Tag Archives: unemployment

Business/Economics, U.S.

What Economic Recovery? Postmaster General says Draconian cuts needed for self supporting U.S. Postal Service

“Both bills have elements that delay tough decisions and impose greater constraints on our business model.”-Patrick Donahoe, Postmaster General of the United States

The Postmaster General was referring to bills proposed by the U.S. Congress.  He’s still pushing for the more drastic changes he wants, like ended Saturday deliveries, and laying off more employees than proposed by the Congressional bills.

The biggest postal union, the National Association of Letter Carriers, says it’s close to a cost cutting deal with the Postmaster General.

The USPS is dealing with a 20% drop in letter business, just for this year.  Also, Congress created rules that forced the self supporting USPS to pay into Federal retirement programs.  The payments stolen by Congress, I mean, paid in advance, amounted to a decade’s worth of retirement fund payments.  So far Congress has refused to refund the over payments, although their proposed bills would give some money back, but only for use to buy out thousands of Postal workers.

When Postmaster General Donahoe talks about a “business model” he’s referring to the fact that in the 1980s Congress forced the USPS to become self supporting, meaning no more tax payer support.  The plan meant for the USPS to operate as a private business, so far Congress has actually interfered with that.

Whether Congress gets its way, or the Postmaster General, the result will be thousands more people unemployed.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!

 

Business/Economics, International, U.S.

Revised GDP report; what the mainstream media doesn’t tell you, inflation up, military spending up, non-military spending down, workers producing more but not being paid more

On November 22, the U.S. Department of Commerce, Bureau of Economic Analysis (BEA) released another revised Real GDP report.  It says the second revision of GDP for the third quarter 2011 was a stagnant 2%.

Gross Domestic Product is the “the output of goods and services produced by labor and property located in the United States”.   Real GDP means it’s been adjusted for inflation, specifically: “‘Real’ estimates are in chained (2005) dollars.”

The BEA report has some other important information, that the mainstream media rarely reports.

Inflation: Overall prices increased 1.9% in the third quarter, and 3.3% in the second quarter.

Expenses: Overall consumption expenditures increased 2.3% in the third quarter, 0.7% in the second quarter.

Property Investment: Non-residential property investment increased 14.8% in the third quarter, 10.3% in the second quarter.  Residential property investment increased 1.6% in the third quarter, 4.2% in the second quarter.

Exports: Products made in the U.S. and shipped to other countries increased 4.3% in the third quarter,  3.6% in the second.

Imports: Products brought into the U.S. increased 0.5% in the third quarter, 1.4% in the second quarter.

Government: Federal spending on the military increased 4.7% in the third quarter,  7.0% in the second. Federal spending on non-military decreased 3.8% in the third quarter, decreasing 7.6% in the second. State and local spending decreased 1.4% in the third quarter, decreasing 2.8% in the second.

Production: Real Gross National Product increased 2.1% in the third quarter, and 2.2% in the second.

Value of Products Produced: Market value increased 4.6% in the third quarter, 4.0% in the second quarter.

Income: Real Gross Domestic Income increased 0.4% in the third quarter, and 0.2% in the second.

To be significant the amount of change should be 3% or greater. Between 0% and 3% should be considered stagnation, below 0% is retraction.

Notice the huge jumps in property investment.

Notice that U.S. exports are above 3%.  This corresponds to the increase in production.  The value of products produced are more than 4%!  Yet look at the income of U.S. workers, a 0.4% pittance!  Some reward for making more products and providing more service!

The BEA’s data on production and income shows you that Corporate America views labor as slave wage workers. After all it’s obviously not the workers who’re benefiting from the increased production, and the increased value of their products and services!

What about government spending of your tax dollars? The BEA report shows what many are dealing with, a drop in State and local government spending (social services and education are the big ones), and a huge drop (more than 7% in the 2nd quarter, more than 3% in the 3rd) in Federal non-military spending (again, social programs, education, etc).  But look at the huge jump in military spending, it almost matches the cuts in non-military spending!

The BEA’s data on government spending is a real indicator of who the government really cares about!

Business/Economics, Technology, U.S.

What Economic Recovery? Netflix says 2012 will be so bad they will not make any profits. Looking to investors to float them. Blame competition & inflation

Netflix announced on November 21, that they do not expect to make a profit in 2012.  The on demand movie service went from having $366 million in cash, to almost nothing predicted for 2012.

Netflix officials blame it on several things; a huge subscriber loss, increased competition and a huge jump in licensing fees (inflation).

Like most of Corporate America, Netflix thought it could trick its customers into paying more for less. It backfired, company officials now estimate they will lose one million subscribers as a result.

Netflix says it’s seeing a jump in competition, not just from Hulu and Redbox, but from Amazon and Google.

Now comes the licensing fees.  In 2010 Netflix paid $180 million, now that’s jumped to $2 billion for 2012!!!  Company officials say they can not pay the fee upfront and will have to spread payments out over several years.

Under text book economic rules Netflix should pass on the increased licensing fees to its customers, but they already tried that and lost a huge amount of customers.  Netflix will try to ride out 2012 by issuing a crap load of stocks and bonds.  They hope they can get investors to buy at least $400 million worth of stocks and bonds, even though they admit they’re not going to make any profit for 2012.

 

Business/Economics, International, U.S.

Corporate Incompetence: British MF Global following in footsteps of Japanese Olympus?

“I’m flabbergasted. The bottom line is, there’s going to be a haircut involved. It’s devastating, what this has done to the industry.”-Tom Ward, retired Chicago Board of Trade member whose two sons have been blocked from accessing their money

Officials with MF Global, formerly Man Financial, are now admitting that they lost much more money than first reported. They’re now saying they lost $1.2 billion!

“What did the CFTC know three weeks ago and what do they know now?  If the amount has changed that much over three weeks, where did the money go? What were (regulators) looking at before?”-Tim Butler, attorney representing group of MF Global customers

MF Global originated in England, but after several moves, ended up in New York City in 2009.  They were a primary trader of U.S. sovereign debt (bonds).

Regulators have taken over the company, and are now liquidating it. The process has frozen $5.45 billion of customers’ money!

MF Global says they lost the money making a bad trade deal with the very bonds they deal with!  The latest reports say that MF Global may have used its customers’ investment money to make the deals for itself, a violation of regulations.

Investors are trying to get their money back, so far it takes hiring an attorney, but not everyone can do that: “Unlike the big banks, the average farmer who lost money in this fiasco can’t afford to hire an attorney and attend proceedings in a Manhattan courtroom.”-Chuck Grassley, U.S. Senator from Iowa

MF Global filed bankruptcy on October 31.

 

Business/Economics, International

United Police Kingdom: Privatization plans, disgused as austerity measures, backfires. Prison Guards threaten to join protestors, after government cuts pension plan, and prisons fill with record number of people

Thousands of British prison officers say they might join the planned nationwide strikes on November 30.

The Prison Officers Association has 35,000 members, and at least 15,000 will go on strike.  That’s enough to shut down the operations of British prisons.  To make matters worse, the number of people now in British prisons hit a record 87,945 last week.  The prisons are nearly maxed out.

The U.K. government wants to cut retirement plans, and that seems to be the straw that is breaking the prison guards’ back: “We are hoping that we can come to a settlement on pensions, but if we can’t, then we will support the November 30 day of action.”-Steve Gillan, Prison Officers Association

Business/Economics, U.S.

Occupy America! Corporate Lobbyists present plan to shut down OWS & Tea Party, more proof that the elites want turn the U.S. into a Prison Planet

MSNBC revealed a memo, written by former employees of U.S. House Speaker John Boehner, which basically asks for money to research ways to shut down the OWS and Tea Party movements.

Part of its goal is to prevent Democrats from joining the OWS movement, because that would threaten Corporate America: “This would mean more than just short term political discomfort for Wall Street…It has the potential to have very long lasting political, policy and financial impacts on the companies in the center of the bullseye.”

The proposal was written on the letterhead of the lobbying firm Clark Lytle Geduldig & Cranford and addressed to the American Bankers Association. It asks for more than $850,000 to conduct a 60 day study, which would include identifying Democratic candidates that are anti-Corporate America.

The Clark Lytle Geduldig & Cranford proposal also suggests that members of the Tea Party are close to joining forces with the OWS movement, and that upcoming end of year bonuses for corporate officials could result in Tea Party and OWS becoming one powerful movement: “Well known Wall Street companies stand at the nexus of where OWS protestors and the Tea Party overlap on angered populism…This combination has the potential to be explosive later in the year when media reports cover the next round of bonuses and contrast it with stories of millions of Americans making do with less this holiday season.”

The Clark Lytle Geduldig & Cranford proposal strongly suggest making examples of anyone who goes against Corporate America: “A big challenge is to demonstrate that these companies still have political strength and that making them a political target will carry a severe political cost.”

You need any more proof that Wall Street/Corporate America runs this country?




Business/Economics, U.S.

Occupy America! What Economic Recovery? Detroit to lay off thousands more city employees, impose more cuts, Detroit is Ground Zero for Corporate America’s attack on the working class

“The mood in Detroit is grim. The workers are very angry. They’ve given concessions over and over and over again without striking. We haven’t struck since 1896.”–Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit

In 1983 there were 21,000 Detroit City union employees, now it’s down to about 11,000 and will drop at least another thousand by next year.  After more than 100 years, it looks like the City’s employee union might finally go on strike!

In 2010, Detroit officials legally imposed drastic cuts upon the City employees’ pay and benefits, now they’re threatening more cuts!  In the past two years 2,000 City employees have lost their jobs, now the Detroit Mayor, Dave Bing, wants another 1,000 layoffs.

But, union officials say the Detroit City Council wants to one up the Mayor: “The City Council is competing with him to represent Big Business, apparently, they’re threatening 2,300 layoffs!”-Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit

This is part of a sinister plot to privatize Detroit, and the United States: “Detroit has a long history as a leader of the Civil Rights movement, we’re still a 85% Black city.  We have a long history as a leader of the Labor Movement, and I suppose that Big Business figures if they can attack us in Detroit, and get away with it, than they can do it anywhere in the nation, and lower the living standards of the entire population.”-Michael Mulholland, Secretary Treasure at AFCME Local 207 in Detroit





Business/Economics, U.S.

Occupy the United Police States of America! Officials admit to arresting reporters, restraining order ignored by cops, even a retired Judge was threatend by cops

“I was there to take down the names of people who were arrested. As I’m standing there, some African-American woman goes up to a police officer and says, ‘I need to get in. My daughter’s there. I want to know if she’s OK.’ And he said, ‘Move on, lady.’  And they kept pushing with their sticks, pushing back. And she was crying.  And all of a sudden, out of nowhere, he throws her to the ground and starts hitting her in the head.  I walk over, and I say, ‘Look, cuff her if she’s done something, but you don’t need to do that.’  And he said, ‘Lady, do you want to get arrested?’  And I said, ‘Do you see my hat? I’m here as a legal observer.’  He said, ‘You want to get arrested?’  And he pushed me up against the wall.”-Karen Smith, retired New York State Supreme Court Judge, and official legal observer of the OWS movement

New York City cops threatening to take down an official legal observer, and retired judge, just because she was reminding them of what they legally can and can not do.  If this isn’t proof that the United States has become a true Police State, then you’re blind!!!

Here’s more proof of the arrogance of “our” leaders: “Not being familiar with many of the media outlets for which The Awl says these reporters work, I had the list of ‘26 arrested reporters’ checked against the roster of reporters who hold valid NYPD press passes. You can imagine my surprise when we found that only five of the 26 arrested reporters actually have valid NYPD issued press credentials.”-Stu Loeser, NYC Mayor Michael Bloomberg’s spokesperson

First off, he admits 26 reporters were intentionally arrested for covering OWS events. Secondly, the list of 26 reporters includes many arrested at OWS events outside New York, so why would they have New York press credentials?!

Some examples: Photojournalist Kristyna Wentz-Graff, arrested in Milwaukee!  Reporter Jonathan Meador, arrested in Tennessee! Why do they need New York press credentials?

The British The Guardian reports that even a reporter with United Nations credentials was arrested.

Examples of harassment: Julie Walker, of NPR, says cops ripped her recorder out of her hands.  Doug Higginbotham, from New Zealand, had his New York press ID stripped off him by the NYPD.

Most arrested reporters are being let go, but some are being charged with disorderly conduct.

If you’re wounder how to get a New York City press credential, here’s a quote from the NYPD web site: “Applicants also must submit one or more articles, commentaries, books, photographs, videos, films or audios published or broadcast within the twenty–four (24) months immediately preceding the Press Card application, sufficient to show that the applicant covered in person six (6) or more events occurring on separate days.”

Did you notice; in order to get New York City press credentials you have to already be reporting, apparently illegally, news about New York City!!!  That’s typical Police State mentality.

On top of all that, the OWS movement actually got a restraining order against the NYPD, but the cops, and city officials ignored it: “When the cops raided Zuccotti Park, lawyers for Occupy Wall Street immediately woke up a judge with a civil liberties background and asked for help.  Manhattan Supreme Court Justice Lucy Billings signed an early-morning order temporarily barring cops from keeping protesters and tents out of Zuccotti Park.  But within hours, she was off the case as court administrators prepared to randomly choose a new judge — and excluded Billings’ name from the list of candidates.”-The New York Daily News

 

 

 

Business/Economics, International, U.S.

Occupy the World! Forget the 1%, what about the 0.000003% who control most of the World’s wealth?

Three millionths of a percent, that’s how many people throughout the world actually control the majority of the wealth.

According to a survey by Wealth-X (a Singapore based company that serves the interests of the ultra-rich, it says so on their web site) most of the world’s wealth is held by only 0.000003% of the people!

Ultra high net worth (UHNW) individuals are people with $30 million or more in assets.  That means real wealth, not wealth that’s ‘on paper’.  Wealth-X says there are only 185,795 UHNW people globally!  Of that, only 1,235 people are true billionaires!

Wealth-X breaks it down for the United States: 57,860 UHNWs, 455 of which are true billionaires. This means that of the 1% in the U.S., 1/54th controls 13.5% of the country’s wealth!

For Europe there are 54,325 UHNWs, in Asia there are 42,525 UHNWs, and 15,100 UHNWs in Latin America. Interestingly there’s nothing about ultra wealthy in Africa or the Middle East.

The Wealth-X survey is titled A Wealthy Head Count.


Business/Economics, International, U.S.

World War 3, What Economic Recovery? U.S. Defense Secretary says war with Iran will destroy World economy, yet Israeli officials say the World should attack Iran anyway

“I have to tell you… there are going to be economic consequences to that, that could impact not just on our economy but the world economy.”-Leon Panetta, Defense Secretary of the United States

Despite the warmongering rhetoric coming from the White House, and Capitol Hill, U.S. Defense Secretary Leon Panetta is warning of an economic Armageddon scenario if the ‘West’ attacks Iran.

Panetta made the remarks a day before going to Canada, to discuss the very plan to attack Iran with Israeli Defense Minister Ehud Barak.

Meanwhile, Ehud Barak is trying to fan the flames of warmongering by claiming that Iran’s alleged, and unproven, nuclear weapons program is targeting the whole world: “In order to do this we must convince world leaders and the public that the Iranian nuclear program is not only targeting Israel, but the foundations of the entire world order as well.”