The Watering Hole: Tuesday June 12, 2012 – Duck and Pray or Go Vote! Your decision.

Bank Run

The perfect economic storm may be rocking the boat big time, come three weeks. That’s how long IMF boss Christine Lagarde reckons Europe has left to solve their problems. I wish everybody the best of luck with Angela Merkel being the key person in the situation. That’s one obstinate woman if there ever was one.

Well, then there are younger economic powerhouses than Europe, which could pick up the slack. India? Errr no. Brazil? So sorry, no help. China? Hmmmm.

Don’t expect the economy to be any help in November when it comes to President Obama running for a second term. Mitt Romney’s position gets stronger by default. Bringing out the Democratic vote, even if you are understandably less than enthusiastic must be top priority this year. If Mitt Romney is elected, the last remnants of what’s left of the middle class will go down in flames. Their already dismal funds will be transferred to the top 1%.

The 1% will then learn a little later, that their money is just printed on paper after all and there is no one left they can milk for more. Then the top 0.1% will go after the others, but that won’t be of any help to any of you.

Is it that bad? Yes it is.

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This Week In News – Flower Hour

For anyone that loves art history, there is a section of Thomas Cole’s work. Kudos to Collateral News for another incredible job putting together the Flower Hour.

Erin Burnett Compares The US Unemployment System With China

Erin Burnett questions unemployment benefits themselves:

“Places like China don’t have unemployment benefits and everyone says that makes them weak. But does that encourage people in places like China to go get jobs more quickly, rather than waiting to exhaust their unemployment benefits, as some say some people do here…”

Burnett starts to back peddle big time right there in the segment. She feels that it is a fair and legitimate question for discussion. She asks this question to Joe Scarborough at the (2:47) mark.

heathr456 posted this and she took the words right out of my mouth when she said ” Put this one under the you’ve got to be f*cking kidding me column.”

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From a distance: My Wish List for President elect Obama

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The general election has a first positive impact: Europeans are for the first time in many years applauding America. I haven’t spoken to a single person here, who is not happy with Barack Obama as President elect. You voters have made a huge step in mending the abysmal reputation of America.

I am personally delighted with the result, but that won’t surprise anybody, I guess. So, what am I expecting from an Obama Administration? A lot.

Wal-Mart Caught Again With Supplier Accused of Sweatshop Conditions

Wal-Mart Christmas Ornaments made in sweatshops.

 

This comes on the heels of a CNN report aired on December 13, 2007 of last year, when it was revealed that Wal-Mart Christmas Ornaments were made under deplorable conditions. Children ranging from ages of 12 to 16 years old, making 26 cents an hour which is half of China’s minimum wage.

Business Week.com cites a new study released, which exposed Wal-Mart’s auditing program failed to uncover that a supplier of children’s wear are being produced in sweatshop conditions. The factory forced workers to lie to Wal-Mart inspectors about the working conditions. Wal-Mart has, of course, tried to hide this report from the public.

According to Business Week, “Wal-Mart acknowledges that it urged SweatFree Communities several times not to publish its report.”

According to the study, “Sweatshop Solutions? Economic Ground Zero in Bangladesh and Wal-Mart’s Responsibility,” the factory forces workers to toil marathon 19-hour shifts from 8 am to 3 am in order to finish Wal-Mart orders with tight deadlines. “If any worker declines overtime, management harasses him or her mentally or physically,” says Elina, a 22-year old factory helper. The report recounts one incident of a pregnant worker, who was refused leave, and forced to deliver her child inside the factory.

“In response to this report and pressure from our organization, Wal-Mart promises action to make this factory a model for others in Bangladesh,” said Bjorn Claeson, Executive Director of SweatFree Communities, a worker rights organization that authored the report. “We welcome Wal-Mart’s intervention. As one of the most powerful companies in the world with enormous presence in Bangladesh Wal-Mart could have a dramatic positive impact. But the company should recognize that its own low price demands and just-in-time production system is the root cause of sweatshop conditions. To bring about substantive changes in this factory and others, Wal-Mart must be willing to change its own demands.”

FDA Warning: U.S. Instant Coffee From China Melamine Tainted

George W. Bush who hates regulations has fought against it with the food and drugs since he has been in office. So you know it has to be really adverse to your health when the FDA finally is issuing a warning. That means check your coffee and get rid of it fast. I have the list of coffees that are going to be pulled from the grocery stores across the US.

U.S. regulators warned the public on Friday not to consume seven Mr. Brown instant coffee and milk tea products that were made in China because of concerns they may be contaminated with melamine. The Food and Drug Administration said the products were recalled by King Car Food Industrial Co Ltd “due to possible contamination with melamine.”

Infant formula tainted with the industrial chemical has resulted in hospitalization for thousands of Chinese babies with painful kidney stones. Four have died.

Here are the coffee and tea products that are being recalled:

China to stop lending to US banks

Reuters reports:

BEIJING, Sept 25 (Reuters) – Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

“The decree appears to be Beijing’s first attempt to erect defences against the deepening U.S. financial meltdown after the mainland’s major lenders reported billions of U.S. dollars in exposure to the credit crisis, the SCMP said.

A spokesman for the CBRC had no immediate comment.

Oh boy. This is NOT good.

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