Tag Archives: debt

What Economic Recovery? Record number of U.S. citizens cash out of Too Big to Fail banks!

12 September 2012, in a survey conducted with the U.S. Census Bureau, the Federal Deposit Insurance Corporation (FDIC, an unregulated/independent government agency) discovered that by June 2011 nearly 10 million people quit using banks!  24 million have reduced their use of banks!

The survey is called the second National Survey of Unbanked and Underbanked Households. The first survey was done in 2009.

1 in 12 households are no longer using banks.  That’s an increase of 821,00 since 2009.

1 in 5 households have reduced their use of banks. That’s a rate of 20.1%, in 2009 it was 18.2%.

29.3% canceled savings accounts.  10% do not have checking accounts.

People are using alternative financial services (AFS) such as money orders or  check cashing services.

The reasons for cashing out of banks are varied, ranging from being upset at how the banks are being managed to being denied a bank account because of a bad credit/account history.

And he causesth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: and that no man might buy or sell…

What Economic Recovery? Sharp makes deeper cuts than originally planned, blame the Too Big to Fail banks!

11 September 2012, Japan’s Sharp Corporation revealed that the economic situation is worse than they first thought.  They are now cutting wages, salaries and bonuses even more than they first planned.

Sharp will now layoff 5,000 employees by March 2013, the first time since the 1950s!

Workers will get a 5% cut in pay, up from the planned 3% cut.  Managers will get a 10% cut in salaries, on top of the 5% cut back in April!  In June bonuses were cut by 30%, and will be cut again under Sharp’s new plans.

The reason for the new and increased cuts is to hopefully make banks happy, as Sharp needs new huge loans to continue operations!

What Economic Recovery? Obama praises auto industry bailout, yet they’re to blame for latest layoffs! By the thousands, young adults quit looking for work!

“…there were 884,000 discouraged workers in August…..Discouraged workers are persons not currently looking for work because they believe no jobs are available for them.”-Employment Situation Summary, U.S. DoL Bureau of Labor Statistics

“I don’t think they’re more lazy. It’s that there are less opportunities for them. They have it rough.”-Heidi Shierholz, Economic Policy Institute

07 September 2012, the expected 120,000 new jobs never happened (Once again the “experts” got it wrong).  According to the U.S. Department of Labor (DoL), the official number of new jobs was only 96,000!

7,000 government jobs were lost in August, but the amazing thing is that the bailed out, and supposedly recovered, auto industry (Including parts makers) laid off 8,000 people!  That’s according to the DoL’s Bureau of Labor Statistics.

In fact most of the job losses were in the Manufacturing Sector (A total of 15,000 jobs lost), the very sector that President Obama was touting during his DNC speech the night before the jobs numbers were released.

Another interesting note; the official unemployment numbers fell, ever so slightly, to 8.1% (A 0.2% drop from the month before, big freakin’ whoop! By the way, it depends on which Table your looking at.  Table A-14 from the Bureau of Labor Statistics says the rate is 8.2%, and for July it was 8.6%).  But here’s the significant part; DoL admits the unemployment drop is not because people found work, it’s because tens of thousands of young adults quit looking for a job!

People who do not look for work for 4 weeks are not counted in the unemployment numbers.

What Economic Recovery? Central government cancels payments to local governments! Too Big to Fail bank panics!

04 September 2012, the central bank is injecting massive amounts of cash into the markets, trying to preemptively hold off a market crash!  This after the central government said it can no longer make tax grant payments to local governments!

The government of Japan announced early this morning that it can not make scheduled tax grant payments to local governments.  The payments amount to $52 billion USD.

The Bank of Japan responded by injecting $23 billion USD of cash into Japanese financial institutions.  This is to try and offset the loss of the central government’s tax grants.

Local governments normally transfer the tax grants into those financial institutions, but officials with the central government of Japan said that until a bill is passed to allow the issuing of more government bonds, they can not make the tax grant payments to local governments.

The bond bill is needed to raise at least 2/5-ths of the money required to run the central government for the next year.

 

 

What Economic Recovery? Romney’s Bain Capital at it again, this time it’s Alcoa vs Glencore!

Mitt Romney claims he’ll create “12 million” jobs as president of the United States, but his own creation, Bain Capital, is still hard at work destroying jobs.

This time it’s Alcoa (Aluminum Company of America) Incorporated, the number three aluminum producer in the world!

Today, 01 September 2012, Alcoa began shutting down its Italian operation on the island of Sardinia, despite weeks of protests by their employees, including on camera suicide attempts.

In the U.S. state of Texas, Alcoa sold land and assets from its Rockdale operation.  Smelting has been reduced, and two production lines closed.  Alcoa has reduced the number of Rockdale employees to about 70.

Why is Alcoa shutting down operations around the world, laying off thousands of employees, when back in July 2012 it claimed it’s sales were up more than expected due to increased demand for aluminum?

But that’ just it, demand is up, but prices are down, that’s right industrial metal prices are crashing!  So how does Alcoa deal with that? “I want to make one thing crystal clear here, the market is working…..people are moving forward with curtailing [production] and responding by slower build as we see in China and that’s clearly a function of the low LME [London Metal Exchange] pricing that we currently have in the market.”-Klaus Kleinfeld, CEO Alcoa

So the wise corporate leaders, in their greed, increased production so much that there is now too much metal on the market causing prices to crash, killing their hopes for high profits.  But who gets hurt? Why the lowly employees, of course.

(The number one aluminum company Rusal, and the number two, Rio Tinto, are also cutting back on production. Small companies are in trouble, credit wise, with the Too Big to Fail Banks, so expect hundreds of thousands of aluminum industry employees around the world to become unemployed!)

Reuters has just reported that Swiss investment giant (the biggest in the world), Glencore, wants to buy Alcoa’s Sardinia mining operation.  Here’s the Bain Capital connection.  Bain Capital is considered a ‘cornerstone investor’ in the world’s biggest investment company, Glencore!

The reason why the general public is only now hearing about the world’s largest investment company, Glencore, is that it finally went public with an IPO (Initial Public Offering) in May 2011.  Other investment companies bought into Glencore, such as Aabar, BlackRock Fund, Credit Suisse, Fidelity Investment Fund, UBS, Zijin Mining and others.  The IPO was handled by Too Big to Fail Citigroup, Morgan Stanley and Credit Suisse.

Here’s another trivial Romney connection to Alcoa; George Romney, Mitt’s father, worked for Alcoa as a lobbyist in the 1940s.

Alcoa is too big to be totally destroyed by vulture, I mean venture, capitalists (like Bain Capital), but it is being forced to sell off little bits of itself here and there.  And investors love it when people lose their jobs, stock prices for Alcoa Inc have been going up!  And Mitt Romney says he’ll do for America what he did with Bain Capital.

 

Eating in Japan: Beware disease & radiation. International standards don’t exist! Are you worse off in the United States?

For the past few years Japan has been struggling with food problems, from diseases to radiation contamination.

The latest problem is an outbreak of E Coli in imported Chinese pickled cabbage. At least six people have died, 100 people are sick. The outbreak seams to be contained to northern Japan.

Since the Fukushima Daiichi nuclear disaster rice from northern Honshu has been found to be contaminated with radiation.  However, 28 August 2012, Fukushima Prefecture has cleared this year’s rice crop for sale.  The rice was harvested last week.  The Prefecture claims it will check all 360,000 tons of harvested rice for radiation contamination.

However, news is not good for fish.  Just in the past 24 hours the Japanese government banned the sale of Pacific cod.  The fish were caught 300 kilometers (186 miles) from the GE designed reactors in Fukushima.  When the fish were tested in port, they were found to be contaminated with twice the Japanese government’s current safe levels for cesium.

A week ago Tokyo Electric Power Company said they found fish near the nuclear plant that had a record 258 times the safe levels for cesium!

An even bigger concern is fresh water fish.  It’s been discovered that on average Japanese fresh water fish, caught in northern Honshu, are far more radioactive than salt water fish.

Recently, and sneakily, the central government of Japan changed the radiation safe limits for food, so that foods that were considered unsafe, are now safe.  Prior to the change the maximum safe limit was 370 becquerels per kilogram of cesium, now the maximum safe limit is 600 becquerels!  So even if you’re told the food is officially safe…..

Many other Asian countries, that rely on food from Japan, are crying foul.

Just two weeks ago Hong Kong’s Center for Food Safety (CFS) discovered that oatmeal from Japan was contaminated with cesium 137.  CFS officials stated the amount of cesium was less than that of a chest x-ray, but made the announcement as part of their daily Food Surveillance Program of food coming from Japan.

But get this, Japan’s new radiation safety standards are still more strict than the Codex Alimentarius.

Codex Alimentarius is the United Nations’ World Health Organization’s, and Food & Agricultural Organization’s, international food safety standards.  According to reports in the Hong Kong media, the Codex Alimentarius allows up to 1,000 becquerels per kilogram of cesium in your food!   (I’ve tried to read the PDF’s from Codex Alimentarius, it’s as if it was written for extraterrestrials, no average human could understand the info!)

By the way, Codex Alimentarius just changed their international food safety rules at the beginning of August 2012.  One suggestion, by participating countries, is that the Codex Alimentarius logo will be displayed on food considered safe.

Vietnam’s Department of Food Hygiene and Safety announced they will start testing baby formula from Japan.  This is because Hong Kong officials reported finding radioactive iodine in Japanese baby formulas.  Hong Kong officials said the amounts were below the Codex Alimentarius limits.

Another interesting development is that six months after the Fukushima Daiichi nuclear disaster began, the International Atomic Energy Agency (IAEA) approved a new International Basic Safety Standards (aka BSS).  Most of what I found on the internet is the old 1996 version.  It is a complicated publication that seems to say a lot without really saying much (see my comment about Codex Alimentarius above)!  Basically the IAEA tells governments to set their own standards!

Oh, and don’t try using a Geiger Counter on your food, it doesn’t work.

So when it comes to radiation contamination in the food we eat, it’s a crap shoot, whether we’re in the United States or Japan.

For cattle raised in southern Japan it seems everything is OK. Radiation hasn’t affected the cows that far south, and, last week U.S. and Japanese officials declared the two year foot & mouth disease of no more concern. Japan is set to resume exporting their beef to the U.S.

Interesting that Japan is resuming beef exports to the U.S., while Australia is now beating out the U.S. as the main supplier of beef to Japan.  In 2003 Japan banned U.S. beef because of Mad Cow (bovine spongiform encephalopathy/BSE).  Since 2006 only U.S. beef from cows younger than 20 months are allowed into Japan.

This year the Japanese government is considering further relaxing the restrictions on U.S. beef imports.

Australia has some of the strictest health standards for their meat industries, and is one reason they’ve escaped problems with Mad Cow.  It’s also why their beef exports are booming.  From July 2011 to July 2012, Australian beef exports to Japan increased 4%, Japanese are now the number one consumers of Australian beef.  But here’s really interesting news, Australian beef exports to the United States, for the same time period, went up 40.2%!

According to the U.S. Department of Agriculture, U.S. overall beef exports to the world have dropped by 15.4% from last year.  Mmm, wonder what’s wrong with the U.S. beef?

Foodborne illness, in Japan, is a more immediate threat (than radiation), according to a memo published on the U.S. Embassy (Tokyo) website.  The memo says the top two reasons for foodborne illness in Japan are improper handling, and improper storing of food.  The third reason is improper cooking of food.

A 2010 study that compared Korea (south) to Japan, showed that Japan had a high rate of foodborne disease (FBD).  The causes are basically the same as stated by the U.S. Embassy memo.

To put it in perspective, how high is the FBD rate in the United States?   According to the latest Centers for Disease Control and Prevention (CDC) numbers, about one in every six people (or 48 million!) get sick with FBD every year in the U.S.

Don’t rely on the central government of Japan for help in determining where to eat.  The discoveries of radiation contaminated food, last year, was made by prefectural and local governments, as well as by businesses, and individuals who paid for the tests out of their own pockets. Most Prefectures, local governments, and even local Japanese businesses, have taken matters into their own hands, providing information on radiation contamination and other health issues regarding food.  So check with the locals when seeking safe food in Japan. It’s a clear example of how a central government is useless.

For U.S. citizens traveling to Japan, who are concerned about being able to get safe food, and who think U.S. food products exported to Japan are safer, the USDA provides information about U.S. food suppliers doing business in other countries, so you might check that out.  But just because it’s from the United States doesn’t mean it’s safe.  Remember the drop in U.S. beef exports?

You can also check out the website Where Food Comes From.

 

One Year Later: Evidence Fukushima Daiichi damaged by earthquake, BEFORE tsunami hit. Radioactive water never ending!

27 August 2012, Tokyo Electric power Company (TEPCo) officials announced they need more storage tanks for contaminated water coming from the nuclear reactors.

Since the 11 March 2011 disaster began almost 220,000 tons of contaminated water has been stored, and the GE designed disaster reactors are putting out 400 tons per day!  TEPCo says it’ll run out of storage tanks in three months.

A new order for more tanks will provide TEPCo with storage only until November 2013.  The problem now is no space for more storage tanks, unless nearby forests are felled.

So where is all the water coming from?  Ever since the 11 March 2011 disaster began it was noticed that more water is coming out compared to water being pumped in.

TEPCo officials now say it is groundwater flooding into the basements of the reactors through cracks in the basement walls.  Cracks probably caused by the 9.0 earthquake, not the tsunami.

 

Class Warfare: Quantitative Easing benefits top 5% of the rich, neutral or negative effect for everyone else! More proof it’s the fault of the Too Big to Fails!

23 August 2012, the Bank of England tried to make it look as though flooding the markets with cash is benefiting everyone. But their own words revealed the truth: “…asset purchases have boosted the value of households’ financial wealth held outside pension funds, although holdings are heavily skewed, with the top 5% of households holding 40% of these assets.”

Quantitative easing is a monetary policy that tries to stimulate the economy by buying up privately held financial assets.  But as the Bank of England (BoE) pointed out, 40% of those assets are owned by only 5% of the people in the United Kingdom!  You can be sure it’s a similar situation in the United States.

The BoE also admitted that traditional ‘savers’ are the ones who’re losing, as interest rates on traditional savings accounts are at record lows.  So much for trying to get people to put money away for a rainy day.

One British company, that offers financial services for people over 50 years of age, pointed out that retirees are the big losers in all this quantitative easing (QE): “…the 21 million over 50s…have been negatively impacted……It is asserted, but not proven, that pension savers are no worse off due to QE gilt buying [gilt is a British term for government bonds], because the value of their pension savings has gone up to offset the fall in the annuity income they will receive when converting their pension fund into a pension income. This assertion is simply not correct and the reality is very different for those recently or soon to be retired.”-Ros Altmann, Saga

The BoE tried to smooth things over by saying the worst that could happen to retirement funds is nothing: “….QE is estimated to have had a broadly neutral impact on the value of the annuity income that can be purchased from a typical personal pension pot invested in a mixture of bonds and equities.”

The British National Association of Pension Funds (NAPF) responded by pointing out that if pension funds were already in trouble before the QE started in 2009, and the QE has a neutral impact, then nothing has been improved (except for the rich).  The NAPF states that what has actually happened is that retirement funds are worse off as a result of QE: “…schemes that were already in substantial deficit before the financial crisis are likely to have seen those deficits increased.”

Essentially; quantitative easing only helps the 5% of the people (elites) holding financial assets (such as bonds), it is doing nothing, or actually making things worse, for 95% of the people!!!

What Economic Recovery? Australia’s Quantas reports first loss ever! Will hurt U.S. economy; no more Boeing orders!

23 August 2012, Australia’s Quantas Airways reported its first yearly loss since it was privatized 17 years ago.

Quantas lost $250 million USD from June 2011 to June 2012.  The airline blames the high cost of fuel, coupled with flight cancellations and employee strikes.

The loss means that Quantas will now put on hold a huge order (35 aircraft) for the latest 787 airliners made by U.S. company Boeing.