Tag Archives: economy

Business/Economics, International, U.S.

What Economic Recovery? President of Argentina dumps U.S. dollars. Pesos more profitable, or just another sign of Hyper Inflation?

“I’ve just had one fixed term account in dollars for some time, and I’ve decided to put it in pesos, it’s more profitable to have it in [Argentine] pesos.”-Cristina Fernandez, President of Argentina

7 June 2012, la Presidenta also urged “…any officials who’ve got a few little dollars to do the same thing.”

Argentina is the number three economy in South America.  However, having a booming economy has resulted in an inflation rate around 9 to 10%!  The result is that many people, and banks, in Argentina are buying up U.S. dollars to try and hedge against hyperinflation.

Argentines have been there done that many times before.  Many people bought U.S. dollars to survive Argentina’s notorious hyperinflation in the past, but this time the U.S. economy is in the toilet, so buying up those gringo dollars might be a bad move.

 

 

Business/Economics, U.S.

Government Incompetence: Vacuum cleaner causes fire that results in $400 million repair bill for U.S. taxpayers!

It turns out that a “massive” fire on a U.S. Navy nuclear submarine, on May 24,  was caused by a vacuum cleaner!  It burned for several hours and sent several personnel to the hospital. The sub was docked at the Portsmouth Naval Shipyard, in the U.S. state of Maine.

Now comes the news that the fire was caused by a vacuum cleaner “…stored in an unoccupied space…”, and that the “…initial rough repair cost…” will be $400 million plus 10%!!!

And guess who pays for the U.S. Navy’s mistakes?  The U.S. taxpayer!

At least the Russian’s claimed their recent submarine fire was an act of sabotage by U.S. agents.

Business/Economics, U.S.

What Economic Recovery? Best Buy founder jumps ship, hopes his leaving will help company recover!

“There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers.”-Richard Schulze, founder of Best Buy

7 June 2012, founder and boss of Best Buy for 36 years, Richard Schulze, has resigned.

Best Buy has been struggling with falling sales, and accusations of inappropriate behavior by members of the board.

A former CEO of Best Buy is accused of “…violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment…”-Best Buy statement

Best Buy suffered a 26% drop in net income for the 1st quarter of 2012!

Business/Economics, International, U.S.

World War 3: U.S. ally, United Kingdom, slams U.S. focus on Asia Pacific as new area of global conflict. Bad economy to blame!

On 4 June 2012, an official representative of the Queen Elizabeth II’s Royal Military, criticized the plans of the United States, to send 60% of U.S. naval forces to the Asia Pacific region by 2020.

Armed Forces Minister, Nick Harvey, stated that the Royal Navy, let alone other European navies, will not be ready to pick up the slack in the Atlantic, by 2020.

The United Kingdom has been slashing and burning its military budget.  The Ministry of Defence revealed that in the past three years $26.2 billion USD of military equipment has been scrapped!

Harvey said it will take time to rebuild their navy in order to fill the void when the U.S. sails most of its fleet to Asia:  “When we’re back in the carrier strike game we could pull more weight, [but] if Europe is to take more responsibility, we’ve got some way to go.”

Business/Economics, U.S.

What Economic Recovery? British government cuts services, then charges British taxpayers for Queens Jubilee! Royal parasite family just lost the British economy $1.8 billion+!

5 June 2012, the government of United Kingdom has been slashing and burning social programs, yet charges the taxpayers for the Queen’s Jubilee!

While the people of Britain have been told that austerity measures are necessary, they were forced to pay at least $1.5 million USD so that the Queen could celebrate 60 years of rule!  The $1.5 million is the estimated amount coming from the Sovereign Grant Fund, as reported by The Guardian.

The Sovereign Grant Fund is what the British subjects (taxpayers) pay to the Royal parasite family. You could call the Royal parasite family the wealthiest welfare recipients in the world!

Queen Elizabeth II is not a figure head, and any public ceremony held for the Royal parasite family is paid for by taxpayers!

Private donations also pay for the Royal parasite family’s public parties.  According to estimates reported in The Guardian, donations paid for $16.2 million USD of the jubilee expenses.

Local governments forked over an average of  $700,000 USD to support the jubilee.

Then there’s the “extra costs” caused by the fact that most businesses were closed for the jubilee.  One estimation says the extra “bank holiday” could end up costing the British economy $1.8 billion USD!

Back in March, the Bank of England warned of economic doom because of continued support for the Royal elites.  So much for the Royal parasite family being of any benefit to the people of Britain!

 

Business/Economics, International, U.S.

What Economic Recovery? Emergency meeting Group of 7! “Impossible” to save Spain! Major credit freeze coming, just as Toyota warned!

“It is really hard in Spain to get a job right now because there are no jobs, and if somewhere you might have a chance, they do not want to pay what is more or less normal. Plus, everything is so expensive: supermarkets, food… Everything is really difficult now.”-Ada Adon, unemployed in Madrid, Spain

 

It has been revealed that the seven top industrialized countries (Group of 7, aka G7) had been in an emergency phone conference since late last night Japan time, early morning U.S. time!

Finance and banking officials from Japan, United States, Canada, Britain, France, Germany and Italy were discussing the global economic situation, a sign that things are getting worse!  The focus is on the European Union (EU).

No joint statement was issued, but Japan’s Finance Minister, Jun Azumi, said all efforts at the moment will focus on preventing a total collapse of the EU.

A German analysts said many investors are on the verge of giving up: “History is repeating itself, we are again in full crisis mode. Last year: crisis; this year: crisis.  The politicians have learned nothing. It would be so easy though. The ECB [European Central Bank] should massively intervene and buy time for countries like Italy and Spain so that they can pursue reforms. Nobody can bear this cacophony, this waiting, this riding out any more.”-Robert Halver, Baader Bank

This comes before the G20 meeting, and it comes on the same day Spanish officials announced a possible second credit crisis.

Spanish Treasury Minister, Cristobal Montoro, admitted on Spanish radio that it was “technically impossible” to save Spain’s economy!

It turn’s out that the recently created EU European Stability Mechanism (a bailout fund) doesn’t have enough money to bailout Spain, let alone other EU members!

Montoro blames high interests rates for crashing the Spanish economy, as well as other EU economies. He says the result will be another huge credit crunch.  On 31 May 2012, Toyota of Japan signaled such an international credit crisis by announcing it was selling $2.5 billion USD in bonds, to raise cash in order to ride out a second coming credit crisis (of course the U.S./British media misreported it).

 

 

 

 

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

What Economic Recovery? Idaho’s Hoku Materials about to be finished off by lawsuits from unpaid contractors! Lays off 100 more employees in Bannock County!

“The proceeds of the loan are insufficient to pay down current liabilities, resume construction or start commercial operations. The loan proceeds will be used to fund working capital requirements while we plan for a restructuring of our liabilities, and the liabilities of our subsidiary Hoku Materials Inc.”– Scott Paul, CEO of Hoku Corporation

At the end of May, 2012, the CEO of Hoku Corporation basically said that Hoku Materials, in Pocatello, Idaho, has ceased operations, even before it began operations!

I speculated that the 17 May decision to jack up U.S. tariffs on Chinese made solar products would be the final nail in the coffin for Hoku Materials, and it looks like I was right.

This is because Hoku turned to Chinese companies to bail them out of their financial woes.  They became a subsidiary of Tianwei New Energy Holdings, which is an affiliate of China South Industries Group Corporation (CSGC).  All their contracts are with Chinese solar product companies hoping to increase their business in the United States.

On top of that, JH Kelly, primary contractor working on the Hoku Materials project, is finally fed up with not being paid and has sued Hoku.

At the beginning of 2012 Hoku Materials laid off 20 employees (according to an Idaho State Journal report, that left around 150 employees).

In April, remaining construction work was stopped all together (due to the lawsuits).

At the end of May 2012, a local Pocatello TV station started getting phone calls from unnamed sources within the Hoku Materials factory.  The callers were reporting massive layoffs.

Hoku Materials admitted to the local TV station that they laid off another 100 employees, because of massive debts, the increased U.S. tariffs on Chinese solar products, and civil suits by JH Kelly and other contractors!  Hoku is now going through “restructuring”, which usually includes selling off assets to pay debts.

I’ve been warning since 2010 of the impending doom of Hoku Materials.  The sad thing is that officials with the city of Pocatello, as well as Bannock County officials, bent over backwards to get Hoku to build their polysilicon plant in Pocatello (that included essentially giving the land to Hoku, by allowing a tax credit equal to the value of the land). This is because truly good paying jobs have become hard to find locally (no thanks to previous city and county leaders chasing off major employers for personal/religious reasons, such as refusing to allow Union Pacific to make Pocatello their Pacific Northwest Depot!).

Now there’s an unfinished polysilicon factory, taking up space equal to 50 football fields!  To top that, the factory butts up to a residential area, a once dead end residential street is now the entry road to the defunct factory!

NEW Obama imposed U.S. TARIFFS ON CHINESE SOLAR PANELS COULD BE THE FINAL NAIL IN THE COFFIN FOR IDAHO’S HOKU MATERIALS

Business/Economics, International, U.S.

What Economic Recovery? Sears to sell off Canadian operations!

31 May 2012, Sears Holdings announced that it will sell off a portion of its Sears Canada operations.  Currently Sears Holdings controls 95% of Sears Canada.

Sears Holdings said it “…will retain approximately 51% of the issued and outstanding common shares of Sears Canada.”  So they are willing to let go of 49% control of Sears Canada in order to raise cash, however, Sears Holdings states they reserve “…the right not to complete the spin-off …”.

Business/Economics, International, U.S.

Venezuela imposes gun ban, mark of true government repression! California is proof anti-gun laws don’t work: California cops caught selling illegal guns! Justification for the 2nd Amendment!

2 June 2012, the Venezuelan government imposed a total ban on gun sales: “We are going to make serious efforts as President Chavez has done for the security of our citizens. We’re going to continue to fight against criminals and more importantly against what causes violence.”-Elias Jaua, Vice President of Venezuela

Anti-gun laws don’t work!  A 1 June 2012 report out of the U.S. anti-gun state of California proves it!

The U.S. Attorney General’s office revealed that their investigation showed that California cops are selling guns to the public. Those guns are illegal for California’s civilian population under California law!

So law enforcers are behind illegal gun sales in anti-gun California!  California cops are using their legal rights to buy guns, which are legal for cops but illegal for civilians, and then turning around and selling the guns to the public at as much as a triple profit!

After a shootout in San Francisco in February 2011, investigators discovered that the fugitive had 20 guns, 12 of which were illegal under California law. To their surprise they traced two machine pistols back to a Sacramento County sheriff’s deputy!

Further investigations revealed that some California cops were regularly selling illegal weapons, including .50 caliber (12.7 mm) guns!  The .50 caliber bullet will take your head off, and punch through armored cars, no problemo.

The Sacramento District Attorney revealed that California cops are also altering the already illegal guns, making them more lethal!

Here’s the amazing thing, the California government has not arrested these cops, they’ve simply been charged with a crime.  Some have been fired from their jobs, others have been placed on paid leave.

This is proof that anti-gun laws don’t do what they’re supposedly intended to do, that is reduce gun violence.  By the way, back to Venezuela, note that the vice presidente inferred that the violence in his country was because of guns. Hello, people cause violence, not guns!  This is also justification for the U.S. Constitution’s 2nd Amendment which demands that people of the United States be able to equip themselves with the weapons of the day (“arms”) in order to protect themselves, even to protect themselves from their own cops!!!

“A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.”-2nd Amendment, ratified December 1791

“I, (NAME), do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the orders of the officers appointed over me, according to regulations and the Uniform Code of Military Justice. So help me God.”-Oath of Enlistment U.S. military

“I, (NAME), do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the State of (STATE NAME) against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the Governor of (STATE NAME) and the orders of the officers appointed over me, according to law and regulations. So help me God.”-Oath of Enlistment state National Guard

Note: In respect to the U.S. Constitution’s 1st Amendment, you are not required to say “So help me God.”

Business/Economics, International

What Economic Recovery? 1% Elitist Queen of England’s Crown Estate sees 9,200% increase in revenues! Why aren’t the British commoners benefiting?

2 June 2012, United Kingdom’s Queen Elizabeth II’s rental property & business management empire, Crown Estate, reported a 9,200% increase in revenue over the past 60 years!

Keep in mind that according to an Act of Parliament, all profits from the Royal property/business management scheme are to go to the British Treasury!  According to the Financial Times: “Under an agreement struck between King George III and the government in 1760, the portfolio was managed by the Crown on behalf of the state, with surplus revenue going to the Treasury. In turn, the Treasury made a fixed annual payment to the monarch.” 

Also: “The Queen has no powers to liquidate assets belonging to the Crown Estate. She cannot buy or sell properties and is entitled to a modest slice of the company’s revenues.”

So how much money is the Crown Estate making?  Here’s what the Crown Estate’s own website claims:  “…the urban estate the value of the portfolio increased by 11.6 per cent to £5.2 billion [$7.9 billion USD].”

“…marine estate revenue increased by 1.7 per cent to £47.4 million [$72.8 million USD]. Total property value rose to £586.9 million [$902.2 million USD]…”

“…income from renewables….rose….to £3.5 million [$5.3 million USD]…”

“The coastal estate…added £14.3 million [$21.9 million USD] in revenue…”

“…capital value of the rural estate exceeded £1 billion [$1.5 billion USD] for the first time…”

“…asset management saw revenue rise….to £25.7 million [$39.5 million USD]…”

The question is, if the Crown Estate is making so much money, and it’s supposedly meant to benefit the commoners of the United Kingdom (through the state) then why is the government of the United Kingdom imposing such drastic austerity measures upon those very commoners?

Just how much is the “fixed annual payment to the monarch”?  Under a new Sovereign Grant Act, beginning in 2012 the Queen can receive only 15% of the revenues.  How much was she getting before that?

But wait, there’s more!  Members of the royal family own other property companies, not beholden to the British government.  Here’s one; the Grosvenor Estate.

“The Grosvenor Estate is a portfolio of businesses, rural estates and other assets owned by trusts on behalf of Gerald Cavendish Grosvenor who is the 6th Duke of Westminster, and his family.”-Grosvenor website

However, unlike the incompetent British government (by the way the Queen is the literal boss of the House of Lords in the British government, she is not a figure head!), Grosvenor Estate is actually spending money to try and build up the economy in the English city of Liverpool.  The Duke’s Grosvenor Estate is spending the equivalent of $1.5 billion USD on a project called Liverpool One.

Again, the question is, what happened to all the money from the Queen’s Crown Estate that was supposed to be used for the people of Britain?