Tag Archives: economy

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

No Economic Recovery for the U.S.: eBay striking it rich in China

“Chinese exporters today have a significant price advantage, and combined with eBay’s global reach, it creates a very powerful business opportunity.”-Jay Lee, eBay Asia-Pacific.

California based eBay is seeing huge yuan signs, not dollar signs.  That’s because the online auction and retail site is making big gains in China.

Just a few years back anyone in the U.S. who bought something from China, through eBay, had to wait nearly two months to get their item.  Now it’s taking less than a month (I know, I’ve bought a couple of things from China through eBay).

That reduction in shipping time is helping to boost eBay’s China operation: “Now it takes only seven to 10 days for Chinese products sold through eBay to reach any destination in the U.S.”-Jeff Liao, eBay Greater China. (Personally I haven’t experienced that fast of shipping time)

At the end of 2010, 20% of eBay sales were outside the United States, most of which involved China.  EBay officials predict their Chinese operation to grow an amazing 30%-40% every year!

 

 

Fukushima

Corporate Incompetence: TEPCo throwaway subcontractors contaminated with radiation!

In less than two weeks, four contractors working at the damaged Fukushima Daiichi nuke plant, have been contaminated with radiation.

All four were contaminated by water from the defective water decontamination system.

Two workers were contaminated when they replaced defective parts, the other two were contaminated when water surged out of a valve that was mistakenly left open.

Tokyo Electric Power Company has been constantly criticized for how it handles its contracted employees.  Many former employees claim TEPCo provides no training, and even no protective gear.  One government agency backed up those claims a couple of months ago.

The Japanese government is still waiting for health screenings for hundreds of TEPCo employees, as well as the whereabouts of 200 missing employees.  In one public meeting, Tokyo Electric officials said the missing 200 employees were probably terrorists!

 

 

Business/Economics, International, U.S.

Global Economic War: After raising prices in U.S., GM lowers prices in China, losing out to VW

“The next 12 months look tough.  Incentives brought forward buying in a very dramatic fashion in 2009, 2010, and now we are seeing a lack of pent-up demand.”-Ashvin Chotai, Intelligence Automotive Asia

General Motors can’t stand the heat of the competition in China, so they’re sacrificing profit margin by dropping their prices, on minivans.

“GM does not rely on the minibus for profit, they only contribute volume.”– Jenny Gu, JD Power & Associates.

GM might not rely on minivan sales for profits in China, but they’re sure taking the competition serious.  GM’s sales of minivans, in China, dropped 3% this year, so far.  That’s important when you realize that China, not the United States, is now GM’s largest auto market.

The minivans that GM sells in China, are made in China, not the U.S.  One in eight vehicle sales in China are minivans.

It looks like VolksWagen is taking up the slack in GM’s lagging Chinese made minivan sales.  GM sold 1.27 million vehicles in China in the first half of this year, compared with VW’s 1.1 million.  This means VW could soon overtake GM’s number one foreign car maker position in China.

 

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? East Idaho Salvation Army declares “food crisis”, 20% of Idaho kids going hungry as Idaho politicians slash and burn social services

“We’ve had an increase in requests for that type of service, and so our food supply is dwindling rapidly.”-Brenda Ames, Pocatello Salvation Army

A recent survey by Feeding America revealed that the economic situation in Idaho is much worse than elected leaders claim.  At least 20% of Idaho kids do not know where their next meal is coming from.

“Children are aware that the parents are struggling to feed them. They don’t know if there is enough in the house for breakfast, enough food for dinner.”-Joye Jones, Idaho Food Bank Pocatello Branch

The problem is made worse by the facts that because more people are making less money, donations to food banks are down, and, the state of Idaho has been cutting federally funded social programs.

The state with the least food insecurity is also the state with the best economy; North Dakota with less than 12% of kids going hungry.

 

Fukushima

Tropical Storm Talas heading for nuclear damaged Japan, will become a Typhoon before landfall

Tropical storm Talas, directly south of Japan, is heading right for the center of the nuclear damaged island nation.

It’s predicted that by 29 August 2011 Talas will be a category 1 typhoon.  Japan is still recovering from the 11 March 2011 quake and tsunami. Also, the damaged nuclear plant Fukushima Daiichi could get hit.

Business/Economics, U.S.

Corporate Incompetence: FDIC sues failed bank executives, board of directors were the cause of Georgia’s biggest bank failure ever, more proof that the bad economy is the fault of Corporate America

In 2009, Silverton Bank, in Georgia, failed.  The FDIC spent $385 million taking over the bank, it was the biggest bank failure in Georgia’s history.

Now the FDIC is suing the former board of directors, for gross incompetence.

The FDIC alleges that Silverton executives engaged in “extravagant spending on unnecessary items”, with “a complete disregard of a declining economy.”  Also,  they accuse the bank’s top dogs of “robotically voting for approval of transactions without exercising any business judgment.”

Business/Economics, International, U.S.

What Economic Recovery? Obama screws 400 Merchant Marines out of a job

“This has literally flabbergasted the American maritime industry.  The idea was to create American jobs and help the economy.  But all the profit from the sale of the oil has gone to traders and oil companies and all the profit from movement of the oil has gone to foreign shippers and crewmen, and that’s galling.“-Christopher Coakley, The American Waterways Operators

In the name of a national emergency, President Obama has waived U.S. Merchant Marine Law, and is allowing foreign ships to carry U.S. oil supplies.

About a month ago Obama decided that the situation in Libya was threatening world oil supplies, so he decided to release 30 million barrels of oil from the U.S. strategic reserves.

Under the U.S. Merchant Marine Act of 1920: “Section 27, better known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S. flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The purpose of the law is to support the U.S. Maritime industry.”-Wikipedia

Obama decided the situation qualified as a national emergency, which allows him to wave the Jones Act.

According to U.S. merchant marine officials, Obama’s decision cost at least 400 U.S. jobs.

 

Business/Economics, International

Global Economic War: German government spliting up, growing numbers of leaders criticize Merkel’s economic policies

Recently, the President of Germany criticized German Chancellor Angela Merkel for going along with the European Central Bank in bailing out Greece, and other countries in economic trouble.

“That is asking for trouble in the long run and can only be tolerated in the interim.” and “I consider the sizeable purchase of individual states’ bonds by the European Central Bank to be legally questionable.”-Christian Wulff, German President

The statements were made to a group of economists.  What’s unusual about Wulff’s statements is, for one the office of President in Germany is ceremonial, and secondly Wulff is a member of the same political party as Angela Merkel (Christian Democratic Union).

Wulff is not the only Christian Democratic Union member upset with current policies.  Fellow CDU member, and head of the parliamentary Home Affairs Committee, Wolfgang Bosbach, said: “We should take the president’s comments seriously, it’s also a question of being fair to generations of people.”

Also, former Chancellor Helmut Kohl, Merkel’s mentor, has blasted Merkel’s policies: “We must take care not to gamble everything away. We must urgently return to our former dependability.”

German politicians are starting to mirror public polls, which show many Germans do not want their government bailing out anymore countries.

 

 

Business/Economics, International, U.S.

What Economic Recovery? German Auto Makers making big profits, but economists say the party is over

The Germany auto industry has seen skyrocketing sales this year, mainly in China and India.  But a Center Automotive Research at the University of Duisburg-Essen, Germany, study predicts dire sales in the near future.

CAR boss Ferdinand Dudenhöffer, says the growing debt problems of Europe, United States, and even Japan, will eventually drag down the world economy.  He predicts a “significant fall in growth” for the German auto industry.

Germany has the strongest performing car makers in the world.  According to the Center of Automotive Management, VW holds 1st place, Daimler 2nd, and BMW holds 4th place (Korea’s Hyundai holds 3rd).

However, Center of Automotive Management predicts German car sales in China will soon drop off.  So far Germany has seen 20% to 30% sales gains year after year.  CAM analysts believe that in the near future German car makers will be lucky to see 5% sales growth in China and India.

5% sales growth will not be enough to make up for predicted loses in other markets (like the U.S.): “The gains that will be made in China and India won’t be able to compensate for the slight losses in other markets.”-Ferdinand Dudenhöffer, Center Automotive Research