Tag Archives: europe

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, International, U.S.

What Economic Recovery? U.S. job creation crashing! European unemployment holding at record high! Production falling in China! Japan going down! Government bonds at record lows! Dow Jones erases all gains of 2012!

1 June 2012, bad news for everyone, that is bad news for everyone playing the western (U.S./British dominated) game of capitalism (including the “communist” Chinese)!

Employment numbers did not live up to the expectations of experts in the United States. The U.S. Department of Labor reported that only 69,000 net jobs were created in May.  Employment experts in the private sector expected at least 150,000 new jobs.

To top that, the Labor Department revised the April and March employment numbers…down!  For the two months before May, the number of net jobs created was revised downward by 49,000!

In the past labor officials said that in order to have an economic recovery unAmerican Corporate America must create 200,000 net new jobs every month.  That hasn’t happened, and now it’s worse!  The latest estimates are that 362,000 net new jobs must be created every month, for three years straight!  That would bring down the unemployment rate to 6%.

Here’s some factual numbers: At least 12.7 million people in the U.S. are “officially” unemployed.  At least 100,000 million people are “unofficially” unemployed!  Both those factual numbers come from the U.S. Department of Labor!

As one of the many Low Income workers who recently went back to work, working for the Man in the U.S. (after two years of unemployment), let me just say this: No Shit Sherlock!

We Low Income workers, still with jobs, have seen the unAmerican Corporate America bullshit first hand, on a daily bases.  It’s now to the point many of us see it on an hourly bases!  Nothing has changed, people!  If anything the glorified, deified, well educated, well financed leaders of our country are only picking up speed with their snowballing moronic decision making!  Need proof?  How about JP Morgan Chase  (I now work for a contractor who lost a contract with Chase, now I think we know a major reason why Chase canceled the contract)?  Wake up people!!!  UnAmerican Corporate America is the cause of our economic decline!

Now for Europe.

The 17 member European Union held onto its record unemployment rate for the second month in a row. The latest report is for the month of April, and it stands at 11%.  When you break it down by EU member countries it gets worse: Italy  10.2%, Portugal 15.2%, Greece 21.7% (stats for February only).

But how about that Spain?  24.3% unemployment!  When you look at just youth unemployment (workers under 25 years of age) it’s 51.5%!!!  Can you say “get ready for civil war”?

The result of the collapse of the EU is causing the euro to crash & burn, and forcing the Japanese yen to increase in value.  Not only that, but today was the first day that China and Japan began trading their money (in order to avoid the U.S. dollar) and the yen gained in value over the Chinese yuan!

That will kill Japanese business.  Japan is a country whose economy depends on international trade.  Since 2011 the yen has gained in value, and has already caused major harm to Japanese companies.  Yesterday Toyota announced that it was selling $2.5 billion USD in bonds to raise cash, because they believed another credit crash was coming (funny how the U.S./British mainstream media misreported the news).

China is reporting a drop in the Purchasing Managers’ Index, down 2.9 points from April.  The drop is caused by a combination of decreased sales internationally, and domestically.  It means China’s economy is slowing down, and if China is the manufacturing center of the western capitalist world, then it makes for a good canary in the western capitalist economic coal mine.

Oh, let’s not forget those stable government bonds.  On 1 June 2012, U.S. ten year bonds hit a record low of 1.5% interest!   German government bonds hit a record low of 1.1%!

The result of all this doom & gloom, based on factual data, is that all the stock markets in Asia went down.  In the United States the Dow Jones Industrial Average (aka Wall Street) lost all its gains for January to May 2012, falling more than 200 points in one hour and 30 minutes!

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

What Economic Recovery? HP to layoff up to 48,000 more employees! Texas to be hit hard? Idaho’s printer factory targeted? Blame lack of recovery in Europe!

23 May 2012, Hewlett-Packard (HP) is expected to layoff another 25,000 employees according to an unnamed source, reported in a CNN/Fortune article.

The original report of the 25,000 job cuts came from Bloomberg on 17 May 2012.  It includes about “…10,000 to 15,000 from Hewlett-Packard’s enterprise services group.”  HP’s enterprise services is headquartered in Plano, Texas.

However, on 16 May 2012, Business Insider reported that HP wants to layoff up to 15% of its employees. “Layoffs are going to be significant.” HP has about 320,000 employees, if they go for a 15% cut that’s 48,000 people losing their jobs!

The Wall Street Journal (WSJ) is reporting that HP will report huge losses after the stock markets close today, 23 May. The WSJ Market Watch is expecting HP to report a quarterly earnings decline of 27%, with overall revenues down by 5%.

Fox News reporting that HP is suffering from the bad economy in Europe, which makes up 37% of HP’s business: “The increasing uncertainty and resulting macro weakness in Europe will likely act as an ongoing headwind to growth.”-Chris Whitmore, Deutsche Bank Securities

CNN is reporting that “Many of the job cuts are expected to come from the printing unit.” Back in march, HP announced it was merging its computer and printer factories.  However, this is not the first time HP has combined computer and printer production.

The last attempt was made in 2005, and was reversed six months later.

According to the IdahoStatesman, more than 50% of HP’s Boise, Idaho operation is printing and imaging.  When the IdahoStatesman questioned HP’s Boise campus boss (back in March), he claimed he was unaware of the merger of computer and printer operations.

Hewlett Packard has been slashing and burning ever since 2009, when employees got a 5% pay cut.  Then in 2010, about 9,000 jobs were cut. In February 2012, 275 people lost their jobs due to the canceling of HP’s webOS.

Business/Economics, International, U.S.

What Economic Recovery? European economies crashing and burning! Greece -6.2% GDP! IMF wants Mo Money! China in trouble!

May 15, 2012, the Group of 20 industrialized countries (not for long maybe?) will be meeting in Mexico, in June.  Already Mexico and Japan are calling for G-20 members (mainly those of the BRICS: Brazil, Russia, India, China and South Africa) to give the U.S. based International Monetary Fund another $430 billion USD!!!

This is because the European economies are crashing and burning. Italy reported a minus 0.8% GDP for the January to March quarter. That’s three quarters in a row of declines! Spain reported a minus 0.3% GDP, for the second quarter in a row. But Greece reported a huge minus 6.2% GDP!!!

The only “good” news came out of Germany, which reported a stagnant 0.5% GDP. And Germany is supposed to be the economic powerhouse of Europe!  Of course main stream western media reporting it as a “bounce back” in the economy, idiots!

Overall, the entire 17 member European Union reported a stagnant 0% GDP for January to March 2012!

To make matters worse, China is reporting that European investment into China has declined for six months in a row!  Chinese officials admitted that their country’s explosive economic growth can only be driven by foreign investment (like unAmerican Corporate America shipping U.S. jobs to China).

From January to April 2012, European investment into China dropped 28%.

 

 

Business/Economics, International, U.S.

What Economic Recovery? Greek Unemployment breaks Records! 60,000 companies went bust!

On May 10, 2012, the Greek Statistical Authority revealed that unemployment continued upward to record levels.

For February 2012, unemployment was at an official record high of 21.7%!

But wait, there’s more!  The reason for the record breaking unemployment was that 60,000 Greek companies went out of business in 2011!  60,000!

Greek business associations say another 60,000 could go bust in 2012!  They blame it all on the “austerity” cuts the Trilateral Commission control government is imposing upon the people of Greece.

On May 6, Greek voters voted to get rid of the U.S. based Trilateral Commission controlled ruling party, but now efforts to create a new government have stalled.

Business/Economics, International

What Economic Recovery? Spain hits record unemployment, highest in Europe!

April 27, 2012, Spain’s National Statistics Institute announced that Spain’s unemployment rate is officially at 24.4%, the highest ever for Spain, and currently the highest in Europe!

That’s 5.6 million people out of work in a country with a population of 46 million people!

The 24.4% rate is for the first quarter of 2012.  It’s a 370,000 increase from the last quarter of 2011!

Now realize that Spain is considered the fourth largest economy in Europe!

The government of Spain plans on enacting even more spending cuts, and increases in taxes.  Mmmm, I think that’s whats actually making things worse?

Business/Economics, International, U.S.

What Economic Recovery? United Kingdom in Double Dip mode, “strong” Netherlands economy falling apart

Just two days after Spain went Double Dip, Britain is now officially in double dip recession.

On April 23, it was reported that the “experts” expected U.K.’s quarterly GDP report to show 0.1% “growth”, which would have kept it officially out of a Double Dip (I said “close enough”).

April 25, the Office for National Statistics (ONS) said Britain’s GDP actually dropped 0.2%. Aww, that means two quarters in a row of negative GDP, welcome to the Double Dip club!

Here’s the tally, so far: United Kingdom, Spain, Italy and Belgium are officially Double Dippers.

To add to the European Union woes, France and Germany (considered the strongest economies in Europe) are seeing GDP contractions.

Then there’s Netherlands, which was considered to have a strong economy as well.  However, the government has fallen apart, over arguments concerning cutting government spending and raising taxes.  The Prime Minister resigned and new elections are to be held in September.  The Queen of Netherlands (yes, they are an evil elitist monarchy just like the U.K.) has ordered the Prime Minister to stay on until after the new elections.  (this is just more Trilateral Commission operations to create a singular privatized government system)

Business/Economics, International

What Economic Recovery? Spain officially in double dip recession, Britain on the verge

April 23, 2012, Spain’s Central Bank has declared the country officially in recession.

Gross domestic product (GDP) shrank 0.4% in the first quarter of 2012, following a 0.3% decline in the last quarter of 2011.   Decline for two quarters in a row makes an official recession.

The Spanish government says it will cut spending by $11 billion USD, and will increase taxes!

The United Kingdom is on the verge of double dip recession. Britain’s Office for National Statistics is expected to say on Wednesday that the economy grew(?) by a meager 0.1%.  

By the way, in order to be considered true growth your GDP needs to be at 3% or higher.  So Britain’s GDP is only 0.1%?  Close enough to call it double dip!

To make matters worse, the two “strong” European economies, Germany and France, are actually contracting!

Belgium and Italy have already crossed into double dip recession.

International, U.S.

What Economic Recovery? IMF accepts Chinese Yuan policy against U.S. dollar, Japan loans IMF billions to bail out Europe, IMF says it’s not enough!

April 15, 2012, Japanese Finance Minister Jun Azumi, announced that Japan will lend $50 billion USD to the International Monetary Fund (IMF) to help bail out the European economies.

The IMF says at least $500 billion USD is now needed to bail out Europe!

On April 14, IMF managing director Christine Lagarde, said she welcomes the Chinese Yuan:  “I would like to welcome this important step by the People’s Bank of China to increase the flexibility of their currency. This underlines China’s commitment to re-balance its economy toward domestic consumption and allow market forces to play a greater role in determining the level of the exchange rate.”

The Bank of China said it will allow the value of the yuan to fluctuate by at least 1%, against the U.S. dollar, when international markets open on Monday.  Up ’till now the Chinese central bank has allowed only a half percent fluctuation.

However, some analysts say allowing the value of the Chinese yuan to fluctuate more could result in even more volatility/instability for world markets.

 

International, U.S.

World War 3: Russia to station naval fleet off Syria…Permanently

“A decision has been made to deploy Russian warships near the Syrian shores on a permanent basis.”-unnamed Russian Defense Ministry official

April 13, 2012, Russia’s Defense Ministry announced that a Russian naval fleet will continuously patrol the Mediterranean Sea, near the Syrian coastline.

The Black Sea Fleet will deploy to Syria around May.   Currently the Russian Kashin class guided missile destroyer Smetlivy is patrolling near Syria.