Tag Archives: economy

Business/Economics, International, U.S.

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.

 

 

Business/Economics, U.S.

World War 3: Murder rate in Chicago proof of Civil War; more deaths than in Afghanistan! Obama needs 200 Chicago cops for protection!

“Over 80% of shootings occur outdoors and in public places.”-Roseanna Ander, University of Chicago Crime Lab

18 June 2012, according to data from the U.S. Department of Defense (DoD), and Federal Bureau of Investigation (FBI), more people have been killed in just one U.S. city, than all of the U.S. personnel killed in Afghanistan since the U.S. invasion in 2001!

The DoD claims just over 2,000 personnel have been killed in Afghanistan between the invasion in 2001 to just last week (iCasualties.org says 2012 have been killed).  The FBI says more than 5,000 people have been killed in the U.S. city of Chicago, during the same time!

On 15 June 2012, Chicago Sun-Times reported that from the beginning of 2012 at least 228 people were killed, and the murder rate jumped 35% since last year!

According to iCasualties.org, U.S. personnel deaths in Afghanistan, since the beginning of 2012, is at 203 (and some of these deaths are not combat related).   So U.S. troops are slightly safer in Afghanistan than in Chicago!

Why the seeming civil war in Chicago? Blame the economy: “Not surprisingly, they’re in poorer neighborhoods…”-Roseanna Ander, University of Chicago Crime Lab

According to Chicago Sun-Times the city “…administration has cut anti-violence programs targeting some of Chicago’s poorer neighborhoods by $9 million.”

President Obama, and his family attended a wedding in Chicago on 16 June 2012.  They needed an escort of as many as 200 Chicago cops!   If that’s not a sign of a war zone then what is?

And by the way, Chicago city officials were told that the federal government is not paying for the extra police security!  Like I said, blame the economy!

And what about incompetent city officials?  Chicago cops are understaffed, yet city officials would rather pay overtime for cops working on their days off, than hire more cops.  That doesn’t make economic sense, unless they’re trying to avoid paying out benefits for those new cops. Even then, in the long run it’ll cost the city more, because the civil war will only escalate.

Business/Economics, International, U.S.

What Economic Recovery? Western style Crony (Mitt Romney style) Capitalism to blame for increased mental illness, and suicide in Japan!

17 June 2012, Japan’s Ministry of Labor admitting that workplace stress is causing increased mental illness and even suicide.

Japan’s corporate world mirrors that of the United States.

From March 2011 to March 2012 (Japan’s year) 325 people qualified for worker’s compensation due to mental illness caused by the workplace.  That’s up 17 from 2010.

60 of those workers attempted to kill themselves, or succeeded in killing themselves.

Don’t blame the 11 March 2011 disasters, only 20 of those 325 workers were directly connected with the massive quake & tsunamis.

16% due to excessive work loads

15% due to severe accidents

12% due to workplace harassment/bullying

Another major factor is that Japanese companies are reducing staff, mainly those employees with the most experience, in order to save money.  The problem is that the majority of employees are now younger workers who get very little training, and, are being asked to take on the same responsibilities as the more experienced workers who were laid off!  (sound familiar to you workers of the United States of America?)

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

What Economic Recovery? Solar company Hoku Corporation stock value less than 20 cents! Do Not Trade warning issued!

On 8 June 2012, the value of Hoku Corporation stock settled at 15 cents per share, after hitting 20 cents that morning.  Some stock trading media outlets issued a Do Not Trade warning for Hoku (NASDAQ: HOKU).

Hoku Corp owns failed Hoku Materials in Pocatello, Idaho.  Hoku Corp is a subsidiary of Tianwei New Energy Holdings, which is an affiliate of China South Industries Group Corporation (CSGC).

Ever since the end of May, Hoku stock has been struggling to get above 20 cents. Wikinvest says Hoku’s 52 week average is only 7 cents per share!  At last check, 13 June 2012, Hoku Corp was trading between 16 and 17 cents per share.

IDAHO’S HOKU MATERIALS ABOUT TO BE FINISHED OFF BY LAWSUITS, LAYS OFF 100 MORE EMPLOYEES IN BANNOCK COUNTY!

Business/Economics, U.S.

Bad economy forces U.S. cities to stop Fluoridating drinking water! Even the ADA now suggests fluoride is bad!

Despite study after study that shows Fluoride does not help prevent cavities, and is even responsible for the dumbing down of ‘mericans, many U.S. municipalities refuse to eliminate fluoride from tap water.

The American Dental Association (ADA) just issued a report saying 40% of U.S. teenagers have flourosis, a discoloration of the teeth caused by fluoride.

Now the bad economy is doing what study after study, and even lawsuit after lawsuit, were unable to do; end fluoridation of tap water!

On 12 June 2012, the city of Pevely, Missouri, announced they were stopping the use of fluoride, to save money.  Adding fluoride was costing the city $10,000 per year.

Despite all the international studies showing that fluoride is actually harmful, the U.S. news media, and health care/pharmaceutical industry, slammed Pevely city officials for their decision.  For some reason it’s mainly English speaking countries that add fluoride to public water supplies.

In Arizona, the Phoenix City Council Transportation and Infrastructure Subcommittee is considering ending fluoridation, to save money.  In that city people have been wanting to end fluoridation for awhile now. They claim studies show that it causes weight gain, muscle pains from thyroid problems, discoloration of teeth and that fluoride could damage bones and even eat away  tooth enamel (just the opposite of what our exalted U.S. medical industry claims).

However, in Pennsylvania, the leaders of the West Manheim Township recently voted four to one to continue fluoridating local tap water!

 

 

 

Business/Economics, International, U.S.

What Economic Recovery? IMF demands Japan raise taxes. It’s all about making investors happy, call it Global Vulture Capitalism!

12 June 2012, the International Monetary Fund (IMF) wants the Japanese federal government to raise sales taxes by a minimum of 15%.

The IMF issued a report to Japan, saying it was critical that “reforms” were made to social programs, and taxes.

Currently Japan has a 5% national sales tax, and the Diet (parliament) is considering raising it to 10%.  The IMF wants it to be 15% or more!

The IMF report reads very much like what is being imposed on people in several European countries, like Greece and Spain.

An IMF official admitted that it had nothing to do with saving governments, or helping citizens of affected countries, it was all about “investors”: “Japan must tackle its deep rooted fiscal problems. Passage of the current tax and social security reforms is thus crucial to demonstrate commitment to fiscal reform and thus to sustain investor confidence.”-David Lipton, First Deputy Managing Director IMF

Business/Economics, International, U.S.

Government Hypocrisy: United States exempts 7 more countries from Iran sanctions list. What about up-coming EU sanctions? UN says Iran has no Nukes!

“….we did not say Iran had nuclear weapons. We never said such. We also did not say that Iran made a decision to obtain nuclear weapons. That we also did not say.”-Yukiya Amano, International Atomic Energy Agency

12 June 2012, apparently all the excitement over Iran’s nuclear program was hyperbole.  The Obama administration just exempted seven more countries from the oil sanctions.

In March 2012 France, Germany and Japan were exempted. Now India, South Korea, Turkey, Sri Lanka, Malaysia, Taiwan and South Africa.  Secretary of State, Hillary Clinton, said it was because those countries have dramatically reduced their purchase of Iranian oil.

I’ve been following this and I can say that several of those countries have not reduced their purchases of Iran oil, even increasing their future orders!

U.S. officials (both in the Obama administration and in Congress) have been bold face lying to the U.S. news media, claiming that the sanctions have hurt the Iranian economy.  If that’s so then why is Iran swimming in more money than ever before?

Today it was revealed that Iran’s Gross Domestic Product (GDP) has doubled in the past fives years, despite decades of old sanctions, and despite the new sanctions: “Due to the Islamic Republic of Iran’s economic capacities we have been able to move through the sanctions and will do the same in future as well.”-Seyed Shamseddin Hosseini, Iranian Ministry of Economic Affairs & Finance

According to the International Monetary Fund (IMF) Iran now has the 17th strongest economy in the World, thanks to their GDP rising to $482 billion USD last year.  The IMF expects Iran’s GDP, for 2012, to be more than 3%, and remember, that’s under sanctions!

Iran’s own stock exchange (Tehran Stock Exchange or TSE) has seen a 280% growth rate in the past five years!  The TSE is doing almost too well, so much so that Iranian officials issued a statement to try and calm investors: “Concerns about bubble growth are unfounded. The reason for the rise in the index is the flow of cash into the stock market.”-Ali Sahraie, TSE operations manager

Stock market analysts believe Iran’s TSE has a lot more room for growth: “Even though (the market) is rallying I still think of it as under performing.”-Ahmad Alanani, works for London based Exotix

The United Nations International Atomic Energy Agency (IAEA) boss just came out (in an interview with the Wall Street Journal) and said Iran has no nukes, and that the IAEA could find no evidence suggesting that Iran is trying to build nukes.

However, the IAEA did allude to possible nuke weapons programs that were active prior to 2003: “We don’t have the impression that they are re-concentrating their activities. Before 2003 the work was quite systematic. And after that it is more dispersed. And this situation continues.”-Yukiya Amano

Sanctions against Iran, by the European Union, are set to go into effect on 1 July.

Business/Economics, International

What Economic Recovery? Japan creates new tax collection police force! Squeezing blood from turnips! Elite Panic Syndrome

11 June 2012, the federal government of Japan announced the creation of a new type of cop, a tax collecting cop!

Being referred to as a new “revenue service agency”, the strong arm tax collectors will be put together by the Welfare Ministry and the Japan Pension Service.

It’s hoped that by 2015 the new tax busters will be under the direct control of the National Tax Agency, and full blown bōryokudan tax collecting operations will be underway by 2018.

The federal government of Japan says such a new tax collecting cop is necessary because tax revenues are way down and they want to make sure everyone is paying their fair share.

No shit Sherlock!  Tax revenues are down because unemployment is up and business are shutting down!  Maybe instead of trying to squeeze blood from a turnip, you exalted elitists leaders should be finding ways to infuse your dieing economy with new blood!   (but historically, this is typical of government systems facing crashing tax revenues due to crashing economy. You’d think the elites, with their superior breeding and education would understand that!  It’s part of Elite Panic Syndrome, when they realize they F—ed up)

 

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

What Economic Recovery? Japan to force re-start of nuclear power plants, for the sake of the economic “survival of society.” New studies suggest that power use in Japan can not be reduced much further, even if utility rates are raised!

“To protect the [economic] livelihoods of the Japanese people, it is my judgment that Reactors 3 and 4 at Ohi nuclear power station should be restarted.”-Yoshihiko Noda, Prime Minister of Japan

Despite that fact that local governments in Japan have the final say on the start up of a nuclear power plant, and they’ve said no, the federal government has decided to do it anyway!

Noda gave this dire warning: “Cheap and stable electricity is vital. If all the reactors that previously provided 30% of Japan’s electricity supply are halted, or kept idle, Japanese society can not survive!”

This comes as some studies on utility usage, and increased prices for power, show that most Japanese families/individuals can not reduce power usage any further, no matter how expensive the electric rates get.   Electricity rates in Japan are already among the most expensive rates in the world!

Business/Economics, Idaho, U.S.

Idaho suicide rate 4th highest in United States! Christian/Protestant Work Ethic to Blame! Government cutbacks to blame!!! Idaho National Guard demands suicide hotline!!!

“Idaho consistently ranks in the top 10 states for our suicide rate, but the ranking of four is higher than we’ve experienced.”-Kathie Garrett, Idaho Council on Suicide Prevention

The Suicide Prevention Action Network (SPAN), says the U.S. state of Idaho has the 4th highest rate of suicide in the whole country, according to the most recent stats available (2009).

In a report published in March 2012, SPAN said there was a 15% increase in Idahoans killing themselves, between 2008 and 2010!

Suicide is the number two reason for death of Idahoans, aged 15 to 34!

Between 2006 and 2010, 81% of suicides in Idaho were by men!

In 2011, 15.4% of Idaho teenagers considered killing themselves!

SPAN did not list any reasoning for the increase in Idaho suicides.

According to the American Association of Suicidology, there are 19.7 suicides per 100,000 Idahoans.  The average for the whole U.S. is 12 per 100,000.

The top ten U.S. states for suicide are Montana, Alaska, Wyoming, Idaho, Nevada, New Mexico, Colorado, Oregon, Arizona and Utah.

Regional mental health workers say that the Pacific northwest, of the United States, has a strong stigma against people getting help, and people are looked down on if they are unemployed.  This is part of the Christian/Protestant Work Ethic described by Max Weber.

Also, this Christian/Protestant Work Ethic probably influenced Idaho law makers when they shut down the last suicide prevention hotline at the end of 2006.  By the way, note that suicides jumped when that happened!  In 2008 Idaho was ranked 6th in the country for suicide, then jumped to 4th just one year later!

A study by Idaho State University, here in Bannock County, said that if a suicide hotline was re-established it would get an average of 5,000 calls per year!

Even the Idaho National Guard has been demanding the return of a suicide hotline, after all citizen soldiers & airmen returning from the never ending War on Terror have a high rate of suicide.

Incompetent state law makers realized their mistake and agreed to bring back such a phone help line.  The problem is that the state doesn’t have the money to fully fund such a program, so it must be co-funded with donations!

The re-opening of a suicide call center came a step closer when it was revealed, in April/March, that enough funding had been raised to run a suicide prevention help line for 18 months.  Also, the hotline center will be based on the Idaho National Guard’s Gowen Field.

All that’s needed now is official national certification of the program, and the training of volunteers to take the calls.  Until then all calls will go to an Oregon center, the phone number is 1-800-273-TALK.

The Oregon call center says it’s getting at least 10 calls per day from Idaho.