Tag Archives: economy

Business/Economics, International, U.S.

What Economic Revovery? Japanese companies report double dip decline in profits, predicts continued declines into next year, blames the crashing U.S. dollar

Major Japanese companies are reporting a second quarter of declining profits.  And that’s before taxes!

SMBC Nikko Securities has compiled the profit results of more than 1,200 companies.  Overall profits are down by 12%.  They also predict profits will continue to fall into next year, by at least 2%.

Business analysts in Japan blame the decline on lack of electricity, due to more than half of Japan’s nuclear plants being shut down, and the crashing U.S. dollar.

As the U.S. dollar falls, the yen is rising in value, making Japanese products more expensive for foreign customers to buy.  Most of Japan’s economy is based on exporting products to other countries.

Japan is also the second largest foreign holder of U.S. government debt.

 

Idaho, U.S.

What Economic Recovery? Idaho economic forecast good on one hand, bad on the other, and completely dependent on a U.S. economic recovery

The Idaho Division of Financial Management revised its projected economic outlook, no thanks to the recent U.S. debt limit debacle.

Officials still project increased tax revenues, but now think employment will be down.

Some reasons they hope tax revenues are up; previous tax collections were higher than predicted, and they expect personal income to increase (somehow).

The drop in employment is expected in the construction industry.

These latest revisions are assuming the U.S. economy actually grows for the rest of the year!  If the U.S. economy continues to go south, forget it.

Business/Economics, Idaho, U.S.

Government & Corporate Incompetence: Idaho punishes California’s Molina for screwing up Medicaid payments, some health care providers went out of business

Idaho is still trying to get back $10 million in overpayments, that Molina screwed up when they took over Idaho’s Medicaid payment system in 2010.

Idaho officials say they turned over the payment system to California based Molina Medicaid Solutions, to comply with Federal regulations.

The move cost taxpayers big time, and it shut down a few health care providers.

What happened was that at the beginning of Molina’s take over providers weren’t getting paid, for as long as two months!  Many providers came close to bankruptcy, and a few went out of business.

The state made emergency payments, then Molina went and finally responded by paying the original claims.  The result was double payments!

The state of Idaho is punishing Molina by reducing the amount of money they were originally to be paid.  Also, Idaho is trying to recoup the money from the double payments.

Molina has made improvements to their customer service, but as of this year they still have 10,000 claims pending, with just under 5% being more than a month old.  One northern Idaho mental health provider says her payment claims still get delayed for no reason.

 

Business/Economics, International, U.S.

What Economic Recovery? 2.5 million new jobs, not for the U.S., for Iran

The Iranian government is working to create 2.5 million jobs in the Iranian calendar year 1390 (March 21, 2011 – March 19, 2012).

The Iranian government claims to have the essential human and financial resources to achieve this goal.  Iran created 1.6 million new jobs last year.

To do what the United States government can’t seem to do, Iranian labor unions, and companies, are cooperation with their government.  It’s all part of a strategic 20 year socio-economic plan.  The 20 year plan is broken up into smaller tactical five year plans.  Iran recently started its fifth five year plan, which ends in 2015.

 

Business/Economics, International, U.S.

Israel preparing to let go of United States, finds new supporter: China

Israeli military industries have long had cooperative relationships with Chinese military industries.  Now the Israeli government is making big moves towards wooing the Chinese government.

On August 14, General Chen Bingde, of China’s People’s Liberation Army, met with Israeli Defense Minister Ehud Barak, in Tel Aviv.  Barak visited China two months ago.

The Israelis are trying to win increased support from the Chinese.  Possibly they realize the United States government is flat broke, and can’t continue to give Israel billions of the U.S. taxpayers’ money.

A Jewish commentator, Eran Shayshon, stated, on the same day that General Chen showed up in Israel, that Israel must adopt an “open tent” policy towards the BRIC economies.  BRIC stands for Brazil, Russia, India and China.  They’re the only countries with good economies.

This is the first time a Chinese military official has visited Israel.  General Chen will be there for the next three days.


Business/Economics, International, U.S.

Global Economic War: World Bank says China’s Yuan would make a good replacment for the U.S. Dollar

“The Chinese policy mix includes a tool box of administrative measures … In general, one of the lessons that the United States and others can learn (from China) is that to have supervisory policies for bank regulatory systems can be a useful part of the tool set.”–Robert Zoellick, World Bank president

Zoellick gave a speech in Australia, August 14, and made it clear that China was a shining example of how economic policies should work.  In fact he said that China’s yuan may help the world pull through “a time of danger.”

Zoellick did warn that the current inflation situation, in China, might be tougher to control than Chinese officials think.

The World Bank president also hinted that China’s cooperation with the bank, creating a “catalyst for consensus”, would benefit China in the near future.

Business/Economics, International

China to modify Tight Money Supply policy

China has tightened money supply (monetary policy) in order to control inflation.  Now they will modify it with a “directional loose” money supply.

What they mean is that certain industries will be allowed easier access to financing.  Those industries include agriculture, certain small and medium sized businesses, and construction of low income housing.

Chinese officials hope this new policy will still hold down inflation, without putting a drag on industries.

 

Business/Economics, International, U.S.

Global Economic War: Recent quotes from Chinese officials, commentators, business leaders and professors show China is preparing to distance itself from the United States

“The U.S. has made other economies, including China, partly pay the bill for its recovery.”– Zhang Xiaoqiang, National Development and Reform Commission

“…the global economy is strapped stiff in the chariot of the U.S. dollar.  The United States adopted quantitative easing policies and successfully levitated the inflation level on a global scale.  The country needed the world’s help to solve its debt pressure.  Its domestic economic growth can hardly free it from its debts.”-Ye Tan, National Business Daily

“More than 70% of our products are exported to the U.S. while the rest all go to Europe.  Therefore, the depreciation of the U.S. dollar as a result of an economic recession will have a great effect on us.  The only solution we can think of now is to produce high-end products.  Buyers of these goods usually care less about prices.”-Zhou Mingwang, Yiwu Mingwang Jewelry Company

“The economic situation in the United States and Europe is not going to recover within two or three years, so we will probably reduce the proportion of exports to 50%.”-Zhang Guanjin, Shaoxing Jinyong Textile Company

“It’s like gambling, it’s hard to secure substantial, long-term profits. The only thing we can do is to transfer our factories to the inland regions to reduce costs.”-Chen Xi, Wenzhou Dongyi Shoes Company

“The economic development mode, which is highly dependent on high energy consumption, heavy pollution and resource exhaustion has reached its end in China.”-Dong Dengxin, Wuhan University of Science and Technology.

“We cannot count on the U.S. promise to ensure the security of our assets [reference to the U.S. debt China holds].  We should rely more on domestic demand and become stronger by ourselves.  Don’t worry about any hard landing in China.”-Zhang Xiaojing, Chinese Academy of Social Sciences

Business/Economics, International

Global Economic War: Europe increases tariffs on Chinese products, again

“A series of actions adopted by the EU this year suggests that tougher trade policies adopted towards China may increase the possibility of trade protectionism.”-Bai Ming, Chinese Academy of International Trade and Economic Cooperation

Last November, the European Union put together a five year plan to boost European production.  The plan targets China by imposing and raising tariffs.  The goal is to force Europeans to start buying more expensive European made products by slowing, or stopping the importation of Chinese products.

Earlier this year the EU already jacked up tariffs on Chinese ceramics by 70%!  Now, as part of the five year plan, tariffs will be raised on other inexpensive products coming from China.  Several EU member countries have also boycotted products made in China.

The five year EU plan is known as ‘protectionism’.  If you know your history, protectionism became the main economic policy of many countries, including the United States, prior to the First World War, and prior to the Second World War.

Also, protectionism is the result of bad economic times, like major recessions, or depressions.  The times we’re living in now look more and more like history repeating itself.  What’s next is another World War.  Right now it looks like Europe Union has drawn the line with China, who’s next?

 

 

Business/Economics, Idaho, U.S.

Idaho could become gun maker mecca, the competition is on, support your team!

Several pro-gun states, like Idaho, are hoping U.S. gun makers will settle in their state.

Idaho has even passed a law that exempts guns made in Idaho from Federal gun control laws (Idaho Firearms Freedom Act, aka; made in Idaho gun law).

Now the race is on, between other states that have passed similar laws (like Montana, Utah, Arizona, etc), to see who can woo the most gun makers.  Many of the U.S. gun makers are located in states that have passed strict anti-gun laws.

Humorously Idaho Department of Commerce’s Bibiana Nertney calls guns “recreational technology”.

Unfortunately Idaho officials are trying to claim the state has low or no taxes, uh, I live in Idaho and that’s a lie!  Unless they mean low or no taxes for big companies.  Officials are also pushing the fact that they’ve destroyed unions, which has been proven to be the cause of the drop in overall income in Idaho, which means a lot of people can’t really afford to buy those nice new guns.  That aside, I do agree with another lure officials are using to get gun makers to move here; the right to keep and bear arms!

Idahoans, do your research, help the local economy, contact those gun manufactures on the other side of the country and get them to move to Idaho!