Soaring Gas Price Pinches, US Consumer’s Behavior Changes

By ETHAN Markoff

WORLD/BUSINESS NEWS - US in the last three months have witnessed a steady job growth, and moreover, this year’s federal payroll tax cut respites Americans from the tedious energy cost cutting. But the larger picture does sometimes conceal the smaller shades. Economy is gaining its momentum but for Americans they are still digging their way out of the rapid increase of fuel prices.

For example Mark Hauser (name changed on request), a marketing executive in the Hudson Valley of New York admitted the small comfort from economic recovery, but moved to a rental house much closer to his workplace. At $4 a gallon, Mark thought it’s too expensive to commute about 100-mile round-trip five days a week.

The daily commutation by cars has suddenly dropped in many places across US, while people now prefer to travel on buses and ferries.

“If all your customers are paying $50 for a tank of gas that they used to pay $25 for, somebody is not getting that $25,” said William Dunkelberg, chief economist for the National Federation of Independent Business.

In recent weeks, gas prices eased a little, but they are, on average, up about 30 percent over a year earlier. High fuel price amplifies in food price, airfares, taxi fares in some regions, making American consumers conscious in their approach.

The high oil prices have also affected retail and other business. For example, the nation’s largest retailer, Wal-Mart lamented that high fuel price had restrained consumers to involve in shopping, hampering their business. Sales of the retail giant fell 1.1 percent in the first quarter.

Lowe’s one of the largest home improvement chains in US suffered 5.7 downslide in quarterly profit, as customers made less trips. According to Lowe’s chief executive, Robert A. Niblock, chief reason of fewer footfalls is because of rising gas and energy prices, followed by overall inflation.

In a research on consumer spending by MasterCard Advisors’ SpendingPulse, it disclosed 1 percent downslide in many gas pumps in the country over a year earlier.

Some companies have already invested in cloud computing so employees can access all docs and work from home. Even company like Topical BioMedics hands out gas cards as bonuses and birthday gifts and conducts seminar on the importance of energy efficient cars.

The economy of the United States is slowly mending, creating more than 750,000 jobs, which means addition of money into the nation’s economy in the form of more paychecks. But the rising gas price roughly translates into a loss of $75 billion to $100 billion.

There are also some sectors get benefited from the price rise of gasoline. E-commerce sales have risen to 19.2 percent in April over a year earlier. Car sales have also risen as people prefer to buy small cars as compared to old preferred trucks. They are now more inclined toward compact and fuel-efficient cars like Chevrolet Cruze, Ford Fiesta and Focus models and electric driven cars as well.

Straus-Kahn Victim Of Sarkozy's Smear Campaign: Ally

By ETHAN Markoff
May 17, 2011

WORLD NEWS - After the denial of bail in a sex assault case in a New York City courtroom Monday, there is another brewing. In a recent comment by a possibly a Socialist candidate, who is also believed to be a close associate of Strauss-Kahn in France presidential election, said Saturday the IMF chief was persecuted for a smear campaign by President Nicolas Sarkozy’s camp.

Socialist politician Jean-Marie Le Guen expressed in his interview said Mr. Sarkozy totally planned an organized campaign to taint the character of his main rival in next year election. He said the Elysee (Sarkozy’s office) structured for months to clear out the idea how they would attack (his) personal character.

Jean Veil, Strauss-Kahn's lawyer said he would probably file a legal action against a French newspaper, questioning about the lifestyle of his client. He further added that the newspaper produced several inaccurate details such a possession of suits from a luxury tailor in Washington and described him a worker from US President Barack Obama.

"His suits are perfectly normal and allegations which are now spread regularly throughout the media are both fabrications and now clearly defamatory," Le Guen said.

It is noted that in a recent opinion polls suggested Mr. Strauss-Kahn would win the Socialist Party primaries against French President Nicolas Sarkozy.

Read more..

IMF’s Strauss-Kahn Sex Charge Allegations

IMF’s Strauss-Kahn Produces At NY Court For Sex Charges

By ETHAN Markoff
May 16, 2011

WORLD NEWS - International Monetary Fund chief Dominique Strauss-Kahn appeared at the court in New York for a sexual charge accused for an attempted to rape a hotel maid. Meanwhile, Mr. Strauss-Kahn denied the charge, dismissing it as a political conspiracy. It is noted that he had been seen a candidate in France's 2012 presidential election.

Adding insult to the injury, a similar complaint had been lodged by a French writer who said that Mr. Strauss-Kahn sexually assaulted her in 2002.

This is the first time when Mr. Straus-Kahn had appeared in court since he was pulled off a plane in May 14 for sexually abuse a hotel maid.

He was sitting at John F. Kennedy International Airport prepared to depart, shortly arrested and took a seat on a bench in Manhattan criminal court.

He is charged with unlawful imprisonment and a criminal sex act. However, 62 year-old Mr. Strauss-Kahn had denied the allegation. His lawyer Benjamin Brafman said he would plead not guilty at court.

According to New York Police Department, the 32-year-old hotel mail works at Sofitel hotel in midtown Manhattan who was attacked by IMF chief during his visit to the hotel.
The wood-lined courtroom was packed with journalists, general public and even a French consulate representative. Strauss-Kahn's lawyer Benjamin Brafman defended his client denying the allegation that Mr. Strauss-Kahn trapped the maid in a hotel and tried to rape her.
The accused victim used to work from last three years at the luxury Sofitel hotel alleged Mr. Strauss-Kahn suddenly Sunday and won a warrant against him to seek DNA evidence.

"He intends to vigorously defend these charges and denies any wrongdoing," Brafman told reporters.

The shocking news of one of the world’s most powerful men left IMA staggering just before the significant discussion over the debt crisis sweeping the eurozone.

Mr. Strauss-Kahn's wife, former French television journalist defended his husband, saying he was fenced in a political conspiracy and did not believe. She also asked for "decency and restraint".

The arrest triggered a reeling speculation across France over the authenticity of the allegation, as many think it might because of political motives. It is noted that IMF chief had been seen a strong political contender for France’s next year Presidential election.

However, the history of Mr. Strauss-Kahn is not spotless, as he was mired with controversy earlier. In 2008, he was noticed for an affair with a Hungarian IMF economist. He was loosely alleged for inappropriate behavior but the IMF concluded he had not exerted pressure on the lady.

Dominique Strauss-Kahn Political career

Managing Director of the International Monetary Fund, since 2007.

Governmental functions

• Minister of Industry and Foreign trade, 1991–1993.
• Minister of Economy, Finance and Industry, 1997–1999 (resignation).
  

Electoral mandates

Member of the National Assembly of France for Val d'Oise, 1986–1991 Reelected in 1997, was minister 2001–2007. Elected in 1986, reelected in 1988, 1997, 2001, 2002, 2007.

Regional Council

Regional councillor of Ile-de-France, 1998–2001 (resignation).

Municipal Council

• Mayor of Sarcelles, 1995–1997 (resignation).
• Deputy-mayor of Sarcelles, 1997–2007 (resigned on becoming Managing Director of the IMF in 2007). Reelected in 2001.
• Municipal councillor of Sarcelles, 1989–2007 (resigned on becoming Managing Director of the IMF in 2007). Reelected in 1995, 2001.

Agglomeration community Council

• President of the Agglomeration community of Val de France, 2002–2007 (resigned on becoming Managing Director of the IMF in 2007).
• Member of the Agglomeration community of Val de France, 2002–2007 (resigned on becoming Managing Director of the IMF in 2007).

Read more...

IMF Chief Facing Sarkozy's Smear Campaign

Global Inflation Soaring, Essential Food Prices Rise To Record High

By ETHAN Markoff

In a figurative language, inflation resemblances a pregnant woman as the adage says, 'having a little bit of inflation is like being a little bit pregnant.' It seems in the economic sector the adage holds water as the global food prices rise 4.4 percent to a record by the end of the year, increasing the demand of essential commodities like meat, oilseeds, grains, oils etc. In Europe inflation is still lower than U.S and Asia, running at 3.1%, though in its fastest pace since euro currency began circulating. China, the rapid developing country in the world, suffering from a high inflation temperature, driving at 6.9%, the highest in 11 years.

Food Price Index of the United Nation climbs to 240 points from 229.84 last month, which is certainly a concern for economists. In a recent study revealed by Goldman Sachs, global inflation has accelerated in 80% of the countries, and rose two percentage since November last year.

However, history says, this is all small beer. Even inflation at the rate of 5% could hardly affect on double-digit price rise, which was witnessed in the 1970s when the rich countries terrified by the sudden increase of food prices. It is not surprising that in even late 90s, the average inflation rate in poor nations was 50%!

Nevertheless, the upswing has posed significant questions such as weak retail sales, joblessness and American recession. Some analysts believe that the inflation is stagnated and heading for stagflation-lite.

Now, a question that raises eyebrows of some curious 'economical minds' is whether the rising inflation creates a pressure even as economic slow. In the recent times, due to concern over inflation, Beijing has kept tightening monetary policy and as a result it further raises concern over the recovery in the global economy, which is already slow. Inflation is a monetary phenomenon and primarily responsibility of central banks. The cheap price of Chinese goods may be abating and at the same time increasing demand for resources causes commodity prices higher.

There is partial truth in all those reasons and explanations. For example, in Gulf countries monetary laxness causes inflation and in China different aspects of social unrest have made the inflation soaring. The Chinese government has made several efforts to curb the increasing price of essential commodities. In last one year, China has considerably accumulated foreign-exchange reserves that has ignited domestic money growth and as a result, the inflation is tripled in last one year. National Development and Reform Commission (NDRC), China's planning body created much furor, telling people to avoid price rises by frying noodles in cheaper oil.

It is believed that American imports from China in the recent years exponentially increased because of Chinese production cost, but the reality is, it has more because of weakness of the dollar rather than cheap Chinese products. And the situation is now like this, if the China increase the price rise of its products, it would still dampen inflation in developed nations.

Now, the economy is globalized and mostly governed by the emerging economic states like China and India, who are more energetic and commodity intensive. From last one decade, China is responsible for about half of the increase in the world's demand for metals, and two-fifths of oil demand in the world.

There are other reasons for global inflation - a much overlooked one is the social unrest in northern Africa and the Middle East that have witnessed toppled thrones in Egypt and Tunisia. The incidents also caused 44 million people into poverty in the past year. Because of a long time gap of production process by the farmers, consumers have to pay more for essential commodities.

Read More...

Unbridled Inflation Hits Below The Belt Of Poor Asians


* Illustration courtesy to Satoshi Kambayashi

Al-Qaida Leaders Were In Pakistan On 9/11: WikiLeaks

By ETHAN Markoff

WORLD NEWS - Yet another sensational report published by whistle blower WikiLeaks, saying some senior al-Qaida leaders were in Pakistan's Karachi city on 9/11 twin towers attack day. The documents were published by Washington Post accessed by WikiLeaks, saying most al-Qaida leaders were returned to Afghanistan within a day from Karachi.

The media report revealed that the prime al-Qaida leaders were in Karachi on September 11, 2001. One leader was admitted at a hospital and treated for tonsillectomy and another was buying lab equipment for a biological weapons program. Other al-Qaida key members were in New York and Washington, enjoying the destruction on television. However, within a day most of the major leaders were back to Afghanistan.

The documents gathered by Washington Post from WikiLeaks speak of a big meeting of al-Qaida’s senior member in early December 2001 in Afghanistan's mountainous Zormat region. It also speaks about the al-Qaida’s chief Osama bin Laden who was seen in Afghanistan's Kandahar province. There in a small guesthouse he instigated militants to “fight against the infidel invaders in the name of Allah.”

For the next three months, Osama and his chief associate Ayman al Zawahiri traveled by car to several areas in Afghanistan and during this time he almost ran out of money and borrowed $7,000 from one of his protectors. He returned the money within a year.

WikiLeaks also documented some geographic locations for bin Laden in his clandestine resident in Pakistan.

Karzai Accuses Western Accounting Firms For Kabul Bank's Turmoil

By ETHAN Markoff

AFGHANISTAN NEWS - President of Afghanistan Hamid Karzai Monday has blamed Western financial firms for corruption and disability to recognize the problems of Kabul's largest bank. It is reported that some Afghan officials have already traveled to Washington to present their plan to decimate the bank.

At a news conference, President Karzai consolidated depositors of Kabul bank about the safety of their money and asked for prosecution of foreign accounting firms along with those shareholders who still to pay illegitimate loans.

He blamed international organizations and foreign firms who took millions of dollars to improve the banking system, hoaxed their job. He further said the accounting firms provided the Central Bank with inaccurate information and cheated Afghanistan government.

He stressed on three firms: Pricewaterhouse Coopers, Deloitte and Bearing Point for the reason of turmoil of Afghanistan's largest bank. It is noted that one of the affiliates of Pricewaterhouse Coopers performed an audit on the bank and after three months trouble started brewing. Other two firms Deloitte and BearingPoint had a contract from the United States Agency of International Development to help Central Bank to evaluate and betterment of banking system.

Afghan officials who have gone to Washington, are expected to present a plan to the International Monetary Fund and the World Bank so that the Central Bank can recover from some loss. The plan includes selling off assets from borrowers who still to pay their loans. The plan also have suggestion for a buyer for the working parts of the institution, for example, distribution network for government salaries.

It is appeared that President Karzai speech aimed to make people prepare for the bank's dismantling. The speech also sounded like his earlier ones about Western interests, and particularly American interests, had harmed Afghanistan.

The blame game is on from both sides. Some Western officials suspected a bribery case where bank's financial situation was erased by PricewaterhouseCoopers. Some also believed the bank's shareholders, all of whom are Afghans bribed the foreign accounting firms to whitewash the facts.

An European diplomat warned that Mr. Karzai’s frequent bashing would be prove to be fatal, especially in Europe where people were reluctant to support the war and taxpayers could quickly turn against it.

“The appetite of the taxpayers and the governments are going to be very little, especially since this appetite is not getting good news from the theater,” the diplomat said.

Mr. Karzai in recent times frequently bashed the Western countries for the Afghanistan turmoil situation, spending billions of dollars on the country and risking soldiers. In a recent public appearance he also questioned about NATO involvement in Afghanistan. However, he later clarified his remark was specific as he believed to cease military operations to avoid civilian casualties.

Australia Experiences Huge Trade Deficits

By ETHAN Markoff

AUSTRALIA NEWS - Twin natural disasters have paralyzed Australian export and subsequently for the first time in 11 months the country has seen an alarming trade deficit. A recent report shows the trade deficit posted in February at A$205m ($212m; £131m). It is far less expected figure than analysts who were contemplating gain a surplus of close to A$950m.

Meanwhile the Reserve Bank of Australia (RBA) still to change in interest rates and kept it at 4.75%.

Glenn Stevens, governor of the central bank blamed the natural calamity for this slowness. He said the natural disasters over the summer affected the production of coal in flooded mines and took longer than expected.

Earlier in January and February, two main business cities of Australia Queensland and Victoria were badly affected by floods and cyclone. These states are main production places of many rich resources. As a result the production process experienced a quick fall, with export fell by 8%.

However, the Reserve Bank of Australia is hopeful to recover the loss over the next few months. Australia’s exports slid 2% in February to A$22.8bn.

On the other hand imports rose by 5% to A$23bn due to sharp rise in the price of fuels and lubricants. In the last 2 months the country has witnessed a stupendous 26% price rise in fuel and lubricant.

The economy of Australia in the last few years grew robustly and as a result lots of employment and more disposable income were created.

The recent natural disasters have caused a rise in inflation.

Despite trade deficit, the overall economy of Australia is still the best in Asia Pacific region. Increasing demand from other emerging economic countries and global price rise of essential commodity have been helping hands for Australia’s biggest commodity exporters.

"The outlook for trade remains very strong, with high commodity prices underpinning miners' plans for huge investment spending," said Brian Redican of Macquarie.

Seeing the enthusiasm of companies like BHP Billiton who are planning to invest $9.5bn to expand its iron ore and coal operations in Australia, analysts expect Australian companies to invest as much as A$160bn and eventually will give a good impetus to the country’s economy.

Radioactive Litter Threatens Japan Marine Life

By ETHAN Markoff

JAPAN NEWS - Japan nuclear disaster not only affects on human lives but slowly permeating to its rich marine life. In a recent announcement by Japan’s Agency for Natural Resources and Energy that says high levels of radioactive cesium have been discovered in seawater. The report raises the possibility of radioactive infiltration into the food chain and could be fatal for living organisms.

The radioactive substance cesium was found near the Fukushima Daiichi nuclear power plant and 20 times higher than the normal level. Although the in comparison to other radioactive isotopes spilled from the plant, cesium leaking is less, still scientists have warned cesium 137 poses the greater long-term danger to the marine food chain.

Other prevalent radioactive element like iodine 131 degrades relatively fast, becoming half as potent every eight days. So, the lethal effects can be countered by banning fishing and consumption of sea food for a specific span of time. Cesium 137, on the other hand, has a half-life of 30 years and the bad news is, marine plants readily absorb it, which then cycling in food chain.

“It’s worrisome in that CS 137 is leaking, although the levels are still low,” said Paul G. Falkowski, a professor at Rutgers University’s Institute of Marine and Coastal Sciences.

Mr. Falkowski said that the deposited water finally reaches sea and if the water would be heavily contaminated with cesium 137 over an extended period then it surely would question of serious concern.

The source of cesium 137 is still not found, although it is believed that the seawater dumped on the overheating reactors to cool them carried radiation and then poured out to sea. The natural process of dilution of radioactive effluents by the ocean is extraordinary. Many radioactive effluents have been dumped into the marine environment, including nuclear weapons.

Only the good part is the remarkable capacity of ocean to dilute radioactive substance because of it volume and depth. Therefore, oceanographers have not put any panic button right now and said to take appropriation precaution to happen any serious consequences.