Robert Oak's blog

14.9% of America is on Food Stamps

Think things are getting better? Think again. Food stamp usage is actually up from the latest data. As of June 2012, 46,670,373 people are on food stamps in the United States. That's 14.9% or less than 1 in 7 people are on food assistance. The United States population in June 2012 was 314,067,000 and this figure includes everyone, including people overseas. Food stamp usage increased 3.3% from June 2011 and 0.4% from May 2012.

food stamps usage

Corn Ripples!

Every once in a while we see a piece of data which makes the hair on our heads stand on end. Such is the Census Foreign Trade graph of the month. Below are corn exports and their percent change a year from June 2012.

corn exports 6/12

The more orange a state is, the more their exports declined. Texas corn exports declined a whopping -272.6%, Kansas dropped -160.9%. Arkansas is a real disaster, with a -445.2% drop in corn exports as of June 2012. What's worse is the June data only gives a 10% national drop in corn exports from a year ago. July gave much worse figures.

By July 2012, the United States corn export decline was the lowest in 19 years and had dropped 40% from a year ago according to the latest USDA statistics. The U.S. is the largest exporter of corn and corn is the largest export of course-grains. The below charts are from the USDA grain report.

Trade With China Has Cost the U.S. 2.7 Million Jobs

So says the Economic Policy Institute in an updated study. Over the last decade, from 2001 to 2011, the United States has lost a whopping 2.7 million jobs to China alone and this estimate is conservative. The China PNTR trade agreement was signed by President Clinton on October 10th, 2000 and China entered the WTO in 2001.

The more than 2.7 million jobs lost or displaced in all sectors include 662,100 jobs from 2008 to 2011 alone—even though imports from China and the rest of the world plunged in 2009.

Below is EPI's map showing China unfair trade's job losses as a percentage of total state employment. These are not just a few minor localized pockets of jobs. We're talking significant payroll percentages per state being lost just due to China trade.

china job loss epi

Is The FDIC Doing Death By 1000 Cuts Against TBTF Banks?

mersJust when you think Justice will never be done, another civil lawsuit is filed. The FDIC filed three lawsuits against Goldman Sachs, JP Morgan Chase and BoA among others for peddling bad mortgage backed securities stuffed with toxic mortgages to their sucker, Guaranty Bank of Austin, Texas. Guaranty Bank later failed in 2009. Housing Wire:

This week, the regulator filed multiple lawsuits in Travis County (Austin), suggesting Guaranty suffered major losses from toxic RMBS loans sold and packaged by mega banks and other financial institutions.

Defendants named in the multibillion-dollar lawsuits include Countrywide, JPMorgan Chase ($38.04 0%), Ally Financial, Deutsche Bank Securities ($34.07 0%), Bank of America ($8.19 0%) and Goldman Sachs ($105.32 0%) among others.

FDIC, on behalf of Guaranty, claims the banks misrepresented loan-to-value ratios, underwriting criteria and appraisal amounts when selling, packaging and underwriting home loans that became collateral for mortgage securities sold to Guaranty.

What Does It Take For Justice?

workplace death threatImagine returning to your office to see a note taped to your chair which reads:

Just leave, you are not wanted here, hope your journey brings you death.

Imagine coming into work and turning on your computer. The screen lights up with an open Word document, which says:

Burn in your hell and death to you and the family. Infosys rules the world.

That has been the life of Jay Palmer and today an Alabama judge ruled the above threats are not unreasonable in the workplace. Literally the Judge ruled that death threats are not out of bounds in Alabama employment law. The judge claims the threats were not so severe that no reasonable person could be expected to endure it.. So, under employment law is murder now perfectly legal? What does it take here to get justice for U.S. workers?

ComputerWorld has been covering the case and sums up what happened.

In his lawsuit, Palmer claimed he was harassed at work, sidelined and even received death threats for refusing to participate in an alleged Infosys scheme to use workers on business visitor, or B-1 visas, for tasks that required an H-1B work visa.

Sunday Morning Comics - Dysfunctional Economy Sing-Along Edition

Brought to you by SuperPacs - Making ridiculous political ads a multi-billion dollar industry.
Cup O' Joe

 

Good Morning! Rise and Shine! Get that Cup O' Joe...
break out the O.J....hang out with the pooch...time to check out the economic funnies.

 

Great America Foreclosure Song

 

CEO Pay is a Tax on You

corppolitcs A most interesting study came out of the left leaning Institute for Policy Studies. They found 26 corporations paid more to their CEO than they actually paid in taxes. IPS compared executive compensation to how much tax write offs that pay package gives and conclude excessive compensation is a tax on you. Corporations are raking it in and not paying much to Uncle Sam. CEOs aren't being rewarded for actual performance, the excessive pay is more reflective on our loophole ridden corporate tax code. IPS estimates CEO pay at 26 firms is equivalent to a $46 dollar tax on every person in America, or $14.4 billion per year.

  • Of last year’s 100 highest-paid U.S. corporate chief executives, 26 took home more in CEO pay than their companies paid in federal income taxes, up from the 25 we noted in last year’s analysis. Seven firms made the list in both 2011 and 2010.
  • Once again, low corporate tax bills, or large refunds, cannot be explained by low profits. On average, the 26 firms had more than $1 billion in U.S. pre-tax income but still received net tax benefits that averaged $163 million.
  • The CEOs of these 26 firms received $20.4 million in average total compensation last year. That's a 23 percent increase over the average for last year’s list of 2010's tax dodging executives.
  • Two of the firms that paid their CEOs more than Uncle Sam, Citigroup and AIG, owe their very continued existence to taxpayer bailouts.
  • Combined, the 26 firms have 537 subsidiaries in tax-haven countries such as the Cayman Islands, Bermuda, and Gibraltar.

Pages