Tag Archives: economy

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

Global Economic War: Apple now takes the Chinese Yuan, over the U.S. Dollar. Chinese buyers dominate the internet!

“The service has been there since last Friday. It’s really good news for our customers and local application developers.”-Apple China statement

California based Apple Incorporated decided to accept the Chinese yuan (aka Renminbi, or RMB) in an unannounced move last week. One reason is that China is now the world’s biggest internet market!!!

The App Store will now accept yuan credit and debit cards issued by more than 20 Chinese banks.  Another reason for the move is that many Chinese customers using credit and debit cards issued from outside China, were getting their info ripped off.

Apple’s fiscal 4th quarter revenues from China hit $4.5 billion. Their U.S. operations had more revenue, but revenue from China is growing so fast it will soon pass up the revenues made in the U.S.

Business/Economics, U.S.

Republican & Media Incompetence: California Republican Darrell Issa, and some mainstream media sources, say the Postal Service gets money from tax payers. Idiots!!!

“The Postal Service still seems to hold the misguided belief that accounting gimmicks and an increased reliance on taxpayer support will give it flexibility to push back insolvency for a few more years.”-Darrel Issa, Republican Representative from California

California Republican Darrel Issa has just revealed himself to be a liar or an idiot!

First off: Postal officials have been straight forward with their financial mess.  And most of that mess has been caused by Congress!!!  Read my September posting of the PBS interview with the Postmaster General, and the president of the National Association of Letter Carriers union.

Secondly: The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!!!

Darrel Issa is a California Republican, yet he doesn’t know that two other California Republicans pushed for the USPS to become self supporting?  Yeah, those guys were Richard Nixon and Ronald Reagan!!!

In 1970, under Nixon the Postal Reorganization Act was passed and signed into law.  This act ceased tax payer funding for the USPS (prior to the Reorganization Act it was known as the Postal Department), and forced it to become self supporting (although it does not have to make a profit).

In 1982, under Reagan, another act was passed and signed that added U.S. postage stamps to the “postal products” that the USPS could support itself with (until then the Government took all the money from sales of stamps).

Perhaps Darrel Issa is talking about the “Postal Service Fund”?  This is a fund set up by Congress, paid for with taxes, to cover the postage free mailing for all legally blind persons, and for mail in election ballots sent from U.S. citizens living overseas, and, for providing address information to state and local child support enforcement agencies.  It does not cover any other operations of the USPS!

Perhaps Darrel Issa wants to end the free mailings for blind people, for absentee election ballots, and for providing addresses to state and local child support agencies?

Whatever the reason, this is a clear case of politicians, and the media, of being incompetent, or intentionally misleading the general public.

 

Business/Economics, U.S.

What Economic Recovery? Postmaster General says Draconian cuts needed for self supporting U.S. Postal Service

“Both bills have elements that delay tough decisions and impose greater constraints on our business model.”-Patrick Donahoe, Postmaster General of the United States

The Postmaster General was referring to bills proposed by the U.S. Congress.  He’s still pushing for the more drastic changes he wants, like ended Saturday deliveries, and laying off more employees than proposed by the Congressional bills.

The biggest postal union, the National Association of Letter Carriers, says it’s close to a cost cutting deal with the Postmaster General.

The USPS is dealing with a 20% drop in letter business, just for this year.  Also, Congress created rules that forced the self supporting USPS to pay into Federal retirement programs.  The payments stolen by Congress, I mean, paid in advance, amounted to a decade’s worth of retirement fund payments.  So far Congress has refused to refund the over payments, although their proposed bills would give some money back, but only for use to buy out thousands of Postal workers.

When Postmaster General Donahoe talks about a “business model” he’s referring to the fact that in the 1980s Congress forced the USPS to become self supporting, meaning no more tax payer support.  The plan meant for the USPS to operate as a private business, so far Congress has actually interfered with that.

Whether Congress gets its way, or the Postmaster General, the result will be thousands more people unemployed.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!

 

Business/Economics, International, U.S.

Revised GDP report; what the mainstream media doesn’t tell you, inflation up, military spending up, non-military spending down, workers producing more but not being paid more

On November 22, the U.S. Department of Commerce, Bureau of Economic Analysis (BEA) released another revised Real GDP report.  It says the second revision of GDP for the third quarter 2011 was a stagnant 2%.

Gross Domestic Product is the “the output of goods and services produced by labor and property located in the United States”.   Real GDP means it’s been adjusted for inflation, specifically: “‘Real’ estimates are in chained (2005) dollars.”

The BEA report has some other important information, that the mainstream media rarely reports.

Inflation: Overall prices increased 1.9% in the third quarter, and 3.3% in the second quarter.

Expenses: Overall consumption expenditures increased 2.3% in the third quarter, 0.7% in the second quarter.

Property Investment: Non-residential property investment increased 14.8% in the third quarter, 10.3% in the second quarter.  Residential property investment increased 1.6% in the third quarter, 4.2% in the second quarter.

Exports: Products made in the U.S. and shipped to other countries increased 4.3% in the third quarter,  3.6% in the second.

Imports: Products brought into the U.S. increased 0.5% in the third quarter, 1.4% in the second quarter.

Government: Federal spending on the military increased 4.7% in the third quarter,  7.0% in the second. Federal spending on non-military decreased 3.8% in the third quarter, decreasing 7.6% in the second. State and local spending decreased 1.4% in the third quarter, decreasing 2.8% in the second.

Production: Real Gross National Product increased 2.1% in the third quarter, and 2.2% in the second.

Value of Products Produced: Market value increased 4.6% in the third quarter, 4.0% in the second quarter.

Income: Real Gross Domestic Income increased 0.4% in the third quarter, and 0.2% in the second.

To be significant the amount of change should be 3% or greater. Between 0% and 3% should be considered stagnation, below 0% is retraction.

Notice the huge jumps in property investment.

Notice that U.S. exports are above 3%.  This corresponds to the increase in production.  The value of products produced are more than 4%!  Yet look at the income of U.S. workers, a 0.4% pittance!  Some reward for making more products and providing more service!

The BEA’s data on production and income shows you that Corporate America views labor as slave wage workers. After all it’s obviously not the workers who’re benefiting from the increased production, and the increased value of their products and services!

What about government spending of your tax dollars? The BEA report shows what many are dealing with, a drop in State and local government spending (social services and education are the big ones), and a huge drop (more than 7% in the 2nd quarter, more than 3% in the 3rd) in Federal non-military spending (again, social programs, education, etc).  But look at the huge jump in military spending, it almost matches the cuts in non-military spending!

The BEA’s data on government spending is a real indicator of who the government really cares about!

Business/Economics, Technology, U.S.

What Economic Recovery? Netflix says 2012 will be so bad they will not make any profits. Looking to investors to float them. Blame competition & inflation

Netflix announced on November 21, that they do not expect to make a profit in 2012.  The on demand movie service went from having $366 million in cash, to almost nothing predicted for 2012.

Netflix officials blame it on several things; a huge subscriber loss, increased competition and a huge jump in licensing fees (inflation).

Like most of Corporate America, Netflix thought it could trick its customers into paying more for less. It backfired, company officials now estimate they will lose one million subscribers as a result.

Netflix says it’s seeing a jump in competition, not just from Hulu and Redbox, but from Amazon and Google.

Now comes the licensing fees.  In 2010 Netflix paid $180 million, now that’s jumped to $2 billion for 2012!!!  Company officials say they can not pay the fee upfront and will have to spread payments out over several years.

Under text book economic rules Netflix should pass on the increased licensing fees to its customers, but they already tried that and lost a huge amount of customers.  Netflix will try to ride out 2012 by issuing a crap load of stocks and bonds.  They hope they can get investors to buy at least $400 million worth of stocks and bonds, even though they admit they’re not going to make any profit for 2012.

 

Business/Economics, International, U.S.

Corporate Incompetence: British MF Global following in footsteps of Japanese Olympus?

“I’m flabbergasted. The bottom line is, there’s going to be a haircut involved. It’s devastating, what this has done to the industry.”-Tom Ward, retired Chicago Board of Trade member whose two sons have been blocked from accessing their money

Officials with MF Global, formerly Man Financial, are now admitting that they lost much more money than first reported. They’re now saying they lost $1.2 billion!

“What did the CFTC know three weeks ago and what do they know now?  If the amount has changed that much over three weeks, where did the money go? What were (regulators) looking at before?”-Tim Butler, attorney representing group of MF Global customers

MF Global originated in England, but after several moves, ended up in New York City in 2009.  They were a primary trader of U.S. sovereign debt (bonds).

Regulators have taken over the company, and are now liquidating it. The process has frozen $5.45 billion of customers’ money!

MF Global says they lost the money making a bad trade deal with the very bonds they deal with!  The latest reports say that MF Global may have used its customers’ investment money to make the deals for itself, a violation of regulations.

Investors are trying to get their money back, so far it takes hiring an attorney, but not everyone can do that: “Unlike the big banks, the average farmer who lost money in this fiasco can’t afford to hire an attorney and attend proceedings in a Manhattan courtroom.”-Chuck Grassley, U.S. Senator from Iowa

MF Global filed bankruptcy on October 31.

 

Business/Economics, International

United Police Kingdom: Privatization plans, disgused as austerity measures, backfires. Prison Guards threaten to join protestors, after government cuts pension plan, and prisons fill with record number of people

Thousands of British prison officers say they might join the planned nationwide strikes on November 30.

The Prison Officers Association has 35,000 members, and at least 15,000 will go on strike.  That’s enough to shut down the operations of British prisons.  To make matters worse, the number of people now in British prisons hit a record 87,945 last week.  The prisons are nearly maxed out.

The U.K. government wants to cut retirement plans, and that seems to be the straw that is breaking the prison guards’ back: “We are hoping that we can come to a settlement on pensions, but if we can’t, then we will support the November 30 day of action.”-Steve Gillan, Prison Officers Association

Business/Economics, U.S.

Occupy America! Corporate Lobbyists present plan to shut down OWS & Tea Party, more proof that the elites want turn the U.S. into a Prison Planet

MSNBC revealed a memo, written by former employees of U.S. House Speaker John Boehner, which basically asks for money to research ways to shut down the OWS and Tea Party movements.

Part of its goal is to prevent Democrats from joining the OWS movement, because that would threaten Corporate America: “This would mean more than just short term political discomfort for Wall Street…It has the potential to have very long lasting political, policy and financial impacts on the companies in the center of the bullseye.”

The proposal was written on the letterhead of the lobbying firm Clark Lytle Geduldig & Cranford and addressed to the American Bankers Association. It asks for more than $850,000 to conduct a 60 day study, which would include identifying Democratic candidates that are anti-Corporate America.

The Clark Lytle Geduldig & Cranford proposal also suggests that members of the Tea Party are close to joining forces with the OWS movement, and that upcoming end of year bonuses for corporate officials could result in Tea Party and OWS becoming one powerful movement: “Well known Wall Street companies stand at the nexus of where OWS protestors and the Tea Party overlap on angered populism…This combination has the potential to be explosive later in the year when media reports cover the next round of bonuses and contrast it with stories of millions of Americans making do with less this holiday season.”

The Clark Lytle Geduldig & Cranford proposal strongly suggest making examples of anyone who goes against Corporate America: “A big challenge is to demonstrate that these companies still have political strength and that making them a political target will carry a severe political cost.”

You need any more proof that Wall Street/Corporate America runs this country?




Business/Economics, U.S.

Occupy America! What Economic Recovery? Detroit to lay off thousands more city employees, impose more cuts, Detroit is Ground Zero for Corporate America’s attack on the working class

“The mood in Detroit is grim. The workers are very angry. They’ve given concessions over and over and over again without striking. We haven’t struck since 1896.”–Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit

In 1983 there were 21,000 Detroit City union employees, now it’s down to about 11,000 and will drop at least another thousand by next year.  After more than 100 years, it looks like the City’s employee union might finally go on strike!

In 2010, Detroit officials legally imposed drastic cuts upon the City employees’ pay and benefits, now they’re threatening more cuts!  In the past two years 2,000 City employees have lost their jobs, now the Detroit Mayor, Dave Bing, wants another 1,000 layoffs.

But, union officials say the Detroit City Council wants to one up the Mayor: “The City Council is competing with him to represent Big Business, apparently, they’re threatening 2,300 layoffs!”-Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit

This is part of a sinister plot to privatize Detroit, and the United States: “Detroit has a long history as a leader of the Civil Rights movement, we’re still a 85% Black city.  We have a long history as a leader of the Labor Movement, and I suppose that Big Business figures if they can attack us in Detroit, and get away with it, than they can do it anywhere in the nation, and lower the living standards of the entire population.”-Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit





Business/Economics, International, U.S.

Global Economic War: Welcome the new World Trade Organization contender; the Eurasian Union, just one more move towards One World Government

“The creation of a Eurasian Union will provide a boost to the European Union, which will have an overland bridge to China and other rising Asian markets.”-Kirill Koktysh, Moscow State University

On November 18, Russia, Belarus and Kazakhstan signed the Declaration on Eurasian Economic Integration, and the Agreement on the Eurasian Economic Committee (EEC), creating the new Eurasian Union.

“The structure of the (Eurasian Union) is very different from the EU as Russia is an absolute leader, while in the EU even Germany is strong but not completely overshadowing other members. So it will be easier to overcome problems through Russia’s leading role.”-Boris Makarenko, Center of Political Technologies

Don’t think this is a revival of the Soviet Union, it’s actually a spawn of the WTO (World Trade organization).  Before becoming a member of the new Eurasian Union each candidate country must swear allegiance to the WTO!