Category Archives: International

International, U.S.

U.S. citizen arrested for smuggling ammo into Mexico

The Mexican government says Mexican police arrested a woman after they discovered her shopping cart filled with 3,500 rounds of ammo.

The woman, a U.S. citizen, was heading from El Paso, Texas, to Ciudad Juarez, Chihuahua.  Police say she admitted to being part of the gun running from the United States: “The woman said she was traveling to the downtown area of ​​Ciudad Juarez, where some people deliver military equipment.”-Mexican Attorney General’s Office

Mexican officials says the ammunition was made in Russia, Korea, Brazil, United States and even Mexico.

Business/Economics, International

What Economic Recovery? Germany says no more bailout money for Italy

Der Spiegel is reporting that German government officials doubt any more bailout money can save Italy, even if the current European Financial Stability Fund was tripled in size.

German officials have consistently said government finance reforms must come through spending cuts, and tax reform, not taking on more loans.

Currently the European Financial Stability Fund has $627 billion (440 billion Euros), and Germany says even if that was somehow tripled it wouldn’t be enough to save Italy.

Earlier in the week the European Central Bank started buying more government bonds from smaller European countries, but refused to buy any bonds from Italy and Spain (an indication that the bank has little confidence in those countries paying them back).

 

 

Business/Economics, International, U.S.

What Economic Recovery? Emergency World meeting over U.S. credit downgrade, China says no more U.S. dollar, Germany says finally the U.S. gets what it deserves

“The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone.”-Chinese government/media commentary

The European Central Bank will hold an emergency meeting on Sunday, August 7.  The issue; the credit rating downgrade for the United States.

Finance ministers and central bankers from the Group of 7 major industrialized nations will meet by telephone on Sunday.  The broader Group of 20 were due to hold a conference call Saturday evening.

China and Japan are calling for coordinated action to avoid a new worldwide financial crisis.  One issue that’s being looked at is whether the world can continue to use the U.S. dollar as a reserve currency: “International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.”-Chinese government/media commentary

Another issue to be discussed is the amount of secure debt versus risky debt: “It will weigh on secure assets. The bigger reaction will be on risky assets, including equities and on agencies and states backed directly by the federal government. U.S. Treasuries will remain a benchmark. This is a ship which takes a long time to turn around.”-Ciaran  O’Hagan, Societe Generale in Paris.

Germany, the economic powerhouse of Europe, says it’s about time the U.S. got what it deserves: “I’m not surprised about the U.S. rating downgrade, rather I am astonished that, for weeks, international rating agencies have focused their attention on the European debt situation but not the American one. For a while, there have been clear worries about America’s economic woes but also the fact the U.S. is heavily indebted.”-Norbert Barthle, a budget expert for German Chancellor Angela Merkel’s conservative party

 

 

Business/Economics, International

What Economic Recovery? German drug giant Bayer may leave Germany, find new home in China

German drug and chemical giant, Bayer, says high utility cost in Germany could force it to move all its German operations to a new location outside of Europe.

The most likely new home for Bayer, China.

Bayer blames the German government, and in a round about way the German people, for their decision to end the use of nuclear power plants in Germany.

Bayer claims the electricity cost would skyrocket, making it almost impossible for them to do business in Germany : “It is important that we remain competitive in comparison with other countries. Otherwise, a global business such as Bayer would have to consider relocating its production to countries with lower energy costs.”-Marijn Dekkers, CEO

Dekkers hinted that China could be Bayer’s new home, because they’ve already invested big time into their China operations.  They’re also looking at Brazil and India.

It’s not like Bayer is losing money in this bad economy.  They reported a net profit of $1.1 billion for the second quarter of this year!

 

 

International, U.S.

Preping for Syrian invasion: Germany tells fellow EU members to get their diplomats out of Syria

“In order to increase the political pressure on Damascus and to give a signal to Syrian society, I would welcome the withdrawal of European politicians.”-Ruprecht Polenz, chairman of the German parliament’s foreign affairs committee

“I do not believe that there can be a political future for Assad that would be supported by the Syrian people.”-Guido Westerwelle, German Foreign Minister

These statements by German officials come after Syrian officials announced they will hold new elections.  Also, the Syrian government is allowing the forming of new political parties.

As usual “western” leaders are not going to give them a chance, especially after U.S. Secretary of State, Hillary Clinton, announced that Syrian president, Bashar al-Assad, is no longer considered “legitimate” by the U.S. government.  That’s a sure sign military intervention will happen.

International, U.S.

United Police States of America & Hypocrisy in the War on Terror: Convicted U.S. soldier who led abuse at Abu Ghraib released from prison early

U.S. Army Reserve specialist, Charles Graner, led a six member team at the Abu Ghraib prison in Iraq.  Maybe you’ve forgotten all those pics of prisoners being terrorized by U.S. soldiers?

Graner was found guilty and sentenced to ten years in prison.  Now he’s being released after only 6 and a half years.  Iraqis have warned the U.S. should be prepared for riots against U.S. troops, at the news of Graner’s early release.

I wonder how all those people still imprisoned at Guantanamo Bay (GITMO) would react to hearing that a convicted U.S. terrorist is being let loose after serving less time than they’ve spent at GITMO, and they still haven’t been charged with anything!!!

Business/Economics, International

What Economic Recovery? Japan to fight inflation with butter, lots and lots of butter, it’s not funny

Inflation is hitting other countries harder than the United States (so far).  In Japan inflation has caused the price of butter to go up so high, that the government announced they will flood the butter markets with more butter.

But that butter isn’t coming from Japan.  Butter production collapsed after the March 11 disasters, so the Japanese government will import 2,000 tons of butter.

It’s not just butter that will be imported, but fish as well.  This is no thanks to the radiation being poured into the Pacific Ocean off the Japanese coast.  Japanese fishermen are having a hard time selling their catch, even if it’s certified to be free of radiation.  The result is a fish shortage, and of course the price is going up.  Japan will import 13,700 tons of fish.

The situation in Japan will only strain the growing world food crisis.

Business/Economics, International

What Economic Recovery? Will Sony join Hitachi and stop making TVs in Japan?

Believe it or not the electronics giant Sony has been losing money big time on TV sales.  Prior to the March 11th disasters Sony lost about $95 million from TV sales.

Hitachi recently announced they would shut down their last Japanese TV factory by March 2012.  They claim they’re losing to competition from South Korea.

Sony says it wants to continue to make TVs in Japan, in fact they say making TVs is “the biggest and critical issue” for Sony.

Sony would not give any details of their plans to rebuild their TV business, but analysts think Sony is hoping to expand sales in emerging markets.

The concern over TV production is overshadowing Sony’s next generation video game system, the PlayStation Vita, which is due to be released at the end of the year, or beginning of next year.

Business/Economics, International, U.S.

U.S. Debt: The Big Three countries U.S. taxpayers are beholded to, U.S. government bonds drop in rank

Most people know that China is the largest foreign holder of U.S. debt.  Japan is the second biggest, and the United Kingdom (Britain) is the third.

According to the most recent information, China holds a little more than $1 trillion in U.S. government debt (bonds), Japan holds $912 billion and the U.K. holds $346 billion.  Those bonds are held not only by foreign governments, but by private banks and corporations.

Standard & Poor’s downgrade means that U.S. government bonds are now ranked 2nd place.  Germany, United Kingdom and France still hold their triple A 1st place ranks.  Interestingly the Federal Reserve Bank (not a government agency) says the drop in ranking will not change how they handle U.S. bonds.

The problem is that foreign banks will surely change how they handle U.S. bonds.

The majority of U.S. government debt is still held within the United States, by banks, corporations, individuals and taxpayers via the U.S. Treasury.

 

 

International, U.S.

Russian envoy to NATO reveals planned NATO attack on Syria, says Iran is next

“This statement means that the planning of the military campaign is well underway. It could be a logical conclusion of those military and propaganda operations, which have been carried out by certain Western countries against North Africa.”-Dmitry Rogozin, Russian envoy to NATO

The “statement” refers to the recent UN Security Council’s statement against Syria.

Rogozin also says the U.S. led NATO attacks on Libya, and the build up against Syria are all part of the “west’s” plan to invade Iran, and finally take total control of the oil rich region: “The noose around Iran is tightening. Military planning against Iran is underway.  And we are certainly concerned about an escalation of a large-scale war in this huge region.”