is the promise of God and the promise of God will definitely be fulfilled.”

Iranian President Mahmoud Ahmadinejad and Venezuela's President Hugo Chavez during a welcoming ceremony for Chavez in Tehran, Iran on October 19, 2010. UPI/Maryam Rahmanian Photo via Newscom

An example of how ignorant our government, and U.S. political advisers, have gotten, foreign policy analyst, Rick Casper said this deal between Iran and Venezuela was proof that U.S. sanctions are working.  What an idiot!  He also said; “There is no other country willing to do business with Iran except Venezuela.” Idiot!  Who do you think is building Iran’s nuclear power plant?  Russia!  Iran also has deals with China, and many Central Asian countries, as well as European countries.  This is the level of intelligence of U.S. foreign policy analysts?

Business/Economics, International, U.S.

Venezuela Building Nuclear Plant, says Yankee Empire Behind World Aggression

It’s interesting how our government, and main stream media, is so rabid about going after Iran’s nuclear power ambitions.   And now, in the back yard of the United States, Venezuela has signed a deal with Russia to build a nuclear reactor. I’m not seeing any rabid war mongering coming from our government, or media, about it.  Mmmm.  Here’s what U.S. State Department spokesman Philip Crowley had to say about it; “It is certainly a right of any country to pursue civilian nuclear energy, but with that right comes responsibilities,”.  Not as tough sounding as with Iran.

ITAR-TASS: MOSCOW, RUSSIA. OCTOBER 15, 2010. Russian president Dmitry Medvedev, Venezuela's president Hugo Chavez (R-L) sign agreements at the Kremlin. (Photo ITAR-TASS/ Mikhail Klimentyev) Photo via Newscom

Hugo Chavez, President of Venezuela, is traveling the world.  His first stop, Russia, where he gave a speech denouncing the United States, and expressing sorrow for the fall of the Soviet Union.  The nuclear plant deal was part of a larger economic deal with Russia.  Another part of the deal involves the sale of Venezuela’s stake in four oil refineries that are co-owned by a German company.   Other petroleum deals with Russia involve the sale of Venezuelan assets co-owned by British Petroleum (BP, remember those guys).  Gee, that doesn’t sound like a communist thing to do?   Chavez stated; “I’m a socialist, but also a good merchant.”

KIEV, UKRAINE. OCTOBER 18, 2010. Venezuela's President Hugo Chavez (C) touring the Antonov aircraft assembly plant in Kyiv, accompanied by its President and General Designer Dmitry Kiva (L). Photo ITAR-TASS / Vladimir Sindeyev Photo via Newscom

Chavez also stopped in Ukraine, and had a tour of the famous Antonov aircraft factory.

In a Russia Today interview, President Chavez blamed the current violent state of the world on the “…Yankee Empire.” (I wounder how many U.S. citizens know that ‘Yankee’ refers to them).  Russian President Medvedev said Russia and Venezuela are working to create a world order not dependent on the United States; “…a world order where our future would not depend on the will, desire, or mood of some country, but on joint efforts of the international community, and, indeed, internal development.”

Business/Economics, International, U.S.

French Strikers Blockade Airports. Don’t Get It?

The anti-government strikes continue in France. Strikers are now blockading airports.  French police opened access to most oil depots, although strikers managed to re-blockade one oil depot.  Liquid Natural Gas workers are now refusing to unload ships carrying LNG.  The French Government is saying they have things under control, and that strikers, like the high school students, will stop, because of an upcoming school holiday.

French striking workers block the Charles-de-Gaulle airport in Roissy near Paris October 20, 2010. Striking public sector workers disrupted travel across France as trade unions kept up their resistance on Wednesday to an unpopular pension reform due for a final vote in the Senate this week. REUTERS/Gonzalo Fuentes (FRANCE - Tags: CIVIL UNREST EMPLOYMENT BUSINESS TRANSPORT POLITICS)

Why is the retirement age increase so important to French workers? Basically because it was a long hard fight to get a retirement system, and now they see this as baby steps to taking it away.  It is a quality of life issue for the French.    Here’s what retired French policeman, Michel Fourgues, had to say: “I am a retired police officer, and we have known times when we earned very little money, but it did not bother anyone. Today we have a pension, we deserve one, and we wish the same thing for the younger generation.”

Demonstrators march through the streets to protest the French government's attempt to raise the minimum retirement age in Paris on October 19, 2010. Trade unions and students have staged nationwide street marches and disruptive strikes throughout France over the last few weeks. UPI/David Silpa Photo via Newscom

Another issue is jobs.  France has an unemployment rate of almost 25% for workers under 25 years of age.  So, naturally the youth feel threatened by an increase in the retirement age.  One protester’s sign read: “Grandpa took my job.”

A demonstrator marches through the streets to protest the French government's attempt to raise the minimum retirement age in Paris on October 19, 2010. Trade unions and students have staged nationwide street marches and disruptive strikes throughout France over the last few weeks. UPI/David Silpa Photo via Newscom

I don’t get it. People in the United States are facing increasing retirement age, yet no one seems to care as much as the French care.  Isn’t quality of life important?  You really want to work most of your life at jobs you hate, and, compete with your own children, or even your grand children?  I don’t get it.

Business/Economics, U.S.

Wells Fargo Making Profits, How? Magic?

Another big bank involved in foreclosing on homeowners, is reporting record profits.

OAKLAND, CA - JULY 22: A customer uses an ATM at a Wells Fargo Bank office July 22, 2009 in Oakland, California. Wells Fargo reported an 81 percent increase in second quarter profits with earnings of $2.58 billion, or 57 cents per share compared to $1.75 billion, or 53 cents per share one year ago. (Photo by Justin Sullivan/Getty Images)

According to the Mercury News, Wells Fargo posted a $3.3 billion profit for the 3rd quarter.  That’s 3.1% higher than last year, and yet, the bank’s actual revenues were down from the previous year, by 7.1%.  How do you get profits that are up from the previous year, when your revenues are down from the previous year?

Time for some math.  The formula for figuring profits is:

Profit = Revenue – Costs, or, Revenue – Costs = Profit

However you look at it, basically you can not have an increase in profits with  decreased revenue.  Unless you’ve somehow come up with a way of eliminating your costs, or some other accounting Magic?  (take some economics or accounting courses and you will find lots of Magic being used)

As far as foreclosures go; John Stumpf, Wells Fargo’s chairman and chief executive, says they are following the rules.

SAN FRANCISCO - APRIL 27: A Wells Fargo security guard attempts to move a protestor from the front of the building during a demonstration outside of the Wells Fargo Bank shareholders meeting April 27, 2010 in San Francisco, California. Hundreds of people held a demonstration outside of the Wells Fargo Bank shareholders meeting to protest Wells Fargo's alleged involvement in the financial collapse and excessive CEO and executive bonuses. (Photo by Justin Sullivan/Getty Images)

In a CNN/Fortune article Wells Fargo tries to make themselves look like the lesser evil in the housing foreclosure conspiracy.   Wells Fargo claims they are foreclosing only 1 in 12 mortgages (oh that’s not a lot?), compared to Bank of America with 1 in 7 mortgages being foreclosed.

CHICAGO - APRIL 09: A Wells Fargo sign hangs on the door of a Wells Fargo home mortgage office on April 9, 2009 in Chicago, Illinois. Wells Fargo & Co said it expects to post a record $3 billion first-quarter profit exceeding analysts� expectations. (Photo by Scott Olson/Getty Images)

Business/Economics, U.S.

Housing Start Numbers BS say Contractors

According to a CNN report, despite housing construction start numbers being up, contractors says actual construction is flat.

The official Federal government housing start numbers only indicate the number of construction permits approved by local governments.  Contractors say that banks are refusing to finance most new construction.

NORTH LAUDERDALE, FL - AUGUST 11: A building permit is seen on the wall as workers refurbish a home that Habitat for Humanity bought in a foreclosure sale on August 11, 2010 in North Lauderdale, Florida. In the nationwide program the organization purchases bank-owned homes and turns them into safe, decent, affordable place to live. (Photo by Joe Raedle/Getty Images)

“Remember a couple of weeks ago when they came out and said guess what the recession was over? That rumble you heard was the construction industry laughing their ‘friggin’ brains out,” says contractor Paul Kinney, owner of a top 500 home building company in the United States.  Another problem is that some U.S. banks agree to fund a project, then, as the project is about to start, they cancel the funding.

Contractors are saying that most big construction projects that do get built, are being built with foreign money.

Business/Economics, U.S.

Bank of America in the Hole, Because of Debit Cards?

Today Bank of America, one of the big banks behind the housing foreclosure fiasco, announced a $7.3 billion dollar loss for the 3rd quarter.

Was it due to the foreclosure mess?  B of A is blaming the loss on the new limits on debit card fees.  Debit cards?  Are they sure limits on debit card fees caused them a $7.3 billion loss?

A customer stands at a Bank of America ATM machine in downtown Los Angeles October 8, 2010. Bank of America Corp expanded on Friday its suspension of foreclosures to include all 50 U.S. states as anger grows at how lenders have prepared documents to support evictions. The U.S. Senate Banking Committee will hold hearings after next month's elections to look into allegations that the nation's largest lenders have improperly foreclosed on struggling borrowers. REUTERS/Fred Prouser (UNITED STATES - Tags: BUSINESS)

According to a CNN article, if B of A throws out the loss from limited debit card fees, they would have made a $3.1 billion profit.   Bank of America says most of the money it made came from credit cards and, no surprise, mortgages.  And what about those foreclosures?  Bank of America says it will restart the process, after an internal review found no issues.

WEST PALM BEACH, FL - AUGUST 27: Francois Cenadi (R) sits with a Bank of America negotiator as she tries to restructure her mortgage loan during a Neighborhood Assistance Corporation of America's 'Save the Dream' tour stop at the Palm Beach Convention Center on August 27, 2010 in Palm Beach, Florida. The tour, which makes stops around the United States, has on hand hundreds of mortgage counselors from various mortgage companies. (Photo by Joe Raedle/Getty Images)

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

French Strikers Kickin’ Ass, viva Nouvelle Révolution Française!

French strikes continue, should we dare call it Nouvelle Révolution Française?  Even French high school students are going head to head with riot police!  Today, the students have blockaded schools and set fire to cars.  Strikes actually started more than a month ago, and have only gotten bigger, viva les Français!

ATTENTION EDITORS - FRENCH LAW REQUIRES THAT THE FACES OF MINORS ARE MASKED IN PUBLICATIONS WITHIN FRANCE. High school students shout slogans as they block the entrance of the Thiers high school to demonstrate over pension reform in Marseille October 18, 2010. The banner reads High school students on strike . REUTERS/Jean-Paul Pelissier (FRANCE - Tags: EMPLOYMENT BUSINESS EDUCATION CIVIL UNREST)

According to the French news agency, AFP, around 1500 gas stations have run out of fuel.  Workers at 11 of France’s 12 oil refineries have joined the country wide strike, protesting a two year raise in retirement.

French striking workers block the entrance of the oil refinery of Grandpuits, east of Paris, October 18 , 2010. France started to tap its industry strategic reserves as a growing number of pumps in French petrol stations were drying up on Monday at the start of a second week of action by refinery and port strikers to block fuel supplies over an unpopular pension reform bill. REUTERS/Benoit Tessier (FRANCE - Tags: CIVIL UNREST EMPLOYMENT BUSINESS ENERGY)

On Sunday French truck drivers joined the strike, blocking the country’s major highways.  Half of all airline flights in and out of France have been canceled.

French striking truck drivers demonstrate over pension reform on a motorway near Fresnes-les-Montauban, northern France, October 18, 2010. French truck drivers staged go-slow operations on highways, rail strikes intensified and petrol stations ran out of fuel on Monday as protests gathered pace ahead of a Senate vote on an unpopular pension overhaul. REUTERS/Pascal Rossignol (FRANCE - Tags: CIVIL UNREST EMPLOYMENT BUSINESS TRANSPORT)

This is a major event taking place in Europe, with implications for the United States, yet, the U.S. Media is barely covering it.  Why?  Maybe it’s because the Corporate Controlled U.S. Media, and our Government, doesn’t want us getting any ideas?

The amazing thing is that the French are striking over a proposed two year increase to their retirement age, it hasn’t even become law.  Actually the retirement age issue is the final straw for most French.  They’re tired of constantly getting screwed over by their leaders.  Which brings me to my point, again, what’s up America?  We’ve endured so much more hyperbole here in the United States, yet where is the public outrage?

Maybe Americans are waiting for November elections to see change.  Idiots!  How many generations of Americans have played that losing game?  History shows that we the People have only gotten screwed over and over by our so called leaders!

Thomas Jefferson, a founder of the United States, and our 3rd President, warned:  “Single acts of tyranny may be ascribed to the accidental opinion of a day; but a series of oppressions, begun at a distinguished period and pursued unalterably through every change of ministers, too plainly prove a deliberate, systematic plan of reducing [a people] to slavery.” —Thomas Jefferson: Rights of British America, 1774. (*) ME 1:193, Papers 1:125

Wake Up America!

Business/Economics, U.S.

Citi Makes Billions in Profits, Says Forclosure Process “Sound”.

Citigroup, one of the big banks involved in home foreclosures,  is reporting a $2.2 billion profit for the 3rd quarter.

In a Wall Street Journal article, Citigroup officials continue to claim they have done nothing wrong in the country’s foreclosure fiasco, and therefore will not stop seizing homes.   However, in a recent Bloomberg article, it was revealed that Citigroup has suspended dealings with a Florida law firm that was handling its foreclosures in that state.

Citigroup’s profits may be due, in part, to the sale of its stake of student loans, to Discover, and the sale of other assets.