Category Archives: U.S.

What Economic Recovery? Get ready for more inflation, petrochemicals prices on the rise. You’ll pay more for gas, eyeglasses & presrciption drugs!

04 March 2013/21 Raby’ ath-Thani 1434/14 Esfand 1391

While glancing at news reports out of Japan, my eye was caught by a report that said eyeglass prices were going up, because of oil, or more specifically petrochemicals!

Most eyeglasses are actually plastic made with petrochemicals, and petrochemical prices have jumped.  In January 2013 overall petrochemicals prices were up 12% from January 2012.

Towards the end of 2012 reports said prices started to come down due to decreased demand.  But then supplies dipped so low that prices recovered in January/February 2013.  Now prices are going to go higher because demand is going back up!

In Riyadh, Saudi Arabia, their equity market closed up on 02 March 2013 because of increasing demand for petrochemical shares.

The latest Wall Street Journal (WSJ) report said that Dow Chemical is upset because many U.S. oil companies want to export their petrochemicals feedstock.  This will reduce supply available within the U.S. and affect the price Dow, and other companies will pay for their feedstock (basic ingredients used to make  products).

The same WSJ report also said that U.S. oil companies’ desires to export their product is part of why fuel prices are going up at the pump, even though U.S. oil prices are stuck in the $90 USD per barrel range.

According to a 2005 CATO Institute commentary, petrochemicals make up 17% of every barrel of oil used in the United States. It doesn’t sound like much, but realize that petrochemicals are used to make a huge variety of products, most  taken for granted by the average consumer.

Here’s a small list:  Carpeting, clothing, crayons, plastics (including kitchen items, toys, model kits and eyeglasses/medical devices), detergents, deodorants, fertilizers, ink, paint, pesticides, chewing gum, adhesives/glue, even those recyclable plastic grocery bags (please recycle them), and prescription and non-prescription drugs.

Corporate officials in Japan are warning consumers to expect to pay more for their everyday consumer goods.

As far as economic recovery in the real estate market, a report out of the Cityscape Jeddah Residential and Affordable Housing Summit, in Saudi Arabia, sums it up: “With maximizing profit as main objectives, banks are not incentivized to diversify their business to cover real estate projects. You might see a bank financing a petrochemical project, but you will not find any bank interested in financing a real estate project for low and mid-income people. In addition, we don’t see enough effort from SAMA [Strategic Account Management Association(?)] to encourage banks to finance residential projects.”-Stephen Atkinson, ARIEIT Investment Holdings

In other words, petrochemicals are King (Beast), and we are at their mercy!

What Economic Recovery? List of U.S. job losses & store closings for 05 February 2013: Unions act like economic crisis shouldn’t affect them! Executives getting the axe! Another Hooters down! Wesco Paint vanishes from Pocatello!

“…we’re learning about this through employees and when we’re dealing with multi-national corporations it makes it very difficult…….It’s just one hit after the other but we’re going to keep plugging.”-Anthony Dolce, Mayor of Dunkirk, New York, reacting to yet more layoffs

In Dunkirk, New York, Cott Corporation laid off at least 20 people. No explanation as company officials commented that they “had no comment at this time.” 

The City of Beacon, New York, about to layoff a few cops. The Police Union says city officials are threatening them with the layoffs, but the Mayor said the budget crisis is for real: “I told every union that it would be a tough budget. I had to raise taxes 11.25%! I’ll do what I have to do to save the city money.”-Randy Casale

In New York City, the Pink Tea Cup is bankrupt. The new owners moved the iconic restaurant to a new location, but were unable to get a new liquor license. They say being unable to serve alcohol lost them so much business they’re now broke.  They told the court that now that they have the alcohol license their business has picked up, they just need time to make enough money to pay their debts.


In West Virginia, another multi-national company, Hino Motors, is laying off  an undetermined amount of employees at its Williamstown factory.  Company officials say they were shocked at how bad their 4th Quarter sales were: “Due to unexpected soft fourth quarter sales…..Hino Williamstown will temporarily reduce production volumes to achieve a more optimal inventory level.”-Sandy Ring, Hino rep

Knight Capital, a financial services company that specializes in buying and selling stocks (aka market making), and automated electronic trading, to layoff about 75 employees after being sold to a competitor.

In Maine, six executives got laid off at the Hannaford supermarket HQ.  Company officials say it’s part of the parent company’s (Delhaize America) plans to reduce executive positions.  Delhaize America laid off 15 executives across the country.

In Beaver Dam, Kentucky, Nestaway closed down. Nestaway made parts for the appliance industry.  Their biggest customer found a new source and as a result 75 people will be out-o-work.  Beaver Dam has a population of about 3200 people.

In Massachusetts, Concord Hand Designs closing down in May.  The sister owner/manager team said that after 28 years they decided that since the lease was expiring, it was time to retire.

In Pennsylvania, the Hooters restaurant in Altoona closed down without notice.  Local reports say it was always popular, and was packed the day before it closed. Even employees didn’t find out until the day it closed.  Locals have been protesting the closing. The Hooters chain has been closing restaurants across the United States, claiming they are under performing, yet by all accounts the Altoona restaurant was making money.  In 2011 the Hooters chain was sold to a group of vulture capitalists (Mitt Romneyites).

Also in Pennsylvania, another restaurant closed.  In Bethlehem the Confetti Cafe shut down because of the owner’s health issues and the bad economy.

By April no more ALCO store in Dodge City, Kansas. Company officials blame the bad economy: “The decision to close the store in Dodge City was a difficult one. We have valued the opportunity to be a part of this community, but unfortunately the store’s performance does not meet our financial requirements. The economy has clearly had an impact on store sales, and we’ve made the very difficult decision to close.”

World War 3: U.S. occupation of Afghanistan; 20 – 24 February 2013. Karzai orders murderous U.S. troops out of Afghan province! Up to 12000 U.S. troops to remain in Afghanistan! Red Coats bribe clerics with Viagra!

24 February 2013/13 Raby’ ath-Thani 1434/06 Esfand 1391

In Logar Province, a car bomb exploded near a police dormitory, killing one cop and wounding two.

In Nangarhar Province, Mujahideen targeted the National Directorate of Security (NDS) office in Jalalabad.  Reports vary, saying between two and 14 NDS agents were killed, and dozens wounded.

President Hamid Karzai has ordered all U.S. personnel out of Maiden-Wardak Province. They were given two weeks to leave.  Karzai says investigations show U.S. Special Operations forces are murdering innocent people: “….it became clear that armed individuals named as U.S. special force stationed in Wardak province engage in harassing, annoying, torturing and even murdering innocent people. A recent example in the province is an incident in which nine people were disappeared in an operation by this suspicious force and in a separate incident a student was taken away at night from his home, whose tortured body with throat cut was found two days later under a bridge.”

23 February 2013/12 Raby’ ath-Thani 1434/05 Esfand 1391

A BBC report says in the past six months Iran has executed 80 Afghans after they were convicted of drug crimes.  Iranian border police say they have evidence that the United States is behind the opium being smuggled into Iran from Afghanistan.

22 February 2013/11 Raby’ ath-Thani 1434/04 Esfand 1391

ISAF said: “An International Security Assistance Force service member died following an improvised explosive device attack in southern Afghanistan today.”

German Defense Minister, Thomas de Maiziere, said U.S. Defense Secretary Leon Panetta told NATO officials that the United States will leave between 8000 and 12000 personnel in Afghanistan after 2014.

21 February 2013/10 Raby’ ath-Thani 1434/03 Esfand 1391

In Kunduz Province, four people were killed by U.S. led NATO forces.  ISAF says they were Mujahideen, but local villagers say the victims were never involved with violence.

A Newsweek report revealed that United Kingdom Red Coats began bribing religious leaders in Helmand Province, about three years ago.  They used food and clothing, but Viagra turned out to be a hot commodity!  Some of the Red Coats objected to giving them the sex drug because it would result in “…producing more Taliban, meaning more kids who would grow up to be Taliban.”

Now realize that British taxpayers are paying for supplying religious leaders with Viagra!

20 February 2013/09 Raby’ ath-Thani 1434/02 Esfand 1391

A United Nations Assistance Mission in Afghanistan report says U.S. led drone (UAV) strikes in Afghanistan increased 72% in 2012!

What Economic Recovery? List of U.S. job losses & store closings for 03-04 February 2013: Thousands more jobs lost! More proof the Energizer Bunny is out of energy! God still can’t stop Christian school closings! State consolidation to affect unemployment claims!

Fuel station and convenience store operator, Christy’s of Cape Cod, now bankrupt.  They closed their last gas station in Massachusetts back in October 2010. The owner, a Republican political wannabe, is facing several lawsuits from creditors.

Reports out of Rhode Island say many employees at Naval Station Newport will become unemployed.  The now for sure ‘sequestration’ will result in more than 4400 jobs lost at the military base.

In Maine, 3000 people working at the Portsmouth Naval Shipyard could be out-o-work soon!   But don’t blame it all on the ‘sequestration’, a Rear Admiral had already ordered a 10% cut in personnel.

Dry cell battery maker, Energizer, announced 290 layoffs at its Maryville, Missouri, factory!  Energizer had warned about it last year.  They’re consolidating operations.

In Dallas, Texas, Saks Fifth Avenue revealed that their previously announced store closing will result in 123 people unemployed!  In Beaumont, the owners of Knight’s Uniform Company are retiring, and shutting down their company after more than 90 years of business. In Deep Ellum, the Kettle Art gallery closing down after only a few years in business. The owner says he wants to relocate, possibly to Dominican Republic.

In North Carolina, two coal fired electricity factories will close down. Duke Energy is retiring them, they’ve been in operation since the 1920s and were rarely used anyway.  65 employees affected.

South Carolina’s Department of Employment and Workforce is ironically laying off more employees.  This is part of last year’s announced plan to consolidate unemployment offices.  Last October 55 people lost their jobs, and the state wants to layoff at least 25 more.  The consolidation also means that it will be harder for unemployed people to file claims.

In Virginia, another Blockbuster video store out-o-business. The Annandale store, in the Little River Shopping Center, is part of the 300 planned Blockbuster closings for this year!

The Gap and GapKids stores at Westfield Franklin Park in Toledo, Ohio, closed down. It’s part of the ongoing store closings announced back in 2011. Company officials stated that the Toledo store closings had nothing to do with their performance.

In California, the First Lutheran Church of Carson forced to close down their school.  It’s not because of the economy, it’s because of charges that four and five years old Christian children were engaging in sex acts on the playground!  Attorneys for parents claim children performed sex acts during nap times as well.

Also in California, San Diego Hospice now bankrupt. The largest hospice care provider in the Golden State owes millions in debt, and has been under a federal investigation for making fraudulent reimbursement claims for the past two years.

What Economic Recovery? State goverment takes over city of Detroit!!!

“I believe it’s important to declare the city of Detroit in financial emergency…..There is no city that is more financially challenged….”-Rick Snyder, Governor of Michigan

01 March 2013/18 Raby’ ath-Thani 1434/11 Esfand 1391

The Governor of Michigan, Rick Snyder, announced he is taking over the management of the city of Detroit. City officials have ten days to appeal the decision.

The city will be run by a state emergency manager, who will have the same authority as a bankruptcy judge.  State officials say the take over is necessary because the city has been operating on debt financing far too long, and now faces long term liabilities that exceed $14 billion USD!

The state takeover could mean the end of city employee unions and massive layoffs.  Detroit is the 6th Michigan city to be taken over by the state government.

What Economic Recovery? Best Buy, Kohl’s, Lowe’s! Hurricane Sandy taketh and giveth! Target has the money to launch invasion of Canada! Gun sales right on target, because of anti-gun efforts?

01 March 2013/18 Raby’ ath-Thani 1434/11 Esfand 1391

Best Buy reported a measly 0.9% increase in 4th Quarter sales in the United States. Best Buy calls it the end of their Fiscal Year 2013, I guess they’re living in the future. There is no standardized Fiscal Year (FY), so it can get confusing for us regular folks.

Even with a measly increase in sales, overall domestic revenue fell by 0.3%, and company officials admit that it’s because they shut down 49 stores!

Best Buy saw their international sales drop by 6.6%, yet managed to see a 2% increase in international revenue!  Officials credit Europeans for that.  The big drop in sales took place in Canada and China.

Best Buy says their domestic profits were unchanged from the year before, and international profits fell 2% from their FY 2012.  Company officials warned to expect a rough 1st Quarter (for their FY 2014).

Kohl’s department store reporting disappointing results. For the 4th Quarter profits fell 17% (but in dollar terms they still made hundreds of millions).   Company officials say sales were up for the year, but their discounted pricing and clearance sales cut into expected profits.  Like Best Buy, Kohl’s is cautious about sales for Gregorian calendar year 2013.

The 5th largest cable TV provider, Cablevision, reported higher 4th Quarter results, but that was because they won a lawsuit, not because of sales.  When you throw out the gains from the lawsuit, Cablevision had a net loss of $83 million USD.

Cablevision officials blame their down sales/revenue on hurricane Sandy. They say they lost 11000 customers because of power outages (this is on top of the 28000 customers they lost for other reasons).

Publix, “…the largest and fastest-growing employee-owned supermarket chain in the United States.”,  reported an overall 1.9% increase in sales for 2012.  It would have been higher if it weren’t for the fact that their FY 2012 had one more week than FY 2011.  Publix is a privately owned company so unless you work for them don’t expect to buy any of their stocks.

Home improvement store, Lowe’s, reported their end of year results: “Lowe’s fiscal year ends on the Friday nearest the end of January; therefore, fourth quarter and fiscal year 2011 included an extra week compared to 2012.” (like I said, it gets a little confusing for us regular folks)

Lowe’s saw an end of year drop in overall sales of 5%.  But they had a measly 0.6% increase in sales for the year, and they credit hurricane Sandy for that!

But wait, it gets confusing: Lowe’s says comparable, consolidated, same store sales were up for the 4th Quarter, by 1.9%, and up by 1.4% for the year.  Then they add that comparable, consolidated, same store sales for “the U.S. business” were up 1.5%.  Lowe’s bosses are happy: “We delivered solid results in the fourth quarter…”-Robert A. Niblock, chairman, president and CEO

Hello Lowe’s, your overall 4th Quarter sales still fell by 5%: “….decreased 5.0 percent to $11.0 billion from $11.6 billion in the fourth quarter of 2011.”

Lowe’s managed to buy back $4.35 billion of their own stocks, and pay stockholders $704 million in 2012!

Target, second to Walmart, reported an increase in end of year holiday sales, by 6.8%!  For the whole year Target experienced a 2.7% increase in sales from 2011. Company officials credit this to an extra week in their FY (isn’t that interesting, while some companies blame the extra week for weaker results, Target gives it credit for stronger results), and the opening (not closing) of new stores!

Target paid its stockholders dividends, and is invading Canada this year!

Sturm, Ruger & Company, the maker of the famous Mini-14 and 10/22 rifles, reported huge increases in 2012; 50% increase in sales and 77% increase in revenue! Company officials credit this to new gun models (not to the anti-gun efforts in Washington DC).

In March 2013, the company will pay stockholders a dividend close to 40% of the company’s income.  For 2012, Ruger paid stockholders $111.5 million!

 

 

 

What Economic Recovery? Sears Holdings down again! Main Streamers try to make it sound good. Beatings shall continue until moral improves!

28 February 2013/17 Raby’ ath-Thani 1434/10 Esfand 1391

The main stream media is trying to make Sears Holdings’ 2012 earnings sound good, by saying that it wasn’t as bad as expected.  It is still bad!

Sears claimed their comparable store sales were up in its 4th Quarter 2012, by a measly 0.8%.  However, sales for the whole year were down by 1.4%.

Kmart reported a drop in holiday sales, down 3.7%, which is also the same amount of declination for the whole year.

There was some good news, Sears Holdings claims internet sales were up 17% for the year (much better than the loss reported by J.C. Penney).

Company officials said overall they suffered a “Net loss from continuing operations attributable to Holdings’ shareholders of $489 million and $930 million…”

That’s a smaller loss than in fiscal year 2012, but it’s still big.  And here’s a reality check; the losses would have been bigger if not for the sale of Sears Canada stock (“We distributed nearly half of our ownership in Sears Canada in 2012”), and the drastic cut backs on buying inventory (“Domestic inventory declining $895 million from the prior year.”).

As far as continued closings of Sears and Kmart stores are concerned, here’s a old slogan that unAmerican Corporate America should officially use: The beatings will continue until moral improves.

What economic recovery?

What Economic Recovery? List of U.S. job losses & store closings for 02 February 2013: Potato factory employees surprised at their layoffs, which were actually announced at the end of 2011! More potato factories to be closed! Stock market laysoff its own reporters!

Arts cable channel, Ovation, began laying off employees in California. So far 25 people have lost their jobs, but company officials say this is the beginning of layoffs that will affect other employees in Illinois and New York.  Time Warner dropped Ovation from its  cable lineup at the end of 2012.

Another California based company, Wet Seal, a junior sized women’s clothing company, eliminated 35 positions.  Most of those are at their Foothills Ranch HQ, including the position of chief operating officer (COO). Sales are down, and last year the fired their CEO!

No more scrapbooking in California? Our Paper Place closed down their Newark location. As of 30 January all fixtures were on sale.

In Oakland, California, the Children’s Hospital & Research Center closed its Cytogenetics Laboratory.  They say the amount of work the lab did dropped by 69% in the past two years!

The Dow Jones’ MarketWatch media division laid off at least nine people.  It sounds like they are trying to replace older reporters with younger reporters willing to work for less pay.

In southern Idaho, J.R. Simplot shut down its Heyburn potato processing factory. 56 employees affected. The company spent big bucks building a new more efficient potato factory in Caldwell.  What’s interesting is that the Heyburn employees say the news was a surprise to them, however I’ve been reading about the planned move since November 2011!!!  According to Capital Press, the November 2011 announcement said the new Caldwell factory would be so efficient that J.R. Simplot would shut down three older factories in Idaho (including Heyburn), resulting in 800 Idahoans losing their jobs!  (in fact I warned about it in a 10 November 2011 posting)

Former location of J.R. Simplot Corporate HQ, Chubbuck, Idaho. They moved it to Boise more than ten years ago. The Chubbuck HQ was torn down and this strip mall built. At least two of the stores listed on the sign are now out of business, as well as others that are not on the sign.

Ex J.R. Simplot Chubbuck HQ awnings adding character to the otherwise drab Pocatello City Hall. Pocatello is the home of the Simplot Games, an international high school track & field event sponsored by J.R. Simplot. (we need jobs, not high school sports)

Two Renton Western Wear stores in Tacoma, and Renton, Washington closed down after 62 years of operations. Returns will be accepted until 15 March. The store’s website gave no reason for the shut down.

The Chocolate Peacock shut down in Omaha, Nebraska.  No it’s not a chocolate store, it was a women’s clothing store (like there aren’t enough of them anyway).  The owner said she had to choose between her ‘brick & mortar’ store or internet sales.

In Michigan, the city of Detroit abandoning 50 recreational areas! City officials said they don’t have enough money to maintain city parks.  38 other parks will have maintenance services cut in half.

In Geneva, Illinois, the Erday’s men’s clothing store out-o-business, after almost 88 years of operations.  The store specialized in ‘dress’ clothes for men, and blames part of their demise on the advent of casual dress days for work.  They also blamed competition from national chain stores.

In Watchung, New Jersey, Valley Furniture (aka Pratt Furniture) announced they will end operations once all their inventory is sold.  The store first started in 1946.  At one time the store stocked only U.S. made furniture, until the U.S. companies that made them went out-o-business.  Then the bad economy hit in 2008 and sales crashed, despite everything the family owners did. About 20 employees affected.

After nearly 67 years of business, Hodges Jewel Box in South Boston, Virginia, shut down.  The lifetime owner blamed declining sales on the bad economy.

 

 

What Economic Recovery? J.C. Penney going down the drain! More proof holiday sales sucked, and there is no recovery!

27 February 2013/16 Raby’ ath-Thani 1434/09 Esfand 1391

Company officials reported 4th Quarter 2012 results for J.C. Penney, and it’s really bad!  It’s so bad one retail analysts, Brian Sozzi, asked “Where is the rest of J.C. Penney’s quarter?”

Not only were holiday sales down in the dumps, but so were sales for the whole year.

J.C. Penney’s 4th Q 2012 ended on 07 February 2013.  For the quarter with what was expected to be big sales because of the holidays, the retailer ended up with a net loss of $552 million USD!

For the whole year: “…jcpenney reported a net loss of $985 million or $4.49 per share.”-J.C. Penney Fiscal Results statement

The losses are blamed mainly on a simply reality; sales are crashing!  In store sales down 24.8% from 2011.  Don’t blame the internet, J.C. Penney’s internet sales dropped even more, by 33%!  Not even the company’s efforts to cut expenses (by $603 million) stopped the hemorrhaging.

Closed Kmart injures two people in Wisconsin!

On 24 February 2013/14 Raby’ ath-Thani 1434/07 Esfand 1391

Two men were injured when the Beloit Kmart they were chopping up, let them down hard.

The two men were cutting up a second story concrete floor when it collapsed.   They fell 12 feet (3.6 meters). One has leg injuries the other has back injuries.

The new owner of the building is having major remodeling work done for a new Piggly Wiggly grocery store.

The following day another construction worker was killed in Utah working on a closed Kmart there.  Is there now a curse?