President Obama’s budget chief Jacob Lew has ordered government agencies to submit budgets that are at least 5% less than the past fiscal year’s budgets.
It was also suggested that the different government agencies find ways to cut another 10% through out the next fiscal year. This is part of the Debt Limit Deal (Budget Control Act of 2011) passed a few weeks ago.
A new survey shows that most U.S. citizens on Medicare don’t realize just how much they’re paying out of their own pocket.
The study looked at “specialty tier” drugs under the Part D prescription drug plan. Specialty tier drugs are mainly expensive name brand drugs.
At least half the people surveyed thought only a co-pay was required. Specialty tier drugs require a co-insurance, not just a co-pay. Also, most people greatly underestimated how much they would have to fork up out of their own pockets, even with the specialty tier coverage.
The study was conducted by NERA Economic Consulting.
“Working hard, eight hours, we have no opportunity to speak at work. If I speak, my supervisor comes to me and says, ‘Don’t speak anymore, or I’ll send you home.'”-Yana Brenzey, 19, of Ukraine, foreign exchange student
August 19, foreign college students are protesting in Palmyra, Pittsburgh and Philadelphia, saying the U.S. State Department student exchange programs are really a form of slave labor for U.S. corporations.
Friday’s protests are focusing on the candy maker Hersey, but other companies across the United States are involved.
Foreign students say the work programs that are part of the student exchange programs, do not provide them with money to help them with money to help cover their expenses while in the U.S. going to college. Instead the corporations deduct from their pay all kinds of expenses, which leave the students with little or no money left over. Essentially companies like Hersey end up with free labor.
Exchange students had to kick back upwards of $6,000 to the California-based Council for Educational Travel USA (CETUSA).
An organization called National Guestworker Alliance is helping foreign students organize the protests, and has even got federal officials promising an investigation. This after students in New Orleans reported being “made captive” by their employers. Protests in New Orleans started on August 17, where’s the main stream U.S. media?
Most of the media coverage of these protest are in local newspapers.
Japan says it will offer less developed countries money, and other aid, to help them develop infrastructure and industries, in exchange for exclusive mining rights for rare earth minerals.
China has been using the same tactic for decades. Japan says they’re adopting such a policy in order to compete with China.
Rare earth minerals are used in high tech products like cell phones and hybrid cars. Because of the rapid development of high tech devices, and the increasing global dependence on them, rare earth minerals could become the “oil” of the 21st century.
“China should move progressively to cut its holdings of U.S. Treasury bonds and use it as leverage to ask Washington [DC] to further open its markets, including the high-technology sector, to Chinese investment.”-Xiang Songzuo, University of China
U.S. Vice President Biden is in China, trying to reassure the Chinese government that the U.S. will “…ensure the safety, liquidity and value of U.S. Treasury obligations for all of its investors.”
Chinese economist say it’s too late, the U.S. economy is too far gone: “But there is very little room left for the U.S. government to revitalize its economy. Low growth and high unemployment will be regular features of the U.S. economy in the future.”-Wei Liang, China Institutes of Contemporary International Relations
Even officials with Morgan Stanely, an international finance company based in New York City, say the United States has lost all economic legitimacy: “The U.S. debt crisis has taken a serious toll on China’s confidence in Washington’s [DC] economic stewardship. China is no longer willing to risk financial and economic stability on the basis of Washington’s hollow promises and tarnished economic stewardship.”-Stephen Roach, Morgan Stanley Asia
“Fiat is intensively examining St. Petersburg along with Nizhniy Novgorod. No decision has been made yet. Most likely the Italian automaker will select a green field site. We expect that they will make a decision on the site in the fall.” –Dmitry Levchenkov, Russia’s Economic Development Ministry
Fiat, the owner of Chrysler, is actively looking to start factories in Russia, to build cars and spare parts. The reason? Car sales are booming in Russia.
Just in the first 8 months of 2011, Fiat saw a 59% increase in sales in Russia. That’s impressive when you realize that most Russians are hesitant to own a Fiat: “Few Russian drivers opt for Fiat because the service and spare parts are difficult to find in Russia. However, if Fiat builds an assembly facility and handle the production and create a unique distribution channels with service centers its world popular five door hatchbacks could invade the Russian cities frequently.”-Alexandr Tsipin, journalist
Fiat has already made deals with Russian car maker GAZ. Fiat hopes to build 120 thousand cars per year in Russia.
The major reason for Fiat’s huge jump in sales, they’re the cheapest foreign car in Russia.
I wonder what Fiat will do with it’s Chrysler operations in the U.S. and Canada? Canadian labor unions have been warning that Fiat will shut down Chrysler factories.
“The U.S. economy needs to grow 2.5% to 3% per year to add jobs fast enough to keep the unemployment rate stable. This will not happen soon.”-Mark Zandi, Moody’s Analytics
Moody’s Analytics downgraded projected GDP for the Untied States. One month ago they projected GDP to be at a yearly average of 3.5%, for the rest of 2011. Now they say the U.S. will be lucky if it can hit 2%.
Moody’s also says the chance of an official double dip recession is now 1 in 3. They also said every 100 point drop in the Dow Jones increases the chances of a double dip recession.
They pointed out that the current job creation rate in the United States falls way short of employment goals for 2012: “Employers will have added about 1.25 million jobs between the fourth quarters of 2010 and 2011, and 2 million more by the fourth quarter of 2012. By then, U.S. employment will still total some 1 million less than expected.”–Mark Zandi (keep in mind he’s talking about projected job creation, there could be more jobs created, or less)
It’s called Ground Force One, a $1.1 million dollar bus made in Canada, and used by the Obama administration.
There’s also a Ground Force Two, because your government bought two of these behemoth buses. And your taxes paid for them!
Ground Force Two is actually being called Stagecoach. But don’t blame Obama, the second bus will be used to transport the Republican candidate for the 2012 election campaigns.
Officially the public is being told the buses came from a Tennessee company, but ABC News found out they were built in Canada, and only modified in Tennessee.
“We criticize this scandalous show at a time of such a terribly distressing economic situation, with entire families unemployed.”-Evaristo Villar, Christian Networks
The Pope is visiting Spain, and the taxpayers are paying for it, to tune of U.S.$70 million to $150 million. This comes at a time when 20% of Spaniards are unemployed.
One protestor called the Pope’s visit a “huge Christian circus”.
72% of Spaniards claim to be Catholic, but that’s not stopping younger Catholics from joining the protests. However, Catholics have also joined riot police in attacking protestors: “I was at the protest with my father, and one of the Catholics punched me in the face.” 18 year-old protester
When you break down Spain’s unemployment by age, 45% of teenagers and young adults are jobless.
A record amount of Chinese government bonds have been issued in Hong Kong. And investors are buying them up.
Several types of yuan based bonds, which mature between 2 and 10 years, were sold, totaling U.S.$3.1 billion, a record.
This was the third Chinese yuan bond issue in Hong Kong.
Demand was so high for this latest issue of yuan bonds that orders had to be stopped. There were 4.6 times more demands to buy the yuan bonds than there were yuan bonds to sell!
Analysts said China plans to issue more yuan bonds, with the goal to help promote the yuan as the next world currency, replacing the U.S. dollar.