Tag Archives: war

What Economic Recovery? Dow Chemical to close 20 factories, despite making profits! Warns economy is getting worse!

“Economic growth in 2012 has slowed to a trickle, and that has spooked a lot of people.”-Jake Dollarhide, Longbow Asset Management

“Our low cost feedstock [natural gas] advantage enabled us to deliver volume growth, despite weakening demand. These difficult conditions [bad economy] may have extended staying power, as the new reality is that we are operating in a slow growth and volatile world.”-Andrew Liveris, Dow Chemical CEO

On 24 October 2012, Liveris explained the 2,400 job cuts (inadvertently announced the day before) as being necessary because Dow officials see the world economy getting worse.

Some analysts were surprised by the elimination of jobs and 20 factories: “Dow had very strong volumes in an uncertain macroeconomic environment. When I heard the announcement they were cutting jobs, I thought they had a really bad quarter, but it seems that business is A-OK.”-Hassan Ahmed, Alembic Global Advisors

Stock market investors are overjoyed at the announcement of the elimination of jobs (as they always are), and Dow Chemical stock values shot up 5 to 6% the morning after the job cuts were announced.

Dow reported net revenue for this past quarter at $582 million USD.  But that’s down from the same quarter last year, when they reported $900 million. (note: various U.S. media sources are reporting slightly different revenue numbers) Dow officials say their sales are down across the board.  The only area they see possible increase in sales is in their plastics made from cheap natural gas.

Their natural gas supplies come from the U.S. Gulf of Mexico operations, and Saudi Arabia.  Dow has no plans for cutting workers from those operations. About 1,500 of the job losses will come from Dow’s paint and solar cell factories.

20 factories in Japan, Belgium, Netherlands, United Kingdom, Spain and the United States will be closed.  Bloomberg reports that Dow did not want to make the layoffs public, but mistakenly emailed the announcement to some media outlets!

Despite stock investors buying up Dow stock, the chemical company said it will also cut $500 million from their own investing and capital spending.   That’s the exact opposite of what U.S. President Barack Obama has been saying is needed to revive the economy.  Obama has been stressing that unAmerican Corporate America needs to increase spending on investments and capital.

 

World War 3: Israel launches surprise airstrike….against Sudan! Fox News & NPR lies!

24 October 2012, oil rich Sudan says four Israeli warplanes bombed a factory in their capitol city of Khartoum.

So far no comment from Israel.

The attack took place late Tuesday night setting the factory on fire, the fire is just now under control.  The Yarmouk Military Industrial Complex makes ammo and weapons for the Sudanese military.

Fox News, National Public Radio (NPR) and The Associated Press all reported: “They did not say what caused the blast.”

However, the Israeli media itself reports that the Sudanese government says the factory explosions and fire were caused by four Israeli aircraft: “Four military planes attacked the Yarmouk plant.”-Ahmed Bilal Osman, Culture and Information Minister for Sudan

Australian media reports that Sudan will retaliate: “We think Israel did the bombing. We reserve the right to react at a place and time we choose.”-Ahmed Bilal Osman, Culture and Information Minister for Sudan

Why are the U.S. and British controlled media trying to downplay this?   (elections)

 

Some Economic Recovery? GM & HP make deal to end outsourcing! GM software deal and new tablet could save HP?

22 October 2012, General Motors (GM) and Hewlett Packard (HP) announced a deal that will see 3,000 HP employees go to work for GM.

GM officials claim it’s part of a plan to reduce outsourcing and increase in-house operations, at least when it comes to information technology.

Randy Mott, GM Chief Information Officer, stated that when it comes to IT work, it’s more efficient and cost effective if done in-house: “These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations…”

With IT workers they’re able to change projects rapidly, no need to re-tool  factories.

But don’t think this is actually 3,000 new jobs, as, according to Automotive News, most of the HP employees already do outsourced work for GM. According to InformationWeek, those HP workers are actually being hired away from HP, meaning they will become full fledged in-house GM employees (so this allows HP to layoff those employees, right into GM jobs).  Reports vary on how long this new deal will last, one report said it was multi-year.

A couple of weeks ago GM said they were going to hire 2,000 IT people in Michigan and Texas, but no clarification if this is part of the HP deal.  GM also said it would open new software centers.

Another part of the deal is that GM will buy software from HP for its IT operations.  HP officials called it “…the largest deployment of our full software portfolio in the world!”-George Kadifa, executive VP of HP Software

Add that to HP’s new Envy X2 hybrid tablet (which some reviewers are raving about) and maybe HP will be on its way back up, and even challenge Apple.

World War 3: U.S. occupation of Afghanistan; 19 – 21 October 2012. More children killed by U.S./NATO forces! Russian copter fired upon! Bagram airbase on fire! More proof that oil, for China, is too blame!

21 October 2012

In Uruzgan Province, an Australian Digger was killed: “The soldier was clearing the compound when an IED detonated, killing him instantly.”-David Hurley, Australian Defence Force

In in the northern provinces of Faryab and Sar-e-Pul, China’s National Petroleum Corporation (CNPC) began pumping out oil in the Amu Darya basin.  China has a 25 years contract for oil mining in Afghanistan, thanks in part to the U.S. led occupation of the Central Asian country.  CNPC expects to pump out 1,950 barrels per day.

The Afghan Foreign Ministry announced that no peace deal can be made with Mujahideen unless they are given immunity.  One problem is that many Mujahideen leaders are currently not allowed to take part in peace talks, under United Nations rules.

In Logar Province, local government officials say a U.S./NATO rocket attack killed four children, and wounded two as they walked to school.  Mujahideen report that it was mortar rounds from a U.S./NATO base, called Kizr, that landed on a house, killing all six children.

20 October 2012

French Foreign Minister, Laurent Fabius, revealed that French troops could be out of Afghanistan by the end of December 2012!

In Helmand Province, six local cops were killed by two of their co-workers!  Also, a bicycle bomb went off near the governor’s office, no details on casualties.

In Paktia Province, a Russian Mi-8 helicopter working for U.S./NATO/ISAF, was shot at.  No one was hurt, four bullet holes were found in the fuselage.

19 October 2012

In Khost Province, Afghan government forces turned on each other, killing three and wounding one.  Reports say Afghan border police, National Army and National Police shot at each other.  Government officials say it was caused by a “personal issue”.

In Parwan Province, reports that Bagram airbase was attacked by Mujahideen.  This time a food warehouse operated by a military contractor was hit with machine gun fire, and rocket propelled grenades.  The contractor says the warehouse caught fire and burned into Saturday.

In Balkh Province, 15 people were killed, 18 wounded, after the mini-bus they were in ran over a landmine.

In Herat Province, Mujahideen report that a U.S./NATO helicopter crashed at Shindand airbase.  They say the copter went down due to mechanical problems.

 

 

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

 

World War 3: U.S. occupation of Afghanistan; 16 – 18 October 2012. Hundreds of Afghan government troops dying for the United States every month! NATO officials make surprise visit. Women behind violence against women? Attacks launched against Pakistan! U.S. admits to targeting children!

18 October 2012

In Parwan Province, another U.S./NATO supply convoy was attacked.  Local police say Mujahideen managed to put a bomb on one of the fuelers, which exploded.  However, Mujahideen say they blew up the fueler with a remote controlled landmine. The driver was killed.

In Zabul Province, Mujahideen claim to have destroyed four vehicles in a U.S./NATO convoy, killing or wounding eight people.

International Security Assistance Force (ISAF) admitted that hundreds of Afghan government troops are sacrificing themselves for the United States!  The ISAF report stated that, so far for 2012,  Afghan National Army (ANA) troops are dying or being wounded at the rate of 243 per month!  ISAF reported that Afghan National Police (ANP) troops are dying or being wounded at the rate of 292 per month!  That’s more than 500 Afghan government personnel killed or wounded per month, fighting for empire of the United States!

ISAF also said: “An International Security Assistance Force service member died as a result of a non-battle related injury in eastern Afghanistan.”

Officials with the U.S. created North Atlantic Treaty Organization (NATO) made a surprise visit to Kabul: “My clear message is that the whole international community will stay committed to helping Afghanistan in the future…”-Anders Fogh Rasmussen, NATO Secretary General

Amnesty International claims a 20 years old woman was beheaded by her mother-in-law, for refusing to be a prostitute.  Most reports of violence against women focus on men, but in this case it was the woman’s mother-in-law that was forcing her to engage in prostitution, and when she refused the mother-in-law paid a man to kill her.

People in the region of North Waziristan, Pakistan, reported that four mortar rounds impacted in their area.  The mortar fire came from Afghanistan.

Yet another U.S. based private security company (Jorge Scientific) is in trouble after a video showed their employees behaving like total retards!  American Broadcasting Company revealed the video, which came from two former employees who quit because of rampant drug and alcohol abuse by co-workers.

In Nanagarhar Province, several cops joined the Mujahideen.  Mujahideen made their names public.

17 October 2012

Major battles in Paktia Province.  Mujahideen claim to have shot down two U.S./NATO helicopters.  Reports say this happened as the copters were about to land to pick up wounded ANA troops.  At least 53 people were wounded, including 45 Afghan government personnel, after a mini bus packed with explosive went off.  A 14 years old girl was killed.  The mini bus driver was trying to target a U.S./NATO base.

In Badghis Province, Mujahideen claim to have destroyed a U.S./NATO minesweeping tank. They say the two crewman were killed.

In Helmand Province, four U.S./NATO supply trucks were destroyed, and two drivers killed by Mujahideen.

In Uruzgan Province, a local cop joined the Mujahideen.

In Nangarhar Province, seven ANA personnel joined the Mujahideen.

16 October 2012

U.S./NATO officials admitted that a recent airstrike killed children, and not Mujahideen!  ISAF said: “During an operation in Helmand province Sunday against suspected insurgents laying IEDs, ISAF forces may have accidentally killed three innocent Afghan civilians.”

This comes as U.S./NATO forces called in an airstrike in Gahzni Province.  At least 17 people were killed.   Afghan government officials claim most of those killed were from Pakistan.

In Parwan Province, Mujahideen claim to have fired more artillery rockets at Bagram airbase.

In Nanagarhar Province, Mujahideen claim to have fired more artillery rockets at Jalalabad airbase.

In Zabul and Kandahar provinces, Mujahideen claim to have destroyed several U.S./NATO convoy vehicles, and captured an Sport Utility Vehicle (SUV) and a “hatchback” along with other military equipment.

 

 

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.

What Economic Recovery? Sony to force 2,000 employees into early retirement!

19 October 2012, four years later and still losing money, electronics giant Sony says it’s forced to push 2,000 Japanese employees into early retirement.

This means those employees will have much less retirement money coming to them, with reduced or no benefits.  That means people not able to spend as much money as they planned, pushing the consumer driven economy further down.

The new announcement could be part of the already planned layoffs of 10,000 employees worldwide.  Even so, Sony admits the job cuts will have limited impact on revenue.  That’s because of all the people who’s incomes have dropped, or ceased all together (no thanks to the too Big to Fail Corporations/Banks), who can no longer buy the latest high tech electronic devices!

Sony is also closing a Japanese factory that makes lenses for digital cameras.

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?

World War 3: U.S. occupation of Afghanistan; 13 – 15 October 2012. U.S./NATO bombs children, again! Iran deal making with Mujahideen? Mujahideen using sticky bombs.

15 October 2012

In Herat Province, a doctor, two nurses, and their driver were kidnapped.  They all worked for the International Red Crescent.  So far, no one knows why they were kidnapped, or by whom.

In Ghazni Province, a U.S./NATO supply convoy was attacked. Mujahideen claim they killed six security guards and destroyed three fuelers.

In Khost Province, a Afghan National Army soldier joined the Mujahideen.

In Wardak Province, a U.S./NATO supply convoy was attacked. Mujahideen claim they killed security guards and destroyed one tanker truck.

A former member of the Iranian Revolutionary Force, Fatima Khazarpoor, claims that Iranian government officials have been holding secret talks with Mujahideen.  The talks concern a variety of issues including what will happen post U.S./NATO pullout. She says Iranian officials have been meeting with Pakistani officials as well.  Khazarpoor now lives in Afghanistan and says she and her family have been threatened by Iranian agents.  Is this just another scam to justify keeping U.S./NATO troops in Afghanistan?

Australian Prime Minister, Julia Gillard, paid a visit to Afghanistan, over increased Green on Blue attacks: “I spoke to President Karzai about our concern about insider attacks and sought an assurance from him that everything that can be done is being done.”

14 October 2012

In Parwan Province, Mujahideen claim they attacked the convoy of Afghanistan’s Second Vice President, Karim Khalili.  Mujahideen say they killed eight security guards, wounded several more, but are not sure if they were successful in assassinating the Second Vice President.

Five of the seven Red Coat Royal Marines, arrested a few days ago, have been officially charged with murdering an Afghan man.

In Farah Province, reports that local police tortured a man to death, then hid his body in a pile of garbage.

In Helmand Province, a U.S./NATO airstrike killed three children and two adults collecting firewood. U.S./NATO claims the victims were Mujahideen planting mines.

In Bamiyan Province, a United Nations helicopter made an emergency landing. UN Assistance Mission to Afghanistan officials say it was due to mechanical problems.

In Kandahar Province, Mujahideen claim they repelled several airborne assaults  by U.S./NATO forces.

13 October 2012

In Herat Province, Mujahideen say they used a “sticky bomb” to blow up a police car. The bomb, similar to a Limpet Mine, was attached to the side of the vehicle.

ISAF said: “One coalition forces service member and one coalition forces civilian died following an improvised explosive device attack in southern Afghanistan.”   Independent reports say the deaths were the result of multiple bomb attacks in Kandahar Province.  Besides the ISAF personnel killed there were four Afghan intelligence agents killed, and three wounded as well.

Also in Kandahar Province, two local police joined the Mujahideen in Panjwaee.

In Zabul Province, co-ordinated explosions killed two people and wounded three.  Also, Mujahideen claim a U.S./NATO helicopter crashed and caught fire.  Mujahideen say the helicopter was having mechanical problems and that they did not shoot it down.

In Baghlan Province, Mujahideen claim to have set two U.S./NATO supply trucks on fire.