Showing posts with label Communication Ethics. Show all posts
Showing posts with label Communication Ethics. Show all posts
7/31/12
5/14/12
If Michael Bloomberg made 5% per year on $20 billion, and paid half his taxes on long term capital gaines and half on dividend interest, will he "earn" an extra $295 million over the two years with Obama’s Tax Deal?
"President Barack Obama should tell Democrats angered by his compromises with Republicans
on extending tax cuts to “suck it up,” New York City Mayor Michael Bloomberg said.
“He says, ‘Look, this is what I did, this is the best I can do. Suck it up,’” Bloomberg said,
when asked how Obama should deal with Democrats angered by the tax measure
and other compromises with Republicans."
Molly Peterson and Gopal Ratnam
If Michael Bloomberg is worth about $20 billion,
and makes about $1 billion per year on long term capitol gaines and dividend interest
could he save about $295,470,320 over two years if Obama’s Tax Deal passes?
.......…………….............…………..…Tax Cuts Extended…………….Tax Cuts Expired
Dividends and LT Capital Gains...........$1,000,000,000…………………$1,000,000,000?
Tax Liability…………………................…..$149,948,250 ………………….$297,683,410?
Average Tax Rate………........................…..14.99%……………….....……. 29.77%?
$297,683,410 – $149,948,250 = about $147,735,160 x 2 years
= about $295,470,320?
9/19/11
Monte Carlo
… a "Monte Carlo" simulation, commonly used in financial planning
estimates the odds of reaching retirement financial goals.
Though these tools typically run through hundreds or thousands of potential market scenarios,
they often assign minuscule odds to extreme market events.
Yet these extreme events seem to be happening more often.
If causes, actions or winners have effects, reactions or losers
and A is caused, allowed, accelerated, held back or prevented
is it better to pre-think what could happen to B, C and D
than not?
The questions about Monte Carlo tools
reflect broader concerns about mathematical models
for gauging portfolio risks
These models were supposed to help quantify and manage the risks
of...complex instruments
If achievement takes less time with a rational plan
can you get farther faster than those without
and vice versa?
But given the events of the past couple of years
it appears that the models often gave big institutions
as well as small investors, a false sense of security
Critics emphasize that the problem isn't Monte Carlo itself
but the assumptions that go into it
If some financial estimates and hypothetical illustrations
assume perpetual levels of varying data
can probability be manipulated?
Is the present you the only who
who’s going to care for the future you?
Since no standard approach exists
one user might plug in a range of assumptions on interest rates
inflation or volatility that is different from another user
Some industry participants and academics
are pushing for Monte Carlo tools to more clearly illustrate
the scarier scenarios
The Wall Street Journal, May 2, 2009
If there are at least 15,000 professional American Economists
and less than 1% foresaw the financial crisis
and many mathematical based financial prognostications
were relatively useless
which if left in place
could negatively affecting the future
should some try to fix what’s probably broken?
7/4/11
On Peak Oil: Could long term economic recovery be limited to available and/or affordable energy supplies?
Branson warns that oil crunch: Energy crisis threatens to be more serious than credit crunch
Sir Richard Branson and fellow leading businessmen will warn ministers this week that the world is running out of oil and faces an oil crunch within five years.
…Other British executives who will support the warning include Ian Marchant, chief executive of Scottish and Southern Energy group, and Brian Souter, chief executive of transport operator Stagecoach.
Their call for urgent government action comes amid a wider debate on the issue and follows allegations by insiders at the International Energy Agency that the organization had deliberately underplayed the threat of so-called "peak oil" to avoid panic on the stock markets.
…The issue came up at the recent World Economic Forum in Davos where Thierry Desmarest, chief executive of the Total oil company in France, also broke ranks. The world could struggle to produce more than 95m barrels of oil a day in future, he said – 10% above present levels. "The problem of peak oil remains."
Chris Skrebowski, an independent oil consultant who prepared parts of the peak oil report for Branson and others, said that only recession is holding back a crisis…Skrebowski believes that Britain is particularly vulnerable because it has gone from being a net exporter of oil, gas and coal to being an importer, and is becoming increasingly exposed to competition for supplies.
The question of peak oil came to centre stage last November when a whistleblower told the Guardian the figures provided by the IEA – and used by the UK and US governments for much of their planning scenarios – were inaccurate.
"The IEA in 2005 was predicting that oil supplies could rise as high as 120m barrels a day by 2030, although it was forced to reduce this gradually to 116m and then 105m last year," said the IEA source. "The 120m figure always was nonsense but even today's number is much higher than can be justified and the IEA knows this."
Terry Macalister
guardian.co.uk
6/30/11
Has everything happened the way you think it did?
You are so intent that you believe
only what you believe that you believe
that you remain utterly blind to what you really believe
without believing that you believe it
Orson Scott Card
Would you rather be happy
or know?
You take the blue pill
the story ends
you wake up in your bed and believe whatever you want to believe
You take the red pill
you stay in Wonderland and I show you how deep the rabbit-hole goes
Morpheus
The Matrix
If there were thousands
of relatively independent media companies in the mid 1900’s
~50 by the 1980’s
and less than 10 after 2000
mostly owned by conglomerates with conflicting interests
dependent on legislative initiatives for regulatory concerns
and advertisers and political campaigns for profit
is most mainstream information relatively more objective or less?
Power in America…
is control of the means of communication
Theodore White
Political Journalist
Did the founding fathers want the communications industry
to keep an eye on the government for the people
or an eye on the people for the government?
6/27/11
Could some who follow statistical irregularities, take advantage of relative unawareness of the many, prior to collective realization?
There’s been some suggestions that the payrolls report
had been distorted by the way the Bureau of Labor Statistics
accounts for business births and deaths
There’s been talk that the birth/death model
a little-noted detail in the monthly report
came in with a huge statistical discrepancy for this month
effectively adding as many as 220,000 jobs to the reading
In a conference call with reporters, Labor Secretary Hilda Solis
...insisted the BLS number was correct
and that no changes would be needed
Market Reaction Hints At False Note In Jobs Report
What is the likelihood
that the Bureau of Labor Statistics Birth/Death adjustment
which guesstimates employment at new businesses
added 220,000 hypothetical jobs in May 2009
including 43,000 new construction positions
as new small business loan availability cratered
77,000 in Leisure and Hospitality jobs
as hotel occupancy hit new lows
and 7,000 Financial Services positions
if 174,000 jobs were estimated in May 2008?
Is it conceivable
that the US created more construction and leisure/hospitality jobs
in April and May of 2009
than in April & May of 2002, 3, 4, 5, 6, 7 and 2008
considering current economic circumstances?
6/11/11
Is Greensboro’s City Council attempting to control public thought by boring televised meeting viewers at the beginning so fewer will watch anything controversial or entertaining by the end?
Without censorship,
things can get terribly confused in the public mind.
William Westmoreland
American military commander, Vietnam, 1964 - 1968
US Army Chief of Staff, 1968 - 1972
5/20/11
Are rising financial markets in the best interests of the financial news industry?
Sales of new homes rose in February
for the first time in seven months
…another sign that the housing market is thawing
Why would a mainstream news story entitled
New-Home Sales Rise 4.7%
not mention year over year sales were down 41%
or that January 2009 new home sales fell 10%
to the lowest level since reporting began in 1963
48.2% below January 2008 estimates?
Who controls the past controls the future
Who controls the present controls the past
George Orwell
If $100 loses 50% and then rises 5%
how should most feel about having $52.50 instead of $100
after enduring conjured platitudes?
If you don't read the newspaper, you are uninformed
If you do read the newspaper, you are misinformed
Mark Twain
12/14/10
If Mitt Romney is worth at least $190 million and makes about 5% of dividends and 5% on capital gains, could he bring in an extra $5,656,178 by charging America’s children about $1,600 a piece?
Should Mitt Romney have disclosed his conflict of interest in his USA Today Op-Ed?
..............................Tax Cuts Extended Tax Cuts Expired
Taxable Income........ $18,981,000 $18,990,350?
Tax Liability............. $2,839,650........$5,622,239?
Average Tax........ Rate 14.95%............29.59%?
$5,622,239 - $2,839,650 = $2,782,589 x 2 years = $5,565,178?
Married, No children
Tax Plan: Tax Cuts Extended vs. Tax Cuts Expired
Tax Year: 2011
AMT Patch: AMT Patch in effect
Tax Calculator
If about 1,699,000 US households make more than $250,000,
and their portion of the tax cuts cost $120 billion
are America’s elected leaders
about to charge everyone’s kids $1,600 each
to give all the households making more than $250,000 per year
an average of $70,629.78 each?
$120 billion divided by 1,699,000 = $70,629.78?
..............................Tax Cuts Extended Tax Cuts Expired
Taxable Income........ $18,981,000 $18,990,350?
Tax Liability............. $2,839,650........$5,622,239?
Average Tax........ Rate 14.95%............29.59%?
$5,622,239 - $2,839,650 = $2,782,589 x 2 years = $5,565,178?
Married, No children
Tax Plan: Tax Cuts Extended vs. Tax Cuts Expired
Tax Year: 2011
AMT Patch: AMT Patch in effect
Tax Calculator
If about 1,699,000 US households make more than $250,000,
and their portion of the tax cuts cost $120 billion
are America’s elected leaders
about to charge everyone’s kids $1,600 each
to give all the households making more than $250,000 per year
an average of $70,629.78 each?
$120,000,000,000 / 75,000,000 Kids = $1,600 per American Child?
$120 billion divided by 1,699,000 = $70,629.78?
12/13/10
If Us Senator Jay Rockefeller (D-W.Va.) was worth about $80.40 million in 2008, about how much did he just vote himself over the next two years?
The 50 Richest Members of Congress (2008)
If about 1,699,000 US households make more than $250,000, and their portion of the tax cuts is about $120 billion...?
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
Could US Senator John Kerry charge every US child $12,000 to vote himself about $500,036 in Tax Cuts over two years?
If Britney Spears makes about $64 million per year, could she bring in another $5,876,704 from President Obama's Tax Deal over the next two years?
If Michael Bloomberg makes 5% per year on $20 billion, and pays half his taxes on long term capitol gaines and half on dividend interest, could he bring in an extra $295 million over two years with Obama's Tax Deal?
If Rush Limbaugh makes about $78 million per year, could Obama's Tax Deal give him about $15,324,704 more over the next two years?
If there are about 75 million kids in the United States of America, will congress and the president charge them $12,000 a piece to bail out the financial mismanagement of their parents?
Can any American legislator who votes for a $900 billion deficit increase run as a "fiscal conservative" in 2012?
How could some American legislators opposed to raising the debt ceiling, vote to increase the nation's deficit by $900 billion over 2 years?
How could Virginia US Senator Jim Webb explain why he may vote to charge each and every US child about $1,600 each to give US congressman Darrell Issa what could be about $1.3 million in Tax Cuts over the next two years?
If about 1,699,000 US households make more than $250,000, and their portion of the tax cuts is about $120 billion...?
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
Could US Senator John Kerry charge every US child $12,000 to vote himself about $500,036 in Tax Cuts over two years?
If Britney Spears makes about $64 million per year, could she bring in another $5,876,704 from President Obama's Tax Deal over the next two years?
If Michael Bloomberg makes 5% per year on $20 billion, and pays half his taxes on long term capitol gaines and half on dividend interest, could he bring in an extra $295 million over two years with Obama's Tax Deal?
If Rush Limbaugh makes about $78 million per year, could Obama's Tax Deal give him about $15,324,704 more over the next two years?
If there are about 75 million kids in the United States of America, will congress and the president charge them $12,000 a piece to bail out the financial mismanagement of their parents?
Can any American legislator who votes for a $900 billion deficit increase run as a "fiscal conservative" in 2012?
How could some American legislators opposed to raising the debt ceiling, vote to increase the nation's deficit by $900 billion over 2 years?
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
Could US Senator John Kerry charge every US child $12,000 to vote himself about $500,036 in Tax Cuts over two years?
If Britney Spears makes about $64 million per year, could she bring in another $5,876,704 from President Obama's Tax Deal over the next two years?
If Michael Bloomberg makes 5% per year on $20 billion, and pays half his taxes on long term capitol gaines and half on dividend interest, could he bring in an extra $295 million over two years with Obama's Tax Deal?
If Rush Limbaugh makes about $78 million per year, could Obama's Tax Deal give him about $15,324,704 more over the next two years?
If there are about 75 million kids in the United States of America, will congress and the president charge them $12,000 a piece to bail out the financial mismanagement of their parents?
Can any American legislator who votes for a $900 billion deficit increase run as a "fiscal conservative" in 2012?
How could some American legislators opposed to raising the debt ceiling, vote to increase the nation's deficit by $900 billion over 2 years?
How could US Congressman Howard Coble explain why he may vote to charge each and every US child about $1,600 each to give US Senator John Kerry what could be about $500,036 in Tax Cuts over two years?
If about 1,699,000 US households make more than $250,000, and their portion of the tax cuts is about $120 billion...?
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
Could US Senator John Kerry charge every US child $12,000 to vote himself about $500,036 in Tax Cuts over two years?
If Britney Spears makes about $64 million per year, could she bring in another $5,876,704 from President Obama's Tax Deal over the next two years?
If Michael Bloomberg makes 5% per year on $20 billion, and pays half his taxes on long term capitol gaines and half on dividend interest, could he bring in an extra $295 million over two years with Obama's Tax Deal?
If Rush Limbaugh makes about $78 million per year, could Obama's Tax Deal give him about $15,324,704 more over the next two years?
If there are about 75 million kids in the United States of America, will congress and the president charge them $12,000 a piece to bail out the financial mismanagement of their parents?
Can any American legislator who votes for a $900 billion deficit increase run as a "fiscal conservative" in 2012?
How could some American legislators opposed to raising the debt ceiling, vote to increase the nation's deficit by $900 billion over 2 years?
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
Could US Senator John Kerry charge every US child $12,000 to vote himself about $500,036 in Tax Cuts over two years?
If Britney Spears makes about $64 million per year, could she bring in another $5,876,704 from President Obama's Tax Deal over the next two years?
If Michael Bloomberg makes 5% per year on $20 billion, and pays half his taxes on long term capitol gaines and half on dividend interest, could he bring in an extra $295 million over two years with Obama's Tax Deal?
If Rush Limbaugh makes about $78 million per year, could Obama's Tax Deal give him about $15,324,704 more over the next two years?
If there are about 75 million kids in the United States of America, will congress and the president charge them $12,000 a piece to bail out the financial mismanagement of their parents?
Can any American legislator who votes for a $900 billion deficit increase run as a "fiscal conservative" in 2012?
How could some American legislators opposed to raising the debt ceiling, vote to increase the nation's deficit by $900 billion over 2 years?
12/11/10
If US congressman Darrell Issa is worth about $303 million and makes about 5% of his net worth per year, could he charge every US child $12,000 to vote himself about $1,387,836 in Tax Cuts over two years?
If Darrell Issa, worth about $303 million, makes about $15.5 million per year*
and could save about $693,918 per year in taxes by voting for Obama's Tax Deal,
could Congressman Issa vote himself about $1,387,836 over two years?
………………………….................…Tax Cuts Extended…………….Tax Cuts Expired
Adjusted Gross Income……………$15,150,000*…………………$15,150,000*?
Tax Liability……………………...…..$5,265,721......................$5,959,639?
Average Tax Rate………………………..33.80%......................... 38.28%?
$5,959,639 – $5,265,721 = about $693,918 x 2 years = about $1,387,836?
.
Tax Calculator
Tax Plan: Tax Cuts Extended vs. Tax Cuts Expired
Tax Year: 2011
AMT Patch not in effect
$15,150,000 income estimate* = 5% of $303 million?
and could save about $693,918 per year in taxes by voting for Obama's Tax Deal,
could Congressman Issa vote himself about $1,387,836 over two years?
………………………….................…Tax Cuts Extended…………….Tax Cuts Expired
Adjusted Gross Income……………$15,150,000*…………………$15,150,000*?
Tax Liability……………………...…..$5,265,721......................$5,959,639?
Average Tax Rate………………………..33.80%......................... 38.28%?
$5,959,639 – $5,265,721 = about $693,918 x 2 years = about $1,387,836?
.
Tax Calculator
Tax Plan: Tax Cuts Extended vs. Tax Cuts Expired
Tax Year: 2011
AMT Patch not in effect
$900,000,000,000 / 75,000,000 Kids = $12,000 per American Child?
$15,150,000 income estimate* = 5% of $303 million?
12/8/10
$12,000 per American child, and Larry Summers says, "materially increase the risk the economy would stall out and we would have a double-dip"
"Raising the direst alarm yet, the Obama administration warned fellow Democrats on Wednesday that if they defeat the big tax-cut compromise detested by many liberals they could jolt the entire nation back into recession.
...Larry Summers, Obama's chief economic adviser, told reporters that if the measure isn't passed soon, it will "materially increase the risk the economy would stall out and we would have a double-dip" recession.
...Summers' remarks contrasted with Obama's comments at a news conference Tuesday. "We don't have the danger of a double-dip recession," the president said then, noting the impact of the 2009 stimulus bill and other measures meant to steady the economy."...
David Espo, Julie Hirschfeld Davis, Ben Feller, Stephen Ohlemacher and Erica Werner
...Larry Summers, Obama's chief economic adviser, told reporters that if the measure isn't passed soon, it will "materially increase the risk the economy would stall out and we would have a double-dip" recession.
...Summers' remarks contrasted with Obama's comments at a news conference Tuesday. "We don't have the danger of a double-dip recession," the president said then, noting the impact of the 2009 stimulus bill and other measures meant to steady the economy."...
David Espo, Julie Hirschfeld Davis, Ben Feller, Stephen Ohlemacher and Erica Werner
"...Fed Chairman. Mr. Bernanke...delivered two massive distortions:"
"This past Sunday on the CBS program "60 Minutes", ...Fed Chairman. Mr. Bernanke...delivered two massive distortions:
Lie #1 - The Fed isn't printing money. Bernanke stated: "The amount of currency in circulation is not changing...the money supply is not changing in any significant way. What we're doing is lowering interest rates by buying Treasury securities." Given that it is the Treasury Department's Bureau of Engraving and Printing, not the Fed, that actually prints paper money, his statement is technically correct while substantively false. However, Bernanke is buying bank assets with Fed credit. With such an arrangement, printing becomes unnecessary.
...His stated purpose is to boost bond prices and lower yields in order to stimulate borrowing and aggregate demand. So pushing up bond prices is an act of inflation. Bernanke similarly contradicts himself by saying that he isn't creating inflation, while at the same time claiming that his easing campaign is designed to boost asset prices to combat the phantom of deflation.
...the Fed is causing money supply to increase significantly. The compounded annual growth rate of M2 is over 7% in the last quarter. Apparently in the eyes of the Chairman, a 7% annualized increase in the broad money supply isn't considered significant.
Lie #2- Bernanke is "100 % confident" that, when necessary, the Fed can control inflation and reverse its accommodative monetary policy. He stated, "We've been very, very clear that we will not allow inflation to rise above 2 percent. We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time."
...In claiming he is 100% confident in his ability to control inflation, Mr. Bernanke ignores the record that during his tenure he has misdiagnosed the economy.
...Bernanke was completely unaware that the Fed actions had created an economy that had become completely addicted to artificially-produced low interest rates and inflation.
Shortly after the collapse of the real estate market and the ensuing truncated deflationary-depression, Bernanke took interest rates to near zero percent.
...the U.S. economy has become more addicted to free money than at any other time in our history.
Commodity prices are soaring once again and the real estate market, banking sector, and the overall economy cling precariously on the arm of government induced bailouts and low interest rates.
...our government has massively increased its level of debt
Bernanke was accurate in saying that the economy is not expanding at a sustainable pace.
Of course, his prescription was the same as it always is; print more money in the misguided belief that inflation will lead to growth.
As such, he indicated that it's possible that the Fed may actually expand bond purchases beyond the $600 billion announced last month. (Remember that the $600 billion comes after the $1.7 trillion that has already been printed, which failed to produce anything much beyond a weaker dollar)."
Mike Pento
Lie #1 - The Fed isn't printing money. Bernanke stated: "The amount of currency in circulation is not changing...the money supply is not changing in any significant way. What we're doing is lowering interest rates by buying Treasury securities." Given that it is the Treasury Department's Bureau of Engraving and Printing, not the Fed, that actually prints paper money, his statement is technically correct while substantively false. However, Bernanke is buying bank assets with Fed credit. With such an arrangement, printing becomes unnecessary.
...His stated purpose is to boost bond prices and lower yields in order to stimulate borrowing and aggregate demand. So pushing up bond prices is an act of inflation. Bernanke similarly contradicts himself by saying that he isn't creating inflation, while at the same time claiming that his easing campaign is designed to boost asset prices to combat the phantom of deflation.
...the Fed is causing money supply to increase significantly. The compounded annual growth rate of M2 is over 7% in the last quarter. Apparently in the eyes of the Chairman, a 7% annualized increase in the broad money supply isn't considered significant.
Lie #2- Bernanke is "100 % confident" that, when necessary, the Fed can control inflation and reverse its accommodative monetary policy. He stated, "We've been very, very clear that we will not allow inflation to rise above 2 percent. We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time."
...In claiming he is 100% confident in his ability to control inflation, Mr. Bernanke ignores the record that during his tenure he has misdiagnosed the economy.
...Bernanke was completely unaware that the Fed actions had created an economy that had become completely addicted to artificially-produced low interest rates and inflation.
Shortly after the collapse of the real estate market and the ensuing truncated deflationary-depression, Bernanke took interest rates to near zero percent.
...the U.S. economy has become more addicted to free money than at any other time in our history.
Commodity prices are soaring once again and the real estate market, banking sector, and the overall economy cling precariously on the arm of government induced bailouts and low interest rates.
...our government has massively increased its level of debt
Bernanke was accurate in saying that the economy is not expanding at a sustainable pace.
Of course, his prescription was the same as it always is; print more money in the misguided belief that inflation will lead to growth.
As such, he indicated that it's possible that the Fed may actually expand bond purchases beyond the $600 billion announced last month. (Remember that the $600 billion comes after the $1.7 trillion that has already been printed, which failed to produce anything much beyond a weaker dollar)."
Mike Pento
12/6/10
10/20/10
World Trade War 2010
"China to Halt Some Exports to U.S.
China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of those materials to the United States and Europe, three industry officials said on Tuesday.
The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West.
...“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.
They said Chinese customs officials imposed the broader restrictions on Monday morning, hours after a top Chinese official summoned international news media Sunday night to denounce United States trade actions.
China mines 95 percent of the world’s rare earth elements, which have broad commercial and military applications, and are vital to the manufacture of products as diverse as cellphones, large wind turbines and guided missiles. Any curtailment of Chinese supplies of rare earths is likely to be greeted with alarm in Western capitals, particularly because Western companies are believed to keep much smaller stockpiles of rare earths than Japanese companies.
China experts said on Tuesday that Beijing’s assertive stance on rare earths might also signal the ascendance of economic nationalists, noting that the Central Committee of the Communist Party convened over the weekend.
...Industry executives said there had been no signal from Beijing of how long rare earth shipments intended for the West would be held by Chinese customs officials.
...Word of the blocked shipments emerged from industry executives on Tuesday after an official China newspaper reported earlier in the day that Beijing planned next year to further reduce its annual export quota for rare earths.
The signals of a tougher Chinese trade stance come after American trade officials announced on Friday that they would investigate whether China was violating World Trade Organization rules by subsidizing its clean energy exports and limiting clean energy imports. The inquiry includes whether China’s steady reductions in rare earth export quotas since 2005, along with steep export taxes on rare earths, are illegal attempts to force multinational companies to produce more of their high-technology goods in China.
Despite a widely confirmed suspension of rare earth shipments from China to Japan, now nearly a month old, Beijing has continued to deny that any embargo exists.
Industry executives and analysts have interpreted that official denial as a way to wield an undeclared trade weapon without creating a policy trail that could make it easier for other countries to bring a case against China at the World Trade Organization.
So far, China seems to be taking a similar approach in expanding the embargo to the West.
Wang Baodong, a spokesman for the Chinese Embassy in Washington, said on Tuesday that the Chinese government was putting new restrictions on the mining, processing and export of rare earths to protect the environment. But he said that China was not violating any W.T.O. rules in doing so and that it was not imposing an embargo or trying to use rare earths as a bargaining chip.
“With stricter export mechanism gradually in place, outbound shipments to other countries might understandably begin to feel the effect,” Mr. Wang said in an e-mail. “But I don’t see any link between China’s reasonable rare earth export control policy and the irrational U.S. decision of protectionist nature to investigate China’s clean energy industries.”
...The Chinese government office that oversees rare earth policy...has emerged as a bastion of economic nationalism.
...China reduced in July its export quota for rare earths for the second half of the year by 72 percent. Exporters had only six weeks’ of quotas left when China imposed its unannounced embargo on shipments to Japan.
China is preparing further reductions of up to 30 percent in its 2011 quotas compared with quotas issued in 2010..."
Keith Bradsher
New York Times
China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of those materials to the United States and Europe, three industry officials said on Tuesday.
The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West.
...“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.
They said Chinese customs officials imposed the broader restrictions on Monday morning, hours after a top Chinese official summoned international news media Sunday night to denounce United States trade actions.
China mines 95 percent of the world’s rare earth elements, which have broad commercial and military applications, and are vital to the manufacture of products as diverse as cellphones, large wind turbines and guided missiles. Any curtailment of Chinese supplies of rare earths is likely to be greeted with alarm in Western capitals, particularly because Western companies are believed to keep much smaller stockpiles of rare earths than Japanese companies.
China experts said on Tuesday that Beijing’s assertive stance on rare earths might also signal the ascendance of economic nationalists, noting that the Central Committee of the Communist Party convened over the weekend.
...Industry executives said there had been no signal from Beijing of how long rare earth shipments intended for the West would be held by Chinese customs officials.
...Word of the blocked shipments emerged from industry executives on Tuesday after an official China newspaper reported earlier in the day that Beijing planned next year to further reduce its annual export quota for rare earths.
The signals of a tougher Chinese trade stance come after American trade officials announced on Friday that they would investigate whether China was violating World Trade Organization rules by subsidizing its clean energy exports and limiting clean energy imports. The inquiry includes whether China’s steady reductions in rare earth export quotas since 2005, along with steep export taxes on rare earths, are illegal attempts to force multinational companies to produce more of their high-technology goods in China.
Despite a widely confirmed suspension of rare earth shipments from China to Japan, now nearly a month old, Beijing has continued to deny that any embargo exists.
Industry executives and analysts have interpreted that official denial as a way to wield an undeclared trade weapon without creating a policy trail that could make it easier for other countries to bring a case against China at the World Trade Organization.
So far, China seems to be taking a similar approach in expanding the embargo to the West.
Wang Baodong, a spokesman for the Chinese Embassy in Washington, said on Tuesday that the Chinese government was putting new restrictions on the mining, processing and export of rare earths to protect the environment. But he said that China was not violating any W.T.O. rules in doing so and that it was not imposing an embargo or trying to use rare earths as a bargaining chip.
“With stricter export mechanism gradually in place, outbound shipments to other countries might understandably begin to feel the effect,” Mr. Wang said in an e-mail. “But I don’t see any link between China’s reasonable rare earth export control policy and the irrational U.S. decision of protectionist nature to investigate China’s clean energy industries.”
...The Chinese government office that oversees rare earth policy...has emerged as a bastion of economic nationalism.
...China reduced in July its export quota for rare earths for the second half of the year by 72 percent. Exporters had only six weeks’ of quotas left when China imposed its unannounced embargo on shipments to Japan.
China is preparing further reductions of up to 30 percent in its 2011 quotas compared with quotas issued in 2010..."
Keith Bradsher
New York Times
Subscribe to:
Posts (Atom)