Pharmacies across the country will be closed next Monday and Tuesday as sector professionals launch new protest action, this time against a legislative act requiring them to pay a rebate to insurance funds which will cost pharmacists between 5,000 and 50,000 euros.

Pharmacists also decided to stop providing medicine on credit to customers insured with social security funds. Pharmacists have taken similar action in recent months over the failure by social security funds to settle unpaid drugs bill.

Via: http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/11/2012_471066

Ford has announced plans to shut an assembly plant in Genk, Belgium, jeopardizing some 5,000 jobs, and union representatives are currently meeting with company management in Cologne.

Of course, mass media, telling you about recovery that will follow, are telling the truth, aren't they? Closure of factories, small firms and constant cuts are clear signs that corporations are getting ready to huge rise in demand.

With cash running perilously low, two legally required payments for future postal retirees' health benefits - $5.5 billion due Wednesday, and another $5.6 billion due in September - will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.

Via: http://apnews.myway.com/article/20120730/DA0BDV2O2.html

Good update in our series about USPS :-)

Via: http://www.zerohedge.com/news/2012-10-24/chart-day-55-and-under-no-job-you

There has always been some gap between rich and poor in this country, but in the last few decades what it means to be rich has changed dramatically. Alarmingly, the greatest income gap is not between the 1 percent and the 99 percent, but within the wealthiest 1 percent of our nation--as the merely wealthy are left behind by the rapidly expanding fortunes of the new global super-rich. Forget the 1 percent; Plutocrats proves that it is the wealthiest 0.1 percent who are outpacing the rest of us at break-neck speed.

What’s changed is more than numbers. Today, most colossal fortunes are new, not inherited--amassed by perceptive businessmen who see themselves as deserving victors in a cut-throat international competition. As a transglobal class of successful professionals, today’s self-made oligarchs often feel they have more in common with one another than with their countrymen back home. Bringing together the economics and psychology of these new super-rich, Plutocrats puts us inside a league very much of its own, with its own rules.

http://www.amazon.com/Plutocrats-Rise-Global-Super-Rich-Everyone/dp/1594204098

Toshiba

Price increases:

• Eggs: 73%
• Coffee: 90%
• Peanut Butter: 40%
• Milk: 26%
• A Loaf Of White Bread: 39%
• Spaghetti And Macaroni: 44%
• Orange Juice: 46%
• Red Delicious Apples: 43%
• Beer: 25%
• Wine: 60%
• Electricity: 42%
• Margarine: 143%
• Tomatoes: 22%
• Turkey: 56%
• Ground Beef: 61%
• Chocolate Chip Cookies: 39%
• Gasoline: 158%

Via: http://www.theblaze.com/stories/not-just-gas-check-out-the-drastic-price-increases-on-these-21-everyday-items/

After this go and check previous posts about average houshold income at same period :-)

Looking at the charts, you start to think that big major war with China can be quite good option, at least not the worst one.

The jobless rate rose from 24.8 percent a month earlier, according to the country’s statistics service ELSTAT. Nearly two million people in Greece are without work, including those whose year-long benefits have run out.

Austerity measures imposed in the last 2-1/2 years on the orders of international lenders have largely backfired and worsened the plight of many Greeks, closed 68,000 businesses and is shrinking the economy by 7 percents.

Coca Cola Hellenic, the world΄s second-largest bottler of Coca-Cola Co. soft drinks and Greece΄s biggest firm by market value, said on Thursday it would switch its main bourse listing to London, where it hopes to tap more liquidity from investors.

Rise in Value Added Tax to 23 percent that included restaurants in a bid to raise revenues has backfired as a report showed it has led to the closing of 4,000 establishments and the loss of 30,000 jobs.

Kostis Mousouroulis told some 70 representatives of the Greek shipping industry that envoys of the country’s international lenders wanted 23 islands with fewer than 150 inhabitants to be evacuated permanently to reduce the cost of sending ships there. The government, has, however produce a list of small, uninhabited islands it wants to lease or sell to raise revenues.

Via: http://www.ons.gov.uk/ons/rel/iop/index-of-production/august-2012/stb-iop-aug-2012.html
http://www.ons.gov.uk/ons/rel/uktrade/uk-trade/august-2012/sb-uk-trade--august-2012.html

Sales decreased 5.3 percent to 5,383 from July, when they dropped 5.6 percent, the Canberra-based Housing Industry Association said, citing a survey of the nation’s largest builders. Detached house sales fell 5.8 percent, while apartments slipped 2.5 percent, it showed.

The number of seasonally adjusted new detached house sales in August fell by 7 percent in New South Wales, 8.6 percent in Victoria, 2.9 percent in Queensland, 2.6 percent in South Australia and 9.4 percent in Western Australia.

Via: http://www.bloomberg.com/news/2012-10-03/australia-new-home-sales-fell-to-record-low-in-august-hia-says.html

Ye gods!

We are all sure that competitors will go to new records next month, so fight is far from other.

Via: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_28/09/2012_463676

Nonperforming loans have reached a record level of 57 billion euros, as they go hand in hand with soaring unemployment that has already hit 25 percent and could grow further if recession forecasts for the next couple of years prove true.

Via: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_28/09/2012_463675

Greece will extend an emergency loan to its cash-strapped electricity market operator LAGHE and impose a temporary tax on renewable energy producers to prevent an energy crisis, a senior Greek official said on Friday.

Via: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_28/09/2012_463606

Researchers modeled the relationship between food prices and social unrest to reach a simple conclusion– whenever the UN Food and Agricultural Organization (FAO)’s global food price index climbs above 210, conditions ripen for social unrest.

Today, the FAO’s food index is at 213… and rising. Netherlands-based Rabobank recently published its own analysis, forecasting further rises in food prices well into the 3rd quarter of 2013.

Via: http://www.sovereignman.com/expat/two-no-brainer-ways-to-play-rising-food-prices-8900/

Greece's deep recession has forced almost a third of businesses in the capital's commercial district to close down as shrinking incomes and frequent strikes drive Athenians away.

Tens of thousands of small businesses, which make up a big chunk of the struggling economy, have shut since Greece secured a 110-billion-euro bailout package in 2010 in exchange for promises of painful austerity measures.

On the capital's cobbled pedestrian shopping streets, long lines of shops are boarded shut while others have «Everything must go» signs plastered across their windows. Some arcades, once bustling with activity, are empty and enclosed by derelict buildings.

In the city's «commercial triangle», where generations of merchants had run successful businesses a stone's throw from the central Syntagma Square, an August census by retail lobby group ESEE found 31 percent of shops had closed.

Via: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_25/09/2012_462783

Spain

Via: http://www.agenciatributaria.es/static_files/AEAT/Estudios/Estadisticas/Informes_Estadisticos/Informes_mensuales_recaudacion_tributaria/2012/MonthlyReport_2012_08_August.pdf

Transportation equipment, down following four consecutive monthly increases, had the largest decrease, $27.8 billion or 34.9 percent to $51.9 billion.

Shipments of manufactured durable goods in August, down two of the last three months, decreased $6.8 billion or 3.0 percent to $222.5 billion. This was also the largest decrease since January 2009 and followed a 1.9 percent July increase. Transportation equipment, down two of the last three months, had the largest decrease, $5.5 billion or 7.9 percent to $63.9 billion. This followed a 7.9 percent July increase.

Via: http://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf

The United States has frequently used Article XXI Security Exceptions of the WTO (taken from the earlier General Agreement on Tariffs and Trade) to impose economic sanctions on other countries. The security exception clause says a country cannot be stopped from taking any action it considers necessary to protect its security interests. That means a country can impose sanctions on enterprises, financial institutions, organizations and even other countries' central and local governments. Taking a cue from the US' practice, China can use the security exception clause to reduce the export of some important materials to Japan.

China didn't announce any sanctions against the Philippines in April, but it froze banana imports from that country in response to Manila's aggressive attitude in the Huangyan Island dispute. Though the economic countermeasure forced the Philippines on the back foot, it also harmed the interests of some Chinese enterprises.

So it is important for China to devise a sanction plan against Japan that would cause minimum loss to Chinese enterprises.

The US' capability to impose economic sanctions on other countries is based on its economic strength, huge share in global trade, financial institutions and global intelligence network. China, too, has the capability to impose sanctions on other countries now that it is the second largest economy, has the largest foreign reserves, and is the largest exporter and second largest importer.

An analysis of Sino-Japanese economic interdependence shows that Japan's economy will suffer severely if China were to impose sanctions on it. China's loss would be relatively less.

Chinese customs data show the country's exports to Japan in the first seven months of this year was $86.3 billion, accounting for 7.6 percent of its total exports. During the same period, China imported $104.59 billion worth of goods from Japan, or 10.1 percent of its total imports.

According to Japanese customs statistics, Japan exported $73.72 billion worth of goods to China in the first six months of this year, which was 18 percent of its total exports. And Japan's imports from China added up to $91.34 billion, or 20.5 percent of its total imports. This suggests Japan is more reliant on China economically.

Moreover, by the end of June 2012, Japan's investment in China was $83.97 billion. In contrast, China's investment in Japan was only $1.03 billion. And 55-60 percent of China's exports to Japan are an exchange between Japanese enterprises operating in China and Japan.

China basically exports low value-added products to Japan, which yield low profits in the manufacturing chain, while Japanese companies earn huge profits from their exports to China. That means China is in lot better position to afford a loss in exports.

Sino-Japanese trade ties played a crucial role in helping Japan avoid another recession in 2003, and have contributed 35 to 80 percent of the impetus for Japan's economic growth since then. Besides, the global financial crisis increased Japan's reliance on China for its economic well-being.

So it's clear that China can deal a heavy blow to the Japanese economy without hurting itself too much by resorting to sanctions.

Apart from its reliance on China, Japan has been suffering from other economic ills. First, Japan's massive government debt is increasing substantially. By the end of last year, Japan's sovereign debt had crossed 1,000 trillion yen ($12.81 trillion). To be precise, it was 1,024 trillion yen, or 2.2 times the value of Japan's national economy.

Second, the effectiveness of a tax increase, which Japanese Prime Minister Yoshihiko Noda has been pressing for to arrest the country's financial slide, may come to nothing. Besides, if the world economy sees a double dip, Japan's economy will slip into another recession and the effects of a tax increase will come to nothing.

Third, Japan's fiscal deterioration is likely to continue. There are enough indications that Japan's economic growth in 2013 will slow down or slip into another recession. The irreversible trend of long-term economic downturn, combined with Japan's aging population, will eat into the country's household savings, and the declining purchasing power of the Japanese will increase Japan's fiscal debt.

Fourth, according to the Japanese Ministry of Finance and the Bank of Japan, China held short-term and long-term Japanese government bonds worth 18 trillion yen ($230 billion) by the end of 2011, an increase of 71 percent year-on-year. China became the largest creditor of Japan in 2010. Given these facts, Japan should reconsider its financial health. In other words, with Japan's national debt at stake, the proverbial straw that can save the Japanese economy seems to be in the hands of China. And China can use it to find ways to impose sanctions on Japan in the most effective manner.

But instead of blindly boycotting Japanese goods, China should work out a comprehensive plan which should include imposition of sanctions and taking precautionary measures against any Japanese retaliation. China should also have several rounds of policies ready to undermine the Japanese economy at the least cost of Chinese enterprises.

Furthermore, in case Chinese enterprises suffer because of the sanctions, the Chinese government should be prepared to compensate them. And once China imposes sanctions on Japan, the government should ensure that all enterprises in the country, domestic and foreign, obey the rules.

The author is deputy director of the department of Chinese trade studies at the Chinese Academy of International Trade and Economic Cooperation, affiliated to the Ministry of Commerce.

Via: http://www.chinadaily.com.cn/opinion/2012-09/17/content_15761435.htm

Paper is owned by Chinese Goverment.

This is going to help the wealthy get even wealthier, and it is going to make the "wealth gap" between the rich and the poor even larger in America.

QE3 is also probably going to cause commodity prices to rise just like QE1 and QE2 did. That means that you will be paying more for gasoline, food and other basic necessities.

So there may not be more jobs, but at least you will get the privilege of paying more for things.

The inflation that QE3 will cause will be particularly cruel for those on fixed incomes such as retirees. None of the extra money from QE3 is going to go into their pockets, but they will have to pay more to heat their homes and fill up their shopping carts.

And the "exceptionally low interest rate" policy of the Federal Reserve is absolutely devastating for those that have saved for retirement and that are relying on interest income for their living expenses.

In short, quantitative easing is very good for the wealthy and it is very bad for the average man and woman on the street.

Via: http://theeconomiccollapseblog.com/archives/qe3-helicopter-ben-bernanke-makes-it-rain-money

Small comments from me:

1. US had no other option (using current approach).
2. As we predicted, main target here is the debt rates. If debt rates go out of control, it'll be the end.
3. Countries push out of US debt market, so, leading banks need more money to buy more debt paper.
4. All this will add up with worst food prices hike you know in upcoming months.
5. Consequences are clear - normal people have less money remaining after paying for basic everyday stuff. Hence less sales and service sector stagnation, more jobs lost, etc, etc.

Via: http://www.acea.be/index.php/news/news_detail/passenger_car_registrations_-7.1_over_eight_months_-8.9_in_august

According to media reports, Canon has also suspended operations at three of its Chinese factories.

Via: http://www.bbc.co.uk/news/business-19620114

­Police used extensive force to push back the workers, who were trying to enter the Ministry of Economic Development in Rome, where government officials were meeting with labor unions and executives from the firm Alcoa Inc.- who own the plant. Talks centred around trying to save jobs, but meanwhile an angry mob set off large firecrackers and threw missiles at police lines to make their message heard.

Profit-losing US-based Alcoa, plans to shut down the factory by November unless a buyer is found. The only interested candidate, German hedge fund Aurelius, pulled out of negotiations with the Italian government in August

Via: http://rt.com/news/italy-clashes-alcoa-workers-829/

As usual. Energy prices rised, aluminium prices not so (and aluminium price mostly consist from energy part).

The cuts, exceeding the 27,000 estimated earlier, will take place through fiscal year 2014, Hewlett-Packard said today in a regulatory filing. The company said it will book reorganization expenses of about $3.7 billion during the period.

Hewlett-Packard is grappling with slower demand for printers, services and data-center equipment. The company said in May that it will fire workers and make early retirement offers to generate annual savings of as much as $3.5 billion starting in 2014. Many cuts will take place in the ailing enterprise services group, which manages data centers and provides information-technology consulting.

Via: http://www.bloomberg.com/news/2012-09-10/hp-says-job-cuts-under-reorganization-plan-will-reach-29-000.html

In EU it is all similar things.

Right now elites make conversion. They convert private debt to public debt.

The overhaul, which may save taxpayers as much as $55 billion over 30 years, would require new employees to pay half the cost of their benefits and work longer before they can retire. It also reduces formulas for calculating benefits and caps pension payments.

Retirement checks for new workers would be based on wages capped at about $110,000 a year, or $132,000 for those not covered by the federal Social Security system, adjusted for inflation. For most new civil servants who aren’t police officers or firefighters, the minimum retirement age for full benefits would increase to 67 from 55.

Via: http://www.bloomberg.com/news/2012-08-31/california-lawmakers-send-public-pension-cutback-to-brown.html

Via: http://www.ritholtz.com/blog/2012/09/the-middle-class/

• Real median annual income for family households declined by 4.7 percent, from $66,365 to $63,276. Real median annual income for nonfamily households declined by 7.5 percent, from $33,002 to $30,512. Within this group, the percentage decline for men living alone (9.4 percent) was significantly larger than for women living alone (4.5 percent).

• Real median annual household income for householders between 25 and 34 years old declined by 8.9 percent, from $54,520 to $49,659. Among households with a householder between 55 and 64 years old, real median annual household income declined by 9.7 percent, from $61,716 to $55,748. In contrast, real median annual household income for householders 65 to 74 years old showed an increase of 6.5 percent, from $39,548 to $42,113.

• Real median annual income of households in which the householder was working (or had a job but was not at work during the survey reference week) declined by 4.7 percent, from $69,758 to $66,459. For households in which the householder was looking for work or on layoff, real median annual household income declined by 22.6 percent, from $40,749 to $31,558. This steep decline in income likely reflects a larger proportion of long-term unemployed persons in the later time period.

• Real median annual income for households with a White householder (not Hispanic) declined by 5.2 percent, from $59,324 to $56,255. The real median annual income for households with a Black householder (not Hispanic) declined by 11.1 percent, from $36,567 to $32,498. Households with an Hispanic householder experienced a decline in their real median annual household income of 4.1 percent, from $41,967 to $40,265.

• Among households in which the householder has some college but no degree, real median annual income declined by 9.3 percent, from $50,948 to $46,200. For households whose householder has an Associate degree, real median annual income declined by 8.6 percent, from $60,602 to $55,374.

• Households in which the householder is self-employed had a decline in real median annual income of 9.4 percent, from $73,695 to $66,752. Households in which the householder is a private-sector worker had a decline in real median annual income of 4.5 percent, from $66,793 to $63,800. Households in which the householder is a governmentsector wage worker had a decline in their real median annual income of 3.5 percent, from $80,828 to $77,998.

• Real median annual income of households living in the West region declined by 8.5 percent, from $59,065 to $54,071. In contrast, for households living in the Midwest region, the measured decline of 1.1 percent, from $51,447 to $50,868, was not statistically significant.

• The median annual income of households in blue states was $56,441 in June 2012, down by 5.2 percent since June 2009. The median annual income of households in red states was much lower at $46,215 in June 2012, down by 5.0 percent since June 2009. The median income of households in purple (swing/battleground) states was intermediate between the other two categories at $51,430 in June 2012, down by 5.7 percent since June 2009.

Via: http://www.sentierresearch.com/pressreleases/Sentier_PressRelease_PostRecessionaryHouseholdIncomeChange_June09toJune12_08_23_12.pdf

http://www.amazon.com/Sony-Samsung-Inside-Electronics-Supremacy/dp/0470823712#_

Via: http://www.oftwominds.com/blogaug12/fantasy-debt8-12.html

The first Indian ship to carry oil from Iran with Indian insurance is scheduled to load up in Iran on Wednesday, a shipping company executive said. This is a breakthrough for the Indian government, which has scrambled to maintain vital Iranian oil imports after European sanctions blocked third-party insurance in July.

South Korea stopped importing Iranian crude in July, when the insurance sanctions hit. Two refiners told The Associated Press on Monday that they were in talks with the South Korean and Iranian governments about using Iranian tankers under Iranian insurance cover to import oil.

“Iran first made the offer,” said Eom Ik-hoon, spokesman for South Korea’s largest refiner, SK Energy, which imported 10 percent of its crude from Iran before the sanctions hit. “We are discussing details with the South Korean government, but we do not know when imports will be resumed.”

Hyundai Oil Bank Co.’s spokesman Koh In-soo said the company was also reviewing using Iranian ships and insurance, but denied earlier news reports that the crude imports may be resumed as early as September.

Via: http://www.insurancejournal.com/news/international/2012/08/15/259365.htm

So, main consequence - damage of Europe economics :-)