Category Archives: International

Business/Economics, International

Japan’s economy shattered by Mother Earth, and Nuclear Power

“Our economy is in a severe state.”-Masaaki Shirakawa, Bank of Japan

The Bank of Japan is struggling to figure out how to pull Japan’s economy out of the dumps after the March 11 disasters.  Officials now admit the economic situation is worse than first thought.

One analyst pointed out that Japan was already in a recession, this could push Japan into a depression (see my March 17 posting “Japan Disaster start of Global Great Depression”).

The Japanese government is estimating that it will need one trillion yen, to ease employment issues in the disaster struck areas.  That’s just to fight unemployment.  They estimate actual reconstruction cost will be at least four trillion yen.  The problem is, just where are they going to get the money from?

Business/Economics, International, U.S.

More WikiLeaks documents on how the U.S. views Ecuador & how Wachovia Bank became a spy

“We are concerned that Iran will try to undertake transactions related to the proliferation of weapons, evading the provisions of Security Council of the United Nations.”-U.S. Embassy cable 226556, September 2009.

The latest documents released by WikiLeaks shows the U.S. fearful of Ecuadorian ties to Iran, and that the U.S. considered Ecuador’s President Rafael Correa as emotionally immature.  This was after he threw out two U.S. diplomats in 2009.

He also accused one of the diplomats, Mark Sullivan, as doubling as the head of CIA operations in Ecuador.

The leaked documents also show concern about the ideological unity of President Correa, and Venezuela’s Hugo Chavez.

In regards to Iran, dozens of documents show that the United States is obsessed with Ecuador’s efforts to establish strong ties with Iran, including deals with Iran’s Central Bank.  The fear is so great that, in February 2010, U.S. officials got Wachovia Bank, which is the largest trade financier in Ecuador, to spy on any of its customers that might be doing transactions with Iran.

 

Business/Economics, International

Bolivia Nationalizes Gas Stations

The Bolivian government will nationalize all gas stations within 50km (31 miles) of their border.  The move is part of the new Law on Development and Security.

About 30 gas stations are within the 50km nationalization zone.

Bolivia is surrounded by Brazil, Paraguay, Argentina, Chile and Peru.

The government said they are in the process of negotiating a purchase price for the gas stations.

International

Another aftershock jolts Japan, more warnings of 7.0 or greater

Initial reports say a 5.5 quake hit Nagano Prefecture.

Also, the Japanese Meteorological Agency warned that more aftershocks of 7.0 or greater could hit Japan.  Keiji Doi, earthquake prediction division chief, said the chance of aftershocks of 7.0 could continue for at least a year.

So far, more than 400 aftershocks of magnitude 5.0 or larger have occurred since the catastrophic March 11 quake.

 

International

Terrorists bombed Minsk subway, Moscow on alert, graphic video

At least 11 people are dead, and as many as 103 wounded, after an explosion in a Minsk subway, in the country of Belarus.  The explosion caused Russian police in Moscow to search their subways.

Witnesses say there is a large crater where the ‘bomb’ went off.  Belarus police say it is an act of terrorism, they found the remains of a bomb that ahd been stuffed with scraps of metal.  One analyst says this is the first time for such an act of terrorism in Belarus.

Russia suffered a terrorist attack at one of its airports in January.  Russia has been asking Western leaders to help them in their fight against terrorism since the 1990s.

Cell video

Graphic video

Business/Economics, International, U.S.

Toyota expects more production problems

“Output reduction in Japan and overseas will most likely continue until September.”-Kohei Takahasi, JPMorgan Chase & Co. in Tokyo

Toyota expects to lose 35,000 vehicles from the North American shut down, and that’s spread over five days.  The problem is that, because of continued nuclear power issues, it looks like parts supply is not going to improve anytime soon.

Almost 70 percent of the Toyota vehicles sold in the U.S., are put together in North America, but, about 85 percent of the parts and materials come from Japan.

The North American car market is important for Toyota, making up about 60% of their profits.

On April 8, Citigroup downgraded Toyota stock to ‘sell’.  Citigroup said the downgrade was because Toyota has not addressed the problems created by the lack of electrical power in Japan.  It’s clear the lack of power in Japan will go on for longer than expected.

 

Business/Economics, International

More trouble for Japan Air Lines

Before the March 11 disasters, JAL had come out of bankruptcy.  Now the huge drop in people coming to Japan (some sources say at least 75% drop) is threatening to do JAL in.

Last week JAL announced they will ask employees to take time off without pay.  Now JAL says it needs to cut costs by 10 billion yen.

JAL President Masaru Onishi, said international flight passengers is only 25% of what they need to make money.

They will extend the employee time off without pay plan, as well as halt payments for employee ‘expenses’ and ‘allowances’.