Tag Archives: economy

Business/Economics, International, U.S.

Global Great Depression: IMF warns of global collaspe if Europe goes down the economic toilet

“Given the euro area’s role in the global economy, success in addressing the sovereign debt crisis and raising growth has a significant impact elsewhere.”-IMF report

June 21, a new report by the International Monetary Fund says European economic collapse could bring on a Global Great Depression.

All international finance eyes are focused on what happens with Greece.  There could be a domino effect if Greece defaults.  A check of history will show that a similar situation happened prior to the U.S. Stock Market Crash of 1929, which eventually led to the Great Depression in the U.S.

Here’s a little reminder: Germany was forced to pay the United Kingdom and France (and some other countries) huge reperations after losing the First World War.  The U.K. and France owed the United States big time money for saving their butts during the war.  U.S. corporations were banking on that money from U.K. and France, and actually ran their businesses on debt thinking ‘no problem the French and British will pay up’  (it was called “The Roaring Twenties”).  Well, the victors of the First World War made things so bad for Germany there was no way they could make the reparations payments, so they defaulted.  As a result, the U.K. and France defaulted on their payments to the United States.  As a result, U.S. corporations defaulted leading to the Crash of ’29.

Basically the IMF is saying we are in a similar situation with the current debt crisis in Europe.

Fukushima

Corporate Incompetence: Once again, TEPCo stops radiation decontamination

For the second time Tokyo Electric Power Company has stopped decontamination of water at it’s Fukushima Daiichi nuclear plant, this time they broke a water pump.

The first time was because the radiation levels were much higher than first thought, and the water decontamination system wasn’t set up to handle it.  This time TEPCo officials think it’s because they tried to force too much water through, and broke a water pump.

Fukushima, U.S.

Government & Corporate Incompetence: U.S. Nuclear Reactors disasters waiting to happen

The Associated Press spent a year going over government documents concerning the safety of U.S. nuke plants; the conclusion is that a disaster of epic proportions is very likely.

The reason is that U.S. officials, like the Nuclear Regulatory Commission, have been relaxing safety standards just so the aging nuclear reactors could be re-licensed.  In other words, what the AP found was that if today’s U.S. nuclear reactors were required to meet 1970s safety standards, most would fail.  The most common problem at the nuclear plants are leaking valves.

Recently, one Senator from Tennessee, Lamar Alexander, tried to say the U.S. nuclear industry had a record of safe operations.  However, the NRC, even with it’s relaxed safety standards, has filed more than 200 safety alerts since 2005.  In 2008 the NRC admitted that 70% of potentially dangerous situations resulted from relaxing of standards in order to get the plants re-licensed.

Another surprising find, the Associated Press noted that not a single serious investigation into the safety of nuclear plants has been officially undertaken, not even by the NRC.  It appears what government, and the nuke industry corporations have been doing, is trying to find ways to re-license reactors without meeting safety standards!

Here’s the modus operandi of U.S. government, and the corporations running the nuke plants:  Old parts fail causing accidents, or jeopardizing re-licensing.  Instead of ‘coming up to compliance’, corporations work with government agencies to ‘dumb down’ existing safety regulations.

Another revelation: Most U.S. nuclear plants were supposed to be replaced with brand new plants, once their original 40 year licenses expired.  That never happened.

What’s the motivation behind the scandal?  Billions and billions of dollars being made by providing almost 20% of the United State’s electricity, using outdated and cheaply maintained nuke plants.

There is so much more in the AP report.  Everyone living near nuclear reactors in the United States should make plans to get away.

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s May employment performance, by sector

Payrolls for Idaho’s manufacturing sector remain stuck at 1991 levels, for the 6th month in a row.

Total construction employment for May was at 1994 levels.

Idaho’s business services sector remained constant, for the third year in a row.

The health care sector created jobs in May, but at only half the pace of the past five years.

The retail sector actually added jobs, surprising some Idaho analysts.

Employment agencies also added jobs.

Overall, most sectors are stuck in 1990s employment/payroll levels.

Source: Idaho Department of Labor

 

 

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho’s Unemployment rate goes down, but not because of job creation

The Idaho Department of Labor reported a slight drop in Idaho’s unemployment, now at 9.4%, but they also reported a drop in job creation.

The Department of Labor says seasonal hiring for May was below normal levels, and that job creation was weak.  So why the drop in the unemployment rate?  Officials say it’s due to workers retiring, workers dieing, and unemployed people who have stopped looking for work!

Idaho labor officials say that so far 2011 is lagging behind 2010, when it comes to job creation.

 

Business/Economics, Idaho, U.S.

Government Incompetence: Idaho can’t make Medicaid payments, yet 102 state employees get bonuses!

June 20, Idaho announced that they can’t make Medicaid payments, yet last week they announced bonuses for 102 government workers!

Example: Legislative Services Director Jeff Youtz, paid himself, and his staff, bonuses equal to $94,633.  The total amount of bonuses paid to agencies of the State of Idaho came to $227,003.

Idaho House Speaker Lawrence Denney said it was necessary to “…retain qualified and experienced staff.”

Idaho House Majority Leader Mike Moyle thinks otherwise: “…with the budgetary concerns we’re dealing with, I don’t think it was wise or prudent.”

Moyle is correct.  Consider that the government of Idaho has laid off 517 employees since 2009, and has suspended Medicaid payments, twice now, along with drastic cuts in education and other services (called “austerity” cuts).  Bonuses for government workers are not what the taxpayers want to see.

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho Stops Medicaid payments

June 20, Idaho Department of Health and Welfare says they’re out of money for Medicaid.

As a result, Medicaid payments to Idaho hospitals will be suspended for at least one week.  Those payments would have come to $13 million.  Officials will announce, by the end of the week, if payments will be delayed for another week.

This isn’t the first time Idaho stopped Medicaid payments to hospitals.  In 2010 they suspended nine weeks of payments.  Health and Welfare officials say that for some reason the majority of payment claims always come in when state Medicaid funds are at their lowest point.

 

Business/Economics, International

What Economic Recovery? Greece threatens default if they don’t get second bailout, EU Finance Ministers say domino effect if Greece defaults

“If Greece was to be the first country to default, eyes would turn to other countries such as Ireland, Portugal, Spain, Italy, maybe Belgium but also France, given its deficit and debt levels. We don’t know where the contagion would stop.”-Didier Reynders, Belgian Finance Minister

After the European Union announced they would hold back the second bailout loan for Greece, because they want Greece to make more spending cuts, Greece said pay up or we will default on the first loan.

Greece is supposed to make their first payment, on the first bailout, in July.  Greek officials say they need the second bailout before then, or they won’t be able to make the first payment.  Greek Prime Minister George Papandreou, also warned of a “violent bankruptcy”.

The Belgian Finance Minister, Didier Reynders says there is evidence that the Greeks presented false economic statements prior to getting the first bailout loan.  This is one of many reasons the EU is now holding back on the second loan.

 

Business/Economics, International

What Economic Recovery? EU holds back on second Greek bailout, possible “catastrophic default”, wants Greece to make even more cuts

European Union finance ministers are holding back on another bailout loan for Greece.  They’ve decided that Greece to needs to make even more cuts to social services, and other government spending (which is called “austerity”, something that’s going on in the U.S., but U.S. officials and media have avoided using that term).

The EU decision came even after Greece announce it would sell off government properties, like airports.  In July, Greece is supposed to make a payment on the bailout loan they got last year.

EU finance ministers are worried that Greece will experience a “catastrophic default” if it does not make even harsher cuts in spending, and so are holding back on the second bailout loan.

Last week the International Monetary Fund warned that the global economic crisis had entered the “political phase”, meaning that only governments could save us now.  Not good when you see what’s happening in Europe.

 

Fukushima, U.S.

Missouri River causes “unusual event” at U.S. Nuclear Plants

The Cooper Nuclear Station, in Nebraska, is flooded.  The Fort Calhoun nuclear plant, also in Nebraska, has been shut down.

By Sunday, 19 June 2011, several levees failed along the Missouri River, causing nuke plant operators to issue a “Notification of unusual event.” A ‘notification’ is the lowest of four emergency classifications developed by the Nuclear Regulatory Commission.

Reuters reported that officials will shut down the Cooper nuclear plant if flood levels hit 13.9 meters (45.5 feet).  Other reports say the Fort Calhoun plant was shut down.  Heavy rain in the Rocky Mountains could keep the Missouri River high until August.