Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? U.S. officials say Asia is our only hope; then all is lost

“If we are going to move out of this recession, Asia is going to be part of that equation. Asia is where we are going to grow.”–Ernest Bower, Southeast Asia Program at the Center for Strategic and International Studies

Next week the 21 members of the Asia Pacific Economic Cooperation (APEC) will meet in Hawaii.  There U.S. officials are expected to bend over to make economic deals with Asia countries, that’s how desperate the situation is for the United States.

Ron Kirk, U.S. Trade Representative, said the main concern for the U.S. is resolving issues that affect U.S. exporters.

Last week the U.S. Congress approved a free trade deal with South Korea, however, the people of South Korea are against it and have been protesting ever since.  It’s obvious governments are not going to do what their people want.

If the United States is hoping that the countries of Asia, and the Pacific Rim, are going to pull us out of the ‘recession’ then all is lost:  Japan’s economy is a house of cards that’s already collapsed. China is focused on controlling inflation which is reducing consumer spending there. Vietnam, India, China, Japan and Philippines are facing off in what could turn into a war over oil rights in the South China Sea.  Australia’s main economic partner is China, and Australia is expanding its naval power in the hopes that the U.S. Navy will be forced out of the region due to economic hardship.  Japan and Russia are nudging closer to war over islands just north of Hokkaido.  And the U.S. has already lost it’s economic advantage in South America.


Business/Economics, International, U.S.

What Economic Recovery? Honda to slash North American production, Toyota cutting work hours

Honda wants to cut north American production by 50%, and they’re blaming the latest flooding in Thailand.

Output at all six of its factories in the United States and Canada will be cut in half from November 2 through 10.  Also, they will stop all production in North America for one day on November 11.

Toyota announced they will cut overtime hours at all 13 north American factories, again because of a lack of parts caused by flooding in Thailand.

Business/Economics, International, U.S.

Occupy the World: Elites being told to hoard more Money, as Greek government tries to please its citizens after key politician defects and joins the protestors, bailout loans part of plan to take over governments

“This may be the time not to expand production capacity. It might be better to just hoard the cash.”-John Lonski, Moody’s Capital Markets Group

This statement came after the Greek Prime Minister announced that he will let the Greek people decide if their country will accept the latest bailout offer.  It seems likely they will vote against the bailout.

That move came after a member of the ruling party resigned, effectivly joining the protestors.  This leaves the ruling party with a slim two seat majority in parliament.

The Greek Finance Minister also expressed doubts about what is going on: “I can no longer look at polls where the majority is against the agreement, the majority is against the program, but a majority is also in favor of staying in the euro.”-Evangelos Venizelos, Greek Finance Minister

The move to put the Greek bailout to a vote of the Greek people is causing stock markets to crash around the world.  This is proof that the banking/finance industry WANTS to force Greece (and other countries) to take on bigger debt in the name of being ‘bailed out’:  It actually makes governments more beholden to the private sector (Corporate America).

Now Germany and France have called a meeting between EU members and the IMF.  Reports say that what’s being discussed now is a way to kick Greece out of the European Union: “The situation is so tight that basically it would be a vote over their euro membership.”-Alexander Stubb, Minister for European Affairs and Foreign Trade of Finland

The banking/finance industry claims that if the Greek people refuse the latest bailout loan, then Greece will default, starting a domino affect across Europe and North America.  That might be true, but they might also escape the control of Corporate America.

 

 

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

What Economic Recovery? SAAB sold to China, at a loss

SAAB has new Chinese owners.  The car maker was sold at a loss, after it filed for bankruptcy in September.  SAAB hasn’t made any cars in its factory in Sweden, since April!

SAAB was originally offloaded by GM to Dutch company Spyker (now Swedish Automotive).  Chinese distributor Pang Da Automobile Trade, and auto manufacturer Zhejiang Youngman Lotus Automobile will pay about U.S.$142 million for SAAB.

SAAB joins Volvo in becoming a Chinese owned company.  In 2010 Volvo was sold by Ford, also at a loss, to Chinese company called Geely.

SAAB sales in the U.S. suck, in September only 429 cars were sold.  So far for the year 2011 only 4,612 cars have been sold.  In 2003 SAAB sales in the U.S. were ten times that (40,000 cars)!

 

 

Business/Economics, International, U.S.

Global Economic War: What’s really going on with the possible China rescue deal for Europe? China pushing to be A Number 1, got burned bailing out U.S. banks

That’s right, it wasn’t just U.S. taxpayers and the U.S. central bank (Federal Reserve) that bailed out Corporate America’s big financial institutions in 2007/08.  China Investment Corporation played a part and lost.

So when it comes to bailing out European governments, China’s financial sector is willing but cautious: “The $3 trillion in reserves are the fruits of the hard work of the Chinese people.  We’re willing to work with those European countries in distress for a better solution.  But…we have to be accountable to the people.”-Jin Liqun, China Investment Corp

Both the U.S. media and the Chinese media are reporting that China wants nit picking details concerning any European bailout.  The Chinese think the European governments haven’t done enough when it comes to austerity measures.  They want to see more cuts, and more taxes imposed on the European people.

But there’s another reason China is taking its time with agreeing to any European bailout; they want to use the situation to bring China closer to being the A Number 1 economic and financial authority throughout the World: “It will also help China gain a greater say in the global financial system.”-Zhong Wei,  Financial Research Center at Beijing Normal University

In fact, today, October 28, China called on the G20 to become more united (under China?): “The opinions of emerging markets and developing countries should be taken seriously no matter when we talk on the reform of the international currency system, the global economic governance, or the price of commodities.  These countries’ presence and say should be increased.”–Cui Tiankai, Vice Foreign Minister of China

The next Group of 20 meeting is November 3-4 in the southern French city of Cannes.

 

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

What Economic Recovery? Whirlpool announces big layoffs, will close factories around the world

“…recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs.”, that’s what Whirlpool Chief Executive Jeff Fettig says about the economy, basically it stinks!

As a result Whirlpool sales are down, and they have to layoff 5,000 employees, and shut down their Arkansas refrigerator factory!

Whirlpool joins the growing number of big businesses that say: “During the quarter, we experienced weaker than expected global industry demand and elevated material costs.”

No sh*t Sherlock, Corporate America keeps laying people off.  Ironically even Whirlpool CEO Fettig blames Corporate America’s job cuts!

Whirlpool will also close a dishwasher factory in Germany, moving production to Poland (Poland is a member of the European Union, but does not use the Euro, they use their own money).

The result is not only lost jobs, but if you need a new home appliance in the near future it’s gonna cost you more; Whirlpool is jacking up their prices (hello inflation).

 

 

 

 

Business/Economics, U.S.

Occupy America: Know your enemy; the top 1% are money sucking vampires. 1.4 million vampires are sucking the money out of more than 300 million people!!! Are you under their spell?

“The top 1 percent of households took a bigger share of overall income in 2007 than they did at any time since 1928.”-Annie Lowrey, New York Times

Here’s a shocker; in New York City the top 1% average U.S.$3.7 million in income, according to Christopher Ketcham.

The IRS and the CBO have already proven with their data that the top 1% have been acting like money vampires, sucking money out of our economic system.

What kind of jobs do the 1% have?  According to a CNNMoney report, 8.4% are attorneys, 14% are financial professionals, 15.7% are medical professionals, and 31% run Corporate America (executives, managers and supervisors).

Mother Jones has a more detailed breakdown.  MJ also shows that most of the wealth of the top 1% is invested in paper (stocks, securities, trusts, equities),  not traditional real estate.

AlterNet gives top five astounding facts about the 1%: “1. The Top 1 Percent of Americans Owns 40 Percent of the Nation’s Wealth, 2. The Top 1 Percent of Americans Take Home 24 Percent of National Income, 3. The Top 1 Percent Of Americans Own Half of the Country’s Stocks, Bonds and Mutual Funds, 4. The Top 1 Percent Of Americans Have Only 5 Percent of the Nation’s Personal Debt, 5. The Top 1 Percent are Taking In More of the Nation’s Income Than at Any Other Time Since the 1920s.”  AlterNet breaks down each of their claims with facts.

So how many of these money suckers are there, how many vampires make up the 1%?  Approximately 1,400,00 (according to the IRS).  Compare that to the total U.S. population of  308,745,538 (according to 2010 U.S. Census Bureau data).  1.4 million vampires are sucking the money out of more than 300 million people!!!

And what about raising taxes on the top elites?  According to IRS data, reported by Bloomberg Businessweek, the top 400, out of the 1.4 million money suckers, actually paid less taxes in 2007.  These super elite vampires (the Count Draculas of the money suckers) saw their effective tax rates fall from nearly 30% in 1995 to under 17% in 2007!!!

I still don’t understand why there isn’t more of the 99% joining the Occupy America (OWS, Occupy Wall Street) movement, unless they’re under the spell of the money sucking vampire elites known as the 1%.

 

 

Business/Economics, U.S.

Occupy America: Hundreds arrested, police demand media stop coverage of violent crack downs, politicians join protestors

October 25, in Oakland, California, police asked the live media coverage to shut down, right before they attacked protestors with tear gas and flash bang grenades.  Later, after it got dark, police simply turned off the street lights so the media could not see the continuing attacks on the protestors.  So far 140 people have been arrested.

In Atlanta, Georgia, about 50 people were arrested.  Police action there was restrained, but that’s because several politicians (State Senator Vincent Fort, and former Atlanta city councilman Derrick Boazman) had joined the protestors, and apparently protestors voluntarily gave themselves up for arrest. Senator Fort was among those arrested.

 

Business/Economics, U.S.

Class War: U.S. government office proves that the Elites have been waging economic war on the rest of us

“The share of income going to higher-income households rose, while the share going to lower-income households fell.”-CBO Trends in the Distribution of Household Income Between 1979 and 2007

The U.S. Congressional Budget Office released data that showed the top 1% of the population saw their incomes jump 275% over 28 years: “For the 1 percent of the population with the highest income, average real after-tax household income grew by 275 percent between 1979 and 2007.”

The next highest income earners, the top 19% of the population (not counting the top 1%), saw their incomes go up 65%, “…much faster than
it did for the remaining 80 percent of the population…”.

As you go down the income ladder, the majority of workers (which are at the bottom of the scale) actually saw their income drop 2% to 3%: “All other groups saw their shares decline by 2 to 3 percentage points.”

This latest data backs up earlier reports from the Internal Revenue Service.  In a 2007 report, the IRS said that incomes for the majority of the U.S. population had actually been dropping since 1986!  They used tax filings to compile their data.

What’s been happening is that the elites have been waging a class war to suck up most of the money in our our economic system.  The top 1% are not trickle downers, they are money hoarders!





Business/Economics, U.S.

North Dakota: Proof that fast oil money destroys Society, can you say Hyper Inflation?

“At first, we were excited about the prospect of bringing in new people and money … but it slammed us so hard, in such a little time that a lot of locals now are kind of resentful. Now we want our town back.”-Deone Lawlar, a 57 year old native of Watford City

North Dakota is viewed as an economic bright spot in the U.S. economy,  because oil companies have recently opened up their capped oil wells, and are pumping like mad.  At first the natives welcomed the money, but not anymore.  With the oil boom not only does fast money come in, but so do hundreds of thousands of job seekers, and North Dakota just isn’t ready.

The result is hyper inflation.  It’s hitting hard right now in the housing sector, specifically rents.  According to CNN: “One bedroom apartments can run around $1,500 a month, while two to three bedroom apartments are often around $3,000.” (Holy crap, I used to live there, and I thought about moving back?)

“People are getting greedy, and we’re losing people who have lived here their whole lives.  It’s hard to make ends meet, especially with two little kids.  How does a nursing home keep up with the oil fields?”-Kristen Pallacheck, Bethel Lutheran Nursing Home, Williston (I used to live in Williston and I can tell you the town was first destroyed by the super WalMart, now after recovering it’s being done in by hyper inflation no thanks to the oil boom)

The oil industry is also destroying the infrastructure; thousands of big rigs and heavy equipment are tearing up roads that were not designed for such loads: “I drive 15 miles to work everyday with my two children and we have about at least two to three near car accidents a week.  The traffic is horrible and our road infrastructure was not ready for the hundreds of oil field trucks that tear it up.  This week alone, there were four semi truck accidents in four days.”-Michelle Falcon-Nelson, who lives in Williston

According to the Williston Police Department, accidents jumped 30%, and traffic misdemeanors increased 30% from last year.  Also, theft, violence, abduction, sex crimes, domestic abuse, has tripled, with 16,495 reports of criminal activities in Williston last year.  This doesn’t sound like the Williston I lived in, back in the middle of the 1970s!  Even with the boom in jobs, and crime, the Williston Police Department still has only 22 officers!

Speaking of the super WalMart that destroyed Williston back in the 1990s, job seekers have turned the parking lot into a campground.  In the CNNMoney video many of those working are making as much as $25.00 per hour, but because there just isn’t enough homes, or apartments, they’re still living in their cars and trucks.  One man said it wasn’t worth it and was leaving.

The oil boom isn’t helping old timers keep their homes either: “I was talking to myself this morning, and I thought, ‘How am I gonna’ feel when I have to shut this door? I sold my house and have to be out by the first of November, and how is it gonna’ feel to walk out of that door?'”-Wanda Goetz, lived in Williston for 61 years

Many wish the oil boom never came: “While the majority of us appreciate the additional revenue the energy industry brings to our community, the problem for a lot of us is that it’s not just our community anymore. We liked it better when it was ‘the middle of nowhere’.”-David Rolfson, lifelong Watford City resident