Tag Archives: banks

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

Corporate & Government Incompetence: Hoku Corp “restructuring” code for going bust! Pocatello wasted hundreds of thousands on tax breaks! Hundreds of hoped for jobs down the drain! Who’s gonna buy those new homes now Mr Mayor?

On 05 July 2012, NASDAQ (National Association of Securities Dealers Automated Quotations) ordered an end to trading of Hoku stock, pending “additional information”.

NASDAQ requires that companies traded in their exchange can not go below one U.S. dollar per share for a set period of time, or that company will be de-listed.  But Hoku Corp was guaranteed doom when, at the beginning of June, a “do not trade” warning was issued to investors!

Rumors are now rampant that Hoku will declare bankruptcy, but get a clue, when a company announces it’s “restructuring” it’s a real good chance that bankruptcy is close behind.

I’ve been following the slow motion Hoku Materials train wreck in Pocatello, Idaho, since day one.  This was because I learned that some of the board members of Hoku have a history of starting up corporations on paper, then folding them for technical reasons after selling off stock in the paper corps.

You can search my posts, but briefly; the city of Pocatello, and Bannock County, bent over backwards to get the company to settle in the area, including I believe a $200,000 property tax break on land which only cost $200,000.  This was unprecedented for Pocatello, because they had been actually running off businesses, and good paying jobs, because they (city officials) refused to make concessions (the big job loss that started the whole decline for the Pocatello/Chubbuck was refusing to give Union Pacific more land to make Pocatello UP’s new huge Pacific Northwest depot!) .

From day one of construction Hoku has failed to pay contractors on time, or at all! The big guy, JH Kelly, is now using legal action to seize the property!

Hoku was also consistently late paying their massive electric bills to Idaho Power.  At one point Tianwei New Energy Holdings announced at the end of 2011 that polysilicon production had begun, however, Idaho Power refused to provide the electricity because Hoku had not met its contractual obligations, so no production was ever started!

Hoku turned to Chinese companies to bail them out of their financial woes.  They became a subsidiary of Tianwei New Energy Holdings, which is an affiliate of China South Industries Group Corporation (CSGC).  All of Hoku Material’s contracts are with Chinese solar product companies hoping to increase their business in the United States.

The hopes of Chinese solar companies, and indirectly Hoku, were finally dashed because the Obama Administration imposed high tariffs on any Chinese made solar power product!

At least 120 of the 150 Hoku Materials employees were laid off, but the massive 50 football fields long polysilicon factory (built at the end of a dead end residential road, those people are not happy) was to employ several hundreds of people once it got up and running.  One year, I remember, in one of the monthly city of Chubbuck newsletters the incompetent mayor excitedly reminding people of the boom in home sales when the factory was finished. It was in response to residents questioning the allowing of new home developments, when the housing market was so bad.

So who’s gonna buy those new homes now Mr Mayor?

 SOLAR COMPANY HOKU CORPORATION STOCK now WORTHLESS 

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

What Economic Recovery? U.S. GDP lags behind its puppet state Afghanistan

“The global growth outlook will be somewhat less than we anticipated just three months ago. Many indicators of economic activity, investment, employment, and manufacturing, have deteriorated. And not just in Europe or the United States.”-Christine Lagarde, International Monetary Fund, 03 July 2012

In June 2012, the World Bank issued GDP growth projections for the next year.

GDP growth for the United States will stagnate at 1.9%, while the war torn country of Afghanistan will actually grow at 4.9%!!!

Is this because of the billions and billions of USD pledged to the Afghan government by the international community?

The U.S. economy will continue to stagnate partly because the government is spending billions of tax dollars on occupying countries like Afghanistan?

Business/Economics, International, U.S.

Government Incompetence & What Economic Recovery? Japan & U.S. want mo money for Afghanistan, another $15 billion!!!

On Sunday, 08 July 2012, Japan will host a conference that is pushing for the international community (ie; governments who’ll squeeze their tax payers) to come up with at least $15 billion USD for Afghanistan.  That’s in addition to what’s already been pledged in the past year!

Attendies to the conference will include Afghan President Hamid Karzai, U.S. Secretary of State Hillary Clinton, and UN Secretary General Ban Ki-moon.

Karzai has already announced that he wants another $3.9 billion USD for more “reconstruction”!

How can there be any economic recovery in the western countries when their governments are getting deeper in debt by giving away money they don’t have?

On 28 June 2012, Norway joined dozens of countries in pledging money in a military pact with Afghanistan. The pact will be officially signed in September.

Also on 28 June 2012, India hosted an international conference on private investment into Afghanistan.   Afghanistan’s Foreign Minister, Zalmai Rassoul, said investors will get a big return on their investment because: “While it is true that there are certain areas in Afghanistan where the security situation is not ideal, we should remember that these areas represent a small part of the country.”

Yeah right! Read my U.S. occupation of Afghanistan updates to know that’s a lie.

Business/Economics, International, U.S.

Chock Full o’Crap Western News Media: United States caves to Pakistan’s demands for mo money to open NATO occupation supply routes! $9 million for starters!

“We can seize any item, anything that be, if it is not mentioned in the agreements between Pakistan and Afghanistan and Pakistan and NATO.”-Qamar Thalho, Customs official

The full o’crap western news media has been reporting that Pakistan re-opened U.S./NATO supply routes into Afghanistan, because U.S. officials apologized for last year’s killing of Pakistani soldiers.  Wrong! It’s all about the money.

What the western media is not telling the tax payers of the U.S. and other NATO affiliated countries, is that Pakistan is now being paid about $6,000 for every U.S./NATO occupying force supply truck that crosses the Pakistani border into Afghanistan.

There are currently 1,500 trucks waiting to go through, that’s $9 million USD!!!  Pakistani news media said U.S. officials agreed to the higher fee because the alternate supply routes through other countries costs even more money!

Example: The Pentagon says its costs $100 million per month to take supplies through Central Asia, Russia and the Caucasus!!!

Question: Is this bull shit War on Terror in Afghanistan (a country where not one of the residents were involved with the 11 September 2001 attacks on the U.S.) really worth it?

To top it off, the new U.S./NATO supply agreement allows the Pakistani Customs officials to seize any truck that’s carrying “lethal” supplies!

Business/Economics, International

What Economic Recovery? Average household income hits 25 year low!

06 July 2012, data from recent income surveys showed the average household income dropped to a 25 year low, and a record 62% of people say their lives are financially “difficult”.

The Health, Labor and Welfare Ministry of Japan released the  data. Officials say average income in Japan peaked in 1994, at about $83,000 USD, but has been falling ever since then.

In 2010, the average income dropped to $67,300 USD per year.

Business/Economics, International, U.S.

Chock Full o’Crap Western News Media: Korea South caves to Iran’s growing Purchasing Power!

“Iran is one of the major importers of Korean products. And in the eventuality that the policy of sanctioning Iranian oil is implemented, then that nation will suffer.”-Rostam Qasemi, Iranian Oil Minister

On 02 July 2012, I posted how Korea South (a U.S. ally/puppet) was getting around oil sanctions against Iran, by using Iranian tanker ships.

On 03 July 2012, Iranian media revealed the reason Korea South went against its master’s (United States) wishes: Iran has more purchasing power than the United States!

On 26 June 2012, Korea South announced they would stop oil shipments from Iran.  Iranian diplomats quickly threatened the embargo of all products made in Korea South.  Officials in the southern half of Korea did the math and decided it was not economically sound to go along with the puppet master’s (U.S.) oil embargo against Iran.

Just how much does Korea South rely on Iran for trade?

In 2007 Korea South signed a trade agreement with Iran.  According to the Korea International Trade Association, exports to Iran have increased 32%, while imports of Iranian goods increased 63.7% (the way the data was presented wasn’t clear, the percentages could be 32% for imports and 63.7% for exports)!

“Korea’s shipments to Iran amounted to $6 billion [USD] last year.”-Korea Times

The Korean Times reported that the threat by Iran, to embargo all southern Korean products, would slam 2,900 companies!

There are at least two petroleum companies from southern Korea working in Iran, and they have backing from U.S. investors!  In fact U.S. companies are involved with at least $1.4 billion USD worth of North American investments into Iran!

Here’s the bottom line; Iran is a big spender, and they pay in cash or trade!  The United States is broke, and they pay with credit, or steal it from you with bogus War on Terror tactics.  Who’s gonna get the World’s business in the long run?

 

Fukushima

Government Incompetence One Year Later: 600 page report blames ongoing nuclear disaster on idiots in government! Faulty construction of disaster reactors blamed!

“The accident was not a natural disaster but was obviously a man made disaster.”-Fukushima Nuclear Accident Independent Investigation Commission

On 05 July 2012, the results of a months long Diet (Japanese parliament) investigation into the ongoing nuclear disaster at the General Electric designed Fukushima Daiichi nuclear power factory, places blame squarely on Tokyo Electric Power Company (TEPCo), and the government.

The report also stated that failings in management began years before the  March 2011 disaster.

The report criticizes government response to the nuclear disaster.  The former prime minister who was in charge last year, Kan Naoto, gave a typical Japanese political response, agreeing with parts of the report and refuting other parts.

The report said that construction of Fukushima Daiichi was not up to earthquake standards, as claimed by TEPCo. The report says the nuclear disaster might have actually started with the earthquake, not the tsunami.

Government and corporate leadership only made things worse: Self serving attitudes of leaders resulted in willful negligence, both in the construction of the nuke plant, and the disaster response.

There were plenty of opportunities for TEPCo to upgrade Fukushima Daiichi with stronger construction and better safeguards.

In the first hours of the disaster the government interfered at different levels, causing confusion within corporate chains of command.

The government also confused the general public, by giving reports that conflicted with media reports. In some cases government reports outright contrasted with events watched live on Japanese TV  (I remember watching live on the internet as the tsunami swept over three story buildings, then heard a government official saying the waves were only 3 meters tall!!!)!

The government issued confusing evacuation advise, in some cases people actually evacuated into areas being contaminated with radiation. The report suggests that government leaders were trying to avoid taking full responsibility for the disaster by making evacuations voluntary, and using terms like “just in case”.

Another issue was the announcement of radiation danger zones long after the nuclear disaster began. The report says the government had radiation data for a whole month before hand, and could have declared the danger zones much sooner.

The Fukushima Nuclear Accident Independent Investigation Commission (NAIIC) began in December 2011, interviewing 1,167 people, including former government and TEPCo officials.   The NAIIC is planning “…to make an English version of the final report to show it to the world.”-Kurokawa Kiyoshi, lead investigator

Japanese version of report here.

 

 

Business/Economics, International, U.S.

More proof of Chock Full o’Crap Western News Media: Iran selling $3 billion worth of gas bonds, and investors are buying them up!

On 25 June 2012, Iranian banks began selling bonds on behalf of the Pars Oil and Gas Company.  The plan is to raise $3 billion USD to use for development of the massive South Pars natural gas field.

So far $5 million USD in tax free bonds have been sold.

The people who buy the bonds can remain anonymous, and can transfer them to a third party. Any profits on the bonds are calculated on a daily bases, and paid out every three months.

If full o’crap western news media reports are true, about Iranian petroleum products being backlogged because of the sanctions, they why is Iran pushing so hard to expand their petroleum industry?

Fukushima

One Year Later: Fresh water fish more radioactive than salt water fish! More proof that you need lots of salt in your diet!

03 July 2012, the Ministry of Environment in Japan discovered that fresh water fish are more susceptible to radiation contamination than salt water fish.

From December 2011 to February 2012, they sampled fish from rivers, lakes and eight locations in the Pacific Ocean.  Fresh water fish were much more contaminated than salt water fish.

In a river north of Fukushima Daiichi nuclear plant, goby fish were found with 2,600 becquerels per kilogram of cesium!  The highest readings of cesium in salt water flounder and bass were 260 becquerels per kilogram.

The researchers speculate that the salt in the ocean water absorbs much of the radiation, and then the fish excrete it (the concept is similar to the idea of taking iodide pills after a nuclear accident).

Radiation ends up being concentrated in the bodies of fresh water fish.

ONE YEAR LATER: LEFT BEHIND; FUKUSHIMA PETS STILL WITHOUT HOMES, NEW KITTENS FOUND NEAR NUCLEAR PLANT

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

Economic Recovery? Japan’s Elpida gets owned by Idaho’s Micron! Take over of Taiwan’s Rexchip in the works. Expect higher prices for your gadgets!

“Under the proposed arrangement with Powerchip, if Micron entered into an agreement to acquire Elpida, Micron would have the right to purchase the Rexchip shares held by Powerchip.”-Dan Francisco, Micron Technology

03 July 2012, failed Japanese microchip maker, Elpida Memory, has agreed to become a subsidiary of Idaho’s Micron Technology.  Of course, the U.S. main stream media says it’ll be good for the U.S. economy.

Elpida was a major supplier to Apple.

The major move makes Idaho’s Micron one of three chip makers who’ll dominate 90% of the World’s memory chip market!  The other two are Samsung Electronics and SK Hynix.

In recent years the memory chip market got flooded with so many chips that the bottom fell out, and even Micron was adversely affected (once the biggest employer in the Boise, Idaho, not anymore).

The result was a dog eat dog situation between international chip makers.  In 2007, Pocatello, Idaho’s AMI Semiconductor (not necessarily memory chips, but the same thing happened with this industry) was taken over by Arizona based ON Semiconductor.  Following that ON went on to take over dozens of other companies right on up to February 2011.

“The DRAM industry is heading towards an oligopolistic market. The emergence of three major DRAM players will help DRAM chip prices gradually stabilize, bidding farewell to the price-slashing competition of the past.”-Trendforce, Taiwanese technology research company

So when market prices drop too low, when there are just too many chip makers out there, the only recourse is for companies to merge or be taken over. The result will reduce the amount of competition, and soon memory chip prices will rise making our high tech gadgets more expensive (of course people will lose their jobs as well).

Micron is also in the final stages of taking over Taiwan based Rexchip Electronics. The approval of the sale is conditional upon Micron’s take over of Elpida.  A company called Powerchip is selling its controling shares of Rexchip to Micron.  Already the price of Rexchip stocks has jumped 58% since 29 June!

“The deal will reduce price volatility as Micron will have tighter control over capacity expansion and investment plans as it needs to integrate Elpida and Rexchip.”-Song Myung-sub, HI Investment & Securities

The amazing thing about Micron’s take overs is that Micron has lost billions of dollars in the past couple of years. So where’d they get the money to initiate these take over moves?