Tag Archives: economy

Business/Economics, U.S.

What Economic Recovery? Official Baseball Bankruptcy

The Los Angeles Dodgers are officially bankrupt.  The team franchise tried to get a new television deal that could have kept it out of bankruptcy, but Major League Baseball blocked that deal.

This comes after a bitter court battle between the two owners.  Frank McCourt was left as the owner, but he believes the blocked TV deal is an effort to force him to sell the LA Dodgers.  McCourt vowed he wouldn’t do that, he thinks the bankruptcy will buy him time to get things turned around.

It was hoped the TV deal would bring the Dodgers $3 billion.  Yes, they need $3 billion to stay alive.  I think this is a sure sign that sports is way overvalued, you might says it’s a another economic bubble about to burst.

Business/Economics, International, U.S.

What Economic Recovery? Obama about to send $145 million in military aid to Africa, $200 million for Yemen

Last week the Pentagon presented Congress with a plan to provide African countries with up to $145 million in military aid.  The aid, in money and equipment, is for so called counter terrorism operations.

The $145 million, to be split between several African countries, doesn’t compare to what just one country got last year.  Yemen, on the Arabian Peninsula, got $155 million in aid last year, paid for by taxpayers.  And this year the Pentagon wants give Yemen $200 million!

Out of the $145 million in military aid going to African countries, only $600,000 is for ‘human rights training’.

 

Fukushima, U.S.

Corporate & Government Incompetence: Nebraska flood knocks out power to Nuclear Plant, no thanks to workers not paying attention

26 June 2011, an accident at the Fort Calhoun nuclear power plant resulting in the expanding Missouri River flooding into the compound.  The water hit the nuke plant’s electrical transformers, cutting off power.

Electricity is still needed to keep the spent fuel pools cool.  Plant officials say they are now running on back up generators.

Forth Calhoun officials ordered the installation of a water filled artificial levee (berm).  The Nuclear Regulatory Commission did not approve the artificial levee.  At about 1:25 am, 26 June, workers broke the water filled berm, allowing the Missouri River to flood in.

This natural disaster is the latest bad news for the Fort Calhoun nuke plant.  In April plans to refuel its reactors were halted, over concerns of flooding by the Missouri River.  Then, on 07 June, a fire broke out in one of the reactor control rooms.  An inspection two years ago revealed that plant operators were not properly prepared for a flood.

Business/Economics, International, U.S.

What Economic Recovery? World Banks tightening their grip on money

On Saturday, June 25, the Basel Committee on Banking Supervision announced that all major international banks, and central banks (like the U.S. Federal Reserve) are going to increase their capital reserves.

This means they are going to hold onto more money and issue less loans.  Some banks refer to capital reserves as putting their money to ‘rest’ (aka bank reserves, desired reserves).

The Basel Committee on Banking Supervision refused to give a list of which banks will be holding back on their money.  This is an indication that the major international, and central banks do not expect any short term improvement in the world economies.

The increase in capital reserves is to help banks handle monetary emergencies, like traditional “runs on banks”.  Just how long does the Basel Committee on Banking Supervision think the economy will suck?  The new tighter control on money will be implemented in phases, becoming fully in effect in 2018.  Mmmm, it’s 2011 now, uh oh!

Fukushima

Boric Acid to be Poured into Fukushima Daiichi Reator 3

After several months of spewing radiation all over northern Japan, Tokyo Electric Power Company is finally going to use boric acid on one of the Fukushima Daiichi reactors.

Actually TEPCo is pouring a borci acid/water mix into the spent fuel pool above Reactor 3.  By Monday evening, 27 June 2011, they will have used 90 tons of the mixture.

What is happening in the fuel pool is that radioactive concrete debris, from the hydrogen explosions, were stored in the fuel pool.  TEPCo has discovered that calcium hydrate from the concrete debris has made the water highly corrosive, increasing the chances of structural failure of the fuel pool.  They fear the racks holding the spent fuel rods will collapse, causing the rods to crash into each other, thus causing “re-criticality”.

 

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

What Economic Recovery? Idaho Micron says demand for computer chips anemic

Idaho based Micron is reporting a drop in demand for computer chips.  One semiconductor analyst calls it “anemic”.

Micron reports sales are down, even though profits are up 4%, from the previous quarter.  How did they make a profit?  Officially Micron calls it ‘reduction in manufacturing costs’.  That means workers got laid off, in fact since 2008 more than 2000 Micron employees lost their jobs.

When you compare net revenues, year to year, Micron still lost money.

 

Fukushima

Doctors say don’t eat Japanese vegetables, they’re radioactive!

A group of doctors tested people living in the Fukushima Prefecture of Japan.  That’s where the damaged Fukushima Daiichi nuclear plant is.  They discovered people living outside the evacuation zones are internally contaminated with radiation.

The doctors tested people in two cities; Iitate Village and Kawamata Town.  They are about 40 kilometers (24 miles) from the nuclear plant.  They tested their urine, to check for internal radiation contamination.  They found the people have three times what is considered normal exposure for one year.

The doctors are telling the people of Fukushima Prefecture to stop eating the locally grown vegetables.

Fukushima

Corporate Incompetence: TEPCo shuts off wrong valves!

Yesterday I speculated that Tokyo Electric Power Company probably installed their water radiation filters backwards.  Today NHK reporting that incorrect settings of the system are the cause of TEPCo’s problems.

At least twice TEPCo had to stop their decontamination of water, at Fukushima Daiichi, because they were getting the reverse effect; an increase in radiation levels in the water.  Another time they stopped because they broke a water pump.

It turns out all those problems were caused by the incorrect setting of valves.  The result was that less than half of the filter chambers were being used.  TEPCo blames their throwaway workers for misunderstanding the “open” and “shut” indicators on the U.S. designed system!

Business/Economics, Idaho, U.S.

Idaho Personal Income report misleading, wages & construction down again

Idaho media reporting an increase in “personal income”.  The problem is that “personal income”, as reported by the U.S. Bureau of Economic Analysis, includes things the average person does not consider “personal income”.

What government officials consider “personal income” includes unemployment benefits, business investments, business profits, farm profits, construction profits and government payments, besides individual wages.

The report for the first quarter of 2011 shows an increase.  But that’s due mainly to business profits, investment returns and farm profits.  When you look at wages for workers, it went down.

Also, income from construction in Idaho also fell, for the 3rd straight quarter.

If your wondering how businesses keep showing a profit, it’s because they’ve been laying workers off, or not hiring when they should!

Business/Economics, Idaho, U.S.

What Economic Recovery? Bannock County, Idaho, jacks up property taxes on farmers, by 90%

“We’re trying desperately to hold to these farms and we are paying our share. And if we haven’t been paying our share, it’s because assessors haven’t been doing their job.”-Grant Olson, wheat farmer

In a surprise announcement, Bannock County officials said they messed up and failed to properly assess farmland.  They will now hit farmers with a property tax bill that’s at least 90% higher than last year!

Grant Olsen, a farmer in Robin, Idaho, says his tax bill has gone up year after year.  Olsen is highly suspicious of the county’s reasons: “They say the reassessment hasn’t been done for 10 years, and now they have to obey the law. Why haven’t they been obeying the law?”

As a resident in Bannock County I can say that property taxes have gone up yearly, even with the decline in residential property prices.  When I’ve complained to the assessor they’ve blamed increased fees due to the passage of school levees.  That’s part of the problem, but the specific “property” tax has gone up as well.

County officials told the public that they would provide a better explanation of why they have to increase farmland property tax so much.  Bannock County has a reputation for having higher than average property taxes.