Category Archives: U.S.

Business/Economics, U.S.

Class War, What Economic Recovery? Warren Buffett says the Elites have won, his propsed tax on the Elites is first step to increasing taxes on everyone else

“There’s been class warfare going on for the last 20 years, and my class has won.”-Warren Buffett, legendary investor

In the U.S. Congress Republicans have been misquoting Warren Buffett, saying he’s not really for the proposed tax increase (aka The Buffett Rule) on the Elites.  Oh, he’s for it alright.

In a recent interview with a CNN reporter Buffett was asked how an increase in taxes, on the extreme minority of rich elites, would help the government’s debt problem?  Buffett admitted: “It probably would come in at 20 billion [increased tax collections from elites], but no one thing is gonna solve the deficit of over a trillion.” He went on to explain that it’s a necessary first step in preparing everyone to accept tax increases, and even more cuts to social services:  “…I think that getting people to buy in, in this country, to the kind of ‘shared sacrifice’ that’s going to be needed, it’s going to be very important they feel there’s fairness to what’s going on…”

In other words, the people of main street U.S.A. haven’t seen anything yet, when it comes to more taxes and cuts to government spending!

 

Business/Economics, U.S.

Government Incompetence equals What Economic Recovery? Small Business loan program a big FAIL!

In 2010 the U.S. Treasury Department set up the Small Business Lending Fund.  U.S.$30 billion was intended to be used to help small businesses expand and hire more people, it didn’t happen.

That Small Business Lending Fund ended, September 30, 2011.  Only $4 billion of the $30 billion was loaned out!

As usual everyone is blaming everyone else!  The banks, that were supposed to get the money to loan to small businesses, said the application process was too difficult and had too many restrictions.  The Treasury Department says hardly any bank applied.  Both the banks and the Treasury Department say hardly any small businesses applied.  Small businesses say it wasn’t worth the attempt because the banks put too many restrictions on the loans.

Some analysts say the Obama administration really thought that the economy would be much better in 2011, which is why they made it so tough to qualify for the loans.  In other words, there was no real effort to help small businesses in the United States.   Another example of how out of touch, with main street U.S.A., our political leaders in Washington DC are.

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Down economy equals increased domestice violence, Death rates up in Idaho

A new study by the Journal of Pediatrics says there is a direct correlation between the recession and an increase in child abuse cases.  The study was done in four states.

Not only that, but courts are reporting an increase in domestic violence: “Our court advocacy roles are up 40% from this time last year.”-Diane Zanetti, Executive Director of Turning Point of the Lehigh Valley, Pennsylvania

In Idaho, deaths connected to domestic violence are up.  So far this year 18 people have died from domestic violence, compared to 13 for the entire year of 2010.

Business/Economics, Idaho, U.S.

What Economic Recovery? Home Federal Bank lay offs hit Idaho & Oregon

“We continue to see high unemployment nationally and in our local markets. And the outlook for improvement in economic growth, which we believe is necessary to drive loan demand, remains questionable.”-Len Williams, Home Federal Bancorp

Home Federal Bank will close six branches in Idaho and Oregon.  Officials hope it will save the bank U.S.$1 million in the next year.

A total of 35 people will lose their jobs.  20 in Idaho and 15 in Oregon.  10 of the Idaho lay offs will come from changes to Home Federal’s mortgage operations.

Home Federal Bank reported a $4.1 million loss in 2010, and so far this year has lost $2.6 million!

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

What Economic Recovery? Idaho chip maker, Micron, in trouble

September 29, Boise based Micron reports losing money for the first time since 2009.  For the quarter ending September 1, Micron lost U.S.$135 million.

That’s a big drop compared to the previous quarter when the Idaho memory chip maker (they also make computers) reported a $75 million profit!

The loss is being blamed on a drop in chip prices, and a drop in sales.

Things got so bad in 2009, that Micron laid off more than half it’s Idaho work force! It has not recovered.

To make matters worse, Micron is facing a court case in which a California competitor claims Micron colluded with a South Korean company to price fix certain types of memory chips.  If they lose the case Micron could be hit with a $11.9 billion fine!

International, U.S.

World War 3: Russia successfully launches new submarine based ICBM

September 29, the Russian navy successfully launched a new submarine based ICBM.   The Inter Continental Ballistic Missile was launched from the Tula nuclear powered submarine in the Barents Sea.

Russian officials say the warheads hit their targets in Kamchatka in the Russian Far East.  It has longer range than older submarine based ICBMs, and can avoid the U.S. “missile shield”.

Business/Economics, U.S.

Employees at U.S. military helicopter factory doubled as drug dealers

“This investigation and prosecution focused not only on the sellers, but also on the users because of the critical role that these employees play in manufacturing military aircraft.”-Zane David Memeger, U.S. Attorney General’s office

After a four year investigation, 37 current and former employees at the Boeing plant in Philadelphia, have been arrested for selling drugs.  The plant builds CH-47 Chinook helicopters and V-22 Osprey tilt rotor aircraft.

Most of the drugs being sold were prescription pain killers. The customers were fellow Boeing employees.

Investigators say the drug dealing, and drug use did not affect production, however, in 2008 one employee sabotaged a Chinook by cutting 70 electrical wires.

Business/Economics, International, U.S.

What Economic Recovery? Japanese banks following the money to…Vietnam

September 30, Japan’s Mizuho Financial Group will invest big time in a major Vietnamese bank, Vietcombank, all in an effort to profit off Vietnam’s explosive economic growth.

Even officials with the U.S. bank Citigroup is amazed at how well Vietnam’s economy is doing.

Currently Vietnam’s GDP is at 6.11%.  Very good, but less than their 2010 GDP, which was 7.18%.  The annual GDP for the U.S. is stagnating between 1% and 2%!

The down side to Vietnam’s explosive growth, is that most Vietnamese are being left behind in the dust of poverty.  Fast economic growth comes with the paradox of increased poverty, because most of the quick profits end up in the pockets of the few (and they do not trickle it down).

Business/Economics, U.S.

What Economic Recovery? So much for any Job Stimulus, more than half of U.S. companies will NOT hire

“The findings of this survey show declines in each category of economic measurement.”-Jim McNerney, Chairman of Business Roundtable and Chairman, President and CEO of The Boeing Company

September 29, according to Business Roundtable, more than half of the biggest companies in the United States will not hire any new employees for at least six months.

In a huge change of corporate confidence, the latest survey shows only 36% of U.S. companies plan to hire new employees.  Just three months ago it was 51%.  That’s a big drop, and remember, the survey covers the upcoming end of year holiday season.

140 Chief Executive Officers took part in the Third Quarter 2011 CEO Economic Outlook Survey.   The survey showed not only declines in planned hiring, but in expected sales and corporate spending.

Business/Economics, U.S.

Global Economic Class War: Wall Street protestors grow to thousands, protests spreading to other cities

Two weeks later, instead of fizzling out like so many greedy corporate America loving right wing nut jobs predicted, the Occupy Wall Street protestors are still there, and they’re growing, nearly 2,000 at last count.

On top of that, ‘Occupy’ protests are spreading to other cities.  Some have fizzled out, while others continue.

In Los Angeles, on September 26 protestors gathered when President Barack Obama arrived for a $35,000 per plate fundraiser.  Most people in the LA area make less than $35,000 per year: “The ‘little man,’ the ‘American every man,’ just isn’t getting their voice heard. When you need $35,000 to donate to a campaign to get your voice heard, to have a meeting, that’s not democracy!”-protestor

Now, September 29, hundreds of union workers are demonstrating at LAX: “It’s just hard because the economy is bad as it is, even if they say the recession is supposed to be over, for too many people they are still in bad state and in dire need.”-Robert Branch, protestor

The Occupy Chicago rallies are in their 5th day. About 20 people started the protest on September 23, and some of them are still camped out in front of the Federal Reserve Bank of Chicago.  Some reports say the number of demonstrators are slowly increasing, about 40 as of September 28.

Several big name celebrities, and academics have made speeches during the Occupy Wall Street protests.  Protestors in New York city say they will march on New York police headquarters.  They say it’s in retaliation for the way police have been treating fellow demonstrators. So far 100 protestors have been arrested.

People are amazed at how many highly educated protestors there are: “These are the most over educated crowd of people that I’ve even seen in my life.  People come out of college and there are no jobs.”-Daniel Levine, student at Baruch College

A university professor, and security expert, says the people of the United States don’t have the guts to turn their protests violent, like in Europe: “Americans have become too complacent with the way their society is being run.”-Patricia DeGennaro, World Policy Institute/New York University

If you don’t think the Occupy Wall Street protestors are in it for the long haul, then explain why they have formed a “winterization committee”.