Category Archives: International

International

Sale of 200 German made tanks to Saudi Arabia may be illegal

The German Parliament is investigating the sale of 200 of the latest version of Germany’s Leopard 2 tank to Saudi Arabia.  It was an unnamed Saudi source that revealed the sale.

German law bans the sale of major weapons systems to countries in crisis hit regions: “Selling 200 Leopard tanks to Saudi Arabia is far from ethical foreign policy.  The country is in the middle of a regional powder keg.  You shouldn’t be giving out matches there.”-Andrea Nahles, SPD General Secretary

Der Spiegel revealed that it was Chancellor Merkel’s security council that approved the sale.

What makes this even more controversial is that Germany already gave Saudi Arabia a $93 billion ‘stimulus’ package, specifically for military/security use.  It’s rumored that Saudi Arabia needs the military help after invading the tiny island country of Bahrain, and after constant military action on their border with Yemen.

Makes you wonder where all their oil money went?

Video of Leopard 2, mostly the latest version, but some older versions of the Leo 2. The one with the pointy turret front is the newer version.

Business/Economics, International

No Economic Recovery for the U.S.: German car sales explode, but not because of the United States

German car makers are scrambling to keep up with international orders.  They expect that by the end of the year they will have exported 4.15 million German made cars.  But the majority of those cars are not going to the U.S., they’re going to China, and to some extent India.

“We are seeing international markets pick up much more rapidly than many had expected.  The drivers of growth are above all Asian markets.”-Matthias Wissmann, German Car Industry Association

Audi alone saw a 64% increase in their sales to China and Hong Kong, in 2010.  But BMW is turning out to be the big money maker, just in the first six months of 2011, their sales in China exploded by 101%!

Executives for German car makers admitted they are scrambling to rethink their corporate strategy, because they never expected such high sales in China, so soon.

 

Business/Economics, International

No Economic Recovery for the U.S.: Germany & China sign $3 billion deal

Germany, not the United States, is becoming China’s most important business partner.

In fact the latest deal puts to shame the recent deal signed between China and the United Kingdom, by several hundred billion dollars.  At the end of June Germany and China signed a $290+ billion deal.

The deal includes not just the purchase of products, but investments into anything from universities to medical research to environmental services.  Sounds like everything President Obama promised the people of the United States.

Currently Germany has invested $20 billion into Chinese industries, with China investing only $600 million into Germany.  This new deal greatly increases Chinese investment into Germany.

According to Rainer Gehnen, managing director of the German-Chinese Business Council, China, not the United States, is now Germany’s most important market, and will be for the long run.

 

 

 

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

Rare Earth Minerals the ‘oil’ of the 21st Century. Who controls the most? Same old adversaries of the 20th Century

Rare earth minerals will become the ‘oil’ of the 21st century.  That’s because they’re used in high tech electronics, and the more the world becomes reliant on electronics, the more valuable rare earth minerals become.

In fact, some analysts say some of the current wars raging on the African continent are all about control of rare earth minerals.

Here are some examples of rare earth minerals: Dysprosium is used in electric motors for vehicles, and Terbium for the latest televisions.

Who’re the biggest controllers of rare earths?  Why they’re the same major players of the Cold War in the 20th century: Russia (the boss of the Soviet Union during the Cold War), China and the United States.

However, China actually controls 90% of the production/refining of rare earths.  This is where their true power comes in.

Rare earth minerals are so important that the Japanese University of Tokyo spent a lot of money conducting a search for other sources of rare earths.  Their target search area was the Pacific Ocean.  International law would prevent any monopolization by any country, of rare earths found in the Pacific Ocean.

They found plenty.  From 2000 samples taken at 78 locations, Associate Professor Yasuhiro Kato estimates there is 800 times the rare earths at the bottom of the Pacific Ocean, than there is on land.

They targeted volcanic vents on the Pacific Ocean floor.  Hawaii has a lot.  The problem is that most of the high concentrations are at depths of 3,000 to 6,000 meters (9,842 to 19,685 feet).  So there are technical limits to getting at the Pacific Ocean rare earths.

International

Pacific Ring of Fire: Second Indonesian volcano erupts

On July 3, Indonesia’s Mount Soputan, on the Sulawesi island chain, erupted.   An ash cloud went 5,000 meters (16,404 feet) high.  An evacuation zone of 6 kilometers (3.7 miles) was ordered.

This is the second Indonesian volcano to erupt this year. In March, Mount Karangetang, also on the Sulawesi island chain, spewed lava and gas clouds, forcing thousands to evacuate.

 

Business/Economics, International

What Economic Recovery? China to raise interest rates, requires banks to hold more money in reserve

The Chinese government is contemplating another increase for interest rates, in an attempt to fight off inflation.

On top of that, the Chinese government has ordered banks to tighten their hold on cash.  Currently Chinese banks are required to hold back 21.5% of their cash. The increase in capital reserves, as it’s sometimes called, is intended to slowdown lending.  Lending is another way to drive up inflation.

However, the Bank of China issued a report that says increasing interest rates, and forcing banks to cut back on lending by increasing their capital reserves, is not having any immediate affect on inflation.  That’s because Chinese banks went on a huge lending spree, which flooded the economy with so much money that it will take some time before inflation is brought under control.

In a previous report, it was estimated by a Chinese government audit, that local governments (just local governments) are now in debt by $1.65 trillion.

 

Business/Economics, International

What Economic Recovery? Inflation hits makeup, Cosmetics prices to go up, up

Estee Lauder Group announced they will be raising prices on their various makeup brands by 8% to 10%.

Corporate officials are blaming the price rise on the increased cost of labor, and resources.

Estee Lauder Group is not the first cosmetics company to raise their prices.  Earlier in the year Christian Dior, Lancome, Biotherm, Chanel and others announced prices increases.

Business/Economics, International

What Economic Recovery? China reports slowdown in non-manufacturing

“We will continue to monitor the situation and evaluate whether this bodes a further slowdown for business activity and economic growth.”-Cai Jin, China Federation of Logistics and Purchasing

China continues to see evidence of economic slowdown, as the non-manufacturing sector shows slowed growth for second month in a row.

The slowdown in non-manufacturing (things like basic resources for bigger companies) is blamed on declining orders from the manufacturing sector.  Manufacturers are cutting back because of declining orders from their international customers.

China is the world’s second largest economy.  If the slowdown in their economy continues, it could be a sign that there is no global economic recovery.

Business/Economics, International, U.S.

I knew former IMF boss Strauss-Kahn was innocent, police now say hotel maid is a liar

In May, International Monetary Fund boss Dominique Strauss-Kahn was arrested just after he got on a plane for France.  He was charged with raping a hotel maid, and humiliated by the U.S. mainstream media who basically convicted him without waiting for a trial to be held.

Strauss-Kahn ended up resigning as IMF boss, and even had his hopes of running for President of France destroyed.  Now New York police and prosecutors say they were wrong!

When this first went down I speculated that this whole thing had something to do with his running for President of France.

Prosecutors are now working with Strauss-Kahn over the possibility of dropping all charges.  It turns out that the hotel worker is involved in drug running and money laundering.  Police investigators admit she constantly changed her story about what happened.  They also have a tape recording of the woman talking to a man in prison about how to fabricate a rape claim against Strauss-Kahn.

Isn’t it convenient that all this comes out after Strauss-Kahn’s career and political ambitions have been destroyed?  He must’ve been a threat to someone powerful.

Business/Economics, International

What Economic Recovery? European Union jacks up import duties by 70%

“We are considering quitting the European market because the import duty is far beyond our ability to withstand.”-Wu Jianfeng, Hongyu Ceramics

Chinese media reporting that many small Chinese manufactures are in trouble, because they can no longer afford to send products to Europe.

In March the European Union jacked up its import duties on Chinese ceramics from just 3% to 73%!  If you study the world wide depression of the 1920-30s you’ll find that protectionist measures, like outrageous import duties, helped turn a recession into a depression.