International Commerce

Argentina Joins Assembly Of Nations Growing Illegal Drugs

News Analysis: Argentina which was once a Transit Point for Illegal Drug Shipments, morphed into a Drug Using Population and then again into a Illegal Drug Producing Nation.

Many times when the Profits Earned from the Production and/or Sale of Drugs far outweigh the Penalties when caught, a Plethora of Professionals join the Cabal: Accountants, Attorneys, Bankers, Brokers, Judges, Real Estate Advisers, Tainted Policemen, and the like.

If one considers the phenomenal growth of Poppy Acreage in Afghanistan (guarded by American Troops)  all the way to Designer Drugs allegedly fabricated in Zambia, a Multi-Billion Dollar Industry is alive and well.

Unfortunately, one might think, America, for instance has a President who both admits to having used illegal drugs and now allows American Banks to open accounts with “Legal” Illegal Drug Dealers (an oxymoron). He is “Setting the Stage” people opine. Some say that Cocaine, Hashish, Heroin, Lysergic Acid Diethylamide (LSD) are on the Slate to slowly be approved for sale. Already many professionals in America and elsewhere  are eagerly awaiting the Legitimizing of such use (so they can gain additional revenues).

As part of an alleged American  “Legitimizing Plan”, the U.S. Justice Department merely needs to decry the number of Prisoners in Penitentiaries “that should not be incarcerated but allowed back on the streets of America” (to be Drug Vendors once again)? Politicians who want votes will agree to this Abomination on Society unfortunately.

It appears that the “War Against Drugs” seems Noteworthy, but so does a Hologram.

If Argentina looks to America, it can foresee its Drug Future (to some people an unpleasant thought).

Reality.

Reference: http://www.buenosairesherald.com/article/152177/%E2%80%98a-drugproducing-country’

☆ Havana, Cuba’s Capri Hotel Re-Opens Without Fulgencio Batista And His Mobster Partners

News Analysis: Havana, Cuba’s Architectural Treasure, the Capri Hotel, has re-opened (without its late former Gangster Owners and Occupants and their  late ‘Partner in Crime’ Former President Fulgencio Batista). The newly vitalized Hotel should add to higher levels of Havana Tourism.

As most of the other Nations of the World have functional commerce with Cuba, so too should the United States. The fact that the Castro Brothers evicted American Gangsters, including American Actor George Raft, from their Country should not upset Americans who revile Organized Crime in all its manifestations.

One must ask of Cubans: “How did you think Gangsters would benefit you and your families’ lives with their and a “Whiskey Running” Father of  America’s President being in control of the ‘Puppet Government’ of Fulgencio Batista (the former Army Sergeant who led a Coup and took over the Government)?”

Many Law Abiding and Law Respecting Americans think: “If Politicians and other U.S. Citizens are so upset by ejecting Gangsters from a Country, as the Castro Brothers did, does their frustration with the Castros evidence a Cordiality to Organized Crime and its Treacherous Dealings and Products?” One cannot be complacent with Gangsters for they are a Cancer on Societies everywhere.

The Clever U.S. President, who wants to have a Proper Legacy, could certainly gain one in International Relations as the “Peace President Who Engaged in Rapprochement and Commerce With America’s Neighbor, Cuba.”

Reality.

Reference: http://www.nytimes.com/aponline/2014/02/15/world/americas/ap-cb-cuba-mafia-hotel.html?ref=americas&_r=0

For A Floundering World Economy, “Blame The Weather”

News Analysis: Washington, D.C. Politicians,  U.S. Federal Reserve (Fed)  Minions, Financial Pundits, and Newscasters around the World have a Convenient Economic Scapegoat to blame: The World’s Weather. Either it is “Too Cold” for Shoppers to Shop (disregarding Internet Shopping) as is the American Excuse or “Too Hot” for Shoppers to Shop (the Australian Financial Media’s Excuse).

The fact that the new ‘Fed’ Chairwoman cannot lower Interest Rates only allows her to flood more Dollars into the American Economy (with abandon). The “Unsupported” ‘Bubble Pricing’ currently in the Stock Markets will feel the effects of “Economic Gravity” in the next few months. The “Blame the Weather” Excuse will no longer be viable and a ‘leg’ of the ‘Three-Legged’ Economic Stool will be kicked out from under.

Many Economists are awaiting another drop in the World Economy: The Four Trillion Dollar Debt of the “Fed” cannot be wisely increased (to ‘shore’ things up); Global Exports are not growing; World Unemployment is over 200 Million people; Public Economic Pessimism is high; and, World Communications (subject to U.S. National Security Agency Espionage) has been dampened by revelations about it.

When all of the aforementioned factors come into play, Politicians will in-adeptly “Blame the Weather” rather than create logical solutions to their World.

Reality.

Reference: http://www.reuters.com/article/2014/02/14/us-usa-weather-economy-idUSBREA1C1YD20140214

NSA – When The Cheese Is Removed, The Hungry Mice Travel To Seek More

News Analysis: The U.S. National Security Agency (NSA) had an Apparent Unanticipated Event occur: it being discovered Spying Electronically on Every Human on Earth. The Unanticipated Consequences that resulted from this Pandemic Public Paranoia was Customers’ Cancellation of Contracts with American Electronic Suppliers; those who appeared to help the ‘NSA’ so the Treachery would become a Reality.

Now, the “Haughty Corporate Arrogance” of ‘NSA’  Involved Chief Executive Officers and their Minions is costing their Corporations losses of Sales, i.e., PROFITS. So, they exhibit a Modicum of Penitence for the Spy Transgressions (as they meet with their former Customers). The question Customers must ask regarding such displays of new resolve by the Miscreants: “How does one ever again Trust a Traitor?” A Snake does not gain credibility by hissing “Joy To The World”.

Some Wise People KNOW the only thing Publicly Held Corporations Understand is “Money: Its Acquisition Or Loss”. Customers of Electronic Equipment Manufacturers should Permanently Educate the Economic Traitors by Purchasing Hardware and Software Elsewhere (from LOYAL suppliers; not from Treacherous Plotters). Never give a Snake a Second Chance to Strike.

The way the Spying will stop against the Entire World is if the Economic Impact on the White House and its Handlers makes the Economic Pain Greater than their Electronic Intelligence Gain. They have already usurped the First and Fourth Amendments to the U.S. Constitution. They call themselves “Loyal Americans”?

Reality.

Reference: http://www.shanghaidaily.com/Business/it/IBM-chief-visits-Beijing-to-restore-trust/shdaily.shtml

☆ Increases In World Oil Supplies Is Potential Bad News For Commercial Aircraft Manufacturers’ Business Models

News Analysis: Commercial Aircraft Manufacturers Want Airlines to Think the Price of Aviation Fuel can only go UP. By touting the Alleged Weight Savings in their new Composite Carbon/Carbon Construction, they seek Customers. Often, Incorrect Empty Weight Estimates being given Airlines, make  Fuel Saving Percentages look robust. If the Airlines believe the Aviation Fuel Price Increase Rhetoric, widely dispensed by Air Frame Marketing Departments, then Aircraft Purchases are assured (they think). Looming against this Price Increase Allusion is the Oil Supply Increase Reality happening World-Wide.

The Oil Industry has a “Newer Process” of Shale Oil Retrieval that has been largely developed to its most efficient level in America.  The abundant American resources of Shale Oil In North Dakota, Texas, and elsewhere bode well for large increases in supplies. If one considers the enormous Orinoco Sands Deposit in Venezuela (Estimated: 500 Billion to One Trillion Barrels of Oil), anticipated oil prices would surely plummet steeply.

With increases in Supply come Decreases in Prices (all else being equal). The Arab Gulf States need a $90.00 a Barrel of Oil Price to maintain their economies. It is expected that they will decrease their production to offset their Shale Oil ‘Competitor’. Unfortunately, additional Oil Supplies are being produced in newer Off-Shore Fields such as in Brazilian Waters and will be produced in the future in the Arctic Ocean and perhaps Eastern Mediterranean Sea, et al. This additional production should have the $90.00 a Barrel reduced to perhaps $70.00 to $75.00 a Barrel pricing. Even at this level, Oil is making drilling profitable for many Off-Shore Operations and even more so for Oil Activities on land.

Aviation Fuel Pricing would plummet (many Petroleum Engineers think $1.00 to $1.70 per gallon) as a result of the probable World-Wide Oil Supply Increases. Additionally, Aviation Bio-Fuels will help contribute to price reductions for the Airlines. The Conundrum faced by Air Frames, is: “What Concerns can they Create to make Airlines think they ‘Have To Have’ new Aircraft?”

Airlines will find a diminution in Aviation Fuel prices (due to the aforementioned Oil Supply Increases coming On-Line) which will make a Mockery of the Hundred + Millions of Dollars now charged per Plane by the Air Frames; this  so the Airlines can “Save Pennies Per Gallon of Fuel” with their Composite Aircraft?

Reality.

Reference: http://gulfnews.com/business/oil-gas/us-oil-exports-likely-to-drag-down-prices-1.1286567

Qatar Airlines: Pleased With Airbus, Far Less So With Another

News Analysis: Airlines need their New Aircraft on or before their Contracted Delivery Dates (as it appears Qatar will be joyously receiving with its Airbus A350’s). They are tiring of hearing about Aircraft Delays from other Air Frames. It seems that some Air Frames “Promise the Moon” (especially in terms of estimated low fuel burn and projected on-time reliability).

The Benefits of the Technologies the Air Frames now promote, such as All Composite Construction, say next to NOTHING about Structural De-lamination due to Stress (or Cosmic and Solar Radiation at Cruise Elevations), Detonation like a ‘Shattered Egg’ (when the fuselage hits the airport runway as when landing-gear failure arises), nor Flammability of the Carbon/Carbon Composite Construction (from even little Lithium-Ion Batteries).

As the Administrations of Airlines commence to “Wise-Up” to the Games played by SOME Airframes, they will cease being “Freiers” who are easily influenced by the Chicanery offered by Air Frame Marketeers.

Any time a new Aircraft is YEARS LATE in its Delivery to Customers means that the Scope of Work Was Not Properly Estimated and Assets (Human and Financial) were not properly allocated (as also might be not properly estimated is the Aircraft’s Performance, Fuel Burn, and Dispatch Reliability)

Reality.

Reference: http://english.alarabiya.net/en/business/2014/02/12/Qatar-Airways-expects-to-receive-first-A350s-early.html

Air India Disenchanted With Told ‘Tales’ Of New Aircraft Fuel Burn Efficiencies, Etc.

News Analysis: When A Commercial Aircraft Manufacturer “Talks The Talk, It Must Walk The Walk”;  especially with alleged Misrepresentations regarding Estimated Fuel Burn Efficiencies and projected Dispatch Reliability.

Air India had apparently succumbed to the “Lighter Is Better” (LIB) (without defining ‘Lighter’) ‘Marketing Hype’ some say, then purchased significant numbers of the Composite Aircraft; presently, to its Chagrin, many people suggest.

‘LIB’ did have an immediate positive impact on the price of the Aircraft Manufacturer’s Stock (to the delight of some of the Top Retiring Managers who helped think up the ‘scheme’). The Mass Media ravished praise (on that which they new little about) further raising the price of the Stock.

The Engineering Model for this Aircraft apparently made both “Drastic” Engineering Assumptions regarding its “Complete” Composite Construction (from different vendors), Disregard of Flammability Potential, Its Heavy Reliance on Electrical Power (forgoing Hydraulic and Pneumatic Systems), and its Projected Weight vs. its Actual Empty Weight. As an amalgam of all these changes in Aircraft Construction, Logarithmic rather than Arithmetic Changes ensued. This reality to the cost of Billions of Dollars for the Air Frame, Years Late Deliveries, Poor Line Quality in Assembly, and poorer Fuel Efficiency than Advertised many people maintain.

Some Aircraft Engineers suggest that the Shorter Life Span built into the design of this Aircraft (by virtue of its Composite rather than Metal Construction) will further tarnish Air India’s View of its purchases.

People suggest that perhaps a Meditating Shiva can provide some direction in this Continuing Conundrum which Air India, acting honorably, did not bargain for.

Reference: http://www.bloomberg.com/news/2014-02-11/boeing-says-air-india-unhappy-with-787-dreamliner-s-reliability.html

Israel Proposes Compressed Natural Gas (CNG) For Its Neighbors: Cyprus, Greece, and Turkey

News Analysis:  A Wise Business Strategy by Israeli Commercial Interests is the Vessel Shipping of  Compressed Natural Gas ‘CNG’ to those countries rather than by Undersea Pipelines.  Natural Gas Reserves in Israeli Waters are substantial and  Israel can afford to sell to those Countries ‘CNG’ at a heavily discounted price; this from Current Liquefied Natural Gas being sold today. The Negation of Pipelines in the Delivery Process bodes well for large projected costs savings for the corporations involved.

Due to the fact that Territorial Issues for Undersea Pipelines are not an element in this Business Model, much Time can be saved in the Delivery Process by using  ‘CNG’ Ships.

Innovative Thinking can go a long way towards producing Substantial Profits for those who are in Business.

The World Belongs to the Aggressive.

Reality.

Reference: http://www.globes.co.il/en/article-tamar-partners-plan-15b-regional-gas-sales-1000916420

☆ Priceless 2,000 Year Old Bronze Greek God Apollo Statue Is Discovered In Gaza

News Analysis: A questionable location within Gaza adds excitement to the World of Archaeology regarding a 2,000 Year old Bronze Greek God Apollo Statue found there. The Priceless Piece of Art was removed from the Fisherman who found it and taken by Gaza Authorities.

Investors may want to consider that since the Statue was found in Gaza, what other Ancient Art Works are there? Perhaps funding arrangements made with the Gaza Authorities would allow for research towards locating other Valuable Treasures. The Profit Potential could be outstanding.

Art Treasures buried in the Sand benefit no one.

Reality.

Reference: http://www.reuters.com/article/2014/02/10/us-palestinian-apollo-gaza-idUSBREA190NQ20140210

Ship Owner “Zim” Needed “Forward Looking Business Radar” For New-Building Purchases

News Analysis: Vaunted Zim Integrated Shipping Services (Zim) in 2007 purchased FOUR New Ships for construction by Korean Shipyards. As the World Economic Collapse occurred JUST A FEW MONTHS LATER, it appears Management did Not See the Approaching “Economic Iceberg”. ‘Zim’ posted deposits for the four Vessels of $68+/- Million Dollars with the Ship Yards (Monies the Korean Ship Yards keep now).

The obligation to ‘Zim’ would have been $1.5 +/- Billion dollars if the Ship Keels had been laid (Vessels, Associated Costs, and Interest Charges). Fortunately, for ‘Zim’,  postponement of Keel Laying worked to its advantage.

The Ship Yards now charge $100 Million Dollars per Vessel for the $170 Million Dollars they had charged ‘Zim’ in 2007  (the Price Effects of “Supply and Demand” then and now).

“Zim” still has a “Sisyphus” set of Financial Debt Hurdles to overcome.

Over-Confident Ship-Line Owners can learn that “While Money is Important for Success in Shipping; Prescience is Better”.

Reality.

Reference: http://www.globes.co.il/en/article-zim-loses-68m-deposit-for-cancelled-ship-purchases-1000915292