You see the way the economy is tanking and bringing the lives of many average Americans down because of a purposely created financial house of cards. I have tried numerous times to get people to realize it was going to cave and that it was set up for Bush by Allen Greenspan. I will spare you what I wrote on it but Michael Whitney articulated it wee over a year ago with The Second Great Depression At the same time the economy is tanking oil prices are being allowed to skyrocket affecting 100% of every aspect of our lives as you are all experiencing. As of yet I have been posing the question of how High the prices will go before many can no longer afford to drive to work and American Demographics are drastically changed as a result! in response to yesterdays story Larry sent me a story that seems to be the beginning of the end for most Americans flying and it brought this whole mess full circle for me knowing Bush is allowing things to happen in this country until he can find an excuse to take total control of our America and stay in Power. Anyway first the story:
* Fuel suppliers demand airlines pay cash in advance By Carl Mortished and Amanda Andrews : Airlines are being forced to pay cash in advance for jet fuel as the major oil companies tighten the screws on an industry that is being crushed by an extraordinary surge in the price of crude oil. Sources within the airline industry indicate that credit is being denied to most of the leading American carriers and the practice is moving to Europe and Asia. So uncertain is the cash solvency of the industry that jet fuel suppliers insist on prepayments into special bank accounts. A credit controller at a leading European multinational oil company told The Times that the oil industry was moving to jet fuel prepayment. “It’s common in the US and it is moving to Europe. We have been moving to prepayment since Swissair went bust.” The need to put up money before delivery of fuel is a huge financial burden that has been shifted from the oil companies to the airlines. According to John Armbrust, a US jet fuel consultant, the oil industry had $5 billion (£2.5 billion) of jet fuel credit outstanding to airlines before the 9/11 terrorist attacks. Now they are demanding that airlines leave cash on deposit.
“The airlines can’t afford it. Traditionally, oil companies extended credit for 14 or 21 days and some as long as 30 days. Now, most American airlines are on prepay. South West is one of a few likely to still get credit.” The extent of the cash squeeze was highlighted last week when American Airlines said that it would charge $15 per bag checked even as it revealed plans to shed 75 aircraft, shrinking the airline’s capacity by 12 per cent. The price of jet fuel has risen by 60 per cent since January and American Airlines paid $665 million more for fuel in the first quarter of this year than in the same period of 2007. The credit crunch is likely to worsen and a number of financial institutions will fail, according to research from Atradius, the credit insurance group which conducted a global survey of its customers’ views of the financial outlook. Although Atradius said that companies expect the number of failures to be small, about 65 per cent expect there to be failures.
The group added that direct exposure to sub-prime lending is higher in Europe than in the United States even though the bulk of the sub-prime mortgage defaults are in the US and many of the securities these loans are packaged into would have originated from US-based mortgage companies.
“Some explanation for this may be investments by European companies in US securities offering higher returns and more frequent use of secondary financial markets to securities receivables by European countries,” it said. Atradius added that only 12 per cent of companies across the world do not expect an economic slowdown in the next year. In Britain, more than 90 per cent of companies surveyed expect a slowdown, the highest percentage. About one in six companies expects a slowdown of only the national economy; a quarter expect a slowdown of the global economy and half expect a slowdown of both. The expectation of a slowdown is also high in Mexico, the United States, Spain, Italy, France and Belgium and lowest in Sweden and the Netherlands.
“The airlines can’t afford it. Traditionally, oil companies extended credit for 14 or 21 days and some as long as 30 days. Now, most American airlines are on prepay. South West is one of a few likely to still get credit.” The extent of the cash squeeze was highlighted last week when American Airlines said that it would charge $15 per bag checked even as it revealed plans to shed 75 aircraft, shrinking the airline’s capacity by 12 per cent. The price of jet fuel has risen by 60 per cent since January and American Airlines paid $665 million more for fuel in the first quarter of this year than in the same period of 2007. The credit crunch is likely to worsen and a number of financial institutions will fail, according to research from Atradius, the credit insurance group which conducted a global survey of its customers’ views of the financial outlook. Although Atradius said that companies expect the number of failures to be small, about 65 per cent expect there to be failures.
The group added that direct exposure to sub-prime lending is higher in Europe than in the United States even though the bulk of the sub-prime mortgage defaults are in the US and many of the securities these loans are packaged into would have originated from US-based mortgage companies.
“Some explanation for this may be investments by European companies in US securities offering higher returns and more frequent use of secondary financial markets to securities receivables by European countries,” it said. Atradius added that only 12 per cent of companies across the world do not expect an economic slowdown in the next year. In Britain, more than 90 per cent of companies surveyed expect a slowdown, the highest percentage. About one in six companies expects a slowdown of only the national economy; a quarter expect a slowdown of the global economy and half expect a slowdown of both. The expectation of a slowdown is also high in Mexico, the United States, Spain, Italy, France and Belgium and lowest in Sweden and the Netherlands.
* Weasel Dog pointed out growing Airlines Bankruptcies which will help in Bush's end goal! Airline Bankruptcies would also bring another bailout for us. What I was thinking about is that Knowing Bush's oil connections Sending me this just turned on a light bringing everything that is happening full circle. Leaving Bush once again to appear the hapless victim as he appears forced to action and have to take total control. Bush could put an end to all this as far as I am concerned. Her is the friggen Decider! We all see that the slime has the power to force whoever he wants to do whatever he wants. Bush set in motion the demise of many average Americans with his implementation of new credit rules and Bankruptcy laws amongst a myriad of other laws designed to further reign in average Americans and enrich the wealthy further widening the divide between the classes. Over the years he has also had Greenspan setting up the demise of many average Americans with a banking, financial, and housing system designed to entrap many. Lastly the oil companies seem to be putting the last nail in the coffin raising prices uncontrolled to what has rapidly become a crisis level and at a very opportunistic time for Bush.
** Many of you know If President McCain looks in jeopardy Bush will attack Iran before elections and with financial crisis purposely mounting will be justified cancelling our facade of fair elections in our facade of a Democracy and declare martial order so he can stay in control of his mess or have the complicit powerless Congress call for a Constitutional Amendment to keep Bush at the helm of his Forever war and new societal, middle east, and world order. The perfect storm to bring down this purposely created house of cards is upon us and almost gone full; circle!
James Joiner
Gardner Ma
10 comments:
It is an exciting time to be alive!
Geesh weaze!
Certainly interesting! I think exciting because of the time we were lucky enough to experience already. Mind boggling to say the least would be a start for today!
Don't ya just love the monkey wrench McClellan just threw into the works?
Now the Reich has to waste their time attacking Scott's book. Rove accused McClellan of sounding like a "liberal blogger".
Welcome to the side of truth, Scotty. We're so glad you could leave the Dark Side. A little late, but better than never.
Is it time for the war crimes trials, yet?
I was wondering what would happen if someone in the inner circle developed a conscience. We know most of them are utter sociopaths without a conscience.
Dave
I love it. I was just talking to TC about this, the delegates issue in Michigan and Florida, amongst other things. It pisses me off what Rove said and the right already dismissed him as a disgruntled employee and they will continue their shit. However you know it is all true and more. We all knew from the start it was all lies. I am just sickened that people are willing to lie for Bush. They should all be tried for treason!
Oh woe is us.
Just another step toward Bush's Depression Jim:
Chemical giant jacks prices 20 percent
Better start stocking up on diapers and detergent.
Consumers hit hard in recent months by sharply higher prices for gasoline and food should prepare to start paying more for various household items following Dow Chemical Co.'s decision to raise its prices by up to 20 percent to offset the soaring cost of energy.
The company, which announced the price increases Wednesday, took the unusual step of directing blame at the nation's energy policy makers.
"For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy," Andrew Liveris, Dow Chemical's chairman and chief executive, said in a written statement.
Dow Chemical's spiraling costs are "forcing difficult discussions with customers," he said.
The Midland, Mich.-based company supplies a broad swath of industries, from agriculture to health care, and any sizable price jumps would likely affect almost all of them.
The price increases will take effect Sunday and will be based on a product's exposure to rising costs. Dow Chemical said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, back in 2002 and that could climb fourfold to $32 billion this year.
Dow Chemical makes everything from the propylene glycols used in antifreeze, coolants, solvents, cosmetics and pharmaceuticals, to acrylic acid-based products used in detergents, wastewater-treatment and disposable diapers.
It makes key ingredients used in paints, textiles, glass, packaging and cars.
The company, whose products are sold in 160 countries, last month reported a 3 percent drop in quarterly earnings amid a 42 percent jump in energy and raw materials costs.
Its profit margins shrank from 9.8 percent in 2005 to 7.6 percent in 2006, and to 5.4 percent last year. During the 12-month period that ended March 31, the margin narrowed to 5.1 percent, according to Capital IQ.
Crude oil prices surpassed $135 a barrel last week, more than double the price from a year ago. Rising energy and transportation costs have been blamed for higher food prices, which rose 5 percent last year, the highest gain in 17 years.
Kevin McCarthy, a Banc of America Securities analyst, said in a note to investors there is "a growing unwillingness among chemical producers to function as an energy shock absorber."
"To be sure, cost inflation is not new; it has been an ongoing battle for Dow and others in recent years," he wrote. "However, we are seeing a new sense of urgency at Dow, and its competitors, to pass along escalating and volatile costs in an environment of decelerating demand."
Price increases from major suppliers significantly affect the cost of manufacturing, said Angie Chaplin, a spokeswoman for Solo Cup Co. The Highland Park, Ill.-based company is a customer of Dow Chemical.
"We absorb as much of these increases as we can through greater efficiency in our own operations, but we have no choice other than to pass on some of the increased cost to our customers," she said.
Companies and entire industries are looking for ways to share increases in the cost of doing business, said Mark Stephenson, a spokesman for chemical giant BASF Corp. in Florham Park, N.J.
"For us, BASF, we don't consider prices across the board, like you saw with Dow," Stephenson said. "Rather, we look at the necessity for increases on a product-by-product basis."
He said BASF had raised its prices for "a handful of products" during the past three months, but he did not know how many products had gone up in the year.
Another competitor, Rohm and Haas Co., announced April 29 that, beginning this month, it will apply an indexed raw materials and energy surcharge to products made by its Specialty Materials businesses. The index will be adjusted up or down monthly, based on the collective changes in key raw material, crude oil and natural gas costs, according to the Philadelphia-based company's Web site.
On Friday, suburban Dallas-based Kimberly-Clark Corp. announced that the consumer products maker will raise prices 6 percent to 8 percent beginning in late July for Huggies diapers, Pull-Ups training pants, and Cottenelle and Scott bathroom tissue. Company spokesman Joey Mooring declined to comment on Dow Chemical's price increases.
Paul Fox, a spokesman for Procter & Gamble Co., said Wednesday the company announced some pricing changes earlier this year and had no immediate response to the action being taken by Dow Chemical. Cincinnati-based P&G reiterated in April that more price increases were coming this summer.
The American Chemistry Council spent $770,000 in the first quarter of this year lobbying lawmakers on climate change, energy-policy reform and other issues. The council wants new supplies of natural gas - which is used extensively by its members to heat and power their facilities and as a raw material for thousands of products - brought to market by opening access to supplies that are currently off-limits.
The trade group represents more than 130 companies, including Dow Chemical, and spent about $2.4 million lobbying last year.
Dow Chemical itself spent $540,000 lobbying in the first quarter and more than $3.4 million last year on various pieces of legislation, including energy efficiency and climate change bills.
"I don't know how right or wrong Dow is about its pricing, but I'm sure fed up with the feel-goodism that has passed for congressional energy policy all this year and last," said Rep. Joe Barton, R-Texas, ranking member of the House Energy and Commerce Committee.
"That's why Republicans introduced a dozen bills that touch every portion of the energy sector, and whatever it takes to get them to the House floor, we're for, because we want energy prices down."
Both Democrats and Republicans have agreed on long-term plans to increase the use of renewable fuels and reduce consumption as the means for limiting U.S. dependence on foreign oil. But many Republicans also want to increase domestic petroleum and natural gas production through expanded offshore drilling, as well as in Alaska and elsewhere to aid that process in the near-term.
David Marks, a spokesman for Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, said the New Mexico Democrat is aware of Dow's concerns and worked to address them in last year's energy bill by co-sponsoring an amendment to create a pilot program for companies to build green facilities that could use coal as their primary feedstock.
"Unfortunately, that amendment was not successful," Marks said. "Sen. Bingaman and other Senate Democrats look forward to continuing to work with Dow, in this Congress and the next one."
Hey Brother
I have to run down to the VA right now but I have a question for you! If you have a video like in today's story and there is only a URL is there a way to turn it into an embed code or is that a stupid question?
Larry
As I keep telling everyone you better be prepared. this mess here and around the world is just starting and will get a hell of a lot worse regardless who is President.
This will dwarf WW2 and the Great depression combined. I told you Bush has yet to do his worse! we do not need a so called expert to tell us what we knew long before them and most of them still do not have a clue and just say what is happening? It has been friggen obvious from day one and it stinks we are powerless to set this straight!
There is most definitely a big bang coming in the western world.
It will be interesting to see what new creation is spawned?
I`d say that the US is going to have to lurch, or even crash to towards a non-militaristic form of socialism.
Just an opinion, of course...
This is all supposed to be the end of the Western World or western domination but we will have to see how this purposely created mess pans out.
You know the goal from this end has to to create a one world economy thus all the so called helpful trade agreements. What most do not realize is why this confrontation is developing. Bush has been pushing for a one world Government to control this one world economy and much of the world is lining up behind Russia to take him on!
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