Category Archives: U.S.

International, U.S.

World War 3 & Media Incompetence: Government orders U.S. citizens out of Syria, Strike Force anchored off Syrian coast? A case of hopeful warmongering by the mainstream media. Remember the Spanish American War?

“The U.S. Embassy continues to urge U.S. citizens in Syria to depart immediately while commercial transportation is available.”-U.S. Embassy in Syria

On November 23, the U.S. Embassy in Syria restated a warning they’ve been giving since September 30; U.S. citizens need to leave.  CBS News reported it as if it was something new.

Then Forbes reported the United States has positioned a naval strike force, lead by the aircraft carrier USS George HW Bush (aka CVN 77), off the coast of Syria.

According to Forbes, the carrier strike group number two (COMCARSTRKGRU TWO, Commander of the Carrier Strike Group number two) had been patrolling the Strait of Hormuz, which is the narrow inlet leading from the Indian Ocean to the Persian Gulf, south of Iran.  Suddenly they were shifted, all the way round to the Mediterranean Sea.  The implication being that something is going to happen.

Forbes later updated their story saying CVN 77’s Facebook page had them in France for R&R.  Lets not forget that deals have already been made regarding French control of Syria after any war (Syria and Lebanon were controlled by France after World War 1).

On November 23, the Virginian-Pilot reported that CVN 77 was heading back home to the United States.  The home port of  USS George HW Bush is Norfolk, Virginia.

The Virginia newspaper also reported that CVN 77, along with the other ships of the strike force, had held up in the Mediterranean to “…conduct a range of operations and help maintain maritime security…”.

If a naval force, based on the east coast of the U.S., was returning from the Persian Gulf, the shortest route would be through the Strait of Hormuz, through the Indian Ocean, the Red Sea, the Suez Canal, the Mediterranean Sea, the Strait of Gibraltar into the Atlantic Ocean heading west to the U.S.

This seems to me to be a clear case of hopeful warmongering on the part of CBS News and Forbes.  CBS simply took a U.S. Embassy warning, that’s been issued since September 30 (unchanged even, word for word the same as on Sep. 30), and made it sound like it was something new.

Forbes took the CBS story, and a report on the position of the COMCARSTRKGRU TWO and insinuated that ‘war were declared’ (a quote from Futurama).  The position of the strike group in the Mediterranean Sea was correct, but also outdated because by the time Forbes published their story the strike group had already sailed to French ports for R&R.  The strike group is probably already in the Atlantic Ocean by now.

The sad thing is that foreign media are now running with the CBS/Forbes story.  What was that ancient warning sign about the end of the world?  “Wars, and rumors of wars”?

Don’t get me wrong, I think war is coming for Syria, especially since French warmonger Sarkozy want it, and Lebanon, back under French control.

Regarding the Spanish American War, which most people in the U.S. know nothing about it (it’s how we got Puerto Rico, Guam, Philippines, etc). That war is a classic example of how the warmongering U.S. media (led by William Randolph Hearst) convinced the general public that war was the only answer, and they did it while most Federal officials worked for a peaceful solution.

A peaceful solution was reached.  Spain promised Cuba independence and made other concessions, but a U.S. Navy ship exploded while off the coast of Cuba.  The mainstream U.S. media said the back stabbing Spanish did it, even though initial USN investigation said it was an accident.  The U.S. public demanded war, and the warmongering politicians overruled the doves and ‘war were declared’.  Investigations done during the 20th Century revealed that the USN ship had indeed gone down due to faulty design, not a sneak attack by the Spanish.

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s Coldwater Creek continues its fall, but, is this a case of buy low now, and if Coldwater Creek recovers, you can sell high?

“Coldwater Creek (NASDAQ:CWTR) is one of today’s worst performing low-priced stocks…”-Adrienne Chilton, analyst

The month of October and November was so bad for the Idaho company that, maybe, it should be put out of its misery.

During the second week of November, there were reports that Coldwater Creek could be delisted from the NASDAQ.  That’s because in the second half of October their stock price dropped to just a little more than .90 cents per share.  At the begining of November, Coldwater Creek was downgraded to “underperform” by Zacks Investment Research Analysts.

By the end of  the first week of November their stock price jumped back over $1.10.  But more bad news.  By the second half of November their stock price is now below .90 cents; as of November 23 it was trading at .88 cents per share.

Things are so desperate that in a move to motivate investors, and maybe keep from getting delisted, the CEO of Coldwater Creek, Dennis Pence, bought U.S.$7 million worth of his own company’s stock.

At around .90 cents per share that’s a heck of a lot of stocks!

Pence claims this is a case of buy low, sell high.  He claims he still believes in the company and is sure they will turn things around.  If he’s right investors could make a killing.  One analyst thinks investors could end up with a 200%-500% return, over three years!  But that’s assuming a $60 million improvement in Coldwater Creek’s expenses and operating income performance.

The anonymous analyst, going by the nom de plume Violent Capitalist, also admits: “…this is a very very risky investment…”

Another analyst, with the nom de plume of Pimlico, responded to the buy low, sell high sales pitch with: “This one really looks doomed. I have rarely seen shareholder equity decelerate as quicky as I have with this one.”

Investors should wait until November 30, when Coldwater Creek will report its 3rd quarter earnings.  Most analysts surveyed are predicting negative earnings.

Of interest, for the past four months, analysts have advised stock holders to “hold” onto their Coldwater Creek shares (as reported by Reuters). Is there hope?

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

Global Economic War: Apple now takes the Chinese Yuan, over the U.S. Dollar. Chinese buyers dominate the internet!

“The service has been there since last Friday. It’s really good news for our customers and local application developers.”-Apple China statement

California based Apple Incorporated decided to accept the Chinese yuan (aka Renminbi, or RMB) in an unannounced move last week. One reason is that China is now the world’s biggest internet market!!!

The App Store will now accept yuan credit and debit cards issued by more than 20 Chinese banks.  Another reason for the move is that many Chinese customers using credit and debit cards issued from outside China, were getting their info ripped off.

Apple’s fiscal 4th quarter revenues from China hit $4.5 billion. Their U.S. operations had more revenue, but revenue from China is growing so fast it will soon pass up the revenues made in the U.S.

Business/Economics, U.S.

Republican & Media Incompetence: California Republican Darrell Issa, and some mainstream media sources, say the Postal Service gets money from tax payers. Idiots!!!

“The Postal Service still seems to hold the misguided belief that accounting gimmicks and an increased reliance on taxpayer support will give it flexibility to push back insolvency for a few more years.”-Darrel Issa, Republican Representative from California

California Republican Darrel Issa has just revealed himself to be a liar or an idiot!

First off: Postal officials have been straight forward with their financial mess.  And most of that mess has been caused by Congress!!!  Read my September posting of the PBS interview with the Postmaster General, and the president of the National Association of Letter Carriers union.

Secondly: The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!!!

Darrel Issa is a California Republican, yet he doesn’t know that two other California Republicans pushed for the USPS to become self supporting?  Yeah, those guys were Richard Nixon and Ronald Reagan!!!

In 1970, under Nixon the Postal Reorganization Act was passed and signed into law.  This act ceased tax payer funding for the USPS (prior to the Reorganization Act it was known as the Postal Department), and forced it to become self supporting (although it does not have to make a profit).

In 1982, under Reagan, another act was passed and signed that added U.S. postage stamps to the “postal products” that the USPS could support itself with (until then the Government took all the money from sales of stamps).

Perhaps Darrel Issa is talking about the “Postal Service Fund”?  This is a fund set up by Congress, paid for with taxes, to cover the postage free mailing for all legally blind persons, and for mail in election ballots sent from U.S. citizens living overseas, and, for providing address information to state and local child support enforcement agencies.  It does not cover any other operations of the USPS!

Perhaps Darrel Issa wants to end the free mailings for blind people, for absentee election ballots, and for providing addresses to state and local child support agencies?

Whatever the reason, this is a clear case of politicians, and the media, of being incompetent, or intentionally misleading the general public.

 

Business/Economics, U.S.

What Economic Recovery? Postmaster General says Draconian cuts needed for self supporting U.S. Postal Service

“Both bills have elements that delay tough decisions and impose greater constraints on our business model.”-Patrick Donahoe, Postmaster General of the United States

The Postmaster General was referring to bills proposed by the U.S. Congress.  He’s still pushing for the more drastic changes he wants, like ended Saturday deliveries, and laying off more employees than proposed by the Congressional bills.

The biggest postal union, the National Association of Letter Carriers, says it’s close to a cost cutting deal with the Postmaster General.

The USPS is dealing with a 20% drop in letter business, just for this year.  Also, Congress created rules that forced the self supporting USPS to pay into Federal retirement programs.  The payments stolen by Congress, I mean, paid in advance, amounted to a decade’s worth of retirement fund payments.  So far Congress has refused to refund the over payments, although their proposed bills would give some money back, but only for use to buy out thousands of Postal workers.

When Postmaster General Donahoe talks about a “business model” he’s referring to the fact that in the 1980s Congress forced the USPS to become self supporting, meaning no more tax payer support.  The plan meant for the USPS to operate as a private business, so far Congress has actually interfered with that.

Whether Congress gets its way, or the Postmaster General, the result will be thousands more people unemployed.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!

 

Business/Economics, International, U.S.

Revised GDP report; what the mainstream media doesn’t tell you, inflation up, military spending up, non-military spending down, workers producing more but not being paid more

On November 22, the U.S. Department of Commerce, Bureau of Economic Analysis (BEA) released another revised Real GDP report.  It says the second revision of GDP for the third quarter 2011 was a stagnant 2%.

Gross Domestic Product is the “the output of goods and services produced by labor and property located in the United States”.   Real GDP means it’s been adjusted for inflation, specifically: “‘Real’ estimates are in chained (2005) dollars.”

The BEA report has some other important information, that the mainstream media rarely reports.

Inflation: Overall prices increased 1.9% in the third quarter, and 3.3% in the second quarter.

Expenses: Overall consumption expenditures increased 2.3% in the third quarter, 0.7% in the second quarter.

Property Investment: Non-residential property investment increased 14.8% in the third quarter, 10.3% in the second quarter.  Residential property investment increased 1.6% in the third quarter, 4.2% in the second quarter.

Exports: Products made in the U.S. and shipped to other countries increased 4.3% in the third quarter,  3.6% in the second.

Imports: Products brought into the U.S. increased 0.5% in the third quarter, 1.4% in the second quarter.

Government: Federal spending on the military increased 4.7% in the third quarter,  7.0% in the second. Federal spending on non-military decreased 3.8% in the third quarter, decreasing 7.6% in the second. State and local spending decreased 1.4% in the third quarter, decreasing 2.8% in the second.

Production: Real Gross National Product increased 2.1% in the third quarter, and 2.2% in the second.

Value of Products Produced: Market value increased 4.6% in the third quarter, 4.0% in the second quarter.

Income: Real Gross Domestic Income increased 0.4% in the third quarter, and 0.2% in the second.

To be significant the amount of change should be 3% or greater. Between 0% and 3% should be considered stagnation, below 0% is retraction.

Notice the huge jumps in property investment.

Notice that U.S. exports are above 3%.  This corresponds to the increase in production.  The value of products produced are more than 4%!  Yet look at the income of U.S. workers, a 0.4% pittance!  Some reward for making more products and providing more service!

The BEA’s data on production and income shows you that Corporate America views labor as slave wage workers. After all it’s obviously not the workers who’re benefiting from the increased production, and the increased value of their products and services!

What about government spending of your tax dollars? The BEA report shows what many are dealing with, a drop in State and local government spending (social services and education are the big ones), and a huge drop (more than 7% in the 2nd quarter, more than 3% in the 3rd) in Federal non-military spending (again, social programs, education, etc).  But look at the huge jump in military spending, it almost matches the cuts in non-military spending!

The BEA’s data on government spending is a real indicator of who the government really cares about!

Business/Economics, Technology, U.S.

What Economic Recovery? Netflix says 2012 will be so bad they will not make any profits. Looking to investors to float them. Blame competition & inflation

Netflix announced on November 21, that they do not expect to make a profit in 2012.  The on demand movie service went from having $366 million in cash, to almost nothing predicted for 2012.

Netflix officials blame it on several things; a huge subscriber loss, increased competition and a huge jump in licensing fees (inflation).

Like most of Corporate America, Netflix thought it could trick its customers into paying more for less. It backfired, company officials now estimate they will lose one million subscribers as a result.

Netflix says it’s seeing a jump in competition, not just from Hulu and Redbox, but from Amazon and Google.

Now comes the licensing fees.  In 2010 Netflix paid $180 million, now that’s jumped to $2 billion for 2012!!!  Company officials say they can not pay the fee upfront and will have to spread payments out over several years.

Under text book economic rules Netflix should pass on the increased licensing fees to its customers, but they already tried that and lost a huge amount of customers.  Netflix will try to ride out 2012 by issuing a crap load of stocks and bonds.  They hope they can get investors to buy at least $400 million worth of stocks and bonds, even though they admit they’re not going to make any profit for 2012.

 

Business/Economics, International, U.S.

Corporate Incompetence: British MF Global following in footsteps of Japanese Olympus?

“I’m flabbergasted. The bottom line is, there’s going to be a haircut involved. It’s devastating, what this has done to the industry.”-Tom Ward, retired Chicago Board of Trade member whose two sons have been blocked from accessing their money

Officials with MF Global, formerly Man Financial, are now admitting that they lost much more money than first reported. They’re now saying they lost $1.2 billion!

“What did the CFTC know three weeks ago and what do they know now?  If the amount has changed that much over three weeks, where did the money go? What were (regulators) looking at before?”-Tim Butler, attorney representing group of MF Global customers

MF Global originated in England, but after several moves, ended up in New York City in 2009.  They were a primary trader of U.S. sovereign debt (bonds).

Regulators have taken over the company, and are now liquidating it. The process has frozen $5.45 billion of customers’ money!

MF Global says they lost the money making a bad trade deal with the very bonds they deal with!  The latest reports say that MF Global may have used its customers’ investment money to make the deals for itself, a violation of regulations.

Investors are trying to get their money back, so far it takes hiring an attorney, but not everyone can do that: “Unlike the big banks, the average farmer who lost money in this fiasco can’t afford to hire an attorney and attend proceedings in a Manhattan courtroom.”-Chuck Grassley, U.S. Senator from Iowa

MF Global filed bankruptcy on October 31.

 

International, U.S.

Government Incompetence & Word War 3: Iran & Lebanon capture dozens of U.S. spies. CIA official says Lebanon’s spies better than the old KGB. This happened back in June, U.S. media just now talking about it, may be part of plan to justify war with Iran.

“Hezbollah’s security is as good as any in the world’s. It’s the best. It’s better than that of the KGB.”-Bob Baer, former CIA operations officer

“Beirut station is out of business.”-unnamed CIA official

Call it a major set back for the United States, in their espionage of Iran and Lebanon.  The U.S. media says more than a dozen undercover agents working for the Central Intelligence Agency (CIA) were caught.  Iranian media say it was at least 30 spies in Iran, and at least 42 in other countries!  To show you how incompetent our government has become, CIA officials learned of the espionage catastrophe while watching an Iran Today newscast.

Normally U.S. officials always play down anything reported by the Iranian media, but this time CIA officials say the info presented was hardcore CIA tactics, the Iranians could only know about it because they did indeed catch the undercover spies.

ABC News quoted a U.S. official as calling the situation an “occasional setback”.  During the Cold War this would have been a major embarrassment, to say the least!

The Iranian program that reported the U.S. spy disaster is called Iran Today, it’s presented by the news service PressTV. According to Iranian media the arrests of the U.S. paid spies began back in May!  In Lebanon, Hezbollah Secretary General Seyyed Hassan Nasrallah, announced the arrest of several spies working for the CIA back in June!

You can watch the two Iran Today programs here and here.

But arrests of spies in Lebanon actually go back to April 2009, when hundreds of spies were arrested, many working for Israel’s Mossad.  Where was the U.S. media then?

ABC News has been reporting that most of the spies were executed.  Since the U.S. is now ‘blind’ in Lebanon and Iran, the only way U.S. officials can assume their undercover agents are dead, is because their actions resulted in the deaths of Iranians and Lebanese.

According to Iranian media, spies who’re not connected to the death of one of their citizens will be sentenced to hard labor.  Only if they are found to have been involved with the assassination, or killing, of a citizen would they be executed.  If you’ve paid attention to news from Iran you’d know that many Iranian nuclear scientists have been assassinated in the past few years, as well as many seemingly random explosions that have killed Iranian civilians.

Why is the U.S. media now running with this story?  Could it be that the failed FBI sting operation, that was presented as an attempted Iranian assassination of a Saudi Arabian official, has failed to rouse enough support for war with Iran, so now the Obama administration has decided to somehow use this major CIA FAIL to generate support for war with Iran?

 

 

 

 

 

International, U.S.

World War 3: Israel says the time is now, for war with Iran. Says Obama “excelling” at supporting Israel’s military

“Let me tell you, we recommend for a long time to all players to act sincerely and intensively to…deprive them or prevent them from turning nuclear.  And we have kept recommending to all to leave no option, not to remove any option from the table.”-Ehud Barak, Defense Minister of Israel

The Chinese media is quoting Israeli Defense Minister, Ehud Barak, as pushing for war with Iran right now, because of the implications of the questionable IAEA report: “But I can tell you that the IAEA report has a sobering impact on many in the world leaders, as well as the publics, and people understand that the time had come.”

Days before the official release of the IAEA report, Israeli media stated that Prime Minister Benjamin Netanyahu and Defense Minister Ehud Barak were pushing for a military strike on Iran.

The leaders of Israel are now telling the world that Iran must be stopped: “People understand now that Iran is determined to reach nuclear weapons.  No other possible or conceivable explanation for what they have been actually doing. And that should be stopped.”-Ehud Barak

In an interview with CNN’s Fareed Zakaria, Barak was asked how supportive the Obama administration is of Israeli policies. Barak says Obama’s support surpasses all other U.S. Presidents:  “He’s extremely strong supporter of Israel in regard to security. Traditionally Presidents will support Israel in keeping its quality military aids, and taking care of its security, but this administration is excelling in this.”