Tag Archives: economy

Business/Economics, International, Technology

Global Economic War: Japan has a new agressive policy for acquiring Rare Earth Minerals

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.

 

Business/Economics, International, U.S.

Global Economic War: Chinese economists continue to push their government to dump U.S. bonds, says the U.S. has passed point of no return, will continue on a downward spiral, Morgan Stanely agrees

“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

 

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

What Economic Recovery? Chrysler owner Fiat looking to move to Russia

“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.

Business/Economics, U.S.

What Economic Recovery? Moody’s joins S & P’s in downgrading the U.S.

“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)

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

Government Incompetence: Obama says he wants jobs for the U.S., but spends $1.1 million on a Canadian made bus

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.

 

 

Business/Economics, International

Government Incompetence: Spanish taxpayers forced to pay for Catholic Pope’s visit

“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.

 

Business/Economics, International, U.S.

Global Economic War: China sells record number of Yuan bonds, pushing to dominate bond market and influence the Yuan as the New World Currency

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.

Fukushima

Corporate Incompetence: TEPCo knew explosion could occur, but just didn’t want to believe that it would!

In a case of hear no evil, see no evil and speak no evil, a Japanese government investigation into the corporate mind of Tokyo Electric Power Company revealed that officials just couldn’t believe the worse case scenario could happen at Fukushima Daiichi.

TEPCo officials admitted that they discussed the possibility of explosions inside the reactor buildings, but dismissed the possibility as unlikely.

Then, just one day after the 11 March 2011 quake/tsunami, Reactor 1 exploded.  TEPCo officials were focused so much on other concerns, that it took the second explosion, in Reactor 3 on 14 March, to wake them up.

Some government officials conclude that Tokyo Electric officials don’t realize just how dangerous a nuclear reactor can be.

Business/Economics, U.S.

Government Incompetence: Social Security lists 14,000 living people as dead, every year, can you check to see if your really dead?

The U.S. Social Security Administration has been listing as many as 14,000 people, who are alive, as being dead and cutting off payments.

Between 2007 and 2010, 36,657 living people were declared dead.  I wonder if that’s had any affect on consumer spending?

Living people who’re declared dead by the Social Security Administration not only lose benefits, but have to prove they’re still alive.  That can take months.  Until then you won’t be able to make any financial transactions with banks, etc.

Most people find out they’re dead when their checks start bouncing, then their Social Security payments don’t show up.

Some people discover that not only were they declared dead, but the Social Security Administration “lost” their file, forcing the “dead” person to literally start over with the SSA.

The “deaths ” are listed in a Death Master File.  Many genealogy web sites offer a Social Security Death Index search service, that lets you search a person’s history using their social security number.  Maybe you can search for yourself, if you show up you know you’re dead.

Fukushima

Corporate Incompetence: Nuclear Plant workers say Reactor 1 was already melting down even before the Tsunami hit, decreasing radiation levels due to fuel rods being washed away

Many workers who were at the Fukushima Daiichi nuclear plant the day of the 11 March 2011 quake and tsunami, say reactor 1 was already in trouble and possibly melting down, immediately after the 9.0 quake.

“There’s certainly a great deal of evidence that appears to suggest that the first reactor, reactor number one, was melting down by the time the tsunami hit. So, if that’s the case that the reactor was melting down as a result of the earthquake, and not as a result of the tsunami, a nine-point earthquake is something that has the potential to happen throughout Japan, and that would put the reliability and the design safety of all of these reactors in question.”-Robert Jacobs, Hiroshima Peace Institute

Also, Tokyo Electric Power Company has been reporting decreasing radiation levels coming from Pacific Ocean water inlets and outlets.  It’s not a sign they have things under control, because they certainly don’t.  Rather, after 5 months of ongoing nuclear disaster, what’s happened is that the remains of nuclear fuel rods have been washed out into the Pacific Ocean by TEPCo’s continued water injection.

“When you have a fragile structure that’s already suffered a great deal of damage and when you have continual aftershocks at the level of six-point, or there’s been some even higher, what we have now is we have the radioactive core that has melted down into the basement, into the bottom of the containment vessel of these reactors, and if the radiation level is going down, where it’s been monitored inside the buildings, and if the water pressure is going down, and the temperature is going down, it’s not that the radiation is just suddenly going away, it means that the radioactive material, the melted core, is simply moving further away from where it’s been measured.”-Robert Jacobs