10/18/03 Corporate Tax Receipts
A happy birthday to my son. He brings me daily joy.
Let’s take a moment to reflect on federal government tax revenues. Last week the CBO reported that corporate tax receipts in the fiscal year that ended on September 30 had fallen by 11% to $132 billion. Three years ago the corporate taxes were $207 billion. I understand business profits are a good deal lower today, but there are loopholes that need to be addressed. Let’s look at Nabors Industries, the nation’s largest operator of oil-well drilling rigs. They operate the company out of Houston. In 2001 they moved their legal address, their tax address to Bermuda where there isn’t any corporate tax. Presently, the U.S. corporate tax rate is 35%. In 2002 Nabors saved $10 million in taxes. I have no problem with that. I do have a problem with Nabors stating that their American subsidiary of 33 ships serving oil drilling platforms in the Gulf of Mexico qualifies it for business under the Jones Act, which since 1916 has required that ships engaged in purely domestic trade be built in American shipyards, owned by American companies, and operated by American crews. A 1996 law allows foreign financing of such ships. The company’s Bermuda parent is lending the money for these ships. By avoiding the payment of U.S. corporate taxes, Nabors is able to underbid competitors. If Congress does not do something about this inequity, competitors to Nabors will also move their tax address to Bermuda, and U.S. corporate tax revenues will drop further.
Several times I have written about the pending $4 billion in trade sanctions. The EU has given Congress until the end of this year to come into compliance. Yesterday the EU mentioned they might phase in those sanctions beginning in March 2004, and would begin with a 5% duty on a list of U.S. goods, and this would increase by 1% per month for a year. In the meantime, there is a Senate bill that would replace the export subsidy with a $60 billion tax cut for manufacturers, and this would lower the tax rate on earnings from domestic manufactured goods to 32% from 35%. There is an additional consideration that would shield corporate overseas income from immediate taxation. Another provision would encourage U.S. companies to return overseas profits to this country, and in return, the corporate income tax for one year would be lowered to 5.25%. The latter is absolutely nuts. There would be a rush to produce in China and hire in India, and then with the added profits from lower costs, bring the profits back to the U.S at the low tax rate. This would be accomplished at the expense of lost jobs in the U.S. and place greater tax expense and fees on the pockets of the American taxpayer. This is not capitalism and free enterprise. This is government -engineered socialism. The average American taxpayer now works almost 5 months out of the year for nothing. That working time goes towards the payment of federal, state, and local taxes and fees. Maybe the government wants your lungs and your cohones too.
On October 9 Bush spoke to National Guard and Reserve troops in Portsmouth, NH. He said those two groups had become part of the backbone of the military. He stated “Citizen-soldiers are serving in every front on the war on terror. And you’re making your sate and your country proud.” They may be the backbone but their medical treatment would not reflect it. One soldier who served in Operation Iraqi Freedom remarked “it is not an Army of One. It is the Army of Two- Army and Reserves. One month ago Bush greeted soldiers at Fort Stewart in Georgia. There are 600 sick or injured members of the Army Reservist and National Guard warehoused there. A document states there aren’t any more appointments available for these soldiers from October 14 through November 11, Veterans Day. We can authorize money for Iraq. Bush can promise U.S. help for the Philippines. But we can’t take care of our sick and wounded soldiers. Sgt. 1st Class Willie Buckles has served in the Army Reserves for 27 years, and that includes Operation Iraqi Freedom and the first Gulf War. He stated “now my whole idea about the U.S. Army has changed. I am treated like a third-class citizen.” A Commander-In-Chief should never let that take place.
Since Bush declared an end to major fighting on May 1, U.S. combat deaths exceeded 100 for the first time. Yesterday marked the 101st combat death since May 1.
House Minority Leader Nancy Pelosi of California announced she would oppose the Iraq loan amendment. She stated “American soldiers are taking virtually all the risks and the American taxpayers are paying virtually all the bills.”
Another senior White House staff member is leaving. On Monday, Jay Lefkowitz will rejoin Kirkland and Ellis as a litigation partner. He is senior policy advisor to President Bush and head of the White House’s Domestic Policy Council. Lefkowitz advised Bush on health, education, transportation and policy, labor and veterans’ affairs, environmental regulations, and international trade. In other words, he has been the consigliore. I guess he felt a 2 ½ year White House stint was enough.
Marathon Ashland Petroleum is a joint venture between Marathon Corp. and Ashland Inc. They are the nation’s sixth-largest oil refiner. On Friday they announced 165 cuts or about 2.5% of their workforce. Gary Heminger, the company’s president, said “MAP must continuously improve its competitive position and long-term profitabilty. We are maximizing every dollar spent to run our business and looking hard at all manageable business elements to determine the most efficient ways to increase MAP’s value.” Mr. Heminger’s words ring through most corporate hallways and boardrooms. Cost cutting is king. MAP is looking at ways to outsource IT, accounting, and HR. Hundreds of other companies are searching for similar outsourcing avenues. More U.S. jobs will be eliminated through outsourcing. This trend is picking up speed. It is not slowing.
There is other employment news. The U.S. Agriculture Department is setting up a new enforcement unit to ensure that biotech companies are properly managing field trials of genetically engineered crops. The unit has a staff of 33 and it will grow to 50, not including a director that needs to be named. What would a government unit be without a director? The USDA released enforcement records that cited 115 infractions between 1990 and 2001 on 7,402 field tests of various biotech crops. A total of 8 violations resulted in fines, ranging from $500 in 2 incidents to one incident of $250,000. Four incidents had fines totaling $43,200. In other words, there was a total of about $300,000 in fines over 11 years, and infractions came to about 1.5% over that period. I wish the government ran so efficiently. I wonder if the biotech industry can create a crop that will stop me from upchucking due to government enforcement
Friday, October 17, 2003
10/17/03 The Enemy
There are times my thinking is slow. Since I spend a great deal of time thinking, I expect more of myself. For three years the events of 9/11 have been gnawing at me. Something has been missing. I may be slow but I feel better now. It’s China. They are the real enemy. Three years before 9/11 Colonel Qiao Liang and Colonel Wang Xiangsui wrote a military handbook entitled “Unrestricted Warfare:China’s Master Plan to Destroy America.” You think this is a joke? This is from the book: “Whether it be the intrusions of hackers, a major explosion at the World Trade Center, or a bombing attack by bin Laden, all of these greatly exceed the frequency bandwidths understood by the American military.” Osama bin Laden is mentioned frequently in this book. Adm. Thomas Moorer is the Former Chairman, Joint Chiefs of Staff, and stated “the 9-11 attacks may just be the beginning. Many terrorist nations and groups will try to imitate this operation… and China’s war book “Unrestricted Warfare” will be their text.” Maj. Gen. John K. Singlaub is the Former Chief of Staff, U.S. Forces Korea, and remarked “Unrestricted Warfare is evidence linking China to 9-11. It is also their plan for global operations against America.”
We need to stop investing in China and we need to stop importing from China. Ford, for example, needs to reverse its strategy. China is the world’s fastest-growing major car market. GM has 8% of that market. Ford announced today they would increase their investment in China by $1 to $1.5 billion over the next few years by raising production at its joint venture Chongqing Changan Automobile Co Ltd to 150,000 units from 20,000 units. Last year overall car sales in China passed the one million mark. This year it is expected to double in size.
I am not proposing placing controls on Chinese imports. I am recommending companies voluntarily stop importing from and voluntarily stop investing in that country. China is on an economic roll but it is also an accident waiting to happen. We need to give it a helpful nudge. Let me explain. China has a positive balance of trade with the U.S of about $105 billion. That is for 2003 only. However, China has a trade deficit of about $75 billion yearly with the rest of the world, and most of that is with other Asian nations. Thus, their net trade surplus will only amount to 3% of their GDP. Their capital account was positive by $30 billion in 2001 and $30 billion in 2002, and there is a similar expectation for 2003. The main area of focus must be on their foreign exchange reserves, and these currently amount to $350 billion. Offsetting these pluses, is a major problem in their banking system. The Chinese people, for the most part, cannot take money out of China, and can only hold non-yuan deposits if that money is earned outside China. Consequently, the banking system in China is funded by the high savings rate. The Chinese money supply has risen at a 22% rate this year.; however, this money is being funneled into loans by banks, and non-performing loans have risen significantly in 2003. These loans probably exceed $650 billion. Much of the money has been loaned to real estate developers for industrial development. Much of the development has been for U.S. companies, such as, GM. Under China’s commitments to the WTO, foreign banks must be allowed to enter China by 2004. Consequently, over the next three years, we must take positive action to push that banking system into a collapse. It won’t be difficult. Stop investing there. Stop buying their imports. Their economy will crumble. If that happens, their currency will be significantly overvalued.
In addition to the above- mentioned voluntary actions, our federal government must change its spending habits, and now. On an inflation -adjusted basis, total federal spending has grown 17% during the last three years. Non-defense discretionary spending (ex Social Security, Medicare, and Medicaid) has grown by 23.2% during the last three years. Therefore, our federal spending has risen to more than 20% of GDP. That must change immediately.
Nationwide, the number of local government jobs dropped by 19,000 last month, on a year-over-year basis. It was the first such drop since 1984. Last year, for example, Texas gained 44,000 jobs. Of that amount, 36,000 came from government hiring. During the same time, manufacturing employment in Texas fell by 33,100.
I don’t want you to believe that the U.S is the only country that needs to change its ways. British banking group HSBC said it would slash 4,000 jobs in England and Wales. Call centers in Birmingham, Brentwood, Sheffield, and Swansea would be closed and the jobs would be transferred to centers in China, India, and Malaysia. HSBC had previously announced laying off 1,400 workers in Britain by year-end.
Three American soldiers were killed and seven wounded in Karbala, Iraq. Those deaths mean a total of 197 U.S. soldiers have been killed by bombings, ambushes, and other hostile incidents since the declared end to major combat operations on May 1. It is no wonder that the survey conducted by the Stars and Stripes newspaper indicated that 34% of the troops described their morale as low, and 49% described their unit’s morale as low. Last week Bush said the military spirit was high. He is out of touch with the troops. According to a recent Results for America national opinion poll, 55% of Americans think the United States is either going in the wrong direction or has no direction at all. The poll concludes the majority of Americans believe their current political leaders are either “weak” or “very weak” as “problem solvers.”
Delphi Corp. will cut 5,000 jobs. For the week ended Oct. 4, the number of Americans claiming benefits after filing an initial claim climbed 58,000 to 3.67 million. Workers are having an increasingly difficult time finding new jobs.
Over the last 12 months, the core CPI has risen just 1.2%, the smallest since February 1966.
There are times my thinking is slow. Since I spend a great deal of time thinking, I expect more of myself. For three years the events of 9/11 have been gnawing at me. Something has been missing. I may be slow but I feel better now. It’s China. They are the real enemy. Three years before 9/11 Colonel Qiao Liang and Colonel Wang Xiangsui wrote a military handbook entitled “Unrestricted Warfare:China’s Master Plan to Destroy America.” You think this is a joke? This is from the book: “Whether it be the intrusions of hackers, a major explosion at the World Trade Center, or a bombing attack by bin Laden, all of these greatly exceed the frequency bandwidths understood by the American military.” Osama bin Laden is mentioned frequently in this book. Adm. Thomas Moorer is the Former Chairman, Joint Chiefs of Staff, and stated “the 9-11 attacks may just be the beginning. Many terrorist nations and groups will try to imitate this operation… and China’s war book “Unrestricted Warfare” will be their text.” Maj. Gen. John K. Singlaub is the Former Chief of Staff, U.S. Forces Korea, and remarked “Unrestricted Warfare is evidence linking China to 9-11. It is also their plan for global operations against America.”
We need to stop investing in China and we need to stop importing from China. Ford, for example, needs to reverse its strategy. China is the world’s fastest-growing major car market. GM has 8% of that market. Ford announced today they would increase their investment in China by $1 to $1.5 billion over the next few years by raising production at its joint venture Chongqing Changan Automobile Co Ltd to 150,000 units from 20,000 units. Last year overall car sales in China passed the one million mark. This year it is expected to double in size.
I am not proposing placing controls on Chinese imports. I am recommending companies voluntarily stop importing from and voluntarily stop investing in that country. China is on an economic roll but it is also an accident waiting to happen. We need to give it a helpful nudge. Let me explain. China has a positive balance of trade with the U.S of about $105 billion. That is for 2003 only. However, China has a trade deficit of about $75 billion yearly with the rest of the world, and most of that is with other Asian nations. Thus, their net trade surplus will only amount to 3% of their GDP. Their capital account was positive by $30 billion in 2001 and $30 billion in 2002, and there is a similar expectation for 2003. The main area of focus must be on their foreign exchange reserves, and these currently amount to $350 billion. Offsetting these pluses, is a major problem in their banking system. The Chinese people, for the most part, cannot take money out of China, and can only hold non-yuan deposits if that money is earned outside China. Consequently, the banking system in China is funded by the high savings rate. The Chinese money supply has risen at a 22% rate this year.; however, this money is being funneled into loans by banks, and non-performing loans have risen significantly in 2003. These loans probably exceed $650 billion. Much of the money has been loaned to real estate developers for industrial development. Much of the development has been for U.S. companies, such as, GM. Under China’s commitments to the WTO, foreign banks must be allowed to enter China by 2004. Consequently, over the next three years, we must take positive action to push that banking system into a collapse. It won’t be difficult. Stop investing there. Stop buying their imports. Their economy will crumble. If that happens, their currency will be significantly overvalued.
In addition to the above- mentioned voluntary actions, our federal government must change its spending habits, and now. On an inflation -adjusted basis, total federal spending has grown 17% during the last three years. Non-defense discretionary spending (ex Social Security, Medicare, and Medicaid) has grown by 23.2% during the last three years. Therefore, our federal spending has risen to more than 20% of GDP. That must change immediately.
Nationwide, the number of local government jobs dropped by 19,000 last month, on a year-over-year basis. It was the first such drop since 1984. Last year, for example, Texas gained 44,000 jobs. Of that amount, 36,000 came from government hiring. During the same time, manufacturing employment in Texas fell by 33,100.
I don’t want you to believe that the U.S is the only country that needs to change its ways. British banking group HSBC said it would slash 4,000 jobs in England and Wales. Call centers in Birmingham, Brentwood, Sheffield, and Swansea would be closed and the jobs would be transferred to centers in China, India, and Malaysia. HSBC had previously announced laying off 1,400 workers in Britain by year-end.
Three American soldiers were killed and seven wounded in Karbala, Iraq. Those deaths mean a total of 197 U.S. soldiers have been killed by bombings, ambushes, and other hostile incidents since the declared end to major combat operations on May 1. It is no wonder that the survey conducted by the Stars and Stripes newspaper indicated that 34% of the troops described their morale as low, and 49% described their unit’s morale as low. Last week Bush said the military spirit was high. He is out of touch with the troops. According to a recent Results for America national opinion poll, 55% of Americans think the United States is either going in the wrong direction or has no direction at all. The poll concludes the majority of Americans believe their current political leaders are either “weak” or “very weak” as “problem solvers.”
Delphi Corp. will cut 5,000 jobs. For the week ended Oct. 4, the number of Americans claiming benefits after filing an initial claim climbed 58,000 to 3.67 million. Workers are having an increasingly difficult time finding new jobs.
Over the last 12 months, the core CPI has risen just 1.2%, the smallest since February 1966.
Thursday, October 16, 2003
10/16/03 Out Of Touch
About a dozen years ago, I would have a discussion about then President Bush Sr. and remark that he is out of touch with the people and just doesn’t get it. Unfortunately, I have the same feelings about his son. Mario Terpstra of Johnston, Iowa has never voted for a Democrat. He stated, however, “I don’t think Bush has a clue what the average guy goes through in life.” Dwaine Milliken, also from Johnston, asked “what’s going to happen to Social Security? And health insurance? We have Medicare, but that don’t cover it…It bothers me when troops have families here, have kids, and they’re gone for a year. That’s not right.” Phyllis Jobst has three grown children and works at a Target store in Des Moines. She relates “I see people working two or three jobs just to make ends meet.” Judy Anderson volunteers at a homeless shelter outside of Des Moines. She’s worried about money going towards Iraq rather than social programs in the U.S. June Causey lives in Jacksonville, Florida and worries about rising healthcare costs. Even with Medicare, she is facing a $2,200 hospital bill that she does not know how she will pay.
Veterans groups have been lobbying campaign to win dual benefits for all retired military personnel who are disabled. Presently, retirees who suffered their disabilities in combat on the battlefield are eligible for full dual benefits. Republicans and Democrats are joining forces to present a package that would extend dual benefits for the first time to some veterans whose disabilities are not combat-related, and this provision would be phased in over a decade, and eventually would cover individuals whose disabilities were rated 50% and higher. Under current law, disabled military retirees lose a dollar in retirement payments for each dollar they receive in disability compensation. This rule impacts 500,000 veterans. Bush has fought the estimated $58 billion in costs over the next decade. At the same time, he proposes spending $87 billion for Iraq’s reconstruction. In my view, a president should first take care of his own people. Our veterans have protected our country. Their well being should come first. If the president doesn’t support this proposed legislation, then he should re-evaluate his ability to be commander-in-chief.
In the September quarter, GM’s auto operations made $34 million versus $368 million in the year ago period; however, GMAC had a profit of $630 million, including $253 million from mortgage operations. GM made more money in the Asia-Pacific region (which includes China) than it did in North America. This is starting to sound like a familiar refrain.
The importation of pharmaceuticals has become a battleground. Humphrey Taylor, chairman of the Harris Poll, remarks “this is a very ugly issue for the pharmaceutical industry. As importation of drugs grow- and it looks set to grow a lot more- drug companies run a big risk of making more enemies as they fight to prevent importation. This would fuel the growing backlash against the industry.” In a Wall Street Journal/Harris Interactive poll, 77% of Americans surveyed said they think it is “unreasonable” for pharmaceutical companies to stop Canadian pharmacies from selling drugs over the Internet to Americans. A bipartisan group in the Congress is trying to include a drug-importation provision in the broad Medicare reform bill currently in committee.
Yesterday Filipino President Gloria Macapagal-Arroyo suggested that it was “critical” for Bush to understand “how closely related the war on terrorism is to the war on poverty.” She stated “there is no denying that poverty provides the breeding grounds for the recruitment of terrorists…if we are to win against terrorism and leftist agitators, President Bush has to win the war against poverty as well. They are inseparable. That is our highest priority.”
A “Coalition of Conscience” is a bipartisan group formed to roll back sections of the Patriot Act that they believe encroaches on civil liberties. Yesterday they introduced the Security and Freedom Ensured (SAFE) Act. It would limit “sneak and peek” search warrants, roving wiretaps, and library computers could not be searched without a court order. Nearly 200 communities have passed resolutions condemning the Patriot Act and refusing to comply with it.
Excluding autos, September’s retail sales rose 0.3%, and it was the weakest performance since May. Auto sales dropped 1.6%, the biggest decline since February. It is expected that sales of durable goods will be down in the quarter ending December 31.
For the 40 million Medicare participants, monthly premiums in 2004 will increase by 13.5% to $66.60. Some Medicare participants also will get a deductible increase in the portion of Medicare that pays for hospital stays, skilled nursing facilities and some home health care. The deductible will rise $36 to $867 next year.
John Antone, general manager for Intel’s Asia-Pacific region, stated yesterday that “we expect China to continue to grow to the point where it’s equal or larger than the U.S. as a consumption market by 2010.” Last year China became Intel’s number two market behind the U.S. According to International Data Corp., China is expected to sell 13 million PCs this year, eclipsing Japan’s 12.7 million units as the world’s number two PC market. By comparison, last year 47 million units were sold in the U.S. market.
Sony Music announced cutting 1500 jobs. Chicago Mayor Richard Daley stated hundreds of city job positions would be eliminated. On the other hand, IBM announced they would add 10,000 jobs next year. They said the new workers hired would be for services, software, and hardware operations in the U.S. and elsewhere. I will be blunt. I don’t believe that hiring number, and for many reasons. As recently as September, I mentioned that IBM had laid off engineers in the IT section of the company. IBM’s CEO Palmisano acknowledges “it is too early to say that a rebound is at hand” yet he is “confident that we will benefit from both a pick up in IT spending and an economic recovery.” The fact is the GDP grew at over 5% in the September quarter but IBM’s revenue gain was less than expected, and most of the gain came from the falling dollar and acquisitions rather than internal growth. The company fired employees to cut costs and improve profits. Even after the payroll cuts, IBM’s gross profit margins declined in the quarter. In my view, the company will continue to outsource, make acquisitions, and have little internal revenue growth. Thus, I doubt the hiring of 10,000 workers. IBM is the world’s biggest computer maker, and yet, they make a growing portion of their money from consulting services. As a matter of fact, computer hardware sales in the September quarter declined 1%.
About a dozen years ago, I would have a discussion about then President Bush Sr. and remark that he is out of touch with the people and just doesn’t get it. Unfortunately, I have the same feelings about his son. Mario Terpstra of Johnston, Iowa has never voted for a Democrat. He stated, however, “I don’t think Bush has a clue what the average guy goes through in life.” Dwaine Milliken, also from Johnston, asked “what’s going to happen to Social Security? And health insurance? We have Medicare, but that don’t cover it…It bothers me when troops have families here, have kids, and they’re gone for a year. That’s not right.” Phyllis Jobst has three grown children and works at a Target store in Des Moines. She relates “I see people working two or three jobs just to make ends meet.” Judy Anderson volunteers at a homeless shelter outside of Des Moines. She’s worried about money going towards Iraq rather than social programs in the U.S. June Causey lives in Jacksonville, Florida and worries about rising healthcare costs. Even with Medicare, she is facing a $2,200 hospital bill that she does not know how she will pay.
Veterans groups have been lobbying campaign to win dual benefits for all retired military personnel who are disabled. Presently, retirees who suffered their disabilities in combat on the battlefield are eligible for full dual benefits. Republicans and Democrats are joining forces to present a package that would extend dual benefits for the first time to some veterans whose disabilities are not combat-related, and this provision would be phased in over a decade, and eventually would cover individuals whose disabilities were rated 50% and higher. Under current law, disabled military retirees lose a dollar in retirement payments for each dollar they receive in disability compensation. This rule impacts 500,000 veterans. Bush has fought the estimated $58 billion in costs over the next decade. At the same time, he proposes spending $87 billion for Iraq’s reconstruction. In my view, a president should first take care of his own people. Our veterans have protected our country. Their well being should come first. If the president doesn’t support this proposed legislation, then he should re-evaluate his ability to be commander-in-chief.
In the September quarter, GM’s auto operations made $34 million versus $368 million in the year ago period; however, GMAC had a profit of $630 million, including $253 million from mortgage operations. GM made more money in the Asia-Pacific region (which includes China) than it did in North America. This is starting to sound like a familiar refrain.
The importation of pharmaceuticals has become a battleground. Humphrey Taylor, chairman of the Harris Poll, remarks “this is a very ugly issue for the pharmaceutical industry. As importation of drugs grow- and it looks set to grow a lot more- drug companies run a big risk of making more enemies as they fight to prevent importation. This would fuel the growing backlash against the industry.” In a Wall Street Journal/Harris Interactive poll, 77% of Americans surveyed said they think it is “unreasonable” for pharmaceutical companies to stop Canadian pharmacies from selling drugs over the Internet to Americans. A bipartisan group in the Congress is trying to include a drug-importation provision in the broad Medicare reform bill currently in committee.
Yesterday Filipino President Gloria Macapagal-Arroyo suggested that it was “critical” for Bush to understand “how closely related the war on terrorism is to the war on poverty.” She stated “there is no denying that poverty provides the breeding grounds for the recruitment of terrorists…if we are to win against terrorism and leftist agitators, President Bush has to win the war against poverty as well. They are inseparable. That is our highest priority.”
A “Coalition of Conscience” is a bipartisan group formed to roll back sections of the Patriot Act that they believe encroaches on civil liberties. Yesterday they introduced the Security and Freedom Ensured (SAFE) Act. It would limit “sneak and peek” search warrants, roving wiretaps, and library computers could not be searched without a court order. Nearly 200 communities have passed resolutions condemning the Patriot Act and refusing to comply with it.
Excluding autos, September’s retail sales rose 0.3%, and it was the weakest performance since May. Auto sales dropped 1.6%, the biggest decline since February. It is expected that sales of durable goods will be down in the quarter ending December 31.
For the 40 million Medicare participants, monthly premiums in 2004 will increase by 13.5% to $66.60. Some Medicare participants also will get a deductible increase in the portion of Medicare that pays for hospital stays, skilled nursing facilities and some home health care. The deductible will rise $36 to $867 next year.
John Antone, general manager for Intel’s Asia-Pacific region, stated yesterday that “we expect China to continue to grow to the point where it’s equal or larger than the U.S. as a consumption market by 2010.” Last year China became Intel’s number two market behind the U.S. According to International Data Corp., China is expected to sell 13 million PCs this year, eclipsing Japan’s 12.7 million units as the world’s number two PC market. By comparison, last year 47 million units were sold in the U.S. market.
Sony Music announced cutting 1500 jobs. Chicago Mayor Richard Daley stated hundreds of city job positions would be eliminated. On the other hand, IBM announced they would add 10,000 jobs next year. They said the new workers hired would be for services, software, and hardware operations in the U.S. and elsewhere. I will be blunt. I don’t believe that hiring number, and for many reasons. As recently as September, I mentioned that IBM had laid off engineers in the IT section of the company. IBM’s CEO Palmisano acknowledges “it is too early to say that a rebound is at hand” yet he is “confident that we will benefit from both a pick up in IT spending and an economic recovery.” The fact is the GDP grew at over 5% in the September quarter but IBM’s revenue gain was less than expected, and most of the gain came from the falling dollar and acquisitions rather than internal growth. The company fired employees to cut costs and improve profits. Even after the payroll cuts, IBM’s gross profit margins declined in the quarter. In my view, the company will continue to outsource, make acquisitions, and have little internal revenue growth. Thus, I doubt the hiring of 10,000 workers. IBM is the world’s biggest computer maker, and yet, they make a growing portion of their money from consulting services. As a matter of fact, computer hardware sales in the September quarter declined 1%.
Wednesday, October 15, 2003
10/15/03 Centrino
In October 2002 I suggested that the risk/reward for shares of Intel at $14 looked worth investigating on the part of investors. My reasoning was their new Centrino chip which would power laptop PCs, and hopefully, power stronger revenue generation. As it turned out, Centrino exceeded expectations; however, my analysis looked right but was only partially correct. I missed the real story where the most pleasing comparative results have taken place in Russia, China, and India. In essence, I was proven correct but should not be given too much credit. I will not make the same mistake twice and overlook the importance of emerging countries as they re-write the technology landscape.
The Bank of America plans to set up a subsidiary in India, and will cut costs by moving more jobs offshore. Elizabeth Wood, a bank spokeswoman, stated “it will help provide faster, high quality, less expensive solutions to our customers.” Does she mean American workers are slower? The move to India is scheduled for April, and it will result in job losses in the bank’s global operations; however, the number and location of those cuts haven’t been determined. You want me to believe that?
The Pension Benefit Guaranty Corp.’s deficit for 2003 rose to $8.8 billion from $3.6 billion registered in 2002, so said its director Steven Kandarian. He remarked it “is the largest in its history and is still growing.” Last week the House passed a bill allowing corporations to put $26 billion less into their retirement plans over the next two years. The vote in favor was 397 to 2. The private pension system covers about 44 million Americans. The PBGC is funded with insurance premiums paid by companies sponsoring pension plans. Kandarian went on to say that “if companies do not fund the pension promises they make, someone else will have to pay—either workers in the form of reduced benefits, other companies in the form of higher PBGC premiums, or taxpayers in the form of a PBGC bailout.” The PBGC estimates the private pension system is underfunded by more than $350 billion.
Illinois’ quarterly collections from corporate taxes fell 14% while individual income tax receipts declined 3%. Inheritance taxes fell 45%, and sales taxes were little changed. Moody’s analyst, Timothy Blake, said “in general, state taxes are lagging the national economy, and the economy isn’t doing that well.” Illinois has not raised taxes to balance the $5 billion budget deficit estimated for the state’s 2004 fiscal year. Instead, fees were raised, such as, on real estate sales. Aren’t fees another name for taxes?
Often, I have discussed the aging of our population as the most important trend in the U,S. Right behind that is the growth of singles as about 26% of our country presently lives alone. In 1940 less than 8% of Americans lived alone. According to the Census Bureau, there are 86 million singles, and half of our households are currently headed by unmarried adults. One-third of home buyers are single, with women buying houses at double the rate of men, according to the National Association of Realtors. Solo consumers probably represent an under-served market. The Bureau of Labor Statistics reports inequities in the workplace as single employees generally make less money than married workers, have a higher unemployment rate, and receive less compensation for benefits. Unmarried employees comprise more than 42% of the nation’s workforce. Singles also make up 35% of voters.
The annual revision for employment data is normally published by the Bureau of Labor Statistics in August. This year the revisions for 2002 will be released around December 10, the latest it has ever been. It will show that the BLS numbers have under-reported unemployment statistics for 2002. I have mentioned this under-reporting time and time again. The amount will be in the six figures. There is no question that a similar under-reporting is taking place in 2003. Naturally, those facts won’t be released until AFTER the next presidential election.
Germany has the largest economy among the countries participating in the euro currency. For the past two years their economy has grown by less than 1%. It should come as no surprise that a downward revision pegs their 2003 economy at a growth rate of 0.75 per cent. That is consistency at work. Next year is projected at between 1.5 and 1.75%. It is safe to say that future revisions will bring down that estimate.
Mike Rhoads, executive vice president of Blue Cross and Blue Shield of Oklahoma, states “our biggest competitor isn’t another insurance company. It’s the uninsured.” In Oklahoma, the percentage of uninsured is 18.3%, according to the Oklahoma State Department of Health, and that’s well above the national average of 14.6%.
In October 2002 I suggested that the risk/reward for shares of Intel at $14 looked worth investigating on the part of investors. My reasoning was their new Centrino chip which would power laptop PCs, and hopefully, power stronger revenue generation. As it turned out, Centrino exceeded expectations; however, my analysis looked right but was only partially correct. I missed the real story where the most pleasing comparative results have taken place in Russia, China, and India. In essence, I was proven correct but should not be given too much credit. I will not make the same mistake twice and overlook the importance of emerging countries as they re-write the technology landscape.
The Bank of America plans to set up a subsidiary in India, and will cut costs by moving more jobs offshore. Elizabeth Wood, a bank spokeswoman, stated “it will help provide faster, high quality, less expensive solutions to our customers.” Does she mean American workers are slower? The move to India is scheduled for April, and it will result in job losses in the bank’s global operations; however, the number and location of those cuts haven’t been determined. You want me to believe that?
The Pension Benefit Guaranty Corp.’s deficit for 2003 rose to $8.8 billion from $3.6 billion registered in 2002, so said its director Steven Kandarian. He remarked it “is the largest in its history and is still growing.” Last week the House passed a bill allowing corporations to put $26 billion less into their retirement plans over the next two years. The vote in favor was 397 to 2. The private pension system covers about 44 million Americans. The PBGC is funded with insurance premiums paid by companies sponsoring pension plans. Kandarian went on to say that “if companies do not fund the pension promises they make, someone else will have to pay—either workers in the form of reduced benefits, other companies in the form of higher PBGC premiums, or taxpayers in the form of a PBGC bailout.” The PBGC estimates the private pension system is underfunded by more than $350 billion.
Illinois’ quarterly collections from corporate taxes fell 14% while individual income tax receipts declined 3%. Inheritance taxes fell 45%, and sales taxes were little changed. Moody’s analyst, Timothy Blake, said “in general, state taxes are lagging the national economy, and the economy isn’t doing that well.” Illinois has not raised taxes to balance the $5 billion budget deficit estimated for the state’s 2004 fiscal year. Instead, fees were raised, such as, on real estate sales. Aren’t fees another name for taxes?
Often, I have discussed the aging of our population as the most important trend in the U,S. Right behind that is the growth of singles as about 26% of our country presently lives alone. In 1940 less than 8% of Americans lived alone. According to the Census Bureau, there are 86 million singles, and half of our households are currently headed by unmarried adults. One-third of home buyers are single, with women buying houses at double the rate of men, according to the National Association of Realtors. Solo consumers probably represent an under-served market. The Bureau of Labor Statistics reports inequities in the workplace as single employees generally make less money than married workers, have a higher unemployment rate, and receive less compensation for benefits. Unmarried employees comprise more than 42% of the nation’s workforce. Singles also make up 35% of voters.
The annual revision for employment data is normally published by the Bureau of Labor Statistics in August. This year the revisions for 2002 will be released around December 10, the latest it has ever been. It will show that the BLS numbers have under-reported unemployment statistics for 2002. I have mentioned this under-reporting time and time again. The amount will be in the six figures. There is no question that a similar under-reporting is taking place in 2003. Naturally, those facts won’t be released until AFTER the next presidential election.
Germany has the largest economy among the countries participating in the euro currency. For the past two years their economy has grown by less than 1%. It should come as no surprise that a downward revision pegs their 2003 economy at a growth rate of 0.75 per cent. That is consistency at work. Next year is projected at between 1.5 and 1.75%. It is safe to say that future revisions will bring down that estimate.
Mike Rhoads, executive vice president of Blue Cross and Blue Shield of Oklahoma, states “our biggest competitor isn’t another insurance company. It’s the uninsured.” In Oklahoma, the percentage of uninsured is 18.3%, according to the Oklahoma State Department of Health, and that’s well above the national average of 14.6%.
Tuesday, October 14, 2003
10/14/03 Three Strikes And Counting
On Saturday, 70,000 clerks walked out at 850 Ralphs owned by Kroger; Vons and Pavilion supermarkets owned by Safeway; and Albertson’s in Southern California. At midnight Monday grocery workers at 44 Kroger stores in West Virginia. Ohio, and Kentucky went on strike. Kroger is West Virginia’s fourth-largest employer, with about 5,100 workers statewide. In Missouri, about 10,000 union members have been on strike at the St. Louis area’s three largest grocery chains since Tuesday. Ninety six stores have been impacted in that region. As previously stated, the supermarkets want the union workers to share in health care costs. Greg Denier, a union spokesperson, stated “increased health premiums reduces low-wage employees to the poverty level…Unless this is addressed on a national level, there is going to be a crisis.” Greg, don’t worry. President Bush is in charge. The fact our country spends more on health care than we do on national defense. The Anderson School of Business at UCLA reported that health care expenses are the fastest growing sector of labor costs and the average annual premium for a family health insurance policy is now over $7,000. Harvey Sobel of Mellon Human Resources and Investor Solutions remarked that “you will see employers and unions in contentious fights for years to come. It’s hard to imagine it relenting.” Who are the winners in a strike? I can only think of WalMart as it gains market share. Besides expertise in logistics, distribution, and IT, WalMart is a nonunion company with lower labor costs as the wages and benefits for its employees run 25% lower than the comparable grocery clerk at Kroger, Safeway, and Albertson’s in Southern California.
Today mechanics for the third-largest public transportation system went on strike , and shut down buses and trains that an estimated 500,000 daily riders count on to get around Los Angeles County. It impacted 1,900 buses as well as light-rail and subway lines. It is the area’s second transit strike in three years. In 2000, the strike lasted for 32 days. The striking point is coping with soaring medical costs. The MTA pays nearly $17 million every year into the mechanics union’s health fund. The reserves in that fund are close to being dry. The MTA has accused the union of mismanaging the fund. The union wants greater contributions into the fund in order to offset rising health care costs.
In 1972 Congress eliminated co-payment for health care under Medicare legislation. The idea was to use home care as an alternative to the greater expense in nursing homes and hospitals. Thirty one years later the House and Senate negotiators are working on Medicare legislation which would impose co-payment on health care. They are considering a co-payment of $40 to $45 for each 60-day period in which a beneficiary receives home care. Medicare typically pays $2,700 to $3,000 for 60 days of home care. The co-payment proposal is being dubbed the “sick tax.” In actuality, great progress has been made in home health care costs. In 1997 it amounted to $17.5 billion, and in 2002 the amount had been reduced to $10 billion. Unfortunately, the man in charge listens to the CBO and that office predicts that annual spending for home care will triple in the coming decade to $32.9 billion in 2013. A proposal will be discussed to exempt low-income beneficiaries from the new co-payment. For the great majority, co-payment will become a reality in the new Medicare legislation. It is poor decision-making. There is a great cost benefit in home care over nursing homes and hospitals. The man in charge must have difficulty in reading comparative cost analysis. That may not be a popular course at Yale.
There is good news and bad news in telecommunications. The bad news is the phone companies are in trouble. The good news is on the consumer side. Have you heard of Niklas Zennstromm and Janus Friis? Have you heard of Skype? Only a million people know about it. That’s because it’s only been available for a month. I will give you a hint. It works best over broadband connections, and yes, as Pew Research Center says, it can reach only 16% of Americans at home. You need a headset. It’s a free download. It has a big advantage because the software and audio connections do not pass through central servers but rather through a peer-to-peer infrastructure. This winter Skype will make it possible for users to call people on regular telephones and not just through their computers. I believe Skype has real potential in the marketplace and for consumers. This service should transform the land-line telephone business. The consumer will benefit; however, the telephone companies will be in trouble and so will their workers.
Convergys Corp. opened two call centers in the Philippines and announced plans to open a third in 2004. Combined, the three centers will employ 3,100 workers, and will provide general support and technical help-desk services to Convergys clients. The investment in the Philippines is part of an effort to make the company’s global operations generate at least 30% of total revenue.
Yesterday’s attack in Tikrit brought to 96 the number of U.S. soldiers killed in Iraq since President Bush declared major combat operations over on May 1. Yes, President Bush is in charge.
WalMart is on target to generate 3 to 5 percent same-store sales growth in October; however, the company has not raised its quarterly earnings forecast, in part because of heavier-than-expected markdowns that trimmed profits. Some economists are cautious about the retail outlook. Richard DeKaser, chief economist for National City Corp. in Cleveland, remarked “we had explosive growth in consumer spending, and I don’t expect that to continue. Many of the goods they want to buy were bought this summer.”
On Saturday, 70,000 clerks walked out at 850 Ralphs owned by Kroger; Vons and Pavilion supermarkets owned by Safeway; and Albertson’s in Southern California. At midnight Monday grocery workers at 44 Kroger stores in West Virginia. Ohio, and Kentucky went on strike. Kroger is West Virginia’s fourth-largest employer, with about 5,100 workers statewide. In Missouri, about 10,000 union members have been on strike at the St. Louis area’s three largest grocery chains since Tuesday. Ninety six stores have been impacted in that region. As previously stated, the supermarkets want the union workers to share in health care costs. Greg Denier, a union spokesperson, stated “increased health premiums reduces low-wage employees to the poverty level…Unless this is addressed on a national level, there is going to be a crisis.” Greg, don’t worry. President Bush is in charge. The fact our country spends more on health care than we do on national defense. The Anderson School of Business at UCLA reported that health care expenses are the fastest growing sector of labor costs and the average annual premium for a family health insurance policy is now over $7,000. Harvey Sobel of Mellon Human Resources and Investor Solutions remarked that “you will see employers and unions in contentious fights for years to come. It’s hard to imagine it relenting.” Who are the winners in a strike? I can only think of WalMart as it gains market share. Besides expertise in logistics, distribution, and IT, WalMart is a nonunion company with lower labor costs as the wages and benefits for its employees run 25% lower than the comparable grocery clerk at Kroger, Safeway, and Albertson’s in Southern California.
Today mechanics for the third-largest public transportation system went on strike , and shut down buses and trains that an estimated 500,000 daily riders count on to get around Los Angeles County. It impacted 1,900 buses as well as light-rail and subway lines. It is the area’s second transit strike in three years. In 2000, the strike lasted for 32 days. The striking point is coping with soaring medical costs. The MTA pays nearly $17 million every year into the mechanics union’s health fund. The reserves in that fund are close to being dry. The MTA has accused the union of mismanaging the fund. The union wants greater contributions into the fund in order to offset rising health care costs.
In 1972 Congress eliminated co-payment for health care under Medicare legislation. The idea was to use home care as an alternative to the greater expense in nursing homes and hospitals. Thirty one years later the House and Senate negotiators are working on Medicare legislation which would impose co-payment on health care. They are considering a co-payment of $40 to $45 for each 60-day period in which a beneficiary receives home care. Medicare typically pays $2,700 to $3,000 for 60 days of home care. The co-payment proposal is being dubbed the “sick tax.” In actuality, great progress has been made in home health care costs. In 1997 it amounted to $17.5 billion, and in 2002 the amount had been reduced to $10 billion. Unfortunately, the man in charge listens to the CBO and that office predicts that annual spending for home care will triple in the coming decade to $32.9 billion in 2013. A proposal will be discussed to exempt low-income beneficiaries from the new co-payment. For the great majority, co-payment will become a reality in the new Medicare legislation. It is poor decision-making. There is a great cost benefit in home care over nursing homes and hospitals. The man in charge must have difficulty in reading comparative cost analysis. That may not be a popular course at Yale.
There is good news and bad news in telecommunications. The bad news is the phone companies are in trouble. The good news is on the consumer side. Have you heard of Niklas Zennstromm and Janus Friis? Have you heard of Skype? Only a million people know about it. That’s because it’s only been available for a month. I will give you a hint. It works best over broadband connections, and yes, as Pew Research Center says, it can reach only 16% of Americans at home. You need a headset. It’s a free download. It has a big advantage because the software and audio connections do not pass through central servers but rather through a peer-to-peer infrastructure. This winter Skype will make it possible for users to call people on regular telephones and not just through their computers. I believe Skype has real potential in the marketplace and for consumers. This service should transform the land-line telephone business. The consumer will benefit; however, the telephone companies will be in trouble and so will their workers.
Convergys Corp. opened two call centers in the Philippines and announced plans to open a third in 2004. Combined, the three centers will employ 3,100 workers, and will provide general support and technical help-desk services to Convergys clients. The investment in the Philippines is part of an effort to make the company’s global operations generate at least 30% of total revenue.
Yesterday’s attack in Tikrit brought to 96 the number of U.S. soldiers killed in Iraq since President Bush declared major combat operations over on May 1. Yes, President Bush is in charge.
WalMart is on target to generate 3 to 5 percent same-store sales growth in October; however, the company has not raised its quarterly earnings forecast, in part because of heavier-than-expected markdowns that trimmed profits. Some economists are cautious about the retail outlook. Richard DeKaser, chief economist for National City Corp. in Cleveland, remarked “we had explosive growth in consumer spending, and I don’t expect that to continue. Many of the goods they want to buy were bought this summer.”
Monday, October 13, 2003
10/13/03 Mighty Beanz
Many of my readers have children and grandchildren. Many will go shopping today. I thought it appropriate to recommend a value-oriented purchase, and one that has the capability of increasing in value as a collectible. Children are nuts for the Beanz. They sell for $5.99 a six-pack. They are small capsules with a bearing that make them shake and bob after being set down. Kids collect and trade them. A collection of Mighty Beanz is sought after by children. The North American distributor, Spin Master, expects to have holiday sales of $60 million this year and is projecting Mighty Beanz sales at $160 to $200 million next year. That’s revenue growth. It’s more than I can say for companies in the Nasdaq 100 and the S&P 500. Your downside risk is $5.99, and you will bring a smile to your child’s face. I only wish I owned the distributorship. Then again, I’d be listening to customer complaints about running out of Mighty Beanz on the shelves. I don’t have the patience for that.
The Commerce Department estimates, while online sales represented less than 2% of retail purchases last year, such sales grew at a rate of 26%.
Senator Richard Lugar, R-Indiana, is the chairman of the Senate Foreign Relations Committee. Yesterday on Meet The Press, he predicted American forces might have to be in Iraq in some capacity for eight years or more. In addition, he stated Iraq’s recovery would cost at least $50 billion more than the $87 billion that Bush has requested and is pending in Congress.
WalMart has 1.4 million employees, and close to half will leave in 2003. Employee turnover is one of the biggest problems facing WalMart. The average wage for a sales associate is $8.23 an hour. In addition to the low wage, health coverage is a massive problem. WalMart does not provide coverage to retirees. The company offers strong catastrophic coverage and some low-priced plans, but charges deductibles up to $1,000. I am not singling WalMart out. They just happen to be the largest employer in the private sector.
The matter of healthcare coverage in the workplace will be an important subject in the next presidential election. Over the past year, almost every labor dispute has focused on health benefits. Some workers postpone retirement in order to get better coverage for prescription drugs. How does one control employer costs and not hurt the employee? With the new auto pact, companies held the line on health benefits and, in return, the workers receive no wage increases for two years. Health premiums for businesses have risen at a double-digit clip for four straight years, and a similar rise is expected in 2004. Unfortunately, revenues have not grown at a similar rate and are not projected to do so in 2004.
There are 95 million Americans invested in mutual funds. Do they really know what those funds own? Do they really know anything about the individuals who manage those funds? Do they know what’s been charged to manage those funds? What do they know? Not very much is probably the answer. If your mutual fund experience is not satisfying, blame yourself. It’s time the public took some responsibility for the ineptness of the money managers. Vote with your money. Either the managers can hack it or give them their walking papers. Don’t settle for mediocrity. It’s too hard to earn the after-tax dollars, and too hard to save those dollars.
Many of my readers have children and grandchildren. Many will go shopping today. I thought it appropriate to recommend a value-oriented purchase, and one that has the capability of increasing in value as a collectible. Children are nuts for the Beanz. They sell for $5.99 a six-pack. They are small capsules with a bearing that make them shake and bob after being set down. Kids collect and trade them. A collection of Mighty Beanz is sought after by children. The North American distributor, Spin Master, expects to have holiday sales of $60 million this year and is projecting Mighty Beanz sales at $160 to $200 million next year. That’s revenue growth. It’s more than I can say for companies in the Nasdaq 100 and the S&P 500. Your downside risk is $5.99, and you will bring a smile to your child’s face. I only wish I owned the distributorship. Then again, I’d be listening to customer complaints about running out of Mighty Beanz on the shelves. I don’t have the patience for that.
The Commerce Department estimates, while online sales represented less than 2% of retail purchases last year, such sales grew at a rate of 26%.
Senator Richard Lugar, R-Indiana, is the chairman of the Senate Foreign Relations Committee. Yesterday on Meet The Press, he predicted American forces might have to be in Iraq in some capacity for eight years or more. In addition, he stated Iraq’s recovery would cost at least $50 billion more than the $87 billion that Bush has requested and is pending in Congress.
WalMart has 1.4 million employees, and close to half will leave in 2003. Employee turnover is one of the biggest problems facing WalMart. The average wage for a sales associate is $8.23 an hour. In addition to the low wage, health coverage is a massive problem. WalMart does not provide coverage to retirees. The company offers strong catastrophic coverage and some low-priced plans, but charges deductibles up to $1,000. I am not singling WalMart out. They just happen to be the largest employer in the private sector.
The matter of healthcare coverage in the workplace will be an important subject in the next presidential election. Over the past year, almost every labor dispute has focused on health benefits. Some workers postpone retirement in order to get better coverage for prescription drugs. How does one control employer costs and not hurt the employee? With the new auto pact, companies held the line on health benefits and, in return, the workers receive no wage increases for two years. Health premiums for businesses have risen at a double-digit clip for four straight years, and a similar rise is expected in 2004. Unfortunately, revenues have not grown at a similar rate and are not projected to do so in 2004.
There are 95 million Americans invested in mutual funds. Do they really know what those funds own? Do they really know anything about the individuals who manage those funds? Do they know what’s been charged to manage those funds? What do they know? Not very much is probably the answer. If your mutual fund experience is not satisfying, blame yourself. It’s time the public took some responsibility for the ineptness of the money managers. Vote with your money. Either the managers can hack it or give them their walking papers. Don’t settle for mediocrity. It’s too hard to earn the after-tax dollars, and too hard to save those dollars.
Sunday, October 12, 2003
10/12/03 Bullies Are Easy Prey
Yesterday I wrote about Russia and OPEC. Today the bully is crying. OPEC PresidentAl-Attiyah warned that crude oil prices might collapse next year. In Tokyo he stated “without help, mainly from Russia, we expect oil markets to face a lot of difficulties in the future. Non-OPEC should understand that 1999 is only four years ago. We have to learn from the past.” In 1998-1999 crude oil prices dropped to $10 a barrel. Al-Attiyah further remarked “we don’t just cut because we love to cut, we’re not psychopaths. We don’t want to kill barrels. This is related to markets. We’re forced to cut.” Bullies are easy prey. They are dead on arrival. Russia is producing about 9 million barrels a month, and that country is the world’s second largest oil exporter after Saudi Arabia. Yusufov, Russia’s oil minister, said it best when he related “our colleagues from OPEC consider $28 a barrel normal. We think it’s not. It’s too high. Low oil prices are bad for producers, but exceedingly high prices are bad for consumers in the U.S. and Europe.” OPEC thinks there is only one oil price and self-interest takes the front seat while importing nations pay their set price for supplies. Russia will undercut OPEC’s pricing and poison their arrogance. Another bully will be put to rest. I know of a mausoleum that’s for sale for $250,000 in Oakland, California.
George Bush Sr.’s memoirs are entitled “A World Transformed.” He explains why didn’t go after Saddam Hussein at the end of the Gulf War: “Trying to eliminate Saddam…would have incurred incalculable human and political costs. Apprehending him was probably impossible…We would have been forced to occupy Baghdad and, in effect, rule Iraq…there was no viable ‘exit strategy’ we could see, violating another of our principles. Furthermore, we had been self-consciously trying to set a pattern for handling aggression in the post-Cold War world. Going in an occupying Iraq, thus unilaterally exceeding the United Nations’ mandate, would have destroyed the precedent of international response to aggression that we hoped to establish. Had we gone the invasion route, the United States could conceivably still be occupying power in a bitterly hostile land.”
Some time ago I wrote about the growing demand for soy milk. Today I will take a look at another growing market for soybeans, and one that is coming to your neighborhood. Soy complex combined with vitamin E can help diminish the appearance of wrinkles and age spots, and is being combined in moisturizer creams. In other words, you might find these ingredients in creams promoted to prevent premature aging. Most of the large cosmetic companies have, or will have, soy-based lines of products.
IMF Deputy Director Shigemitsu Sugisaki told the World Form East Asia in Singapore “it’s hard to tell where the appropriate exchange rate is” for the Chinese yuan…”it’s difficult to find a persuasive case that the renminbi (yuan) is substantially undervalued.”
Another subject I have touched on is the tax deduction for vehicles that weigh 6,000 pounds or more. Originally they were intended for farmers and other small businesses that needed large vehicles, and not for the ‘Hummer crowd.’ At the beginning of 2003 the amount of the deduction was $25,000 but it was raised this past summer to $100,000 as part of the economic stimulus package. The Senate Finance Committee voted this month to cut the amount small businesses can deduct for buying an SUV weighing 6,000 ponds or more from $100,000 back to $25,000. Some lawmakers want the entire tax deduxtion repealed.
In the Newsweek poll taken Thursday and Friday, 50% of voters don’t want to see him re-elected to a second term while 44% support his re-election.
Yesterday I wrote about Russia and OPEC. Today the bully is crying. OPEC PresidentAl-Attiyah warned that crude oil prices might collapse next year. In Tokyo he stated “without help, mainly from Russia, we expect oil markets to face a lot of difficulties in the future. Non-OPEC should understand that 1999 is only four years ago. We have to learn from the past.” In 1998-1999 crude oil prices dropped to $10 a barrel. Al-Attiyah further remarked “we don’t just cut because we love to cut, we’re not psychopaths. We don’t want to kill barrels. This is related to markets. We’re forced to cut.” Bullies are easy prey. They are dead on arrival. Russia is producing about 9 million barrels a month, and that country is the world’s second largest oil exporter after Saudi Arabia. Yusufov, Russia’s oil minister, said it best when he related “our colleagues from OPEC consider $28 a barrel normal. We think it’s not. It’s too high. Low oil prices are bad for producers, but exceedingly high prices are bad for consumers in the U.S. and Europe.” OPEC thinks there is only one oil price and self-interest takes the front seat while importing nations pay their set price for supplies. Russia will undercut OPEC’s pricing and poison their arrogance. Another bully will be put to rest. I know of a mausoleum that’s for sale for $250,000 in Oakland, California.
George Bush Sr.’s memoirs are entitled “A World Transformed.” He explains why didn’t go after Saddam Hussein at the end of the Gulf War: “Trying to eliminate Saddam…would have incurred incalculable human and political costs. Apprehending him was probably impossible…We would have been forced to occupy Baghdad and, in effect, rule Iraq…there was no viable ‘exit strategy’ we could see, violating another of our principles. Furthermore, we had been self-consciously trying to set a pattern for handling aggression in the post-Cold War world. Going in an occupying Iraq, thus unilaterally exceeding the United Nations’ mandate, would have destroyed the precedent of international response to aggression that we hoped to establish. Had we gone the invasion route, the United States could conceivably still be occupying power in a bitterly hostile land.”
Some time ago I wrote about the growing demand for soy milk. Today I will take a look at another growing market for soybeans, and one that is coming to your neighborhood. Soy complex combined with vitamin E can help diminish the appearance of wrinkles and age spots, and is being combined in moisturizer creams. In other words, you might find these ingredients in creams promoted to prevent premature aging. Most of the large cosmetic companies have, or will have, soy-based lines of products.
IMF Deputy Director Shigemitsu Sugisaki told the World Form East Asia in Singapore “it’s hard to tell where the appropriate exchange rate is” for the Chinese yuan…”it’s difficult to find a persuasive case that the renminbi (yuan) is substantially undervalued.”
Another subject I have touched on is the tax deduction for vehicles that weigh 6,000 pounds or more. Originally they were intended for farmers and other small businesses that needed large vehicles, and not for the ‘Hummer crowd.’ At the beginning of 2003 the amount of the deduction was $25,000 but it was raised this past summer to $100,000 as part of the economic stimulus package. The Senate Finance Committee voted this month to cut the amount small businesses can deduct for buying an SUV weighing 6,000 ponds or more from $100,000 back to $25,000. Some lawmakers want the entire tax deduxtion repealed.
In the Newsweek poll taken Thursday and Friday, 50% of voters don’t want to see him re-elected to a second term while 44% support his re-election.
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