Tag Archives: unemployment

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.

Business/Economics, International, Technology

What Economic Recovery? Sharp projects record loss for 2012!

01 November 2012, yet another Japanese electronics maker announced they are losing money big time, and for the second year in a row.  Sharp predicts it will lose at least $5.6 billion USD by March 2013 (the end of the Japanese fiscal year)!

From April to September 2012 Sharp lost nearly $5 billion, 80% more than they originally predicted!  As other Japanese electronics makers, they blame crashing TV sales.

Sharp officials say they will now layoff 10,000 employees and sell assets.  They’ve also taken on a $4.6 billion bailout loan.

 

Business/Economics, U.S.

What Economic Recovery? Businesses closed because of hurricane Sandy, will not get insurance coverage!

31 October 2012, just because a business has interruption insurance doesn’t mean they’ll get paid: “There has to be direct physical damage to the building in order for business interruption insurance to come into play.”-Loretta Worters, Insurance Information Institute

Thousands of small businesses were forced to close shop because of hurricane Sandy, but they did not suffer physical damage. This means not only are they losing money from lack of sales, but the money they paid for interruption insurance was wasted.

Also, businesses closed due to power outages or mandatory evacuation orders are not covered under interruption insurance: “I figured there’s probably an out for the insurance company, but I was hoping we’d be paid since the city had ordered everything to shut down, including the subways.”-Robert Wyatt, Lightspeed Express, found out his insurance won’t payout

And don’t forget, for most businesses there’s no such thing as flood insurance, unless it’s through the federal National Flood Insurance Program.

What this means is that many northeastern businesses will not be able to recovery financially!

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

World War 3 & What Economic Recovery? Japan to suspend elections to avoid fiscal cliff? Part of IMF’s fiscal consolidation order? Growing regional disputes with China?

“We shouldn’t create at will a political vacuum that would cause policies to stall.”-Yoshihiko Noda, Prime Minister of Japan, 29 October 2012

The “political vacuum” the Prime Minister is talking about concerns his loss of political power: “Noda wants to delay the day of reckoning as long as possible. Who would call an election now knowing that over 100 parliament seats would be lost, putting the party on the brink of collapse?”-Harumi Arima, political analyst

Noda is using the now catastrophic Japanese economy as an excuse not to dissolve the Lower House of Parliament: “If the situation is left as it is, administrative services could stall, which would seriously affect people’s livelihoods and thwart efforts to revive the economy.”-Yoshihiko Noda, Prime Minister of Japan, 29 October 2012

Dissolving the Lower House is a necessary step in Japan, before elections can be held.

The above statements were made two days ago. Today, 31 October 2012, Noda confronted critics, saying he will decide when the time is right for elections, and the time will be right only when the economic situation is properly addressed: “I will make a decision on the dissolution after doing some necessary tasks and preparing responses to the economic situation.”-Yoshihiko Noda, Prime Minister of Japan, 31 October 2012

Just how bad is the economy in Japan?  For one, the Japanese government has more debt than the Greek government.

For two, Japanese companies are experiencing huge drops in sales, so much so that tens of thousands of Japanese have lost their jobs in the past year alone.

For three: “The situation is worse than we had expected earlier, and we have a severe outlook for the second half. Digital consumer businesses such as TV, cameras, Blu-ray disc players and PCs worsened faster than we had expected three months ago.”-Hideaki Kawai, CFO Panasonic

For four: “We don’t see when bad news will stop coming out.”-Kazuyuki Terao, Allianz Global Investors Japan Co.

Prime Minister Noda stated today, that before elections could be held he wanted policies passed that would issue debt covering bonds, drastically change the retirement program for Japanese, and other additional economic austerity measures by the end of November.  These are inline with what the International Monetary Fund ordered just days ago.

Noda also admitted that he wanted the right environment to correct the disparity in Lower House, meaning he wanted to make sure his political party got most of the seats!

Delaying elections is also about maintaining regional power, with the backing of the United States.

Two days ago Noda mentioned growing disputes between China, Russia and Korea, South: “Achieving relationships of trust with surrounding countries such as China, South Korea and Russia, with a comprehensive view, strengthens the foundations on which Japan and the whole region enjoy peace and prosperity. It is one of the grave responsibilities a country has to fulfill.”

Business/Economics, International, Technology

What Economic Recovery? Panasonic predicts more massive losses! Suspends dividend payments for first time! Chairman cuts his own pay by 40%!

31 October 2012, one of Japan’s electronics giants, Panasonic, announced massive losses by the end of their fiscal year.

Panasonic officials say they expect to have suffered a net loss of more than $9 billion USD by March 2013!   They already lost $8.6 billion from April to September 2012!

For the first time in 62 years it is suspending dividend payments to stockholders!  Company officials say they are now forced to “restructure unprofitable operations”.  That’s industry code for shut factories down and lay people off (they already laid off 39,000 people in 2011!).  But unlike greedy unAmerican Corporate America leaders, the boss of Panasonic said he was cutting his own pay by 40%!

Just like other Japanese electronics makers, Panasonic blames the huge losses on crashing TV and camera sales.  Panasonic lost $9.7 billion in 2011!

 

International, U.S.

World War 3: U.S. occupation of Afghanistan; 26 – 29 October 2012. Mujahideen continue steady attacks across the country! ISAF says they will not protect Afghan borders! Bin Laden & Taliban supporters to mediate peace talks! U.S. agents detain Pakistani official in Canada!

29 October 2012

In Wardak Province, Mujahideen ambushed U.S. and Afghan National Army troops.  The U.S. and ANA personnel were conducting assessments of local police checkpoints.  They were attacked with assault rifles and RPGs.  U.S. officials claim they killed three Mujahideen.

In Helmand Province, at least two ANA soldiers were killed (some reports say four) when the vehicle they were in ran over a landmine.

Despite the fact that U.S. officials continue to claim we are there to provide security to Afghanistan, ISAF officials said they are not there to protect Afghanistan’s borders: “In the first Bonn conference in December 2001 there was a proposal of the Afghan delegation to include the protection of the border of Afghanistan in one of the annexes. Actually this annex was part of the Bonn proposal however, this annex never made it into our mandate that we received from the United Nations.”-Brigadier General Günter Katz, International Security Assistance Force

The Afghan High Peace Council revealed that Saudi Arabia will mediate peace talks between Mujahideen and the Afghan government.  It must be remembered that it was Saudi Arabia that supported Osama bin Laden and, along with Pakistan, eventually supported the creation of the Taliban (“Students”) political party.  Saudi Arabia also officially recognized the Taliban government.  Analysts say this time the Saudi’s are concerned about blowback: “Saudi Arabia is in a situation to support the Afghan peace talks not only because of the moral stance of Saudi in this regard but also they should consider the post 2014 situation in Afghanistan which will threaten the national security of Saudi Arabia if necessary steps have not been taken to eliminate insurgency in South Asia.”-Nasrullah Stanekzai

Saudi Arabia is also spending $100 million USD to build a huge Mosque/madrasa in Afghanistan.  They claim it will house 5,000 university aged students.

In Ghazni Province, five people were killed and four detained by U.S./ANA forces.  Officials claim they were all Mujahideen, but locals say at least one civilian man and one civilian woman were killed.  Officials say the U.S./ANA operation started Sunday night and continued until Monday morning.

Afghan elected official, Ramazan Bashar Doost, said that while the U.S. is offering a $25 million reward for the arrest of Mullah Omar, the U.S. has been in contact with Mulla Omar the whole time!   Doost also says the U.S. is actually funding not only Pakistan’s ISI, but Afghan Mujahideen groups as well.

28 October 2012

In Canada, Pakistani elected official, Imran Khan, was detained by U.S. agents: “I was taken off from plane and interrogated by U.S. Immigration in Canada on my views on drones. My stance is known. Drone attacks must stop!”-Imran Khan

Imran Khan is also the Pakistani official who said war in Afghanistan was justified Jihad.  Khan was on his way to New York anyway, so why couldn’t the U.S. wait until he arrived there?

Afghan intelligence, aka National Directorate of Security (NDS), told Pakistani officials that the man they claim is behind the shooting of a teenaged Pakistani girl is not in Afghanistan.

27 October 2012

In Ghor Province, local government officials say 13 people were kidnapped.  However, police say they do not know who did the kidnapping, and they don’t know the identities of those kidnapped!

The British Red Coat Ministry of Defence said the deaths of one Royal Marine and one Royal Army medic was not the result of fratricide (Blue on Blue).  However, the two Red Coats died (as well as a Afghan National Policeman performing Muslim prayers) after two British patrols fired on each other.  The MoD stated: “…the deaths of Corporal O’Connor and Corporal Day were caused by a third party or parties whose identities have yet to be established but who are not U.K. personnel.”

An investigative reporter says Green on Blue attacks are not caused by insurgents, but by the way U.S./NATO personnel treat Afghans: “These attacks are motivated by grudges, by people who are unhappy with the people they are coming in contact with in the U.S. and NATO military forces, but also by the broader context of what they hear and see these forces are doing in Afghanistan specifically for example breaking into people’s homes and taking away the males in these homes and detaining them.”-Gareth Porter

26 October 2012

In Ghazni Province, the bodies of six people were found on the Kabul-Kandahar highway. They had been shot. Police believe the victims were traveling to see relatives for the Eid holiday.

The Wall Street Journal said Afghan sources claim Iran has infiltrated Afghanistan through charity organizations.  Sources claim Iran can now muster up to 20,000 Afghans at one time for militant activities, making Iran a greater threat than Pakistan.

In Farah Province, an NDS agent was attacked by Mujahideen. Several people were wounded and the a gunman was arrested. No info on what happened to the  NDS agent.

ISAF said:  “An International Security Assistance Force service member died following an insurgent attack in western Afghanistan today.”

In Faryab Province, a suicide bombing killed at least 40 people, and wounded 50.  It appears the Provincial governor and local police chief were the targets. It happened at a Mosque.  President Hamid Karzai said the attacks made against Muslims while they are praying in Mosques are not being made by Muslims, suggesting the attacks are really being instigated by non-Muslims (like non-Muslims from the United States or Europe).

Recently the grand Mufti of Saudi Arabia declared that suicide attacks by Muslims against Muslims was unforgivable.

 

 

Business/Economics, International, U.S.

What Economic Recovery? Germany says economy worse than they thought! Greece tells IMF they can not make anymore compromises! IMF pushes for U.S. consolidation, code for even more drastic deleveraging! Oil prices to crash!

“We are talking about the things that still need to be solved and here it became clear that the global economy’s risks are very evident, as is clearly stated in the communiqué. The economic growth outlooks are not as good as we would hope.”-Angela Merkel, Chancellor of Germany

The German leader made the statement on 30 October 2012, after reading a report from the Organization for Economic Co-operation and Development, World Trade Organization, International Labour Organization, International Monetary Fund and the World Bank.

The IMF boss, Christine Lagarde, admitted that economic growth will be pathetic: “I would characterize the situation as that of a laborious recovery out of the financial crisis through some degree of stabilization by way of tepid growth.” 

The IMF also pushed developed economies to further consolidate their fiscal policies. This is another way of saying government deleveraging (typically in the form of austerity) should be increased.

(deleveraging began for individuals and small businesses with the 2008 Credit Crisis/Crunch. It’s one of the causes behind all the Sears & Kmart store closings in the U.S.)

The IMF is specifically targeting the United States, saying the U.S. needs a credible fiscal consolidation plan, implemented “at an appropriate pace” in order to stabilize a “fragile” world economy.

Just two days ago, the IMF, along with European lenders, told Greece that they could not provide anymore financing unless more drastic changes were made, such as drastic changes in Greece’s labor/wage laws.  The Greek coalition government is showing signs that it would rather default than make anymore compromises.

The paradox is that while world economic organizations want increased deleveraging of individuals, small businesses and governments, they also want employment to somehow increase and people to somehow spend more money buying stuff they don’t need (domestic consumption)!

And it’s not just developed countries being told to axe their government spending, even oil rich Arab countries are being told to do the same: “A rapid deterioration in the global economy could bring about developments similar to what the region experienced in 2009, including a sharp fall in oil prices and disruptions to capital flows.”-IMF

The IMF explained that as the world economy worsens, demand for oil is going to drop to such lows that the the six Gulf Cooperation Council economies of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman and Bahrain could experience an economic crash.

The IMF projects that the price of oil could drop by $30 USD per barrel in 2013, and continue dropping!  This might sound like good news, but it’s because people won’t have the money to buy it at any price!

 

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).

U.S.

FEMA boss confirms possibility of canceled Presidential elections! Republican governor of New Jersey is fine with it! Congress made plans back in 2004!

“We are anticipating that, based on the storm, there could be impacts that would linger into next week and have impacts on the federal election.”-Craig Fugate, Federal Emergency Management Agency, 30 October 2012 press conference

“I don’t give a damn about Election Day! It doesn’t matter a lick to me. At the moment I’ve got much bigger fish to fry.”-Chris Christie, governor of New Jersey, 30 October 2012 press conference

I posted about FEMA suggesting, yesterday, to delay or cancel the elections.  Today, FEMA director Craig Fugate confirmed such a possibility during a press conference.

Also, Republican governor of New Jersey, Chris Christie, bluntly stated that his hands were full dealing with the disaster, and implied that if FEMA wanted elections delayed or canceled then so be it.  He also heaped praise upon President Obama.

Here’s what Congress had to say, back in 2004, about such a situation: “It would appear that under Congress’ express constitutional authority over the timing of federal elections it could enact a federal law setting conditions, times and dates for rescheduling of elections to federal offices in the States in emergency or other exigent circumstances, and with the proper standards and guidelines could delegate the execution and application of those provisions to executive branch or State officials.”-CSR Report for Congress: Postponement and Rescheduling of Elections to Federal Office

Business/Economics, International, U.S.

What Economic Recovery? Too Big to Fail bank revises planned layoffs, upward by the thousands!

30 October 2012, Swiss banking giant, UBS, announced a major change in its plans to cut employees; they now want to layoff 10,000 workers worldwide!

Last year UBS announced they would layoff 3,000 employees, but because the too big to fail bank has been losing money from its investment operations, they’ve now upped it to 10,000.

UBS employees in Stamford, in the U.S. state of Connecticut, will make up the majority of those laid off.

Of course (and more proof that unAmerican Corporate America/Europe is behind the economic disaster) stock investors loved the announcement, and drove up UBS stock prices in European stock markets with frenzied buying (I’m sure the same thing would be happening on Wall Street if it wasn’t for the hurricane).