Tag Archives: economy

Business/Economics, International

What Economic Recovery? Germany & France pushing for tax on stock market deals, taking steps to turn the EU into a single economic & political entity

August 16, France and Germany decided against creating and selling Euro Bonds, and came up with another way to help raise money for EU governments; a stock market transaction tax.

French President Nicolas Sarkozy said Euro Bonds would come later, when the economic situation was more stable.  Instead he, and German Chancellor Angela Merkel, are pushing for a new tax (as if Europeans didn’t have to deal with enough taxes).

The new financial transaction tax would affect the purchases made on stock markets.

Merkel and Sarkozy are also calling for more economic and political unity for the EU.  They want EU members to modify their constitutions to reflect commitment to building a strong, more united European Union, and, they want to create a new EU council to oversea efforts to create a more unified EU.  That council will meet twice a year, and have a president who serves a two year term.

Business/Economics, International, U.S.

Government slight of hand & Media Incompetence: GDP numbers continue to get revised donward, after being publicly reported, U.S. no better off than EU

The U.S. Bureau of Economic Analysis says the GDP for the second quarter of 2011 was a stagnant 1.3%.  But what some media outlets didn’t report was that the previous quarter was revised downward from 1.95% to 0.4%!

This kind of slight of hand has been going on for years now.  It turns out that real GDP has been much lower during this whole recession/recovery BS.  Don’t be surprised that the second quarter GDP numbers get revised downward when the U.S. Bureau of Economic Analysis reports the 3rd quarter results.

The revision of the 1st quarter, down to 0.4%, shows that the United States is no better off than the European Union, which is in real big trouble.

Germany hit a surprising low of 0.1% GDP.  France, the second biggest EU economic powerhouse after Germany, flatlined at 0% GDP!  For the whole of the EU Gross Domestic Product was only 0.2% for the second quarter.

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? U.S. home construction down again, no recovery in sight

“This range leaves us at the lowest levels since the series began in 1959. While monthly volatility is likely to continue, no real recovery looks to be on the horizon.”-Jill Brown, Credit Suisse

August 16, the United States Census Bureau reports housing starts fell 1.5% in July, and permits to build new homes fell by 3.2%.

The biggest drop came in what’s called “groundbreakings” of single family homes, down by 4.9%.

The Census Bureau blames the declines on too many existing homes on the market, no thanks to the big banks foreclosing on so many home buyers.

Just last week, Idaho officials downgraded their economic forecast, with one factor being a decline in construction jobs.

Business/Economics, International

What Economic Recovery? Europe continues to stagnate, media still calls it ‘slow growth’, Germany hit hard

The European economy is still stagnating, a GDP (gross domestic product) of 0.2% for this past quarter.  That’s a drop from 0.8% in the first quarter of 2011.

Mainstream media continues to call such numbers “growth”.

Europe reports their GDP as a quarterly average.  The U.S. reports GDP as a yearly average.

Germany, the economic powerhouse of the European Union, got slammed.  Their GDP fell to 0.1% for the second quarter 2011!

German officials blamed, as usual, German shoppers, but, they also blamed investors.  Not only are shoppers shopping less in German stores, but investors are investing less into German companies.

 

 

Business/Economics, U.S.

What Economic Recovery? WalMart says the economy still sucks, 9th straight quarterly decline in sales, blames you!

August 16, WalMart reporting their sales have dropped for the 9th straight quarter!  And that’s with higher sales than the same time last year!

WalMart blames us shoppers!  Just like most of Corporte America, WalMart says we shoppers aren’t doing our job spending money we don’t have!

To be fair, WalMart execs realize the bad economy has something to do with us shoppers not spending money: “We remain concerned about the economic pressure on our customers and the uncertain impact it can have on their shopping behavior.”-Bill Simon, CEO

Bill Simon’s statement also shows ignorance when he says a bad economy has an “uncertain impact” on shopping.  Hello, mister Simon, bad economy means no money, no money means a no shoppin’ ina you store!

This past quarter includes the coveted Back to School sales.  Back to School sales are the second most important for retailers, after the November/December holiday season.  Guess what, their Back to School sales sucked!

 

 

 

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.