“The US is one of two major beef-exporting countries with no comprehensive traceability system,” said Erin Borror, economist at the Meat Export Federation. The other country is India. The issue was Bovine Spongiform Encephalopathy, or Mad Cow Disease. Humans contract it by eating contaminated beef. It’s always fatal. Lack of traceability “places the US at risk if an outbreak occurs in this country,” Borror said. That was last November.
Economy
The Beer War on American Soil
by Wolf Richter • • 14 Comments
I love beer. Particularly craft beer. I’m a sucker for a good IPA, or an amber, or a pale ale. For special occasions, there’s the expensive stuff. If I’m traveling, I try to discover local brews. And the first swig is one of the simplest great pleasures in life. But I’ll stick to the numbers. And they’re morose for the US beer industry. Yet there is an astonishing winner.
Next: Bankruptcy for a whole Generation
by Wolf Richter • • Comments Off on Next: Bankruptcy for a whole Generation
Thousands of students from all over California snarled traffic during their march on the Capitol in Sacramento. Hundreds of them then flooded the Rotunda of the Capitol, a raucous affair. Eventually, the Highway Patrol cleared them out, and 60 were thrown in the hoosegow for trespassing and resisting arrest. Their problem: tuition increases—in a system that has become dysfunctional.
Suddenly, a Sharp Deterioration in the Job Market
by Wolf Richter • • Comments Off on Suddenly, a Sharp Deterioration in the Job Market
Hullabaloo broke out after the Bureau of Labor Statistics reported that a surprisingly robust 243,000 jobs were created in January, and that the unemployment rate was 8.3%. Cynics, academics, BLS heretics, hype mongers, and politicians waged a media battle over these numbers that President Obama serenely trotted out as validation of his policies. Even Rush Limbaugh jumped into the fray. Alas, suddenly, there is a sharp deterioration.
Surveys: CEOs Are Binging on False Hope
by Wolf Richter • • Comments Off on Surveys: CEOs Are Binging on False Hope
We finally have statistical proof that CEOs are … a confusing bunch. PWC’s survey shows that CEOs in 60 countries are exhibiting signs of gloom about the economy but not their own companies. German CEOs, facing the Eurozone debt crisis on a daily basis, aren’t feeling the pain, according to Ifo’s indices. The Empire State Manufacturing Survey points at spiking optimism. And all three show patterns of false hope.
Friday Night Economic Indices
by Wolf Richter • • Comments Off on Friday Night Economic Indices
There still are some economic numbers that aren’t seasonally adjusted or manipulated with fancy statistical footwork by governmental, quasi-governmental, or non-governmental number mongers. And they give us the true picture of the worldwide economy: beer, wine, mood, and San Francisco real estate—with more predictive power than is allowed by law.
Manufacturing Supercars in America
by Wolf Richter • • Comments Off on Manufacturing Supercars in America
Supercar enthusiasts went into a tizzy when Honda announced that it would bring its Acura NSX back to life. Design and manufacturing would be shifted from Japan to Ohio. And much of the production would be exported. It won’t add much volume to Honda’s production, but it will be a technology showcase. And a precursor that the math of manufacturing in America is changing.
The Inexplicable American Consumer Takes A Breath
by Wolf Richter • • Comments Off on The Inexplicable American Consumer Takes A Breath
Consumer optimism has been rising from the morose multi-year low in August and has reached levels not seen since, well, May. It whipped hope into a froth. Rising confidence would pump up consumer spending, which would pump up everything else. But the inexplicable American consumer, the toughest creature out there that no one has been able to subdue yet, had other plans.
When The White House Touts Falling Wages
by Wolf Richter • • Comments Off on When The White House Touts Falling Wages
150 factory workers in China threatened to jump off the roof of an iPhone factory unless they received a raise. Similar stories are accumulating. To make ends meet, desperate workers sometimes take drastic measures. These anecdotes underscore a major trend in China: skyrocketing cost of labor. But in the US, it’s the opposite—and now part of the official White House strategy.
The Systemic Nature of Medicare Fraud
by Wolf Richter • • Comments Off on The Systemic Nature of Medicare Fraud
It’s the kind of Medicare fraud that makes your skin crawl. And it’s part of a vast scheme. After investigative reporters detailed the case, the FBI finally got serious. But no insurance company would have fallen prey to it. Only Medicare cannot defend itself. It doesn’t even know when it’s happening because, inexplicably, it doesn’t analyze the bills. And so an industry has sprung up.