Category Archives: International

Business/Economics, International

What Economic Recovery? Europe continues to stagnate, media still calls it ‘slow growth’, Germany hit hard

The European economy is still stagnating, a GDP (gross domestic product) of 0.2% for this past quarter.  That’s a drop from 0.8% in the first quarter of 2011.

Mainstream media continues to call such numbers “growth”.

Europe reports their GDP as a quarterly average.  The U.S. reports GDP as a yearly average.

Germany, the economic powerhouse of the European Union, got slammed.  Their GDP fell to 0.1% for the second quarter 2011!

German officials blamed, as usual, German shoppers, but, they also blamed investors.  Not only are shoppers shopping less in German stores, but investors are investing less into German companies.

 

 

Business/Economics, International, U.S.

What Economic Revovery? Japanese companies report double dip decline in profits, predicts continued declines into next year, blames the crashing U.S. dollar

Major Japanese companies are reporting a second quarter of declining profits.  And that’s before taxes!

SMBC Nikko Securities has compiled the profit results of more than 1,200 companies.  Overall profits are down by 12%.  They also predict profits will continue to fall into next year, by at least 2%.

Business analysts in Japan blame the decline on lack of electricity, due to more than half of Japan’s nuclear plants being shut down, and the crashing U.S. dollar.

As the U.S. dollar falls, the yen is rising in value, making Japanese products more expensive for foreign customers to buy.  Most of Japan’s economy is based on exporting products to other countries.

Japan is also the second largest foreign holder of U.S. government debt.

 

International, U.S.

Turkey gives Syria ultimatum, threatens war, United States makes the usual statments that preceed military action

“If these operations do not stop, there will be nothing left to say about the steps that would be taken.  This is our final word to the Syrian authorities, our first expectation is that these operations stop immediately and unconditionally.”-Ahmet Davutoglu, Turkish Foreign Minister

August 15, Turkey gave Syria an ultimatum; stop military operations or face the consequences.  This follows the increase of Turkish troops along the border with Syria, and the recall of all military officers who retired within the last five years.

Also, on the the same day U.S. President Obama issued this statement, through his spokesman Jay Carney: “We are looking, together with a broad array of international partners, to increase pressure on President Assad.” Also: “By his actions he has demonstrated that he has lost legitimacy to lead, and the president has no doubt that Syria will be better off without him.”

The statements from the Obama administration are now stereotypical in signalling military action.  Turkey is a member of the U.S. led North Atlantic Treaty Organization (NATO).

 

International

Riots in Northern Ireland, pro English parade sparks response from those wanting independence

August 14, in Northern Ireland a pro-English Protestant parade sparked a violent response from those who still seek independence (Irish Catholics).

Northern Ireland is controlled by the United Kingdom.  Recently a report revealed that indeed the U.K. government (and thereby the Royal Family) actively supported pro-English terrorists with weapons and money in Northern Ireland, during the time of “The Troubles”.

Sunday’s Londonderry riots quickly moved to targeting police vehicles and other government vehicles.  One person described it as “sustained rioting”.

This year is starting to look like peace has ended in Northern Ireland.  This isn’t the first time a pro-English parade sparked violence, riots also broke out during the pro-English parade in Belfast.

 

Business/Economics, International, U.S.

What Economic Recovery? 2.5 million new jobs, not for the U.S., for Iran

The Iranian government is working to create 2.5 million jobs in the Iranian calendar year 1390 (March 21, 2011 – March 19, 2012).

The Iranian government claims to have the essential human and financial resources to achieve this goal.  Iran created 1.6 million new jobs last year.

To do what the United States government can’t seem to do, Iranian labor unions, and companies, are cooperation with their government.  It’s all part of a strategic 20 year socio-economic plan.  The 20 year plan is broken up into smaller tactical five year plans.  Iran recently started its fifth five year plan, which ends in 2015.

 

Business/Economics, International, U.S.

Israel preparing to let go of United States, finds new supporter: China

Israeli military industries have long had cooperative relationships with Chinese military industries.  Now the Israeli government is making big moves towards wooing the Chinese government.

On August 14, General Chen Bingde, of China’s People’s Liberation Army, met with Israeli Defense Minister Ehud Barak, in Tel Aviv.  Barak visited China two months ago.

The Israelis are trying to win increased support from the Chinese.  Possibly they realize the United States government is flat broke, and can’t continue to give Israel billions of the U.S. taxpayers’ money.

A Jewish commentator, Eran Shayshon, stated, on the same day that General Chen showed up in Israel, that Israel must adopt an “open tent” policy towards the BRIC economies.  BRIC stands for Brazil, Russia, India and China.  They’re the only countries with good economies.

This is the first time a Chinese military official has visited Israel.  General Chen will be there for the next three days.


Business/Economics, International, U.S.

Global Economic War: World Bank says China’s Yuan would make a good replacment for the U.S. Dollar

“The Chinese policy mix includes a tool box of administrative measures … In general, one of the lessons that the United States and others can learn (from China) is that to have supervisory policies for bank regulatory systems can be a useful part of the tool set.”–Robert Zoellick, World Bank president

Zoellick gave a speech in Australia, August 14, and made it clear that China was a shining example of how economic policies should work.  In fact he said that China’s yuan may help the world pull through “a time of danger.”

Zoellick did warn that the current inflation situation, in China, might be tougher to control than Chinese officials think.

The World Bank president also hinted that China’s cooperation with the bank, creating a “catalyst for consensus”, would benefit China in the near future.

Business/Economics, International

China to modify Tight Money Supply policy

China has tightened money supply (monetary policy) in order to control inflation.  Now they will modify it with a “directional loose” money supply.

What they mean is that certain industries will be allowed easier access to financing.  Those industries include agriculture, certain small and medium sized businesses, and construction of low income housing.

Chinese officials hope this new policy will still hold down inflation, without putting a drag on industries.

 

Business/Economics, International, U.S.

Global Economic War: Recent quotes from Chinese officials, commentators, business leaders and professors show China is preparing to distance itself from the United States

“The U.S. has made other economies, including China, partly pay the bill for its recovery.”– Zhang Xiaoqiang, National Development and Reform Commission

“…the global economy is strapped stiff in the chariot of the U.S. dollar.  The United States adopted quantitative easing policies and successfully levitated the inflation level on a global scale.  The country needed the world’s help to solve its debt pressure.  Its domestic economic growth can hardly free it from its debts.”-Ye Tan, National Business Daily

“More than 70% of our products are exported to the U.S. while the rest all go to Europe.  Therefore, the depreciation of the U.S. dollar as a result of an economic recession will have a great effect on us.  The only solution we can think of now is to produce high-end products.  Buyers of these goods usually care less about prices.”-Zhou Mingwang, Yiwu Mingwang Jewelry Company

“The economic situation in the United States and Europe is not going to recover within two or three years, so we will probably reduce the proportion of exports to 50%.”-Zhang Guanjin, Shaoxing Jinyong Textile Company

“It’s like gambling, it’s hard to secure substantial, long-term profits. The only thing we can do is to transfer our factories to the inland regions to reduce costs.”-Chen Xi, Wenzhou Dongyi Shoes Company

“The economic development mode, which is highly dependent on high energy consumption, heavy pollution and resource exhaustion has reached its end in China.”-Dong Dengxin, Wuhan University of Science and Technology.

“We cannot count on the U.S. promise to ensure the security of our assets [reference to the U.S. debt China holds].  We should rely more on domestic demand and become stronger by ourselves.  Don’t worry about any hard landing in China.”-Zhang Xiaojing, Chinese Academy of Social Sciences

Business/Economics, International

Global Economic War: Europe increases tariffs on Chinese products, again

“A series of actions adopted by the EU this year suggests that tougher trade policies adopted towards China may increase the possibility of trade protectionism.”-Bai Ming, Chinese Academy of International Trade and Economic Cooperation

Last November, the European Union put together a five year plan to boost European production.  The plan targets China by imposing and raising tariffs.  The goal is to force Europeans to start buying more expensive European made products by slowing, or stopping the importation of Chinese products.

Earlier this year the EU already jacked up tariffs on Chinese ceramics by 70%!  Now, as part of the five year plan, tariffs will be raised on other inexpensive products coming from China.  Several EU member countries have also boycotted products made in China.

The five year EU plan is known as ‘protectionism’.  If you know your history, protectionism became the main economic policy of many countries, including the United States, prior to the First World War, and prior to the Second World War.

Also, protectionism is the result of bad economic times, like major recessions, or depressions.  The times we’re living in now look more and more like history repeating itself.  What’s next is another World War.  Right now it looks like Europe Union has drawn the line with China, who’s next?