Tuesday, August 16, 2005

SPENDING LIMITS

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CNN Oil tanker "Pestige" sinking off the coast of Spain

By Elaine Meinel Supkis

This week, Abramoff, friend of Bush and DeLay, the extrordinary lobbyist, has been indited and will face trial for corruption. One of his pet schemes was to milk money from off shore corporate entities who wanted a false "grass roots" front for changing laws forbidding government contracts to traitor American companies that use tax havens as fronts so they can avoid supporting the government which they want money from.

From the Washington Post:
Washington lobbyist Jack Abramoff, an associate of several influential GOP figures, appeared in federal court Friday on wire fraud and conspiracy charges and was released on $2.25 million bond.

Abramoff and a partner were indicted Thursday by a grand jury in Florida on charges they misled lenders and forged a key document used to obtain loans for the 2000 purchase of a casino boat venture.

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Here is a typical gambling boat, stranded by the drought (from the NYT). Note the lack of windows. It is a floating box used like a great trap, a parasite that eats money and spits out crime. Bankruptcies erupt all around these fly traps. Abramoff worked hard to infest America with these things. This is also what got him into trouble.
The judge also told Abramoff he needs to maintain his "course of mental health treatment."
His brain isn't malfunctioning, it is his morals. There are no pills or treatment for this disease. His willing partners in crime, much of the GOP leadership, they are the ones who need to see a psychiatrist.

Read more at the DCCC website.

From Counterpunch:
On Monday, I reported that the US, formerly a superpower until afflicted with "new economy" syndrome, has lost so much manufacturing capability that it can scarcely produce one submarine every two years and one aircraft carrier every five years. US manufacturing capability is so reduced and shrinking so fast that the president of the American Shipbuilding Association recently said that in the next several years "more and more manufacturing of ship components and systems will migrate to China."

Not to worry say free trade economists. Shipbuilding is just one of those old manufacturing things that the nanotech US economy is better off without. Alas, according to Manufacturing & Technology News (July 8), so much manufacturing capability has already left the US that American nanotechnology capability is largely limited to pilot-scale, low-volume manufacturing.

In testimony before the House Science Subcommittee on Research, Matthew Nordan of Lux Research, Inc., said that any American nanotech ideas are likely to "be implemented in manufacturing plants on other shores."
I have detailed this process here. I noted the other day how all the top corporations hired the same Chinese man to "ease" their way through the communist party's headquarters and he always ended up sucking virtually all the companies' work into China, leaving the empty husk for a new victim. Now he is being sued...for leaving Cisco Systems after he tried to move 80% of the work to China. So they moved only 40% and he quit to find a new victim.

We get empty boxes that suck out money and produce crime for vibrant businesses.

From Yahoo:
Wal-Mart Stores Inc. struggled in the second quarter and offered a disappointing third-quarter profit forecast, again blaming higher gasoline prices for cutting into spending plans by its low-income shoppers. In contrast, shoppers at moderate-price department store retailer J.C. Penney Co. Inc., focused on fashion rather than fuel, resulting in robust results and an upbeat outlook.

Still, while Penney's consumers have managed to absorb higher prices at the pump so far, the retailer warned that could change if prices keep rising.
The big boxes that suck out money and give crummy junk in return are struggling to get their share of the money the boxes that suck up money and spit out crime are eating. The people who can still afford to go shopping for barely useful stuff do so because up until this week, their houses were still operating as ATM machines but the rise in interest rates and the rise in the rate of inflation is killing the bouyant housing market that was, like Japan's in the eighties, a big boon but also a giant trap.

In six months, JC Penny and Target will be wailing as they cut prices and see no profit, like the auto dealers, as things collapse.

From Xinhuanet:
The World Bank said Tuesday China's economy is expected to grow by 9 percent in 2005, and about 8 percent in 2006.

In its quarterly update on the country's economy, the China mission of the World Bank said the economic outlook for China "remains good" in a stable macroeconomic environment and with favorable financial conditions.

"We now project (China's) GDP (gross domestic product) growth of 9 percent in 2005, and about 8 percent in 2006," the bank said in the report released in Beijing Tuesday.

The bank based the projection partly on global economic factors, saying the growth in world economic activity and trade is projected to slow during the rest of 2005.

"World trade growth is now expected to slow from 12 percent in 2004 to 6.4 percent in 2005, which is likely to affect China's export growth."
The Chinese say world trade will fall 50%? Excuse me, but guess what that means for us? We are 50% of world trade, more or less, you know. So the Chinese are expecting trade with us to fall a great deal, don't they? They have been working on developing a domestic market, unlike the Japanese who need us since we are more than double the Japanese population but with China it is reversed: they outnumber us and are more interested in internal markets than the Japanese who are reaping the bad side of their own economic dependence on shipping to the US rather than internal shopping.

China, unlike Japan, also can expand easily since it isn't an island. It is very much like us in many ways. Which is why we were fools to ship all our economy over there. They, unlike the Japanese, are not militarily occupied by the USA and they have no burdens of keeping bases running all over the planet and fighting peasants hither and yon.

The American DOW index has been bouncing against the 10,600 ceiling for quite a while but now it seems, investors are heading for the hills, seeking some haven in this gathering storm.

Oh, and did you see Bush boasting that we will be only $300 billion in the hole this year? Whoopee. Of course, these numbers presume many things like no more votes for more war money, and if you find that believable, I have a dead ox carcass you can buy, cheap.

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