Tag Archives: idaho

Business/Economics, U.S.

Some Economic Recovery? Washington & Colorado legalize Marijuana!

“Assuming a fully functioning marijuana market and the assumptions following in this summary, estimated total revenue generated to the state could be as high as $1,943,936,000 over five fiscal years.”-Washington OFM Fiscal Impact Statement (I-502)

On 06 November 2012, voters in the U.S. states of Washington and Colorado legalized the recreational use of marijuana for adults.

Many people will claim this as a victory for civil liberties, but it could result in a huge boost to the economies of those states, as well.

According to Culture Magazine, in 2011 the state of Colorado collected $5 million USD in taxes from medical marijuana use, about $1.5 million more than the state’s electronics and appliance retail industry!

Now Colorado will be able to collect taxes on the recreational use of marijuana as well. According to supporters of the new law, it will also save law enforcement $12 million in the first year, and create $24 million every year for school construction projects.  They estimate that after five years legalized marijuana will result in $100 million per year in revenues and savings for state/local governments!

According to Washington’s own State Office of Financial Management, legalized marijuana will create almost $2 billion in tax revenue for the state, over the next five years!

State officials also expect increased revenue from fees for traffic violations, as a result of driving while under the influence of marijuana.

And by the way, this revenue comes even as the price of marijuana is expected to drop due to the fact that it’s now legal.  In Washington the marijuana tax system is a European style Value Added Tax, meaning it is taxed at production, distribution and at the final sale.  Essentially it’s taxed three times.

The problem now are the threats coming from Washington DC: “One of the nightmare scenarios for Washington is Congress gets really nasty and says, ‘Ha! No more federal highway dollars for you.’ If they do something like that then the financial loss vastly swamps any of the financial gains.”-Jonathan Caulkins, Carnegie Melon University

Idaho, U.S.

What Democracy? U.S. Main Stream Media say Idaho picks Mitt Romney, with 0% of polls reporting! More proof you wasted your time voting!

“These are party loyalists. We don’t get into the ‘faithless electors’ scenario.”-Ben Ysursa, Idaho’s Secretary of State, referring to Idaho’s Electors

The evening of 06 November 2012, with some people still voting in Idaho, and 0% of “polls” reporting, the U.S. main stream media confidently “projected” that Mitt Romney won the Gem State!

Could it be because Idaho is one of those states where the electors are made up of the dominant political party, and must vote accordingly?  Why yes!  So all you Idahoans who keep going to the polls, Presidential election after Presidential election, hoping to bring change with your vote, you’re all fools!

Do you know who Idaho’s Electors are?  Travis Hawkes, Republican who raised millions for Mitt Romney. Teresa Luna, Republican appointed to run Idaho’s Department of Administration.  Jason Risch, Republican attorney. Damond Watkins, Republican who gave Mitt Romney at least $1 million!

These Shadow Voters actually vote on 17 December 2012, weeks after the facade of the popular vote is over!

I’m not just targeting Republicans, the main stream media did the same for California and Hawaii, “projecting” that each of those states elected Democrat Obama, even though people are still voting as I write this!  (which was at approximately 21:00 hours Mountain Time, 06 November 2012)

 

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

Some Economic Recovery? Idaho’s $1 billion per year meat industry will get boost from Japan!

06 November 2012, the Japanese Health Ministry decided to ease restrictions on U.S. beef imports.  Seven years ago Japan banned U.S. beef from cows older than 20 months, because of the Mad Cow disease.

They will now take beef from cows as old as 30 months.  There is one condition, the brain and spinal column must be removed.

Japan is a major buyer of beef from the U.S. state of Idaho, and even with the 20 month age restriction, sales to Japan has helped Idaho's meat industry make about $1 billion USD per year ($2.5 million of that is from exports of beef)!

Japanese health officials say they’re raising the age restriction because there has been no Mad Cow reported in the U.S. for ten years.  Unfortunately that is not true, back in April it was confirmed that a cow in the U.S. state of California had the disease.

The real reason is probably economic: Japanese officials claim that more than 90% of U.S. beef exports to the rest of the world are from cows 30 months of age or younger, and their decision to increase their age restriction will help drop the outrageously high beef prices in Japan: “They say U.S. beef prices will come down about 20%, once the ban is eased and imports increase. I think our customers will be happy.”-Grocery store manager in Japan

Another reason could be that U.S. officials, backed by the U.S. beef industry, has been threatening to retaliate by restricting the sale of Japanese beef in the U.S.

 

 

 

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

What Economic Recovery? 3M says sales in the U.S. will continue to fall for years to come! Blames crashing solar power demand in U.S.!

“We will continue our Hefei project, which includes 12 big buildings. I believe, as a clean and stable energy, solar must be promising in the future. I don’t think the behavior of the EU and the U.S. is proper.”-Kenneth Yu, 3M China operations

31 October 2012, U.S. based 3M expects its U.S. sales to fall for the next five to ten years, and they expect China to become their number one market.

In their latest quarterly report, 3M showed a big jump in revenues from Canada and Latin America, up 10.5%.  The United States had increased sales of 2.3%. Sales in Europe, Africa, Middle East and Asia were flat.  However, 3M officials think that over the next decade their sales will boom in China.

They say they will streamline their operations, with their consumer and office supplies division looking like it will be drastically cut due to flat profits.  3M will continue investing in future markets.

3M has already invested $1.2 billion USD in China since 1984.  For the next five years the corporation, formerly known as the Minnesota Mining and Manufacturing Company, is investing $120 million in the solar power industry in China.

3M officials say global demand for solar power products are booming, and China is likely to become the center of the global solar power industry.

As an example of government incompetence, President Barack Obama, with support from the Republican controlled Congress, enacted outrageous tariffs on solar products from China.  It was the death blow to struggling Hoku Materials in Pocatello, Idaho.

The newly built polysilicon factory, in southeast Idaho, had locals hopeful that hundreds of desperately needed good paying jobs would be available.  Hoku’s contracts were with Chinese solar product companies that were directly affected by the tariffs.

Now it looks like U.S. based 3M is jumping ship for better shores in China.

Idaho, U.S.

Presidential emergency declarations made BEFORE hurricane Sandy hit the U.S.? Just because you live outside the hurricane zone doesn’t mean your state isn’t under a federal disaster declaration.

A Los Angeles Times article points out that the emergency declarations made by President Barack Obama, regarding New York and New Jersey (due to hurricane Sandy), were made without truly assessing the situation.

You can go to the FEMA website, and check out the disaster declarations.

Also, FEMA has a map which shows that at least 27 states are currently under some kind of Active Disaster declaration. Some of those involve flooding, some wildfires, some tornadoes.

States currently on the Active Disaster list: Alabama, Colorado, Connecticut, Delaware, Florida, Idaho, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Montana, New Hampshire, New Jersey, New York, New Mexico, Ohio, Oklahoma, Pennsylvania, Rhode Island, Vermont, Virginia,  Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia (aka Washington DC).

Business/Economics, Idaho, U.S.

What Economic Recovery? Don’t forget to add the Sears stores bought by GGP to the closing list. All part of REIT plan to change the way you shop, and they blame you the shopper!

“….those with high occupancies, solvent anchor tenants, good population density and access to affluent shoppers, as stable, low-risk, income-producing assets and will pay up for them today. Poor quality malls, on the other hand, are either not trading or selling at a steep discount, and perhaps are scheduled for demolition or conversion.”-Ryan McCullough, Property and Portfolio Research

21 October 2012

Back in February 2012, it was announced that General Growth Properties (the largest mall owner in the U.S., and also struggling) bought eleven Sears owned and leased anchor stores at various GGP malls throughout the United States.

According to a Wall Street Journal article, the overwhelming majority of the $270 million USD paid for those 11 Sears stores, is going towards just one store at the GGP mall in Honolulu, Hawaii.

Even though the Hawaii Sears store was the jewel of the deal, GGP wants to shut it down: “General Growth intends to eventually raze the store and build in its place several smaller shops, which deliver more rent in aggregate than department stores.”-Wall Street Journal, 23 February 2012

Other reports say all 11 Sears stores bought by GGP will be closed by the end of 2013: “The stores will continue to operate as Sears locations into 2013 with final closing dates to be determined and announced later this year.”-RetailTraffic, 23 February 2012

So the purchase of Sears owned and leased anchor stores, by GGP, was not an effort to save those stores, but part of bigger plan to shut down big department stores (except for WalMart of course).

According to a 03 October 2012 article by CoStar Group (a commercial real estate information company), what’s happening with Sears and Kmart is part of a much bigger plan to drastically change up shopping malls and plazas in the United States: “I don’t think we’re overbuilt, I think we’re under-demolished……there are projects that are not going to lease. Retail has a finite lifespan and once you reach that lifespan, you can put up all the signs you want, and charge as low rent as you want, but that doesn’t make tenants want to take the space.”-Daniel Hurwitz, DDR Corp (formerly Developers Diversified Realty Corporation)

Big corporate retail property owners are also known as Real Estate Investment Trusts (REIT), for tax reasons.  GGP, as are other mall/plaza owners, is a REIT.

According to the CoStar article, REITs claim that traditional malls/plazas/stores only do well in areas with high population and a relatively high level of income for the people who live there.  Does that leaves most of Idaho out?

Foothills Plaza, Pocatello, Idaho. What'll happen when the WinCo moves from here to their new location in the Alameda Plaza?

GGP owns malls in Idaho Falls, Chubbuck, Boise and Coeur D Alene, plus Alameda Plaza (aka Old Fred Meyer store) in Pocatello (some hope there is that it’s now the site of the new bigger WinCo store).  Boise might be the only area of Idaho that meets REIT description of a successful commercial area; Boise is a “lifestyle & power center”.

pine ridge mall

Fading Pine Ridge Mall, Chubbuck, Idaho. Some hope, this anchor store is the new home to upscale Herbergers (never heard of them).

According to CoStar Group data, regional malls, power centers and community center properties averaged a vacancy rate of 50.6%!  But the bigger malls did not enjoy less vacancy; super-regional malls averaged 54.5% vacancy!

The problem, according to most vulture REIT crony capitalists is location, location, location.  Most retail operations are now located in parts of the country where personal incomes are down, hence shopping is down (in a round-a-bout way the vulture capitalists are blaming you the shopper, never mind the fact that vulture crony capitalism is what’s causing most people to lose jobs or see their incomes go down).

“When you have tenants looking for space and nothing new being built, and we’re sitting at mid-90% occupancy levels, it’s hard to argue we’re overbuilt when they’re scrambling to find 10,000 square feet.”-Daniel Hurwitz, DDR Corp

What Hurwitz is saying is that there’s plenty of empty stores for rent, but retail tenants don’t like what is available.  Those potential tenants are basing their preferences on what they perceive to be what shoppers want.

To make matters worse, the closing down of Sears, Kmart, The Gap and Office Max stores will add another 15 million square feet of available store space to the flooded commercial real estate market!

Moody’s Investors Service pointed out that malls located in lifestyle & power centers continue to make profits, while malls outside those areas are losing money and will continue to lose money. Also, it’s probably not worth trying to rebuild those malls located outside of lifestyle & power centers: “Renovating or reconfiguring an underperforming mall may cost many millions……What’s more, should the location lose its viability for retail altogether, the value to revert to land less demolition cost will produce an even greater loss.”-Tad Philipp, Moody’s

In other words, these vulture REIT crony capitalists don’t think things are going to improve for areas outside the lifestyle & power centers anytime soon.

As I quoted Ryan McCullough at the beginning of this article,  new retail businesses need to be located where there’s a lot of people, and those people have high levels of income.    So what we’re seeing, with the closing down of many iconic U.S. retail businesses, is part of the bigger plan of those Mitt Romney style vulture crony capitalists who are simply, in their minds, following the big revenue money from the big income consumer (rich people living in those lifestyle & power centers).

Here’s the list of 11 Sears stores now owned by GGP:

Iowa: Coral Ridge Mall, and Mall of the Bluffs

Texas: The Woodlands Mall

Florida: West Oaks Mall

Utah: Fashion Place, and Provo Towne Centre (note the evil British empire way of spelling town & center)

Oklahoma: Quail Springs Mall

Hawaii: Ala Moana Center

Washington: Bellis Fair Mall

Minnesota: Apache Mall

Illinois: Market Place Shopping Center

 

Business/Economics, Idaho, U.S.

What Economic Recovery? More Sears mall leases not being renewed, more Kmart leases allowed to expire!

“We made a decision not to renew the lease.”-Chris Brathwaite, Sears Holdings

19 October 2012, as I warned, Sears/Kmart continues to close stores simply by not renewing their leases.

Residents of Kelso, Washington, learned on 17 October that the Sears in their local mall is going away in January.

Kelso’s Three Rivers Mall isn’t doing so well anyway, but dedicated mall walkers are upset by the Sears announcement: “We’re worried about foot traffic going down…..I just worry that we won’t be here in a few years.”-unnamed store manager

The owners of the mall said they knew about the Sears closing before the official announcement: “The Sears closure is something we anticipated some time ago and as a result are working with a number of exciting retailers…”-Rouse Properties statement

Pennsylvania is learning of another Sears closing.  On 17 October the local media revealed that the Sears at Penn Center East, in Wilkins, will not renew its lease, resulting in 135 people losing their jobs by January 2013.  Wilkins Township commissioners swear a new WalMart will take its place.

In Virginia, the new owners of the Liberty Fair Mall announced they will allow a “homegrown” store to fill the void left by the outgoing Sears.  I worked for mall owners J Price Realty before the Pine Ridge Mall (in Chubbuck, Idaho) was sold to General Growth Properties (and they contracted out almost all our jobs), and one policy was that the big ‘anchor’ stores had to be national chain stores.  So, for a mall owner to allow a “homegrown” local shop in as an anchor store is a sign of trouble.

I’ve seen it here at the Pine Ridge Mall, when General Growth Properties (who actually had a policy that all the stores in the mall had to be national chain stores) went back on their own policy, stopping their ‘eviction’ of local stores (they were evicting local mom & pop stores by jacking up rents to astronomical levels, I saw the official corporate order from Chicago which had been left in plain view on the mall office copy machine) and even allowed local stores to temporarily occupy the empty Macy’s anchor store.

To try and raise money, Sears has spunoff its Sears Hometown, and Outlet Stores as separately traded stocks.  The move made Sears Holdings (aka Hoffman Estates) $446.5 million USD, according to the Washington Post.   Yet store closings continue.

In another move to try and generate revenue, Sears and General Electric signed a deal to sell GE’s Brillion Connected Home Solutions products.  (yet another connection to the too Big to Fails, three former GE execs just got sent to prison for ripping off U.S. taxpayers)

On 18 October, residents of Freeport, Illinois, learned that Kmart will go away in January 2013: “We made a business decision not to renew the lease.”-Chris Brathwaite, Sears Holdings

Notice the above statement from Brathwaite is the very same statement made concerning the Three Rivers Mall in Washington!  Like I keep saying; what economic recovery? “It’s just an indication that we haven’t gotten to that point in terms of economic recovery that there is consumer confidence and people are willing to go out and spend…”-David Young, Northwest Illinois Development Alliance

Brathwaite made the very same announcement concerning the Pontiac, Illinois, Kmart on 13 October:  “We made the announcement to Pontiac associates on Wednesday.  It was a business decision to not renew our lease.”    (it’s now obvious this Brathwaite is a robot, cause he says the same thing at every announced closing, just insert name of town and how many people will lose their jobs)

In California, the Kmart in the DVC Plaza in Pleasant Hill (near Oakland) will close after 40 years in business.  The lease will not be renewed, more than 50 employees will be laid off.

In Colorado, about 52 employees will be out of work after the lease expires for the Kmart at Pueblos’ South Side.  The store has been there since 1974.

74 Kmart employees just learned they will be unemployed by January 2013, because the lease for the Cartersville, Georgia, store was not renewed.

52 people will lose their jobs when the Woodhaven, Michigan, Kmart closes on 13 January 2012.

In New Jersey, about 80 people will be unemployed when the Lawnside Kmart closes in January.  The same announcement came from Sears Holdings, but actually from a different person: “The lease is not being renewed at that location.”-Kim Freely, Sears holdings

It seems the owners of Sears/Kmart (Sears Holdings/Hoffman Estates/and don’t forget the Mitt Romney/Bain Capital/Carlyle group connection) are shifting Kmart’s focus to female Spanish speaking customers.  On 18 October it was published that Hoffman Estates will pick five Latinas for a 10 week paid internship at their Illinois headquarters. It’s called the Latina Smart program.

Here’s an updated list of Sears/Kmart closings:

Alabama: Gadsden Kmart, Mobile Sears Grand/Essentials, Auburn Kmart.

California:   El Monte Sears Grand/Essentials, two San Diego Sears Grand/Essentials, recently revealed Pleasant Hill Kmart.

Colorado:  Broomfield Kmart, Glenwood Springs Kmart, Lone Tree Sears Great Indoors, Longmont Sears, recently revealed Pueblos’ South Side Kmart.

Georgia: Macon Sears, Buford Kmart, Douglasville Kmart, Atlanta Kmart, Columbus Kmart, Jonesboro Kmart, recently revealed Cartersville Kmart.

Florida: Fernandina Beach Kmart, Callaway Kmart, Orange City Kmart,  Deland Sears Grand/Essentials, Stuart Sears Grand/Essentials, West Palm Beach Sears Grand/Essentials, Port St. Lucie Sears Grand/Essentials, Crystal River Sears, New Smyrna Beach Kmart, St. Augustine Kmart, Pompano Beach Kmart, and recently revealed Jacksonville Kmart.

Idaho: Lewiston Sears.

sears chubbuck
Floundering Sears at the GGP owned Pine Ridge Mall in Chubbuck, Idaho.
Kmart Pocatello
Floundering Big Kmart in Pocatello, Idaho. Are they next to go in Idaho?

Indiana:  Anderson Sears Full Line, Saint John Kmart, Indianapolis Kmart.

Illinois: Melrose Park Sears parts and repair center, and recently revealed Freeport and Pontiac Kmarts.

Iowa:  Cedar Rapids Kmart, Davenport Kmart, Burlington Kmart.

Kansas: Lawrence Sears Full Line.

Kentucky: Middlesboro Sears Hard lines, Winchester Kmart, Hazard Kmart.

Maine: Lewiston Sears.

Maryland: Ellicott Sears Grand/Essentials.

Michigan: Brighton Sears Grand/Essentials,  Harper Woods Sears Full line, Monroe Sears Full line, Adrian Sears Full line, Washington Township Kmart, Chesterfield Kmart, recently revealed Woodhaven Kmart.

Minnesota: Willmar Kmart, Duluth Kmart, New Hope Kmart, White Bear Lake Kmart.

Mississippi: Jackson Sears Full line, McComb Sears Full line, Columbus Sears Full line.

Missouri: Lee’s Summit Sears Grand/Essentials, Saint Louis Sears Full line.

Montana: Missoula Kmart.

New Hampshire: Nashau Sears Grand/Essentials, Keene Sears Grand/Essentials.

North Carolina: High Point Sears Full line, Moorehead Sears Full line, Rocky Mount Sears Full line, Statesville Sears Full line.

New Jersey: Recently revealed Lawnside Kmart.

Ohio: Chagrin Falls Kmart, Springfield Kmart, two Toledo Kmarts, Medina Kmart, Columbus Kmart.

Oregon: Roseburg Sears Full line.

Pennsylvania: Upper Darby Sears Full line, Pottstown Sears Full line, Pittsburgh Kmart, and recently revealed Wilkins Sears.

South Carolina: Sumter Sears Full line.

Tennessee: Antioch Sears Full line, Cleveland Sears Full line, Oak Ridge Sears Full line, Hendersonville Kmart, Morristown Sears Full line.

Virginia: Norfolk Sears Full line,  Midlothian Kmart, Richmond Kmart.

Washington: Walla Walla Sears Full line, Lacey Kmart, and recently revealed Kelso Sears.

Wisconsin: West Baraboo Sears Grand/Essentials, Rice Lake Kmart.

Don’t forget, this is the 2012 known list of closings, there were closings in 2011 and 2010 as well, and they’ll be more for 2013.

Side note: it seems Sara Palin likes shopping at Kmart.

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

Global Food Crisis & What Economic Recovery? Crops being destroyed by weather, disease and plagues of Red Squirrels! Crop prices going up, good for Idaho farmers with crops to sell, bad for you at the grocery store check out! Is it all smoke & mirrors bull shit?

17 October 2012,  despite reports indicating crop destruction worldwide, and within the U.S., the U.S. Department of Agriculture (USDA) reports (in their newly released October 2012 report) that overall crop production in the United States is way up (if you throw out corn & soybeans).

A major indicator of crop destruction is the announcement by Farm Credit Service of America (FCSA) that insurance payouts, to U.S. farmers who’ve lost crops, will be at least $25 billion USD, but could hit $40 billion for 2012.

FCSA blames the insurance claims for most of the U.S. crop losses on drought.  Even the USDA reported that the entire state of South Dakota is suffering severe to exceptional drought.  South Dakota farmers, alone, have filed more $149 million in insurance claims.

Some states are now experiencing corn crop destruction because of early freezing temps.  So, in states like Arkansas and Kentucky, not only have drought and cold weather hurt corn production, but the October/Halloween corn mazes aren’t happening because the stalks are too short. The result is that revenue from agritourism is going down (the USDA does agritourism surveys every five years, the last one in 2007).

It’s so bad that corn crops from the Midwestern states are considered destroyed (U.S. corn production is at its lowest point since 1995).  The result is corn prices are soaring.  By 15 October, corn commodity prices increased 5% at the Chicago board of trade.

Last year U.S. corn prices averaged $6.22 per bushel, this year the average is now $7.80!  Some analysts say it’ll hit $8.25 before the end of the year.

The U.S. corn crop destruction is part of a worldwide decline in corn crops. Currently international corn stockpiles are 14 million metric tons below what was expected!  (keep that in mind; “what was expected”, research UN data and you’ll learn that there’s still a lot of corn out there)

Apples are down as well. My own apple tree (here in Idaho), as well as my neighbors’ apple trees, have produce only a fraction of what they normally put out.  In the state of Michigan apple farmers are reporting the same thing, saying their trees produced only 10% of normal output!  An apple farmer in Michigan reports his agritourism revenues way down at his U-Pick apple farm.

In Indiana, apple farmers report getting only 25% of their normal apple harvest.  The Washington Growers Clearing House reports that apple commodity prices are 13% higher than last year.  But that’s good news for Washington state apple farmers; they’re reporting a record harvest.

Even with their record harvest, apple growers in Washington can not make up for crop loses in the rest of the U.S.  As a result, with the high commodity prices for apples, Washington apple farmers could see a record $7 billion in revenue for 2012!  By the way, if your willing to pick apples reports say Washington apple farmers are unable to fill 700 apple picking jobs.

Why the decrease in apples in the rest of the country?  Some states are blaming earlier than normal freezing temps, but several states are reporting a plague of red squirrels.  In Vermont some apple farmers report the squirrels ate half their crop.  In South Carolina, squirrels are blamed for killing more than 100 apple trees.

While biologists suggest that warmer than normal temps caused an increase in squirrel populations (causing an increase in food sources), they admit no one could have predicted this year’s huge numbers of squirrels.  The squirrels are now devouring apples because their normal food source, acorns and beechnuts, are way down this year.

Around the world, in Russia, Ukraine, Finland, Korea (north), India, Pakistan, and in African countries, crops have been destroyed by drought, or other extreme weather events like flooding.

In Japan, domestic agriculture has not only been affected by weather but by the ongoing nuclear disaster at Fukushima Daiichi.

In Afghanistan, farmers report hundreds of acres of crops destroyed by disease.

In Zimbabwe, farmers who couldn’t pay their electric bills had the power cut off to their irrigation pumps.  A farmer said the power was cut without warning, even thought they tried to make payment arraignments with the utility company: “We admit we owe ZESA a debt of $3,000 but they should not have disconnected us without discussing our payment arrangements which we had submitted. The farmers were willing to settle their debts after harvesting their crop during the first week of November.”-Newton Gwetu

In India it’s not just weather, but animals.  Farmers are reporting that their crops are being destroyed by rampaging wild boars and elephants. Elephant rampages have been reported since August.

It’s not just elephants in India, but elephants in African countries are also rampaging.  In Tanzania, officials report elephants have destroyed villages and crops: “Up to now people are helpless and TANAPA [Tanzania National Park] rangers are just watching the destruction without taking any action.”-Jumanne Kwiro, Serengeti District Council

In Australia, the climate change is being blamed for driving feral pigs to eating farmers’ crops: “We’re seeing enterprises being destroyed, also pressure in grazing lands that we haven’t seen before. Going into drier seasons we’re really looking at grazing problems as well as destruction of crops.”-Rachel Pratt, Queensland’s AgForce

Australian ag officials are also concerned the exploding feral pig population will affect cattle: “Pigs carry diseases like bruscellosis, leptospirosis and paracites and also they can also carry potentially exotic diseases like foot and mouth.”-Ben Gardiner, Australian Veterinary Association

The International Center for Tropical Agriculture (CIAT) and the International Maize and Wheat Improvement Center (CIMMYT) recently reported that corn and wheat crops in Central America are expected to continue their downward trend, averaging a loss of $120 million per year by 2020: “Even with our most conservative estimates, it’s clear that climate change could transform the agricultural landscape across Central America.”-Anton Eitzinger, CIAT

One activist said farmers need to be more adaptable to radical changes in climate: “Extension services across the region need to be reinvigorated to train small farmers in soil and water management. And governments need to lead, they have the ability to make a real difference through setting climate-smart agricultural policies.”-Paul Hicks, Catholic Relief Services

War can be blamed for crop destruction as well. Not just the obvious destruction by bombing and gunfire, but illegal Israeli settlers, in Palestinian territory, have been actively destroying Palestinian olive trees.  More than 500 Palestinian olive trees destroyed by illegal Israeli settlers, so far in 2012!

But what about crops that we don’t eat?  The clothes on your back could be threatened as well.  Cotton crops in Pakistan and India have been destroyed by recent floods.  However, Indian officials have stated that many cotton farms that survived the floods will actually produce bumper yields.  (also, cotton production in the U.S. is up, according to the October 2012 USDA report)

Again, those areas that are not suffering from crop destruction tend to be enjoying bumper crop yields, which means those farmers will also enjoy the higher revenue due to the higher commodity prices, created by speculators supposedly fearful of crop destruction.

While researching Food and Agriculture Organization of the United Nations (FAO) I noticed that their most recent graph of global food production shows a steady increase, year after year.  Yet back in August, the UN actually asked the United States to stop bio-fuel production so those crops could be used for food!

The problem isn’t a lack of crops, the problem is the increasing cost to people who need to eat those crops.

There are several examples from the 1990s, such as U.S. rice rotting on Haitian docks because Haitians couldn’t afford to buy it, and African tomato farmers who left their crops to rot in the field because forced competition from Italian companies drove down tomato prices so low it wasn’t worth harvesting the fruits.

Is that what’s happening now, but on a global scale?  Is this what our leaders  mean by leveling the playing field of globalization?

I live in a state that is experiencing bumper crops: Idaho.

Idaho’s dry bean production is up 61% from 2011 (in fact bean production for the entire U.S. is expected to be 56% more than last year).  Despite bean production being so high, speculators are also keeping prices for beans high. Commodity prices for beans are currently about 40 cents per pound, some bean prices are down from last year but they’re still near record highs: “That’s still the best price I’ve ever got myself! I’m not going to complain.”-Dana Rasmussen, Idaho bean farmer

The USDA says Idaho’s canola production has doubled from last year (canola production is also up in Washington & Oregon).  Ag officials attribute this directly to higher commodity prices driven by speculators: “The number one  reason for this increase is there have been excellent and very competitive prices available for farmers.”-Jack Brown, University of Idaho

Idaho’s alfalfa production was down 7%, but that reflects those hay farmers who do not have irrigated fields.  Idaho hay farmers with irrigation actually saw bumper alfalfa yields: “I would say our yields were up a half to a ton per acre. It was a warm summer, and alfalfa loves heat and water.”– Will Ricks, Idaho Hay and Forage Association

Even though Idaho hay farmers with irrigation had bumper crops, the demand for those crops far exceeded supply: “Hay producers were getting calls from dairies in the Midwest. They were willing to pay $300 per ton plus shipping, but nobody had any hay to sell.”-Glenn Shewmaker, University of Idaho

Ag Officials from other states are lamenting just how much Idaho’s ag industry has grown: “Idaho has increased in just two years the equivalent of the entire state of Maine’s production. The July 2012 U.S. Department of Agriculture’s crop production report showed Oregon at 41,000 acres, Colorado at 55,000, Michigan at 46,000, Minnesota at 51,000, Maine at 59,000, New York at 17,000 and Wisconsin at 63,000 acres.”-Bob Davis, Maine Farmers Exchange

What is Bob Davis talking about?  Idaho’s farming acreage has grown, in just two years, to 345,000.   That’s 13,000 more than Oregon, Colorado, Michigan, Minnesota, Maine, New York and Wisconsin combined!!!

You might say Idaho’s ag industry is good for the economy, providing jobs for Idahoans.  But that ain’t so.  Most ag workers are migrants, and even though there’s a shortage of migrant workers many Idaho farmers complain that Idahoans aren’t willing to work for the peanuts they pay.

Idaho law states that farm workers must be paid minimum wage (currently $7.25 per hour in Idaho), however, if a farm laborer is “contracted” that’s a different story: “When I first talked to the farmer about work, he told me that he would pay me $14 per acre. I worked nine hours every day for over a week, but the work was so hard I was only able to do three acres a day. On payday, my boss made up all kinds of excuses and ended up paying me just $11 per acre, which comes out to about $3.60 an hour…. I didn’t know what to do. I have two children to feed.”–Gloria Paniagua, Cassia County, Idaho

Being a contracted farm worker is similar to being on salary, a really bad salary.

According to a report by Idaho Community Action Network, and the Northwest Federation of Community Organizations, the average wage earned by farm workers in Idaho is $5.97 per hour, working ten hours per day, six days per week.

So what’s the point of all this?  There is no food shortage!  Reports show that while there are massive crop losses, those farms still producing are producing record yields!  UN agencies (FAO) report record global ag production almost year after year!  Crony capitalist speculators (who’re probably working for the corporate farms) are driving up food prices, even when there is no shortage of the resources!  Farmers with crops to sell are making big money because of the increased commodity prices and because of the dirt wages they pay their workers!  Don’t forget to add in escalating transportation costs! The net result is everyone is going to pay unjustifiably more for their food at the grocery store or restaurant!

Did you get a pay raise?

Business/Economics, Idaho, U.S.

What Economic Recovery? I warned you! U.S. gas & Diesel prices about to launch, weekly stockpile report shows supply shortage! Blame PADD 1 & 3! Western U.S. being made to pay for shortages in Eastern U.S.?

“‘This is ridiculous,’ said Criley, 55, who pulled into a Valero station off Hamilton Avenue in San Jose where gas was selling for $4.61 a gallon. A station attendant told him that he had just raised the price 20 cents five minutes earlier. ‘It had been holding at $3.99 for a couple of weeks. Now this. You betcha this hurts.'”-The Oakland Tribune, 04 October 2012

“Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. are beginning to shut pumps because of supply shortages that have driven wholesale fuel prices to record highs.”-Bloomberg, 04 October 2012

“The U.S. average retail price of regular gasoline decreased five cents last week…Prices decreased in all regions of the Nation except the Rocky Mountains….The national average diesel fuel price decreased a nickel…”-U.S. Energy Information Agency, 26 September 2012

So, in September average retail fuel prices slightly decreased.  In some places, like Idaho, per gallon Diesel (distillate fuel oil, DSO) prices held almost steady while gasoline went down a piddly few cents.  Now prices are already going back up.

Do not blame the gas station operators!!!  I managed a gas station in Santa Maria, California, decades ago, and I can tell you the profit margin is just too small at the retail level.  In fact, the current situation in California is shutting down family owned gas stations: “Gas is costing me almost $4.75 a gallon with taxes. There’s no sense in staying open. The profit margins are so low it’s not worth it.”-Sam Krikorian, owner Quality Auto Repair in North Hollywood

A Montana based petroleum industry analysts agrees: “The mom and pop gas stations are having to close down from either not being able to obtain gasoline from their regular distributor or cannot afford the break-even price of almost $5 per gallon!”-Bob van der Valk

Back at the beginning of September I warned of higher fuel prices for October.  This was based on the futures (commodity) prices of fuel, which are usually four weeks out. I basically warned that on 12 October 2012, DSO fuel prices could hit around $5.15 per gallon!

I also explained that fuel prices in the Petroleum Administration for Defense Districts (PADD) 5 area (Alaska, Arizona, California, Hawaii, Nevada, Oregon, Washington) was being hit by fuel refinery shut downs, for reasons known and unknown (and so is the rest of the country).  It looks like that situation has not changed, and might actually be worse on the east coast and along the Gulf of Mexico!

Several media sources are reporting that California fuel refiners are actually rationing out fuel!   The result is that gasoline is reported to have jumped by a full dollar in one week in some parts of the Los Angeles area!

Phillips 66 is shutting down two California refineries for maintenance.  A Chevron pipeline was shut down because of contamination.  On 01 October, a ExxonMobil refinery was shut down because of a power outage. And according to a Bloomberg report, the narcissistic environmental policies created by California politicians/environmentalists have made it impossible to import fuels from outside California!

So don’t blame Obama!  Obama has allowed the opening of more oil fields than any other U.S. President (a true oil man)!!! It’s the fault of the oil companies and fuel refiners, and stupid laws in California!  And that’s the real crux for the drivers in California, the stupid laws!

Even though California is part of PADD 5, their fuel refining laws are so strict that fuel made outside California, yet still within PADD 5, can not be sold inside California!!!

Oh, and the prices Californians are seeing now don’t even reflect what the gas station owners are paying: “Really, since the Chevron Richmond fire, inventories have been tight. As other refinery problems occur, there isn’t much or any available inventory. Retailers are not yet reflecting the wholesale price increases they have experienced...”-Tom Robinson, Robinson Oil

How about PADD 4 (Colorado, Idaho, Montana, Utah, Wyoming)?

Phillips 66, Pocatello, Idaho, 04 October 2012.

According to the U.S. Energy Information Agency, the current average retail price for PADD 4 area DSO is $4.20 per gallon.  If you notice in the pics I posted, here in Bannock County, Idaho, diesel prices range from $4.30 to $4.40 per gallon, at the cheap fuel stations.

CommonCents, Chubbuck, Idaho, 04 October 2012.

For regular octane gasoline, USEIA says the average PADD 4 area retail price is $3.76 per gallon.  My pics show that where I live it’s at least $3.82-$3.84 per gallon.

Padd 4 fuel stockpiles have been stable for all types of gasoline, around 6 million barrels, that’s according to 28 September 2012 data.  All types of DSO, in PADD 4 area, has a stockpile of about 3 million barrels, steady for the past four weeks.  So stockpile issues do not explain why prices in Idaho are higher than the PADD 4 average.

It’s not production issues either.  PADD 4 production has gone up.  DSO production at the end of September was averaged at 0.174 millions of barrels per day (mbpd).  Last year it was 0.156 mbpd.

PADD 4 gasoline production ended September with an average of 0.296 mbpd. At the same time last year it was 0.254 mbpd.

In fact, even in the troubled PADD 5 area, USEIA data shows stockpiles and production hasn’t changed that much in the past four weeks.  (stockpiles of DSO in PADD 5 have actually gone up in the past two months!)

Is it demand?  Nope.  According to USEIA, overall demand for fuel in the United States has gone down slightly since last year!

Average demand for gasoline was at 8.6 mbpd at the end of September, last year it was 8.9 mbpd.  For DSO the average demand was at 3.6 mbpd, compared to last year’s 3.8 mbpd.

The USEIA reported that at the end of September, for the country as a whole, raw oil stockpiles were down by 500,000 barrels.  The ‘expert’ media analysts had expected an increase of 1.5 million barrels!  Overall stockpiles of gasoline went up by 100,000 barrels.  The big loser is DSO, with stockpiles falling by 3.7 million barrels!!!  The net result being an overall reduction in petroleum supplies!

Well, if stockpiles and production are steady or actually up in PADD 4 & 5 areas, and demand is slightly down for the country, then why would overall supplies be low?

Blame PADD 1 and 3!  Stockpiles and production are crashing on the east coast and in the Gulf states!

At the end of September PADD 1 had 41.1 million barrels of DSO, a 20 million barrel drop from last year’s 61.5 million!  Gasoline is at 46.1 million barrels, compared to last year’s 55.3 million barrels!

PADD 3 ended September with 67.4 million barrels of gasoline, last year they had 74.9 million!  DSO saw a huge drop, from 50.8 million barrels last year to 37.4 million barrels at the end of September this year!

For such a big drop in stockpiles, PADD 3 averaged DSO production is unchanged from last year, at 2.4 mbpd.   PADD 1 DSO production average is down slightly from 0.4 mbpd last year to 0.38 this year.

The same can be said of PADD 1 gasoline production; 2.8 mbpd this year versus 2.9 mbpd last year.  Average gasoline production for PADD 3 ended September at 1.8 mbpd, last year it was at 2.1 mbpd, so a big drop there.

This begs the question: Is the western half of the United States being made to pay for shortages that should only be affecting the eastern half of the country?

“I see no reason for this at all. Sounds like a load of rubbish to me!”-Errol Emrich, pissed off California driver

PS: Wholsale/futures/commodity prices for refined fuels ended September 2012 higher.  So expect even higher prices at the pump next month!  Wish the U.S. petroleum industry a Happy Thanksgiving!

Idaho, U.S.

Ann Romney pissing off U.S. women?

The following was posted in the Tuscola County Advertiser in Michigan:

Ann Romney made a concerted effort to paint a picture of her husband and herself as supporters of women in her talk at the Republican National Convention. She was definitely out of her element when she tried to show empathy for women and families struggling to pay bills, to buy gas and fuel, and coping with daily personal tensions.

Unlike most families with moms working outside the home, or a single parent without a partner to assist and support them, Ann has had cooks, maids and nannies. While her battles with cancer and M.S. were trying, she was able to afford top-notch treatment and emotional support.

She has neither the personal or professional authority to talk about the difficulties of poor, working class or even middle class Americans. Her remark about women doing more and doing it happily made many women cringe. She must not be aware that with working women making 80 percent of what men do, women have to do more just to break even. And her husband has been a proponent for such unfairness.

It’s important to know that the Romneys’ LDS church (Latter Day Saints or Mormon) opposed the passage of the Equal Rights Amendment which would have guaranteed women equal rights. In addition, the southern Bible Belt states plus those states with a strong Mormon presence (Utah, Nevada, Idaho and Arizona) opposed the passage of the ERA amendment. The church even ex-communicated Sonia Johnson, a part-time school teacher and mother for her role in organizing Mormon support for this amendment.

The LDS is a male dominated hierarchy. Women are not allowed to hold the priesthood or serve as elders in their church. They cannot reach as high a ranking in heaven as their husbands. Mothers stay home and are primarily responsible for the nurturing of their children. Women’s “sacred” and “divinely” sanctioned job description as homemaker, wife and mother is heavily emphasized. Large families are encouraged.

Since LDS couples marry so young, women must forfeit their own education and careers. Without college degrees or marketable job skills, most women are financially dependent on their husbands, with few options should their marriage not last “into the eternities”. They believe only women who are married in a church temple will have eternal life and parents are unable to attend the ceremony if not Mormon. (Of course they believe any non-Mormon will go to hell.)

A majority of our population is not aware of the LDS church’s impact on its members. Their beliefs aren’t in agreement with what most women want and need. While living in Idaho among LDS neighbors, working in professional fields for seven years, and our sons attendance at Boise State University, our family learned about this church’s insidious domination of and influence on state government policies, public schools and lifestyles.

Don’t let Ann’s sweetness and charm overshadow the Romneys’ true beliefs and motives.

Bonnie Johnson