Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? Chinese industries continue to cut back on imports, blames lack of demand

“The slowdown in import growth will last two to three months or even longer due to both falling demand and possible commodity price drops.”-Li Wei, Standard Chartered Shanghai

While China’s industry activity looks great, compared to other countries, the fact is that it’s slowing down.  The latest import numbers are the lowest ‘increase’ since November 2009.  This means that Chinese industries are buying less materials from other countries.

Imports are at 19.3%, compared to the previous year.  But export numbers are down as well.

China’s June export numbers are 17.9%, compared to May’s 19.4%.  Export numbers to the U.S. and EU dropped to 16.9%.

“The slow recovery of the global economy and the European debt crisis have added uncertainties to export growth.”-Zheng Yuesheng, GAC statistics

While some Chinese industry analysts remain optimistic, some Chinese officials are not so positive: “Exporters in Zhejiang have experienced a disappointing first half, and the second half will not be better.”-Han Jie, Zhejiang Department of Commerce


 

 

Business/Economics, International

What Economic Recovery? European Union stumbling on second Greek bailout, as debt Emergency in Italy has EU officials scrambling

“We can’t go on for many more days like Friday. We’re very worried about Italy.”-European Central Bank official

July 11, European Union officials are in emergency mode, after it became clear that the second bailout loan for Greece will arrive too late to stop default, and now Italy is on the verge of financial collapse.

EU officials are scrambling to figure out how to get the bailout money to the Greek government faster, because it is now clear Greece is in much worse shape than thought, and will officially default soon.

“We need to move on this in the next couple of weeks.  It’s not a case of waiting until late August or early September as Germany is saying.  That’s too late and markets will make us pay for it.”-European Union official

EU officials are also scrambling to plan a possible bailout of Italy’s collapsing economy.  On Friday, July 8, there was an unexpected sell off of Italian government assets.  Italy is considered the EU’s third largest economy.

Both EU officials, and Italian officials say the bond markets are actually making things worse.  That’s because a lot of the money for the Greek bailout, and now a possible Italian bailout, is coming from private sources (like investors).  Now many of those private bailout sources are having second thoughts because it’s very possible they won’t get their money back.

It’s not helping that Germany is pushing for a rethink of the second Greek bailout.  They say the problem in Greece could take 15 years to fix: “It [second Greek bailout] can’t be something that will suffice for a three-month period but rather has to offer solutions to the problem that will cover the next 10 to 15 years.”-Christian Wulff, President of Germany

Germany has a lot of power in the EU, because they seem to be the only member country who’s economy is booming, thanks to their deals with China.

 

Fukushima

Government, Corporate & Farmer Incompetence: Cows fed with radioactive hay!

Officials with Fukushima Prefecture announced they found the source contaminating beef cattle: Radioactive hay.

It was initially reported that beef farmers were feeding their cows with feed that was kept indoors.  Turns out they were not.  Farmers admitted that they quickly ran out of feed that was kept indoors, and began feeding the cows hay from outside.

Since people don’t eat hay, no one had tested hay for radiation.  Now they have, and it tested positive for cesium contamination.  The local government safe limit is 300 becquerels per kilogram, the national safe limit is 500.

Officials are still testing local well water.

 

Fukushima

Corporate Incompetence: TEPCo admits they’ve screwed up on trying to control nuclear plant!

Tokyo Electric Power Company has admitted that the many delays in getting the damaged Fukushima Daiichi nuke plant under control, are due to the use of improvised parts and equipment.

TEPCo says they were never prepared for such a disaster, as a result many of the equipment they put together to tackle the problems, are made of material that can not stand up to the job.

TEPCo admitted that many of the leaks that have plagued water decontamination and cooling are caused by the use of hoses that are not meant for the job.

We rarely hear about Reactor 5 (since the reactors of main concern have been 1,2,3 & 4), but it turns out its cooling system was shut down at the beginning of July, because of shoddy improvised hoses/plumbing.  TEPCo will try to install better hoses and re-start cooling operations.

Another reason for the use of shoddy improvised parts and equipment: Tokyo Electric Power Company officials admit they did not understand the severity of the situation at the beginning of the disaster, and thought they would have the nuke plant under control within a few days.  Now they are asking for more time, to get proper parts and equipment to replace the improvised ones.

 

Fukushima

Corporate incompetence: TEPCo stops water decontamination…again

10 July 2011, Tokyo Electric Power Company has stopped its water decontamination operation, again.  This time it’s due to chemicals leaking from the system.  The chemicals are used to absorb radiation from the water.

According to NHK, TEPCo is blaming the new leaks on “non-durable” materials used to build the decontamination unit.  Basically they used parts that could not withstand the pressure, radiation and chemicals in the system.

Many reports from Japan have been confusing, because they’ve referred to problems in the ‘cooling’ system, when they mean decontamination system.  This could be because the two systems are interconnected.

Fukushima

Government Incompetence: Tokyo officials admit Radioactive beef was sold in markets, can’t find source of contamination!

A couple of days ago Tokyo officials reported that cows from Fukushima Prefecture tested positive for high levels of cesium contamination.  Originally officials said none of the beef was sold in Tokyo markets.  Now they admit radioactive beef was sold.

Beef from a total of 11 cows, from a Minami Soma city farm, were tested.  But it turns out that beef from six cows, from the same farm, were not tested, and were sold in Tokyo and Tochigi markets.

Some of the contaminated beef tested for as much as 3,200 becquerels per kilogram of cesium.  The national safe limit is 500.

Officials from the Fukushima Prefecture have inspected the Minami Soma farm.  They discovered that the cows had been kept indoors, along with their feed.  A skin test on the cows, prior to shipment for slaughter, showed no radiation contamination.   Water for the cows came from a well, testing is being done on the water, as well as the feed.

Officials in Tokyo are now back tracking the shipping route used to deliver the beef.  There are concerns that somewhere along the route the beef became contaminated.  It’s also possible that the beef became contaminated during the butchering process.  This could mean that extremely high levels of cesium are being emitted, probably from the damaged Fukushima Daiichi nuclear plant.

Business/Economics, International

Another reason the housing market bubble in China could burst: New Income Tax Laws

Recently the Chinese government changed income tax laws, to help low income workers keep more of their money.  The new law increased the number of workers who don’t have to file income tax.

The Chinese real estate industry is now warning that could reduce property sales.

In China you must have official papers declaring you a permanent resident of the area you want to buy property in.  If you don’t have such paperwork, you can use your income tax filing to show that you work in that area.  The problem with the new tax law is that it will reduce the number of migrant workers who would’ve had those tax records to use to buy a home with.

A Beijing realtor says the new tax law will reduce the number of qualified migrants, in his area, by more than 90%.

This comes after the Chinese government ordered banks to tighten mortgage lending by either increasing down payments, or increasing mortgage interest rates.

Fukushima

Government Incompetence: Japanese beef contaminated with Cesium!

Tokyo officials say they found beef, shipped in from Fukushima Prefecture, is contaminated with high levels of cesium.

On 08 July 2011 the beef tested positive for 2,300 becquerels per kilogram of cesium, the national safe limit is 500 becquerels per kilogram.

The beef came from cows raised in Minami Souma, in Fukushima Prefecture.

Japan’s Health Ministry says this is the first time such high levels of radiation showed up in beef.  They are now requesting the six prefectures around the Fukushima Daiichi nuclear plant, to increase testing their cows for radiation.

Business/Economics, International

What Economic Recovery? Chinese credit crunch could burst Chinese housing market bubble

In an effort to fight inflation the Chinese government recently ordered banks to tighten their grip on the money supply.  One way is to cut back on loans.

The China Construction Bank announced they will increase down payments on homes, for first time buyers, to 40% of the purchase price.  The Chinese banks were told to either raise the amount of down payments, or increase interest rates on mortgages.  This could pop China’s housing market bubble.

Fukushima

Corporate Incompetence: Japanese nuclear plant operator lies about plant safety, gets caught!

In Japan, the restart of the Genkai nuclear power plant has been put on hold, after a whistler blower revealed that the company boss ordered false statements about the plant’s safety.

Operator Kyushu Electric Power Company got the go ahead to restart the nuclear plant, located in Saga prefecture, after a public meeting in which email testimonies were read in favor of restarting the plant.  Those emails, supposedly from independent observers, and even affiliates of KEPCo, turned out to be lies.

Saga is located many hundreds of miles from Fukushima, on the southern island of Kyushu.

It’s been revealed that the boss of KEPCo ordered false emails to be sent to the public hearing, in order to win approval for restart.

Now local officials will wait until the central Japanese government completes its new stress tests, before giving the go ahead for restart.