Tag Archives: China

What Economic Recovery? Hoku Corporation voluntarily de-lists, chapter 11 coming soon, “Liquidate Hoku Materials”

“How much longer can Hoku Corp keep the tsunami of debt, liabilities, liens, foreclosures and material breaches of contract at bay? What’s the delay in filing for bankruptcy protection? I believe that it may be driven by their energetic attempts to sell their solar subsidiary before the much tighter restrictions on selling assets that would come under bankruptcy.”-Marco Mangelsdorf, ProVision Solar

Hoku Corporation, parent company of failed Hoku Materials in Pocatello, Idaho, voluntarily de-listed itself from NASDAQ, and will probably file chapter 11 bankruptcy.

On 29 June it was reported that Hoku Corp had enough cash for only nine weeks of operation!

“If Hoku is unable to secure additional financing, it believes it will need to seek protection in bankruptcy from its creditors and to liquidate and wind-down Hoku and Hoku Materials. “-Hoku SEC statement, 25 June 2012

Officials also said they were unable to complete required financial reports and would miss the filing deadline for the end of the fiscal year.

At the beginning of July 2012, Hoku Corp announced it would voluntarily de-list from NASDAQ.  This after NASDAQ stopped trading of Hoku stocks, after share price fell to below $1.00 back in December 2011.  Hoku said their de-listing would take place on 10 July.

Now, Hoku has been trading as a penny stock, and as of 17 July was worth only 4 cents per share!

HOKU CORP GOING BUST! POCATELLO WASTED HUNDREDS OF THOUSANDS ON TAX BREAKS!  WHO’S GONNA BUY ALL THOSE NEW HOMES NOW MR MAYOR?

World War 3: Trilateral Commission advances; United States, European Union & Japan to go it alone against Syria, no longer working through United Nations!

25 July 2012, U.S. Secretary of State Hillary Clinton says the United States will no longer use the United Nations Security Council, instead it has formed an alliance with the Arab League and the new French led group called Friends of Syria (which is made up of the European Union and Japan).

Clinton also said that the U.S. no longer cares what Russia and China thinks, saying their concerns are now “on the far backburner” as far as the U.S. is concerned.

Back on 06 July 2012, Clinton told the Friends of Syria they needed to stand up to Russia and China in order to make sure “…that Russia and China will pay a price.”

Now the United States has joined the Kingdom of Saudi Arabia in officially announcing they will increase support for rebels, however Clinton did not go into details.

Note that this new alliance is made up mainly of the EU, Japan and North America, who are the regional members of the Trilateral Commission (the true shadow government).

 

What Economic Recovery? GE outsources innovation, spends millions building new China Innovation Center!

“These facilities…will play an instrumental role in building out much needed local innovation capabilities in the critical industries that are key to the region’s long term growth.”-Mark Hutchinson, president and CEO of GE Greater China

On 18 July 2012, unAmerican Corporate America giant, General Electric (GE), announced they’ve opened the China Innovation Center.

This as the Obama administration has been calling for more spending on innovation, but I thought he meant in the United States!  Here’s what he said: “We now live in a world where technology has made it possible for companies to take their business anywhere. If we want them to start here and stay here and hire here, we have to be able to out build and out educate and out innovate every other country on Earth.”-Barack Obama, September 2011

How can you “out innovate every other country on Earth”, when your own corporations are outsourcing the innovation?

The GE China Innovation Center in Xi’an cost $60 million USD to build.  I wounder if GE somehow got any U.S. taxpayer money, or some kind’o U.S. tax break, for their China project?

World War 3: Syria has new Defense Minister. Russia & China block UN sanctions against Syria.

“This vote should never have taken place at all!”-Vitaly Churkin, Russian ambassador to the United Nations

19 July 2012, Russia and China vetoed the latest UN Security Council resolution, on the grounds that it is totally one sided.  It is the third time the two countries blocked a UNSC resolution against Syria.

Also today, the Syrian government announced a new Defense Minister, replacing the general killed on 18 July.

 

 

World War 3: Israel holds emergency War meeting concerning Syria! Israel may be behind assassination of Syrian defense officials! Israelis killed in Bulgaria may be Syrian retaliation! Russia says it will punish those behind assassinations of Syrian officials!

“We expect the organizers of the act of terror in Damascus to be identified and for them to face their deserved punishment.”-Russian Foreign Ministry statement

“Israel is closely monitoring all the developments in Syria.”-Ehud Barak, Israeli Defense Minister

“An explosion occurred in a passenger’s bus with Israeli citizens at the Burgas Airport.”-Dimitar Nikoliv, Mayor of Burgas, Bulgaria

18 July 2012, there are reports that Ehud Barak, the Minister of Defense for Israel, just finished an hours long emergency meeting with IDF (Israeli Defense Forces) top brass.

This after two explosions, one that assassinated the top Syrian defense official, and the other which killed at least three Israelis, and wounded 20, on a bus in Bulgaria!

Prior to the attack on the Bulgarian airport shuttle bus carrying Israeli passengers, IDF officials praised the assassination of Syrian officials, rating it “…a 7 on the Richter scale!”

Witnesses to the Bulgarian bus explosion say the entire bus went up in flames.

Russia and China have stated they will veto any new UN Security Council resolutions against Syria.

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 

World War 3: Europe enforces oil sanctions against Iran. Iran prepares to close Hormuz Strait. Iran creates $14 billion fund to expand oil industry! More examples of Chock Full o’Crap western media!

“There is a bill prepared in the National Security and Foreign Policy committee of Parliament that stresses the blocking of oil tanker traffic carrying oil to countries that have sanctioned Iran.”-Ibrahim Agha-Mohammadi,  Member of Iranian Parliament

02 July 2012, in a move that seems counter to the European Union (EU) oil sanctions that went into effect on 01 July 2012, Iranian lawmakers say they will block oil shipments to Europe by closing the Strait of Hormuz.

It’s also meant to show that Iran does not need European countries for its oil business.  As of Sunday, 100 of the 290 members of Iran’s parliament have signed the bill.

Also today, Iran created a $14 billion USD fund to expand its oil industry: “The $14 billion fund can create a remarkable momentum in the oil industry and indicates that despite sanctions there is no problem in the trend of the country’s development and production in the oil sector.”-Mohammad Reza Farzin, Managing-Director of Iran’s National Development Fund

Also today, South Korean news media reported that South Korean oil refiners and Iranian oil companies have reached an agreement that would allow South Korea (a U.S. ally/puppet) to resume Iranian oil shipments without violating the European sanctions: “Korean oil refiners and the Iranian side have been in consultations over the matter of using Iranian flagged oil tankers to resume oil shipments.”-unnamed South Korean official

For insurance reasons South Korea will use Iranian tanker ships, which turns out to also be a loop hole in the European oil sanctions!

Also today, Iran’s Oil Ministry announced that despite the 01 July 2012 European oil sanctions, Iranian exports of refined gasoline for European customers will actually increase: “The daily production of euro4 gasoline will reach 24 million liters [6.3 million U.S. gallons] by the end of the current [Iranian] year.”-Alireza Zeiqami, Iran’s Deputy Oil Minister

But who’s the biggest buyer of refined Iranian fuels?  Why the U.S. occupied country of Afghanistan!  In 2011, Afghanistan bought $51.6 million USD worth of Iranian fuels.

On 01 July 2012, corrupt British bank Barclays revealed that a certain type of Iranian oil will escape any attempt at sanctions. It’s called “bunkers” (aka vital blending components).  Bunkers are blended fuels for ships, and the international shipping fleets will need at least $145 billion USD this year, according to Bloomberg.  But here’s the rub for U.S. and EU sanctions: “This is a problem we didn’t foresee. We don’t know how much Iranian oil is already blended in.”-Peter Sand, Baltic and International Maritime Council, which represents 65% of ship owners

Reports also show that Iran really does not need the U.S. or EU as customers, demands from Asia and Africa are growing rapidly. Currently Iran is supplying 100% of Sri Lanka’s petroleum needs, 51% of Turkey’s, 25% of South Africa’s, 11% of India’s and China’s, and 10% of Japan’s and South Korea’s demands.

Oh, by the way, did you know that at the end of June the U.S. government exempted China from the latest sanctions, for the next 180 days?

Full o’Crap western news media continue to claim U.S. led sanctions have hurt Iran’s economy.  The U.S. has imposed sanctions for decades, yet Iran has become one of the richest countries in the region, and not just because of oil!

Iran’s mining industry, excluding petroleum, is now the seventh largest in the world: “We have now achieved self-sufficiency in mining and heavy industries by over 70% in the last four years, while we were once totally dependent (on foreign countries) in these sectors.”-Hassan Polark, Iran’s Industry, Mines and Trade

“The richest gold mines in Venezuela, for instance, have been discovered by the young Iranian engineers.”-Hamid Safdel, Iran’s Industry, Mines and Trade

Iran and Iraq have increased trade to close to $10 million USD so far this year, and they plan to do more: “The volume of the trade exchanges between Iran and Iraq amounts to $9.7 billion which shows an 8% growth compared with the last year.”-Mostafa Mohammad Najjar, Iran’s Interior Minister

Also: “We are also ready to build new power plants in order to increase the capacity of power exports to Iraq. The [Karkheh-al-Emara] power line has increased the capacity of Iran’s electricity exports to Iraq to 1,200 megawatts [daily].”-Majid Namjou, Iran’s Minister of Energy

I could go on and on, like Iranian construction contractors building apartments in the South American country of Venezuela.  Belorussian tractor companies making joint production deals with Iranian tractor companies. Iranian automobile manufacturers reporting increased production, for yet another year in a row.

And to prove Iran is making money despite U.S. and EU sanctions, on 02 July 2012, Iranian officials announced they were able to buy two million metric tons of wheat: “The government has so far been able to import two million tons of wheat into the country despite financial restrictions and sanctions. Such a (large) volume of imported wheat is for supplying the country’s strategic reserves.”-unnamed Iranian official

Iran buys wheat from several sources.  Pakistan is a top source, but India is reportedly offering to beat Pakistan’s prices to win orders from Iran.  India is now the second largest producer of wheat in the world.

Iran also buys wheat from Kazakhstan.  Iranian reports say imports of Kazak wheat could increase by 5 million metric tons next year!

 

World War 3: U.S. occupation of Afghanistan; 23 June – 27 June. Oil starts flowing, Iran joins oil production, Uzbeistan interferes. More U.S. led troops die. Afghans accuse U.S. led troops of stealing their money, Israeli style. Cops poisoned. Cops join Mujahideen. More girls poisoned.

27 June 2012

International Security Assistance Force (ISAF) stated that two U.S. led occupying personnel were killed by an explosion in eastern Afghanistan.

“It is ISAF policy to defer casualty identification procedures to the relevant national authorities.”

iCasualties.org reports 217 occupying forces killed so far this year.

In Ghazni Province, local officials report gun battles between locals and supposed Mujahideen/Taliban. They believe the shootout was the result of people refusing to join a specific organization.

In Paktiya Province, local officials claim that 28 Mujahideen were killed in battles there. The battles were between Mujahideen and Afghan government forces backed up by U.S. led occupying forces.

ISAF claims 10 Mujahideen killed and 21 captured in battles in Ghazni, Logar, Nangarhar, Parwan and Wardak provinces.

26 June 2012

In Helmand Province, five family members were assassinated.  The family had just accepted agricultural seeds from the local government.

In Takhar Province, a suicide bomber was captured before he blew himself up.  Afghan police say he is connected with the Jendullah Group of Islamic Movement of Uzbekistan.

ISAF claims seven Mujahideen killed and six captured in Ghazni, Khost, Paktika and Wardak provinces.

25 June 2012

In Badghis Province, Mujahideen claim 15 local cops defected to them.  Local government officials admit cops did defect, but not that many.

In Logar Province, locals are complaining that U.S. led occupying forces are taking their money and government identification documents. It’s happening during night time raids on homes (Israeli style).  Some people also say the occupiers are taking electronic items like computers.

One unnamed occupying official said items, including money, are taken because U.S. led forces believe such things will be used against them (same excuse the Israelis use when they steal stuff from the Palestinians). ISAF Brigadier General, Carsten Jacobsen, claims that people are given paperwork which allows them to get their money/items back, but many Afghans say they are still waiting months later, with no response from ISAF.

In Uruzgan Province, at least six cops were killed by an explosion, three others were wounded after the explosion when Mujahideen open fired on them.

An Italian occupying troop was killed, two wounded, in eastern Afghanistan when a police shooting range was bombed.

Dozens of people killed when Afghan Mujahideen attacked Pakistani border patrol forces.  Mujahideen released a video of the beheading of 17 Pakistani soldiers (who says Pakistan isn’t doing enough for the United States?).

In Helmand Province, about 40 cops were poisoned. It happened at the police academy. The cops recovered.

In Sar-e-Pul Province, at least 90 Rahmatabad high school girls were poisoned. They have recovered.

Afghan security officials are claiming they have proof that Uzbekistan is trying to stop oil production in the Amu River basin.  China’s National Petroleum Corporation was awarded the oil extraction contract last December.

An unnamed security official said U.S. puppet General Abdul Rashid Dostum (accused of the Dasht-i-Leili massacre where hundreds of unarmed prisoners were murdered) has been hired by the Uzbek government to interfere with the Amu River oil project.

Iran announced a oil pipeline project between Iran and Afghanistan. The proposed pipeline will bring Afghanistan refined petroleum products.

24 June 2012

ISAF announced two U.S. led occupiers were killed in a traffic accident, in southern Afghanistan. Another occupier died from a non-combat incident in eastern Afghanistan.

In Ghazni Province, one person was killed, another wounded, after explosives planted on a “cycle” exploded.

In Bamiyan Province, local officials claim they captured a Mujahideen leader.

In Sar-e-Pul Province, extraction of oil from the Amu River Basin officially begins.

Afghan Attorney General officials announced investigations regarding General  Dostum’s interference in oil field production.

ISAF claims to have captured Mujahideen explosives expert in Paktiya Province.

23 June 2012

ISAF reports one U.S. led occupier killed by an explosion in southern Afghanistan.

In Sar-e-Pul Province, about 116 people, mostly girls, were poisoned at the Hazrat Imam Zada Yahya high school.

In Parwan Province, a Mujahideen leader, and a woman he was involved with,  were killed by fellow Mujahideen.  Mujahideen claim the leader and the woman were actually double agents for the Afghan government.

In Nangarhar Province, an explosion near a Hindu owned CD shop left two people dead, and two people wounded.

In Logar Province, a local police boss was assassinated.  Local cops say one body guard was killed, one wounded, and two Mujahideen killed in the attack.

In Kandahar Province, an Australian occupying force CH-47 Chinook helicopter force landed.  It happened while providing close support to ground troops. One crewman was injured: “One of the aircrew was injured and has been treated on site. All other personnel onboard underwent precautionary health checks following the incident.”-Major General Stuart Smith

In Uruzgan Province, three people killed, one wounded, when they drove over a mine.

In Faryab Province, a local cop and four members of his family were assassinated.

Afghan officials claim 11 Mujahideen killed, seven wounded and 51 captured, in battles in Kabul, Nangarhar, Baghlan, Balkh, Kandahar, Helmand, Zabul, Khost, Paktia, and Ghazni provinces.

 

Global Economic War: China cuts back on Rare Earths. Expect your new cell phone to cost more!

20 June 2012, China claims to provide 90% of rare earth minerals to the global high tech industries.  Now they’re holding back.

Rare earths are necessary for the high tech gadgets we have.  U.S. and European officials criticized China saying their mining cut backs will cause prices to skyrocket.

China claims they’re cutting back because the mining operations are causing environmental damage.  But could it be retaliation for the Obama administration recently imposing ridiculously high tariffs on Chinese solar power products?

By the way, the tariffs quite possibly were the final nails in the coffin for Hoku Materials in Pocatello, Idaho, which could have provided hundreds of good paying jobs! Thank you Mr. President!

What Economic Recovery? As I warned, Cosmetic prices up, as are prices for personal care products. No more cow dung for toothpaste!

“Cosmetics were very expensive back then, and a single product could cost the equivalent of a month’s salary for many office ladies.”-Chen Linlin, L’Oréal China

Linlin is talking about the not so good economic decade of the 1930s, but it looks like history is repeating for people (in North America and Europe) who just have to have makeup.

Back on 4 July 2011, I posted how Estee Lauder Group was the first cosmetic company to jack up their prices, and that it would be a trend for the whole industry.

Recently a Forbes article showed that Estee Lauder and L’Oréal are making bank in the Chinese market.  China’s internet cosmetics market is now nine times bigger than that of the United States, a 200% increase since 2006!

Last year cosmetics makers claimed that labor costs, and the costs of resources were the reasons for price increases.  Now, with China draining the supply of cosmetics, demand will ensure that prices will continue to go up.

Don’t blame China only, blame South America!  According to a NASDAQ report, the biggest market place for Avon (AVP) products is not the home base of the United States, but South America!

But, the NASDAQ report inadvertently reveals a couple of hidden reasons for the increase in your makeup prices: “AVP has turned its toehold in Latin America into a $1 billion-a-quarter business by spending a fortune on marketing and retailer incentives — if not the outright ‘bribes’ it is accused of distributing in Asia.”

However, when it comes to cosmetics that’re supposed to stop aging, it’s vain women in the United States that still take first place when it comes to anti-aging skin care products.

According to the research company, Mintel, the anti-aging skin care market in the U.S. leads the world with $2.3 billion USD in 2011 sales!

But it doesn’t stop with makeup.  One of my daughters told me that the shampoo she uses is now $2.00 USD more than it was a couple of years ago.

According to reports, the booming economy in India is creating a huge demand for personal care products that most rural people in India didn’t have access to: “In the past we used to use sticks or cow dung ash to clean our teeth. But now, just like urban people, we use a toothbrush and toothpaste. We use shampoo and expensive oils and creams. We have everything in our village that people have in towns and cities.”-Arun Mondal, a rural villager

In Canada the demand for body soap that does not contain harsh fragrances, therefore more environmentally friendly, has a Canadian soap manufacture scrambling and expanding into the retail market.

Paul Gillepsie, owner of Island Essentials wholesale, has so much business that he’s opened a retail store in Victoria, and will expand into Alberta. In 2004 his soap products were carried in 150 Canadian stores, now they’re sold in more than 250 stores.

But can we blame rising prices on rising demand in countries like Canada, China, India, and the countries of South America, and our own United States?

According to the U.S. Bureau of Labor Statistics, the cost to U.S. consumers of personal care products has been skyrocketing ever since the 1960s! In the 1960s, the Consumer Price Index (CPI) for personal care products was just under 40.  Now, in 2012, it’s at 161 and climbing.

However, looking at the Producer Price Index (PPI), aka U.S. wholesale prices,  shows that costs of intermediate goods (which are necessary for production of finished goods) have gone down from January 2011 to January 2012!

Intermediate goods were at 6.2% in January 2011, and were at 4.2% by January 2012, a 2% drop.  The cost of finished goods were at 3.6% in January 2011, but 12 months later were at 4.1% in January 2012, a half percent increase.

What’s important in the January to January comparison is what happened in the middle of 2011.  The costs of intermediate goods pegged at 11.5% in July 2011!  For finished goods the costs hit 7.1% twice, once in May and once in July 2011.

The spikes in intermediate and finished goods mirrors the cost of raw materials (aka crude materials). Overall, raw materials began January 2011 at 10.9%, and ended the year down more than 6%, at 4.5% in January 2012.  Again, the real killer was the spike in costs in the middle of 2011, topping out at 26.1% in June!

We in the United States are still paying for those spikes in the production costs of making the personal care products we can’t be without (cow dung for toothpaste anyone?).  However, the overriding decider of retail costs is still demand for such products, which seems to increase year after year, exponentially.