Elaine Meinel Supkis
Anyone who imagines the Federal Reserve gives a rat's ass about workers should look at the latest press release by the Federal Reserve. Compared to the Nanny State coddling of insane, wild financiers who bankrupt the entire world's banking systems, the Fed feels that US workers should just suck it up and accept free trade as a great bargain: they get to shop at Walmart during the first half of the month and buy cheap stuff from all over the world and the rest of the time, they can work nonstop to barely survive.
Southern U.S. states should improve workers' skills to compete in the global economy rather than look to trade restrictions for protection, three Federal Reserve bank presidents said today.
Barriers to commerce can backfire and hurt the economy as overseas partners retaliate by imposing their own restrictions against U.S.-made goods, the Fed chiefs from Dallas, St. Louis and Atlanta told a meeting of the Southern Governors' Association in Biloxi, Mississippi, today.
Incredible, isn't it? In every story about the goon squad running America, their solution to all the problems assailing the working class is to 'retrain.' Never, do they mention, what one should learn. Dog grooming? Businesses and banks only care about themselves but the Federal government is supposed to worry about the entire nation. Since this is their main job, they should be concerned about the trade deficit which has soared in the last 20 years from $50 billion a year to nearly $800 billion a year. Since this is totally, hopelessly unacceptable for any nation to allow, it is the duty, the PRIMARY RESPONSIBILITY of the Federal government. No matter how loud the wails of the bankers and the importers, the government of the USA should be relentlessly reducing this deficit.
Instead, they trot around America telling us they intend to make things worse! The limits to 'free trade' fall faster and faster and are an increasing danger to our nation. This, above all things, is at the root of our financial break down which is approaching closer and closer as we do the same stupid things over and over.
On top of this there is the logic of the US government working with the Republicans to destroy worker's rights. The American South was allowed to have some of the most stupid laws on earth that they called 'The Right To Work' which was a quasi-slave rule that meant jobs could be set up in states that didn't protect unions but made unions impossilbe. For a long while, the jobs moved from the protected North to the quasi-slave states of the South. Wages in the depressed South rose thanks to this but the work was valued this way only because wages were higher in the North. As soon as the unions in the North were killed by internal competition, the end of high wages in the South loomed.
Since Reagan destroyed the ability of any unions in America to strike by allowing and protecting strike breakers, the ability of unions to gain wage hikes has collapsed. Wages of the bottom 2/3rds of Americans have not only not kept up with inflation this last 20 years, it has fallen behind. The South laughed at the North as factories closed in the North and opened in the South but years ago, I warned them this was going to continue. Back in 1992, Ross Perot talked about the 'Giant Sucking Sound' of jobs moving to Mexico and Central America. He was treated as an alien and was chased off the political stage as his attempt at building a new party collapsed. Then Clinton suddenly passed NAFTA and the jobs not only flowed out of America at a high speed, since NAFTA, illegal aliens have flooded into the USA and wages fell even faster.
Why did the North fight the South concerning slavery in the first place? The formation of the Republican party was based on fighting slavery because it lowered wages of all workers and free land, the 40 acres and a mule business that was used to open the Great Plains. Lincoln was the first Republican President and was assassinated. Grant then shifted the party from populism to the business/Wall Street class. They, in turn, let in a flood of Europeans to lower wages. But within this flood came a flood of political activists mostly from Germany, Ireland and Italy. They, in turn, turned up the heat and began a long series of strikes, union organizing and fighting with troops and goon squads for things we take for granted such as a limit to the hours worked, minimum wages, benefits like vacations, health care, etc. The things we are rapidly losing now that unions are dead.
Thank you, Federal Government.
To set the record (and the name) straight, right to work for less doesn’t guarantee any rights. In fact, by weakening unions and collective bargaining, it destroys the best job security protection that exists: the union contract. Meanwhile, it allows workers to pay nothing and get all the benefits of union membership. Right to work laws say unions must represent all eligible employees, whether they pay dues or not. This forces unions to use their time and members’ dues money to provide union benefits to free riders who are not willing to pay their fair share.
Right to work laws lower wages for everyone. The average worker in a right to work state makes about $5,333 a year less than workers in other states ($35,500 compared with $30,167). Weekly wages are $72 greater in free-bargaining states than in right to work states ($621 versus $549). Working families in states without right to work laws have higher wages and benefit from healthier tax bases that improve their quality of life.
Once upon a time, the quasi-slave states were much cheaper places to live than in the North. This has ceased to be true for some time. Indeed, it is cheaper to live in Detroit than in the places where the new factories are scattered. Indeed, the scattering of factories in various sleepy towns across the South was deliberate and malicious. This way, it is nearly impossible for united action against giant global powers that run whole nations, the biggest example being Toyota. They are quasi-rulers of wherever they park their factories and they have a deliberate program to keep unions out while at the same time, keeping production in their American factories at exactly 60% of the cars sold here so they can pour in 40% of their sales without intereference from anyone putting tariffs or barriers up to stop this flood of Japanese value-added exports to America.
More than 40 states are destroying jobs by contracting out state-funded work to companies that ship the jobs overseas. According to a recent study by University of California-Berkeley, the United States could lose as many as 14 million white-collar jobs as a result of the new outsourcing trend, and workers fortunate enough to hold on to their jobs will see decreasing wages and benefits as companies try to keep pace with low-wage countries.
In New Jersey, Acting-Gov. Richard J. Codey (D) signed into law May 5 legislation that ensures taxpayers’ dollars are used to create jobs by requiring contractors who win state service contracts to do that work in the United States.
Aside from the folly of suggesting blue collar workers become white collar workers, white collar jobs were first undermined by bringing in a huge number of foreign workers in the intellectual fields then the manufacturers and the lawyers, etc. all demanded the right to outsource office work to save money so they can have huge fees for themselves while the overhead could vanish into India or Eastern Europe. So now all our jobs except for ones requiring physical labor here, vanished faster and faster. Of course, the Federal Government, deep in debt because the taxes it collects on workers seeing no more wage hikes, doesn't care about all this, evidently.
I saw in the news today, our soldiers being hired this year are all opting for the extra $20,000 bonus if they decide to go to Iraq fast without much training. That hell hole of a war is eating us up financially and spiritually. There are still 'volunteers' due to the lack of opportunity at home. On top of this, the deficit rises higher and higher as the costs of this insane war rage out of control because this isn't a business, they don't care if this cost us an extra $1 trillion, who cares? After all, the World Banks of the Empire in Europe and the US just created a whopping $500 billion in two weeks just to prime the pumps or--heh---pimp the prostitutes---within the collapsing banking system. Which is based, ultimately, on the ability of workers to save money! The problems we are seeing are imperial in nature and identical to the same problems that dragged the United Kingdom's empire under back about 100 years ago.
South Korean citizens' credit card spending in foreign countries jumped to a new high in the second quarter of 1.5 billion U.S. dollars, the Bank of Korea (BOK) said Friday.
According to the central bank, overseas credit card spending by South Koreans in the April-June period rose 31.1 percent from a year earlier. The number of credit card users abroad advanced 39.3percent year-on-year to 2.3 million.
"The rise is attributable to a sharp increase in the number of residents going on overseas trips and the won's gain against the greenback," said a statement by the BOK.
For some time, it seems to me that South Korea has given up on the race to play the financial games Japan and China are engaged in. Proof of this is, the won is rising in value. They get the brief joy of travelling all over the place and spending money like crazy and getting easy debts but this is a trap! The lesson Japan learned when they suddenly raised the value of the yen due to the Plaza Accords when the US tried to lower the value of the world's top currency, the dollar, was simple. The Japanese spending boom and rise in value of all assets and rise in debts due to the strength of their currency killed their trade surplus with not only the USA but the world! This caused a depression.
They are well out of that depression but it is so useful, they keep on pretending it is raging out of their control. This reminds me of a true story: I used to live in NYC and bicycled all over the city. People walking the streets would ignore the lights and the bikes. If I wanted to go through an intersection and there was no cars and the light was green, people would force me to stop anyway. So I got in the habit of yelling, 'I can't stop!' as I went past as people stood aside. One day, a man yelled, 'Hey, you are peddling uphill!' Heh. I yelled, 'My legs can't stop!'
Japan is screaming they can't stop as they madly peddle uphill. Why any adult who supposedly is in charge of finances falls for this, baffled me for one second. Then I remember who benefits: the very rich in America and Europe. They are PUSHING the Japanese bike uphill! While screaming to us, they are trying to stop it. This is called 'the Carry Trade.'
South Korea just gave up the fight with China and Japan and is now following the footsteps of the USA/UK empire and is simply, like Europe which is a weak satellite state of the USA/UK empire and will let Japan and China strenghten their currency while the yen and yuan fall in value. Ah well. I hope they enjoy this little period of happy shopping. Because the next act is a depression. This is the new rule for modern trade.
Japan, ASEAN Reach FTA; Tokyo To Repeal 90% Of Tariffs Soon
MANILA (Kyodo)--Japan and the Association of Southeast Asian Nations reached a free trade agreement Saturday, under which Tokyo will immediately repeal tariffs on 90 percent of imports from ASEAN by value to catch up with China and South Korea in intensifying regional FTA races.
This is Japan's eternal promise: they want free trade, they need free trade, they will have free trade...one way only! If they import anything, it is raw materials, food and fuel. And they hate this. Value-added goods must come from Japanese-owned factories, for example. This way, they still get the profits. What the poor trade partners of Japan will discover are two things: Japan won't let its own people consume or go into debt and Japan won't allow direct competition if there is a Japanese business of any sort that might be endangered by trade. They will use all sorts of funny schemes to prevent trade.
Japan is the biggest and most powerful Asean partner, accounting for 12% of the bloc's world trade in 2006. The competition between Japan and China over leadership issues is rising. When China announced it would take over the moon, the US boasted we would do this too but this has obviously vanished into thin air as we misspend our money fighting Iraqis. But Japan suddenly announced last week, they would take over the moon and I suppose, build a Toyota factory there. Whatever China wants, Japan wants too. And note that both have huge FOREX reserves. Unlike the West which relies on printing money and creating inflation, the Asian giants have the reverse.
TOKYO (Nikkei)--Japan exported 1.13 million used vehicles in 2006, nearly 20% more than a year earlier and topping 1 million units for the first time ever, and the uptrend is continuing so far this year, according to the Japan Used Motor Vehicle Exporters Association.
Not that they are EXPORTING used cars! I hooked up to stats from the Bank of Japan. And guess what? Car ownership in Japan is falling! And this is because the workers there aren't able to get loans. So, used cars aren't sold in Japan, they go to the rest of Asia.
French food conglomerate Danone is embroiled in a bitter dispute with a Chinese joint venture partner. The quarrel reveals just how fragile business deals in China still are today.
The Chinese protestors headed straight for the Portman Ritz Carlton, a Shanghai luxury hotel. They wore yellow caps and yellow shirts, and they were carrying huge protest banners that read, in blood-red characters: "Traitors and watchdogs will come to no good," and "We want Chairman Zong. Under no circumstances do we want Danone."
The Chinese are very interesting. They can have sudden political moments. They are very patriotic. America is filled with immigrants who come here for financial advantage (the freedom issue is increasingly non-operative) but we have severe loyalty problems. So severe, at the top, loyalty is nonexistent. China's population is native, not immigrant. So they don't have the problems of dual loyalties such as the US. Our top offices are filled with dual-citizens swearing fealty to another nation above the US. And it shows.
The yen fell for a fourth day against the dollar and the euro as a rebound in global stocks suggested investors are willing to take on riskier investments funded by loans in Japan.
The yen has declined against all 16 most-active currencies since Aug. 17, when it reached the strongest in more than a year versus the dollar, as investors bought back higher-yielding assets in so-called carry trades. Japan's Nikkei 225 Stock Average rose 1.4 percent in the first 10 minutes of trading and Australia's S&P/ASX 200 Index gained 1.7 percent.
``The yen will head south,'' said Saburo Matsumoto, senior manager of foreign exchange sales at Sumitomo Trust & Banking Co. in Tokyo. ``Rising share prices are likely to give further momentum to the yen carry trade.'"
The Bank of Japan planned for the yen to be 130 to the dollar by October. It got stronger to their tremendous rage. Now it is heading back to the place they wanted it. As the US weakens, they have to drop the value of the yen in order to keep the misaligned economic system going. As the dollar weakens, they must weaken the yen even more. This insanity would end swiftly if the US forced Japan to stop but the whole point of pouring in those hundreds of billions of dollars last week was to KEEP this going! Amazing, isn't it? The traitors running ad ruining America want this to continue, it is making them filthy rich.
Japanese stocks advanced after economic reports from the U.S. relieved concern the subprime mortgage crisis will curb growth in the world's biggest economy.
Komatsu Ltd. paced gains by exporters after a report showed sales of new homes in the U.S. unexpectedly rose in July and durable goods orders climbed more than expected. Mitsui O.S.K. Lines Ltd. led companies most sensitive to the global economy higher.
They need our stupid and useless housing boom to continue. They want us to have super-low interest rates! In Japan, rates are much, much, much lower but has this caused a housing boom? No? HAHAHA. Of course not. No matter how low the loan, if the Bank of Japan won't let anyone access these loans, they don't get them! How simple. And note their glee over the news that the US government is conspiring with them to reset the dangerous trade mess that is unsustainable and is eating up our empire! When will we learn, all the 'good' economic news is TERRIBLE ECONOMIC NEWS!
``The U.S. is helping stock markets globally to calm down after a temporary panic that had money fleeing from stocks,'' said Norihiro Fujito, a senior strategist at Mitsubishi UFJ Securities Co. in Tokyo. ``Japan is also a beneficiary of this development, while the weakening yen provides another boost.''
They now openly boast about weaking the yen! How obvious can it all be? How dare the traitors running America ignore this! Why aren't our media yelling about this and who owns our medai, foreigners or Americans? HAHAHA. Yup. We know the truth about that! Japan benefitted from the US pouring hundreds of billions via the magic printing presses in the Federal Reserve. And Japan intends to use this as a sword in our stomachs as Japan disembowels our economy.
Komatsu, the world's second-largest maker of construction machinery, jumped 80 yen, or 2.3 percent, to 3,590. Toyota Motor Corp., the world's largest automaker by market value, advanced 90 yen, or 1.4 percent, to 6,750. Mitsui O.S.K., Japan's second- biggest shipping line operator, rose 37 yen, or 2.3 percent, to 1,656.
The shipping will increase. Toyota will take over the moon. And Caterpillar will collapse. Thank you, everyone at the top, for a job well done. You saved Japan. Banzai! Banzai! Banzai!
Japanese consumers will likely pay more for noodles and breads this autumn as food producers pass along the effects of a government price increase that will raise the price of wheat supplied to domestic flour mills, according to reports Monday.
The price increase, announced by Japan's Agriculture, Forestry and Fisheries Ministry Friday, comes as poor weather in major producing nations has resulted in shortfalls, sending near-term wheat futures on the Chicago Board of Trade to an all-time high last week.
The price hike is the second by the ministry so far this year and follows a 1.3% rise in April, its first increase since 1983, according to reports.
The Japanese government buys wheat and other grains under an international trading system and resells them to local millers at a fixed price.
Remember the hypnotism: there is no inflation in Japan, there is no infaltion in Japan, there is no...oh hell! Inflation in Japan!!!!! The lie is obvious. As inflation soars, the Fortress Japan rulers will crush someone to bring it back to zero. Who will die for this? Also, note how free the trade is! The price of wheat is kept at whatever level the government rules! So the price is set..by the goverment, not competition! The government won't let free trade determine prices!
The Japanese government hates free trade and they hate the yen. And increasingly, the Japanese people hate this ruling clique.