Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? World Bank says things are gonna get worse, public protestors are the new terrorists, China the new financial power house

“In the past couple of weeks, the world has moved from a troubled multi-speed recovery to a new and more dangerous phase.”-Robert Zoellick, World Bank president

In an interview with Australian media, the president of the World Bank says things are not getting better, and anyone who complains about the drastic cuts in their taxpayer funded social programs is a terrorist!

“We are in the early moments of a new and different storm, it’s not the same as [the] 2008 [financial crisis].”

Zoellick says the debt situation in Europe is much worse than what’s being reported.  He also says governments took too long to take action.  Because of the slow response, of Europe and the United States, to deal with economic and financial problems, the world’s financial power is rapidly moving in China’s favor.

Zoellick also said that public protests over drastic government cuts in social programs are a threat, and he agrees with government crack downs on protestors: “I believe what British Prime Minister David Cameron is doing in the U.K. is really necessary.”

So you see the new terrorists in the new global economic war, is you!  


Business/Economics, International

Iran encourages local neighborhood Farmer’s Markets, attemps to keep food prices down in Iran

During Ramadan the Iranian government is officially encouraging local Farmer’s Markets, called Direct Markets in Tehran.  This is in response to consumers demand for lower food prices.

However, comments from shoppers have been mixed.  Some Direct Market shoppers claim the prices are cheaper and they can find what they need, while an almost even number of people said the opposite.  One man said the price difference was only slight.  It just proves the saying that you need to “shop around” for the best price.

During Ramadan Muslims fast during the day, and eat after the sun goes down.

Business/Economics, International, U.S.

What Economic Recovery? Global Hyperinflation, incouraged by the U.S. and Europe, China is the only one doing the right thing

“While the markets can operate on false scenarios for a significant period of time, reality always wins in the end. When it does, the situation can get quite ugly and all the profits gained from a belief in an unsupportable viewpoint can evaporate over night. At the moment, there is a lot of denial about inflation and investors should be paying attention to this.”-Daryl Montgomery, Independent Trader

People need to start studying up on basic economics.  What the G7 and the U.S. Federal Reserve are doing will lead to catastrophe, for the little guy.

After an emergency meeting on August 7, the Group of 7 most industrialized countries decided to deal with the growing debt crisis, of Europe and the United States, by flooding the markets with cash (liquidity).  One way to do that is to buy massive amounts of bonds, which is what the European Central Bank (ECB) did.

Following the G7 meeting the ECB began buying up Italian and Spanish bonds, even though the week before Germany was advising against such a move, because Italy and Spain were too bad off to be trusted to pay them back.

Injecting cash into markets, like buying up bond issues, can have the same result as overprinting money; hyperinflation.  The most recent case of hyperinflation took place in Zimbabwe.  It lasted from 2004-2009, and is considered the second worst case of hyperinflation in the world.  It happened after their economy crashed, and the government responded by overprinting money  (by the way the U.S. has been overprinting money for years now).

In a statement, the G7 (which includes the United States) tried to say their move to flood markets with cash will work as long as government fiscal policy remains “disciplined”.  There was no clarification what they meant by “disciplined”, but surely they mean that as long as governments, mainly European, continue to cut spending and increase taxes to pay their government debts, then hyperinflation should not be a concern.

Why would that be? Possibly because so many people are out of work, which reduces the flow of money in the consumer markets, and, increased taxes reduces the amount of spending money a consumer, who still has a job, has.  Also, cutting government spending is another way to reduce liquidity in the consumer markets.

But flooding markets with cash isn’t the only way to create hyperinflation, keeping interest rates low can do the same thing.  And keeping them artificially low for long periods of time will only make things worse.  That’s exactly what the U.S. Federal Reserve (a privately run central bank) is doing.

On August 9, the Federal Reserve (incorrectly referred to as The Fed, incorrect because it’s not a government agency. The Fed, or Feds, usually refers to a government agency, in fact it used to refer to the FBI), announced it would keep interest rates low, again.  Not only that but they would so so until 2013, with the possibility of lowering it even more.

The interest rate, that the mainstream media is always talking about but surely doesn’t understand, is the Federal Funds Rate.  This rate does NOT affect us little guys.  It is the interest that banks pay each other for borrowing money from each other.  Only in theory does it “trickle down” to us little people in the form of lower credit card and loan rates, and even supposedly on the interest rates the banks give us for putting our money into their so called “savings” accounts.

The past decade has proven that keeping the Federal Funds rate low does NOT “trickle down” to the little guy, working class, consumer level.

And that’s the point.  There is nothing being done to help the average John Q Public.  Everything is being done to help the big guys, the Man, the elites and their global corporations/governments.  Keeping interest rates low for the big guys, and flooding the markets with cash (only for the benefit of the big guys) are short term actions that will result in long term pain for the little guy (as if the little guy isn’t in pain now).

Even investment advisers are warning people of the dangers: “…governments that engage in this behavior frequently go to great lengths to ensure the public doesn’t make the connection and realize that inflation is caused by government actions.”–Daryl Montgomery, Independent Trader

Now, there are some officials with the Federal Reserve that are also sounding a warning.  Narayana Kocherlakota, the president of the Federal Reserve’s Minneapolis bank, has been arguing for an increase in interest rates: “Central bankers alone cannot solve the world’s economic problems.”

Kocherlakota wants to raise the Federal Funds Rate by at least a half a percent.  He says most of the economic problems in the U.S. are a result of mismatches between the labor market, and employers, and that is something the Federal Reserve can not influence.  It’s proof that what Central Banks are doing have nothing to do with solving the bad employment situation.

China seems to be the only country that’s following traditional economic policies regarding the prevention of inflation.  So far this year the inflation rate in China has hit 6.5%.  China is blaming the slow down in their economy partly on domestic inflation.

China is experiencing inflation because more people are making more money, which means more money available on the consumer market.  It’s being exacerbated by foreign banks loaning money to Chinese consumers.

China has instituted policies to restrict the money flow, by making it almost impossible for people to qualify for home loans, and even auto loans.  They’ve recently banned certain loans being issued by foreign banks.  The Bank of China is also raising their interest rates.

It hurts consumers, only in that it’s much harder to get a loan, but it restricts the amount of money in the consumer market, which is supposed to keep inflation down, which benefits consumers in the long run.  Also, if you’re a saver then you benefit by getting higher interest on your traditional savings account.

Bottom line: Low interest rates and flooding markets with cash only benefits the big guys, and only for the short run.  In the long run it will hurt everyone.

 

 

 

Fukushima

Government Incompetence: Agency deliberately erased human radiation contaminaton data!

The Japanese Nuclear Safety Commission deliberately erased all the data collected regarding the radiation contamination of children in Fukushima Prefecture!

Officials claim that since the date was public it threatened the privacy of the families!

Since the nuclear disaster following the 11 March 2011 quake and tsunami, more than 1,000 children, aged 15 or younger, were being monitored for the effects of radiation on their thyroid.

The problem is that no one else was keeping such data, and now it’s gone!  The decision to delete the data is only justifying the growing lack of trust the Japanese have in their government.

International

England Burning: Riots spread to 3 cities, police using armored cars, Cameron ends luxury vacation early, poor people redistributing the wealth

“There’s been tension for a long time. The kids aren’t happy. They hate the police. It’s like a war zone and the police weren’t doing anything. There were too many people and not enough police.”-Matthew Yeoland, 43-year-old teacher in Peckham.

Violence has spread to three cities now; London, Birmingham and Liverpool.  Police are using armored vehicles in the worst hit districts of London.

Prime Minister David Cameron cut short his summer vacation in Italy, after first saying he would continue with his vacation.

There are so many fires being fought in London, that Thames Water is warning its customers their water pressure will drop.

Most British media, and most British officials say there is no correlation with the riots in the various districts and cities, and no justification.

Many rioters are poor people who’ve been struggling for years to find employment.  They’re also the people who’re being hit the hardest but the government spending cuts.  Remember, the leaders of the United Kingdom force drastic cuts on social programs, then go on luxury vacations!

In answer to officials calling the rioters “thugs” one man said it was pay back time: “This is the uprising of the working class. We’re redistributing the wealth.”-Bryn Phillips

Young people in the U.K. are especially upset over huge increases in college tuition, cuts in social programs and the total lack of jobs for youth.  The unemployment rate is the highest for young adults in the U.K.

Police are so desperate they’re even asking parents to control their children, to keep them from rioting.

The original violence started in Tottenham, after a man was shot to death by police. The family of the man say he was unarmed, and sitting in the back of a taxi when he was shot.

 

 

Fukushima

Government Incompentence: Japanese official does 1-80, stops promoting Japanese food, now says no guarantee it’s safe to eat

Foreign Minister Takeaki Matsumoto has been working hard promoting Japanese food products to other countries, despite overwhelming evidence of radiation contamination.  Now Takeaki has ordered his own ministry to stop vouching for the safety of Japanese food products.

Takeaki Matsumoto says his 1-80 is the result of increased demands for food safety information from other countries, and the fact that it’s become impossible to guarantee food being exported from Japan is safe from radiation.

This is because many of the contaminated food products sold within Japan, were discovered after they were sold to consumers.

Fukushima

Corporate Incompetence: Reactor 3 melt down actually breached containment vessel, plutonium contamination!

First Tokyo Electric Power Company said there were no melt downs, as they struggled to cool the Fukushima Daiichi reactors with salty sea water.  Then TEPCo admitted there were melt downs in reactors 1 and 3, but said they were contained by the water at the bottom of the containment vessels.  Now an independent study says not so.

Tanabe Fumiya, an expert in nuclear safety, studied data from Reactor 3.  Reactor 3 uses MOX fuel.  Most of Reactor 3’s mixed uranium-plutonium oxide fuel might have made it through the containment vessel.  Fumiya says on 21 March 2011 TEPCo was unable to inject water to cool the reactor.  Over the next four days the fuel reheated and melted through.  This explains why plutonium is being found outside the reactors.

Business/Economics, International

Looting and violence spreads outside London, ignorant British newspapers blame video games

BBC is reporting that the city of Birmingham, England, has been hit by looting and violence.

According to the BBC: Cars were set on fire in Lewisham.  A bus and shop were set alight in Peckham.  Several fires broke out in Croydon, including one at a large furniture shop which spread to neighboring buildings and tram lines.  In Hackney police 200 riot officers with dogs and mounted police were located around Mare Street where police cars were damaged.  Looters raided a Debenhams store and a row of shops in Lavender Hill in Clapham.    In Birmingham, police said officers had made 35 arrests, including six juveniles, on Monday evening.    Buses were diverted as the violence spread to Bromley High Street.    There were reports of looting of phone shops in Woolwich High Street, in south London, and a torched police car.   Shops and restaurants were damaged in Ealing, west London, and there was a fire in Haven Green park opposite Ealing Broadway Tube.

Some British newspapers are avoiding the more plausible reasons for the rioting, like a bad economy and police brutality, and actually blamed video games.  One newspaper claims to have seen ten year olds taking part in the looting, and quotes an unnamed police officer as saying the rioters are motivated by the video game Grand Theft Auto.

If you’ve played Grand Theft Auto then you would know that in no way does it involve mass rioting and looting.  The game is centered around a single player, you, who’s goal is to steal cars.  Somehow the ignorant British media and authorities equate an individual stealing cars in a video game to mass rioting, vandalism and looting in real life.  It’s proof that the ‘better off’ in Britain are the ones living in a fantasy world.

Business/Economics, International, Opinion

Violent Riots spreading through London, started by police shooting, continuing because there are no jobs, British leaders on luxury vacations

“Officers responding to sporadic disorder in a number of boroughs made more than 100 arrests throughout last night and early this morning.” Scotland Yard statement, August 8

The violence that started in Tottenham has spread to Enfield and Brixton.  The riots started on Friday August 5, after police shot and killed a man in the back seat of a taxi the day before.  Police say he was a gun runner, locals say it was police brutality. Tottenham, a borough of London, has a decades long history of police brutality.

The riots are spreading and become more about the lack of jobs, and the severe cuts to social programs made by the British Parliament.

Another factor could be that British Prime Minister, David Cameron, is on a luxury vacation in Italy, while Chancellor of the Exchequer (kinda like the U.S. Treasury), George Osbourne, is on vacation in California.  This after they told British taxpayers to make more financial sacrifices.

Police feel targeted, and who wouldn’t be surprised at that since London police have powers even U.S. cops don’t.  The United Kingdom uses Orwellian tactics in their law enforcement.  One bobby said: “Officers are shocked at the outrageous level of violence directed against them.”

An immigrant from Africa said: “I can imagine this kind of thing happening in Somalia but to see it in London was strange.”

Of course the elected and appointed officials in Britain are calling the rioters “petty criminals”, but local residents say people are finally fed up with the system: “Unemployment is very, very high … they are frustrated.” Uzodinma Wigwe, age 49, recently laid off

History shows that peaceful protest does not work.  History shows that it always takes violent protest to make the leaders realize the people want change.  In some cases leaders are so arrogant they end up going to their death thinking there is nothing wrong (French Revolution). The Civil Rights laws in the United States did NOT come about because of the peaceful protests led by Martin Luther King Jr, but because of the violence that took place after Martin Luther King Jr was assassinated.  That’s the part they don’t teach about in the United States, but the info is there, do your own research.