The Wall Street Journal For Sale?

The gentleman that will own just about all media outlets in the world. Congrats! (Yikes?)

The Economic Slowdown

This news caught my eye today about the current state of the economy. The GDP figures are out and they are not good. GDP, or Gross Domestic Product, is a measure of all goods and services produced in the United States and is considered the best measure of the economy. The Commerce Department reported today that GDP rose a scant 0.6% in the first quarter of the year. This is the worst showing in more than four years.

Blamed for the current slowdown is the ever incresing trade deficit and a decrease by businesses in the purchases that they currently hold in inventory. The elephant in the room, the housing market, has also played a big part in the current slowdown. Perhaps the only thing that kept the economy from going down further was the fact that consumer spending rose a healthy 4.4%. What remains in regards to consumer spending, however, is the effect that higher energy prices will have in the future.

Economists, ever optimistic, feel confident that growth will expand the remainder of the year, but I personally have doubts about this. The housing market doesn't appear to be improving anytime soon and many speak of recession fears. Also, I don't see an end to the higher energy prices given the current political climate.

Open Discussion

How's the economic situation where you are? Use this thread to discuss the economy, jobs or whatever else is on your mind.

Let 'Em Eat Steak!

What a bizarre time we live in. Once, long ago, we actually had a government that cared for the welfare of its citizens and an array of agencies were created to prevent businesses from endangering the public health (USDA, FDA, EPA, etc.). These were in response to bad business practices of the day that occurred due to lack of oversight or regulation. Well, those days seem to be over. Yes, the agencies are still around but are only a shell of what they once were. The only concern that they all seem to have is the interests of the industries that they are supposed to regulate. The latest in a long line of cases involves the testing of meat for mad cow disease. A company in Kansas, Creekstone Farms Premium Beef, wanted to test its cows for the presence of Mad Cow Disease. The larger meat packers, fearing that they too would have to perform the test, strongly opposed the idea due to the costs involved. It seems that the US Agriculture Department agrees with the large meat packers and has appealed an earlier ruling by a federal judge who stated that the voluntary testing must be allowed. The ruling was to take effect on June 1. Read the article here and tell me if you think that this in the interest of the public at large. If this is the best that we can expect from these agencies today, whether it be beef testing or melamine tainted food and pet products, we as a society are in big trouble. Quarterly earnings, stock prices, 'bottom lines'--they become meaningless if we must live in an unregulated pool of poisons and toxins in our own food supply chain. After all, humans that we are, we still have to eat and drink.

Let's Party Like It's 1977!

I was in the shower this morning and on the radio I heard the song Boogie Nights by the band Heatwave, released in 1977. Wow- 30 years ago! I got to thinking about that year and all the fun things that I remembered. What simple times then when the biggest concerns were things such as 'What disco are you going to Friday?' or 'Did you see Star Wars?'. That year saw the opening of Studio 54, the rise of punk music, glam KISS concerts, Saturday Night Fever, TV shows such as The Love Boat and Three's Company and the death of Elvis. What a year! Have any fond memories of that year (that is, if you were even born)?

Robert Zoellick- Next World Bank President?

In a follow up to an earlier post, it was reported today that Robert Zoellick has been chosen by Mr. Bush to be the next World Bank President. Robert Zoellick was a former US Trade Representative, US Deputy Secretary of State and managing director and chairman of the International Advisors Department for Goldman Sachs. Also it should be noted that Mr. Zoellick was also an original PNAC (Project For A New American Century) signator. Much has been said in the European press that he was actually pre-approved for this position and was reportedly warmly accepted by European ministers and trade officials. Given this, his approval seems likely.

Health Care For All?

Sen. Barack Obama stated "The time has come for universal, affordable health care in America" and has proposed a plan extending benefits to almost 45 million Americans who currently do not have coverage. He calls for the costs to be shared by government, business and the consumer. Under the proposal, everyone would be able to obtain health insurance and it would create a National Health Insurance Exchange to monitor insurance companies in offering the coverage. It would also prohibit insurance companies from refusing coverage bacause of preexisting conditions. With his plan, he states that the average consumer would save about $2500.00 per year.

I worked in the health care field for many years and can tell you that there is indeed a crisis. Refusing treatment to the uninsured, insurance companies dictating treatment, hospitals only concerned with the famous 'bottom line'. The state of health care in this country is deplorable and not getting any better. For years there has been talk and more talk but no action. This isn't surprising when you think of the money spent by lobbyists and the insurance companies to quelch any serious debate. Many on the Republican side will use the tired 'He's increasing the size of the government' line but I think after the past few years, Republicans should look at the increase in the size of government (not to mention the inefficiency- FEMA, FDA) under their watch. Hopefully this will be the first in what I hope will become a nationwide dialogue regarding this crisis and will lead to some meaningful solutions. There is no excuse for our country to have the broken down health care system that currently exists.

Open Discussion

What's going on in your world tonight? Worried about the economy? Your job? The state of the world affairs? Or did you spend the evening watching the Miss Universe Pageant (Miss Japan won) or the latest rerun of Mannix? Talk about it here.

Honor the Fallen

Take a moment today to remember those who have fallen.....

America's SICKO Health Care System

The Next World Bank President

The decision of just who will replace Paul Wolfowitz as head of the World Bank is the question of the day. Wolfowitz, accused of arranging the extraordinary promotion and salary package for his girlfriend, also a World Bank employee, was forced to announce his resignation on May 17. The United States, backed by the Europeans, wants to continue the 60 year tradition (I say tradition, as it is not written in law) of appointing the successor. The G-20, currently headed by South Africa, have taken a different approach, insisting that the replacement be named in an "open, transparent process with candidates not restricted by nationality". This movement seems to have picked up steam as both Brazil and Australia have joined the call for a candidate not personally picked by Washington.

The candidates currently being circulating in Washington include Bill Frist (SEC, anyone), Robert Zoellick (US Trade Representative, negotiator of CAFTA) and current Deputy Treasury Secretary Robert Zimmitt. More of the same, as if I expected anything else from this crowd in Washington.

After 60 years, I feel that it is time for the United States and Europe to give up their royal decision making in naming the head of both the World Bank and the IMF, respectively. It's ironic that the nations most impacted by the decisions of these international organizations have never had the opportunity to be involved in the decision making process in who leads them.

Foreign Investors and Free Trade

Remember the days when a company decided to set up shop in a foreign country and were actually bound by that country's laws and regulations? Well, those days have evolved into a climate of 'anything goes'. With foreign investor protection clauses tucked away in these bi-lateral (more than 2500) and 'free trade' agreements, a country's laws and regulations are meaningless if it is perceived to infringe on a company's ability to generate current or future profits. Damn be democracy, damn be the environmental laws, damn what the people want, they say- We invested in your country and we have the right to realize our full profit potential and make this investment pay off. This is one of the sad realities of globalization. These rules are promoted by the World Bank and other international financial institutions and enforced through the World Bank's 'arbitration court' and other international tribunals.

Foreign investors can now sue for a laundry list of things. If a company perceives a country's environmental laws or public health laws to be in the way of their profit line, they can sue in this 'arbitration court' claiming that these laws diminish the value of their investment. Suppose for example that a Canadian mining company wishes to operate an open pit mine in Guatemala, for example, and Guatemala, a signatory member of CAFTA (Central American Free Trade Agreement) says that the project violates their environmental laws. Guess what? The company simply goes to the 'arbitration court' and sues the government of Guatemala. Great system, huh? And who pays when the companies win? Let's see...the corrupt politicians who signed these agreements....No...it's the working and poor citizens stuck with the bill.

These excessive investor protection laws must be replaced with just laws. This 'anything goes' model of business belongs in the trash bin of history and it is time for these foreign investors to act like the responsible global citizens that they should be.

Invasion of the Plastic People

Mounds and mounds of plastic. Where does it all go? Think of all the shopping bags, drink bottles, toys and other things that you have had in your lifetime and remember...it's all still around in one form or another. It is estimated that each one of us throws away about 185 pounds of plastic a year. I came across a very interesting and sad article that illustrates the seriousness of this issue. Check it out.

The Hidden Face of Globalization

Global Warming and the Economy

Climate proposals are set to begin at the G-8 conference in Germany next month but surprise, surprise, the US has already rejected all of the proposals. WTF?

The Bush Administration has repeatedly ignored scientific studies and even censored or changed others to bring them in line with their policy objectives. Overall, nothing has been done regarding this issue. If the purpose of all of this nonsense is to keep the status quo happy (i.e. Big Oil, Corporate Donors) then this approach is short-sided and ignorant at best. What would it take for this Administration to wake up- picking sunflowers on Christmas Day instead of making snow angels?

This is not simply a black and white issue. There are many factors at work here. Let's take a look at some of them:

1. Peak Oil- Former President Clinton, in a speech before the Aspen Ideal Festival in July, 2006 states that " This is very important. I have never had a security briefing which said what some of these very serious, but conservative petroleum geologists say, which they think that, either now or before the end of the decade, we'll reach peak oil production globally, and with the rise of China and India and others coming alone, unless we can dramatically reduce our oil usage, we will run out of recoverable oil within 35 to 50 years. And that would mean that ...in addition to climate change, we have a very short time in the life of the planet to turn this around. We may not have as much oil as we think. So we need to get in gear."

Former President Bill Clinton, Aspen Ideas Festival, July, 2006

The United Sates is a fossil-fueled throw-away economy and this model is simply unsustainable. We must act as a nation to change this which will require a major change in how we all live and do business.

2. Energy Prices- As the prospects for oil decreases, the prices increase. That's the law of supply and demand, right? It is imperative that the United States restructure its' energy infrastructure or millions of us could find ourselves unable to afford the most basic of needs- food, for example. To costs do this is, of course, enormous but when we spend untold billions on war and the expansion of military power (i.e. bases), the argument that there are no resources for this are hollow.

3. Jobs- Think of all of the new jobs that could be created with investment in alternative energy sources. High tech jobs- not just service jobs that are created in today's economy. Think of how competitive the Big 3 automobile manufacturers could become as it develops the 'next big thing' in alternative energy running vehicles. Bye Bye gas hogging SUV! Also, the money consumers could save by reducing they amount they pay today for ancient sources of energy could help stimulate the economy which is good for everyone.

4. Decreased dependence on foreign sources for our energy needs- Do I really need to add anything here?

Overall, it's a winning proposal and something that, whether you like it or not, will have to be done at some point in time (hopefully, sooner rather than later). The longer we wait, the more difficult the choices become and the less time we have to develop these changes. Who can realistically argue (besides Sen. Inhoffe, who does try!) that it's better to be chasing down some dwindling source of energy in a foreign land (usually hostile) when we could be developing alternative energy sources here at home that creates actual jobs? Where's that American spirit of innovation and hope that we can and will create a brighter future? If we refuse to change, Iraq could just be the beginning of future 'oil and resource' wars. For the government not to act and the people not to demand it would truly be the ultimate tragedy for not only ourselves but the future of humankind.

Free Trade and Food Safety

It seems every time I turn around it's a new food scare. First it was the pet food recall, then animal feed and now it's toothpaste?! What gives? In this great system of 'free trade', are all the rules and regulations (or even just the norms of doing business) simply pitched aside and corporate profits really the only concern? I do believe that to be the case. How else to explain that the FDA inspects about 1% of the food stuffs coming from China? It doesn't take a genius to realize that those in the import/export food chain aren't really too concerned about getting caught. I guess that it will take a major food issue that affects people and not only pets on a grand scale to force changes in this globalized system of food trade. I plan to do a series on free trade soon along with its' underlying issues and food safety will be one of the areas I will discuss further in more detail.

Credit Card Labyrinth

Reading an AP article entitled "Fed wants to clear credit card confusion" I was certainly interested as I am one of those unfortunate souls held hostage by these damn pieces of plastic. Deluged by complaints from consumers, both the Federal Reserve and Congress are proposing changes in the ways consumers are notified about changes in their accounts and the various interest rates for different types of transactions.

The article is worth a read. I know first hand the devestating effects that credit card companies can wreck on ones' life. If I can ever get out from under the thumb of these companies, I will personally become an advocate against their use. If you are one of those fortunate ones that do not have one of these cards, PLEASE, PLEASE throw those damn offers away or go straight to the shredder and get rid of them.

It is way past time to reign in these companies and their ridiculous interest rates, fee structures and penalty payments. It's simply the latter-day version of the infamous loan shark. The dark trenchcoat and scary alleyway have transformed into cute plastic cards that you can personalize in really groovy colors. Get to work Congress- Get to work Feds- It's time to stop letting these companies rip off consumers while lining their pockets with handsome profits.

The Real Costs of the Iraq War

The costs of the Iraq are are enormous in many ways. First and foremost is in lives, both of the Iraqis and the military. It seems that every month is the 'deadliest month recorded so far' and this stastistic doesn't seem to be changing any time soon. One must remember that when this war is over (whatever that means) veterans health care and replacement of equipment lost in the war will have to be addressed. And if you take the 'you break it, you own it' line, the money that it will take to 'fix' a broken Iraq (if that can even be done) is unimaginable. Just because the war is declared over doesn't mean the dollars stop flowing.

Here at home, many vital programs have been underfunded or ignored during this period as well. Security in our ports, health care, social security and infrastructure come to mind although there are many others. These issues must be tackled while trying to keep America fiscally sound.

This is not a pretty topic nor is it one that will simply go away by pretending that it does not exist. It's going to require some tough decisions and some that many will not like. Aren't these issues that should have been discussed way back when talk of war came over the horizon?

We must look at wasteful spending in the budget, revisit the massive tax cuts and cut our dependence on foreign capitol for starters. It is also essential that America cut its' dependence on foreign oil and finally develop renewable sources of energy.

The costs of this war (over 500 billion to date) not only today but long term are serious. The choices that must be made won't be pretty. I just hope that we have the leadership that will tackle this and not simply try, as in the past, to put the hard choices off. It's not fair to us and especially to the next generation. .

The Great Immigration Debate

Few topics of late have generated as much talk as the current proposals before Congress dealing with immigration reform. One one hand, you have those advocating for passage stating that it will be both good for the economy and national security. It is argues that the bill would help to identify the more than 12 million illegal immigrants now working in this country as well as fortifying the border with Mexico. The bill as proposed would allow temporary legal status to these more than 12 million immigrants and allow them to apply for visas and eventual citizenship. It also allows up to 400,000 foreign workers into the country every year, but they would have to return home after two years. On the other side of the debate, many worry that the loss of jobs and fattening corporate profits are the real issues here. This is definitely an issue that must be dealt with as the number of illegal immigrants rise each year. What are your thoughts on this issue? What effect do you think trade deals such as NAFTA and CAFTA have had on the number of illegal immigrants working here?

The Incredible Sliding Dollar

I have read many articles in recent months about the effect that worldwide dollar dumping would have on the economy. It's scary stuff and the consequences could be quite grave. Anyway, I came across this article which talks about how the Kuwaiti government has removed the currency peg that it has to the dollar and instead have switched to a 'basket of currencies'. Although the article states that 75-80% of this 'basket' will be made up of the dollar, the very fact that they are diversifying away from the dollar is alarming. I've read many times about the chain effect that a move like this could cause. The article ends by saying that the CGG (Gulf Co-Operation Council) states- Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Oman are studying the move as an option to mitigate dollar weakness. Frightening read!

So You Say You Are A Cyberbeggar?

You may wonder--how can someone who is a cyberbeggar possibly have a blog that deals with economic issues of any sort? Well, let me tell you. I was at the top of my game a couple of years ago. I did all the things you are 'supposed' to do- graduated from college, worked hard, got a great job in the health care field and bought a house all by the time I was in my early 30's. Kept my economic house in order, paid all of my bills on time and in general was the model 'Tax Paying Citizen'. What happened? Well, foolishly I thought the idea of owning my own business was a great thing to do. You know the lines--work hard, sacrifice and you can create your own future. Blah. Blah. Blah. Long story short. I sold the house and invested the money (and some) to start my own little restaurant. The problem was the 'and some' as this was financed with credit cards. No problem I told myself- the profits will be used exclusively to pay these off and then go on. One thing I didn't plan on in this great global economy of ours was that with the decline in disposable income, businesses such as mine have been affected. With decreased projections, this credit card 'financing scheme' has not turned out to be one of my own best decisions. The business does well (although I had higher expectations of the market) but these damn credit cards and high interest rates eat a significant portion of my revenues. I know some will say that I was crazy to try this scheme at all. Fine- we all make mistakes (mine was great, I agree) but I want to talk here about the underlying issues that we have today in the domestic and world economies and the political decisions being made that are important to all of us. No I'm not an economist but I do know what does and does not impact my financial life.

Credit Party a Go-Go!

We've all heard stories of the housing bubble and the potential consequences that it could have on the general economy but have you read about the credit bubble? I came across a great post the other day that dealt with this issue. According to the author of this piece, many financial institutions have been making loans to risky companies for quite some time now and what could happen if these deals turn bad. It's a great read and I highly recommend it.

Credit Card Debt

Credit Card Debt- these very words strike fear into the hearts of the many people that have it. I know because I do (alot to be honest) and let me tell you, the subject fills much of my waking day. The credit card industry makes big bucks off of such things as high interest rates and various 'fees'. To get an idea of just how much money is being made, take a look at the recent quarterly earnings of MasterCard. Profits rose an astounding 70%! It's sad but true that more and more people have taken on exterme amounts of credit card debt just to get by. Add to this the inability of many people to pay these cards off due to job loss, foreclosure, stringent loan requirements, etc. Have a credit card story?

The Incredible Cost of Driving Today

You know, I'm old enough to remember when gas was under a buck a gallon. Then I watched as prices climbed over a dollar, a buck fifty and now over $3.00. Wow! Considering that almost everyone is dependent on a vehicle for transportation, the effects of these prices are considerable for most people. I have always believed that as technology stands today, we BY NOW would not be so dependent on the gas powered car for transport but would rely more on alternative sources of energy to power our vehicles. Any thoughts on this?

My New Blog!

Welcome to my new blog! I plan to focus on issues of politics and the economy that have made me what I am today--a cyberbeggar! What an accomplishment. I look forward to not just creating yet another blog but one with a vibrant community that examines the state of affairs today. Join with me in this journey and let's have fun doing it.