Tag Archives: economy

Business/Economics, International

What Economic Recovery? S & P’s says Europe’s action on Greek debt will result in automatic default

Standard & Poor’s is warning that a French plan to “rollover” Greek debt will force Greece into default.  The plan was put forth by the Fédération Bancaire Française.

S & P’s is not the only finance rating company to make such a claim.  It’s complicated, but basically they claim the French plan would result in current “investors” in Greek bonds receiving much less of a return on their investment, so much so that S & P’s is willing to declare Greece in default.

The plan was approved by the only economic powerhouse in the European Union: Germany.

“In our view, Greece’s near-term reliance on European Union and International Monetary Fund official financing, the government’s difficulty in reducing its sizable fiscal deficit, and the current pricing of Greek government debt in the secondary market all underscore the Hellenic Republic’s weak creditworthiness and, consequently, point to a ‘realistic possibility’ that financing option would fit the ‘distressed’ category.”-Standard & Poor’s

Business/Economics, International

No Economic Recovery for the U.S.: German car sales explode, but not because of the United States

German car makers are scrambling to keep up with international orders.  They expect that by the end of the year they will have exported 4.15 million German made cars.  But the majority of those cars are not going to the U.S., they’re going to China, and to some extent India.

“We are seeing international markets pick up much more rapidly than many had expected.  The drivers of growth are above all Asian markets.”-Matthias Wissmann, German Car Industry Association

Audi alone saw a 64% increase in their sales to China and Hong Kong, in 2010.  But BMW is turning out to be the big money maker, just in the first six months of 2011, their sales in China exploded by 101%!

Executives for German car makers admitted they are scrambling to rethink their corporate strategy, because they never expected such high sales in China, so soon.

 

Business/Economics, International

No Economic Recovery for the U.S.: Germany & China sign $3 billion deal

Germany, not the United States, is becoming China’s most important business partner.

In fact the latest deal puts to shame the recent deal signed between China and the United Kingdom, by several hundred billion dollars.  At the end of June Germany and China signed a $290+ billion deal.

The deal includes not just the purchase of products, but investments into anything from universities to medical research to environmental services.  Sounds like everything President Obama promised the people of the United States.

Currently Germany has invested $20 billion into Chinese industries, with China investing only $600 million into Germany.  This new deal greatly increases Chinese investment into Germany.

According to Rainer Gehnen, managing director of the German-Chinese Business Council, China, not the United States, is now Germany’s most important market, and will be for the long run.

 

 

 

Fukushima

Government Incompetence: Japanese government focusing all resources on Fukushima, is this a case of too little too late?

Almost four months after the world’s worst nuclear accident, is the Japanese government finally taking serious action in Fukushima Prefecture?

On 04 July 2011, the Japanese government announced they will take over all radiation monitoring in Fukushima, including the monitoring being done by Tokyo Electric Power Company.

This comes after growing complaints by residents of Fukushima Prefecture, that the government wasn’t doing enough.  Already several cities have begun their own decontamination efforts.  One city, Date, said they were going to bill the government and TEPCo.

Residents are also upset about the government’s targeted evacuations.  They’re based on radiation levels, however there are different groups taking those readings, and it’s confusing residents.

Before the government decision to take over radiation monitoring, testing was being done by local governments, independent groups, universities and Tokyo Electric.  Residents felt it was about time for some standardization.

The Japanese central government will use their monitoring data to determine future evacuations.

Fukushima

National Government Incompetence: City 124 miles away from Fukushima contaminated, residents will conduct self monitoring

A group of residents of the city of Moriya say they will begin monitoring radiation levels, because the central government can not.

Moriya is 200 kilometers (124 miles) from Fukushima Daiichi nuclear plant, yet it is showing some of the highest radiation levels in the area.

Residents say when they approached the central Japanese government with their concerns, they were told their government was being overwhelmed by the nuclear crisis, and did not have the man power to conduct the radiation monitoring in their area!

Business/Economics, International, Opinion, Technology, U.S.

Rare Earth Minerals the ‘oil’ of the 21st Century. Who controls the most? Same old adversaries of the 20th Century

Rare earth minerals will become the ‘oil’ of the 21st century.  That’s because they’re used in high tech electronics, and the more the world becomes reliant on electronics, the more valuable rare earth minerals become.

In fact, some analysts say some of the current wars raging on the African continent are all about control of rare earth minerals.

Here are some examples of rare earth minerals: Dysprosium is used in electric motors for vehicles, and Terbium for the latest televisions.

Who’re the biggest controllers of rare earths?  Why they’re the same major players of the Cold War in the 20th century: Russia (the boss of the Soviet Union during the Cold War), China and the United States.

However, China actually controls 90% of the production/refining of rare earths.  This is where their true power comes in.

Rare earth minerals are so important that the Japanese University of Tokyo spent a lot of money conducting a search for other sources of rare earths.  Their target search area was the Pacific Ocean.  International law would prevent any monopolization by any country, of rare earths found in the Pacific Ocean.

They found plenty.  From 2000 samples taken at 78 locations, Associate Professor Yasuhiro Kato estimates there is 800 times the rare earths at the bottom of the Pacific Ocean, than there is on land.

They targeted volcanic vents on the Pacific Ocean floor.  Hawaii has a lot.  The problem is that most of the high concentrations are at depths of 3,000 to 6,000 meters (9,842 to 19,685 feet).  So there are technical limits to getting at the Pacific Ocean rare earths.

Fukushima

National Government Incompetence: Japanese city will decontaminate self, will send TEPCo & the national government the bill

The city of Date, 50 kilometers (31 miles) from the damaged Fukushima Daiichi nuclear plant, will undergo intensive decontamination.  This announcement comes after the central Japanese government announced the evacuation of 113 more households.

City officials, and residents, are not happy with the central government’s targeted evacuations.  Many residents want a mass evacuation, because radiation levels are on the increase all over the city.

To try and alleviate the concerns of the people living in Date, city officials have decided to undertake decontamination efforts, on their own.  They claim they will decontaminate every building and home in the city.  They also claim they will decontaminate the surrounding mountain sides.

How are they going to pay for it?  No worries, they plan on sending Tokyo Electric Power Company, and the central Japanese government, a huge bill.

Business/Economics, International

What Economic Recovery? Inflation hits makeup, Cosmetics prices to go up, up

Estee Lauder Group announced they will be raising prices on their various makeup brands by 8% to 10%.

Corporate officials are blaming the price rise on the increased cost of labor, and resources.

Estee Lauder Group is not the first cosmetics company to raise their prices.  Earlier in the year Christian Dior, Lancome, Biotherm, Chanel and others announced prices increases.

Business/Economics, International

What Economic Recovery? China reports slowdown in non-manufacturing

“We will continue to monitor the situation and evaluate whether this bodes a further slowdown for business activity and economic growth.”-Cai Jin, China Federation of Logistics and Purchasing

China continues to see evidence of economic slowdown, as the non-manufacturing sector shows slowed growth for second month in a row.

The slowdown in non-manufacturing (things like basic resources for bigger companies) is blamed on declining orders from the manufacturing sector.  Manufacturers are cutting back because of declining orders from their international customers.

China is the world’s second largest economy.  If the slowdown in their economy continues, it could be a sign that there is no global economic recovery.

Business/Economics, Opinion, U.S.

Declare Independence from Banks: Economist says Big Banks control the United States, revolution only answer

“People think jobs create wealth, they don’t, they don’t.  It is being done by capital instruments [loans].”-Rodney Shakespeare, Trisakti University

A British economist with Trisakti University, in London, U.K., says ‘wealth’ is now actually created by big banks, and the big banks totally control the U.S.

The ‘wealth’ is created by the interest and fees the banks charge on their loans (capital instruments), and their money is fake:  “The banks do not lend existing money.  They create money out of nothing.  They add administration costs and they add interest and then they lend it for anything.   And that is where you’ve gone horribly wrong.”

The real money, the ‘wealth’, comes from individuals, governments and corporations paying back the loans the got from the big banks.  Essentially the banks are making big money for themselves, from nothing (why else do they keep reporting huge profits in a bad economy).

Over the past few decades, big western banks have been gaining control by making as many people, governments and corporations addicted to living off of their loans.  A tiny elite of people are benefiting: “Of course the banks and financial elites think this is a marvelous idea, because it effectually means that all the time they can ‘cream off’ what is essentially a ‘tax’…”

There are two answers Professor Shakespeare suggested; share the ‘wealth’ by spreading the benefits of capital instruments (bank loans) amongst the people, or: “…an uprising against what could be summarized as ‘banker occupation’.  Until that happens there’s no chance of new thinking coming into being.”

I can only think of mass default on loans to be the most destructive way to rise up against “banker occupation”.  This would involve not only individuals, but governments and corporations as well.