Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? Chinese manufacturing stalls, not enough orders to fill, blames bad economy in United States

“Manufacturers are struggling with multiple difficulties including increased lending costs and fewer international orders.”-Zhang Shiqing, Nankai University

Chinese economics professors are warning that the Chinese economy will stall.  China has become a major exporter of products to the world, but most of the world is in financial trouble.  That is resulting in less orders to be filled.

Also, the recent revelation that local governments, in China, are in debt to the tune of $1.65 trillion, is making it difficult for Chinese companies to get loans to continue operating.  It’s now obvious that the Chinese have been running their economy just like the United States.

Surprisingly from January to May 2011, U.S. exports to China actually went up, by 31%.   “China’s industrial production has notably declined in the previous month, which is a good opportunity for U.S. enterprises to boost production to fill the gap.”-Fan Jishe, Chinese Academy of Social Sciences

Many Chinese industry analyst are now doing what analysts in the U.S. are doing; hoping the economy will pick up by the end of the year.

 

Business/Economics, U.S.

Coca Cola raises prices, blames inflation, bad weather, Pepsi and others to follow suit

Coca Cola will raise prices at least 3 to 5% in July.  They raised prices 2% earlier this year.

They blame the rising costs of resources, due to speculators playing the commodities markets. They also blame the cost of transportation due to high fuel prices.

In China, Coca Cola bottlers will use smaller bottles.  Hangzhou bottler already changed its 600 milliliter packages to 500 milliliters in May, but charges the same price.

Industry analysts say the inflation in commodity prices has to be passed on to consumers sooner or later.  A month before Coca Cola’s price rise announcement, Smuckers raised prices on its coffee products.  Eventually consumers will see more price rises across the food market.

A big factor for commodity price increases is the bad weather most of the United States is experiencing.  Cooler, wetter than normal weather in the north west.  Massive flooding in the plain states, and mid west.  Hotter weather in the east.  All these weather extremes are resulting in less crop production.  Less crops on the markets will drive the price up.

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Eastern Idaho has increase in people needing help with housing

“People aren’t feeling as comfortable getting a mortgage because they don’t know for sure what the future of their employment is going to be.”-Debra Hemmert, Southeastern Idaho Community Action Agency

In the Pocatello area, Hemmert says the amount of people asking for help with housing has doubled this year.

Sheryl Bailey, with the Eastern Idaho Community Action Partnership, says they’re seeing the same thing in the Idaho Falls area.

There is no state taxpayer funded housing assistance program in Idaho.  There is the Idaho Housing and Finance Association, which offers Federal HUD Section 8 assistance program, but only in 34 of Idaho’s 44 counties.  Also, the IHFA has two apartment units, one in Idaho Falls, the other in Kellogg.

The city of Boise, and the county of Ada, run a joint Housing Authority, which actually serves as a way to match people with Federally funded government programs, and non-profit assistance.  Most housing assistance in Idaho comes from non-profits who rely on donations and government grants.

Business/Economics, U.S.

Montana Judge restricts Marijuana use law restrictions

A judge is blocking parts of Montana’s medical marijuana use law, not because of the marijuana, but because of too many restrictions.

The Montana marijuana law bans commercial for profit sales of marijuana.  Under the law marijuana is to be sold as a not for profit product, among many other restrictions.

Judge James Reynolds argued that Montana does not restrict any other business, so why marijuana?  “The court is unaware of and has not been shown where any person in any other licensed and lawful industry in Montana – be he a barber, an accountant, a lawyer, or a doctor – who, providing a legal product or service, is denied the right to charge for that service or is limited in the number of people he or she can serve.”

Reynolds also said the law made marijuana legal, and he sees no reason for all the restrictions placed on the law.  He argued that all the restrictions actually make it hard for people, who need it for medical use, to get it.

The law was passed by voters in 2004, but was overhauled by state lawmakers this year.  The new restrictions were supposed to go into effect on Friday.

The overhaul came after Federal officials conducted some raids, and came down on the state government.  Among those restrictions include a ban on advertising, limiting distributors to just three customers, and automatic investigations of doctors who prescribe marijuana to more than 25 patients.

The restrictions were immediately challenged in court.  Judge Reynolds did not block all the restrictions, just those he thought violated state and federal constitutional rights.

 

Business/Economics, International

Communist China’s experiment with U.S. style capitalism a failure, only the rich got richer, created more poor

The Chinese government announced that they must revise their income tax laws, to account for the huge increase in poor people.  Their experiment with capitalism only created more poor people while a minority of people got rich.

Beginning in September the minimum income level for exemption from paying income tax will be raised, to the equivalent of $540.00 per month.  Currently it is $300.00 per month.  It will affect about 60 million workers.

Also, people making between $540.00 and $700.00 per month will see a decrease in the percentage they must pay; dropped to 3% from the current 5%.

This comes after riots by workers in several regions of China.  They are protesting low wages, no benefits, and they wanted to know where all the wealth was going, because after all these years most workers still aren’t seeing an improvement in their lives.

The Chinese government admits only a small portion of China’s people are benefiting from the U.S. style of doing business.

Business/Economics, International

What Economic Recovery? Greece secretly defaults on bailout loans, on the verge of class war

“The measures that have been adopted are not to avoid the default, the default already took place, but it was not declared.”-Paolo Raffone, Secretary General of CIPI Foundation

Greece has cut even more social services and programs, and has jacked up taxes, in an effort to get more bailout loans approved.   The problem is that at least 16% of the Greek people are unemployed.

Analysts say most of the loans that Greece has gotten, have been going to pay previous loans.  Nothing is being used to try and build the Greek economy, like creating jobs.  The result is that the Greek government is just digging a deeper and deeper debt hole.

One analysts says what the Greek government is doing is called “virtual economics”, meaning the economy is based on loans, there is no true economy in Greece: “Economic specialists are trying to prop up an inherently unsustainable project, which is based on sometimes virtual economics.”-Sahara Ali, Green Party

Ali warns that continuing bailout loans will only make things worse for Greece, it’s really being done to save the European Union, and the Greek people know it: “That is what the general population has realized, that it’s increasing its indebtedness in order to prop up the Euro Zone.”

Ali suggested that part of the bailout loans require Greece to buy more products from other European countries, which actually works against building a Greek economy.

Paulo Raffone says the situation in Greece is heading towards a civil war based on class, rich vs poor: “The leadership in the country is always the same now for more than 40 years, and they’ve been profiteering on the People. There’re a few families that are sharing large shares of take in the national wealth.”

Raffone also says the control of Greece by the elites extends to the rest of Europe: “You have external European profiteers, which are the banks from Germany, France, Belgium and others, that have been profiteering on the Greek situation no matter what currency is there.” He says the elites don’t really want to change the current situation, because they’re making money off it.

Sahara Ali says the elites have revealed the “stupidity” of their economic reasoning: “Nobody’s actually able to eat the number of zeros, the negative zeros, in their bank balance.  What they actually are faced with, on a daily bases, is making ends meet.  Are we really thinking it’s reasonable to demand extra taxes from people in Greece who are on the minimum wage?”

Regarding the recent vote in the Greek Parliament, supporting their president’s latest efforts to get more loans,  analysts point out there is a huge gap growing between the People and their government officials.  The People do not want any more bailout loans.

More and more analysts are thinking that default, by many countries including the United States, is inevitable.  The problem is that the ruling elites of most countries are not being realistic, and are trying to pass the buck of responsibility of their bad choices onto the People/taxpayers.  This could result in class/civil wars on a global scale.

 

Business/Economics, International, Technology

Mazda claims new Mazda 2 blows away hybrids in fuel economy

Mazda announced that their latest generation Demio (aka Mazda 2) gets much better fuel economy than hybrids.  That mean no more expensive batteries to replace.

The Demio’s engine has uniquely shaped pistons to increase combustion efficiency, and, it has a computer that will shut off the engine when it’s idling beyond a certain time limit.

The Idling Stop System will automatically start the engine when you’re ready to go.

Mazda’s Chief Executive, Takashi Yamanouchi, says how well the car sells will determine the future of car design for Mazda.  He hopes that all Mazda cars will be produced with similar technology within five years.  No word on if the new gas saving Demio (Mazda 2) will be sold in the United States.

Fukushima

Japanese children contaminated with Cesium 134!

A group of concerned parents, not happy with government response, formed an organization called The Fukushima Network for Saving Children from Radiation.  They took urine samples from 10 kids, from elementary to high school age, and had a French company test them.

The result showed that all the kids are internally contaminated with cesium 134.  An eight year old girl has 1.13 becquerels of cesium-134 per liter.  The children live in Fukushima City, which is 60 kilometers (37 miles) from the damaged Fukushima Daiichi nuclear plant.

The Fukushima Network for Saving Children from Radiation says this is proof that radiation is continuing to be emitted by the damaged nuke plant, and it is spreading.

 

Business/Economics, International, U.S.

Iraq caves to U.S. pressure, might allow U.S. troops to stay beyond current withdraw date

June 30, Japan:  In an exclusive interview, NHK discovered that the Iraqi government might let U.S. troops stay.  For months U.S. officials have been pushing Iraq to ‘request’ that U.S. troops be kept past the current withdraw date.

Under the terms of the last agreement, the only way that U.S. forces would stay, is if the Iraqi government requested them to stay.  Officially Iraqi officials have stated that they want the U.S. out.

Iraqi government spokesperson, Ali al-Dabbagh, told NHK that some Iraqi officials now believe their troops need more U.S. training.  This is exactly the reasoning U.S. officials have been telling Iraqi officials to use.

The Iraqi Parliament is set to vote on the issue, it’ll take a majority of support for the request to become official.

Several militia groups, some very powerful, stated they will go on the war path if U.S. troops do not leave by the end of 2011.  Already attacks against U.S. troops have increased since Defense Secretary Robert Gates began pressuring the Iraqi government to let U.S. troops stay.  June, 2011, has become the deadliest month for U.S. forces since 2009.  Some economist say the U.S. wars in Iraq and Afghanistan have cost the U.S. economy $3 trillion.

Fukushima

Government Incompetence: Nuclear agency spokesman fired for creating a sex scandal during Japan’s nuclear crisis

Nishiyama Hidehiko, spokesman for Japan’s Nuclear and Industrial Safety Agency, has been removed from his job.  It turns out that while the Japanese people were looking to the government for information on the Fukushima Daiichi nuclear disaster, Nishiyama was having an affair with a young woman.

A Japanese magazine broke the story.  The woman said Nishiyama was worried about loosing his hair and thought “vigorous sex” would prevent it.  He apologized for the media finding out about his affar, and said: “I am sorry if this gave any misperceptions or concerns that I have been laying down on the job.”

I think he should have said something other than “…laying down on the job”.  Talk about ‘fiddling’ while Rome burns!