9 posts tagged “economy”
The U.S. economy is definitely in an "economic downturn" the latest bailout (corporate welfare) of Bear Stearns has to be the biggest cover-up of a defunct financial market in U.S. history. Bear Stearns's capital base of $17 billion had dwindled to $2 billion in cash, and Bear Stearns told government officials that it saw little option other than to file for bankruptcy the next day. Had the government let this Investment Bank go bankrupt the entire banking industry would have stopped dead in it's tracks; no loans, hoarding of cash and the depositors (you and I) would be in a panic.
Could you imagine what you would do if the 24-news cycle told of a bank that went broke and left it's customers with no way to claim their money (Investment Banks are not federally insured [FDIC]). I know I would go down to my bank and ask a few questions while withdrawing my change (along with millions of other depositors). Thus creating a classic "run on the banks" which hasn't been seen since "the great depression" of 1929 -1939.
So this is the reason that a Sunday night deal was made to save the financial markets by rescuing Bear Stearns. Not only was the Federal Reserve Bank saving the banks but indirectly heading off a financial crisis of magnanimous proportions. Was it a corporate bail out? or did they spare America a "real depression" at the expense of our reputation abroad. The recent reforms proposed by Treasury Secretary Paulson was of direct results spurned by the mortgage crisis. So here is the fallout which will hurt us (America) abroad, continue to keep the dollar devalued, inflation rising and worldwide confidence in the greatest economy at a low.
This is an excerpt of an article ran in the
USA 2008: The Great Depression
Food stamps are the symbol of poverty in the US. In the era of the credit crunch, a record 28 million Americans are now relying on them to survive – a sure sign the world's richest country faces economic crisis
By David Usborne in New York
Tuesday, 1 April 2008
We knew things were bad on Wall Street, but on Main Street it may be worse. Startling official statistics show that as a new economic recession stalks the United States, a record number of Americans will shortly be depending on food stamps just to feed themselves and their families.
Dismal projections by the Congressional Budget Office in Washington suggest that in the fiscal year starting in October, 28 million people in the US will be using government food stamps to buy essential groceries, the highest level since the food assistance program was introduced in the 1960s.
When an agricultural shift in production causes farmers to abandon crops for human consumption to grow crops for energy consumption the markets are thrown out of balance. There is only so much agricultural land for crops. If that land is now used to produce grains, soybeans and switch grass for ethanol, who's growing wheat? Who's producing corn for the myriad of fructose syrups and solids (not that they're healthy) that are in most all of the products that fill our cupboards and fridge's? Who's planting cotton?
Wheat is at an all time high. Great for farmers and the commodity exchange brokers ; bad for Moms across the globe and countries that rely on the generosity of prosperous nations that give these grains to help with famine. Corn-feed for chickens, hogs, farm raised fish and yes even cows has put the burden on household economics.
As the illustration (above) suggests it is not better for the environment in fact studies suggest that rapeseed which the EU wants to use in biodiesel produces copious amounts nitrous oxide more harmful than CO2 gases from fossil fuel. Creating ethanol based fuels does stimulate an economy with a new industry and that creates jobs; but the cost of living is impacted so greatly that alternative energy not alternative fuel is a better solution.
Looking for a better way,
Bycha Buxton
If you watch the news; if you don’t watch the news. If you read my blog; if you balk at my rantings about China, socialist policies, and the Oakland Raiders that’s fine. But it is undeniable that We (America) have some serious issues to confront. As individuals we often feel that we’re too small and insignificant to make a difference. Not true. There is something that you can do. Just under 30% of the U.S. National Debt is owned by those who buy our debt and finance our indulgence (Britain, Japan,China and others). We cannot reverse this over night but you can prepare yourself for the worst if you think “the best is yet to come”.
A simple suggestion, consolidate all your credit cards down to one. One credit card per household. Use your debit card as you would your traditional credit card. Only use your credit card for those emergencies (i.e. death in the family, immediate travel or a must have purchases [we still have to live]) in the event that you do have to charge it pay it off the same month. Maybe you have to eat cheap a few nights out of the week (here’s a recipe). The looming mortgage crisis is going to get worse. What that means is that loans for homes are going to get harder to qualify for because the banks will be regulated into a corner. I rode the real estate boom of the 90’s. I watched the real estate crash of 21st century.
Our mortgages are purchased buy China, directly from the Federal Reserve Bank. If they were to call the loans on America we would instantly go into recession, interest rates would go through the roof and those credit cards would bankrupt you. I’m not predicting a doomsday scenario nor telling you my version of the truth, I’m just stating the facts. Hedging against a recession requires cash-on-hand; plan for the worse, hope for the best.
Concerned about you and yours,
Bycha Buxton
buxtonbycha@aol.com
The text book definition of recession is two consecutive quarters of shrinking GDP output. The reality is "when your neighbor loses his job." The fear is that you are next. I remember the recession of the Bush-Quayle years, The war in Iraq (called the Gulf War) and the dismal economy of 1992. I was fresh out of college, brand new wife and child (2 yrs old) my name sake. Things were bad for others; but we (my wife and I) both had good jobs although we feared lay-offs, the overall mood of the country was in the doldrums and it was common to see signs posted in business windows with the pre-text "Going out of...".
I'm no longer married, the kid's in college, we're still in Iraq, a Bush is in the White House and the "Going out of Business " signs are back in fashion. Reality check: We're in a recession. There are multiple contributing factors to why we are in an 'economic downturn' (technical pre-recession jargon). The subprime loan debacle, high energy prices, the impending war on terror, the Oakland Raiders consecutive losing season (oh, maybe that's a depression); the list of reasons is far and wide. The problem it's not acknowledged because of speculation and what it causes the markets (NYSE, AMEX, NASDAQ, etc) to do. They use this speculative talk (economists and on-air-personality blabbering) to take advantage of large portfolio's. Money is made by the news and views of the economy
Ben Bernanke, Federal Reserve Chairman can't tell the truth, only because the investment community gets squimmish, the President gets upset and your boss will tell you that " your expendable." So they asked me to do it. I hate to be the bearer of bad news but it could be worse a "...depression is when you lose your job. Recovery is when Bush loses his job."
My Version of the Truth,
Bycha Buxton
buxtonbycha@aol.com
The continental U.S. has oceans on three sides and within its borders America is teeming with lakes, rivers and streams. The entire U.S. and its territories (Alaska, Hawaii, American Samoa, Guam, Marianas Islands, Puerto Rico and the U.S. Virgin Islands) have more access to the worlds oceans than any other nation and the most sophisticated food production capability of any agricultural producing country. Why do we have this problem?
Many Americans would be surprised to learn that 80 percent of seafood
sold in the country is imported. The FDA inspects and tests less than 1 percent
of it. When the FDA does inspect, it frequently finds the fish is unhealthy and
filled with banned chemicals, making it unhealthy for consumers. -Food Democracy
Recently, tests in Alabama found traces of
the antibiotic fluoroquinolone in 13 of 20 samples of imported fish from
China. This led Alabama’s Agriculture Department to place an official ban
on the sale of all fish labeled as catfish imported from China.
Subsequently, Wal-Mart stores nationwide have removed the entire stock of frozen
Chinese fish sold under the guise of catfish fillets. -U.S. Representative Mike Ross (AR-04)
The problems with Chinese seafood are evident in a database of products that the FDA stops at the border. In May, for instance, the
F.D.A. turned away 165 shipments from China, 49 of which were seafood. Monk fish
was rejected for being filthy. Frozen catfish nuggets were turned away
because they contained veterinary drugs. Tilapia fillets were
contaminated with salmonella. The problems were even worse in
April, when 257 shipments from China were rejected, including 68 of
seafood. Frozen eel contained pesticides, frozen channel catfish had
salmonella and frozen yellow fin steaks were filthy, the records show. -NY Times
So far in 2007, veterinary drug refusals have made up 19.5 percent of all seafood import refusals, compared to 8 percent in 2006, 3 percent in 2005, 6 percent in 2004, and 2 percent in 2003 - Food and Water Watch.
| Sharp Increase in Import Refusals for Veterinary Drug Residues | Jan | Feb | March | April | 2007 Total (through April) | 2006 Total (Jan-Dec) |
|---|---|---|---|---|---|---|
| Import Refusals for Veterinary Drug Residues---> | 14 | 20 | 15 | 64 | 113 | 125 |
| Chinese Import Refusals for Veterinary Drug Residues--> | 12 | 18 | 4 | 44 | 78 | 78 |
| Catfish | 10 | 1 | 1 | 17 | 29 | 9 |
| Shrimp | 8 | 1 | 13 | 22 | 3 |
America we have to get off our duffs and return to the global dominance in all areas not just entertainment and self-indulgence. This is a continued attack on the ability to sustain our own needs. We (The U.S.A.) have got to be more self-sufficient!!
a concerned seafood lover,
Bycha Buxton
buxtonbycha@aol.com
According to the Washingtonpost.com "BP has agreed to pay $303 million to settle civil charges that it cornered the propane market three years ago and inflated heating and cooking costs for about 7 million mostly rural American households, a source familiar with the accord said." They (Washington Post) also state that " the London oil giant has been fighting criminal and civil charges by the Commodity Futures Trading Commission that it "purchased enormous quantities of propane to establish a dominant and controlling" position in the market and then drove prices up 50 percent by keeping fuel supplies off the market."
I'm not shocked that these 'goliath' Corporations try to manipulate the markets to gain profits. As a business model you do no more wrong than the competition to stay in business. So what does this mean? It means you learn the tactics of your industry (and within the law) apply what deems the most suitable to your business plan. They (British Petroleum) did not act alone as the only Big Oil Company fixing prices (my version of the truth). As one of the largest Natural Gas producers in the U.S. they were the most obvious with their illegal scheme to corner the market and they got caught.
When do we not only get off foreign oil but stop the domestic producers from fleecing America? Can we be heard by these Oil Executives? Do We (Americans') have the chutzpah to stand up and say no more?! BP got to sweep this under the rug. What happened when the 'Oil Industry' was called in front of Congress to testify? Did British Petroleum commit purgery? Has the 'Oil Industry' purgered itself and the truth yet to be told? The fact is we are being taken to the cleaners, oblivious to the mass mugging being committed while we continue to self-serve our nation further into ecological destruction and economic servitude.
Tired of getting fleeced,
Bycha Buxton
buxtonbycha@aol.com
The end game is the build up of the most sophisticated military force on the face of the Earth. China has held this
position before (B.C.E). They have access to our secrets (i.e. Navy EP-3) when they sent that spy plane back in boxes. 'A Chinese sub was apparently able to slip past at least a dozen U.S. warships, two U.S. submarines and a vast array of advanced technology, which failed to detect it'. according to the National Terror Alert Response Center. Is that our stealth technology they used to sneak up on the U.S.S Kitty Hawk, which by the way was refused entry into Hong Kong along with a nuclear sub and members of its strike group for Thanksgiving; but then spokesman for the Chinese Foreign Ministry Liu Jianchao reversed the decision hours after the ship had turned around (China's upset about the medal awarded to the Dalai Lama and U.S. weapons sales to Taiwan). With their build up of new military weapons such as the anti-satellite missile, the Chinese defense budget will increase by 17.8% over the previous year to $45 billion. The Pentagon believes it to be up to three times that amount ($135 billion). Yes it is dwarfed by Washington's budget of more than $440 billion; but we (Department of Defense) contract with the highest bidder and then subsequently they (Defense Industry) sub-contract with the lowest bidder (China) for production of some of the most advanced and vital components of our strategic systems. So the PRC Military doesn't need to spend as much in R&D. We give it to them along with a paycheck.An energy devouring country, with an ambitious space program, seeking to go to the moon, awash in cash, and in support of Iranian nuclear prodution China is a National Security Threat. This does not mean regime change as my Republican friends seem so often to use as a battle cry; but it does warrant some changes at the core of our social (China Part 1), economic (China Part 2) and military (China Part 3) strategies. We need strong leadership that stands somewhere between protectionism and globalism. The strength to turn away from what is cheap to what is good. I was told that "freedom ain't free"; but I know it's not "made in china" either. America what is our priority?
A No Limit Solider,
Bycha Buxton
buxtonbycha@aol.com
Hooray for the holidays!! ( I'm trying to get in the holiday spirit.) Sale's on everything, I just read the best deal of the day. A laptop for less than $300.00 at Fry's Electronics. I remember when they cost over $3000.00. We will spend our time thinking of others (hopefully) as others (China) spends their time thinking of US (hope you get the pun). This is not China bashing as for 75% of the things I own are produced there (the other 25% are in my fridge and gas tank). I could bore you with their currency manipulation, or unfair trade practices or their worldwide oil grab; but lets not talk about the obvious. Lets not talk about the ability to have the creature comforts available to us for pennies on the dollar. It's the U.S. vs the E.U. vs Russia; 'play them against each other'. China will buy 160 jets from Airbus for $14.8 billion and Boeing gets $0. The PRC will spend $11.9 billion with the French company Areva to build two advanced nuclear plants; while U.S. engineers at G.E. get tainted dog food, toxic toothpaste and lead toys for their tots. Yes the U.S. and Russia will get their turn to sell; with China planning to build as many as 33 nuclear plants by 2020 and soon to be the second largest airline market in the world (America's #1), Boeing will eventually sell a 777 or two.
They (China) have what is guaranteed in a global economy. When competition is abound; But at the consumer level we (individuals) have none. It's all made (most of it anyway) in China. It is a tool (cheap imports) that has eroded our economy. 'Drag them down, make them slaves to the very things they desire. Give them so much that a generation forgets how to produce and labor for themselves'. Please take the time to explore the hyper-text links to get a macro view of the economic bomb that's being unleashed. America we need our manufacturing back; new and improved since the USD is at a low its time to make the fine, quality products that were accustomed too and SELL! SELL! SELL!
The Salesman,
Bycha Buxton
buxtonbycha@aol.com
