Tag Archives: ows

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

Corporate & Government Incompetence: Fake parts found in U.S. military weapons! Blame China, Canada & Britain

“…just the tip of the iceberg.”-Carl Levin, U.S. Senator from Michigan

The Washington Post reporting that counterfeit parts have been found in weapons used by the U.S. military.

A Senate Armed Services Committee investigation found 1,800 cases of more than one million fake parts in U.S. weapon systems!

70% of the parts have been traced to Chinese factories.  20% came from Canada and United Kingdom.  Most of the parts are electronic: “We can’t tolerate the risk of a ballistic missile interceptor failing to hit its target, a helicopter pilot unable to fire his missiles or any other mission failure because of a counterfeit part.”-John McCain, U.S. Senator from Arizona

Here’s a solution: The U.S. military industrial complex should stop using supplies from outside the United States!!!

 

 

 

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

March 11 Tsunami debris, including waterborne radioactive contamination, will reach U.S. in 4 months, EPA to begin monitoring

November8, the Environmental Protection Agency (EPA), and the National Oceanic and Atmospheric Administration (NOAA), will begin monitoring for at least three million tons of tsunami debris, due to hit Hawaii by March 2012.

Debris has already reached 900 kilometers (559 miles) west of the Midway Islands.  Scientists are warning that the debris (not to mention debris contaminated with radiation) will affect ecosystems, and tourism.

Japan’s National Institute for Environmental Studies made the official estimate of three million tons of debris, and we all know how the Japanese government underestimates things!  The flotsam will hit the west coast of North America by the end of 2012.

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

What Economic Recovery? Toyota to cut production by at least 30%, blaming floods

First the March 11 disasters in Japan, now the floods in Thailand.  Toyota says they can’t get enough parts to build their cars.

Toyota and Honda are suffering major parts supply problems (Honda already cut North American production by 50%).

Toyota is cutting back on worldwide production.  November 7, according to NHK, Toyota will be forced to cut production by at least 30%.

Toyota was trying to recover from the March 11 disasters, and had hoped to produce 330,000 vehicles in Indonesia, for the month of November.  Now they are hoping they can produce 230,000.

Blame it on the incompetent ‘just in time’ parts supply policy.

 

 

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

Occupy the World, Corporate Incompetence: Camera maker Olympus never reported losses, for at least a decade!

November 8, scandal for Japanese owned camera and industrial equipment maker Olympus: They deliberately kept losses off their finance books since the 1990s.

More proof that corporations can’t be trusted. The scandal wasn’t the result of Olympus officials confessing, it was the result of a third party investigation!

The losses come from securities investments.  Company officials tried to cover up the losses by blaming it on consulting fees, and the purchase of three smaller companies.

Olympus stock is now crashing on the Japanese stock market.  Olympus Vice President Hisashi Mori was fired for his involvement in the cover up.

 

Business/Economics, Idaho, U.S.

Occupy America: Gasoline vs Diesel prices, East Idaho gas prices drop while diesel remains the same. International demand means bad news for diesel users

As of November 5, 2011, some of the fuel stations in the Pocatello/Chubbuck area had dropped their gas prices to $3.29 per gallon.  Yet diesel prices remain unchanged, still between $3.99 & $4.09 per gallon.  Local gasoline prices had been falling steady for more than a week now, diesel has not.

fredmeyer november 5 2011

Fred Meyer, Pocatello, Idaho

According to indexmundi diesel commodity prices have been falling ever since prices peaked in July, 2011.  August saw a 5% drop, and September saw another 1% drop.  In September the average daily commodity (New York Harbor Ultra-Low Sulfur No 2 Diesel Spot) price for diesel was $2.98 per gallon.

phillips66

Phillips 66, near Kmart, Pocatello, Idaho

For those of you who continue to believe it has something to do with low sulfur refining, let me remind you that the commodity price is for already refined diesel.

Indexmundi also reports that refined gasoline commodity prices have been falling, also since their peak in July.  Gas (New York Harbor Conventional Gasoline Regular Spot) has actually been falling more then diesel: August saw a 6% drop, September a 2% drop.  The average daily commodity price for gasoline in September was $2.77.

Interestingly, The Associated Press reported in October that wholesale fuel prices went up, which contradicts the indexmundi web site.

Here’s the bad news for diesel users: When we look at the latest November commodity prices diesel has actually gone up; $3.06 as of November 1, versus gasoline commodity prices which were only $2.7o per gallon.

This might explain why diesel pump prices haven’t dropped, and why gasoline pump prices should continue to drop (unless you’re living in an area of the U.S. that’s actually seeing gas prices go up).  The latest diesel commodity prices also indicate that pump prices will probably go up.

In a quick survey of international news stories, it seems diesel prices are going up because of growing demand around the world.

In the Indian state of Manipur, an economic blockade has caused fuel prices to jump by four times, since the blockade started on August 1.  Basically there are people in Manipur that are seeking independence from India.

The Indian government controls the price of fuel in the country (it’s part of how the Indian government generates revenue for itself, and they’re hurting for more revenue), and is trying to hold off on raising diesel prices anymore: “It is always difficult to raise diesel prices as it is widely used by farm sector and industry for transportation. It is not perceived as a luxury fuel.”-Victor Shum, Purvin & Gertz.

On October 25, Reuters reported that China’s busy economy will drive diesel prices upward, and that fuel producers can’t keep up: “In the last 12 months China’s demand for diesel for power generation has been one of the major drivers (of the market). They do tend to step in and stockpile. We are not seeing any significant squeezes yet but this is a supply side story, if we carry on with this current trend we will have some problems in the light, sweet products.  I don’t believe supply can keep pace.“-Tony Hall, Duet Commodities Fund

Don’t forget that Japan has seen half its nuclear power plants shut down since the March 11 disasters.  Japan was almost totally dependent on nuclear power, now they are switching to other forms of generating electricity, and that includes diesel powered generators.

In South Korea demand for fuel, including diesel, has skyrocketed, and the government has approved the opening of 1,300 new fuel stations!  Ironically the South Korean government thinks by opening more fuel stations (thereby increasing demand) they can provide cheaper fuel: “Nonghyup and the KNOC [both government controlled companies] will jointly buy fuel from local refiners or from abroad, so they can be sold to the thrift gas stations. Prices will be kept down further by the gas stations operating on a self-service basis, where the driver fills his or her car.”-South Korean government statement

Another reason for an increase in diesel prices is that petroleum supplies are falling behind.

There is a problem with a refinery in Indeni, Zambia.  The refinery can not meet current standards of fuel refining, and needs U.S.$40 million to become compliant.

In Mexico, oil production has dropped.  In September oil production was 2.863 million barrels per day, the lowest levels since October 1995!

In fact around the world oil production dropped by 7% in September.  More specifically, diesel fuel production dropped by 12.7%!

In an earlier posting I explained how decreased gasoline production was the real reason for gas pump prices going up, now it’s diesel.

Like I said, bad news for diesel fuel users.

 

 

 

 

 

 

 

 

Business/Economics, International, U.S.

Occupy Wall Street, Class War: Latest study says Big Corporations do not pay their fare share of taxes

Not only are many of the biggest corporations reporting big profits, they’re paying small taxes.  The official tax rate for corporations is supposed to be 35%, but the latest study shows the average effective tax paid is about 18.5%.

Some corporations pay no taxes, and a handful actually have negative taxes!

280 companies in the Fortune 500, that were profitable for all three years between 2008 and 2010, were studied.

111 companies paid effective tax rates of less than 17.5% over the three-year period.  98 paid a rate between 17.5% and 30%.

The average rate is 18.5%.  But wait, there’s more.  Some companies paid zero taxes!  30 actually owed less than nothing over the three years!

Two of those corporations are Pepco Holdings and General Electric.  Over the 2008 to 2010 period Pepco made $882 million in profits, but had a tax rate of -57.6% (yes, put a negative sign in front of that)!   But here’s a bigger shocker: GE earned $10.5 billion, with a tax rate of –45.3%!   How do you make big corporate profits, and then effectively have the government owe you money?

Lobbyists hired by Corporate America convince your elected lawmakers to create more corporate tax breaks.

The study was done by Citizens for Tax Justice, and the Institute on Taxation and Economic Policy.

Business/Economics, International, U.S.

60% of Chinese millionaires want to leave China

A recent survey of Chinese millionaires found that 60% want to leave China.  14% have already left, or are in the bureaucratic process of leaving.

And where do Chinese millionaires want to go?  40% said they plan on moving to the United States.  Canada and Singapore are also top choices.

According to U.S. Citizenship and Immigration Services (USCIS), the number of Chinese applicants for ‘investment immigration’ has exceeded applications from any other country!

Investment immigration basically means you’re being allowed to immigrate into the U.S. because you’re investing your wealth into the U.S. (minimum $500,000 required).

What’s the main reason Chinese millionaires want to move to the United States?  They want better education for their children.  Hah, I hope they’re not disappointed, like so many U.S. parents.

The survey was conducted by Hurun Report and the Bank of China.

 

 

 

Business/Economics, International, U.S.

Corporate Incompetence: WalMart refuses to pay rent in China, since 2002, gets shut down for selling bad meat. Think your U.S. WalMart stores are bad?

WalMart is in trouble in China, because it hasn’t paid rent since 2002, and it lies about what it sells.

According to Chinese media, in 2002 WalMart signed a 15 year lease contract with the Wanguo Shopping Plaza in the northeastern coastal city of Dalian.  Problems occurred with the timely development of the property, and WalMart decided to move across the street.  The problem is that they signed a 15 year contract.

Wanguo Shopping Plaza has sued WalMart for back due rent.  Chinese courts have ruled that the lease contract is still binding.

WalMart had claimed that Wanguo Shopping Plaza lost its business license, and that the contract was terminated in 2007.  WalMart also claimed they paid about two years worth of rent.  The courts found that Wanguo Shopping Plaza never lost its license, there is no evidence the contract was terminated, and that WalMart paid a little more than one year of rent.

This is just the latest in bad things happening to WalMart in China.  In October, 13 Wal-Mart stores were shut down for 15 days for selling incorrectly labelled pork products.  WalMart had previously been penalized 21 times since 2006 for false advertising and selling expired food!

Business/Economics, International, U.S.

What Economic Recovery? Federal Reserve Bank revises growth forcast downward, blames Europe

No surprise, the U.S. Federal Reserve Bank revised its economic growth forecast downward.

Back in June the bank predicted U.S. growth at 2.9% (which is still bad, it needs to be above 3% to be good).  Now they revised it downward by one percent, to 1.9%.  Can you say stagnation?

Federal Reserve Chairman Ben Bernanke said the expanding crisis in Europe has made the future of the U.S. economy increasingly unclear.

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

What Economic Recovery? Sony blames $2 billion loss on the United States & Europe, no more Sony TVs for you

On November 3, Sony announced that its television division is likely to post a record loss of about U.S.$2.2 billion for 2011.  That makes eight straight years of losses!

Sony is blaming poor sales in the United States and Europe.  This is more proof that the U.S. is no longer the market place for the World’s manufacturers.

Sony Executive Deputy President Kazuo Hirai says there is no sign of any economic recovery, and the company will revise downward its mid-term sales target by half.  Sony will also cut way back on TVs sold in Europe and the U.S.

Panasonic and Sharp say they will do the same.