Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? Japan to help bailout Greece, it’s an effort to save the Japanese car industry

September 27, Japan’s Finance Minister Jun Azumi, said Japan is ready to help Greece, possibly by buying more Greek government bonds.

However, Japan is a little cash strapped itself and is hoping the Europeans do something quick, to turn around the collapsing European economy. The reason; Japan’s car industry is relying on a European, as well as U.S., economic recovery.

Chairman Toshiyuki Shiga, of the Japan Automobile Manufacturers Association, said that the falling value of the Euro, and the U.S. dollar, is driving up the value of the Japanese yen, which is making Japanese cars to expensive to sell.

Most of Japan’s national income is made by selling products to other countries (exports), and since the March 11 disasters the yen has been going up in value causing huge drops in demand for Japanese products.

Japan is hoping to see the Euro and U.S. dollar go up in value, which would make Japanese products more affordable on the world market.

Business/Economics, Fukushima

Government Incompetence: Japanese officials decide to check beer & wine for radiation!

27 September 2011, Japan’s National Tax Agency has just now realized that all alcoholic drinks coming from the Fukushima area are probably contaminated with radiation.  Even so, testing on beer, wine/sake will not take place until next month!

Mandatory testing will be done at all beverage factories within 150 km (93 miles) of the Fukushima Daiichi nuclear plant.  Random testing will take place at factories outside the 150 kilometer radius.

Along with the national government, six major cities, including Tokyo, will test water meant for use in making beer and wine.

Rice and barely, used in beer and sake, have already tested positive for cesium contamination.

International

United Police Kingdom: New law; no more demonstrations, period

“It is an attack on the basic democratic rights of working people in this country.”-Patrick O’Regan, Workers’ Revolutionary Party

The British government has created a new law, under the guise of stopping militant right wing groups from demonstrating: No demonstrating.

Officially the law is in effect for only 30 days, and was requested by Scotland Yard.  The police feared the militant right wing demonstrators would cause violence.

The problem is the law applies to everyone, not just militant groups.  Anyone marching can be arrested, fined, or even imprisoned.

Activists say the new law covers more than demonstrating: “They are talking about area curfews, they are talking about shutting down Facebook [and other] social network sites. They are talking about dictatorial civil war measures because what they are doing in Britain is creating a historic change, in which inevitably the majority of Britain will oppose them.”-Patrick O’Regan, Workers’ Revolutionary Party

Other activists say this is part of the government’s tippy toeing towards total authoritarianism: “Just in terms of where we are at the moment with the process of austerity being pushed through by the government, trade unions are one of the major blocs opposed to that. Public order legislation does tend to be used against striking workers.  That has been very clear and there have been some recent examples of that; people being pulled off the picket lines.  And that obviously weakens any resistance to the cuts.”-Richard Seymour, Socialist Workers Party

Business/Economics, International, U.S.

Government Incompetence: U.S. giving away military equipment in Iraq, proof that spending tax money on guns instead of butter is a losing investment

“It’s all sunk costs, it’s money that we spent and we’re not going to recoup.”-Paul Eaton, retired U.S. Army Major General

The United States spent over U.S.$2.4 billion on building posts in Iraq, reports the Congressional Research Service.  Major General Thomas Richardson told reporters last month that the U.S. had already given away equipment valued at a total of around $247 million, just last year. Another $157 million in materials were handed over in the time before President Obama’s withdrawal of troops officially began.

Apparently the U.S. turned down offers from Israel to buy the equipment.

Don’t think any further U.S. troop withdrawal from Iraq will reduce U.S. government spending of taxpayer money on Iraq: The U.S. Senate Committee on Foreign Relations revealed that the U.S. State Department is looking to spend upwards of $30 billion on Iraq over the next five years.  U.S. embassy in Baghdad already houses thousands of civilian officials and troops and contains 21 buildings in a space of over 100 acres. The U.S. military operates less than 40 bases in Iraq today.

Business/Economics, International, U.S.

What Economic Recovery? Before you blame China for job losses realize that China buys more U.S. made products than any other country

“Legislation that would increase tariffs on imports from China is unlikely to create any incentive for China to move expeditiously to modify its exchange policies. Rather, it would likely have the opposite effect and result in retaliation against U.S. exports into China.”-USCBC statement

The latest numbers show that not only does China hold the most U.S. bonds of any other foreign country, but China is also the biggest buyer of U.S. products!

According to the United States China Business Council (USCBC), which represents U.S. companies doing business with China, there was a U.S. $76 billion increase in U.S. products sold to China between 2000 and 2010!  So maybe we need to rethink the growing desire to slap large tariffs on Chinese products?

The USCBC also points out that even if Chinese made products stopped flowing into the U.S. it would not mean a return of U.S. jobs: “Much of what we import from China replaces imports from other countries, not products we make in the U.S. today.”-Erin Ennis, USCBC

So the United States finds itself in a conundrum: U.S. corporations love to ship off U.S. jobs to China.  China holds a lot of U.S. government debt.  China buys the most U.S. made products of any other country.  China is in a real good position to really hurt the United States economically if the U.S. government does anything to reduce Chinese made products coming in, or to reduce U.S. corporations from shipping off more jobs.  Sounds to me like this is proof of the short sightedness of our corporate and government leaders!

Business/Economics, International, U.S.

What Economic Recovery? U.S. airline pilots leave for jobs in China, being able to speak Chinese not required, but it sure helps

“I had been doing the same job for 20 years and have another 15 years to go.  I said to myself, ‘It’s too boring. Let’s do something else for a few years and then come back’.”-Roy Weinberg, Spring Airlines

Weinberg, quit his job with US Airways and moved his family of four to Shanghai, where he now works for Spring Airlines.

He is not alone. Many of his aviator friends are now flying for airlines in Chengdu and Beijing.  By the beginning of 2011, China was home to at least 1,300 foreign flight captains, according to the Civil Aviation Administration of China.

By 2015, China’s aviation industry is expected to need 18,000 more pilots, according to China Business News.  The reason why China is in short supply of airline pilots is that it takes ten years in China to become a qualified pilot.

A relatively young U.S. pilot can make decent money; Spring Airlines offers foreign pilots from $150,000 to $160,000 a year after taxes.

There is a major problem, most air traffic controllers in China don’t speak English: “What happened to me many times is that everybody around me is getting commands in Chinese, and I’m the only English speaking (pilot) in the air.”-Roy Weinberg, Spring Airlines

Business/Economics, U.S.

Class War: Protesters continue to pound the pavement in front of Wall Street, main stream media criticizes, youth unemployment higher in U.S. than in Egypt

September 23, I have to admit that most of the pics coming out of Wall Street show what look like young hippie wannabes (there are pics of old women wearing yellow ponchos that read “Granny Peace Brigade”) but what else are they gonna do?

When a society has such a high unemployment rate for young people this is bound to happen.  The U.S. Census Bureau says unemployment for young adults is 44.7%!!!

Young people led the revolution in Egypt.  What’s the unemployment rate for young people in Egypt?  According to a February 2011 report by the International Monetary Fund, 25% of Egyptian youth are unemployed.  Mmmm, and there’s 44.7% of U.S. young adults unemployed?

Yet the main stream (corporate controlled) U.S. media continues to ignore the Wall Street protesters, most likely hoping they’ll just go away.  Some newspapers are criticizing the protesters.

On September 21, an Indiana University newspaper called the Wall Street protests the “Ultimate fail”, and accused the protests of being instigated by Canada.

Also on September 21, the Associated Press wrote “What, exactly, they are protesting is somewhat unclear.”, then went on to list the ‘demands’.

On September 22, the Post Chronicle even blamed Barack Obama!  “With millions of Americans unemployed, and millions of others losing their home and their savings, the almost constant anti-capitalist rhetoric — about Wall Street and corporate “fat cats” and “billionaires and millionaires not paying their fair share” — by elected leaders such as President Barack Obama, Senator Harry Reid, Congresswoman Nancy Pelosi and others is starting to take it’s toll.”

So this writer at the Post Chronicle blames politicians, who’re actually very Wall Street friendly, for the Wall Street protests, despite the fact that the very same writer mentions the true reasons for the protests: “…millions of Americans unemployed, and millions of others losing their home and their savings…”

Classic case of not seeing the forest because of the trees.

Yahoo even blocked protester’s emails from getting through: “People trying to email information about the Wall Street protests on Monday using Yahoo mail, found themselves on the receiving end of messages from Yahoo claiming ‘suspicious activity’.”

My son admitted to me that if it wasn’t for the fact that he finally got a job, after more than a year of looking for one, he’d be on his way to join the protesters on Wall Street.  If corporate America doesn’t want people protesting in front of their Mecca, the answer is very simple, give them jobs!!! 

 

 

Business/Economics, International, U.S.

Census Bureau shows the United States is no longer the prefered destination for immigrants

September 23, according to the U.S. Census Bureau, the number of legal immigrants moving to the United States dropped off after the year 2000.

According to the American Community Survey (ACS) the percentage of “Foreign Born: Entered before 2000” immigrants who responded to the survey (includes those who became U.S. citizens and those who still aren’t) was 65.3%.

The percentage of “Foreign Born: Entered 2000 or later” immigrants drops to 34.7%.

Business/Economics, U.S.

What Economic Recovery? No Xmas cheer at Toys R Us

September 22, Toys R Us announced they will not hire as many holiday employees as in the past.

“It looks to me like they are preparing for lowered spending and will be very cautious about hiring people until they really know they need them.”-John Challenger, analyst

Last end of year holiday season, Toys R Us hired about 45,000 temporary employees. This year Toys R Us will be hard pressed to hire 40,000.